MGT 301 part 2

Question 1

Chapter 11

The three major variations of online catalogs are grouped by __________.

ANSWER
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cost-based, market-based, and competitive bidding systems

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EDI, ERP, and ASN systems

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vendors, intermediaries, and buyer exchange systems

Answer 1

catalogs by vendors, catalogs by intermediaries, and exchanges provided by buyers

vendors, intermediaries, and buyer exchange systems

Question 2

A grocery store is trying to find a new vendor for carrots. Its three criteria are: 1. Freshness, 2. Lot Size, and 3. Cost, with factor weights of .6, .1, and .3, respectively. What would a vendor with ratings of 6, 8, and 10 in the three respective categories score as a weighted total?

ANSWER
Unselected
7.4

Unselected
6.4

Unselected
9.8

Answer 2

7.4

A vendor with ratings of 6, 8, and 10 in the three respective categories would have a weighted total score of 7.4. Weighted scores are calculated by multiplying the desired ratings (in this case 6, 8, and10) by the appropriate factor weights (in this case .6, .1, and .3) and summing the results.

Therefore:
6 * .6 = 3.6
8 * .1 = .8
10 * .3 = 3

Next, we sum the results 3.6 + .8 + 3 = 7.4.
previous

Question 3

The three stages of vendor selection, in order, are __________.

ANSWER
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vendor evaluation, vendor development, and negotiations

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vendor development, vendor evaluation, and negotiations

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vendor evaluation, negotiations, and vendor development

Answer 3

vendor evaluation, vendor development, and negotiations

Question 4

What term is used to describe the outsourcing of logistics?

ANSWER
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Shipper Managed Inventory

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Third-Party Logistics

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Outside Logistics

Answer 4

Third-Party Logistics

Question 5

What type of negotiation strategy requires the supplier to open its books to the purchasers?

ANSWER
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Market-based price model

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Competitive bidding

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Cost-based price model

Answer 5

Cost-based price model

Question 6

The trucking industry is establishing Web sites, which let shippers and truckers find each other in order to ________.

ANSWER
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regulate pricing

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improve logistics efficiency

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find the most efficient routes

Answer 6

improve logistics efficiency

Question 7

Which of the following is an aspect of environmental risk in supply-chain management?

ANSWER
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Raw material availability

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Secure financial transactions

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Political issues

Answer 7

Political issues

Question 8

A restaurant runs a special promotion on lobster and plans to sell twice as many lobsters as usual. When this large order is sent to the distributer, the distributer assumes the large size is a trend, not a one-time event. The distributer, therefore, places an even larger order with the lobsterman. This is the result of __________.

ANSWER
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vendor-managed inventory

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a pass-through facility

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the bullwhip effect

Answer 8

The bullwhip effect

Question 9

The transfer of some of what are traditional internal activities and resources of a firm to outside vendors is __________.

ANSWER
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outsourcing

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Keiretsu

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a make-or-buy decision

Answer 9

outsourcing

Question 10

Local optimization is a supply-chain complication best described as __________.

ANSWER
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optimizing one’s local area without full knowledge of the organizational need

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obtaining very high production efficiency in a decentralized supply chain

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the result of supply chains built on suppliers with compatible corporate cultures

Answer 10

optimizing one’s local area without full knowledge of the organizational need

Question 11

Which of the following best describes vertical integration?

ANSWER
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To build long-term partnerships with a few suppliers

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To develop the ability to produce products which complement the original product

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To produce goods or services previously purchased

Answer 11

To produce goods or services previously purchased

Question 12

Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?

ANSWER
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Trucking

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Waterways

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Airfreight

Answer 12

Airfreight

Question 13

Which of the following is not a concern of the supply chain?

ANSWER
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Warehousing and inventory levels

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Maintenance scheduling

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Credit and cash transfers

Answer 13

Maintenance scheduling

Question 14

With the growth of the JIT, which of the following distribution systems has been the biggest loser?

