QDM Multiple Choice Chapter 11 questions with
verified answers
A disadvantage of the "few suppliers" strategy is __________.
the lack of cost savings for customers and suppliers
the possible violation of the Sherman antitrust act
the high cost of changing partners Ans✓✓✓ the high cost of changing partners
- while the few partners model has many advantages, it also has costs
- one such difficulty associated with the few suppliers model is the high cost of
changing partners
- the long-term relationship that is common in a few partners model creates
dependence between the firms that can sometime backfire when one partner can
no longer meet their expectations
A furniture maker has delivered a dining set to the end consumer rather than to
the furniture store. The furniture maker is practicing __________.
Drop shipping
channel assembly
postponement Ans✓✓✓ Drop Shipping
- furniture maker is practicing drop shipping
,- *drop shipping* supply-supply management technique where a product is
shipped directly from the supplier to the end consumer
- practice saves time and additional shipping costs
- *Channel assembly* where a manufacturer sends individual components (rather
than assembled units) to a distributor. The distributor is then responsible for final
assembly.
*Postponement* is the process of keeping a product generic as long as possible
before customizing. This practice introduces flexibility into the supply chain and
allows for a product to be customized to the desires of the end consumer.
A grocery store is trying to find a new vendor for carrots. Its three criteria are: 1.
Freshness, 2. Lot Size, and 3. Cost, with factor weights of .6, .1, and .3,
respectively. What would a vendor with ratings of 6, 8, and 10 in the three
respective categories score as a weighted total?
7.4
9.8
6.4 Ans✓✓✓ 7.4
A vendor with ratings of 6, 8, and 10 in the three respective categories would
have a weighted total score of 7.4. Weighted scores are calculated by multiplying
the desired ratings (in this case 6, 8, and10) by the appropriate factor weights (in
this case .6, .1, and .3) and summing the results.
Therefore:
6 * .6 = 3.6
, 8 * .1 = .8
10 * .3 = 3
Next, we sum the results 3.6 + .8 + 3 = 7.4.
A restaurant runs a special promotion on lobster and plans to sell twice as many
lobsters as usual. When this large order is sent to the distributer, the distributer
assumes the large size is a trend, not a one-time event. The distributer, therefore,
places an even larger order with the lobsterman. This is the result of __________.
a pass-through facility
the bullwhip effect
vendor-managed inventory Ans✓✓✓ the bullwhip effect
This is the result of the bullwhip effect. This bullwhip effect is a term used to
describe the phenomenon of where orders are communicated through multiple
parties including retailers, distributors, wholesalers, and manufacturers. At each
level, variations and fluctuations are introduced that can either elevate or
decrease the reported demand. The bullwhip effect ends up decreasing customer
service and increasing costs.
verified answers
A disadvantage of the "few suppliers" strategy is __________.
the lack of cost savings for customers and suppliers
the possible violation of the Sherman antitrust act
the high cost of changing partners Ans✓✓✓ the high cost of changing partners
- while the few partners model has many advantages, it also has costs
- one such difficulty associated with the few suppliers model is the high cost of
changing partners
- the long-term relationship that is common in a few partners model creates
dependence between the firms that can sometime backfire when one partner can
no longer meet their expectations
A furniture maker has delivered a dining set to the end consumer rather than to
the furniture store. The furniture maker is practicing __________.
Drop shipping
channel assembly
postponement Ans✓✓✓ Drop Shipping
- furniture maker is practicing drop shipping
,- *drop shipping* supply-supply management technique where a product is
shipped directly from the supplier to the end consumer
- practice saves time and additional shipping costs
- *Channel assembly* where a manufacturer sends individual components (rather
than assembled units) to a distributor. The distributor is then responsible for final
assembly.
*Postponement* is the process of keeping a product generic as long as possible
before customizing. This practice introduces flexibility into the supply chain and
allows for a product to be customized to the desires of the end consumer.
A grocery store is trying to find a new vendor for carrots. Its three criteria are: 1.
Freshness, 2. Lot Size, and 3. Cost, with factor weights of .6, .1, and .3,
respectively. What would a vendor with ratings of 6, 8, and 10 in the three
respective categories score as a weighted total?
7.4
9.8
6.4 Ans✓✓✓ 7.4
A vendor with ratings of 6, 8, and 10 in the three respective categories would
have a weighted total score of 7.4. Weighted scores are calculated by multiplying
the desired ratings (in this case 6, 8, and10) by the appropriate factor weights (in
this case .6, .1, and .3) and summing the results.
Therefore:
6 * .6 = 3.6
, 8 * .1 = .8
10 * .3 = 3
Next, we sum the results 3.6 + .8 + 3 = 7.4.
A restaurant runs a special promotion on lobster and plans to sell twice as many
lobsters as usual. When this large order is sent to the distributer, the distributer
assumes the large size is a trend, not a one-time event. The distributer, therefore,
places an even larger order with the lobsterman. This is the result of __________.
a pass-through facility
the bullwhip effect
vendor-managed inventory Ans✓✓✓ the bullwhip effect
This is the result of the bullwhip effect. This bullwhip effect is a term used to
describe the phenomenon of where orders are communicated through multiple
parties including retailers, distributors, wholesalers, and manufacturers. At each
level, variations and fluctuations are introduced that can either elevate or
decrease the reported demand. The bullwhip effect ends up decreasing customer
service and increasing costs.
