Chapter 9: Multiple Choice

Question 1

An entity that might exist in the typical goods-producing supply chain between a distribution center and the customers is a

Answer 1

Retail store

Question 2

Supply chains that focus on efficiency are best suited for goods and services with all of the following characteristics except

Answer 2

Significant customization

Question 3

The process of delaying product customization until the product is closer to the customer at the end of the supply chain is called

Answer 3

Postponement

Question 4

Managing the flow of finished goods, material, or components that may be unusable or discarded through the supply chain from customers toward suppliers, distributors, or manufacturers for the purpose of reuse, resale, or disposal is known as

Answer 4

Reverse logistics

Question 5

The ‘perfect order fulfillment’ metric is associated with which supply chain performance category?

Answer 5

Delivery reliability

Question 6

The bullwhip effect results from ________ in the supply chain

Answer 6

Order amplification

Question 7

A phenomenon that occurs when each member of a supply chain “orders up” to buffer its own inventory is called

Answer 7

Order amplification

Question 8

The location of a facility that minimizes the weighted distance between the facility and its supply and demand points is called the

Answer 8

Center of gravity

Question 9

Managing a supply chain requires numerous operational decisions including all of the following except

Answer 9

Locating facilities

Question 10

Outsourcing the inventory management function in supply chains to suppliers is known as

Answer 10

VMI