Pricing may influence demand if customers are price sensitive.
Sourcing processes include the selection of suppliers, design of supplier contracts,
product design collaboration, procurement of material, and evaluation of supplier
performance.
The intercompany scope of strategic fit is no longer relevant today because the
competitive playing field has shifted from company versus company to supply chain
versus supply chain.
Faced with predictable variability of demand, a company’s goal is to respond in a
manner that maximizes profitability.
Postponement is valuable for a firm that sells a large variety of products with demand
that is independent and comparable in size.
Scheduling the workforce so that the available capacity better matches demand is using
time flexibility from the workforce.
The components of inventory decisions include capacity, cycle inventory, safety
inventory, seasonal inventory, and sourcing.
A carbon tax system is computed by multiplying the tax rate by the carbon emissions.
Trade promotions and other short-term discounts offered by a manufacturer result in
large orders during the promotion period followed by very small orders after that.
A company’s product development strategy specifies the portfolio of new products that
it will try to develop.
The reserved quantity will be affected by the difference in margin between the spot
market and the bulk sale, but not the distribution of demand from the spot market.
A supply chain could be more accurately described as a supply network or supply web.
Which mode of transportation is the most expensive?
A) Air
B) Truck
C) Rail
D) Water
The two major types of facilities are
A) distribution sites and storage sites.
B) production sites and distribution sites.
C) production sites and storage sites.
D) retail sites and distribution sites.
A company that tracks inventory and places an order for a lot size Q when the inventory
declines to the reorder point (ROP) is using
A) continuous review.
B) daily review.
C) occasional review.
D) periodic review.
Postponement is
A) not very effective if a large fraction of demand comes from multiple products.
B) not very effective if a small fraction of demand comes from a single product.
C) only effective if a large fraction of demand comes from a single product.
D) effective even if a large fraction of demand comes from a single product.
A labor dispute is a risk driver to be considered during network design. What category
does a “labor dispute” belong to?
A) Disruptions
B) Inventory risk
C) Systems risk
D) Capacity risk
Gang Aft Agley, a manufacturing company, faces the aggregate planning problem
shown in the table below. Cost of regular production is $5 per unit, the cost of
producing the same unit on overtime is $7.50, the cost of subcontracting is $9 per unit,
and the cost of carrying a unit in inventory from one month to the next is $2.
The labor contract at the plant prohibits both overtime and subcontracting output to
exceed 300 units in any five month window. The plant capacity is 600 units per month
produced using two shifts, regardless of the number of days in a month. By policy,
management wants to avoid stockouts.
Which of these statements about Scenario 8.1 is evident without even developing an
aggregate plan?
A) Some overtime will be needed.
B) Ending inventory must be negative.
C) Overtime must exceed subcontracting.
D) Subcontracting must exceed regular time output.
Which factor favors promotion during low-demand periods?
A) High forward buying
B) High ability to steal market share
C) High ability to increase overall market
D) High margin
Average flow time resulting from cycle inventory is equal to
A) Cycle Inventory/Demand = /2.
B) Cycle Inventory/Demand = /2D.
C) Cycle Inventory = /2.
D) Cycle Inventory = Lot Size = .
The places in the supply chain network where product is stored, assembled, or
fabricated are known as
A) facilities.
B) inventory.
C) transportation.
D) information.
The cost of making and delivering a product to the customer is referred to as
A) supply chain responsiveness.
B) supply chain efficiency.
C) cost-responsiveness efficient frontier.
D) implied uncertainty.
Moving inventory from point to point in the supply is known as
A) facilities.
B) inventory.
C) transportation.
D) information.
A company faces the aggregate planning problem shown in the table below. Cost of
regular production is $8 per unit, the cost of producing the same unit on overtime is
$15, the cost of subcontracting is $12 per unit, and the cost of carrying a unit in
inventory from one month to the next is $6.
The labor contract at the plant prohibits both overtime and subcontracting output to
exceed 400 units in any five month window. The plant capacity is 20 units per day
produced using two shifts and the plant runs seven days a week. By policy,
management wants to avoid stockouts.
How many units are produced using overtime in the optimal aggregate plan developed
to address Scenario 8.2?
A) 360
B) 200
C) 400
D) 280