Chapter 15 Flashcards
1
Q
- Which of the following is not a goal of supply chain management?
a. fewer suppliers and long-term relationship
b. small lot sizes
c. on time deliveries
d. lowest possible transportation costs
e. delivery often to the place of use
A
d. lowest possible transportation costs
2
Q
- Logistics includes all of these except:
a. the movement of materials within a production facility
b. incoming shipments of goods or materials
c. outgoing shipments of goods or materials
d. customer selection
e. returned goods processing
A
d. customer selection
3
Q
- Small changes in consumer demand can result in large variations in orders placed because of the …
a. Supply chain
b. Safety stock requirement
c. Lead time effect
d. Bullwhip effect
e. FCFS scheduling
A
d. Bullwhip effect
4
Q
- RFID chips:
(I) are used to track goods in distribution
(II) are used to track job progress in production
(III) are used to provide special instructions to operators
(IV) can be used in inventory record keeping
a. II and III only
b. I and II only
c. II, III, and IV
d. I, II, and IV
e. IV only
A
d. I, II, and IV
5
Q
- Which of the following is not a benefit of RFID?
a. increased productivity
b. elimination of paper work
c. frequent deliveries of smaller shipments
d. reduction in clerical labor
e. increased accuracy
A
c. frequent deliveries of smaller shipments
6
Q
- A factor that makes it desirable for business organizations to actively manage their supply chains is:
a. more potential vendors
b. increasing globalization
c. downsizing
d. the internet
e. RFID’s
A
b. increasing globalization
7
Q
- Which of the following is not a benefit of effective supply chain management?
a. lower inventory costs
b. higher productivity
c. shorter lead times
d. greater customer loyalty
e. larger number of suppliers
A
e. larger number of suppliers
8
Q
- Which of the following is not a measure of the reliability of the supply chain?
a. supply chain response time
b. on-time delivery
c. fill rate
d. lead time variability
e. improving e-fulfillment statistics
A
a. supply chain response time
9
Q
- The automatic identification of material is part of/facilitated by:
a. holding costs
b. RFID
c. working capital reduction
d. net present value calculations
e. vendor analysis
A
b. RFID
10
Q
- Which of the following is not an application of E-business?
a. internet buying and selling
b. e-mail
c. order and shipment tracking
d. electronic data interchange (EDI)
e. universal product codes
A
e. universal product codes
11
Q
65. Which of the following is an advantage of E-business? (I) reduction of transaction costs (II) shortened supply chain response time (III) greater customer loyalty a. I b. II c. I and II d. II and III e. I, II, and III
A
c. I and II
12
Q
- Which of the following is a barrier to integration of separate organizations in the supply chain?
(I) conflicting objectives of the companies in the chain.
(II) different level of capacity of the companies in the chain.
(III) reluctance of the organizations in the chain to allow other organizations access to their data.
a. I only
b. I and II
c. II and III
d. I and III
e. I, II and III
A
d. I and III
13
Q
- _________ has helped business concentrate on their core business.
a. Supply Chains
b. Scheduling
c. Outsourcing
d. ERP
e. Lean Production
A
c. Outsourcing
14
Q
- Outsourcing followed by __________ is not simple.
a. Integration
b. Unionization
c. Backsourcing
d. Computerization
e. Just-in-time
A
c. Backsourcing
15
Q
- The interface between the firm and its suppliers is:
a. purchasing
b. production
c. distribution
d. engineering
e. accounting
A
a. purchasing
16
Q
- The two types of decisions that are relevant to supply chain management are:
a. Short, long term
b. Domestic, international
c. Location, layout
d. In-source, out-source
e. Tactical, operational
A
e. Tactical, operational
17
Q
- One important objective of purchasing is to:
a. set quality standards for purchased items
b. be knowledgeable about new products
c. maintain numerous sources of supply
d. obtain the lowest prices on all purchased items
e. determine the processes that should be used
A
b. be knowledgeable about new products
18
Q
- The purchasing cycle begins with:
a. selecting a supplier
b. placing an order
c. evaluating potential vendors
d. conducting a value analysis
e. receiving a requisition
A
e. receiving a requisition
19
Q
- Examination of the sources of supply for purchased parts or materials in order to improve performance is called:
a. vendor analysis
b. value analysis
c. negotiated purchasing
d. reverse engineering
e. disintegration
A
a. vendor analysis
20
Q
- Vendor analysis has the greatest potential for savings for items which have:
a. low cost per unit
b. low annual cost-volume
c. high cost per unit
d. high annual usage
e. high annual cost-volume
A
e. high annual cost-volume
21
Q
- Which of the following is not true of vendor analysis?
