Test Bank for Supply Chain Logistics Management 6th Edition by Ace Test Banks

Test Bank for Supply Chain Logistics Management 6th Edition

richard@qwconsultancy.com

1|Pa ge

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) The internet has increased customization of products. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 01-08 Responsiveness Topic : Responsive Business Model Source : Chapter 01 Test Bank > TF Qu. 01-13 The internet has increased customization...

2) Supply chain management promotes a network of highly efficient interdependent businesses. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 01-03 Generalized Supply Chain Model and Supply Chain Applications Topic : Generalized Supply Chain Model and Supply Chain Applications Source : Chapter 01 Test Bank > TF Qu. 01-14 Supply Chain Management promotes a...

Version 1

3) Life cycle support is a critical supply chain processes. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 01-06 Integrative Management and Supply Chain Processes Topic : Integrative Management and Supply Chain Processes Source : Chapter 01 Test Bank > TF Qu. 01-15 Life cycle support is a...

4) Sharing future strategic and tactical plans is a fundamental part of supply chain management. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-06 Integrative Management and Supply Chain Processes Topic : Enterprise Extension Source : Chapter 01 Test Bank > TF Qu. 01-16 Sharing future strategic and tactical...

Version 1

5) A third party service supplier is also known as a non-asset based ISP. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-06 Integrative Management and Supply Chain Processes Topic : Integrated Service Providers Source : Chapter 01 Test Bank > TF Qu. 01-17 A third party service supplier...

6) Process specialization involves the same concepts as vertical integration. 6) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-06 Integrative Management and Supply Chain Processes Topic : Enterprise Extension Source : Chapter 01 Test Bank > TF Qu. 01-18 Process specialization involves the same...

Version 1

7) Widespread adoption of information technology has led to increased operational

responsiveness. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-08 Responsiveness Topic : Responsiveness Source : Chapter 01 Test Bank > TF Qu. 01-19 Widespread adoption of informationtechnology has...

8) Enterprise extension is an expansion of control to increase joint planning and collaboration. 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-06 Integrative Management and Supply Chain Processes Topic : Enterprise Extension Source : Chapter 01 Test Bank > TF Qu. 01-20 Enterprise extension is an expansion...

Version 1

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 9) The goal of integrated logistics is to: 9) ______ A) identify new suppliers. B) develop innovative new products. C) synchronize and link the supply chain. D) reduce product variety. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 01-01 The Supply Chain Revolution Topic : The Supply Chain Revolution Source : Chapter 01 Test Bank > MC Qu. 01-01 The goal of integrated logistics...

10) Over the past several decades, responsiveness has increased, primarily because of: 10) ______ A) improvement in federal highways. B) better sea ports. C) development of double stack containers. D) information technology adoption. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 01-02 Responsiveness Topic : Responsive Business Model Source : Chapter 01 Test Bank > MC Qu. 01-02 Over the past several decades,...

Version 1

11) A supply chain is best described as a(n)________ of ________ companies. 11) ______ A) group, competing B) group, collaborative C) alliance, two D) directory, related Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-01 The Supply Chain Revolution Topic : The Supply Chain Revolution Source : Chapter 01 Test Bank > MC Qu. 01-03 A Supply Chain is best...

12) Which of the following best describes an integrative supply chain process: 12) ______ A) something that links together independent parts. B) a concept that identifies independent parts. C) a conglomeration of functions. D) the linking of critical parts of a supply chain. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-02 Why Integration Creates Value Topic : Why Integration Creates Value Source : Chapter 01 Test Bank > MC Qu. 01-04 Which of the following best...

Version 1

13) Firms working together to integrate components of a supply chain is known as ________ 13) ______ A) acquisition B) sharing C) collaboration D) collusion Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 01-06 Integrative Management and Supply Chain Processes Topic : Collaboration Source : Chapter 01 Test Bank > MC Qu. 01-05 Firms working together to integrate...

14) A firm which provides critical operations functionality to members of a supply chain is a(n): 14) ______ A) integrated service supplier (ISP). B) supply chain leader. C) supply chain follower. D) retailer. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 01-06 Integrative Management and Supply Chain Processes Topic : Integrated Service Providers Source : Chapter 01 Test Bank > MC Qu. 01-06 A firm which provides critical...

Version 1

15) In order to achieve the lowest total process cost, a supply chain must ________. 15) ______ A) minimize the cost of the most expensive function B) minimize the cost of each function C) minimize the total cost for all involved functions combined D) analyze each function separately Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-06 Integrative Management and Supply Chain Processes Topic : Integrative Management and Supply Chain Processes Source : Chapter 01 Test Bank > MC Qu. 01-07 In order to achieve thelowest...

16) The Anticipatory Business Model is best described by which statement: 16) ______ A) driven by forecast. B) driven by information technology. C) builds on the principles of time-based competition. D) is a low risk strategy. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-08 Responsiveness Topic : Anticipatory Business Model Source : Chapter 01 Test Bank > MC Qu. 01-08 The Anticipatory Business Model is...

Version 1

17) The primary benefits of low product complexity include all of the following except: 17) ______ A) increased revenue. B) improved product quality and reliability. C) improved product development. D) decreased sales support cost. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-09Supply Chain Challenges Topic : Complexity Management Source : Chapter 01 Test Bank > MC Qu. 00-09 The primary benefits of low...

18) According to research, all of the following are examples of supply chain disruptors except: 18) ______ A) consumers have become more patient. B) consumers demand more personalization of products and services. C) growth of omni-channel shopping. D) competing priorities of millennial and aging consumers. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-10Industry Disruptors Topic : Consumer Requirements Source : Chapter 01 Test Bank > MC Qu. 01-10 According to research, all of...

Version 1

19) A firm that increases the number of stock-keeping-units (SKUs) in its product portfolio can

expect to initially experience ________ revenues and ________ supply chain costs. 19) ______ A) increasing, increasing B) decreasing, increasing C) increasing, decreasing D) decreasing, decreasing Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 3 Difficult Gradable : automatic Learning Objective : 01-09Supply Chain Challenges Topic : Complexity Management Source : Chapter 01 Test Bank > MC Qu. 01-11 A firm that increases the...

20) The process of managing customer returns and products which have served their purpose is

known as: 20) ______ A) reverse logistics. B) backfilling. C) order fulfillment. D) demand planning. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 01-06 Integrative Management and Supply Chain Processes Topic : Integrative Management and Supply Chain Processes Source : Chapter 01 Test Bank > MC Qu. 01-12 The process of managing customer...

Version 1

Answer Key Test name: Chapter 01 Test Bank 1) TRUE 2) TRUE 3) TRUE 4) TRUE 5) FALSE 6) FALSE 7) TRUE 8) TRUE 9) C 10) D 11) B 12) D 13) C 14) A 15) C 16) A 17) A 18) A 19) A 20) A

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Enterprise administration and integration modules in an enterprise resource planning (ERP) system are not specifically designed for supply chain applications. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Enterprise Integration and Administration Source : Chapter 02 Test Bank > TF Qu. 02-14 Enterprise administration and integration modules...

2) Customer relationship management (CRM) systems are designed to enable information

sharing among customers, sales team members and operations management employees. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Enterprise Integration and Administration Source : Chapter 02 Test Bank > TF Qu. 02-15 Customer relationship management (CRM) systems...

Version 1

3) Supply chain compliance is part of the enterprise operations system components in an

enterprise resource planning (ERP) system. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Enterprise Planning and Monitoring Source : Chapter 02 Test Bank > TF Qu. 02-16 Supply chain compliance is part...

4) Certification of raw material suppliers and production processes is an example of risk

mitigation. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Blockchain Topic : Uncertainty and Risk Mitigation Source : Chapter 02 Test Bank > TF Qu. 02-17 Certification of raw material suppliers...

Version 1

5) Blockchain increases security for supply chains but reduces supply chain transparency. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Blockchain Source : Chapter 02 Test Bank > TF Qu. 02-18 Blockchain increases security for...

6) Indicating which incoming vehicle to unload next is a function of the yard management

system (YMS). 6) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Enterprise Integration and Administration Source : Chapter 02 Test Bank > TF Qu. 02-19 Indicating which incoming vehicle to...

Version 1

7) The base of the supply chain information system (SCIS) triangle is the transaction system. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-01 Information System Functionality Topic : Information System Functionality Source : Chapter 02 Test Bank > TF Qu. 02-20 The base of the supply...

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 8) Transaction systems are characterized by all of the following EXCEPT: 8) ______ A) formalized business processes. B) a small number of transactions. C) a large volume of transactions. D) an operational, day-to-day focus. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-01 Information System Functionality Topic : Information System Functionality Source : Chapter 02 Test Bank > MC Qu. 02-01 Transaction systems are characterized by...

Version 1

9) The supply chain information system functionality pyramid has which of the following at its

base? 9) ______ A) Formalized business processes B) Management control C) A strong transaction system D) Vehicle routing and scheduling Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-01 Information System Functionality Topic : Information System Functionality Source : Chapter 02 Test Bank > MC Qu. 02-02 The Supply Chain Information Functionality...

10) Most supply chain information system (SCIS) development and implementation is now

focused on what? 10) ______ A) Formalized business processes B) A low volume of transactions C) A large volume of transactions D) Enhanced supply chain system integration and improved decision-making Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-01 Information System Functionality Topic : Information System Functionality Source : Chapter 02 Test Bank > MC Qu. 02-03 Most supply chain information system...

Version 1

11) An integrated corporate-wide database is sometimes also referred to as a(n) ________ . 11) ______ A) ERP system B) data warehouse C) legacy system D) general ledger Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Supply Chain Information System Modules Source : Chapter 02 Test Bank > MC Qu. 02-04 An integrated corporate-wide database is...

12) The human resources module of the ERP systems tracks what? 12) ______ A) Personnel profiles and their activity levels B) The functions for invoice collection C) The supply chain’s ability to measure, monitor and report cost D) The timing and location of supply chain value-added processes Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Enterprise Integration and Administration Source : Chapter 02 Test Bank > MC Qu. 02-05 The human resources module of...

Version 1

13) Customer relationship management (CRM) systems are applications designed to facilitate

information sharing between all of the following EXCEPT: 13) ______ A) customers. B) sales force members. C) operations management employees. D) stockholders. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Enterprise Planning and Monitoring Source : Chapter 02 Test Bank > MC Qu. 02-06 Customer relationship management (CRM)systems are...

14) ________ is the hardware and software that facilitates information exchange between the

systems and physical infrastructures within the firm and between supply chain partners. 14) ______ A) Communication technology B) Blockchain C) Consumer connectivity D) Reverse logistics Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Communication Technology Source : Chapter 02 Test Bank > MC Qu. 02-07 __ is the hardware and...

Version 1

15) The pharmaceutical industry is highly affected by counterfeiting because of the ________

value of products and ________ of falsifying raw material. 15) ______ A) high; ease B) high; difficulty C) low; ease D) low; difficulty Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Blockchain Source : Chapter 02 Test Bank > MC Qu. 02-08 The pharmaceutical industry is highly...

16) All of the following are benefits of blockchain EXCEPT which one? 16) ______ A) Better security B) Increased innovation C) Decreased scalability D) Enhanced transparency Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Blockchain Source : Chapter 02 Test Bank > MC Qu. 02-09 All of the following are...

Version 1

17) Block chain is an example of improved ________ ________ which increases security and

transparency. 17) ______ A) Strategic planning B) Consumer connectivity C) Communications technology D) Decision analysis Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Blockchain Source : Chapter 02 Test Bank > MC Qu. 02-10 Blockchain is an example of...

18) Material sourcing, quality, reliability and financial stability are elements of: 18) ______ A) supply chain risk. B) supply chain uncertainty. C) supply chain communications. D) supply chain technology. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Uncertainty and Risk Mitigation Source : Chapter 02 Test Bank > MC Qu. 02-11 Material sourcing, quality, reliability and...

Version 1

19) Capacity, visibility, consistency and tracking are elements of: 19) ______ A) supply chain risk. B) supply chain uncertainty. C) supply chain communications. D) supply chain technology. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 02-02 Supply Chain Information System Modules Topic : Uncertainty and Risk Mitigation Source : Chapter 02 Test Bank > MC Qu. 02-12 Capacity, visibility, consistency and tracking...

20) The warehouse management system (WMS) manages all of the following transaction types

EXCEPT: 20) ______ A) Inventory storage B) Inventory retrieval C) Product shipping D) Vehicle movements Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 02-03 Logistics Operations Modules Topic : Logistics Operations Modules Source : Chapter 02 Test Bank > MC Qu. 02-13 The warehouse management system (WMS)...

Version 1

Answer Key Test name: Chapter 02 Test Bank 1) TRUE 2) TRUE 3) FALSE 4) TRUE 5) FALSE 6) TRUE 7) TRUE 8) B 9) C 10) D 11) B 12) A 13) D 14) A 15) A 16) C 17) C 18) A 19) B 20) D

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Logistics cost has declined as a percent of GDP over the past 25 years. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 03-01 The Logistics of Business is Big and Important Topic : The Logistics of Business is Big and Important Source : Chapter 03 Test Bank > TF Qu. 03-10 Logistics cost has declined as...

2) Service reliability involves product quality. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 03-02 The Logistical Value Proposition Topic : Service Benefits Source : Chapter 03 Test Bank > TF Qu. 03-11 Service reliability involves product quality....

Version 1

3) Prior to the 1960’s, logistics managers tended to view each segment of cost separately rather

than as a total cost of logistics. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 03-02 The Logistical Value Proposition Topic : Cost Minimization Source : Chapter 03 Test Bank > TF Qu. 03-12 Prior to the 1960&#8217;s, logistics...

4) Managing costs is only part of the logistics value proposition. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 03-02 The Logistical Value Proposition Topic : Logistics Value Generation Source : Chapter 03 Test Bank > TF Qu. 03-13 Managing costs is only part...

Version 1

5) The work of logistics involves transportation, inventory, order processing, warehousing, and

facility network design. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 03-03 The Work of Logistics Topic : The Work of Logistics Source : Chapter 03 Test Bank > TF Qu. 03-14 The work of logistics involves...

6) Logistical system design is driven by attention to customer requirements and expectations

while carefully managing total costs. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 03-06 Logistical Operating Arrangements Topic : Logistical Operating Arrangements Source : Chapter 03 Test Bank > TF Qu. 03-15 Logistical system design is driven...

Version 1

7) Logistics costs drive a firm’s focus on speed and consistency. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 03-02 The Logistical Value Proposition Topic : Logistics Value Generation Source : Chapter 03 Test Bank > TF Qu. 03-16 Logistics costs drive a firm&#8217;s...

8) To avoid problems associated with logistical failures, firms may develop flexible structures. 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 03-07 Flexible Structure Topic : Flexible Structure Source : Chapter 03 Test Bank > TF Qu. 03-17 To avoid problems associated with...

Version 1

9) Inventory and transportation management are an essential part of integrated logistics. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 03-03 The Work of Logistics Topic : The Work of Logistics Source : Chapter 03 Test Bank > TF Qu. 03-18 Inventory and transportation management are...

10) Echeloned distribution structure facilitates direct delivery. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 03-06 Logistical Operating Arrangements Topic : Echelon Source : Chapter 03 Test Bank > TF Qu. 03-19 Echeloned distribution structure facilitates direct...

