Information distortion is exaggerated by the fact that
A) supply chains today produce a large amount of product variety.
B) supply chains today produce a small amount of product variety.
C) the telephone effect is extreme in situations where technology is
Supply chains today produce a large amount of product variety.
The situation in which fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers is known as
A) market fluctuations.
B) the whiplash effect.
C) the bullwhip effect.
D) lack of visibility.
The bullwhip effect.
The bullwhip effect causes
A) maximization of supply chain surplus.
B) improved accuracy of demand information within the supply chain.
C) different stages of the supply chain to have a very different estimate of what demand looks like.
D) less need for a
Different stages of the supply chain to have a very different estimate of what demand looks like.
The lack of coordination within a supply chain will result in a decrease in
A) manufacturing cost.
B) inventory cost.
C) replenishment lead time.
D) level of product availability.
Level of product availability.
The lack of coordination within a supply chain will result in an increase in
A) profitability.
B) inventory accuracy.
C) replenishment lead time.
D) level of product availability.
Replenishment lead time.
Long term boom and bust cycles that mimic the bullwhip effect include
A) calendars and greeting cards.
B) the length of hemlines.
C) university textbooks.
D) memory chips for personal computers.
Memory chips for personal computers.
The bullwhip effect decreases
A) product availability.
B) manufacturing cost.
C) replenishment lead time.
D) transportation cost.
Product availability.
The bullwhip effect decreases
A) transportation cost.
B) profitability.
C) replenishment lead time.
D) shipping and receiving cost.
Profitability.
The bullwhip effect
A) positively impacts performance at every stage.
B) hurts the relationships between different stages of the supply chain.
C) enhances the relationships between different stages of the supply chain.
D) results in improved on-time order
Hurts the relationships between different stages of the supply chain.
The bullwhip effect moves a supply chain
A) away from the efficient frontier by increasing cost and decreasing responsiveness.
B) away from the efficient frontier by decreasing cost and increasing responsiveness.
C) toward the efficient frontier by increa
Away from the efficient frontier by increasing cost and decreasing responsiveness.
Situations where incentives offered to different stages or participants in a supply chain lead to actions that increase variability and reduce total supply chain profits are referred to as
A) incentive obstacles.
B) information processing obstacles.
C) op
Incentive obstacles.
Incentives that focus only on the local impact of an action result in decisions that
A) do not maximize total supply chain profits.
B) maximize total supply chain profits.
C) minimize total supply chain profits.
D) minimize total supply chain cost.
Do not maximize total supply chain profits.
The lack of supply chain coordination on various measures of performance has costs associated with it. Which of the following is one of these costs?
A) Quality
B) Reliability
C) Manufacturing
D) Pricing
Manufacturing
The lack of supply chain coordination on various measures of performance has costs associated with it. Which of the following is one of these costs?
A) Inventory
B) Reliability
C) Transportation
D) Quality
Quality
The impact of the lack of coordination on supply chain processes decreases for the following measure:
A) manufacturing cost.
B) level of product availability.
C) transportation cost.
D) replenishment lead time.
Level of product availability.
Improperly structured sales force incentives
A) help create stable demand.
B) have very little effect on the timing of customer orders.
C) tend to create spikes in customer orders.
D) ensure that orders are quickly and accurately entered and communicated
Tend to create spikes in customer orders.
The sales typically measured by a manufacturer are
A) the quantity sold to final customers (sell-through).
B) the quantity sold to distributors or retailers (sell-in).
C) the quantity reported by the salesperson.
D) based on the quantity of supplies purch
The quantity sold to distributors or retailers (sell-in).
Situations where demand information is distorted as it moves between different stages of the supply chain, leading to increased variability in orders within the supply chain are referred to as
A) incentive obstacles.
B) information processing obstacles.
C
Information processing obstacles.
The fact that each stage in a supply chain forecasts demand based on the stream of orders received from the downstream stage results in
A) forecasts based on actual consumer demand patterns.
B) a reduction in demand as we move up the supply chain from the
A magnification of fluctuations in demand as we move up the supply chain from the retailer to the manufacturer.
The lack of information sharing between the retailer and manufacturer
A) improves supply chain coordination.
B) minimizes the fluctuation in manufacturer orders.
C) leads to a large fluctuation in manufacturer orders.
D) leads to smaller fluctuations in s
Leads to a large fluctuation in manufacturer orders.
Actions taken in the course of placing and filling orders that lead to an increase in variability are referred to as
A) incentive obstacles.
B) information processing obstacles.
C) operational obstacles.
D) pricing obstacles.
Operational obstacles.
When a firm places orders in lot sizes that are much larger than the lot sizes in which demand arises,
A) variability of orders is minimized up the supply chain.
B) variability of orders is magnified up the supply chain.
C) suppliers gain better visibilit
Variability of orders is magnified up the supply chain.
Situations in which the pricing policies for a product lead to an increase in variability of orders placed are referred to as
A) incentive obstacles.
B) information processing obstacles.
C) operational obstacles.
D) pricing obstacles.
Pricing obstacles.
Forward buying results in
A) a stabilized buying pattern.
B) small orders during the promotion period followed by very small orders after that.
C) small orders during the promotion period followed by large orders after that.
D) large orders during the pro
Large orders during the promotion period followed by very small orders after that
Problems in learning within organizations that contribute to the bullwhip effect are referred to as
A) incentive obstacles.
B) information processing obstacles.
C) pricing obstacles.
D) behavioral obstacles.
Behavioral obstacles.
Operational improvements that reduce lot sizes can dampen the bullwhip effect by
A) decreasing the uncertainty of demand during the lead time.
