Multiple Choice Questions. Choose the one alternative that best answers the question. 2 points each.

   

1)

 

   

Successful supply chain management requires which of the following decision phases?

 

   

1)

 

   

_______ 

   

A)

 

   

Supply chain strategy/design 

   

B)

 

   

Supply chain operation 

   

C)

 

   

Supply chain planning 

   

D)

 

   

all of the above 

   

E)

 

   

A and B only 

   

   

2)

 

   

Supply chain surplus involves what two parts?

 

   

2)

 

   

_______ 

   

A)

 

   

Reliable transportation and supply chain cost 

   

B)

 

   

Manufacturing cost and selling price 

   

C)

 

   

Customer value and high quality products 

   

D)

 

   

Customer value and supply chain cost 

   

   

3)

 

   

Successful supply chain management requires many decisions relating to the flow of information, product, and funds. These decisions fall into three categories or phases. Which of the following is NOT one of these categories?

 

   

3)

 

   

_______ 

   

A)

 

   

Supply Chain Strategy and Design

 

   

B)

 

   

Supply Chain Operation 

   

C)

 

   

Supply Chain Alliances

 

   

D)

 

   

Supply Chain Planning 

   

   

4)

 

   

Customer arrival refers to

 

   

4)

 

   

_______ 

   

A)

 

   

the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. 

   

B)

 

   

the process where product is prepared and sent to the customer. 

   

C)

 

   

the process where the customer receives the product and takes ownership. 

   

D)

 

   

the point in time when the customer has access to choices and makes a decision regarding a purchase. 

   

E)

 

   

none of the above 

   

   

5)

 

   

Which of the following is not a process in the customer order cycle?

 

   

5)

 

   

_______ 

   

A)

 

   

Customer order fulfillment 

   

B)

 

   

Customer arrival 

   

C)

 

   

Customer order receiving 

   

D)

 

   

Customer order entry 

   

E)

 

   

All are processes in the customer order cycle. 

   

   

6)

 

   

Supply chain responsiveness includes the ability to do which of the following?

 

   

6)

 

   

_______ 

   

A)

 

   

Handle supply uncertainty 

   

B)

 

   

Match supply chain responsiveness with the implied uncertainty of demand 

   

C)

 

   

Ensure that all functional strategies within the supply chain support the supply chain’s level of responsiveness 

   

D)

 

   

Understand customers and supply chain uncertainty 

   

E)

 

   

none of the above 

   

   

7)

 

   

The key weakness of the ________ view is that different functions within a firm may have conflicting objectives.

 

   

7)

 

   

_______ 

   

A)

 

   

Intrafunctional scope

 

   

B)

 

   

Intercompany scope 

   

C)

 

   

Intraoperation scope

 

   

D)

 

   

Interfunctional scope 

   

   

8)

 

   

Supply chain responsiveness includes the ability to do which of the following?

 

   

8)

 

   

_______ 

   

A)

 

   

Meet short lead times 

   

B)

 

   

Ensure that all functional strategies within the supply chain support the supply chain’s level of responsiveness 

   

C)

 

   

Match supply chain responsiveness with the implied uncertainty of demand 

   

D)

 

   

Understand customers and supply chain 

   

E)

 

   

all of the above 

   

   

9)

 

   

A supply chain strategy involves decisions regarding all of the following except

 

   

9)

 

   

_______ 

   

A)

 

   

operating facilities. 

   

B)

 

   

transportation. 

   

C)

 

   

inventory. 

   

D)

 

   

information flows. 

   

E)

 

   

new product development. 

   

   

10)

 

   

Pricing directly affects revenues but can also affect production costs and inventories depending upon its impact on consumer demand. Which of the following is not listed as a metric a manager should track?

 

   

10)

 

   

______ 

   

A)

 

   

Inventory turnover

 

   

B)

 

   

Days sales outstanding 

   

C)

 

   

Profit margin

 

   

D)

 

   

Average sales price 

   

   

11)

 

   

All raw materials, work in process, and finished goods within a supply chain are known as

 

   

11)

 

   

______ 

   

A)

 

   

transportation. 

   

B)

 

   

information. 

   

C)

 

   

inventory. 

   

D)

 

   

customers. 

   

E)

 

   

facilities. 

   

   

12)

 

   

The ________ strategy results in a peak during the discount week, often followed by a steep drop in demand during the following weeks.

 

   

12)

 

   

______ 

   

A)

 

   

Fixed price

 

   

B)

 

   

Everyday low pricing 

   

C)

 

   

High-low pricing

 

   

D)

 

   

Menu pricing 

   

   

13)

 

   

Which of the following are technologies that share and analyze information in the supply chain?