a. It involves an examination of the function of purchased parts or raw materials.
b. Its purpose is to reduce costs and/or improve performance of purchased goods or services.
c. It is usually performed only periodically.
d. Representatives from design and operations may work with purchasing.
e. If improvements are identified, purchasing implements those that purchasing agrees are justified.
A
a. It involves an examination of the function of purchased parts or raw materials.
22
Q
- Which of the following is not a performance driver?
a. Quality
b. Cost C. Stability
c. Velocity
d. Flexibility
A
c. Velocity
23
Q
- Which of the following would not usually be a main factor in selecting a vendor?
a. location
b. price
c. quality
d. inventory turnover
e. vendor services
A
d. inventory turnover
24
Q
78. Which of the following is part of the purchasing cycle? (I) Purchasing selects a supplier. (II) Orders from vendors are received. (III) Purchasing receives a requisition. a. II and III b. I, II, and III c. I only d. I and II e. I and III
A
b. I, II, and III
25
Q
- Which of the following is least likely to be a key consideration when a company chooses a supplier?
a. lead time and on-time delivery
b. reputation and financial stability
c. value analysis
d. quality and Quality assurance
e. flexibility of design change
A
c. value analysis
26
Q
- Which of the following is not a benefit of centralized purchasing?
a. potential for quantity discounts
b. better service from suppliers
c. quick response to local needs
d. potential for use of purchasing specialists
e. supplier research
A
c. quick response to local needs
27
Q
- The purchasing perspective of the supplier as a partner is characterized by:
a. an emphasis on low prices
b. one or a few suppliers
c. low flexibility
d. 100% inspection for quality
e. low volume
A
b. one or a few suppliers
28
Q
- Vendor Analysis is the examination of the _________ of purchased materials.
a. Function
b. Source
c. Quality
d. Cycle
e. Quantity
A
b. Source
29
Q
- Last quarter, a retailer sold 8,000 t-shirts, 7,000 of which were sold directly from on-hand inventory. This retailer’s ________ was 88%.
a. fill rate
b. inventory yield
c. profit margin
d. inventory turnover
e. none of the above
A
a. fill rate
30
Q
- Which of the following is a principle required for ethical behavior in purchasing?
a. loyalty to employer.
b. justice to those you deal with.
c. faith in your profession.
d. all of the above.
e. none of the above.
A
d. all of the above.
31
Q
- The activity which begins with a request from within the organization is:
a. Outsourcing search
b. Purchasing cycle
c. Supplier selection
d. Order receipt
e. Supply chain management
A
b. Purchasing cycle
32
Q
- Our organization can obtain visibility to potential trading partners on the internet by using:
a. C2C
b. B2C
c. B2B
d. C2B
e. None of the above
A
c. B2B
33
Q
- Real time information about product movement on store shelves could benefit from the use of:
a. batch processing
b. economic order quantities
c. statistical process control
d. radio frequency identification tags
e. infrared remote scanners
A
d. radio frequency identification tags
34
Q
- The website and order fulfillment are essential features of:
a. delayed differentiation
b. e-commerce
c. internet service providers
d. inventory balancing
e. market segmentation
A
b. e-commerce
35
Q
- A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.
a. $1.08
b. $1.16
c. $2.37
d. $2.73
e. $1.61
A
e. $1.61
Multiply the holding cost by the speed differential, then divide by 365. Compare this to the actual shipping cost difference.
