ISDS 3115 FINAL QUESTIONS WITH VERIFIED
ANSWERS
A supply chain ends with - Answers - a satisfied customer
Which of the following is NOT true? - Answers - An increased sales effort may help a
firm reach its profit goals more easily than would effective cost cutting.
Which of the following industries has the highest supply chain cost as a percentage of
sales? - Answers - Petroleum
A response strategy requires suppliers be selected based primarily on - Answers -
capacity, speed, and flexibility.
Which of the following statements is NOT one of the differentiation strategy decisions? -
Answers - Use buffer stocks to ensure speedy supply.
Prior to embarking on supply chain design, operations managers must first consider -
Answers - "make-or-buy" and outsourcing decisions.
What is transferring a firm's activities that have traditionally been internal to external
suppliers? - Answers - Outsourcing
Which of the following statements is NOT one of the response strategy decisions? -
Answers - gather and communicate market research data
The advantage of having few suppliers is to - Answers - form a long-term relationship.
The advantage of having many potential suppliers is their willingness to - Answers -
offer lower prices in the short run term.
What is developing the ability to produce goods or services previously purchased or
actually buying a supplier or a distributor? - Answers - vertical integration
Which of the following strategies is part collaboration, part purchasing from few
suppliers, and part vertical integration? - Answers - keiretsu networks
Which of the following could reduce distribution risk? - Answers - Careful selection,
monitoring and effective contracts with penalties
Which of the following mitigation tactics could reduce economic risk? - Answers -
purchasing contracts that address price fluctuations
,Which of the following mitigation tactics is NOT designed to reduce the risk of
information loss or distortion? - Answers - alternate sourcing
Which of the following statements is true regarding cross-sourcing? - Answers - Cross-
sourcing uses one supplier for a component and a second supplier for another
component, where each supplier acts as a backup for the other.
Which of the following statements is NOT true regarding the bullwhip effect? - Answers -
The bullwhip effect occurs as order are relayed from retails, to distributors, to
wholesalers, to manufactures, with fluctuations decreasing at each step in the
sequence.
What is a long-term purchase commitment to a supplier for items that are to be
delivered against short-term releases to ship? - Answers - blanket order
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: - Answers - vendor-managed inventory
The do-it-yourselfer plucked a gallon can of base paint from the shelf of the local
hardware store and handed it to Keith, the cheerful clerk at the paint counter. Their eyes
met briefly and the do-it-yourselfer silently handed over sample 150C-1, Musical Mist, to
the clerk. It was impractical to keep several gallons of every possible color on the
shelves at the hardware store so the paint manufacturer had created clever
workaround. The workaround was a computer based system that added predetermined
quantities of pigments to a gallon can of base paint depending on the desired shade, in
this case, Musical Mist. The hardware store now needed to stock only the base paint,
this machine, and a small supply of paint pigments in order to create the thousands of
colors in their catalog.
This scenario is a prime example of - Answers - postponement
Which of the following is the first stage of supplier selection? - Answers - supplier
evaluation
Which negotiation strategy bases price on a published, auction, or index price? -
Answers - market-based price model
With regard to the cost-based price model negotiation strategy, which of the following is
true? - Answers - Prices are based upon supplier costs.
Which of the following is NOT one of the benefits accrued from a centralized purchasing
function? - Answers - Increase the duplication of tasks.
, Trucking - Answers - is increasingly using computers to manage its operations.
Airfreight - Answers - is a fast-growing mode of shipping.
Supply chain mangers outsource logistics to meet three goals: - Answers - drive down
inventory investment, lower delivery costs, and improve delivery reliability and speed.
Which of the following statements is NOT true regarding channel assembly? - Answers -
Channel assembly sends individual components, modules, and finished products, to the
distributor.
Three criteria for designing distribution networks to meet customer expectations are -
Answers - rapid response, product choice, service.
Which of the following statements is NOT generally an implication stemming from an
increase in the number of facilities? - Answers - decreased total logistics cost
When determining the optimal number of facilities, logistics-related costs do NOT
usually include which of the following costs? - Answers - purchasing
Which of the following statements is NOT true? - Answers - Finding the optimal number
of facilities represents a critical and static decision.
Which of the following statements is NOT true? - Answers - A closed-loop supply chain
is a designed to optimize only reverse flows.
Which of the following is NOT true about reverse logistics as compared to forward
logistics? - Answers - Speed is often very important
What is a supply chain designed to optimize both forward and reverse flows? - Answers
- closed-loop supply chain
Which organization has developed principles and standards to be used as guidelines for
ethical behavior? - Answers - Institute for Supply Management
Three common measure of supply chain performance are: - Answers - percentage
invested in inventory, inventory turnover, and weeks of supply.
The cost to produce the goods or services sold for a given period if referred to as -
Answers - cost of goods sold
One us of inventory is - Answers - to provide a hedge against inflation.
The objective of inventory management is to - Answers - strike a balance between
inventory investment and customer service.