Version 1

11) Performance cycle uncertainty is a key concern in logistical operations. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 03-08 Supply Chain Synchronization Topic : Performance Cycle Uncertainty Source : Chapter 03 Test Bank > TF Qu. 03-20 Performance cycle uncertainty is a...

12) The goal of cycle synchronization is achievement of planned time performance. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 03-08 Supply Chain Synchronization Topic : Performance Cycle Uncertainty Source : Chapter 03 Test Bank > TF Qu. 03-21 The goal of cycle synchronization...

Version 1

13) Performance cycle variance is a prime determinant of safety stock. 13) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 03-08 Supply Chain Synchronization Topic : Performance Cycle Uncertainty Source : Chapter 03 Test Bank > TF Qu. 03-22 Performance cycle variance is a...

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 14) An increase in dwell time indicates that: 14) ______ A) asset idle time compared to total time in the system has decreased. B) asset idle time compared to total time in the system has increased. C) total time in the system has increased. D) asset idle time has increased. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 03-08 Supply Chain Synchronization Topic : Supply Chain Synchronization Source : Chapter 03 Test Bank > MC Qu. 03-01 An increase in dwell time...

Version 1

15) The goal of integrated logistics is to: 15) ______ A) develop lower cost suppliers. B) minimize transportation costs in a supply chain. C) minimize operational expenditures while meeting customer service goals. D) simplify the process of supply chain management. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 03-01 The Logistics of Business is Big and Important Topic : The Logistics of Business is Big and Important Source : Chapter 03 Test Bank > MC Qu. 03-02 The goal of integrated logistics...

16) The basic unit of supply chain design and operational control is: 16) ______ A) integrated logistics. B) the logistics performance cycle. C) echeloned inventory. D) life cycle support. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 03-08 Supply Chain Synchronization Topic : Performance Cycle Structure Source : Chapter 03 Test Bank > MC Qu. 03-03 The basic unit of supply...

Version 1

17) A cross-dock facility: 17) ______ A) handles only outgoing shipments. B) converts incoming shipments from suppliers to outgoing shipments for delivery. C) handles only incoming shipments. D) combines outgoing shipments into full loads for long-distance shipping. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 03-07 Flexible Structure Topic : Flexible Structure Source : Chapter 03 Test Bank > MC Qu. 03-04 A cross-dock facility:...

18) The 'Pareto principle' is: 18) ______ A) also known as the 70/30 rule. B) seldom applied to inventory analysis. C) useful for product profitability analysis. D) useful for forecasting transportation requirements. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 03-03 The Work of Logistics Topic : Inventory Source : Chapter 03 Test Bank > MC Qu. 03-05 The "Pareto Principle&#39; is:...

Version 1

19) A high-quality logistics system offers high levels of inventory availability and predictable

operational performance. This is what known as: 19) ______ A) predictive logistics. B) continuous improvement. C) service reliability. D) service quality. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 03-02 The Logistical Value Proposition Topic : Service Benefits Source : Chapter 03 Test Bank > MC Qu. 03-06 A high-quality logistics system offers...

20) The primary reason that total logistics cost has reduced as a percentage of gross domestic

product (GDP) as what? 20) ______ A) Inventory has increased as a percent of total cost B) Inventory has decreased as a percent of total cost C) Transportation has decreased as a percent of total cost D) Nominal GDP has increased Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : 03-01 The Logistics of Business is Big and Important Topic : The Logistics of Business is Big and Important Source : Chapter 03 Test Bank > MC Qu. 03-07 The primary reason that total...

Version 1

21) The work of logistics involves which of the following? 21) ______ A) Order processing, inventory, and manufacturing B) Inventory, transportation, manufacturing and procurement C) Manufacturing, customer accommodation, and purchasing D) Transportation, inventory, order processing, warehousing, and facility network design Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 03-03 The Work of Logistics Topic : The Work of Logistics Source : Chapter 03 Test Bank > MC Qu. 03-08 The work of logistics involves...

22) The work of logistics involves all of the following EXCEPT which of the following? 22) ______ A) Inventory B) Transportation C) Order processing D) Manufacturing Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 03-03 The Work of Logistics Topic : The Work of Logistics Source : Chapter 03 Test Bank > MC Qu. 03-09 The work of logistics involves...

Version 1

Answer Key Test name: Chapter 03 Test Bank 1) TRUE 2) FALSE 3) TRUE 4) TRUE 5) TRUE 6) TRUE 7) FALSE 8) TRUE 9) TRUE 10) FALSE 11) TRUE 12) TRUE 13) TRUE 14) B 15) C 16) B 17) B 18) C 19) C 20) B 21) D 22) D

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Since Walmart and Target are both mass merchandisers, it is likely that they both have the same logistical service requirements from suppliers. 1) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-01 Customer-Focused Marketing Topic : Transactional versus Relationship Marketing Source : Chapter 04 Test Bank > TF Qu. 04-16 Since Walmart and Target are...

2) Increases in customer spatial convenience are typically only achieved with higher logistics

expenditures. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-01 Customer-Focused Marketing Topic : Supply Chain Service Outputs Source : Chapter 04 Test Bank > TF Qu. 04-17 Increases in customer spatial convenience...

Version 1

3) Companies which practice customer-focused marketing are likely to offer the same fill rate

performance for all items they stock. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-05 Developing Customer Accomodation Strategy Topic : Framework for Strategic Choice Source : Chapter 04 Test Bank > TF Qu. 04-18 Companies which practice customer-focused marketing...

4) Acceptable operational performance is only achieved when service malfunctions never occur. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-02 Customer Service Topic : Service Reliability Source : Chapter 04 Test Bank > TF Qu. 04-19 Acceptable operational performance is only...

Version 1

5) A company has identified that there are five critical components of a 'perfect order' It

establishes a 98% standard on each of these components. Assuming it achieves this standard, it can expect that its overall perfect order performance is greater than 95%. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-02 Customer Service Topic : The Perfect Order Source : Chapter 04 Test Bank > TF Qu. 04-20 A company has identified that...

6) A company has identified that there are three critical components of a 'perfect order' It

establishes a 99% standard on each of these components. Assuming it achieves this standard, it can expect that its overall perfect order performance is greater than 95%. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-02 Customer Service Topic : The Perfect Order Source : Chapter 04 Test Bank > TF Qu. 04-21 A company has identified that...

Version 1

7) A firm that reaches its customer satisfaction goal scan expect customer loyalty in return. 7) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-03 Customer Satisfaction Topic : Limitations of Customer Satisfaction Source : Chapter 04 Test Bank > TF Qu. 04-22 A firm that reaches its...

8) Customers may be dissatisfied with a company even if that company consistently provides

perfect order performance. 8) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-03 Customer Satisfaction Topic : Limitations of Customer Satisfaction Source : Chapter 04 Test Bank > TF Qu. 04-23 Customers may be dissatisfied with...

Version 1

9) A customer success program is not an appropriate level of relationship with all of a firm’s

customers. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-05 Developing Customer Accomodation Strategy Topic : Framework for Strategic Choice Source : Chapter 04 Test Bank > TF Qu. 04-24 A customer success program is...

10) In developing strategy for customer accommodation, low-profitability customers may be

candidates for a customer success relationship. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-05 Developing Customer Accomodation Strategy Topic : Framework for Strategic Choice Source : Chapter 04 Test Bank > TF Qu. 04-25 In developing strategy for customer...

Version 1

11) A firm which provides operational performance that is superior to its competitors may still

experience customer dissatisfaction. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-03 Customer Satisfaction Topic : Customer Expectations Source : Chapter 04 Test Bank > TF Qu. 04-26 A firm which provides operational...

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 12) In providing service outputs to consumers, a disadvantage of Internet retailers compared to physical ('bricks-and-mortar') retailers arises in: 12) ______ A) product variety and assortment. B) lot size. C) price. D) waiting time. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-01 Customer-Focused Marketing Topic : Supply Chain Service Outputs Source : Chapter 04 Test Bank > MC Qu. 04-01 In providing service outputs to...

Version 1

13) In general, offering consumers higher levels of service output in terms of greater spatial

convenience or product variety: 13) ______ A) has little impact on logistics and distribution cost. B) results in lower logistics and distribution cost. C) results in higher logistics and distribution cost. D) does not impact configuration of a supply chain. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-01 Customer-Focused Marketing Topic : Supply Chain Service Outputs Source : Chapter 04 Test Bank > MC Qu. 04-02 In general, offering consumers higher...

14) The most exacting measure of logistics performance regarding availability is: 14) ______ A) stockout frequency. B) orders shipped complete. C) fill rate. D) average number of items on hand. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-02 Customer Service Topic : Availability Source : Chapter 04 Test Bank > MC Qu. 04-03 The most exacting measure of...

Version 1

15) The ultimate in logistics service measurement is: 15) ______ A) stockout frequency. B) perfect orders. C) orders shipped complete. D) average number of items on hand. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-02 Customer Service Topic : The Perfect Order Source : Chapter 04 Test Bank > MC Qu. 04-04 The ultimate in logistics service...

16) Which of the following is not one of the 'service outputs' of a supply chain? 16) ______ A) Lot size B) Waiting time C) Price D) Spatial convenience Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-01 Customer-Focused Marketing Topic : Supply Chain Service Outputs Source : Chapter 04 Test Bank > MC Qu. 04-05 Which of the following is...

Version 1

17) In general, studies find that stockouts: 17) ______ A) are extremely rare. B) average about 8% for retail stores. C) are less frequent for items that are being specifically promoted by a retailer. D) average about 20% for retail stores. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-02 Customer Service Topic : Availability Source : Chapter 04 Test Bank > MC Qu. 04-06 In general, studies find that...

18) At a meeting with an important customer, a manager at Jones Company learned that the

customer expected at least 97% of items ordered to be shipped on time. Jones Company currently averages 95% on time delivery for this customer. This is an example of which 'gap' in the customer satisfaction model? 18) ______ A) Performance gap B) Knowledge gap C) Standards gap D) Communication gap Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-03 Customer Satisfaction Topic : A Model of Customer Satisfaction Source : Chapter 04 Test Bank > MC Qu. 04-07 At a meeting with an...

Version 1

19) At a meeting with an important customer, a manager at Jones Company learned that the

customer expected at least 97% of items ordered to be shipped on time. The manager did not feel this was possible, so a goal of 95% on time delivery was set instead. This is an example of which 'gap' in the customer satisfaction model? 19) ______ A) Performance gap B) Knowledge gap C) Standards gap D) Communication gap Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-03 Customer Satisfaction Topic : A Model of Customer Satisfaction Source : Chapter 04 Test Bank > MC Qu. 04-08 At a meeting with an...

20) The difference between a 'customer success' focus' and a 'customer satisfaction' focus is that: 20) ______ A) customer satisfaction is more difficult to achieve. B) customer success deals with expectations of customers, satisfaction deals with their

requirements. C) customer satisfaction deals with expectations, customer success deals with requirements. D) there really isn’t any difference. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-04 Customer Success Topic : Achieving Customer Success Source : Chapter 04 Test Bank > MC Qu. 04-09 The difference between a "customer...

Version 1

21) In terms of a customer accommodation focus, providing perfect orders to a customer would

indicate which level of commitment? 21) ______ A) Customer service B) Customer satisfaction C) Customer success D) Customer happiness Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-02 Customer Service Topic : The Perfect Order Source : Chapter 04 Test Bank > MC Qu. 04-10 In terms of a customer...

22) Jones Company works hard to understandthe expectations of several of its important

customers and then diligently attempts to meet the expectations of these customers. It is clear that Jones company is focused on: 22) ______ A) customer service. B) customer satisfaction. C) customer happiness. D) customer success. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-03 Customer Satisfaction Topic : Customer Expectations Source : Chapter 04 Test Bank > MC Qu. 04-11 Jones Company works hard to...

Version 1

23) One key aspect of a customer success commitment is to: 23) ______ A) Provide value-added services. B) Understand customer expectations. C) Consistently deliver complete orders. D) Ask customers to settle for substandard service.

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-04 Customer Success Topic : Value-Added Services Source : Chapter 04 Test Bank > MC Qu. 04-12 One key aspect of a customer...

24) From a strategic perspective, it is important for customer-focused companies to: 24) ______ A) provide customer success only to the most profitable customers. B) realize different customer accommodation approaches may be appropriate for

different customers. C) discern/be aware that all customers desire close customer success types of relationships. D) never refuse to do business with a customer. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-05 Developing Customer Accomodation Strategy Topic : Framework for Strategic Choice Source : Chapter 04 Test Bank > MC Qu. 04-13 From a strategic perspective, it...

Version 1

25) Jones Company achieved a 94% fill rate last month.No customers have shared their

expectations in terms of fill rate. This is an example of: 25) ______ A) a knowledge gap. B) a standards gap. C) a performance gap. D) a perception gap. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 04-03 Customer Satisfaction Topic : A Model of Customer Satisfaction Source : Chapter 04 Test Bank > MC Qu. 04-14 Jones Companyachieved a 94% fill...

26) A key measurement of company performance in terms of operational performance is: 26) ______ A) on-time delivery. B) fill rate. C) stockout frequency. D) total logistics cost. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 04-02 Customer Service Topic : Operational Performance Source : Chapter 04 Test Bank > MC Qu. 04-15 A key measurement of company...

Version 1

Answer Key Test name: Chapter 04 Test Bank 1) 2) 3) 4) 5)

FALSE TRUE FALSE FALSE FALSE With five components, each with a 98% success rate, the success rate will be 0.98x0.98x0.98x0.98x0.98 = 0.904, a 90.4% success rate. 6) TRUE

With three components, each with a 99% success rate, the success rate will be 0.99x0.99x0.99 = 0.970, a 97.0% success rate. 7) FALSE 8) TRUE 9) TRUE 10) TRUE 11) TRUE 12) D 13) C 14) B 15) B 16) C 17) B 18) B 19) C 20) C 21) A 22) B 23) A 24) B 25) A 26) A

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) It has been clearly demonstrated that quantitative techniques of forecasting always result in less forecast error than qualitative techniques. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Techniques Source : Chapter 05 Test Bank > TF Qu. 05-15 It has been clearly demonstrated that...

2) To effectively implement Sales and Operations Planning, sales and marketing people should

develop marketing plans based on their forecast of demand while operations should develop the production plan based on their own forecast of demand. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-03 Sales and Operation Planning Topic : Making S&OP Work Source : Chapter 05 Test Bank > TF Qu. 05-16 To effectively implement Sales...

Version 1

3) S&OP is a process that applies only to manufacturing organizations. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-03 Sales and Operation Planning Topic : S&OP Process Source : Chapter 05 Test Bank > TF Qu. 05-17 S&amp;OP is a process that applies...

4) Good supply chain visibility is achieved when a firm is able to track inventory and resources

and effectively evaluate and manage that inventory. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 05-01 Supply Chain Planning Topic : Supply Chain Visibility Source : Chapter 05 Test Bank > TF Qu. 05-18 Good supply chain visibility is...

Version 1

5) Sales and operations planning (S&OP) is essentially the same as advanced planning systems

(APS). 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-03 Sales and Operation Planning Topic : S&OP Process Source : Chapter 05 Test Bank > TF Qu. 05-19 Sales and operations planning...

6) To insure that sales and operations planning (S&OP) is most effectively implemented, the

various S&OP tasks should be distributed to the different departments which are best able to accomplish those tasks. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 05-03 Sales and Operation Planning Topic : Making S&OP Work Source : Chapter 05 Test Bank > TF Qu. 05-20 To insure that sales and operations...

