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Exam 13: Supply-Chain Management

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Question 1

Multiple Choice

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By which distribution system is 90 percent of U.S. coal shipped?

A) railroads
B) trucks
C) waterways
D) pipelines
E) none of the above

F) A) and C)
G) A) and B)

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Question 2

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One classic type of negotiation strategy is the market-based price model.

A) True
B) False

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Question 3

Multiple Choice

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Giving quantity discounts based on annual volume instead of single order size helps to control which supply-chain issue?

Because service firms do not acquire goods and services externally, their supply-chain management issues are insignificant.

Which one of the following distribution systems offers quickness and reliability when emergency supplies are needed overseas?

In supply-chain management, ethical issues

A company is deciding where to assign its summer intern. The manager estimates that the intern can save the company $10,000 in supply chain costs. What increase in sales (revenue) by the intern is required to show an equal profit? $\begin{array} { | l | l | l | l | } \hline & \begin{array} { l } \text { Supply Chain } \\\text { costs }\end{array} & \begin{array} { l } \text { Variable Costs } \\\text { (materials) }\end{array} & \text { Profits } \\\hline \% \text { of current } & & & \\\text { sales } \\\text { (revenue) } & 35 & 25 & 40 \\\hline\end{array}$

What are the special requirements of supply-chain systems in global environments?

The supply-chain management opportunity called postponement involves delaying deliveries to avoid accumulation of inventory at the customer's site.

__________ is a Japanese term to describe suppliers who become part of a company coalition.

What is e-procurement?

One dollar saved in purchasing is

In the vendor evaluation phase, most companies will use the same list of criteria and the same criteria weights.

A fried chicken fast-food chain that acquired feed mills and poultry farms has performed

Consider a firm with a 2007 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 & equipment, how many weeks of supply does the firm hold?

Identify the advantages and disadvantages of using the few suppliers approach.

What is a keiretsu?

A container of ball-bearings valued at $25,000, currently located in Houston, TX, needs to be delivered to the Morton, IL, plant. The standard shipment method takes two days. However, for an additional charge of $500, the container can be sent overnight. The annual holding cost rate for this type of item has been estimated at 28%. What option is more economical?

Of all areas of the organization, why is the supply chain especially vulnerable to ethical lapses?

Drop shipment