MGT 301 part 2 Flashcards
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
catalogs by vendors, catalogs by intermediaries, and exchanges provided by buyers
vendors, intermediaries, and buyer exchange systems
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
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7.4
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6.4
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9.8
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
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
vendor evaluation, vendor development, and negotiations
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
Third-Party Logistics
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
Cost-based price model
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
improve logistics efficiency
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
Political issues
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
The bullwhip effect
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
outsourcing
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
optimizing one’s local area without full knowledge of the organizational need
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
To produce goods or services previously purchased
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
Airfreight
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
Maintenance scheduling
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
Railroads
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
Weeks of supply = inventory investment/average weekly cost of goods sold ANSWER: 4.16 weeks
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
Short-term relationship with few suppliers
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
Sharing trade secrets between firms
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
Long lead time
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
cost-based price model, market-based price model, and competitive bidding
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
Channel assembly
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
drop shipping
Which of the following supply-chain strategies creates value by allowing suppliers to have economies of scale?
ANSWER
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Vertical integration
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Negotiating with many suppliers
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Long-term partnering with a few suppliers
Long-term partnering with a few suppliers
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
postponement
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
many suppliers
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
the high cost of changing partners
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
Base forecasts on demand coming from the immediate downstream customer
allocate orders based on forecasts
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
Shared demand information
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.
Factors can be scored using different scales.
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.
the factor weighting approach does not involve subjective judgement.