Version 1

7) Collaborative planning, forecasting and replenishment (CPFR) involves joint planning of

forecasts between sales and marketing functions within a firm. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-05 Collaborative Planning, Forecasting and Replenishment Topic : Collaborative Planning, Forecasting and Replenishment Source : Chapter 05 Test Bank > TF Qu. 05-21 Collaborative planning, forecasting...

8) A responsive supply chain enables a company to be less affected by forecast errors than an

anticipatory supply chain. 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Source : Chapter 05 Test Bank > TF Qu. 05-22 A responsive supply chain enables...

Version 1

9) The promotional component is the most controllable element of a forecast. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Components Source : Chapter 05 Test Bank > TF Qu. 05-23 The promotional component is...

10) Use of statistical forecasting techniques removes the need for managerial judgment in

forecasting. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Techniques Source : Chapter 05 Test Bank > TF Qu. 05-24 Use of statistical forecasting...

Version 1

11) It is generally more difficult to provide an accurate forecast of SKU level demand than it is to

provide an accurate forecast of total demand. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Accuracy Source : Chapter 05 Test Bank > TF Qu. 05-25 It is generally more difficult to provide...

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 12) Visibility refers to the ability to determine the ________ and ________ of inventory and resources at any time. 12) ______ A) cost, price B) location, status C) type, quality D) ownership, age Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-01 Supply Chain Planning Topic : Supply Chain Visibility Source : Chapter 05 Test Bank > MC Qu. 05-01 Visibility refers to the ability...

Version 1

13) In sales and operations planning, operations generally prefers to offer customers ________

lead times while sales prefers to offer ________ lead times to customers. 13) ______ A) short, long B) long, short C) planned, unplanned D) customer, standard Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 05-03 Sales and Operation Planning Topic : S&OP Process Source : Chapter 05 Test Bank > MC Qu. 05-02 In sales and operations planning...

14) The monthly sales and operations planning (S&OP) process should begin with: 14) ______ A) developing and specifying the constraints related to manufacturing capabilities. B) determining the business planning vs financial objectives. C) looking at existing orders from major customers. D) gathering information from sales and marketing. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-03 Sales and Operation Planning Topic : S&OP Process Source : Chapter 05 Test Bank > MC Qu. 05-03 The monthly sales and operations...

Version 1

15) All of the following are benefits of sales and operations planning (S&OP) EXCEPT: 15) ______ A) the S&OP process eliminates the need to have finished goods inventory. B) the S&OP process results in better customer service. C) the S&OP process provides better visibility into future capacity problems. D) the S&OP process provides a single set of numbers to run the business. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 05-03 Sales and Operation Planning Topic : Making S&OP Work Source : Chapter 05 Test Bank > MC Qu. 05-04 All of the following are benefits...

16) Which of the following is NOT a key to making sales and operations planning (S&OP) work

in an organization? 16) ______ A) S&OP should be executed monthly B) S&OP should have a clear leader C) S&OP should focus 12-18 months into the future D) S&OP requires a commitment to high forecast accuracy Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 05-03 Sales and Operation Planning Topic : Making S&OP Work Source : Chapter 05 Test Bank > MC Qu. 05-05 Which of the following is NOT a...

Version 1

17) Working closely with customers (and suppliers) to improve forecasting by sharing

information is known as: 17) ______ A) Coordinated Forecasting of requirements. B) Joint planning of Demand Forecasts. C) Collaborative Planning, Forecasting, and Replenishment. D) Conjoint Analysis and Forecasting. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-05 Collaborative Planning, Forecasting and Replenishment Topic : Collaborative Planning, Forecasting and Replenishment Source : Chapter 05 Test Bank > MC Qu. 05-06 Working closely with customers...

18) If Dell computer is making a forecast for the next year, which of the following forecasts

would most likely have the largest forecast error (as measured by the mean absolute percentage error, MAPE)? 18) ______ A) Total number of computers (laptops and desktops) to be sold next year in US B) Total number of laptops to be sold next year in US C) Total number of desktop to be sold next year in US D) Total number of laptops with 8 Gigabytes RAM, 512 Gigabyte hard drive and the fastest graphics card to be sold next year in US Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Accuracy Source : Chapter 05 Test Bank > MC Qu. 05-07 If Dell computer is making a forecast...

Version 1

19) Because ________ typically requires the most detailed forecasts, it generally experiences the

________ forecast error. 19) ______ A) logistics, highest B) logistics, lowest C) finance, highest D) marketing, highest Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Requirements Source : Chapter 05 Test Bank > MC Qu. 05-10 Because ________blank typically requires...

20) Accurate forecasting is most critical; 20) ______ A) when lead times are long. B) when there are high economies of scale in manufacturing. C) when there are high economies of scale in transportation. D) All of the choices are correct. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Requirements Source : Chapter 05 Test Bank > MC Qu. 05-11 Accurate forecasting is most critical...

Version 1

21) The component of a forecast that is impossible to predict is ________ variation. 21) ______ A) cyclic. B) seasonal. C) promotional. D) irregular. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Components Source : Chapter 05 Test Bank > MC Qu. 05-12 The component of a forecast that...

22) Time series forecasts can be generated using each of the following techniques, EXCEPT: 22) ______ A) simulation. B) exponential smoothing. C) moving average. D) adaptive smoothing. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Techniques Source : Chapter 05 Test Bank > MC Qu. 05-13 Time series forecasts can be...

Version 1

23) A moving average forecast: 23) ______ A) is useful when only base and irregular demand components exist. B) is never useful. C) is useful when demand patterns repeat with cyclic, trend, or seasonal components. D) is useful when there is a strong relationship between demand and certain independent

variables. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Techniques Source : Chapter 05 Test Bank > MC Qu. 05-14 A moving average forecast:

SECTION BREAK. Answer all the part questions. 24) [The following information applies to the questions displayed below.] Period

Actual Demand

Forecast Demand

800

1100

-300

300

1100

900

200

1400

1200

200

Version 1

Error

Absolute Value

24.1)

What is the Mean Absolute Deviation (MAD)? 24.1)

______

24.2)

______

A) 233.33 B) 200 C) 166.67 D) 266.67 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Accuracy Source : Chapter 05 Test Bank > MC Qu. 05-08 What is the Mean Absolute Deviation...

24.2)

The Mean Absolute Percentage Error (MAPE) is approximately: A) 20.00% B) 21.21% C) 24.95% D) 27.50%

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : 05-06 Forecasting Topic : Forecasting Accuracy Source : Chapter 05 Test Bank > MC Qu. 05-09 The Mean Absolute Percentage Error...

Version 1

Answer Key Test name: Chapter 05 Test Bank 1) FALSE 2) FALSE 3) FALSE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) TRUE 9) TRUE 10) FALSE 11) TRUE 12) B 13) B 14) B 15) A 16) C 17) C 18) D 19) A 20) D 21) D 22) A 23) A 24) Section Break 24.1) A

MAD is the average of the absolute value of the error.

24.2)

Version 1

Period

Actual Demand

Forecast Demand

Error

Absolute Value

800

1100

-300

300

1100

900

200

1400

1200

200

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Supplier operational integration leads to lower costs because improved information flow allows waste reduction and mutual improvements. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-04 Procurement Strategy Topic : Alternative Procurement Strategies Source : Chapter 06 Test Bank > TF Qu. 06-17 Supplier operational integration leads to...

2) Good purchasing strategy is based on standardized set of procedures for dealing with every

supplier in a firm’s supply base. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 06-04 Procurement Strategy Topic : Procurement Strategy Portfolio Source : Chapter 06 Test Bank > TF Qu. 06-18 Good purchasing strategy is based...

Version 1

3) The most important objective in procurement strategy is to ensure that the lowest purchase

price is obtained from suppliers. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 06-04 Procurement Strategy Topic : Alternative Procurement Strategies Source : Chapter 06 Test Bank > TF Qu. 06-19 The most important objective in...

4) The supplier which offers the lowest purchase price often does not always have the lowest

total cost of ownership for the buying firm. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 06-03 Procurement Objectives Topic : Lowest Total Cost of Ownership Source : Chapter 06 Test Bank > TF Qu. 06-20 The supplier which offers the...

Version 1

5) A job shop manufacturing process can support a higher level of product variety than a line

flow process. 5) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-08 Manufacturing Processes Topic : Job Shop Process Source : Chapter 06 Test Bank > TF Qu. 06-21 A job shop manufacturing process...

6) The customer accommodation cycle for make-to-order (MTO) items is typically longer than

the cycle for assemble-to-order (ATO) items. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-10 Manufacturing Strategies Topic : Manufacturing Strategies Source : Chapter 06 Test Bank > TF Qu. 06-22 The customer accommodation cycle for...

Version 1

7) Assemble-to-order (ATO) strategies typically have higher inventory and warehousing costs

than make-to-plan (MTP) strategies. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 06-10 Manufacturing Strategies Topic : Manufacturing Strategies Source : Chapter 06 Test Bank > TF Qu. 06-23 Assemble-to-order (ATO) strategies typically have...

8) A six-sigma quality program suggests that the acceptable level of defects or failures is one-

half that of a traditional three sigma approach 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-13 Six Sigma Topic : Six Sigma Source : Chapter 06 Test Bank > TF Qu. 06-24 A six-sigma quality program suggests...

Version 1

9) Performance based logistics has been found to both improve quality as well as reduce cost

for the buying organization. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-06 Logistical Interfaces with Procurement Topic : Performance-Based Logistics Source : Chapter 06 Test Bank > TF Qu. 06-25 Performance based logistics has been...

10) Low-cost-country sourcing often requires particular care to protect intellectual property. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-05 Global Sourcing Topic : Challenges for Low-Cost-Country Sourcing Source : Chapter 06 Test Bank > TF Qu. 06-26 Low-cost-country sourcing often requires particular...

Version 1

11) Low-cost-country sourcing may lead to higher inventory levels due to long transit times. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-05 Global Sourcing Topic : Challenges for Low-Cost-Country Sourcing Source : Chapter 06 Test Bank > TF Qu. 06-27 Low-cost-country sourcing may lead to...

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 12) The need for intensive inspection of incoming shipments may be eliminated in which procurement strategy? 12) ______ A) Volume consolidation B) Supplier operational integration C) User buy D) Transaction management Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 06-04 Procurement Strategy Topic : Alternative Procurement Strategies Source : Chapter 06 Test Bank > MC Qu. 06-01 The need for intensive inspection...

Version 1

13) Generally speaking, procurement can have a greater impact on the net income of a company

than most other departments. This is due to the fact that: 13) ______ A) manufacturing relies on purchasing to identify high quality suppliers. B) suppliers want to reduce their prices to their customers. C) marketers don’t care about net income. D) purchased materials and supplies frequently represent the largest costs in a company. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 06-02 Procurement Importance Topic : Procurement Importance Source : Chapter 06 Test Bank > MC Qu. 06-02 Generally speaking, procurement can have...

14) A strategic focus on procurement encourages all of the following EXCEPT: 14) ______ A) focus on total cost of ownership. B) supply base reduction. C) focus on purchase price. D) win-win negotiation. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-04 Procurement Strategy Topic : Procurement Strategy Portfolio Source : Chapter 06 Test Bank > MC Qu. 06-03 A strategic focus on procurement...

Version 1

15) Supply base reduction (volume consolidation): 15) ______ A) has potential benefits for suppliers as well as for buyers. B) involves early supplier involvement in product design. C) puts the buyer at a negotiating disadvantage. D) has little potential for savings for buyers. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-04 Procurement Strategy Topic : Alternative Procurement Strategies Source : Chapter 06 Test Bank > MC Qu. 06-04 Supply base reduction (volume consolidation)...

16) Benefits of supply base reduction (volume consolidation) include all of the following

EXCEPT: 16) ______ A) lower levels of risk. B) increased leverage with suppliers due to increased volume. C) reduced costs of managing the supplier base. D) lower overall procurement costs. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-04 Procurement Strategy Topic : Alternative Procurement Strategies Source : Chapter 06 Test Bank > MC Qu. 06-05 Benefits of supply base reduction...

Version 1

17) In procurement, total cost of ownership includes all of the following except: 17) ______ A) field failures of purchased items. B) consideration of the impact of supplier quantity discounts C) cost of order placement D) in fact, total cost of ownership includes all of the above. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 06-03 Procurement Objectives Topic : Lowest Total Cost of Ownership Source : Chapter 06 Test Bank > MC Qu. 06-06 In procurement, Total Cost of...

18) A product is advertised as lasting twice as long as its competitor. Which dimension of quality

is being emphasized in the advertisement? 18) ______ A) Functionality B) Durability C) Performance D) Reliability Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-01 The Quality Imperative Topic : Dimensions of Product Quality Source : Chapter 06 Test Bank > MC Qu. 06-07 A product is advertised as...

Version 1

19) A potential buyer of a new car seems to be less interested in information concerning gas

mileage or warranties. Instead, they focus on the car’s ability to interface with a smart phone and satellite navigation systems. This buyer is mainly concerned with which aspect of quality? 19) ______ A) Conformance B) Aesthetics C) Features D) Durability Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-01 The Quality Imperative Topic : Dimensions of Product Quality Source : Chapter 06 Test Bank > MC Qu. 06-08 A potential buyer of a...

20) Purchasers of industrial equipment (for example, a forklift) are often very concerned with

how easily and quickly the machine can be repaired if (and when) a breakdown occurs. In this case, industrial purchasers are expressing an interest in the ________ dimension of quality. 20) ______ A) features B) reliability C) performance D) serviceability Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-01 The Quality Imperative Topic : Dimensions of Product Quality Source : Chapter 06 Test Bank > MC Qu. 06-09 Purchasers of industrial equipment (for...

Version 1

21) A manufacturer of consumer products, such as food, shaving cream, shampoo, etc. would be

likely to use which manufacturing approach? 21) ______ A) PTO (Procure-to-order) B) MTO (Make-to-order) C) ATO (Assemble-to-order) D) MTP (Make-to-plan) Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-10 Manufacturing Strategies Topic : Make-to-Plan Source : Chapter 06 Test Bank > MC Qu. 06-10 A manufacturer of consumer products,...

22) Which of the following approaches would usually result in the shortest customer experienced

lead time? 22) ______ A) MTO (Make-to-order) B) PTO (Procure-to-order) C) MTP (Make-to-plan) D) ATO (Assemble-to-order) Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-10 Manufacturing Strategies Topic : Manufacturing Strategies Source : Chapter 06 Test Bank > MC Qu. 06-11 Which of the following approaches...

Version 1

23) Which of the following process structures can produce the highest volume? 23) ______ A) Job shop B) Line flow C) Continuous process D) Batch process Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-08 Manufacturing Processes Topic : Continuous Process Source : Chapter 06 Test Bank > MC Qu. 06-12 Which of the following process...

24) In this manufacturing approach, numerous different end items are made by combining

standard components and subassemblies held in inventory into many different products. 24) ______ A) MTP (Make-to-Stock) B) ATO (Assemble-to-Order) C) ETO (Engineer-to-Order) D) JIT (Just-in-Time) Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 06-10 Manufacturing Strategies Topic : Assemble-to-Order Source : Chapter 06 Test Bank > MC Qu. 06-13 In this manufacturing approach, numerous...

