The goal of trade promotions is to
A) influence retailers to act in a way that helps the retailer achieve its objectives.
B) influence retailers to act in a way that helps the manufacturer achieve its objectives.
C) influence retailers to act in a way that will maximize supply chain profit.
D) influence retailers to act in a way minimize supply chain cost.
Offshoring to low-cost countries is most attractive for products with
A) large production volume.
B) high variety.
C) low labor content.
D) a high ratio of transportation cost to product value.
Customers moving up future purchases to the present is
A) market growth.
B) stealing share.
C) forward selling.
D) forward buying.
The skillful supply chain manager declared she would not only disaggregate cycle
inventory, but she would also aggregate safety inventory and use an inexpensive mode
of transportation for replenishing cycle inventory and fast mode when using safety
inventory for her product that had
A) high value and high demand.
B) high value and low demand.
C) low value and high demand.
D) low value and low demand.
The average amount of inventory used to satisfy demand between receipt of supplier
shipments is referred to as
A) cycle inventory.
B) safety inventory.
C) seasonal inventory.
D) sourcing.
________ may reduce overall profits for a firm if a single product contributes the
majority of the demand.
A) Shortened forecasting window
B) Quick response
C) Postponement
D) Tailored sourcing
The Stone Lion, a bed and breakfast located in a sleepy town, caters to two groups of
customers, young couples interested in something marginally more exotic than a
staycation, and corporate clients interested in doing some team-building at a location
with no cellular service. Corporations know they can get rooms with minimal notice,
but young couples on tight budgets tend to plan well in advance of their planned stay at
the property. The corporate rate for rooms is $250 per person and the demand pattern is
normal with a mean of 20 and a standard deviation of 10. The proprietor of the Stone
Lion takes pity on the young couples and charges them only $150 for identical
accommodations.
If the corporate demand and standard deviation both decrease by 50%, how many
rooms should be reserved for corporate clients?
A) 7
B) 8
C) 9
D) 10
The quality of the aggregate plan can be improved by using information from
A) only the local firm.
B) only downstream partners.
C) only upstream partners.
D) all parts of the supply chain.
A facility that creates new products, processes, and technologies for the entire network
is
A) a lead facility.
B) a source facility.
C) a server facility.
D) an outpost facility.
The final 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) combine customer and supply chain uncertainty and map it on the implied
uncertainty spectrum.
The rising popularity of bubble and squeak as a breakfast item on the menu has resulted
in a steady demand for peas. Over the course of the past week, 457 patrons have
ordered the hearty breakfast and each serving contains a half cup of English peas. It
costs two cents to hold a half cup of peas in inventory for a year and $3 to place an
order (remember they come all the way from England!). It takes two weeks to ship a
container from England loaded with peas.
What is the cost of the inventory policy (excluding cost of goods) if the diner orders at
the economic order quantity?
A) $53.40
B) $106.80
C) $26.70
D) $80.10