Quiz 2

Question 1

Craft production allows:

a. high output volume with low output variety
b. high output variety with low output volume

Answer 1

b. high output variety with low output volume

Question 2

2. Another name for postponement is:
   a. delayed product design
   b. delayed product differentiation

Answer 2

b. delayed product differentiation

Question 3

3. An agile supply chain strategy works best with:
   a. short lead time, unpredictable demand
   b. short lead time, predictable demand

Answer 3

a. short lead time, unpredictable demand

Question 4

4. A leagile supply chain strategy works best with:
   a. long lead time, predictable demand
   b. long lead time, unpredictable demand

Answer 4

b. long lead time, unpredictable demand

Question 5

5. The economic order quantity (EOQ) compares:

a. total costs with order quantity
b. order quantity with quantity of inventory in transit
c. total costs with quantity of inventory in transit

Answer 5

a. total costs with order quantity

Question 6

6. A JIT system is likely to be charcaterised by:
   a. frequent orders of small quantities
   b. less frequent orders of large quantities

Answer 6

a. frequent orders of small quantities

Question 7

7. Which of these is not a value-adding activity in warehousing?
   a. Break bulk
   b. Smooth supply
   c. Chase demand

Answer 7

c. Chase demand

Question 8

8. Materials requirements planning (MRP) systems are used to:
   a. Plan and control orders with dependent demand
   b. Plan and control orders with independent demand
   c. Forecast demand

Answer 8

a. Plan and control orders with dependent demand

Question 9

9. Which of these is not an information task performed by warehouse management systems (WMS)?
   a. Cycle counting
   b. Purchase order generation
   c. Pick accuracy confirmation

Answer 9

b. Purchase order generation

Question 10

10. Which of these is not a key driver of developing improved supply chain information systems?
    a. Information proliferation
    b. Information velocity
    c. Information sensitivity

Answer 10

c. Information sensitivity

Question 11

11. Information visibility is:
    a. The ability to see information at various points across the supply chain
    b. The ability to transfer information between supply chain partners
    c. The ability to see all supply chain information on a single user interface

Answer 11

a. The ability to see information at various points across the supply chain

Question 12

12. Electronic data interchange (EDI) is:
    a. A technology for the electronic interchange of data between two or more companies
    b. A technology for marketing products and services to customers
    c. A technology for managing suppliers

Answer 12

a. A technology for the electronic interchange of data between two or more companies

Question 13

13. Radio frequency identification (RFID) offers:
    a. Improved product knowledge
    b. Remote communication of data
    c. Faster information reporting

Answer 13

b. Remote communication of data

Question 14

14. Which of these is not a typical operational improvement offered by RFID?
    a. Shipment and item tracking
    b. Item tracking within a manufacturing plant
    c. Customer tracking within a retail store

Answer 14

c. Customer tracking within a retail store

Question 15

15. Why are the early adopters of RFID most likely to be large-scale corporations?
    a. It is difficult to gain a return-on-investment unless the supply chain is of a sufficient scale
    b. It is difficult to gain a return-on-investment unless sufficient economies of scale exist
    c. It is difficult to gain a return-on-investment unless the customer base is of a sufficient scale

Answer 15

b. It is difficult to gain a return-on-investment unless sufficient economies of scale exist

Question 16

16. Which of these statements is correct?
    a. Knowledge is gained from synthesising different information sources
    b. Data is gained from synthesising different information sources
    c. Information is gained from synthesising different knowledge sources

Answer 16

a. Knowledge is gained from synthesising different information sources

Question 17

17. Which of these is a term used to describe the total costs associated with sourcing and receiving products from another location?
    a. Total logistics costs
    b. Total shipping costs
    c. Total landed costs

Answer 17

c. Total landed costs

Question 18

18. Which of these cost models are often used by 3PLs?
    a. Cost plus margin
    b. Transactional pricing
    c. Both (a) and (b) are typically used

Answer 18

c. Both (a) and (b) are typically used

Question 19

19. Benchmarking is:
    a. a method that enables companies to monitor their performance relative to the best-in-class
    b. a method that enables companies to set different KPIs to those of their competitors
    c. a method that enables companies to copy their competitors

Answer 19

a. a method that enables companies to monitor their performance relative to the best-in-class

Question 20

20. Supply chain integration is:
    a. A term that embodies various communication channels and linkages within a supply chain
    b. A term that describes how information technology linkages are established within a supply chain
    c. A term that illustrates the complexity and multiplicity of a supply chain

Answer 20

a. A term that embodies various communication channels and linkages within a supply chain