Version 1

25) In an MTP (Make-to-Plan) system, customer orders are satisfied from? 25) ______ A) Raw material inventory B) Work in process inventory C) Finished goods inventory D) Supplier inventory Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-10 Manufacturing Strategies Topic : Make-to-Plan Source : Chapter 06 Test Bank > MC Qu. 06-14 In an MTP (Make-to-Plan) system,...

26) Customer experienced lead time with anassemble-to-order (ATO) company would be

________ than a make-to-plan (MTP) company and ________ than a make-to-order (MTO) company? 26) ______ A) shorter, shorter B) shorter, longer C) longer, shorter D) longer, longer Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : 06-10 Manufacturing Strategies Topic : Make-to-Order Source : Chapter 06 Test Bank > MC Qu. 06-15 Customer experienced lead time with...

Version 1

27) All of the following are advantages of low-cost-country sourcing EXCEPT which one? 27) ______ A) Intellectual property is easily protected B) Lower wage rates allow lower manufacturing costs C) A wider array of potential suppliers are available D) Access to new and better process technologies Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 06-10 Manufacturing Strategies Topic : Make-to-Plan Source : Chapter 06 Test Bank > MC Qu. 06-16 All of the following are...

Version 1

Answer Key Test name: Chapter 06 Test Bank 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) TRUE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) TRUE 11) TRUE 12) B 13) D 14) C 15) A 16) A 17) D 18) D 19) C 20) D 21) D 22) C 23) C 24) B 25) C 26) B 27) A

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Inventory management decisions are partially driven by the firm’s position in the supply chain. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-01 Inventory Functionality and Decisions Topic : Inventory Functionality and Decisions Source : Chapter 07 Test Bank > TF Qu. 07-24 Inventory management decisions are...

2) Inventory investment is one way to provide protection against uncertainty. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-01 Inventory Functionality and Decisions Topic : Inventory Functionality and Decisions Source : Chapter 07 Test Bank > TF Qu. 07-25 Inventory investment is one way...

Version 1

3) Two possible inventory strategies are meeting a desired service level or maximizing available

cash. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-01 Inventory Functionality and Decisions Topic : Inventory Functionality and Decisions Source : Chapter 07 Test Bank > TF Qu. 07-26 Two possible inventory strategies are...

4) Speculative inventory is purchased and held in stock to protect against demand uncertainty. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-01 Inventory Functionality and Decisions Topic : Inventory Definitions Source : Chapter 07 Test Bank > TF Qu. 07-27 Speculative inventory is purchased...

Version 1

5) Inventory planning involves determining the answer to two questions: 1) How much to

order? and 2) When to order? 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-03 Planning Inventory Topic : Planning Inventory Source : Chapter 07 Test Bank > TF Qu. 07-28 Inventory planning involves determining...

6) Desired service levels are usually the same for all of a firm’s products? 6) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 07-06 Inventory Management Practices Topic : Segment Strategy Definition Source : Chapter 07 Test Bank > TF Qu. 07-29 Desired service levels are usually...

Version 1

7) For purposes of product classification, high-volume, fast-moving products are typically

considered C items. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-06 Inventory Management Practices Topic : Product/Market Classification Source : Chapter 07 Test Bank > TF Qu. 07-30 For purposes of product classification,...

8) ABC analysis must divide products based upon profitability. 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-06 Inventory Management Practices Topic : Product/Market Classification Source : Chapter 07 Test Bank > TF Qu. 07-31 ABC analysis must divide products...

Version 1

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 9) A company places six orders per year with its supplier. Each order is for an amount exactly equal to the economic order quantity (EOQ). The company has calculated its order cost to be $40 per order. Since the company carriers no safety stock, what is the annual inventory carrying cost for this company? 9) ______ A) Cannot be determined without further information B) $40 C) $240 D) $480 Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 07-03 Planning Inventory Topic : How Much to Order Source : Chapter 07 Test Bank > MC Qu. 07-01 A company places 6 orders per...

Version 1

10) You have calculated the economic order quantity (EOQ) for an item to be 500 units per

order. In the past, you were placing orders for 1,000 units at a time for this particular item. Which of the following statements is true? 10) ______ A) The old policy had higher annual inventory carrying costs than ordering the EOQ quantity B) The old policy had lower annual inventory carrying costs than ordering the EOQ quantity C) The old policy had lower annual ordering costs than ordering the EOQ quantity D) Changes in ordering and carrying costs cannot be determined. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 07-03 Planning Inventory Topic : How Much to Order Source : Chapter 07 Test Bank > MC Qu. 07-02 You have calculated the economic...

11) For which of the following reasons would a firm carry safety stock? 11) ______ A) To allow less expensive purchases by buying more B) To allow for transportation time C) To provide protection against the uncertainties of supply and demand D) To lower ordering costs by ordering less frequently Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-04 Managing Uncertainty Topic : Safety Stock with Combined Uncertainty Source : Chapter 07 Test Bank > MC Qu. 07-03 For which of the following reasons...

Version 1

12) Which of the following IS NOT an example of carrying costs? 12) ______ A) Cost of obsolescence and loss B) Taxes C) Insurance D) All of the above are carrying costs Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-02 Inventory Carrying Cost Topic : Inventory Carrying Cost Source : Chapter 07 Test Bank > MC Qu. 07-04 Which of the following IS NOT...

13) Suppose demand is 50 units a month and average inventory is 40 units and unit cost is $20.

What are the annual inventory turns? 13) ______ A) 10 B) 15 C) 20 D) 5 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 07-01 Inventory Functionality and Decisions Topic : Inventory Definitions Source : Chapter 07 Test Bank > MC Qu. 07-05 Suppose demand is 50 units a month...

Version 1

14) What happens to the EOQ when the unit cost decreases (assuming all other variables remain

the same)? 14) ______ A) EOQ increases B) EOQ decreases C) EOQ remains the same D) None of the choices are correct (need more information) Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 07-03 Planning Inventory Topic : How Much to Order Source : Chapter 07 Test Bank > MC Qu. 07-06 What happens to the EOQ when...

15) When calculating a Reorder Point (ROP), which of the following factors WOULD NOT

affect the calculation? 15) ______ A) Item's economic order quantity (EOQ) B) Delivery lead time. C) Demand during the delivery lead time. D) Standard deviation of demand during delivery lead time. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-05 Inventory Management Policies Topic : Inventory Control Source : Chapter 07 Test Bank > MC Qu. 07-15 When calculating a Reorder Point...

Version 1

16) A batch of Raisin Bran that has been made at Kellogg's, but not yet packaged in its final

cereal box would be an example of ________ inventory. 16) ______ A) raw material B) work-in-process C) finished goods D) maintenance, repair and operating supplies (MRO) Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-05 Inventory Management Policies Topic : Planning Methods Source : Chapter 07 Test Bank > MC Qu. 07-16 A batch of Raisin Bran that has been...

17) A company recently lowered its service performance from 98% product availability to 96%

product availability. The change saved the company exactly $1million per year in inventory carrying cost. Senior management now wants to lower the service level to 94% from 96%. Such a further change is likely to save: 17) ______ A) less than $1million. B) about another $1million. C) more than $1million. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 07-04 Managing Uncertainty Topic : Demand Uncertainty Source : Chapter 07 Test Bank > MC Qu. 07-19 A company recently lowered its...

Version 1

SECTION BREAK. Answer all the part questions. 18) Rajesh Indian Market (RIM) is open 12 months out of the year. At RIM, the demand for rice is very consistent 500 pounds per month. RIM orders the rice from a distributor in India at an ordering cost of $40 per order. Rice costs $7 per pound, and annual carrying charge is 25%. Answer question 7-11 based on this information. 18.1)

The EOQ is? Note: Round up to the nearest whole number. 18.1)

______

18.2)

______

A) 524 pounds B) 464 pounds C) 566 pounds D) 725 pounds Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 07-03 Planning Inventory Topic : How Much to Order Source : Chapter 07 Test Bank > MC Qu. 07-07 The EOQ is...

18.2)

How many orders will RIM place in a year? Note: Round up to the nearest whole number. A) 8 orders B) 10 orders C) 12 orders D) 14 orders

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 07-03 Planning Inventory Topic : How Much to Order Source : Chapter 07 Test Bank > MC Qu. 07-08 How many orders will RIM...

Version 1

18.3)

What is the average inventory? Note: Round up to the nearest whole number. 18.3)

______

18.4)

______

A) 1,000 units B) 262 units C) 248 units D) 319 units Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 07-03 Planning Inventory Topic : How Much to Order Source : Chapter 07 Test Bank > MC Qu. 07-09 What is the average inventory...

18.4)

What is the inventory turnover? A) 22.91 times B) 12.15 times C) 10.49 times D) 24.58 times

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 07-01 Inventory Functionality and Decisions Topic : Inventory Definitions Source : Chapter 07 Test Bank > MC Qu. 07-10 What is the inventory turnover...

Version 1

18.5)

What is the annual ordering cost (based on the rounded up number of orders)? 18.5)

______

A) $360 B) $420 C) $480 D) $560 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 07-03 Planning Inventory Topic : How Much to Order Source : Chapter 07 Test Bank > MC Qu. 07-11 What is the annual ordering cost...

19) Cooper Company has average demand of 75 units per day. Lead time from the supplier

averages 10 days. The combined standard deviation of demand during lead time is 25 units. The item costs $55 and inventory carrying cost is 28%. Answers to the next two questions are based on this information. 1 standard deviation covers 84.13% 1.04 standard deviations covers 85% 1.28 standard deviations covers 90% 1.65 standard deviations covers 95% 1.96 standard deviations covers 97.5% 2 standard deviations covers 97.72% 2.33 standard deviations covers 99% 3 standard deviations covers 99.86% 6 standard deviations covers 99.99966%

Version 1

19.1)

Suppose management decides it wants to offer a 97.5% service level. That is, Cooper Company is willing to experience a stock-out probability of 2.5% during the order cycle. How much safety stock should be carried? 19.1) ______ A) 33 units B) 35 units C) 46 units D) 25 units

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 07-04 Managing Uncertainty Topic : Demand Uncertainty Source : Chapter 07 Test Bank > MC Qu. 07-12 Suppose management decides it wants...

19.2)

How much is the annual inventory carrying cost of the safety stock using a 97.5% service level? Round your answer to the nearest integer value. 19.2)

______

A) $755 B) $610 C) $594 D) $351 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Analyze Difficulty : 3 Hard Gradable : automatic Learning Objective : 07-03 Planning Uncertainty Topic : How Much to Order Source : Chapter 07 Test Bank > MC Qu. 07-13 How much is the annual inventory...

Version 1

19.3)

Suppose you tell management at Cooper Company it should raise safety stock to the six sigma level. Compared to a 97.5% service level, Cooper Company will incur an additional inventory carrying cost of approximately how much? 19.3) ______ A) $2,160 B) $234 C) cannot be determined D) $1,556

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Evaluate Difficulty : 3 Hard Gradable : automatic Learning Objective : 07-04 Managing Uncertainty Topic : Managing Uncertainty Source : Chapter 07 Test Bank > MC Qu. 07-14 Suppose you tell management at Cooper...

20) RAJ Company and LEE Company each annually order the exact same amount of an item

from the same supplier. (They each have the exact same annual demand from their customers for this item and the lead time from the supplier is the same for both companies). There is no variation at all for either company in either daily demand or lead time from the supplier. They pay the exact same price to the supplier for the item and both pay the same cost per order. However, RAJ has determined its annual inventory carrying cost is 20%, whereas LEE estimates their’s is 30%.

Version 1

20.1)

Which of the following is true? 20.1)

______

A) RAJ's EOQ is higher than Lee’s EOQ B) LEE’s EOQ is higher than RAJ’s EOQ C) BOTH have the same EOQ Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 07-03 Planning Inventory Topic : How Much to Order Source : Chapter 07 Test Bank > MC Qu. 07-17 Which of the following is true...

20.2)

Given the information above about RAJ and LEE, which of the following is true? 20.2)

______

A) Both will have the same annual ordering cost B) Both will have the same reorder point C) Both will have the same inventory turnover D) All of the above are true Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-05 Inventory Management Policies Topic : Inventory Control Source : Chapter 07 Test Bank > MC Qu. 07-18 Given the information above about...

21) RajDee Furniture Company (RFC) buys and sells office furniture. The company buys chairs

from a manufacturer for $50 per unit. Order costs are $100 per order and there is a lead time of 15 days for each order to arrive from the manufacturer to RFC warehouse. Inventory carrying cost for RFC is 20%. Average yearly demand for the chairs is 60,000 units. Answer the following questions, assuming there is no uncertainty at all about the demand or the lead time.

Version 1

21.1)

How many units should RFC order each time? 21.1)

______

A) 1,204 B) 1,096 C) 992 D) 548 Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 07-03 Planning Inventory Topic : How Much to Order Source : Chapter 07 Test Bank > MC Qu. 07-20 How many units should...

21.2)

What would average inventory be if RFC orders the economic order quantity (EOQ) every time? 21.2) ______ A) 1,204 B) 1,096 C) 992 D) 548

Version 1

21.3)

If average lead time went down from 15 to 10 days, what will happen to EOQ? 21.3)

______

21.4)

______

A) Increase of 200 units B) Decrease of 200 units. C) No change in EOQ D) Increase of 100 units Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 07-03 Planning Inventory Topic : How Much to Order Source : Chapter 07 Test Bank > MC Qu. 07-22 If average lead time went down...

21.4)

Which of the following is not included in the cost of carrying inventory? A) Heating and lighting a warehouse B) Inventory obsolescence C) Material handling D) Cost of inspecting incoming shipments

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 07-02 Inventory Carrying Cost Topic : Inventory Carrying Cost Source : Chapter 07 Test Bank > MC Qu. 07-23 Which of the following is not...

Version 1

Answer Key Test name: Chapter 07 Test Bank 1) 2) 3) 4) 5) 6) 7) 8) 9)

TRUE TRUE TRUE FALSE TRUE FALSE FALSE FALSE D At the EOQ, ordering and carrying costs are equal. Since ordering costs are $240 per year ($40 per order times 6 orders per year) the carrying costs must be the same −$240. 10) A

Ordering more than the EOQ results in a higher carrying cost but higher annual ordering costs, as shown in Figure 7.4.

11) C 12) D 13) B

14) A

Version 1

When unit cost (U) decreases, the EOQ will increase. 15) A

The reorder point is a function of daily demand, performance cycle length (lead time) and safety stock (which is a function of standard deviation of demand). 16) B 17) A

Because of the nature of the normal distribution, a change from 98% to 96% decreases inventory by a greater amount than a change from 96% to 94%. 18) Section Break 18.1) A

18.2)

C

which rounds up to 12 orders per year. 18.3)

B

18.4)

A

18.5)

Version 1

Over one year, the firm will place 12 orders which rounds up to 12. Each order has a cost of $40 so the annual cost of orders is 12 × $40 = $480. 19) Section Break 19.1) A

A 97.5% service level requires carrying 1.96 standard deviations of safety stock. The standard deviation during the lead time is 25 units, so Cooper Company should carry 49 units (1.96 × 25) of safety stock. 19.2)

A A 97.5% service level requires carrying 1.96 standard deviations of safety stock. The standard deviation during the lead time is 25 units, so Cooper Company should carry 49 units (1.96 × 25) of safety stock. The carrying cost of this safety stock is

19.3)

D For the 97.5% service level, the safety stock is 49 units (25 × 1.96). The carrying cost of this safety stock is The six sigma level requires six standard deviations of safety stock (20 × 6 = 120 units). The carrying cost of this safety stock is Compared to the 97.5% level of safety stock (49 units), this is a difference of $1,555.40 ($2,310 − $754.60). 20) Section Break 20.1) A

Since the inventory carrying cost ( ) is lower for RAJ than for LEE, LEE will have a lower EOQ. 20.2)

B These factors are the same for both firms, so the ROP will be the same. 21) Section Break

Version 1

21.1)

21.2)

D

21.3)

Since this does not depend upon lead time, the change in lead time will not affect the EOQ. 21.4)

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) The transportation mode with the slowest point-to-point transit time is rail. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Modal Comparative Characteristics and Capabilities Source : Chapter 08 Test Bank > TF Qu. 08-18 The transportation mode with the...