 

   

13)

 

   

______ 

   

A)

 

   

Enterprise Data Planning (EDP) 

   

B)

 

   

Chain Management (CM) software 

   

C)

 

   

Electronic Resource Interchange (ERI) 

   

D)

 

   

Internet 

   

E)

 

   

none of the above 

   

   

14)

 

   

Which of the following is an advantage of distributor storage with last mile delivery?

 

   

14)

 

   

______ 

   

A)

 

   

Inventory cost is higher than distributor storage with package carrier delivery. 

   

B)

 

   

Transportation cost is higher than any other distribution option. 

   

C)

 

   

Response time is very quick ranging from same day to next day delivery. 

   

D)

 

   

More expensive to provide product availability than any other option except retail stores. 

   

E)

 

   

Returnability is harder and more expensive than a retail network. 

   

   

15)

 

   

As the number of facilities in a supply chain network increases, total logistics costs will

 

   

15)

 

   

______ 

   

A)

 

   

decrease at first and then increase. 

   

B)

 

   

increase at first and then decrease. 

   

C)

 

   

decrease. 

   

D)

 

   

increase. 

   

E)

 

   

neither increase or decrease. 

   

   

16)

 

   

Which of the following are measures of customer service that are influenced by the structure of the distribution network?

 

   

16)

 

   

______ 

   

A)

 

   

Response time 

   

B)

 

   

Product variety 

   

C)

 

   

Customer experience 

   

D)

 

   

Product availability 

   

E)

 

   

all of the above 

   

   

17)

 

   

Building some over-capacity in the supply chain network and making the capacity flexible allows a firm to alter production flows within the supply chain to

 

   

17)

 

   

______ 

   

A)

 

   

produce less in facilities that have the same cost based on current exchange rates. 

   

B)

 

   

produce more in facilities that have a lower cost based on current exchange rates. 

   

C)

 

   

produce less in facilities that have a lower cost based on current exchange rates. 

   

D)

 

   

produce more in facilities that have a higher cost based on current exchange rates. 

   

E)

 

   

None of the above are accurate. 

   

   

18)

 

   

Allocating too little capacity results in

 

   

18)

 

   

______ 

   

A)

 

   

good responsiveness if demand is not satisfied or low cost if demand is filled from a distant facility. 

   

B)

 

   

poor responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility. 

   

C)

 

   

good responsiveness if demand is not satisfied or high cost if demand is filled from a distant facility. 

   

D)

 

   

poor responsiveness if demand is not satisfied or low cost if demand is filled from a distant facility. 

   

E)

 

   

temporary damage. 

   

   

19)

 

   

If the production technology is very inflexible and product requirements vary from one country to another, a firm has to set up

 

   

19)

 

   

______ 

   

A)

 

   

a few high-capacity facilities to serve the market in each country. 

   

B)

 

   

many local facilities because this helps lower transportation costs. 

   

C)

 

   

local facilities to serve the market in each country. 

   

D)

 

   

many high-capacity facilities because this helps lower transportation costs. 

   

E)

 

   

a few high-capacity facilities because this helps lower transportation costs. 

   

   

20)

 

   

The degree of demand and price uncertainty has

 

   

20)

 

   

______ 

   

A)

 

   

a limited influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry. 

   

B)

 

   

a minor influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry. 

   

C)

 

   

no effect on the appropriate portfolio of long- and short-term warehousing space that a firm should carry. 

   

D)

 

   

a significant influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry. 

   

E)

 

   

None of the above are true. 

   

   

21)

 

   

The process of evaluating the present value of any stream of future cash flows so that management can compare two streams of cash flows in terms of their financial value is

 

   

21)

 

   

______ 

   

A)

 

   

annual cash flow (ACF) analysis. 

   

B)

 

   

discretionary cash flow (DCF) analysis. 

   

C)

 

   

future cash flow (FCF) analysis. 

   

D)

 

   

discounted cash flow (DCF) analysis. 

   

E)

 

   

none of the above 

   

   

22)

 

   

Which of the following is not a step to help an organization perform effective forecasting?

 

   

22)

 

   

______ 

   

A)

 

   

Understand and identify customer segments. 

   

B)

 

   

Identify and understand supplier requirements. 

   

C)

 

   

Integrate demand planning and forecasting throughout the supply chain. 

   

D)

 

   

Determine the appropriate forecasting technique. 

   

E)

 

   

Understand the objective of forecasting. 

   

   

23)

 

   

The goal of any forecasting method is to

 

   

23)

 

   

______ 

   

A)

 

   

predict the trend component of demand and estimate the random component. 

