The bullwhip effect enables different stages of the supply chain to have a consistent
estimate of what demand looks like.
The goal of aggregate planning is to satisfy demand in a way that minimizes profit.
The supply chain network is designed to maximize total profits, taking into account the
expected margin and demand in each market, various logistics and facility costs, and
the taxes and tariffs at each location.
Walmart started its focus on sustainability as a defensive move given the beating it was
taking from environmental activists.
For pull processes, a manager must forecast what customer demand will be in order to
plan the level of available capacity and inventory.
A firm may increase the number of facilities beyond the point that minimizes total
logistics cost to improve the response time to its customers.
A company’s product development strategy defines the set of customer needs that it
seeks to satisfy through its products and services.
Causal forecasting methods find a correlation between demand and environmental
factors and use estimates of what environmental factors will be to forecast future
demand.
Faced with seasonal peaks, an effective revenue management tactic is to charge a higher
price during the peak period and a higher price during off-peak periods.
The costs of overstocking and understocking have a direct impact on both the optimal
cycle service level and profitability.
Actions taken in the course of placing and filling orders that lead to an increase in
variability are referred to as
A) incentive obstacles.
B) information processing obstacles.
C) operational obstacles.
D) pricing obstacles.
Which component of the supply chain decision-making framework would be used to
reach the performance level dictated by the supply chain strategy?
A) Customer strategy
B) Supply chain strategy
C) Supply chain structure
D) Competitive strategy
The operational parameter concerned with the planned inventory carried over the
various periods in the planning horizon is
A) production rate.
B) overtime.
C) backlog.
D) inventory on hand.
The supply chain strategy category would include a decision about
A) which items in the warehouse will be shipped to Malibu.
B) which warehouse will supply the Surf City location.
C) when the order should be shipped to the little old lady from Pasadena.
D) how large the warehouse in Kokomo should be.
For a global supply chain, exchange rates and inflation are
A) likely to vary over time in different locations.
B) not likely to vary over time in different locations.
C) not likely to vary over time in any locations.
D) likely to be stable over time in all locations.
The use of one product to satisfy demand for a different product is
A) information centralization.
B) specialization.
C) product substitution.
D) component commonality.
________ is a cost factor performance characteristic of Manufacturer or Distributor
Storage with Customer Pickup that is lower than the use of package carriers, especially
if using an existing delivery network.
A) Transportation
B) Inventory
C) Information
D) Facilities and Handling
The resulting accuracy of a collaborative forecast enables supply chains to be
A) more responsive but less efficient in serving their customers.
B) both more responsive and more efficient in serving their customers.
C) less responsive but less efficient in serving their customers.
D) both less responsive and less efficient in serving their customers.
The role of sourcing planning and analysisis
A) to analyze spending across various suppliers and component categories to identify
opportunities for decreasing the total cost.
B) to analyze spending across various suppliers and component categories to identify
opportunities for increasing the total cost.
C) to enable orders to be placed and delivered on schedule at the lowest possible overall
cost.
D) to enable orders to be placed and delivered on schedule regardless of cost.
The polluter pays principle dictates that
A) recycling efforts are best aimed at the designer of the product.
B) the entity causing the pollution must bear the cost to society.
C) the recycler should receive compensation from the end user of the product.
D) the recycler should receive compensation from the designer of the product.
The advantage of building up inventory during the off season to meet demand during
peak seasons and keep production stable year round is
A) very low inventory costs because no inventory needs to be carried from period to
period.
B) much of the expensive capacity would go unused during most months when demand
was lower.
C) in the fact that a firm could get by with a smaller, less expensive factory.
D) in the fact that a firm could get by with a larger, more expensive factory.
Explain how differential pricing can benefit a firm.
Explain the push/pull view of the processes within a supply chain.
Explain the measures of customer service that are influenced by the structure of the
distribution network.
Explain how tailored sourcing can be used to improve profitability.
Discuss the impact of the product life cycle on strategic fit between implied demand
uncertainty and supply chain responsiveness.
George takes an eclectic mix of spices to make his authentic jerk seasoning as a rub for
chicken, pork, and fish. The ingredients and packaging cost $1.50 and he sells the
packets by the case to Jerk Stores in the Caribbean for $2.50 per packet. Tourists to the
islands gladly pay $8.75 for these packets, eager to host their friends for an authentic
Caribbean meal and bore them with vacation photos upon their return. The demand for
the packets is normally distributed, with a mean of 2500 packets and a standard
deviation of 600.
Why should design collaboration capability be considered in supplier selection
decisions?
The XYZ Company has a choice between two warehouses. A lease at location A costs
$1000 per month with a payment of $2000 up front to guarantee the 3 year lease.
Location B would cost $1200 per month and would be leased from month to month.
The anticipated revenue in either location is $1500 per month. The estimated rate of
return is 10% per year. Using net present value, determine which location would be the
better choice.
What is the impact of lack of coordination on the performance of the supply chain?
Explain why transportation systems should be tailored.
Explain the role of each of the major drivers of supply chain performance.