2) The transportation mode with the best combination of overall operating characteristics is

truck. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Modal Comparative Characteristics and Capabilities Source : Chapter 08 Test Bank > TF Qu. 08-19 The transportation mode with the...

Version 1

3) For the highest level of dependability, a firm should choose pipeline transportation. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Modal Comparative Characteristics and Capabilities Source : Chapter 08 Test Bank > TF Qu. 08-20 For the highest level of...

4) One factor that led to the development of package services was deregulation, which allowed

carriers to operate multiple modes of transportation. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-04 Specialized Transportation Services Topic : Parcel Service Source : Chapter 08 Test Bank > TF Qu. 08-21 One factor that led to...

Version 1

5) One example of intermodal transportation would be transferring a shipping container from a

container ship to a rail car. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-04 Specialized Transportation Services Topic : Intermodal Source : Chapter 08 Test Bank > TF Qu. 08-22 One example of intermodal transportation...

6) One area where air transportation offers a significant advantage is cost. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Air Source : Chapter 08 Test Bank > TF Qu. 08-23 One area where air transportation...

Version 1

7) Deregulation removed restrictions on asset ownership, but retained the government

restriction on rate discounts for particular customers. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-02 From Regulation to a Free Market System Topic : From Regulation to a Free Market System Source : Chapter 08 Test Bank > TF Qu. 08-24 Deregulation removed restrictions on asset...

8) Water transport has the highest fixed cost 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Water Source : Chapter 08 Test Bank > TF Qu. 08-25 Water transport has the highest...

Version 1

9) Pipeline transportation is limited to products in a liquid form. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Pipeline Source : Chapter 08 Test Bank > TF Qu. 08-26 Pipeline transportation is limited to...

10) Truck transportation is superior to rail transportation when considering capability. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Modal Comparative Characteristics and Capabilities Source : Chapter 08 Test Bank > TF Qu. 08-27 Truck transportation is superior to...

Version 1

11) Air transport is characterized by low fixed and high variable cost 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Air Source : Chapter 08 Test Bank > TF Qu. 08-28 Air transport is characterized by...

12) Since 1950, available railroad track mileage in the U.S. has declined. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Rail Source : Chapter 08 Test Bank > TF Qu. 08-29 Since 1950, available railroad track...

Version 1

13) FOB destination rates protect the consignee from responsibility for freight damage. 13) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-08 Product Pricing and Transportation Topic : FOB Pricing Source : Chapter 08 Test Bank > TF Qu. 08-30 FOB destination rates protect the...

14) The significant difference between a class rate and a commodity rate is the type of freight

being shipped. 14) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-05 Transportation Economics and Pricing Topic : Pricing Freight Source : Chapter 08 Test Bank > TF Qu. 08-31 The significant difference between a...

Version 1

15) A minimum charge represents the lowest cost per hundred-weight a carrier offers. 15) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-05 Transportation Economics and Pricing Topic : Other Pricing Factors Topic : Pricing Freight Source : Chapter 08 Test Bank > TF Qu. 08-32 A minimum charge represents the...

16) When two or more carriers cooperate to perform a specific transportation movement a joint

rate may be applicable. 16) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-05 Transportation Economics and Pricing Topic : Other Pricing Factors Source : Chapter 08 Test Bank > TF Qu. 08-33 When two or more carriers cooperate...

Version 1

17) A railroad may impose a penalty known as demurrage when a railcar is not promptly

unloaded. 17) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-01 Transport Functionality and Participants Topic : Functionality Source : Chapter 08 Test Bank > TF Qu. 08-34 A railroad may impose a...

18) When shippers provide Advanced Shipment Notification (ASN), their objective is to collect

freight bills faster. 18) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-06 Transportation Operations Management Topic : Transportation Management Systems Source : Chapter 08 Test Bank > TF Qu. 08-35 When shippers provide Advanced Shipment...

Version 1

19) The legislation that determines how many hours a locomotive operator can work is called

Hours of Service (HOS). 19) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-02 From Regulation to a Free Market System Topic : From Regulation to a Free Market System Source : Chapter 08 Test Bank > TF Qu. 08-36 The legislation that determines how...

20) A pickup allowance is equivalent to FOB origin pricing. 20) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-08 Product Pricing and Transportation Topic : Pickup Allowances Source : Chapter 08 Test Bank > TF Qu. 08-37 A pickup allowance is equivalent...

Version 1

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 21) Which of the following comparison of transportation mode characteristics is incorrect? 21) ______ A) Speed: air is best; water is worst B) Availability: motor is best; pipeline is worst C) Capability: water is best; pipeline is worst D) Dependability: pipeline is best; air is worst Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Modal Comparative Characteristics and Capabilities Source : Chapter 08 Test Bank > MC Qu. 08-01 Which of the following comparison...

22) For products that are not gaseous, liquid, or slurry, the lowest cost transportation mode is

usually: 22) ______ A) air. B) water. C) truck. D) rail. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Modal Comparative Characteristics and Capabilities Source : Chapter 08 Test Bank > MC Qu. 08-02 For products that are not...

Version 1

23) If a transportation vehicle has completed a delivery and is returned empty, the situation is

called a: 23) ______ A) backhaul. B) multi-modal. C) freight absorption. D) deadhead. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-05 Transportation Economics and Pricing Topic : Other Pricing Factors Source : Chapter 08 Test Bank > MC Qu. 08-03 If a transportation vehicle has...

24) Among the following choices, which is typically the least expensive transportation mode: 24) ______ A) air. B) water. C) truck. D) rail. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Modal Comparative Characteristics and Capabilities Source : Chapter 08 Test Bank > MC Qu. 08-04 Among the following choices, which...

Version 1

25) Why is truck transportation appealing to many shippers? 25) ______ A) Trucks offer the lowest cost of transporting products B) Trucks offer a good compromise of cost, dependability, availability and frequency C) Trucks are particularly strong in the capability dimension D) Trucks have a low variable cost of operating Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Modal Comparative Characteristics and Capabilities Source : Chapter 08 Test Bank > MC Qu. 08-05 Why is truck transportation...

26) Why does the tapering principle occur? 26) ______ A) Break-bulk facilities often have low operating costs B) Most firms have multiple consolidation facilities C) Freight costs increase more and more slowly as distance increases D) High-density products are less expensive to ship than low-density products Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-05 Transportation Economics and Pricing Topic : Economy of Distance Source : Chapter 08 Test Bank > MC Qu. 08-06 Why does the tapering...

Version 1

27) Since 1995 the use of intermodal transportation has: 27) ______ A) remained about the same. B) increase significantly. C) decreased. D) increased slightly. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-04 Specialized Transportation Services Topic : Intermodal Source : Chapter 08 Test Bank > MC Qu. 08-07 Since 1995 the use of...

28) In the U.S., the transportation mode that moves the highest annual tonnage is: 28) ______ A) Truck B) Rail C) Air D) Water Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-03 Transportation Modal Structure Topic : Modal Comparative Characteristics and Capabilities Source : Chapter 08 Test Bank > MC Qu. 08-08 In the U.S., the transportation...

Version 1

29) An agent who doesn’t directly own transportation assets, but focuses on bringing carriers and

shippers together is known as what? 29) ______ A) Bonded Warehouse B) UPS C) Freight Forwarder D) None of the choices are correct Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-06 Transportation Operations Management Topic : Nonoperating Intermediaries Source : Chapter 08 Test Bank > MC Qu. 08-09 An agent who doesn&#8217;t directly...

30) The bill of lading lists all of the following information EXCEPT for which of the following? 30) ______ A) Carrier liability terms B) Responsibility conditions for possible causes of loss or damage C) The recipient of the shipment D) The planned delivery stops for a vehicle with multiple delivery destinations Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 08-07 Documentation Topic : Bill of Lading Source : Chapter 08 Test Bank > MC Qu. 08-10 The bill of lading lists...

Version 1

31) Jones Company decided it would only deliver to each geographic market it serves once each

week. This strategy is called: 31) ______ A) market area consolidation. B) scheduled delivery consolidation. C) pooled delivery. D) phantom freight. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-06 Transportation Operations Management Topic : Consolidation Source : Chapter 08 Test Bank > MC Qu. 08-11 Jones Company decided it would...

32) The ________ lists the costs of shipping household goods for a wide variety of origins and

destinations. 32) ______ A) tariff B) uniform freight classification C) bill of lading D) FOB content description Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-05 Transportation Economics and Pricing Topic : Pricing Freight Source : Chapter 08 Test Bank > MC Qu. 08-12 The ______ lists the costs...

Version 1

33) Transportation costs for a product depend upon which of the following characteristics? 33) ______ A) The product's market share. B) The shipment weight C) The product's technical complexity D) All of the choices are correct Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-05 Transportation Economics and Pricing Topic : Economy of Density Source : Chapter 08 Test Bank > MC Qu. 08-13 Transportation costs for a product...

34) The simplest way to quote a shipping price is to use: 34) ______ A) FOB destination. B) FOB origin. C) delivered pricing. D) single zone pricing. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-08 Product Pricing and Transportation Topic : FOB Pricing Source : Chapter 08 Test Bank > MC Qu. 08-14 The simplest way to quote...

Version 1

35) If a consignee is unable to unload a vehicle in a timely manner, the carrier may require

payment of ________ fees. 35) ______ A) cabotage B) demurrage C) storage D) stoppage Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-01 Transport Functionality and Participants Topic : Functionality Source : Chapter 08 Test Bank > MC Qu. 08-15 If a consignee is unable...

36) When a third party firm coordinates deliveries from multiple suppliers to a single customer,

the process is known as: 36) ______ A) market area consolidation. B) scheduled delivery consolidation. C) pooled delivery consolidation. D) a phantom freight program. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-06 Transportation Operations Management Topic : Consolidation Source : Chapter 08 Test Bank > MC Qu. 08-16 When a third party firm...

Version 1

37) When items of different types and freight classes are combined onto a single shipment, it

may be advantageous to consider which of the following? 37) ______ A) Commodity Rates B) Less-than-truckload Rates C) Volume Rates D) FAK Rates Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 08-05 Transportation Economics and Pricing Topic : Pricing Freight Source : Chapter 08 Test Bank > MC Qu. 08-17 When items of different types...

Version 1

Answer Key Test name: Chapter 08 Test Bank 1) FALSE 2) TRUE 3) TRUE 4) TRUE 5) TRUE 6) FALSE 7) FALSE 8) FALSE 9) FALSE 10) FALSE 11) TRUE 12) TRUE 13) TRUE 14) FALSE 15) FALSE 16) TRUE 17) TRUE 18) FALSE 19) FALSE 20) TRUE 21) A 22) B 23) D 24) B 25) B 26) C 27) B 28) A 29) C 30) D 31) A 32) A 33) B 34) B 35) B 36) C 37) D

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Cross docked products are generally held in storage for several days or more before being shipped out of a warehouse. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application AACSB : Reflective Thinking Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Economic Benefits Source : Chapter 09 Test Bank > TF Qu. 09-12 Cross-docked products are generally held...

2) In a pick-to-light system, employees select items for a particular carton from locations which

use lights to indicate the quantity of each item to place in the carton. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-07 Systems Topic : Information-Directed Systems Source : Chapter 09 Test Bank > TF Qu. 09-13 In a pick-to-light system, employees...

Version 1

3) In a modern distribution center means products are never placed in storage. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Strategic Warehousing Source : Chapter 09 Test Bank > TF Qu. 09-14 In a modern distribution center...

4) In warehousing, cross docking is a form of sorting. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Economic Benefits Source : Chapter 09 Test Bank > TF Qu. 09-15 In warehousing, cross-docking is a...

Version 1

5) Consolidation is a form of sorting. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Economic Benefits Source : Chapter 09 Test Bank > TF Qu. 09-16 Consolidation is a form of...

6) Assembly is commonly used to support manufacturing operations.. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Economic Benefits Source : Chapter 09 Test Bank > TF Qu. 09-17 Assembly is commonly used to...

Version 1

7) Remanufacturing is a major part of reverse logistics. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Economic Benefits Source : Chapter 09 Test Bank > TF Qu. 09-18 Remanufacturing is a major part...

8) Value Added Services (VAS) are seldom performed by Integrated Service Providers (ISP). 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Service Benefits Source : Chapter 09 Test Bank > TF Qu. 09-19 Value Added Services (VAS) are...

Version 1

9) Order assembly is important to manufacturers but not to retailers. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-05 Primary Warehouse Operations Topic : Product Handling Source : Chapter 09 Test Bank > TF Qu. 09-20 Order assembly is important to...

10) When a firm locates a temporary inventory in a specific location it is called spot-stocking 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Service Benefits Source : Chapter 09 Test Bank > TF Qu. 09-21 When a firm locates a...

Version 1

11) A slot is the location in a warehouse where a fork truck is stored. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-03 Warehouse Decisions Topic : Design Source : Chapter 09 Test Bank > TF Qu. 09-22 A slot is the location...

12) Public warehouses are owned, operated and utilized by a specific firm. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-02 Warehouse Ownership Arrangements Topic : Private Source : Chapter 09 Test Bank > TF Qu. 09-23 Public warehouses are owned, operated...

Version 1

13) The best approach to developing a distribution warehouse is to locate an available building

and then design a material handling system that will work in that structure. 13) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 09-03 Warehouse Decisions Topic : Site Selection Source : Chapter 09 Test Bank > TF Qu. 09-24 The best approach to developing...

14) Wave selection means that multiple orders are being picked simultaneously 14) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-07 Systems Topic : Warehouse Management Systems Source : Chapter 09 Test Bank > TF Qu. 09-25 Wave selection means that multiple...

Version 1

15) Pallets and slip-sheets basically perform the same functionality in a material handling

system. 15) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-09 Packaging for Handling Efficiency Topic : Unitization Source : Chapter 09 Test Bank > TF Qu. 09-26 Pallets and slip-sheets basically perform...

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 16) When performing consolidation, a warehouse is used to group ________ inbound shipments into ________ outbound shipments. 16) ______ A) many small, few large B) few large, many small C) single small, many large D) many small, many large Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Economic Benefits Source : Chapter 09 Test Bank > MC Qu. 09-01 When performing consolidation, a warehouse...

Version 1

17) A company with limited experience in warehousing and a need to establish temporary

warehouse facilities in multiple geographical locations would most likely use: 17) ______ A) private warehouses. B) public warehouses. C) contract warehouses. D) common warehouses. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 09-02 Warehouse Ownership Arrangements Topic : Public Source : Chapter 09 Test Bank > MC Qu. 09-02 A company with limited experience...

18) In a cross-docking warehouse, inventory received from suppliers: 18) ______ A) is held in stock until required by stores. B) is not held in stock but instead moves directly from receiving to shipping. C) is unpacked and processed to perform value-added services. D) is used directly in production processes. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-05 Primary Warehouse Operations Topic : Storage Source : Chapter 09 Test Bank > MC Qu. 09-03 In a cross-docking warehouse, inventory...