B) decreasing the amount of fluctuation that can accumulate between any pair of stages of a supply chain.
C) dis
Decreasing the amount of fluctuation that can accumulate between any pair of stages of a supply chain.
Managers can improve coordination within the supply chain by
A) holding product in inventory but off official inventory records.
B) listing product in inventory without actually holding the physical goods.
C) aligning goals and incentives.
D) decreasing p
Aligning goals and incentives.
All transportation decisions should be evaluated based on their effect on
A) transportation costs.
B) fuel costs.
C) total costs.
D) sales revenue.
Total costs.
Coordination requires every stage of the supply chain to focus on
A) the functional revenues for each supply chain member.
B) the functional profits for each supply chain member.
C) the functional costs for each supply chain member.
D) supply chain surplu
Supply chain surplus.
A manufacturer with significant market power should use
A) two-part tariffs and volume discounts to achieve coordination.
B) lot-size-based quantity discounts to achieve coordination.
C) forward-buying with retail coupons to achieve coordination.
D) liqui
Two-part tariffs and volume discounts to achieve coordination.
If demand is uncertain, a manufacturer can incentivize retailers to provide high levels of product availability by using
A) high fixed costs.
B) buyback contracts.
C) low fixed costs.
D) zero-cost contracts.
Buyback contracts.
One appropriate measure to reduce replenishment lead times is to
A) reduce flexibility.
B) increase the planning horizon.
C) order electronically.
D) average the aggregate plans from each supply chain member.
Order electronically.
Which method would serve to reduce the information distortion in a supply chain consisting of a fabricator, manufacturer, supplier, and a retailer?
A) Make both the fabricator and retailer responsible for all decisions regarding product inventories at the
Make the manufacturer responsible for all decisions regarding product inventories at the retailer.
In a continuous replenishment program, the wholesaler or manufacturer replenishes a retailer regularly based on
A) the POS data of the wholesaler.
B) the forecast of the retailer.
C) the POS data of the retailer.
D) the forecast of the manufacturer.
The POS data of the retailer.
In most instances, CRP systems are driven by
A) the withdrawal of inventory from distributor warehouses.
B) the withdrawal of materials from supplier warehouses.
C) the withdrawal of goods customer pantry shelves.
D) the withdrawals of inventory from reta
The withdrawals of inventory from retailer warehouses.
The replenishment decision in a VMI system is owned by the
A) manufacturer.
B) retailer.
C) customer.
D) cloud.
Manufacturer.
Quite often in a VMI system, the inventory is
A) owned by the retailer before it is shipped by the supplier.
B) owned by the supplier until it is sold by the retailer.
C) sold by the supplier before it is owned by the retailer.
D) sold by the retailer bef
Owned by the supplier until it is sold by the retailer.
In a VMI system, the ________ must share demand information with the ________.
A) manufacturer, customer
B) customer, retailer
C) retailer, manufacturer
D) manufacturer, designer
Retailer, manufacturer
If retailers sell products from competing manufacturers in a VMI system,
A) inventory at the manufacturer will be lower than optimal.
B) inventory at the manufacturer will be higher than optimal.
C) sales at the retailer will be lower than optimal.
D) inv
Inventory at the retailer will be higher than optimal.
What is the responsibility of a designated category leader?
A) The category leader manages replenishment decisions for all suppliers.
B) The category leader manages purchasing decisions for all retailers.
C) The category leader manages purchasing decision
The category leader manages replenishment decisions for all suppliers.
A fundamental aspect of successful collaboration is
A) sharing product designs.
B) identification and resolution of exceptions.
C) no stock outs.
D) complete information sharing.
Identification and resolution of exceptions.
Successful collaborative planning, forecasting and replenishment must be built on a foundation of
A) a common logistics carrier and data synchronization.
B) a single forecasting approach and a common logistics carrier.
C) data synchronization and establis
Data synchronization and established standards for exchanging information.
The most common form of collaboration observed in practice is
A) store replenishment.
B) retail event.
C) collaborative assortment.
D) distribution center replenishment.
Distribution center replenishment.
Trading partners collaborate on store-level POS forecasts in
A) store replenishment collaboration.
B) DC replenishment collaboration.
C) retail event collaboration.
D) collaborative assortment planning.
Store replenishment collaboration.
A high fashion retailer should rely on
A) historical data to forecast next season's demand.
B) interpretation of industry trends and customer tastes to forecast next season's demand.
C) store-level POS data to forecast next season's demand.
D) distributio
Interpretation of industry trends and customer tastes to forecast next season's demand.
The local hominy man is anticipating a bumper crop this year, so he arranges with a chain of grocery stores to stock up on his hominy as part of a Homina Homina Hominy campaign to lure customers in to the stores during September for cans of the divinely s
Retail event collaboration.
Retailers of all sizes can explore CPFR as a strategic option, but in order to be scalable, ________ is needed.
A) a process
B) labor
C) money
D) technology
Technology
Mickey the manager reviewed his company's customers' orders for the past year and compared the variability of those orders with the variability of the orders he placed with his suppliers. This comparison allowed him to estimate his own company's contribut
The bullwhip effect.
One of the best ways to solve coordination problems is
A) through teams comprised of different members of the supply chain.
B) through investments in cutting edge information technology.
C) by institution penalties for supply chain members that don't coop
Through teams comprised of different members of the supply chain.
The full benefit of coordination is achieved when
A) all adjacent pairs of supply chain partners are coordinated.
B) the entire supply chain network is coordinated.
C) the POS data is shared with the manufacturer.
D) the POS data is shared with the retail
The entire supply chain network is coordinated.