SCMN/ Relationships
February 28, 2008
1). The inventory required to meet demand under
conditions of certainty, is called _________.
 a. EOQ
 b. average inventory
 c. SS
 d. average cycle stock
1). The inventory required to meet demand
under conditions of certainty, is called _________
 a. EOQ
 b. average inventory
 c. SS
 d. average cycle stock
2) What best characterizes outsourcing in
the 1980s?
 a. agreements were transactional oriented
 b. offering value-added services was trendy
 c. concentration on productivity and long-term
contracts
 d. concentrate on core competencies
2) What best characterizes outsourcing in
the 1980s?
 a. agreements were transactional oriented
 b. offering value-added services was trendy
 c. concentration on productivity and long-term
contracts
 d. concentrate on core competencies
3). Simple EOQ is:
 a. efficient order quantity
 b. a balancing of inventory carrying cost and
transportation cost
 c. a balancing of set-up cost and inventory carrying
cost
 d. economic inventory level under conditions of
uncertainty
3). Simple EOQ is:
 a. efficient order quantity
 b. a balancing of inventory carrying cost and
transportation cost
 c. a balancing of set-up cost and inventory
carrying cost
 d. economic inventory level under conditions of
uncertainty
4). As a firm orders in larger
quantities:
 a. order cost decrease and inventory carrying cost
increase
 b. order cost increase and inventory carrying cost
decrease
 c. order cost decrease and inventory carrying cost
decrease
 d. order cost increase and inventory carrying cost
increases
4). As a firm orders in larger
quantities:
 a. order cost decrease and inventory carrying cost
increase
 b. order cost increase and inventory carrying cost
decrease
 c. order cost decrease and inventory carrying cost
decrease
 d. order cost increase and inventory carrying cost
increases
5). Outsourcing allows firms to:
 a. correct mistakes at a lower cost
 b. better control transactions
 c. identify quality issues faster
 d. better negotiate with customers
5). Outsourcing allows firms to:
 a. correct mistakes at a lower cost
 b. better control transactions
 c. 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.
b.
c.
d.
Product, Information and Advertising
Cash, Information and Product
Information, Advertising and Cash
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.
b.
c.
d.
Product, Information and Advertising
Cash, Information and Product
Information, Advertising and Cash
Information, Product and Training
7) The value-added role of logistics
generally includes direct responsibility for
providing which of the following:




a.
b.
c.
d.
Place and Form Utility
Time and Place Utility
Possession and Time Utility
Value and Form Utility
7) The value-added role of logistics
generally includes direct responsibility for
providing which of the following:




a.
b.
c.
d.
Place and Form Utility
Time and Place Utility
Possession and Time Utility
Value and Form Utility
8). Which of the following is not a critical factor in
supply chain flow optimization




a.
b.
c.
d.
Space
Linkage
Velocity
Variability management
8). Which of the following is not a critical factor in
supply chain flow optimization




a.
b.
c.
d.
Space
Linkage
Velocity
Variability management
9)Which of the following activities would
not be included within reverse logistics?
 A)finished goods distribution
 B) recycling
 C) product and packaging reuse
 D) salvage and scrap disposal
 E) waste disposal
9)Which of the following activities would
not be included within reverse logistics?
 A)finished goods distribution
 B) recycling
 C) product and packaging reuse
 D) salvage and scrap disposal
 E) waste disposal
Which of the following is not a benefit
associated with successful implementation
of MRP systems?
 A)better manufacturing control
 B)higher inventory turnover ratio(s)
 C)more accurate and timely information
 D)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 control
 B)higher inventory turnover ratio(s)
 C)more accurate and timely information
 D)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 costs
B)absorption costing
C)productivity standards
D) A and C only
Control over logistics costs can be
accomplished by:
A)standard costs
B)absorption costing
C)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 logistics
 C)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 logistics
 C)logistics is a part of supply chain
 D)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)suboptimization
 B)cost tradeoff
 C)supply chain management
 D)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)suboptimization
 B)cost tradeoff
 C)supply chain management
 D)efficient consumer response
March 6, 2008
Supply Chain Relationships
1)Which is NOT one of the Four Phases of
Supply Management?
 A) Generation of Requirements
 B) Sourcing
 C) Pricing
 D) Materials Handling
 E) Post- Award Activities
Which is NOT one of the Four Phases of
Supply Management?
 A) Generation of Requirements
 B) Sourcing
 C) Pricing
 D) Materials Handling
 E) Post- Award Activities
2)Which is NOT one of the five major
developments of supply management?
 A) Cross-functional teams
 B) Supply Alliances
 C) Logistics
 D) Strategic Sourcing
 E) E-Procurement
Which is NOT one of the five major
developments of supply management?
 A) Cross-functional teams
 B) Supply Alliances
 C) Logistics
 D) Strategic Sourcing
 E) E-Procurement
3)Which is NOT one of the Primary benefits
of a Supply Alliance?
 A) Increased Time to Market
 B) Improved Quality
 C) Improved Technology Flow From Suppliers
D) Improved Continuity of Supply
E) Lower Total Costs
Which is NOT one of the Primary benefits of
a Supply Alliance?
 A) Increased Time to Market
 B) Improved Quality
 C) Improved Technology Flow From Suppliers
D) 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 problems
 B) Identify Internet supplier’s throughout the
Internet-connected world
 C) 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 problems
 B) Identify Internet supplier’s throughout the
Internet-connected world
 C) 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 matrix
 A) 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 matrix
 A) 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 Sigma
 A) 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 Sigma
 A) 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