Version 1

19) Warehousing offers four economic benefits, including consolidation, seasonal storage,

________ and reverse logistics. 19) ______ A) handling B) receiving C) sorting D) shipping Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Economic Benefits Source : Chapter 09 Test Bank > MC Qu. 09-04 Warehousing offers four economic benefits,...

20) A firm that supports an automotive assembly plant by providing just-in time inventory is

engaged in: 20) ______ A) cross docking. B) order assembly. C) mixing. D) sequencing. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 09-05 Primary Warehouse Operations Topic : Product Handling Source : Chapter 09 Test Bank > MC Qu. 09-05 A firm that supports an...

Version 1

21) 'Spot-stocking' of inventory is the practice of what? 21) ______ A) Moving inventory to less expensive storage locations B) Identifying the location where inventory is to be stored C) Marking inventory for ease of identification D) Placing inventory in a local warehouse in anticipation of future need in that local

market Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Service Benefits Source : Chapter 09 Test Bank > MC Qu. 09-06 &#39;Spot-stocking&#39; of inventory is the...

22) A customer has requested that the Jones firm perform product labelling in their distribution

warehouse. Jones firm is doing what? 22) ______ A) performing custom distribution. B) performing selective marketing. C) performing value added services. D) all of the other options are correct. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 09-01 Strategic Warehousing Topic : Service Benefits Source : Chapter 09 Test Bank > MC Qu. 09-07 A customer has requested that...

Version 1

23) When a firm holds inventory for a longer time than usual (for example, after purchasing large

quantities of inventory due to a quantity discount), the process is known as: 23) ______ A) extended storage. B) spot-stocking. C) value-added storage. D) active storage. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-05 Primary Warehouse Operations Topic : Storage Source : Chapter 09 Test Bank > MC Qu. 09-08 When a firm holds inventory...

24) In a warehouse, 'slotting' refers to what? 24) ______ A) Positioning products for value-added services B) Assigning products to a specific warehouse location C) Placing products in a pick line location D) Identifying the storage locations within the warehouse. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-03 Warehouse Decisions Topic : Design Source : Chapter 09 Test Bank > MC Qu. 09-09 In a warehouse, "slotting&#39; refers...

Version 1

25) When all the products for a specific customer order are picked simultaneously throughout the

warehouse, the method being employed is called: 25) ______ A) combination discrete selection. B) combined selection. C) discrete selection. D) wave selection. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 09-07 Systems Topic : Warehouse Management Systems Source : Chapter 09 Test Bank > MC Qu. 09-10 Whenall the products for a...

26) The use of a Warehouse Management System(WMS) to assign fork trucks to a continuous

series of tasks is known as: 26) ______ A) simultaneous routing. B) variable routing. C) directed routing. D) task interleaving. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 09-07 Systems Topic : Warehouse Management Systems Source : Chapter 09 Test Bank > MC Qu. 09-11 The use of a Warehouse...

Version 1

Answer Key Test name: Chapter 09 Test Bank 1) FALSE 2) TRUE 3) FALSE 4) TRUE 5) TRUE 6) TRUE 7) TRUE 8) FALSE 9) FALSE 10) TRUE 11) FALSE 12) FALSE 13) FALSE 14) TRUE 15) TRUE 16) A 17) B 18) B 19) C 20) D 21) D 22) C 23) A 24) B 25) D 26) D

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Firms may seek global manufacturing partners to access advanced technological equipment or expertise not available in their home country. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 10-01 Global Economies Topic : Global Economies Source : Chapter 10 Test Bank > TF Qu. 10-12 Firms may seek global manufacturing...

2) Trade agreements are usually designed to impose increased tariffs on imports and exports. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 10-01 Global Economies Topic : Trade Agreements Source : Chapter 10 Test Bank > TF Qu. 10-13 Trade agreements are usually designed...

Version 1

3) Through out the world, logistics costs and challenges are remarkably similar in each region. 3) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 10-02 Global Supply Chain Integration Topic : Logistics in a Global Economy Source : Chapter 10 Test Bank > TF Qu. 10-14 Throughout the world, logistics costs...

4) There are four main supply chain globalization strategies. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 10-02 Global Supply Chain Integration Topic : Globalization Strategies Source : Chapter 10 Test Bank > TF Qu. 10-15 There are four main supply...

Version 1

5) The transnational supply chain globalization strategy has a low level of local customization. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 10-02 Global Supply Chain Integration Topic : Globalization Strategies Source : Chapter 10 Test Bank > TF Qu. 10-16 The transnational supply chain globalization...

6) Since the 1980s, many countries have privatized transportation assets such as trucks and rail

systems. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 10-02 Global Supply Chain Integration Topic : Managing the Global Supply Chain Source : Chapter 10 Test Bank > TF Qu. 10-17 Since the 1980s, many countries...

Version 1

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 7) Firms are globalizing their operations today for all of the following reasons except which of the following? 7) ______ A) Take advantage of lower labor rates B) Obtain reductions in value-added taxes C) Source product from locations that involve less transportation uncertainty D) Simplify product variations Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 10-01 Global Economies Topic : Global Economies Source : Chapter 10 Test Bank > MC Qu. 10-01 Firms are globalizing their operations...

8) Jones Company has more manufacturing capacity than is needed for their domestic

customers. By entering into a joint venture in another country, Jones Company hopes to increase overall sales. Jones Company is globalizing for which of the following reasons? 8) ______ A) Take advantage of lower labor rates B) Achieve economies of scale C) Reduce global tax liability D) Enhance sustainability Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 10-01 Global Economies Topic : Global Economies Source : Chapter 10 Test Bank > MC Qu. 10-02 Jones Company has more manufacturing...

Version 1

9) Jones Company has located a supplier in another country who offers to produce their

products at a lower cost than the current, domestic supplier.By moving production overseas, Jones Company is globalizing for which of the following reasons? 9) ______ A) Take advantage of lower labor rates B) Achieve economies of scale C) Reduce global tax liability D) Enhance sustainability Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 10-01 Global Economies Topic : Global Economies Source : Chapter 10 Test Bank > MC Qu. 10-03 Jones Company has located a...

10) Trade agreements between adjacent countries can reduce operating costs in which of the

following ways? 10) ______ A) Increased economies of scale B) Reduced border inefficiencies C) Lowering or eliminating tariffs D) All of these Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 10-01 Global Economies Topic : Trade Agreements Source : Chapter 10 Test Bank > MC Qu. 10-04 Trade agreements between adjacent countries...

Version 1

11) Globalized supply chains often experience extended performance cycle times for all of the

following reasons EXCEPT: 11) ______ A) longer production run times. B) longer transit times. C) delays for customs inspections. D) financing requirements. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 10-02 Global Supply Chain Integration Topic : Logistics in a Global Economy Source : Chapter 10 Test Bank > MC Qu. 10-05 Globalized supply chains often experience...

12) Existence of Cabotage laws are often enacted and maintained for which of the following

reasons? 12) ______ A) reduce transportation uncertainty B) reduce transportation cost C) protect domestic shipping capacity D) protect domestic infrastructure Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 10-02 Global Supply Chain Integration Topic : Managing the Global Supply Chain Source : Chapter 10 Test Bank > MC Qu. 10-06 Existence of Cabotage laws are...

Version 1

13) All of the following are examples of international logistics documentation EXCEPT which

one? 13) ______ A) Export irrevocable commercial letter of credit B) Certificate of origin C) Commercial invoice D) Shipping invoice Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 10-02 Global Supply Chain Integration Topic : Managing the Global Supply Chain Source : Chapter 10 Test Bank > MC Qu. 10-07 All of the following are...

14) Ad-valorem payments are tax and duty payments made to the government based up on which

of the following? 14) ______ A) The intended usage of the product B) The import season C) The value of the product D) Hazardous materials content Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 10-03 Global Compliance Topic : Customs and Border Protection Source : Chapter 10 Test Bank > MC Qu. 10-08 Ad-valorem payments are tax and...

Version 1

15) For firms importing products into the United States, the listing of goods and corresponding

tariff rates is the: 15) ______ A) Harmonized Tariff of the United States (HTSUS). B) Customs Tariff Listing (CTL). C) Electronic Export Information (EEI). D) Ad-valorem Table. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 10-03 Global Sourcing Topic : Compliance Source : Chapter 10 Test Bank > MC Qu. 10-09 For firms importing products into...

16) A firm which provides advice and/or shipment coordinating services for an importer or

exporter is known as a: 16) ______ A) customs liaison. B) import advisor. C) customs broker. D) border agent. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 10-03 Global Sourcing Topic : Customs Broker Source : Chapter 10 Test Bank > MC Qu. 10-10 A firm which provides advice...

Version 1

17) Jones Company has learned that some of their domestic customers are exporting Jones

Company products to international customers. Jones Company is focused on domestic sales and does not actively pursue international markets. Jones Company is following which of the four supply chain globalization strategies? 17) ______ A) No international strategy B) Multi-domestic strategy C) Global operation strategy D) Transnational strategy Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 10-02 Global Supply Chain Integration Topic : Globalization Strategies Source : Chapter 10 Test Bank > MC Qu. 10-11 Jones Company has learned that...

Version 1

Answer Key Test name: Chapter 10 Test Bank 1) TRUE 2) FALSE 3) FALSE 4) TRUE 5) TRUE 6) TRUE 7) D 8) B 9) A 10) D 11) A 12) C 13) D 14) C 15) A 16) C 17) A

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Each unique location analysis has a unique threshold service level 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 11-05 Formulating Logistical Strategy Topic : Threshold Service Source : Chapter 11 Test Bank > TF Qu. 11-16 Each unique location analysis has...

2) The threshold service level is the starting point for service sensitivity analysis 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-05 Formulating Logistical Strategy Topic : Threshold Service Source : Chapter 11 Test Bank > TF Qu. 11-17 The threshold service level is...

Version 1

3) The relationship between uncertainty and inventory is called the square root rule. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-05 Formulating Logistical Strategy Topic : Service Sensitivity Analysis Source : Chapter 11 Test Bank > TF Qu. 11-18 The relationship between uncertainty and...

4) Location decisions for logistics managers are limited to those involving warehouses and

transportation facilities. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-01 Enterprise Facility Network Topic : Spectrum of Location Decisions Source : Chapter 11 Test Bank > TF Qu. 11-19 Location decisions for logistics managers...

Version 1

5) Transit stock inventory should not be considered as available to promise. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-04 Total Cost Integration Topic : Inventory Economics Source : Chapter 11 Test Bank > TF Qu. 11-20 Transit stock inventory should not...

6) The local presence paradigm is increasingly obsolete because of reduced transportation costs. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-01 Enterprise Facility Network Topic : Local Presence: An Obsolete Paradigm Source : Chapter 11 Test Bank > TF Qu. 11-21 The local presence paradigm is...

Version 1

7) Warehouses can be justified on the basis of cost, but never due to generalized local presence 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-02 Warehouse Requirements Topic : Warehouse Justification Source : Chapter 11 Test Bank > TF Qu. 11-22 Warehouses can be justified on...

8) A demand facing warehouse is one that is focused on supplying key customers 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 11-02 Warehouse Requirements Topic : Warehouse Requirements Source : Chapter 11 Test Bank > TF Qu. 11-23 A demand facing warehouse is...

Version 1

9) The appropriate warehouse structure for a firm will often be driven mainly by the firm’s

manufacturing strategy. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 11-02 Warehouse Requirements Topic : Manufacturing Drivers Source : Chapter 11 Test Bank > TF Qu. 11-24 The appropriate warehouse structure for...

10) Warehouse network optimization is no longer a challenging process due to recent

improvements in computer analysis and mathematical modeling. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-09 Phase II: Data Collection and Analysis Topic : Phase II: Analysis Source : Chapter 11 Test Bank > TF Qu. 11-25 Warehouse network optimization is no...

Version 1

11) Service sensitivity analysis is a form of cost-revenue analysis 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-05 Formulating Logistical Strategy Topic : Service Sensitivity Analysis Source : Chapter 11 Test Bank > TF Qu. 11-26 Service sensitivity analysis is a...

12) Transit time to customer is typically estimated on the basis of highway route miles when

performing a static warehouse analysis. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-02 Warehouse Requirements Topic : Customer Relationship Drivers Source : Chapter 11 Test Bank > TF Qu. 11-27 Transit time to customer is...

Version 1

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 13) The level of service associated with the least total-cost system is known as the: 13) ______ A) threshold service level. B) optimal service level. C) minimum service level. D) desired service level. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-05 Formulating Logistical Strategy Topic : Threshold Service Source : Chapter 11 Test Bank > MC Qu. 11-01 The level of service associated...

14) When does a trade-off occur? 14) ______ A) An investment in one area reduces costs in another B) An investment in one area increases costs in another C) Reduced spending in one area leads to reduced costs in another D) There is no relationship between two variables Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-03 Systems Concept and Analysis Topic : Systems Concept and Analysis Source : Chapter 11 Test Bank > MC Qu. 11-02 When does a trade-off...

Version 1

15) Local presence is no longer considered a necessary part of doing business because of the

advent of ________ and ________ transportation. 15) ______ A) expensive, unreliable B) inexpensive, unreliable C) air, rail D) timely, consistent Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-01 Enterprise Facility Network Topic : Local Presence: An Obsolete Paradigm Source : Chapter 11 Test Bank > MC Qu. 11-03 Local Presence is no longer...

16) In terms of warehouse justification which of the following statements is true? 16) ______ A) A warehouse is justified if it offers a way to achieve competitively superior service. B) A warehouse is justified if it offers a way to provide service at lowest cost. C) A warehouse is justified if it offers lowest total cost assembly support. D) All of the choices are correct. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 11-02 Warehouse Requirements Topic : Warehouse Justification Source : Chapter 11 Test Bank > MC Qu. 11-04 In terms of warehouse justification...

Version 1

17) Market based assemble-to-order (ATO) is a form of: 17) ______ A) manufacturing-justified warehousing. B) procurement-justified warehousing. C) customer-justified warehousing. D) none of the choices are correct. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 11-02 Warehouse Requirements Topic : Warehouse Justification Source : Chapter 11 Test Bank > MC Qu. 11-05 Market based Assemble-To-Order (ATO) is...

18) Higher levels of network uncertainty are indicated when increasing numbers of warehouses

leads to ________ overall safety stock. 18) ______ A) lower B) higher C) unchanging D) eliminating Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-04 Total Cost Integration Topic : Total Cost Network Source : Chapter 11 Test Bank > MC Qu. 11-06 Higher levels of network uncertainty...

Version 1

19) In system design the lowest total cost configuration is typically which of the following? 19) ______ A) Not the lowest cost of either transportation or inventory B) the lowest cost of either transportation or inventory C) Not related to transportation or inventory D) Difficult to generalize Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 11-04 Total Cost Integration Topic : Total Cost Network Source : Chapter 11 Test Bank > MC Qu. 11-07 In system design the lowest...

20) In general, adding warehouses to a logistics system will result in ________ base stock levels

and ________ safety stock levels. 20) ______ A) higher, higher B) lower, lower C) unchanged, higher D) higher, unchanged Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 11-04 Total Cost Integration Topic : Inventory Economics Source : Chapter 11 Test Bank > MC Qu. 11-08 In general, adding warehouses to...

