In most instances of differential pricing, demand from the segment paying the lower
price arises earlier in time than demand from the segment paying the higher price.
Traditionally, much of aggregate planning is focused within an enterprise and may not
always be seen as a part of supply chain management.
Pricing decisions based only on revenue considerations often result in an increase in
overall profitability.
Customers always want the highest level of performance along all the dimensions
response time, product variety and returnability.
A managerial lever to increase profitability is to decrease the salvage value of each unit.
What rate of return results in a present value of $23 for $25 received one year from
now?
A) 7.8%
B) 8.1%
C) 8.4%
D) 8.7%
The expected shortage per replenishment cycle(ESC) is
A) the units of demand that are not satisfied from inventory in stock in a given
replenishment cycle.
B) the units of demand that are satisfied from inventory in stock in a given
replenishment cycle.
C) the average units of demand that are not satisfied from inventory in stock per
replenishment cycle.
D) the average units of demand that are satisfied from inventory in stock per
replenishment cycle.
Temporal aggregation
A) is the process of combining orders across time.
B) increases a firm’s responsiveness.
C) decreases transportation costs because of economies of scale.
D) all of the above
A contract that decreases overall costs but leads to higher lot sizes and thus higher
levels of inventory in the supply chain is a
A) buyback or returns contract.
B) revenue-sharing contract.
C) quantity flexibility contract.
D) quantity discount contract.
W.W. Grainger and McMaster Carr stock products from more than a thousand
manufacturers each to sell to hundreds of thousands of customers and are sterling
examples of
A) transportation aggregation by transportation intermediaries.
B) inventory aggregation.
C) warehouse aggregation.
D) transportation aggregation by storage intermediaries.
Zara’s supply chain strategy
A) results in supply more closely matching customer demand.
B) results in longer lead times for store order fulfillment, primarily due to shipping
time.
C) of purely online sales reduces the costs that they would incur with a brick and mortar
store system.
D) of high volume but low cost apparel requires production well in advance of the
actual selling season for each garment type.
Unilever, the Dutch-British consumer goods giant, has invested significant effort to help
emerging economies such as Brazil and India wrestle with poverty, water scarcity and
climate change. The company sees ________ of its sales and the majority of its growth
coming from emerging economies.
A) almost 25%
B) almost 50%
C) almost 60%
D) almost 75%
A company would decide whether to outsource or perform a supply chain function
in-house during the
A) planning phase.
B) design phase.
C) tactical phase.
D) operation phase.
Supply chain macro processes include which of the following?
A) Internal Relationship Management (IRM)
B) External Relationship Management (ERM)
C) Supplier Relationship Management (SRM)
D) Supply Chain Relationship Management (SCRM)
The preferable supply chain strategy for a firm that sells multiple products and serves
customer segments with very different needs is to
A) set up independent supply chains for each different product or customer segment.
B) set up a supply chain that meets the needs of the highest volume product or customer
segment.
C) tailor the supply chain to best meet the needs of each product’s demand.
D) set up a supply chain that meets the needs of the customer segment with the highest
implied uncertainty.
Simulation models
A) require a higher setup cost to start and operate compared to decision tree tools.
B) require a lower setup cost to start and operate compared to decision tree tools.
C) require a higher setup cost to start but less to operate compared to decision tree tools.
D) require a lower setup cost to start but more to operate compared to decision tree
tools.
Aggregate planning is concerned with determining
A) the production level, sales level, and capacity for each period.
B) the demand level, inventory level, and capacity for each period.
C) the production level, inventory level, and capacity for each period.
D) the production level, staffing level, and capacity for each period.
Which method would serve to reduce the information distortion in a supply chain
consisting of a fabricator, manufacturer, supplier, and a retailer?
A) Make both the fabricator and retailer responsible for all decisions regarding product
inventories at the retailer.
B) Make the manufacturer responsible for all decisions regarding product inventories at
the retailer.
C) Make the supplier responsible for all decisions regarding product inventories at the
retailer.
D) Make the customer responsible for all decisions regarding product inventories at the
retailer.
The basic trade-off to consider during overbooking is between
A) having wasted capacity (or inventory) or a shortage of capacity (or inventory).
B) having lost sales or a shortage of capacity (or inventory).
C) having wasted capacity (or inventory) or excess capacity (or inventory).
D) having high sales or a shortage of capacity (or inventory).
The quality of life at selected facility locations has a significant impact on performance
because
A) network designers can use this fact to influence the role of the new facility and the
focus of people working there.
B) facilities last a long time and have an enduring impact on a firm’s performance.
C) the location of a facility has a significant impact on the extent and form of
communication that develops in the supply chain network.
D) it influences the work force available and their morale.
Historical demand for Peeps is as displayed in the table.
Use exponential smoothing to forecast the demand for March. What is the forecast if ±
= 0.7?
A) 27.5
B) 31.25
C) 28.75
D) 29.25