SCMN 3710 MIDTERM EXAM 1

The primary Key Performance Indicators (KPIs) for supply chain managers are - Correct Ans-Total Cost, Customer Service Level, and CSL/TC The "product mix/assortment" problem refers to rapidly increasing costs as a result of - Correct Ans-trying to serve the last 1-3 percent of customer demand with ever increasing inventory The three prerequisites that must be satisfied for goods to move "naturally" from areas of surplus to areas of shortage are that the change in total value is greater than the change in total cost, ________ , and __________ . - Correct Ans-market conditions exist, government does not prohibit Which of the following is not part of the Supply Chain network? - Correct Ans-A. Plants B. Distribution Centers **C. Stores D. Terminals Most retailers are essentially supply chain companies since - Correct Ans-they buy products produced by others. The Supply Chain Concept - Correct Ans-developed from the previous Physical Distribution concept. Which is not an important issue for economic development and vitality of the economy - Correct Ans-**A. Entrepreneurship B. Migration C. Urbanization D. None of the above According to prediction, __________, __________ and __________ will all house so called Megacities, whereas __________ will not have any cities of this size. - Correct Ans-Asia, Latin America and North America; Europe Where is a megacity most likely to develop? - Correct Ans-Asia A(n) _______ relationship exists between the cost of lost sales and inventory cost. - Correct Ans-Inverse As the dollar value of a product increases, packaging costs will: - Correct Ans-Increase SCMN3710 SCMN3710 A ______ analysis examines a logistics system over a long time period or range of output. - Correct Ans-dynamic In the short run, the firm's network is _________ while in the long run it is ________. - Correct Ans-fixed, variable Heuristic models - Correct Ans-are able to accommodate broad problem definitions. As the number of stocking points (DCs) is decreased in a distribution network, fixed costs will ____ and variable costs will ___. - Correct Ans-decrease, decrease The weighted moving average method assigns - Correct Ans-A weight to each previous period. One type of demand fluctuation is caused by random variation. What is random variation? - Correct Ans-E development that cannot normally be anticipated There are four strategies that firms can use to balance supply and demand; price, lead time, inventory, and ___ - Correct Ans-Production flexibility ABC analysis uses a single criterion to classify SKUs from most important to least important. - Correct Ans-true The term replenishment cycle refers to - Correct Ans-the acquisition of additional inventory. Customer service can be defined as - Correct Ans-Anything that touches the customer. In the SCOR Model there are five major categories of metrics that need to be used to measure the performance of Process D1: reliability, ___________, agility, costs, and asset management. - Correct Ans-responsiveness Gross margin equals - Correct Ans-sales minus COGS Which of the following is NOT a supply chain decision area regarding ROA improvement? - Correct Ans-A. Inventory Management **B. Information Management C. Channel Structure Management D. Order Management In deploying supply chains across global markets, managers seek to identify opportunities where - Correct Ans-differential value is high and total cost is low The "Infrastructure" zone on the TC/CSL tradeoff curve is characterized by - Correct Ans-fixed costs rising more rapidly than output (service) SCMN3710 SCMN3710 The "Value Proposition" that must be satisfied for the "invisible hand" to move goods from areas of surplus to areas of shortage holds that the _____ must be _______ the _______ . - Correct Ans-change in total value, greater than, change in total cost Which of the following is not an external factor that is shaping the economic and political landscape? - Correct Ans-**A. Organizational division B. Technology C. Globalization D. Government policy and regulation Traditionally, information has been viewed as flowing in the opposite direction of products, that is, from the market/customer back to the wholesalers, manufacturers, and vendors. - Correct Ans-A. Computerization has greatly increased the flow of information from the source. B. This is still true and has not changed. C. The "Big Box" stores have developed their own sources. **D. None of these answers Which of these flows only one way as illustrated in Figure 1-4? - Correct Ans-A. Information B. Products and Services C. Financials **D. None of the answers __________, __________ and __________ are the top three recipients of exports from the United States, in that order. - Correct Ans-Canada, Mexico and China The product's dollar value typically affects the cost of logistics activities. Which is not one of these costs? - Correct Ans-promotion costs As the weight density of a product decreases, transportation cost per pound will: - Correct Ans-Increase Time utility depends on - Correct Ans-Having the product available when the user wants it. The grid technique - Correct Ans-assumes that the raw materials sources and finished goods markets are fixed. When a blanket rate structure is used, which factor is eliminated as a locational determinant? - Correct Ans-transportation rate Which is true regarding optimization models? - Correct Ans-Optimization models are based on precise mathematical procedures that are guaranteed to find the "best" solution for the problem under evaluation. SCMN3710 SCMN3710 The internal balancing method deals with - Correct Ans-Inventory and production flexibility. Exponential smoothing - Correct Ans-Is one of the most commonly used techniques. As the level of substitutability for a product increases, its stockout costs to the manufacturer: - Correct Ans-increase The traditional role of customer service at the interface between marketing and logistics manifests itself through the ______ dimension of the marketing mix - Correct Ans-place Channel structure management includes decis