Version 1

21) Which of the following is not a component of the project planning portion of the Planning

Methodology? 21) ______ A) Statement of constraints B) Statement of objectives C) Cost/benefit estimate D) Project work plan Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-08 Phase I: Problem Definition and Planning Topic : Project Planning Source : Chapter 11 Test Bank > MC Qu. 11-09 Which of the following is...

22) The internal review topics should focus on all of the following except: 22) ______ A) customer service. B) suppliers. C) warehousing. D) inventory. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-08 Phase I: Problem Definition and Planning Topic : Feasibility Assessment Source : Chapter 11 Test Bank > MC Qu. 11-10 The internal review topics should...

Version 1

23) Cost prevention activities are those which: 23) ______ A) reduce the financial resources required to operate the logistics system. B) reduce variable expenses. C) increase service levels. D) reduce involvement in areas where cost drivers are increasing. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 11-08 Phase I: Problem Definition and Planning Topic : Feasibility Assessment Source : Chapter 11 Test Bank > MC Qu. 11-11 Cost prevention activities are those...

24) Business assumptions attempt to define future conditions of all of the following EXCEPT: 24) ______ A) resource availability. B) competitive actions. C) mode utilization. D) consumer trends. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-09 Phase II: Data Collection and Analysis Topic : Assumptions and Data Collection Source : Chapter 11 Test Bank > MC Qu. 11-12 Business assumptions attempt to define...

Version 1

25) Determining inventory parameters such as safety stock and order quantity is best

accomplished with which of the following methodologies? 25) ______ A) inventory simulation. B) supply chain design optimization. C) analytic inventory formulation. D) transportation analysis tool. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 11-09 Phase II: Data Collection and Analysis Topic : Assumptions and Data Collection Source : Chapter 11 Test Bank > MC Qu. 11-13 Determining inventory parameters such as...

26) A transportation analysis tool would be appropriate for all of the following problems

EXCEPT: 26) ______ A) which routes should be assigned to which vehicle types?. B) how should deliveries be grouped together to form routes?. C) what delivery sequence should be used to accommodate customer time restrictions?. D) how many distribution centers should there be to best serve customers?. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 11-09 Phase II: Data Collection and Analysis Topic : Assumptions and Data Collection Source : Chapter 11 Test Bank > MC Qu. 11-14 A transportation analysis tool would...

Version 1

27) James Company currently has four warehouses and carries $1 million in safety stock across

these eight warehouses. If James Company were to expand to eight warehouses, what would be the expected safety stock required to maintain the current service level? 27) ______ A) $0.707 million B) $1 million C) $1.4 million D) $2 million Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : 11-09 Phase II: Data Collection and Analysis Topic : Assumptions and Data Collection Source : Chapter 11 Test Bank > MC Qu. 11-15 James Company currently has 4...

Version 1

Answer Key Test name: Chapter 11 Test Bank 1) TRUE 2) TRUE 3) FALSE 4) FALSE 5) FALSE 6) FALSE 7) FALSE 8) TRUE 9) TRUE 10) FALSE 11) TRUE 12) FALSE 13) A 14) A 15) D 16) D 17) C 18) B 19) A 20) C 21) C 22) B 23) D 24) C 25) C 26) D 27) C

Using the square root rule.

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) In contracting and outsourcing relationships, the majority of information shared among supply chain members is operational rather than strategic. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Understand Difficulty: 2 Medium Topic: Development and Management of Supply Chain Relationships Source : Chapter 12 Test Bank > TF Qu. 12-13 In contracting and outsourcing relationships,...

2) Until the 1950s, logistics functions were generally viewed in companies as facilitating or

support work. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-01 Development and Management of Internal Logistics Relationships Blooms: Remember Difficulty: 1 Easy Topic: Developing a Process Perspective Source : Chapter 12 Test Bank > TF Qu. 12-14 Until the 1950s, logistics functions...

Version 1

3) Grouping transportation, warehousing and other activities related to logistics into a single

logistical function was motivated by the belief that this would help optimize the overall logistics performance of the firm. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-01 Development and Management of Internal Logistics Relationships Blooms: Understand Difficulty: 2 Medium Topic: Functional Aggregation Source : Chapter 12 Test Bank > TF Qu. 12-15 Grouping transportation, warehousing and other...

4) An organization structure in which all logistical functions and operations report to a single

senior manager or executive is known as functional aggregation. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-01 Development and Management of Internal Logistics Relationships Blooms: Remember Difficulty: 1 Easy Topic: Functional Aggregation Source : Chapter 12 Test Bank > TF Qu. 12-16 An organization structure in which...

Version 1

5) Process integration is best achieved with a structure that supports functional aggregation. 5) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-01 Development and Management of Internal Logistics Relationships Blooms: Understand Difficulty: 2 Medium Topic: Developing a Process Perspective Source : Chapter 12 Test Bank > TF Qu. 12-17 Process integration is best achieved...

6) Although some firms have successfully overcome the 'Great Divide', it is still common for

firms to face the problem of partial integration of logistics functions. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-01 Development and Management of Internal Logistics Relationships Blooms: Remember Difficulty: 1 Easy Topic: Developing a Process Perspective Source : Chapter 12 Test Bank > TF Qu. 12-18 Although some firms have successfully...

Version 1

7) Centralization of logistics organization is critical to achieving lowest total-cost logistics

performance. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-01 Development and Management of Internal Logistics Relationships Blooms: Understand Difficulty: 2 Medium Topic: Developing a Process Perspective Source : Chapter 12 Test Bank > TF Qu. 12-19 Centralization of logistics organization is...

8) Decentralization of logistics organization is critical to achieving customer service,

satisfaction, and success. 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-01 Development and Management of Internal Logistics Relationships Blooms: Understand Difficulty: 2 Medium Topic: Developing a Process Perspective Source : Chapter 12 Test Bank > TF Qu. 12-20 Decentralization of logistics organization is...

Version 1

9) Collaboration with external supply chain partners (for example, suppliers and/or customers)

may be easier to accomplish than internal collaboration (for example, between marketing and procurement). 9) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Difficulty: 1 Easy Blooms: Understand Topic: Types of Supply Chain Relationships and Dependency Source : Chapter 12 Test Bank > TF Qu. 12-21 Collaboration with external supply chain...

10) Successful collaboration initiatives usually exclude third-party or integrated service providers

(ISP) to limit the number of supply chain participants and streamline communications. 10) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Remember Difficulty: 1 Easy Topic: Types of Supply Chain Relationships and Dependency Source : Chapter 12 Test Bank > TF Qu. 12-22 Successful collaboration initiatives usually exclude...

Version 1

11) As a general rule, powerful firms prefer to link with less powerful firms in supply chain

collaboration to use their power to obtain advantages over those less powerful firms. 11) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Remember Difficulty: 1 Easy Topic: Power vs. Leadership Source : Chapter 12 Test Bank > TF Qu. 12-23 As a general rule, powerful...

12) Alliances as a form of supply chain collaborative relationship generally involve greater

information sharing and dependency than administered relationships. 12) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Remember Difficulty: 1 Easy Topic: Types of Supply Chain Relationships and Dependency Source : Chapter 12 Test Bank > TF Qu. 12-24 Alliances as a form of...

Version 1

13) Alliances are generally initiated by the upstream partner (for example, the supplier) rather

than the downstream partner (for example, the customer). 13) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Understand Difficulty: 2 Medium Topic: Types of Supply Chain Relationships and Dependency Source : Chapter 12 Test Bank > TF Qu. 12-25 Alliances are generally initiated by...

14) The text use of the term "Great Divide" refers to partial integration of the supply chain

(usually with external partners) but a failure to completely integrate internal supply chain functions. 14) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Understand Difficulty: 2 Medium Topic: Developing a Process Perspective Source : Chapter 12 Test Bank > TF Qu. 12-26 The text use of the...

Version 1

15) Jones Company has done an excellent job in meeting its promises concerning logistical

performance to customers. This level of performance is a distinguishing factor in characterbased trust. 15) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Understand Difficulty: 2 Medium Topic: Developing Trust in Relationships Source : Chapter 12 Test Bank > TF Qu. 12-27 Jones Company has done an...

16) Supply chain alliances are difficult to initiate because of the intensive communications and

data-sharing requirements. 16) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-03 Managing Supply Chain Relationships over Time Blooms: Remember Difficulty: 1 Easy Topic: Implementing Source : Chapter 12 Test Bank > TF Qu. 12-28 Supply chain alliances are difficult...

Version 1

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 17) The idea of structuring logistics as an integrated organization (rather than viewing logistics as merely support systems for work): 17) ______ A) has been a concern since the beginning of the industrial revolution. B) first appeared in the 1950s. C) became necessary because of advanced information systems. D) is more important for manufacturers than it is for retailers. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-01 Development and Management of Internal Logistics Relationships Blooms: Remember Difficulty: 1 Easy Topic: Functional Integration Source : Chapter 12 Test Bank > MC Qu. 12-01 The idea of structuring logistics...

18) Process integration is hindered by traditional functional practices in all of the following

EXCEPT: 18) ______ A) measurement and reward systems. B) organization structure. C) knowledge hoarding. D) lack of financial resources. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-01 Development and Management of Internal Logistics Relationships Blooms: Understand Difficulty: 2 Medium Topic: Developing a Process Perspective Source : Chapter 12 Test Bank > MC Qu. 12-02 Process integration is hindered by...

Version 1

19) The text makes reference to a situation it calls "The Great Divide". This divide most

commonly occurs between ________ and ________. 19) ______ A) procurement, manufacturing B) distribution, marketing C) finance, accounting D) None of the choices are correct Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-01 Development and Management of Internal Logistics Relationships Blooms: Understand Difficulty: 2 Medium Topic: Developing a Process Perspective Source : Chapter 12 Test Bank > MC Qu. 12-03 The text makes reference to...

20) For several decades, supply chain power has been shifting from manufacturers to: 20) ______ A) manufacturers. B) third party logistics providers. C) retailers. D) wholesalers. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Understand Difficulty: 2 Medium Topic: Power vs. Leadership Source : Chapter 12 Test Bank > MC Qu. 12-04 For several decades, supply chain...

Version 1

21) The most elementary forms of collaboration in supply chains are ________ and ________ . 21) ______ A) contracting, outsourcing B) alliances, administered C) outsourcing, alliances D) contracting, alliances Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Remember Difficulty: 1 Easy Topic: Types of Supply Chain Relationships and Dependency Source : Chapter 12 Test Bank > MC Qu. 12-05 The most elementary forms of...

22) Initial implementation of successful supply chain collaborative relationships cannot occur

without: 22) ______ A) compatible information systems. B) identical organizational cultures. C) meaningful trust. D) All of the choices are correct. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Understand Difficulty: 2 Medium Topic: Developing Trust in Relationships Source : Chapter 12 Test Bank > MC Qu. 12-06 Initial implementation of successful supply...

Version 1

23) Jones Company consistently meets customer requirements in terms of quality, quantity and

on-time delivery. This type of performance is critical to: 23) ______ A) developing character based trust. B) developing reliability based trust. C) developing power in a supply chain. D) None of the choices are correct. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Understand Difficulty: 2 Medium Topic: Developing Trust in Relationships Source : Chapter 12 Test Bank > MC Qu. 12-07 Jones Company consistently meets customer...

24) Jones Company recently informed a customer of a potential problem with one of their

upcoming shipments which could delay delivery. This type of performance is critical to: 24) ______ A) developing character based trust. B) developing reliability based trust. C) developing power in a supply chain. D) None of the choices are correct. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Understand Difficulty: 2 Medium Topic: Developing Trust in Relationships Source : Chapter 12 Test Bank > MC Qu. 12-08 Jones Company recently informed a...

Version 1

25) Jones Company and a trusted supplier have developed such a close relationship that they

conduct joint planning activities and have fully integrated systems to give each other full visibility of financial and operational data. This relationship can best be described as: 25) ______ A) enterprise extension. B) contracting. C) administered. D) outsourcing. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Understand Difficulty: 2 Medium Topic: Types of Supply Chain Relationships and Dependency Source : Chapter 12 Test Bank > MC Qu. 12-09 Jones Company and a trusted...

26) Jones Company has engaged a new supplier on a limited basis. At this point, Jones Company

purchases materials from the supplier using written purchase orders, which are sent to the supplier with no advanced notification. This relationship can best be described as: 26) ______ A) enterprise extension. B) contracting. C) administered. D) outsourcing. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-02 Development and Management of Supply Chain Relationships Blooms: Understand Difficulty: 2 Medium Topic: Types of Supply Chain Relationships and Dependency Source : Chapter 12 Test Bank > MC Qu. 12-10 Jones Company has engaged a...

Version 1

27) Prior to initiating a collaborative relationship with a supply chain partner, a firm should: 27) ______ A) assess their own internal policies, practices and culture. B) evaluate the level of operational integration desired.. C) determine if its own internal units are capable of adopting standardized operating

practices. D) all of the choices are correct. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-03 Managing Supply Chain Relationships over Time Blooms: Remember Difficulty: 2 Medium Topic: Initiating Source : Chapter 12 Test Bank > MC Qu. 12-11 Prior to initiating a collaborative...

28) Long-term success of supply chain collaborations depends upon each of the following

EXCEPT: 28) ______ A) mutual strategic and operational goals. B) two-way performance measures. C) formal and informal feedback mechanisms. D) removal of power differentials between partners. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Gradable : automatic Learning Objective : 12-03 Managing Supply Chain Relationships over Time Blooms: Understand Difficulty: 2 Medium Topic: Maintaining Source : Chapter 12 Test Bank > MC Qu. 12-12 Long-term success of supply chain...

Version 1

Answer Key Test name: Chapter 12 Test Bank 1) TRUE 2) TRUE 3) TRUE 4) TRUE 5) FALSE 6) TRUE 7) FALSE 8) FALSE 9) TRUE 10) FALSE 11) FALSE 12) TRUE 13) FALSE 14) TRUE 15) FALSE 16) TRUE 17) B 18) D 19) D 20) C 21) A 22) C 23) B 24) A 25) A 26) B 27) D 28) D

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) Measuring damage rates for outbound freight would be appropriate for the operations perspective of the balanced scorecard. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-01 Measurement System Objectives Topic : Measurement System Objectives Source : Chapter 13 Test Bank > TF Qu. 13-18 Measuring damage rates for...

2) According to researchers, most firms are unable to measure the profitability of specific

customers because of the difficulty associated with measuring total cost. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Cost-Revenue Analysis Source : Chapter 13 Test Bank > TF Qu. 13-19 According to researchers, most...

Version 1

3) It is possible to achieve a higher line fill rate than item fill rate. 3) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-02 Operational Assessment Topic : Functional Perspectives Source : Chapter 13 Test Bank > TF Qu. 13-20 It is possible to achieve...

4) Perfect order performance is an accurate means of measuring customer satisfaction. 4) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-02 Operational Assessment Topic : Measuring Customer Relationships Source : Chapter 13 Test Bank > TF Qu. 13-21 Perfect order performance is...

Version 1

5) On-shelf in-stock percentage (at the retailer’s locations) is a useful measure for all supply

chain participants. 5) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-02 Operational Assessment Topic : Supply Chain Comprehensive Metrics Source : Chapter 13 Test Bank > TF Qu. 13-22 On-shelf in-stock percentage (at the retailer&#8217;s locations) is...

