(I) risk avoidance.
(II) risk reduction.
(III) risk projection.
(IV) risk sharing.
A. I, II, and IV only
B. II and III only
C. I and IV only
D. II and IV only
E. I, II, III, and IV
Risk management strategies include risk avoidance, risk reduction, and risk sharing with supply chain partners.
(I) fewer supply chain partners
(II) a shorter supply chain
(III) greater supply chain visibility
A. I and II only
B. II and III only
C. I and III only
D. I only
E. I, II, and III
Fewer suppliers results in greater concentration among suppliers, making the supply chain riskier.
A. most responsible
C. most visible
E. most ethical
Consumers tend to blame the major company or brand in the supply chain associated with the ethical infractions.
-Problems with supply chain ethics are particularly difficult to manage when supply chains are global.
A. domestic suppliers
B. centralized purchasing
C. global suppliers
D. decentralized purchasing
E. risk transfer
-For small businesses, the advantages of domestic suppliers include lower shipping times and costs, closer interactions with suppliers, and increased agility.
(I) customer reliability
(II) inventory management
(III) purchasing costs
(IV) risk management
(V) international trade
A. III, IV, and V only
B. I, II, and III only
C. I, III, and IV only
D. I and II only
E. II, IV, and V only
Three aspects of supply chain management that are often of concern to small businesses are: (1) inventory management; (2) reducing risks; and (3) international trade.
A. fewer suppliers and long-term relationships
B. small lot sizes
C. on-time deliveries
D. lowest possible transportation costs
E. delivery often to the place of use
-Minimizing transportation costs might lead to an unacceptable trade-off elsewhere.
A. the movement of materials within a production facility.
B. incoming shipments of goods or materials.
C. outgoing shipments of goods or materials.
D. customer selection.
E. returned goods processing.
-Logistics involves moving goods.
A. supply chain.
B. safety stock requirement.
C. lead time effect.
D. bullwhip effect.
E. FCFS scheduling.
(I) are used to track goods in distribution.
(II) are used to track job progress in production.
(III) are used to provide special instructions to operators.
(IV) can be used in inventory record keeping.
A. II and III only
B. I and II only
C. II, III, and IV
D. I, II, and IV
E. IV only
RFID chips do not contain special instructions.
A. increased productivity
B. elimination of paperwork
C. frequent deliveries of smaller shipments
D. reduction in clerical labor
E. increased accuracy
RFID does little to facilitate the cost reductions required to make frequent, small deliveries feasible.
A. more potential vendors.
B. increasing globalization.
D. the Internet.
-Globalization is making supply chain management more important.
A. lower inventory costs
B. higher productivity
C. shorter lead times
D. greater customer loyalty
E. larger number of suppliers
Supply chain management often results in fewer suppliers.
A. supply chain response time
B. on-time delivery
C. fill rate
D. lead time variability
E. improving e-fulfillment statistics
Response time is a measure of supply chain effectiveness.
A. holding costs.
C. working capital reduction.
D. net present value calculations.
E. vendor analysis.
-RFID facilitates the automatic identification of material.
A. Internet buying and selling
C. order and shipment tracking
D. electronic data interchange (EDI)
E. universal product codes
-Universal product codes are not part of E-business
(I) reduction of transaction costs
(II) shortened supply chain response time
(III) greater customer loyalty
C. I and II
D. II and III
E. I, II, and III
Gaining and maintaining customer loyalty is even more difficult once a firm is involved in E-business.
(I) conflicting objectives of the companies in the chain
(II) different capacity levels of the companies in the chain
(III) reluctance of the organizations in the chain to allow other organizations access to their data
A. I only
B. I and II
C. II and III
D. I and III
E. I, II, and III
Capacity imbalances can be overcome, but conflicting objectives and mistrust are substantial barriers.
A. Supply chains
E. Lean production
-Outsourcing enables firms to focus on what they do, or should do, best
-Backsourcing is difficult to implement effectively if outsourcing has been done
-The purchasing function bridges the organization and its suppliers.
A. short- and long-term.
B. domestic and international.
C. location and layout.
D. in-sourcing and outsourcing.
E. tactical and operational.
-Decision making in supply chain management falls into either tactical or operational areas.
A. set quality standards for purchased items.
B. be knowledgeable about new products.
C. maintain numerous sources of supply.
D. obtain the lowest prices on all purchased items.
E. determine the processes that should be used.
-Purchasing can play a crucial role by helping solidify the supplier base for a new product.
A. selecting a supplier.
B. placing an order.
C. evaluating potential vendors.
D. conducting a value analysis.
E. receiving a requisition.
-The requisition notes what is needed, in what quantity, and when it is needed.
A. vendor analysis.
B. value analysis.
C. negotiated purchasing.
D. reverse engineering.
-Performance can be evaluated with respect to price, quality, reputation, or service.
A. low cost per unit.
B. low annual cost-volume.
C. high cost per unit.
D. high annual usage.
E. high annual cost-volume.
These represent the bulk of purchasing costs.
A. It involves an examination of the function of purchased parts or raw materials.
B. Its purpose is to reduce costs and/or improve performance of purchased goods or services.
C. It is usually performed only periodically.
D. Representatives from design and operations may work with purchasing.
E. If improvements are identified, purchasing implements those that purchasing agrees are justified.
-The function of purchased parts or raw materials would be done by the procuring department.
-Stability is not a performance driver.
D. inventory turnover
E. vendor services
-Turnover would only rarely be associated with the vendor that is selected.
(I) Purchasing selects a supplier.
(II) Orders from vendors are received.
(III) Purchasing receives a requisition.
A. II and III
B. I, II, and III
C. I only
D. I and II
E. I and III
-These are all part of the purchasing cycle.
A. lead time and on-time delivery
B. reputation and financial stability
C. value analysis
D. quality and quality assurance
E. flexibility of design change
-All the others are highly likely to be considered in supplier selection.
A. potential for quantity discounts
B. better service from suppliers
C. quick response to local needs
D. potential for use of purchasing specialists
E. supplier research
-Quick response to local needs is a benefit of decentralized purchasing
A. an emphasis on low prices.
B. one or a few suppliers.
C. low flexibility.
D. 100 percent inspection for quality.
E. low volume.
-Fewer suppliers enhance the chances of building real partnerships.
-Sources of supply are evaluated in vendor analysis.
A. fill rate
B. inventory yield
C. profit margin
D. inventory turnover
E. working yield
-This retailer’s fill rate was 88 percent.
(I) loyalty to employer
(II) justice to those you deal with
(III) faith in your profession
A. III only
B. I only
C. II only
D. I, II, and III
E. II and III only
-All of these are ethical principles in purchasing.
A. outsourcing search.
B. purchasing cycle.
C. supplier selection.
D. order receipt.
E. supply chain management.
-The purchasing cycle begins with a requisition
A. batch processing.
B. economic order quantities.
C. statistical process control.
D. radio frequency identification tags.
E. infrared remote scanners.
-RFID facilitates real-time data gathering.
A. delayed differentiation.
C. Internet service providers.
D. inventory balancing.
E. market segmentation.
-These are front-end and back-end facets of e-commerce
Multiply the holding cost by the speed differential, then divide by 365. Compare this to the actual shipping cost difference.