Pitt. Challenge 2008SCMN/ Relationships

February 28, 2008

1). The inventory required to meet demand under conditions of certainty, is called _________.

a. EOQ b. average inventoryc. SSd. average cycle stock

1). The inventory required to meet demand under conditions of certainty, is called _________

 a. EOQ b. average inventoryc. SSd. average cycle stock

2) What best characterizes outsourcing in the 1980s?a. agreements were transactional orientedb. offering value-added services was trendy c. concentration on productivity and long-

term contractsd. concentrate on core competencies

2) What best characterizes outsourcing in the 1980s?a. agreements were transactional orientedb. offering value-added services was

trendy c. concentration on productivity and long-

term contractsd. concentrate on core competencies

3). Simple EOQ is:a. efficient order quantityb. a balancing of inventory carrying cost and

transportation cost c. a balancing of set-up cost and inventory

carrying costd. economic inventory level under conditions

of uncertainty

3). Simple EOQ is:a. efficient order quantityb. a balancing of inventory carrying cost and

transportation cost c. a balancing of set-up cost and

inventory carrying costd. economic inventory level under conditions

of uncertainty

4). As a firm orders in larger quantities:a. order cost decrease and inventory carrying

cost increaseb. order cost increase and inventory carrying

cost decreasec. order cost decrease and inventory carrying

cost decreased. order cost increase and inventory carrying

cost increases

4). As a firm orders in larger quantities:a. order cost decrease and inventory

carrying cost increaseb. order cost increase and inventory carrying

cost decreasec. order cost decrease and inventory carrying

cost decreased. order cost increase and inventory carrying

cost increases

5). Outsourcing allows firms to:a. correct mistakes at a lower costb. better control transactionsc. identify quality issues faster d. better negotiate with customers

5). Outsourcing allows firms to:a. correct mistakes at a lower costb. better control transactionsc. identify quality issues faster d. better negotiate with customers

6) In expanded supply chain management, what are the three basic flows that are critical for supply chain partners to coordinate and jointly manage:

a. Product, Information and Advertising

b. Cash, Information and Product c. Information, Advertising and Cash d. Information, Product and Training

6) In expanded supply chain management, what are the three basic flows that are critical for supply chain partners to coordinate and jointly manage:

a. Product, Information and Advertising

b. Cash, Information and Product c. Information, Advertising and Cash d. Information, Product and Training

7) The value-added role of logistics generally includes direct responsibility for providing which of the following: a. Place and Form Utility b. Time and Place Utility c. Possession and Time Utility d. Value and Form Utility

7) The value-added role of logistics generally includes direct responsibility for providing which of the following: a. Place and Form Utility b. Time and Place Utility c. Possession and Time Utility d. Value and Form Utility

8). Which of the following is not a critical factor in supply chain flow optimization

a. Space b. Linkage c. Velocity d. Variability management

8). Which of the following is not a critical factor in supply chain flow optimization

a. Space b. Linkage c. Velocity d. Variability management

9)Which of the following activities would not be included within reverse logistics?

A)finished goods distributionB) recyclingC) product and packaging reuseD) salvage and scrap disposalE) waste disposal

9)Which of the following activities would not be included within reverse logistics?

A)finished goods distributionB) recyclingC) product and packaging reuseD) salvage and scrap disposalE) waste disposal

Which of the following is not a benefit associated with successful implementation of MRP systems?

A)better manufacturing controlB)higher inventory turnover ratio(s)C)more accurate and timely informationD)reduction in purchasing costs due to fewer

orders being placed E) work force overtime is minimized

Which of the following is not a benefit associated with successful implementation of MRP systems?

A)better manufacturing controlB)higher inventory turnover ratio(s)C)more accurate and timely informationD)reduction in purchasing costs due to

fewer orders being placed E) work force overtime is minimized

Which of the following statements about the cost and service considerations in global logistics is FALSE?

A)The distances involved are much longer.B)Most international freight (measured by

weight) moves by air. C)Order completeness is much more

important.D) There are higher costs associated with

shipping errors than in domestic logistics.E) None of the above statements are FALSE.

Which of the following statements about the cost and service considerations in global logistics is FALSE?

A)The distances involved are much longer.B)Most international freight (measured by

weight) moves by air. C)Order completeness is much more

important.D) There are higher costs associated with

shipping errors than in domestic logistics.E) None of the above statements are FALSE.