   

B)

 

   

predict the systematic component of demand and estimate the random component. 

   

C)

 

   

predict the random component of demand and estimate the systematic component. 

   

D)

 

   

predict the seasonal component of demand and estimate the random component. 

   

E)

 

   

predict the random component of demand and estimate the seasonal component. 

   

   

24)

 

   

A highly effective tool for a company to use when it tries to maximize profits while being subjected to a series of constraints is

 

   

24)

 

   

______ 

   

A)

 

   

distribution programming. 

   

B)

 

   

aggregate programming. 

   

C)

 

   

production programming. 

   

D)

 

   

manufacturing programming. 

   

E)

 

   

linear programming. 

   

   

25)

 

   

Which of the following is not a constraint the aggregate planner needs to consider?

 

   

25)

 

   

______ 

   

A)

 

   

Limits on overtime 

   

B)

 

   

Limits on stockouts and backlogs 

   

C)

 

   

Limits on sales commissions 

   

D)

 

   

Limits on capital available  

   

E)

 

   

Limits on layoffs 

   

   

26)

 

   

Which factor favors promotion during low-demand periods?

 

   

26)

 

   

______ 

   

A)

 

   

High ability to increase overall market

 

   

B)

 

   

High margin 

   

C)

 

   

Low margin

 

   

D)

 

   

High ability to steal market share 

   

   

27)

 

   

Companies typically divide the task of supply and demand so that

 

   

27)

 

   

______ 

   

A)

 

   

Marketing manages demand and supply. 

   

B)

 

   

Operations manages demand and supply. 

   

C)

 

   

Marketing manages supply and Operations manages demand. 

   

D)

 

   

Marketing manages demand and Operations manages supply. 

   

E)

 

   

none of the above 

   

   

28)

 

   

For any supply chain, the source of revenue is generated by

 

   

28)

 

   

______ 

   

A)

 

   

efficient operations.

 

   

B)

 

   

product flows. 

   

C)

 

   

the customer.

 

   

D)

 

   

information flows. 

   

   

29)

 

   

The processes involved in the manufacturing cycle include

 

   

29)

 

   

______ 

   

A)

 

   

manufacturing and shipping. 

   

B)

 

   

receiving. 

   

C)

 

   

order arrival. 

   

D)

 

   

production scheduling. 

   

E)

 

   

all of the above 

   

   

30)

 

   

A firm that is not on the cost-responsiveness efficient frontier can improve

 

   

30)

 

   

______ 

   

A)

 

   

only responsiveness. 

   

B)

 

   

neither responsiveness nor cost performance. 

   

C)

 

   

only cost performance. 

   

D)

 

   

responsiveness, but not cost performance. 

   

E)

 

   

both responsiveness and cost performance. 

   

   

31)

 

   

Which component of the supply chain decision-making framework would be established second?

 

   

31)

 

   

______ 

   

A)

 

   

Customer strategy 

   

B)

 

   

Supply chain strategy 

   

C)

 

   

Supply chain structure 

   

D)

 

   

Competitive strategy 

   

E)

 

   

Replenishment strategy 

   

   

32)

 

   

Which of the following is a disadvantage of distributor storage with last mile delivery?

 

   

32)

 

   

______ 

   

A)

 

   

Information cost is similar to distributor storage with package carrier delivery. 

   

B)

 

   

Customer experience is very good, particularly for bulky items. 

   

C)

 

   

Order traceability is less of an issue and easier to implement than manufacturer storage or distributor storage with package carrier delivery. 

   

D)

 

   

Returnability is easier to implement than other options. 

   

E)

 

   

Transportation cost is higher than any other distribution option. 

   

   

33)

 

   

Which of the following is the first phase in the design of a global supply chain network?

 

   

33)

 

   

______ 

   

A)

 

   

Implement supply chain strategy 

   

B)

 

   

Define a supply chain strategy 

   

C)

 

   

Select desirable sites 

   

D)

 

   

Location choices 

   

E)

 

   

Define the regional facility configuration 

   

   

34)

 

   

The evaluation of supply chain networks

 

   

34)

 

   

______ 

   

A)

 

   

should be subjective. 

   

B)

 

   

should not use more than one metric. 

   

C)

 

   

should not use multiple metrics. 

   

D)

 

   

should use multiple metrics. 

   

E)

 

   

should use only one metric. 

   

   

35)

 

   

The multiplicative form of the systematic component of demand is shown as

 

   

35)

 

   

______ 

   

A)

 

   

level × trend × seasonal factor. 

