SCM 414 EXAM 1 QUESTIONS & ANSWERS
Which of the following is NOT a function of Global Supply Chain Management? -
Answers -Maintenance
A Global Distribution Center (or warehouse) may have the capability to customize
products? - Answers -False
Company A in Frankfurt receives shipments from plants located in Amsterdam,
Copenhagen, and Paris, and subsequently combines these shipments for delivery to a
retailer in Eastern Europe. What type of distribution center or warehouse is Company A
operating? - Answers -Consolidation DC
Company B in Amsterdam receives a large shipment from a plant in Frankfurt and then
coordinates shipments to retailers in Belgium, France, and the Netherlands. What type
of distribution center or warehouse is Company B operating? - Answers -Order
Assembly DC
Which of the following distribution centers is also considered a "first-tier" supplier? -
Answers -Order Assembly DC
Which of the following is NOT a KEY operational activity of a Distribution Center? -
Answers -Manufacturing
If you go into a retail store to buy groceries, what type of packaging will your product(s)
most likely be in? - Answers -Primary
________ typically represents the largest percentage of any logistics budget. - Answers
-Transportation
What type of transportation is being used when a product in a container is moved
through multiple modes of transportation? - Answers -Intermodal transportation
______ refers to all the activities associated with a product or service after the point of
sale. - Answers -Reverse Logistics
_______ occurs when a multinational corporation buys products or services from one of
its suppliers that produces them somewhere else, whether domestically or globally. -
Answers -Outsourcing
_______ occurs when a multinational corporation decides to start producing products
internally. - Answers -Insourcing
, _______ occurs when a multinational corporation buys products or services from one of
its suppliers that produces them outside the MNC's home country. - Answers -
Offshoring
_______ happens when a multinational corporation transfers business or information
technology processes to suppliers in a nearby country - often sharing a border. -
Answers -Near-shoring
_______ occurs when a multinational corporation buys parts of its business and
information technology services from the optimal set of internal and external providers. -
Answers -Multi-sourcing
The ________ buys from domestic suppliers in domestic markets with no involvement
by the headquarters of the multinational corporation. - Answers -Free Local Customer
The ________ buys from domestic suppliers in domestic market with the multinational
corporation's headquarters mandating standards and/or products. - Answers -
Controlled Local Customer
The ________ buys from foreign suppliers in foreign markets with no involvement by
the headquarters of the multinational corporation. - Answers -Foreign Customer
Which approach should be followed when selecting Global Suppliers? - Answers -
Selection approach should be structured to ensure orderly, strategic and appropriate
selection of the global supplier.
_______ are supplier networks that are independent of any firm. - Answers -Global
Supplier Network
The Global Operations function of Global Supply Chain Management may encompass
the reconfiguration of business operations related to product and/or service production.
- Answers -True
The make-or-buy decision for a global firm is the strategic decision concerning: -
Answers -Production or Manufacturing
Which TWO factors are KEY considerations in the make-or-buy decision? - Answers -
Cost and production capacity.
A pharmaceutical company is very concerned about the quality of the components that
go into its drugs. What strategy is the company more likely to follow? - Answers -Make
A construction company lacks the expertise in developing a state-of-the-art spare part
that goes into its heavy-duty crane. What strategy should the company follow regarding
the spare part? - Answers -Buy
Which of the following is NOT a function of Global Supply Chain Management? -
Answers -Maintenance
A Global Distribution Center (or warehouse) may have the capability to customize
products? - Answers -False
Company A in Frankfurt receives shipments from plants located in Amsterdam,
Copenhagen, and Paris, and subsequently combines these shipments for delivery to a
retailer in Eastern Europe. What type of distribution center or warehouse is Company A
operating? - Answers -Consolidation DC
Company B in Amsterdam receives a large shipment from a plant in Frankfurt and then
coordinates shipments to retailers in Belgium, France, and the Netherlands. What type
of distribution center or warehouse is Company B operating? - Answers -Order
Assembly DC
Which of the following distribution centers is also considered a "first-tier" supplier? -
Answers -Order Assembly DC
Which of the following is NOT a KEY operational activity of a Distribution Center? -
Answers -Manufacturing
If you go into a retail store to buy groceries, what type of packaging will your product(s)
most likely be in? - Answers -Primary
________ typically represents the largest percentage of any logistics budget. - Answers
-Transportation
What type of transportation is being used when a product in a container is moved
through multiple modes of transportation? - Answers -Intermodal transportation
______ refers to all the activities associated with a product or service after the point of
sale. - Answers -Reverse Logistics
_______ occurs when a multinational corporation buys products or services from one of
its suppliers that produces them somewhere else, whether domestically or globally. -
Answers -Outsourcing
_______ occurs when a multinational corporation decides to start producing products
internally. - Answers -Insourcing
, _______ occurs when a multinational corporation buys products or services from one of
its suppliers that produces them outside the MNC's home country. - Answers -
Offshoring
_______ happens when a multinational corporation transfers business or information
technology processes to suppliers in a nearby country - often sharing a border. -
Answers -Near-shoring
_______ occurs when a multinational corporation buys parts of its business and
information technology services from the optimal set of internal and external providers. -
Answers -Multi-sourcing
The ________ buys from domestic suppliers in domestic markets with no involvement
by the headquarters of the multinational corporation. - Answers -Free Local Customer
The ________ buys from domestic suppliers in domestic market with the multinational
corporation's headquarters mandating standards and/or products. - Answers -
Controlled Local Customer
The ________ buys from foreign suppliers in foreign markets with no involvement by
the headquarters of the multinational corporation. - Answers -Foreign Customer
Which approach should be followed when selecting Global Suppliers? - Answers -
Selection approach should be structured to ensure orderly, strategic and appropriate
selection of the global supplier.
_______ are supplier networks that are independent of any firm. - Answers -Global
Supplier Network
The Global Operations function of Global Supply Chain Management may encompass
the reconfiguration of business operations related to product and/or service production.
- Answers -True
The make-or-buy decision for a global firm is the strategic decision concerning: -
Answers -Production or Manufacturing
Which TWO factors are KEY considerations in the make-or-buy decision? - Answers -
Cost and production capacity.
A pharmaceutical company is very concerned about the quality of the components that
go into its drugs. What strategy is the company more likely to follow? - Answers -Make
A construction company lacks the expertise in developing a state-of-the-art spare part
that goes into its heavy-duty crane. What strategy should the company follow regarding
the spare part? - Answers -Buy