Control over logistics costs can be accomplished by:

A)standard costsB)absorption costingC)productivity standards

D) A and C only

Control over logistics costs can be accomplished by:

A)standard costsB)absorption costingC)productivity standards

D) A and C only

According to the current CLM definition of logistics, the relationship between logistics and supply chain is:

 A)they are synonymous B)supply chain is a part of logisticsC)logistics is a part of supply chain D)they are antonyms E)they are both part of the marketing channel

According to the current CLM definition of logistics, the relationship between logistics and supply chain is:

 A)they are synonymous B)supply chain is a part of logisticsC)logistics is a part of supply chainD)they are antonyms E)they are both part of the marketing channel

14). All of the following are characteristics of a supply chain management perspective (as opposed to a more traditional view of logistics/conventional channels), except: a. Members of the supply chain

acknowledge interdependence b. Inventories are used as a mechanism

of first, rather than last resort c. The supply chain is viewed as a single

entity: competition is not with other firms in the supply chain but with other supply chains

d. Supply chains are actively managed in both the upstream and downstream directions

14). All of the following are characteristics of a supply chain management perspective (as opposed to a more traditional view of logistics/conventional channels), except: a. Members of the supply chain

acknowledge interdependence b. Inventories are used as a

mechanism of first, rather than last resort c. The supply chain is viewed as a single

entity: competition is not with other firms in the supply chain but with other supply chains

d. Supply chains are actively managed in both the upstream and downstream directions

A manager may pay more for one element of service in order to save an even larger amount on a different element. This is called _____________.

A)suboptimizationB)cost tradeoffC)supply chain managementD)efficient consumer response

A manager may pay more for one element of service in order to save an even larger amount on a different element. This is called _____________.

A)suboptimizationB)cost tradeoffC)supply chain managementD)efficient consumer response

Pitt. Challenge March 6, 2008

Supply Chain Relationships

1)Which is NOT one of the Four Phases of Supply Management?A) Generation of RequirementsB) SourcingC) PricingD) Materials HandlingE) Post- Award Activities

Which is NOT one of the Four Phases of Supply Management?A) Generation of RequirementsB) SourcingC) PricingD) Materials HandlingE) Post- Award Activities

2)Which is NOT one of the five major developments of supply management?A) Cross-functional teamsB) Supply AlliancesC) Logistics D) Strategic SourcingE) E-Procurement

Which is NOT one of the five major developments of supply management?A) Cross-functional teamsB) Supply AlliancesC) Logistics D) Strategic SourcingE) E-Procurement

3)Which is NOT one of the Primary benefits of a Supply Alliance?A) Increased Time to MarketB) Improved QualityC) Improved Technology Flow From

SuppliersD) Improved Continuity of Supply

E) Lower Total Costs

Which is NOT one of the Primary benefits of a Supply Alliance?A) Increased Time to MarketB) Improved QualityC) Improved Technology Flow From

SuppliersD) Improved Continuity of Supply

E) Lower Total Costs

4)Which is a Disadvantage of E-Commerce’s relationship with Supply MNGT?A) Enables companies to share information

about quality problemsB) Identify Internet supplier’s throughout the

Internet-connected worldC) Frequently requires integrating D) Helps enable collaboration

Which is a Disadvantage of E-Commerce’s relationship with Supply MNGT?A) Enables companies to share information

about quality problemsB) Identify Internet supplier’s throughout the

Internet-connected worldC) Frequently requires integrating D) Helps enable collaboration

5)The term supply chain management A)was coined by consultants at Booz-Allen &

Hamilton in the 1980's B)was introduced to draw attention to the

changing role of the logistics manager C)was introduced to draw attention to the need

for a perspective that recognizes the strategic importance of logistics and an integrated system-wide outlook when improving logistics processes

D)Both b and c E)All of the above.

The term supply chain management A)was coined by consultants at Booz-Allen &

Hamilton in the 1980's B)was introduced to draw attention to the

changing role of the logistics manager C)was introduced to draw attention to the need

for a perspective that recognizes the strategic importance of logistics and an integrated system-wide outlook when improving logistics processes

D)Both b and c E)All of the above.