   

B)

 

   

level × (trend + seasonal factor). 

   

C)

 

   

level + trend + seasonal factor. 

   

D)

 

   

(level × trend) + seasonal factor. 

   

E)

 

   

(level + trend) × seasonal factor. 

   

   

36)

 

   

The planning horizon is

 

   

36)

 

   

______ 

   

A)

 

   

the solution to the aggregate plan. 

   

B)

 

   

the time period over which the aggregate plan is to produce a solution. 

   

C)

 

   

the duration of each time period in the aggregate plan. 

   

D)

 

   

the length of time required to produce the aggregate plan. 

   

   

37)

 

   

A firm can vary supply of product by controlling

 

   

37)

 

   

______ 

   

A)

 

   

demand.

 

   

B)

 

   

revenue.

 

   

C)

 

   

pricing.

 

   

D)

 

   

capacity. 

   

   

38)

 

   

Which of the following statements about push processes is accurate?

 

   

38)

 

   

______ 

   

A)

 

   

May also be referred to as speculative processes. 

   

B)

 

   

At the time of execution, demand is known with certainty. 

   

C)

 

   

Execution is initiated in response to customer orders. 

   

D)

 

   

May also be referred to as reactive processes. 

   

E)

 

   

None of the above are accurate. 

   

   

39)

 

   

The drive for strategic fit should come from

 

   

39)

 

   

______ 

   

A)

 

   

the strategic planning department. 

   

B)

 

   

sales and marketing. 

   

C)

 

   

middle management. 

   

D)

 

   

the highest levels of the organization, such as the CEO. 

   

E)

 

   

the supply chain manager. 

   

   

40)

 

   

Which of the following statements concerning decisions regarding location of facilities is false?

 

   

40)

 

   

______ 

   

A)

 

   

A basic trade-off here is whether to centralize to gain economies of scale or decentralize to become more responsive by being closer to the customer. 

   

B)

 

   

Deciding where a company will locate its facilities constitutes a large part of the design of a supply chain. 

   

C)

 

   

Companies must also consider a host of issues related to the various characteristics of the local area in which the facility may be situated. 

   

D)

 

   

All of these statements are true. 

   

E)

 

   

None of these statements are true. 

   

   

41)

 

   

Which distribution network design is being used when inventory is not held by manufacturers at the factories, but is held by distributors/retailers in intermediate warehouses and package carriers are used to transport products from the intermediate location to the final customer?

 

   

41)

 

   

______ 

   

A)

 

   

Manufacturer storage with direct shipping and in-transit merge 

   

B)

 

   

Distributor storage with package carrier delivery 

   

C)

 

   

Distributor storage with manufacturer pickup 

   

D)

 

   

Manufacturer storage with direct shipping 

   

E)

 

   

Retail storage with customer pickup 

   

   

42)

 

   

Managers should keep certain issues in mind when making network design decisions for a supply chain. Which of these would NOT be on that list?  

 

   

42)

 

   

______ 

   

A)

 

   

Tarriffs and tax incentives 

   

B)

 

   

Cultural implications 

   

C)

 

   

Quality of life 

   

D)

 

   

The life span of most facilities is getting shorter and shorter. 

   

   

43)

 

   

In a complex decision tree there are

 

   

43)

 

   

______ 

   

A)

 

   

an infinite number of possible paths that may result from the first period to the last. 

   

B)

 

   

thousands of possible paths that may result from the first period to the last. 

   

C)

 

   

only a few possible paths that may result from the first period to the last. 

   

D)

 

   

less than thirty possible paths that may result from the first period to the last. 

   

E)

 

   

none of the above 

   

   

44)

 

   

The measure of forecast error where the absolute amount of error of each forecast is averaged is

 

   

44)

 

   

______ 

   

A)

 

   

the tracking signal. 

   

B)

 

   

mean absolute percentage error (MAPE). 

   

C)

 

   

mean squared error (MSE). 

   

D)

 

   

mean absolute deviation (MAD). 

   

E)

 

   

bias. 

   

   

45)

 

   

The operational parameter concerned with the number of units of machine capacity needed for production is

 

   

45)

 

   

______ 

   

A)

 

   

inventory on hand. 

   

B)

 

   

overtime. 

   

C)

 

   

machine capacity level. 

   

D)

 

   

subcontracting. 

   

E)

 

   

backlog. 

   

   

Short Answer Questions. Write your answer in the space provided or on a separate sheet of paper. 5 points each.

   

46)

 

   

Describe the cycle view of the processes within a supply chain. 

   

   

47)

 

   

List the attributes along which customer demand from different segments can vary.