EXAM 21. According to the video “Mast Store – Supply Chain design,” candy sales at the Mast Store arerelatively even throughout the year and the store needs to order in small batches due to perishability issues. The steady demand and small order sizes make Mast Store candy a great example of which type of order fulfillment?a. Lean fulfillmentb. Agile fulfillmentc. Forecast fulfillmentd. Batch fulfillment2. One difference between a “joint venture” and an “ownership” relationship is:a. An ownership relationship provides less value potentialb. A joint venture requires a larger time investmentc. An ownership relationship requires more top management involvementd. A joint venture has a higher strategic impact3. How can supply chain managers lower safety stock?a. Adding days of supply to the demand forecastb. Reducing average order lead timec. Reducing demand variance through demand smoothingd. Increasing supply variance by building relationships with multiple suppliers4. What question should a supply chain manager ask about every activity in a supply chain?a. What subsequent activities rely on this activity’s proper completion?b. Is there a way to eliminate this activity?c. Does this activity add value for the customer?d. Who is responsible for performing this activity?5. If responsiveness is used to define speed in supply chain management, what word is used to define the consistency of that speed?a. Leanness b. Reliabilityc. Readinessd. Formality6. “Relocating a function or a process to another country” is called:a. Outsourcingb. External functioningc. Offshoringd. Globalization7. Which of the following flows is characterized as moving both up and down the supply chain?a. Information flowb. Product and service flowc. Funds flowd. Returns flow8. Which information flow is usually initiated closest to production, and often only hours ahead of time?a. Forecasting and Replenishmentb. Coordination and Planningc. Operations and Schedulingd. Strategy and Cooperation9. This tool gives you the system capability to talk to all the different parts of your organization and share all the data from different places in one consistent, standardized data warehouse.a. EOQb. MRPc. DRPd. ERP10. Which type of order fulfillment begins with a “Collaborative Plan”?a. Agileb. Efficientc. Just-in-timed. Lean11. Which of the following factors typically contribute to increased delays and variability of leadtimes in the global supply chain?a. An agile fulfillment modelb. Complexity required for movement of goods between countriesc. A lean fulfillment modeld. The use of cross-docking and flexible fulfillment strategiese. Complexity of exchanging different currencies12. If average daily demand for a product is 12 units and average lead-time for an order to arriveis 4 days, what is the re-order point (ROP) for the product?a. 4 unitsb. 12 unitsc. 16 unitsd. 48 units13. Which of the following trends has led to the semi-globalization of the business world?a. Reduced economic integrationb. Global competition among global companiesc. Increased economic protectionismd. Reduced rate of technological advancement14. Smile Brite toothpaste currently has manufacturing centers in Berlin, Barcelona, Brussels, and Bonn. These plants all make toothpaste using the exact same formula. Jim was just hired to reduce Smile Brite’s manufacturing costs for their European toothpaste operation. What is one option Jim could recommend?a. Utilize a focused factory system and consolidate all manufacturing operations in Berlinb. Increase production at each factory to achieve economies of scalec. Offshore all toothpaste production to Rio de Janeiro where labor is cheaper than Barcelona andBrussels and only slightly more expensive than Berlin and Bonnd. Add a production facility in Rome to serve the Italian market15. The goal of Pipeline Management includes attempting to _____ the _____ of the pipeline.a. Lower, speedb. Increase, timec. Decrease, efficiencyd. Reduce, length16. What is one way that coordination and planning information is used in supply chain management?a. Calculating the total cost of raw materials for a set period of timeb. Assigning specific tasks to specific tools at specific timesc. Determining which products to pick in order to ensure customer orders arrive on-timed. Balancing the load and capacities of different resources over time17. The amount of time it takes to convert the cash paid for raw materials to cash from customer orders/ sales is called:a. Cash-to-cash cycleb. Order cyclec. Purchase-to-profit cycled. Order-to-order cycle18. In time-based competition, how do suppliers deal with the customers’ drive for reduced inventories?a. Increase cycle stock inventory to account for customer inventory reductionsb. Centralize inventory to reduce lead times to customersc. Substitute responsiveness for inventory whenever possible d. Utilize just-in-time inventory deployment to reduce the probability of stockouts19. Diagram20. When a new product type is introduced, what inventory management philosophy should the firm utilize during the introductory stage of the product life cycle?a. Batchb. Forecast-drivenc. Leand. AgileAnswer Key:1. A2. C3. C4. C5. B6. C7. A8. C9. D10. A11. B12. D13. B14. A15. D16. D17. A18. C19. NA20.
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