SCMA EXAM 3 QUESTIONS WITH CORRECT ANSWERS GRADED A+
Which one of the following performance measures is not true of a world class firm? - Answers
Long lead time
The three stages of vendor selection, in order, are __________. - Answers vendor evaluation,
vendor development, and negotiations
Local optimization is a supply-chain complication best described as __________.
optimizing one's local area without full knowledge of the organizational need
the result of supply chains built on suppliers with compatible corporate cultures
obtaining very high production efficiency in a decentralized supply chain - Answers optimizing
one's local area without full knowledge of the organizational need
Which of the following best describes vertical integration?
To produce goods or services previously purchased
To build long-term partnerships with a few suppliers
To develop the ability to produce products which complement the original product - Answers To
produce goods or services previously purchased
Keeping a product generic as long as possible before customizing is known as __________.
postponement
forward integration
,backward integration - Answers postponement
Which of the following is not a concern of the supply chain?
Credit and cash transfers
Maintenance scheduling
Warehousing and inventory levels - Answers Maintenance scheduling
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? - Answers
7.4
6 * .6 = 3.6
8 * .1 = .8
10 * .3 = 3
sum the results 3.6 + .8 + 3 = 7.4.
Which of the following is not an advantage of the "few suppliers" concept?
Suppliers' willingness to participate in JIT systems
Sharing trade secrets between firms
Suppliers' willingness to provide technological expertise - Answers Sharing trade secrets
between firms
The transfer of some of what are traditional internal activities and resources of a firm to outside
vendors is __________.
,a make-or-buy decision
outsourcing
Keiretsu - Answers outsourcing
Consider a firm with a 2013 net income of $20 million, revenue of $60 million, and cost of goods
sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of
property, plant, and equipment, how many weeks of supply does the firm hold? - Answers 4.16
weeks
Weeks of supply = inventory investment/average weekly cost of goods sold
Weeks of supply = 2/.481
Which one of the following distribution systems offers quickness and reliability when
emergency supplies are needed overseas?
Airfreight
Waterways
Trucking - Answers Airfreight
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 __________.
the bullwhip effect
, vendor-managed inventory
a pass-through facility - Answers the bullwhip effect
Which one of the following is not a supply-chain strategy?
Short-term relationship with few suppliers
Negotiation with many suppliers
Vertical integration - Answers Short-term relationship with few suppliers
A furniture maker has delivered a dining set to the end consumer rather than to the furniture
store. The furniture maker is practicing __________.
channel assembly
postponement
drop shipping - Answers drop shipping
What term is used to describe the outsourcing of logistics?
Outside Logistics
Shipper Managed Inventory
Third-Party Logistics - Answers Third-Party Logistics
Which one of the following performance measures is not true of a world class firm? - Answers
Long lead time
The three stages of vendor selection, in order, are __________. - Answers vendor evaluation,
vendor development, and negotiations
Local optimization is a supply-chain complication best described as __________.
optimizing one's local area without full knowledge of the organizational need
the result of supply chains built on suppliers with compatible corporate cultures
obtaining very high production efficiency in a decentralized supply chain - Answers optimizing
one's local area without full knowledge of the organizational need
Which of the following best describes vertical integration?
To produce goods or services previously purchased
To build long-term partnerships with a few suppliers
To develop the ability to produce products which complement the original product - Answers To
produce goods or services previously purchased
Keeping a product generic as long as possible before customizing is known as __________.
postponement
forward integration
,backward integration - Answers postponement
Which of the following is not a concern of the supply chain?
Credit and cash transfers
Maintenance scheduling
Warehousing and inventory levels - Answers Maintenance scheduling
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? - Answers
7.4
6 * .6 = 3.6
8 * .1 = .8
10 * .3 = 3
sum the results 3.6 + .8 + 3 = 7.4.
Which of the following is not an advantage of the "few suppliers" concept?
Suppliers' willingness to participate in JIT systems
Sharing trade secrets between firms
Suppliers' willingness to provide technological expertise - Answers Sharing trade secrets
between firms
The transfer of some of what are traditional internal activities and resources of a firm to outside
vendors is __________.
,a make-or-buy decision
outsourcing
Keiretsu - Answers outsourcing
Consider a firm with a 2013 net income of $20 million, revenue of $60 million, and cost of goods
sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of
property, plant, and equipment, how many weeks of supply does the firm hold? - Answers 4.16
weeks
Weeks of supply = inventory investment/average weekly cost of goods sold
Weeks of supply = 2/.481
Which one of the following distribution systems offers quickness and reliability when
emergency supplies are needed overseas?
Airfreight
Waterways
Trucking - Answers Airfreight
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 __________.
the bullwhip effect
, vendor-managed inventory
a pass-through facility - Answers the bullwhip effect
Which one of the following is not a supply-chain strategy?
Short-term relationship with few suppliers
Negotiation with many suppliers
Vertical integration - Answers Short-term relationship with few suppliers
A furniture maker has delivered a dining set to the end consumer rather than to the furniture
store. The furniture maker is practicing __________.
channel assembly
postponement
drop shipping - Answers drop shipping
What term is used to describe the outsourcing of logistics?
Outside Logistics
Shipper Managed Inventory
Third-Party Logistics - Answers Third-Party Logistics
