Which one of the following is TRUE for supply chain management?
Supply chain applies to both manufacturing and service organizations.
A typical manufacturer spends:
more than 60% of its total income from sales on purchased services and materials.
Henderson Corporation is a supplier of alloy ball bearings to auto manufacturers in Detroit. Because of the specialized manufacturing process employed, considerable work-in-process and raw material inventories are created. The average inventory levels are
greater than 3.0
Maple Leaf, Inc., a television manufacturer, would like to reduce its inventory. To this end, you are asked by the operations manager to assess its inventory level. You have the following information on average inventories from last year's financial state
greater than three but less than four
The average inventory at Hamilton Industries, comprising raw materials, work-in-process, and finished goods, was found to be $17.2 million last year. If the cost of goods sold per week averaged $1.32 million, what was the inventory turnover experienced by
greater than 3.75 but less than 4.00
Padco averages $15 million worth of inventory in all of its worldwide locations. They operate 51 weeks a year and each week average $3 million in sales (at cost). Their inventory turnover is:
10.2 turns
Weeks of inventory and inventory turns are reflected in:
working capital
Some discount stores are able to sell items before they have to pay their suppliers, resulting in a negative:
cash to cash measure
Which one of the following statements on inventory placement of finished goods is best?
Forward placement might help reduce transportation cost.
Which location shift would qualify as forward placement?
from the manufacturer to a distribution center
Which one of the following statements about the relation between financial and supply-chain performance measures is TRUE?
Longer delivery times require higher levels of working capital.
A firm may choose to use members of the distribution channel as if they were assembly stations in the factory. Such an approach is known as:
channel assembly.
Which of the following is NOT identified in the text as a competitive advantage of a mass customization strategy?
) improvement of the quality of parts produced
________ uses a firm's flexible processes to generate a wide variety of personalized services or products at reasonably low costs.
Mass customization.
A somewhat successful computer manufacturer makes a generic computer in five exciting colors. Once orders are received, the computer guts are encased in the customer's choice of colored case at the factory. This approach to production is known as:
postponement.
A producer of medical devices makes a single model that can be customized to talk in and display any of 47 different languages. This customization is performed in one of their five regional distribution centers as firm orders are received, providing an el
channel assembly.
The supply chain management department of a major manufacturer pondered a particularly weighty make or buy decision for weeks, ultimately deciding to make, rather than buy. This decision resulted in increased:
backward integration.
Which of the following is not a benefit of outsourcing?
technology transfer to another country or company
A U.S. company faced with spiraling costs in their customer care center recreated that service in Luxembourg at a fraction of the cost. This is an example of:
offshoring
An efficient supply chain should be preferred when:
demand is highly predictable
An efficient supply chain typically has:
high inventory turns
A responsive supply chain typically has:
supply chain partners that emphasize volume flexibility.
Responsive supply chains should be preferred when:
product variety is high
The type of goods for which a responsive supply chain is appropriate are:
fashion goods
It is desirable for a firm in a responsive supply chain to have:
inventory investments as needed to enable fast delivery times.
The objective of a firm in a responsive supply chain is likely to be realized if it has a:
short lead time