Transportation cost depends on the prices offered by different carriers and the extent to
which the shipper uses inexpensive and slow, or expensive and fast, means of
transportation.
Predictable variabilityis change in demand that cannot be forecasted.
Transportation costs are high with drop-shipping because the average outbound distance
to the end consumer is large and package carriers are used to shipping the product.
The aggregate planner must make a trade-off between capacity, inventory, and backlog
costs.
When faced with a network design decision, the goal of a manager is to design a
network that minimizes the firm’s costs while satisfying customer needs in terms of
demand and responsiveness.
A firm’s new sustainability improvement initiative is best begun by focusing on
resource reduction activities.
The most important operational decision related to transportation in a supply chain is
the routing and scheduling of deliveries.
Companies in the same industry often select very different distribution networks,
because the choice of the distribution network can be used to achieve a variety of
supply chain objectives ranging from low cost to high responsiveness.
The advantage of carrying enough manufacturing capacity to meet demand in any
period is very low inventory costs, because no inventory needs to be carried from
period to period.
Revenue management may also be defined as the use of differential pricing based on
customer segment, time of use, and product or capacity availability to increase supply
chain surplus.
The tactic of varying price over time is suitable for assets such as fashion apparel that
have a clear date beyond which they lose a lot of their value.
The capacity management approach where a firm purchases peak production from
another firm so that internal production remains level and can be done cheaply is
A) time flexibility from workforce.
B) the use of seasonal workforce.
C) the use of subcontracting.
D) the use of dual facilities-dedicated and flexible.
Continuous review policies for inventory replenishment require safety inventory to
cover demand during
A) lead time only.
B) the review interval only.
C) both lead time and the review interval.
D) neither lead time or the review interval.
Which sequence of stages is typical for product flow in a supply chain?
A) Supplier Manufacturer Distributor
B) Retailer Distributor Customer
C) Manufacturer Retailer Distributor
D) Supplier Customer Retailer
Marlo Stanfield’s operation also uses large quantities of prepaid cell phones, on average
1500 per week with a standard deviation of 145. The lead time for their own brand of
prepaid cell phones is three weeks and they have a lot size of 350 phones. To ensure
they never run out, they keep a safety stock of 500 phones with Proposition Joe.
What is the fill rate under this policy?
A) 0.9398
B) 0.9833
C) 0.9921
D) 0.9998
The manufacturing and shipping process in the manufacturing cycle is equivalent to the
A) order receiving process in the replenishment cycle.
B) order fulfillment process in the replenishment cycle.
C) order entry process in the replenishment cycle.
D) order trigger process in the replenishment cycle.
In this approach to managing capacity, a firm uses flexible work hours by the workforce
to manage capacity to better meet demand.
A) Time flexibility from workforce
B) Use of seasonal workforce
C) Use of subcontracting
D) Use of dual facilities-specialized and flexible
Katz reports total revenue of $375,650, cost of goods sold of $267,400 and net income
of $48,325. Their total assets are $784,325 and total liabilities are $387,775. What is
their return on equity (ROE)?
A) 33.72%
B) 12.19%
C) 6.16%
D) 21.38%
________ is the ability of a supply chain to delay product differentiation or
customization until closer to the time the product is sold.
A) Specialization
B) Centralization
C) Postponement
D) Aggregation
The required safety inventory
A) grows rapidly with a decrease in the desired product availability.
B) grows rapidly with an increase in the desired product availability.
C) decreases with an increase in the desired product availability.
D) remains stable with an increase in the desired product availability.
A graph with two axes with implied uncertainty along the horizontal axis and
responsiveness along the vertical axis is referred to as the
A) implied uncertainty spectrum.
B) responsiveness spectrum.
C) uncertainty/responsiveness map.
D) zone of strategic fit.
A high level of product availability requires ________, which raises supply chain costs.
A) large inventories
B) increased revenues
C) reduced costs
D) understocking the product