6)To say SCM is important because of dollars means that : A)it is expensive to change how supply

chains are managed B)SCM focuses on the movement of

money in international trade C)a lot of money is spent on SCM

activities D)the cost of capital is higher for well

developed supply chains E)Both a and d

To say SCM is important because of dollars means that : A)it is expensive to change how supply

chains are managed B)SCM focuses on the movement of

money in international trade C)a lot of money is spent on SCM

activities D)the cost of capital is higher for well

developed supply chains E)Both a and d

7) TQM: A)stands for timeliness and quality of

management B)is an organization-wide effort directed

towards the continuous improvement of quality

C)relies on information technology D)was introduced in the early 1900's E)Both b and c

TQM A)stands for timeliness and quality of

management B)is an organization-wide effort directed

towards the continuous improvement of quality

C)relies on information technology D)was introduced in the early 1900's E)Both b and c

8) JIT: A)was initially developed and implemented

at Toyota B)has evolved over time and has been

adapted in a wide range of sectors C)is commonly known in industry today as

lean D)Both b and c E)All of the above

JIT: A)was initially developed and implemented

at Toyota B)has evolved over time and has been

adapted in a wide range of sectors C)is commonly known in industry today as

lean D)Both b and c E)All of the above

9) The supply chain product matrix: A)classifies products according to

predictability of demand B)classifies the supply chain according to

industry C)indicates that a responsive supply chain

should be matched with functional products D)indicates that an efficient supply chain should be matched with innovative products

E)Both a and d

The supply chain product matrix: A)classifies products according to

predictability of demand B)classifies the supply chain according to

industry C)indicates that a responsive supply chain

should be matched with functional products D)indicates that an efficient supply chain should be matched with innovative products

E)Both a and d

10) Regarding the characteristics of a responsive supply chain, A)the primary purpose is to respond quickly to

unpredictable demand in order to minimize stockouts, forced markdowns, and obsolete inventory

B)excess buffer capacity is maintained rather than striving for high utilization

C)suppliers are selected primarily for speed, flexibility, and quality rather than cost and quality

D)products are designed to be modular rather than to maximize performance and minimize cost

E)All of the above

Regarding the characteristics of a responsive supply chain, A)the primary purpose is to respond quickly to

unpredictable demand in order to minimize stockouts, forced markdowns, and obsolete inventory

B)excess buffer capacity is maintained rather than striving for high utilization

C)suppliers are selected primarily for speed, flexibility, and quality rather than cost and quality

D)products are designed to be modular rather than to maximize performance and minimize cost

E)All of the above

SCOR:A) stands for supply chain order and

replenishment B) is part of the supply chain-product matrix C) specifies a framework for describing

supply chain processes with associated terminology, metrics, and best practices

D) Both a and b E) Both a and c

SCOR:A) stands for supply chain order and

replenishment B) is part of the supply chain-product matrix C) specifies a framework for describing

supply chain processes with associated terminology, metrics, and best practices

D) Both a and b E) Both a and c

Regarding causes of system slack and principles of nature,A) the longer the time lags, the greater the

uncertainty due to the trumpet of doom. B) quantity uncertainty contributes to long

flowtimes and congestion due to the curse of variability

C) cross-training reduces quantity uncertainty, and consequently flowtimes and congestion, due to the law of large numbers

D) time lags contribute to the bullwhip effect in supply chains

E) All of the above

Regarding causes of system slack and principles of nature,A) the longer the time lags, the greater the

uncertainty due to the trumpet of doom. B) quantity uncertainty contributes to long

flowtimes and congestion due to the curse of variability

C) cross-training reduces quantity uncertainty, and consequently flowtimes and congestion, due to the law of large numbers

D) time lags contribute to the bullwhip effect in supply chains

E) All of the above

The process-product matrixA) classifies processes according degree of

cleanliness B) classifies products according to cost

C) is a framework for detecting misalignment between the business strategy and the supply chain metrics/processes

D) Both b and c E) All of the above

The process-product matrixA) classifies processes according degree of

cleanliness B) classifies products according to cost

C) is a framework for detecting misalignment between the business strategy and the supply chain metrics/processes

D) Both b and c E) All of the above

Six SigmaA) is relevant for the service sector and the

manufacturing sector B) is not related to TQM C) is a quality improvement initiative that

instills an attitude and expertise for reducing variability and waste and increasing consistency in outputs

D) Both a and c E) Both a and b

Six SigmaA) is relevant for the service sector and the

manufacturing sector B) is not related to TQM C) is a quality improvement initiative that

instills an attitude and expertise for reducing variability and waste and increasing consistency in outputs

D) Both a and c E) Both a and b

POLCA:A) stands for production with on-line cells

and automation B) is suitable for products with stable

demand C) uses cards to pull work through the cells D) cards are the same as kanban cards E) cards signal that material is needed

POLCA:A) stands for production with on-line cells

and automation B) is suitable for products with stable

demand C) uses cards to pull work through the

cells D) cards are the same as kanban cards E) cards signal that material is needed