6) Benchmarking performance metrics is less common than benchmarking processes. 6) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 13-02 Operational Assessment Topic : Benchmarking Source : Chapter 13 Test Bank > TF Qu. 13-23 Benchmarking performance metrics is...

Version 1

7) Activity-based costing is useful for identifying and controlling logistics expenses. 7) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Cost-Revenue Analysis Source : Chapter 13 Test Bank > TF Qu. 13-24 Activity-based costing is...

8) A product’s variable costs should not be considered when determining the profitability of that

product. 8) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Cost-Revenue Analysis Source : Chapter 13 Test Bank > TF Qu. 13-25 A product&#8217;s variable costs...

Version 1

9) A product with low gross margin can provide a higher return on its direct investment than a

product with a high gross margin. 9) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Cost-Revenue Analysis Source : Chapter 13 Test Bank > TF Qu. 13-26 A product with low gross margin...

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 10) Joe Jones has put in place a new set of performance metrics for the Logistics Department at his firm. He is convinced that these will give him better information about the department’s performance, but is not sure what type of behavior the new measurement system will encourage in his employees. Joe seems to be concerned about which objective of performance measurement? 10) ______ A) Monitoring B) Directing C) Controlling D) Measuring Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 13-01 Measurement System Objectives Topic : Measurement System Objectives Source : Chapter 13 Test Bank > MC Qu. 13-01 Joe Jones has put in place a...

Version 1

11) Joe Jones has put in place a new set of performance metrics for the Logistics Department at

his firm. He is convinced that these will give him better information about the department’s performance, but is concerned that he doesn’t know what type of behavior the new measurement system will encourage in his employees. Joe seems to have confidence in the new system’s ability achieving which objective of performance measurement? 11) ______ A) Monitoring B) Directing C) Controlling D) Measuring Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 1 Easy Gradable : automatic Learning Objective : 13-01 Measurement System Objectives Topic : Measurement System Objectives Source : Chapter 13 Test Bank > MC Qu. 13-02 Joe Jones has put in place a...

12) Jingle Corporation received an order from a customer for 200 units of bells, 500 units of

whistles, and 600 units of dingers. The customer received from Jingle Corporation 190 units of bells, 400 units of whistles, and 500 units of dingers. Jingle’s item fill rate was: 12) ______ A) 91% B) 95% C) 84% D) 96% Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 13-02 Operational Assessment Topic : Functional Perspectives Source : Chapter 13 Test Bank > MC Qu. 13-03 Jingle Corporation received an order from...

Version 1

13) Jingle Corporation received an order from a customer for 200 units of bells, 500 units of

whistles, and 600 units of dingers. The customer received from Jingle Corporation 200 units of bells, 500 units of whistles, and 500 units of dingers. Jingle’s line fill rate was: 13) ______ A) 92% B) 95% C) 67% D) 96% Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 13-02 Operational Assessment Topic : Functional Perspectives Source : Chapter 13 Test Bank > MC Qu. 13-04 Jingle Corporation received an order...

14) On a balanced scorecard, units shipped per employee would be part of which perspective? 14) ______ A) Financial B) Internal Operations C) Customer D) Innovation and Learning Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-01 Measurement System Objectives Topic : Measurement System Objectives Source : Chapter 13 Test Bank > MC Qu. 13-05 On a Balanced Scorecard, units...

Version 1

15) Suppose your company receives trade credit from your suppliers which allows you 20 days to

pay for the goods you buy. You flow your inventory through your company every 40 days. You allow your customers 15 days to pay you. Your cash-to-cash cycle time is: 15) ______ A) 20 days B) 45 days C) 65 days D) None of the choices are correct Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 13-02 Operational Assessment Topic : Supply Chain Comprehensive Metrics Source : Chapter 13 Test Bank > MC Qu. 13-06 Suppose your company receives trade...

16) Last year, Able Company had Sales of $100 million, cost of goods sold of $65 million, gross

profit of $35 million and net profit of $10 million. Average inventory at cost was $24 million. Able’s inventory turn rate was: 16) ______ A) 4.2 times B) 2.7 times C) 3.2 times D) 6.5 times Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 13-02 Operational Assessment Topic : Functional Perspectives Source : Chapter 13 Test Bank > MC Qu. 13-07 Last year, Able Company had Sales of...

Version 1

17) The supply chain comprehensive metric that is most difficult to quantify in actual

applications is: 17) ______ A) inventory days of supply. B) dwell time. C) cash-to-cash conversion. D) supply chain response time. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-02 Operational Assessment Topic : Supply Chain Comprehensive Metrics Source : Chapter 13 Test Bank > MC Qu. 13-08 The supply chain comprehensive metric...

18) The net profit approach to financial assessment allocates indirect costs ________ while the

contribution approach to financial assessment allocates indirect costs ________. 18) ______ A) arbitrarily, only at the top level B) to products, arbitrarily C) equally, randomly D) to products, to services Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Cost-Revenue Analysis Source : Chapter 13 Test Bank > MC Qu. 13-09 The net profit approach to financial assessment...

Version 1

19) In the above strategic profit model, what is the hypothetical firm’s ROA? 19) ______ A) 8.4% B) 18.6% C) 32.2% D) 27.5% Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Strategic Profit Model Source : Chapter 13 Test Bank > MC Qu. 13-11 In the above Strategic Profit Model...

20) Suppose two companies have identical profit margins. However, Company A has a higher

gross margin than company B. Which one of the following would best explain how company B ends up with the same profit margin? 20) ______ A) Company A has a more efficient supply chain. B) Company A has a higher asset turnover rate. C) Company B has a more efficient supply chain. D) Company B has a higher asset turnover. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Strategic Profit Model Source : Chapter 13 Test Bank > MC Qu. 13-15 Suppose two companies have...

Version 1

21) A firm has an asset turnover of 5 times and a net profit margin of 6%. In the next year its

margin decreases to 4%. This is not necessarily bad if: 21) ______ A) asset turnover increases to at least 7.5 times. B) asset turnover decreases to 1.5 times. C) asset turnover doesn’t change. D) gross margin increases enough to offset the decrease in net profit margin. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Strategic Profit Model Source : Chapter 13 Test Bank > MC Qu. 13-16 The firm&#8217;s new asset...

22) Dwell time measures which of the following? 22) ______ A) System efficiency B) The ratio of asset idle time to total time required to complete a mission C) The total time inventory is waiting to be processed. D) Total manufacturing time Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-02 Operational Assessment Topic : Supply Chain Comprehensive Metrics Source : Chapter 13 Test Bank > MC Qu. 13-17 Dwell time measures which...

Version 1

SECTION BREAK. Answer all the part questions. 23) [The following information applies to the questions displayed below.]

23.1)

In the above strategic profit model, what is the hypothetical firm’s net profit margin? 23.1) ______ A) 15.0% B) 22.5% C) 27.5% D) 30.0%

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Strategic Profit Model Source : Chapter 13 Test Bank > MC Qu. 13-10 In the above Strategic Profit Model...

Version 1

24) [The following information applies to the questions displayed below.]

Suppose the firm in the above strategic profit model undertakes a supply chain improvement project. It improves its service level to customers by opening more warehouses which means it will be able to delivery more quickly to customers. The result is a 12% increase in sales. Assume cost of goods sold increases by 8%. The new warehouse requires additional new asset investment of $20,000. Fixed expenses increase by $5,000 because of the expense of operating the warehouses. Assume other variables do not change. Answer the following three questions based on this information. 24.1)

What is the firm’s new net profit margin? 24.1)

______

A) 22.3% B) 16.8% C) 27.2% D) 31.4% Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Strategic Profit Model Source : Chapter 13 Test Bank > MC Qu. 13-12 What is the firm&#8217;s new...

Version 1

24.2)

The firm’s new asset turnover is closest to? 24.2)

______

24.3)

______

A) 0.67 turns B) 2.5 turns C) 1.52 turns D) 0.5 turns Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 2 Medium Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Strategic Profit Model Source : Chapter 13 Test Bank > MC Qu. 13-13 The firm&#8217;s new asset...

24.3)

What is the firm’s new return on assets (choose the closest answer)? A) 18.2% B) 28.0% C) 15.1% D) 12.3%

Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Apply Difficulty : 3 Hard Gradable : automatic Learning Objective : 13-03 Financial Assessment Topic : Strategic Profit Model Source : Chapter 13 Test Bank > MC Qu. 13-14 What is the firm&#8217;s...

Version 1

Answer Key Test name: Chapter 13 Test Bank 1) TRUE 2) TRUE 3) TRUE 4) FALSE 5) TRUE 6) FALSE 7) TRUE 8) FALSE 9) TRUE 10) B 11) A 12) C

13) C

14) B 15) B

Cash-to-cash cycle time = Inventory days + AR days − AP days = 40 + 20 − 15 = 45 days 16) B

17) D 18) A 19) B

Version 1

Return on assets = Net profit margin × Asset turnover

20) C 21) A

In the first year the firm’s ROA was 5 × 6% = 30%. In the second year, margins decreased to 4%, which would require an asset turnover of 7.5 to result in an equal ROA (7.5 × 4% = 30%). 22) B 23) Section Break 23.1) C

24) Section Break 24.1) C

24.2)

24.3)

A

Version 1

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. 1) When searching for a supply chain management professional, hiring executives should expect that candidates meet all the desired criteria. 1) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 14-02 Developing Supply Chain Management Talent Topic : Development Source : Chapter 14 Test Bank > TF Qu. 14-11 When searching for a supply...

2) Employees who are being trained for supply chain managerial positions should not be in

rotation programs that are developed and controlled by a single leader. 2) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 14-02 Developing Supply Chain Management Talent Topic : Development Source : Chapter 14 Test Bank > TF Qu. 14-12 Employees who are being trained...

Version 1

3) Changes in taxes and duties are a problem that complicate cost management for global

supply chains. 3) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 14-05 Understanding Purchasing and Total Cost Management Topic : Understanding Purchasing and Total Cost Management Source : Chapter 14 Test Bank > TF Qu. 14-13 Changes in taxes and duties...

4) End-to-end supply chain management refers to the process of purchasing supply chain

partners to increase control over the supply chain. 4) ______ ⊚ true ⊚ false Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 14-01 Understanding End-to-End Supply Chain Management Topic : Understanding End-to-End Supply Chain Management Source : Chapter 14 Test Bank > TF Qu. 14-14 End-to-end supply chain management refers...

Version 1

5) Good supply chain employees will be noticed by senior management based on performance,

making more formalized networking unnecessary. 5) ______ ⊚ true ⊚ false Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 14-02 Developing Supply Chain Management Talent Topic : Development Source : Chapter 14 Test Bank > TF Qu. 14-15 Good supply chain employees will...

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 6) All of the following are environmental initiatives used by firms and their supply chains EXCEPT: 6) ______ A) reduced packaging. B) product recycling after useful life. C) waste electrical and electronic equipment. D) supply chain redesign to minimize carbon. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 14-03 Managing Threats and Environmental Changes Topic : Managing Threats and Environmental Changes Source : Chapter 14 Test Bank > MC Qu. 14-01 All of the following are...

Version 1

7) Historically, firms have focused their supply chain management activities to the partners

closest in the supply chain (direct suppliers, direct customers). However, more recently, firms are attempting to establish visibility of the supply chain from extraction of raw materials to consumer purchases. This is known as: 7) ______ A) end-to-end supply chain management. B) lifecycle management. C) total cost management. D) supply chain expansion. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 14-01 Understanding End-to-End Supply Chain Management Topic : Understanding End-to-End Supply Chain Management Source : Chapter 14 Test Bank > MC Qu. 14-02 Historically, firms have focused their...

8) A major driving force behind advances in end-to-end supply chain management is the

recognition of ________ associated with suppliers far up the supply chain (third-, fourth-, or even fifth-tier suppliers). 8) ______ A) risks B) costs C) opportunities D) payments Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 14-01 Understanding End-to-End Supply Chain Management Topic : Understanding End-to-End Supply Chain Management Source : Chapter 14 Test Bank > MC Qu. 14-03 A major driving force behind...

Version 1

9) Retailers may be held legally liable for the actions of not only their manufacturing partners,

but also for transgressions committed by suppliers even further up the supply chain. This is one reason more firms are adopting: 9) ______ A) end-to-end supply chain management. B) supply chain insurance. C) supply base reductions. D) vertical integration. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 14-01 Understanding End-to-End Supply Chain Management Topic : Understanding End-to-End Supply Chain Management Source : Chapter 14 Test Bank > MC Qu. 14-04 Retailers may be held legally...

10) All of the following are stages in the supply chain talent development process EXCEPT: 10) ______ A) acquisition. B) conservation. C) retention. D) termination. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 14-02 Developing Supply Chain Management Talent Topic : Developing Supply Chain Talent Source : Chapter 14 Test Bank > MC Qu. 14-05 All of the following are...

Version 1

11) Education of employees is part of which state of supply chain talent development? 11) ______ A) Acquisition B) Conservation C) Retention D) Development Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 14-02 Developing Supply Chain Management Talent Topic : Conservation Source : Chapter 14 Test Bank > MC Qu. 14-06 Education of employees is part...

12) A supply chain management firm can identify and develop excellent supply chain managers,

but if many of these managers leave the firm for higher-paying jobs with other employers, the firm has had a failure of which stage of supply chain development? 12) ______ A) Acquisition B) Conservation C) Retention D) Development Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 14-02 Developing Supply Chain Management Talent Topic : Retention Source : Chapter 14 Test Bank > MC Qu. 14-07 A supply chain management firm...

Version 1

13) One example of an environmental change for a supply chain is: 13) ______ A) changing from a distributor-retailer model to shipping direct-to-consumer. B) enactment of new security legislation. C) increasing the firm’s grocery store market 20% by adding a new retail customer. D) adopting a new supplier for a key raw material. Question Details AACSB : Reflective Thinking Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 14-03 Managing Threats and Environmental Changes Topic : Managing Threats and Environmental Changes Source : Chapter 14 Test Bank > MC Qu. 14-08 One example of an environmental...

14) Security restrictions that supply chain firms must manage include all of the following

EXCEPT: 14) ______ A) import and/or export restrictions on certain types of products. B) developing appropriate packaging for products. C) protecting the product while it is in the supply chain. D) identifying potentially hazardous uses for the product. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Remember Difficulty : 1 Easy Gradable : automatic Learning Objective : 14-04 Understanding the Security, Regulatory, and Compliance Environment Topic : Understanding the Security, Regulatory, and Compliance Environment Source : Chapter 14 Test Bank > MC Qu. 14-09 Security restrictions that supply chain...

Version 1

15) Global purchasing raises new problems for supply chain managers that are not experienced

during domestic purchasing. One of the issues that are unique to global purchasing is: 15) ______ A) supplier financial stability. B) supplier production capacity. C) currency fluctuations. D) supplier payment terms. Question Details AACSB : Knowledge Application Accessibility : Keyboard Navigation Accessibility : Screen Reader Compatible Bloom's : Understand Difficulty : 2 Medium Gradable : automatic Learning Objective : 14-05 Understanding Purchasing and Total Cost Management Topic : Understanding Purchasing and Total Cost Management Source : Chapter 14 Test Bank > MC Qu. 14-10 Global purchasing raises new problems...

Version 1

Answer Key Test name: Chapter 14 Test Bank 1) FALSE 2) TRUE 3) TRUE 4) FALSE 5) FALSE 6) C 7) ACAC 8) A 9) A 10) D 11) B 12) C 13) A 14) D 15) C

Version 1