OM-300 EXAM 3 | UPDATED Questions with 100% Verified Answers
Question: Supply chain management describes the coordination of all supply chain■ activities, starting with■
_______ and ending with■ _______.
Answer:
raw materials; satisfied customers
Question: Which of the following statements is NOT one of the differentiation strategy■ decisions? A.
Minimize inventory to avoid product obsolescence. B. Modular design to aid product differentiation. C. Gather
and communicate market research data. D. Use buffer stocks to ensure speedy supply.
Answer:
Use buffer stocks to ensure speedy supply
Question: What is transferring a firm's activities that have traditionally been internal to external suppliers?
Answer:
Outsourcing
Question: What is developing the ability to produce goods or services previously purchased or actually buying
a supplier or distributor?
Answer:
vertical integration
Question: What is a■ long-term purchase commitment to a supplier for items that are to be delivered against■
short-term releases to■ ship?
Answer:
blanket order
Question: 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
Answer:
vendor-managed inventory
Question: Supply chain managers outsource logistics to meet three■ goals:
Answer:
1.) Drive down inventory investment 2.) Lower delivery costs 3.) Improve delivery reliability and speed
, Question: Which of the following is a common measure of supply chain■ performance? A. inventory holding
cost B. total asset turnover C. percentage invested in inventory D. cost of goods sold
Answer:
percentage invested in inventory
Question: Three common measures of supply chain performance are:
Answer:
percentage invested in■ inventory, inventory■ turnover, and weeks of supply
Question: Prior to embarking on supply chain■ design, why do operations managers first consider■
"make-or-buy" and outsourcing■ decisions?
Answer:
Some products or services may be better or less expensive if obtained externally.
Question: Which of the following strategies is part■ collaboration, part purchasing from few■ suppliers, and
part vertical■ integration? A. horizontal integration B. virtual companies C. joint ventures D. keiretsu networks
Answer:
keiretsu networks
Question: Which of the following mitigation tactics could reduce economic■ risk? A. franchising and
licensing B. subcontractors on retainer C. purchasing contracts that address price fluctuations D. multiple
transportation modes and warehouses
Answer:
Purchasing contracts that address price fluctuations
Question: As orders are relayed from■ retailers, to■ distributors, to■ wholesalers, to■ manufacturers, the
fluctuations in order quantities increase at each step in the sequence. What is this■ called?
Answer:
Bullwhip effect
Question: What is the term of shipping directly from the supplier to the end consumer rather than from the■
seller, saving both time and reshipping■ costs?
Answer:
Question: Supply chain management describes the coordination of all supply chain■ activities, starting with■
_______ and ending with■ _______.
Answer:
raw materials; satisfied customers
Question: Which of the following statements is NOT one of the differentiation strategy■ decisions? A.
Minimize inventory to avoid product obsolescence. B. Modular design to aid product differentiation. C. Gather
and communicate market research data. D. Use buffer stocks to ensure speedy supply.
Answer:
Use buffer stocks to ensure speedy supply
Question: What is transferring a firm's activities that have traditionally been internal to external suppliers?
Answer:
Outsourcing
Question: What is developing the ability to produce goods or services previously purchased or actually buying
a supplier or distributor?
Answer:
vertical integration
Question: What is a■ long-term purchase commitment to a supplier for items that are to be delivered against■
short-term releases to■ ship?
Answer:
blanket order
Question: 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
Answer:
vendor-managed inventory
Question: Supply chain managers outsource logistics to meet three■ goals:
Answer:
1.) Drive down inventory investment 2.) Lower delivery costs 3.) Improve delivery reliability and speed
, Question: Which of the following is a common measure of supply chain■ performance? A. inventory holding
cost B. total asset turnover C. percentage invested in inventory D. cost of goods sold
Answer:
percentage invested in inventory
Question: Three common measures of supply chain performance are:
Answer:
percentage invested in■ inventory, inventory■ turnover, and weeks of supply
Question: Prior to embarking on supply chain■ design, why do operations managers first consider■
"make-or-buy" and outsourcing■ decisions?
Answer:
Some products or services may be better or less expensive if obtained externally.
Question: Which of the following strategies is part■ collaboration, part purchasing from few■ suppliers, and
part vertical■ integration? A. horizontal integration B. virtual companies C. joint ventures D. keiretsu networks
Answer:
keiretsu networks
Question: Which of the following mitigation tactics could reduce economic■ risk? A. franchising and
licensing B. subcontractors on retainer C. purchasing contracts that address price fluctuations D. multiple
transportation modes and warehouses
Answer:
Purchasing contracts that address price fluctuations
Question: As orders are relayed from■ retailers, to■ distributors, to■ wholesalers, to■ manufacturers, the
fluctuations in order quantities increase at each step in the sequence. What is this■ called?
Answer:
Bullwhip effect
Question: What is the term of shipping directly from the supplier to the end consumer rather than from the■
seller, saving both time and reshipping■ costs?
Answer:
