BUAD 331 EXAM 2 |99 QUESTIONS AND
ANSWERS
The best way to decrease safety stock is to - -decrease variation
- ___ involves a review of the sales, costs, and profit projections for a new
product to find out whether they satisfy the company's objective - -Business
analysis
- A brand created and owned by a reseller of a product or service is called a
_ _ - -private brand
- All of the following are true of the Product Life Cycle (PLC) concept EXCEPT:
- -It is a predictive framework that marketers can aply to product
development.
- What is one major issue that still exists in a lean fulfillment model - -
Inventory must be held in anticipation of customer orders
- For many products, researchers have shown that out of the whole order
cycle, on average how many time is actually value-added time? - -5% or less
- Some companies have a mismatch between their product's characteristics
and the supply chain they use. Suppose Company A is producing innovative
products using a lean supply chain system. And customers are about the
long order cycle time. What Company A do to correct this mismatch? - -
Decrease product varieties to make the product more functional
- In the above Economic Order Quantity (EOQ) model, the manager wants to
optimize fulfillment. As a SCM consultant, what will you suggest to the
manager? - -Lower cycle stock by reducing ordering/set up costs and lower
- An increase in the variation of demand from the customer level up through
the manufacturer to the suppliers that results in greater amounts of wasted
inventory and increased cost in the supply chain is called: - -bullwhip effect
- Lean order fulfillment differs from traditional order fulfillment in that lean
utilizes: - -Smaller inventory deployment and shorter cycle times
- Dr. Bell talked about the example of the collaboration between Walmart
and P&G, to improve supply chain performance. Out of the following
statements, which is not irrelevant? - -P&G shares its cost structure
information with Walmart during price negotiations
, - Which of the following is NOT one of the three questions you should ask
when making an order fulfillment decision? - -How should we price the
product?
- Dell sells direct to consumers, so that they do not actually start making
computers until the customer order comes in, at which point they then order
from their suppliers and have the computer manufactured very quickly. The
point where the customer order triggers this response in manufacturing is
called: - -Order penetration point
- A crossdock is a - -part of a quick response system where inbound
shipments are mixed but not stored
- Which of the following is an incorrect statement about the Naive EOQ
process? - -It accounts for lead time variance and demand variance
- The economic order quantity (EOQ) model attempts to: - -Calculate the
optimal amount of inventory to be reordered by balancing ordering costs
with carrying costs.
- Grizzly Fishing Shop needs to put together a re-order plan for fly-fishing
rods. Given that this product is high cost and highly customized in order to
meet the unique demands of different users, John should utilize which of the
following strategies? - -Order rods based on actual customer orders and
work with supplier-partners to quickly ship the rods directly to customers.
- Average daily demand for a product is 12 units, average lead-time for an
order to arrive is 6 days, and the economic order quantity is 80 units, What is
the average cycle inventory at any given time? - -40 units
- Our text and lecture listed eight types of complexity that increase supply
chain risk. All of the following are types of complexity mentioned, EXCEPT
which one? - -Price complexity
- At Caterpillar, they understand that the key to managing a complex Quick
Response supply network is both the management of _____ and ______. - -
relationships, information systems
- Among Lowe's product categories, nails are one of the basic products that
have low customization, long product life cycle, and very stable demand.
Which of following fulfill techniques is the best fit for ordering nails? - -
Anticipatory
- Demand for fashion goods are difficult to predict. Zara produces
standardized, un-dyed clothes beforehand, and then dyes clothes into
different colors once end customer demand is realized. Why does Zara do
ANSWERS
The best way to decrease safety stock is to - -decrease variation
- ___ involves a review of the sales, costs, and profit projections for a new
product to find out whether they satisfy the company's objective - -Business
analysis
- A brand created and owned by a reseller of a product or service is called a
_ _ - -private brand
- All of the following are true of the Product Life Cycle (PLC) concept EXCEPT:
- -It is a predictive framework that marketers can aply to product
development.
- What is one major issue that still exists in a lean fulfillment model - -
Inventory must be held in anticipation of customer orders
- For many products, researchers have shown that out of the whole order
cycle, on average how many time is actually value-added time? - -5% or less
- Some companies have a mismatch between their product's characteristics
and the supply chain they use. Suppose Company A is producing innovative
products using a lean supply chain system. And customers are about the
long order cycle time. What Company A do to correct this mismatch? - -
Decrease product varieties to make the product more functional
- In the above Economic Order Quantity (EOQ) model, the manager wants to
optimize fulfillment. As a SCM consultant, what will you suggest to the
manager? - -Lower cycle stock by reducing ordering/set up costs and lower
- An increase in the variation of demand from the customer level up through
the manufacturer to the suppliers that results in greater amounts of wasted
inventory and increased cost in the supply chain is called: - -bullwhip effect
- Lean order fulfillment differs from traditional order fulfillment in that lean
utilizes: - -Smaller inventory deployment and shorter cycle times
- Dr. Bell talked about the example of the collaboration between Walmart
and P&G, to improve supply chain performance. Out of the following
statements, which is not irrelevant? - -P&G shares its cost structure
information with Walmart during price negotiations
, - Which of the following is NOT one of the three questions you should ask
when making an order fulfillment decision? - -How should we price the
product?
- Dell sells direct to consumers, so that they do not actually start making
computers until the customer order comes in, at which point they then order
from their suppliers and have the computer manufactured very quickly. The
point where the customer order triggers this response in manufacturing is
called: - -Order penetration point
- A crossdock is a - -part of a quick response system where inbound
shipments are mixed but not stored
- Which of the following is an incorrect statement about the Naive EOQ
process? - -It accounts for lead time variance and demand variance
- The economic order quantity (EOQ) model attempts to: - -Calculate the
optimal amount of inventory to be reordered by balancing ordering costs
with carrying costs.
- Grizzly Fishing Shop needs to put together a re-order plan for fly-fishing
rods. Given that this product is high cost and highly customized in order to
meet the unique demands of different users, John should utilize which of the
following strategies? - -Order rods based on actual customer orders and
work with supplier-partners to quickly ship the rods directly to customers.
- Average daily demand for a product is 12 units, average lead-time for an
order to arrive is 6 days, and the economic order quantity is 80 units, What is
the average cycle inventory at any given time? - -40 units
- Our text and lecture listed eight types of complexity that increase supply
chain risk. All of the following are types of complexity mentioned, EXCEPT
which one? - -Price complexity
- At Caterpillar, they understand that the key to managing a complex Quick
Response supply network is both the management of _____ and ______. - -
relationships, information systems
- Among Lowe's product categories, nails are one of the basic products that
have low customization, long product life cycle, and very stable demand.
Which of following fulfill techniques is the best fit for ordering nails? - -
Anticipatory
- Demand for fashion goods are difficult to predict. Zara produces
standardized, un-dyed clothes beforehand, and then dyes clothes into
different colors once end customer demand is realized. Why does Zara do
