Quantity flexibility contracts counter double marginalization by giving the retailer the
ability to modify the order based on improved forecasts closer to the point of sale.
Most supply chain design innovations that lower transportation costs paradoxically tend
to increase fuel consumption and emissions.
As forward buying becomes a smaller fraction of the demand increase from a
promotion, it is less profitable to promote during the peak period.
The cost of a capacity shortage is the increase in productivity that results from having to
go to a backup source.
The cost of undersellingis a key factor that influences the optimal level of product
availability.
Behavioral obstacles are often related to the way the supply chain is structured and
reduce the bullwhip effect.
The objective of customer order entry is to maintain a record of product receipt and
complete payment.
Quasi-market prices for transportation infrastructure result in higher prices at peak
locations and times and lower prices otherwise.
Product fill rate is the fraction of product demand that is satisfied from product in
inventory.
In theory, the concept of differential pricing decreases total cost for a firm.
The use of a part-time workforce to increase the capacity flexibility by enabling the
firm to have more people at work during peak periods is designing product flexibility
into the production processes.
Linear programming finds the solution that creates the highest profit while satisfying
the constraints that a company faces.
Successful collaborative planning, forecasting and replenishment must be built on a
foundation of
A) a common logistics carrier and data synchronization.
B) a single forecasting approach and a common logistics carrier.
C) data synchronization and established standards for exchanging information.
D) established standards for exchanging information and a single forecasting approach.
Activities involved in the Supplier Relationship Management (SRM) macro process
include
A) planning of internal production and storage.
B) order fulfillment.
C) supplier evaluation and selection.
D) order management.
Pricing can be used to
A) change available supply.
B) reduce supply chain costs.
C) influence demand if customers are price sensitive.
D) all of the above
The value chain in a company begins with
A) the customer.
B) marketing and sales.
C) new product development.
D) operations.
One of the best ways to solve coordination problems is
A) through teams comprised of different members of the supply chain.
B) through investments in cutting edge information technology.
C) by institution penalties for supply chain members that don’t cooperate.
D) by implementing a supply chain resource planning module.
Which of the following is an advantage of manufacturer storage with direct shipping?
A) Transportation costs are low because the average outbound distance to the end
consumer is small and package carriers are used to shipping the product.
B) Supply chains save on the fixed cost of facilities, because the need for other
warehousing space in the supply chain has been eliminated.
C) Response times tend to be small because the order has to be transmitted from the
retailer to the manufacturer.
D) Order tracking is easy to implement because of the complete integration of
information systems at both the retailer and the manufacturer.
The implications of culture should not be glossed over because
A) tariffs and tax incentives should be carefully considered.
B) facilities last a long time and have an enduring impact on a firm’s performance.
C) it is astounding how often tax incentives drive the choice of location.
D) the location of a facility has a significant impact on the extent and form of
communication that develops in the supply chain network.
Which approach to capacity management would schedule the workforce so that the
available capacity better matches demand?
A) Time flexibility from workforce
B) Use of seasonal workforce
C) Use of subcontracting
D) Use of dual facilities-dedicated and flexible
________ variability is change in demand that can be forecasted.
A) Capacity
B) Predictable
C) Inventory
D) Backlog
________ measures the average time between when an order is placed and the product
arrives.
A) Supplier reliability
B) Supply lead time
C) Fraction of on-time deliveries
D) Supply quality
For the same safety inventory, an increase in lot size
A) decreases the fill rate but not the cycle service level.
B) increases the fill rate but not the cycle service level.
C) decreases both the fill rate and the cycle service level.
D) increases both the fill rate and the cycle service level.
Decisions concerning the role of each facility are significant because
A) they determine the amount of flexibility the supply chain has in demanding change.
B) they determine the amount of flexibility the supply chain has in changing the way it
meets demand.
C) they determine the amount of capacity the supply chain has in changing the way it
meets demand.
D) they determine the amount of inventory the supply chain has in demanding change.