The sales typically measured by a manufacturer are
A) the quantity sold to final customers (sell–through).
B) the quantity sold to distributors or retailers (sell-in).
C) the quantity reported by the salesperson.
D) based on the quantity of supplies purchased from key suppliers.
On a recent road trip to the Big Easy, the absentee landlord recorded his gasoline
purchases in a logbook that he intended to support his rental expenses for the year. The
entries are in the table below:
What is the average order size of the gasoline?
A) 15.00
B) 13.75
C) 14.25
D) 14.75
The warehousing methodology in which all the different types of products needed to
perform a particular job or satisfy a particular type of customer are stored together is
A) warehouse unit storage.
B) stock keeping unit (SKU) storage.
C) job lot storage.
D) cross-docking.
Forecasting errors are dealt with using
A) safety backlog.
B) safety capacity.
C) safety inventory.
D) B and C only
How frequently should the aggregate plan be rerun?
A) Weekly
B) Monthly
C) Every 3 to 8 months
D) As inputs to the aggregate plan change
A shortage of capacity (or inventory) occurs when
A) there are excessive cancellations.
B) there are few cancellations.
C) an expensive backup needs to be arranged.
D) B and C only
Aggregation reduces the standard deviation of demand
A) only if demand across the regions being aggregated is perfectly positively correlated.
B) only if demand across the regions being aggregated is not perfectly positively
correlated.
C) even if demand across the regions being aggregated is not perfectly positively
correlated.
D) whenever demand across the regions being aggregated is not perfectly positively
correlated.
A contract where the buyer pays a minimal amount for each unit purchased from the
supplier but shares a fraction of the revenue for each unit sold is a
A) buyback or returns contract.
B) revenue-sharing contract.
C) quantity flexibility contract.
D) quantity discount contract.
The profitability of a supply chain is impacted primarily by the
A) design, planning and operation categories of decisions.
B) operation category of decisions.
C) design and planning categories of decisions.
D) planning and operation categories of decisions.
Supplier performance must be rated on many different factors because
A) the factors impact the total supply chain cost.
B) the factors minimize the supply chain involvement.
C) the factors reduce the impact of price.
D) the factors maximize the supply chain price.
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 optimal order quantity?
A) 2670 cups
B) 17.8 cups
C) 1335 cups
D) 8.9 cups
A manufacturer with significant market power should use
A) two-part tariffs and volume discounts to achieve coordination.
B) lot-size-based quantity discounts to achieve coordination.
C) forward-buying with retail coupons to achieve coordination.
D) liquidators and reverse-buying to achieve coordination.
Serving a medium density of customers at a short distance is best done using
A) an LTL carrier.
B) third party milk runs.
C) a package carrier.
D) a private fleet with milk runs.
Quick response is clearly advantageous to
A) a distributor in the supply chain.
B) a retailer in the supply chain.
C) a manufacturer in the supply chain.
D) every step in the supply chain.
A company’s competitive strategy
A) defines the set of customer needs that it seeks to satisfy through its products and
services.
B) specifies the portfolio of new products that it will try to develop.
C) specifies how the market will be segmented and how the product will be positioned,
priced, and promoted.
D) determines the nature of procurement and transportation of materials as well as
manufacture and distribution of the product.
Available infrastructure, skill needs and response time mostly affect which of the four
Global Network Design Decisions?
A) Phase I – Supply Chain Strategy
B) Phase II – Regional Facility Configuration
C) Phase III – Desirable Sites
D) Phase IV – Location Choices