ANSWER
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Trucking

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Airfreight

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Railroads

Answer 14

Railroads

Question 15

Consider a firm with a 2013 net income of $20 million, revenue of $60 million, and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant, and equipment, how many weeks of supply does the firm hold?

ANSWER
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5.20 weeks

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2.60 weeks

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4.16 weeks

Answer 15

Weeks of supply = inventory investment/average weekly cost of goods sold ANSWER: 4.16 weeks

Question 16

Which one of the following is not a supply-chain strategy?

ANSWER
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Vertical integration

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Negotiation with many suppliers

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Short-term relationship with few suppliers

Answer 16

Short-term relationship with few suppliers

Question 17

Which of the following is not an advantage of the “few suppliers” concept?

ANSWER
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Suppliers’ willingness to participate in JIT systems

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Sharing trade secrets between firms

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Suppliers’ willingness to provide technological expertise

Answer 17

Sharing trade secrets between firms

Question 18

Which one of the following performance measures is not true of a world class firm?

ANSWER
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High percentage of on-time deliveries

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Long lead time

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Short time placing an order

Answer 18

Long lead time

Question 19

The three classic types of negotiation strategies are __________.

ANSWER
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distributive bargaining, arbitrative bargaining, mediated bargaining

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cost-based price model, market-based price model, and competitive bidding

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many suppliers, few suppliers, and vendor selection

Answer 19

cost-based price model, market-based price model, and competitive bidding

Question 20

Which of the following is an opportunity for effective management in the supply chain?

ANSWER
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Multistage control of replenishment

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Channel assembly

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The bullwhip effect

Answer 20

Channel assembly

Question 21

A furniture maker has delivered a dining set to the end consumer rather than to the furniture store. The furniture maker is practicing __________.

ANSWER
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channel assembly

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postponement

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drop shipping

Answer 21

drop shipping

Question 22

Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale?

ANSWER
Unselected
Vertical integration

Unselected
Negotiating with many suppliers

Unselected
Long-term partnering with a few suppliers

Answer 22

Long-term partnering with a few suppliers

Question 23

Keeping a product generic as long as possible before customizing is known as __________.

ANSWER
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postponement

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backward integration

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forward integration

Answer 23

postponement

Question 24

The purchasing approach that holds the suppliers responsible for maintaining the necessary technology, expertise, and forecasting ability plus cost, quality, and delivery competencies is __________.

ANSWER
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many suppliers

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Keiretsu

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few suppliers

Answer 24

many suppliers

Question 25

A disadvantage of the “few suppliers” strategy is __________.

ANSWER
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the high cost of changing partners

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the possible violation of the Sherman antitrust act

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the lack of cost savings for customers and suppliers

Answer 25

the high cost of changing partners

Question 26

Which of the following is NOT a remedy for the bullwhip​ effect?
A.
allocate orders based on forecasts
B.
price stabilization
C.
information sharing
D.
channel coordination

Answer 26

Base forecasts on demand coming from the immediate downstream customer

allocate orders based on forecasts

Question 27

Which of the following is NOT one of the major causes of the bullwhip​ effect?
A.
demand forecast errors
B.
shared demand information
C.
price fluctuations
D.
order batching

Answer 27

Shared demand information

Question 28

Which of the following statements is NOT true about the factor weighting​ technique?
A.
The factor weighting technique considers multiple supplier criteria.
B.
Factors can be scored using different scales.
C.
Each factor must be assigned an importance weight.
D.
Each potential supplier is scored on each factor.

Answer 28

Factors can be scored using different scales.

Question 29

Which of the following statements is NOT​ true?
A.
The factor weighting approach can help firms identify the features that are important to them.
B.
The factor weighting model adds objectivity to decision making.
C.
The factor weighting approach does not involve subjective judgment.
D.
The factor weighting approach can help firms evaluate potential suppliers.

Answer 29

the factor weighting approach does not involve subjective judgement.