Question 1

The optimization of the supply chain uses a mathematical model to determine the optimal number of business organizations to be included in the chain.

Accepted Answer

A) True 
 B)False

Question 2

The service function of purchasing interfaces with many areas, including legal, accounting, and engineering functions.

Accepted Answer

A) True 
 B)False

Question 3

A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain.

Accepted Answer

A) True 
 B)False

Question 4

The design of the supply chain and establishing partnerships with vendors and distributors are examples of operational issues in a supply chain.

Accepted Answer

A) True 
 B)False

Question 5

Scheduling operations and shipping are operational responsibilities in supply chain management.

Accepted Answer

A) True 
 B)False

Question 6

An advantage of decentralized purchasing is the attention given to local needs.

Accepted Answer

A) True 
 B)False

Question 7

To avoid temporary storage in a warehouse, cross-docking can be used.

Accepted Answer

A) True 
 B)False

Question 8

It is especially the case for small businesses that closer interactions and increased agility make __________ relatively more attractive.

Accepted Answer

A)   domestic suppliers
B)   centralized purchasing
C)   global suppliers
D)   decentralized purchasing
E)   risk transferF) All of the above
G) A) and B)

Question 9

Gatekeeping contracts with 3PLs to minimize the cost of shipping returned goods.

Accepted Answer

A) True 
 B)False

Question 10

A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.

Accepted Answer

A)   $1.08
B)   $1.16
C)   $2.37
D)   $2.73
E)   $1.61F) D) and E)
G) C) and D)

Question 11

Outsourcing logistics gives a company less flexibility because it forces them to focus more on core businesses.

Accepted Answer

A) True 
 B)False

Question 12

Vendor analysis examines the function of purchased parts and materials with a view toward improvement or cost reduction.

Accepted Answer

A) True 
 B)False

Question 13

Delayed differentiation is a means of increasing product variety without building the customized product from scratch or keeping large inventories of custom products.

Accepted Answer

A) True 
 B)False

Question 14

The goal of supply chain management is to synchronize supply and demand of all of the organizations that are part of the chain.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not true of vendor analysis?

Accepted Answer

A)   It involves an examination of the function of purchased parts or raw materials.
B)   Its purpose is to reduce costs and/or improve performance of purchased goods or services.
C)   It is usually performed only periodically.
D)   Representatives from design and operations may work with purchasing.
E)   If improvements are identified, purchasing implements those that purchasing agrees are justified.F) A) and B)
G) A) and C)

Question 16

One disadvantage to RFID is that it requires a clear "line of sight" to operate.

Accepted Answer

A) True 
 B)False

Question 17

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

Accepted Answer

A) True 
 B)False

Question 18

After outsourcing to global suppliers, __________ is not simple.

Accepted Answer

A)   integration
B)   unionization
C)   back-shoring
D)   computerization
E)   just-in-timeF) All of the above
G) B) and D)

Question 19

One important role of purchasing is to:

Accepted Answer

A)   set quality standards for purchased items from suppliers.
B)   be knowledgeable about new products from suppliers.
C)   maintain numerous sources of supply.
D)   obtain the lowest prices on all purchased items.
E)   determine the processes that should be used by suppliers.F) All of the above
G) A) and E)

Question 20

One of the major reasons for a company to adopt third-party logistics is to concentrate on one's core business.

Accepted Answer

A) True 
 B)False

Exam 21: Supply Chain Management

Vendor analysis examines the function of purchased parts and materials with a view toward improvement or cost reduction.

Correct AnswerverifiedShow Answer

A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.

Correct AnswerverifiedShow Answer

Gatekeeping contracts with 3PLs to minimize the cost of shipping returned goods.

Correct AnswerverifiedShow Answer

It is especially the case for small businesses that closer interactions and increased agility make __________ relatively more attractive.

Correct AnswerverifiedShow Answer

One disadvantage to RFID is that it requires a clear "line of sight" to operate.

Correct AnswerverifiedShow Answer

The goal of supply chain management is to synchronize supply and demand of all of the organizations that are part of the chain.

Correct AnswerverifiedShow Answer

An advantage of decentralized purchasing is the attention given to local needs.

Correct AnswerverifiedShow Answer

Scheduling operations and shipping are operational responsibilities in supply chain management.

Correct AnswerverifiedShow Answer

After outsourcing to global suppliers, __________ is not simple.

Correct AnswerverifiedShow Answer

The service function of purchasing interfaces with many areas, including legal, accounting, and engineering functions.

Correct AnswerverifiedShow Answer

Outsourcing logistics gives a company less flexibility because it forces them to focus more on core businesses.

Correct AnswerverifiedShow Answer

One of the major reasons for a company to adopt third-party logistics is to concentrate on one's core business.

Correct AnswerverifiedShow Answer

The optimization of the supply chain uses a mathematical model to determine the optimal number of business organizations to be included in the chain.

Correct AnswerverifiedShow Answer

Delayed differentiation is a means of increasing product variety without building the customized product from scratch or keeping large inventories of custom products.

Correct AnswerverifiedShow Answer

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

Correct AnswerverifiedShow Answer

To avoid temporary storage in a warehouse, cross-docking can be used.

Correct AnswerverifiedShow Answer

Which of the following is not true of vendor analysis?

Correct AnswerverifiedShow Answer

One important role of purchasing is to:

Correct AnswerverifiedShow Answer

The design of the supply chain and establishing partnerships with vendors and distributors are examples of operational issues in a supply chain.

Correct AnswerverifiedShow Answer

A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain.

Correct AnswerverifiedShow Answer

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