QDM Final Exam Questions And Answers With
Complete Study Solutions
Which of the following statements is NOT true?
A. Supply chain management describes the coordination of all supply chain activities, starting with raw
materials, and ending with a satisfied customer.
B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
C. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers,
and/or retailers who deliver the product and/or service to the final customer.
D. The objective of supply chain management is to coordinate activities within the supply chain to maximize
the supply chain's competitive advantage and benefits to the ultimate consumer. ANS B. An increased sales
effort may help a firm reach its profit goals more easily than would effective cost cutting.
Prior to embarking on supply chain design, operations managers must first consider
A. what kind of distribution network to have.
B. how to manage supply chain inventory.
C. how to select suppliers.
D. "make-or-buy" and outsourcing decisions. ANS D. "make-or-buy" and outsourcing decisions.
What is transferring a firm's activities that have traditionally been internal to external suppliers?
A. vertical integration
B. make-or-buy
C. outsourcing
D. keiretsu network ANS C. outsourcing
The advantage of having few suppliers is to
A. form a long-term relationship.
B. look for short-term attributes.
, C. take advantage of diseconomies of scale.
D. pursue low cost. ANS A. form a long-term relationship.
Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion?
A. secure IT systems
B. training of supply chain partners on the proper interpretations and use of information
C. alternate sourcing
D. redundant databases ANS C. alternate sourcing
Which of the following statements is NOT true regarding the bullwhip effect?
A. Bullwhip fluctuations in the supply chain decrease customer service and profitability.
B. Inaccurate information results in distortions and fluctuations, causing what is known as the bullwhip effect.
C. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation,
shipping and receiving.
D. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to
manufacturers, with fluctuations decreasing at each step in the sequence. ANS D. The bullwhip effect
occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations
decreasing at each step in the sequence.
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in its operation. Its
supplier delivers these items directly to the point of use on the assembly line and ensures that there are always
sufficient quantities of fasteners to maintain the production schedule.
This is an example of:
A. postponement.
B. vendor-managed inventory.
C. single stage control of replenishment.
D. e-procurement. ANS B. vendor-managed inventory.
Complete Study Solutions
Which of the following statements is NOT true?
A. Supply chain management describes the coordination of all supply chain activities, starting with raw
materials, and ending with a satisfied customer.
B. An increased sales effort may help a firm reach its profit goals more easily than would effective cost cutting.
C. A supply chain includes suppliers; manufacturers and/or service providers; and distributors, wholesalers,
and/or retailers who deliver the product and/or service to the final customer.
D. The objective of supply chain management is to coordinate activities within the supply chain to maximize
the supply chain's competitive advantage and benefits to the ultimate consumer. ANS B. An increased sales
effort may help a firm reach its profit goals more easily than would effective cost cutting.
Prior to embarking on supply chain design, operations managers must first consider
A. what kind of distribution network to have.
B. how to manage supply chain inventory.
C. how to select suppliers.
D. "make-or-buy" and outsourcing decisions. ANS D. "make-or-buy" and outsourcing decisions.
What is transferring a firm's activities that have traditionally been internal to external suppliers?
A. vertical integration
B. make-or-buy
C. outsourcing
D. keiretsu network ANS C. outsourcing
The advantage of having few suppliers is to
A. form a long-term relationship.
B. look for short-term attributes.
, C. take advantage of diseconomies of scale.
D. pursue low cost. ANS A. form a long-term relationship.
Which of the following mitigation tactics is NOT designed to reduce the risk of information loss or distortion?
A. secure IT systems
B. training of supply chain partners on the proper interpretations and use of information
C. alternate sourcing
D. redundant databases ANS C. alternate sourcing
Which of the following statements is NOT true regarding the bullwhip effect?
A. Bullwhip fluctuations in the supply chain decrease customer service and profitability.
B. Inaccurate information results in distortions and fluctuations, causing what is known as the bullwhip effect.
C. Bullwhip fluctuations in the supply chain increase the costs associated with inventory, transportation,
shipping and receiving.
D. The bullwhip effect occurs as order are relayed from retails, to distributors, to wholesalers, to
manufacturers, with fluctuations decreasing at each step in the sequence. ANS D. The bullwhip effect
occurs as order are relayed from retails, to distributors, to wholesalers, to manufacturers, with fluctuations
decreasing at each step in the sequence.
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in its operation. Its
supplier delivers these items directly to the point of use on the assembly line and ensures that there are always
sufficient quantities of fasteners to maintain the production schedule.
This is an example of:
A. postponement.
B. vendor-managed inventory.
C. single stage control of replenishment.
D. e-procurement. ANS B. vendor-managed inventory.
