The difference between the value of the product and its price remains with the customer
as consumer surplus.
There is greater environmental impact in the extended supply chain than there is within
the main plant for most manufacturers.
Tailored transportationis the use of different transportation networks and modes based
on customer and product characteristics.
The vehicle-related cost is incurred whether the vehicle is operating or not and is
considered fixed for short-term operational decisions by the carrier.
A firm that builds dedicated facilities to produce a relatively stable output of products
over time in a very efficient manner and purchases peak production capability from
other companies is using subcontracting.
The forecast of demand forms the basis for all strategic and planning decisions in a
supply chain.
In product-based tailored sourcing, low-volume products with uncertain demand are
obtained from a flexible source, while high-volume products with less demand
uncertainty are obtained from an efficient source.
The bullwhip effect reduces the profitability of a supply chain by making it simpler to
provide a given level of product availability.
Cycle inventory is primarily held to
A) take advantage of diseconomies of scale and increase cost within the supply chain.
B) take advantage of diseconomies of scale and reduce cost within the supply chain.
C) take advantage of economies of scale and increase cost within the supply chain.
D) take advantage of economies of scale and reduce cost within the supply chain.
Supply chain network design decisions include
A) only the location of manufacturing, storage, or transportation-related facilities.
B) only the allocation of capacity and roles to each facility.
C) both the location of manufacturing, storage, or transportation-related facilities and
the allocation of capacity and roles to each facility.
D) neither the location of manufacturing, storage, or transportation-related facilities nor
the allocation of capacity and roles to each facility.
What is the largest value for the tracking signal (either under or overforecasting) if the
forecasts for periods 1-10 are in order, 176.6, 174.2, 176.1, 178.7, 160.4, 165.4, 177.7,
191.1, 191.0, and 175.2?
A) 1.86
B) -2.07
C) 2.58
D) 3.24
The mixed form of the systematic component of demand is shown as
A) level x trend x seasonal factor.
B) level + trend + seasonal factor.
C) (level + trend) x seasonal factor.
D) level x (trend + seasonal factor).
The decision phases in a supply chain include
A) production scheduling.
B) customer relationship management.
C) supply chain operation.
D) supply chain orientation.
Which of the following are key components of transportation decisions when designing
and operating a supply chain?
A) Software selection
B) Mode of transportation
C) Source selection
D) Warehouse selection
The second step in achieving strategic fit between competitive and supply chain
strategies is to
A) understand the supply chain and map it on the responsiveness spectrum.
B) understand customers and supply chain uncertainty.
C) match supply chain responsiveness with the implied uncertainty of demand.
D) ensure that all functional strategies within the supply chain support the supply
chain’s level of responsiveness.
When ordering a single product, it is optimal for the buyer to order the minimum of the
available capacity and the optimal order quantity. When ordering multiple products,
A) the buyer should treat each product as a unique purchase and optimize each on an
individual basis.
B) the buyer must consider trade-offs between ordering more of one product than
another.
C) the buyer should average the cost, procurement, and holding parameters and create a
basket product that consists of equal ratios of all items.
D) the buyer should construct a weighted average based on all individual item demands
and optimize this quantity.
The set of business processes required to purchase goods and services is known as
A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
The retailer can justify the forward buying when
A) they have inadvertently built up a lot of excess inventory.
B) the forward buy allows the manufacturer to smooth demand by shifting it from peak
to low-demand periods.
C) it decreases his total cost.
D) A and C only
The steps taken to move and store a product from the supplier stage to a customer stage
in the supply chain are referred to as
A) transportation.
B) retailing.
C) wholesaling.
D) distribution.
The cost of holding inventory incurred by the shipper’s supply chain network is
A) transportation cost.
B) inventory cost.
C) facility cost.
D) processing cost.
The lack of supply chain coordination on various measures of performance has costs
associated with it. Which of the following is one of these costs?
A) Inventory
B) Reliability
C) Transportation
D) Quality
A contract that allows the buyer to modify the order (within limits agreed to by the
supplier) as demand visibility increases closer to the point of sale is a
A) buyback or returns contract.
B) revenue-sharing contract.
C) quantity flexibility contract.
D) quantity discount contract.