ANSWERS
A supply chain ends with - Answers - a satisfied customer
Which of the following is NOT true? - Answers - An increased sales effort may help a
firm reach its profit goals more easily than would effective cost cutting.
Which of the following industries has the highest supply chain cost as a percentage of
sales? - Answers - Petroleum
A response strategy requires suppliers be selected based primarily on - Answers -
capacity, speed, and flexibility.
Which of the following statements is NOT one of the differentiation strategy decisions? -
Answers - Use buffer stocks to ensure speedy supply.
Prior to embarking on supply chain design, operations managers must first consider -
Answers - "make-or-buy" and outsourcing decisions.
What is transferring a firm's activities that have traditionally been internal to external
suppliers? - Answers - Outsourcing
Which of the following statements is NOT one of the response strategy decisions? -
Answers - gather and communicate market research data
The advantage of having few suppliers is to - Answers - form a long-term relationship.
The advantage of having many potential suppliers is their willingness to - Answers -
offer lower prices in the short run term.
What is developing the ability to produce goods or services previously purchased or
actually buying a supplier or a distributor? - Answers - vertical integration
Which of the following strategies is part collaboration, part purchasing from few
suppliers, and part vertical integration? - Answers - keiretsu networks
Which of the following could reduce distribution risk? - Answers - Careful selection,
monitoring and effective contracts with penalties
Which of the following mitigation tactics could reduce economic risk? - Answers -
purchasing contracts that address price fluctuations
,Which of the following mitigation tactics is NOT designed to reduce the risk of
information loss or distortion? - Answers - alternate sourcing
Which of the following statements is true regarding cross-sourcing? - Answers - Cross-
sourcing uses one supplier for a component and a second supplier for another
component, where each supplier acts as a backup for the other.
Which of the following statements is NOT true regarding the bullwhip effect? - Answers -
The bullwhip effect occurs as order are relayed from retails, to distributors, to
wholesalers, to manufactures, with fluctuations decreasing at each step in the
sequence.
What is a long-term purchase commitment to a supplier for items that are to be
delivered against short-term releases to ship? - Answers - blanket order
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: - Answers - vendor-managed inventory
The do-it-yourselfer plucked a gallon can of base paint from the shelf of the local
hardware store and handed it to Keith, the cheerful clerk at the paint counter. Their eyes
met briefly and the do-it-yourselfer silently handed over sample 150C-1, Musical Mist, to
the clerk. It was impractical to keep several gallons of every possible color on the
shelves at the hardware store so the paint manufacturer had created clever
workaround. The workaround was a computer based system that added predetermined
quantities of pigments to a gallon can of base paint depending on the desired shade, in
this case, Musical Mist. The hardware store now needed to stock only the base paint,
this machine, and a small supply of paint pigments in order to create the thousands of
colors in their catalog.
This scenario is a prime example of - Answers - postponement
Which of the following is the first stage of supplier selection? - Answers - supplier
evaluation
Which negotiation strategy bases price on a published, auction, or index price? -
Answers - market-based price model
With regard to the cost-based price model negotiation strategy, which of the following is
true? - Answers - Prices are based upon supplier costs.
Which of the following is NOT one of the benefits accrued from a centralized purchasing
function? - Answers - Increase the duplication of tasks.
, Trucking - Answers - is increasingly using computers to manage its operations.
Airfreight - Answers - is a fast-growing mode of shipping.
Supply chain mangers outsource logistics to meet three goals: - Answers - drive down
inventory investment, lower delivery costs, and improve delivery reliability and speed.
Which of the following statements is NOT true regarding channel assembly? - Answers -
Channel assembly sends individual components, modules, and finished products, to the
distributor.
Three criteria for designing distribution networks to meet customer expectations are -
Answers - rapid response, product choice, service.
Which of the following statements is NOT generally an implication stemming from an
increase in the number of facilities? - Answers - decreased total logistics cost
When determining the optimal number of facilities, logistics-related costs do NOT
usually include which of the following costs? - Answers - purchasing
Which of the following statements is NOT true? - Answers - Finding the optimal number
of facilities represents a critical and static decision.
Which of the following statements is NOT true? - Answers - A closed-loop supply chain
is a designed to optimize only reverse flows.
Which of the following is NOT true about reverse logistics as compared to forward
logistics? - Answers - Speed is often very important
What is a supply chain designed to optimize both forward and reverse flows? - Answers
- closed-loop supply chain
Which organization has developed principles and standards to be used as guidelines for
ethical behavior? - Answers - Institute for Supply Management
Three common measure of supply chain performance are: - Answers - percentage
invested in inventory, inventory turnover, and weeks of supply.
The cost to produce the goods or services sold for a given period if referred to as -
Answers - cost of goods sold
One us of inventory is - Answers - to provide a hedge against inflation.
The objective of inventory management is to - Answers - strike a balance between
inventory investment and customer service.
