Question 1

The automatic identification of material is part of/facilitated by

Accepted Answer

A)  holding costs.
B)  RFID.
C)  working capital reduction.
D)  net present value calculations.
E)  vendor analysis.F) B) and D)
G) C) and E)

Question 2

The design of the supply chain and establishing partnerships with vendors and distributors are examples of operational issues in a supply chain.

Accepted Answer

A) True 
 B)False

Question 3

E-commerce involves business-to-business (B2B)interaction only.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not an application of e-business?

Accepted Answer

A)  Internet buying and selling
B)  e-mail
C)  order and shipment tracking
D)  electronic data interchange (EDI) 
E)  universal product codesF) C) and E)
G) All of the above

Question 5

Scheduling operations and shipping are operational responsibilities in supply chain management.

Accepted Answer

A) True 
 B)False

Question 6

In supply chain organizations, functions must operate independently of each other.

Accepted Answer

A) True 
 B)False

Question 7

In e-commerce, the front-end design is significantly more important than the back-end design.

Accepted Answer

A) True 
 B)False

Question 8

An advantage of decentralized purchasing is the attention given to local needs.

Accepted Answer

A) True 
 B)False

Question 9

Price is the primary determining factor in choosing a vendor since most products are essentially the same.

Accepted Answer

A) True 
 B)False

Question 10

A factor that makes it desirable for business organizations to actively manage their supply chains is

Accepted Answer

A)  more potential vendors.
B)  increasing globalization.
C)  downsizing.
D)  the Internet.
E)  RFIDs.F) C) and D)
G) B) and E)

Question 11

Which of the following is not a measure of the reliability of the supply chain?

Accepted Answer

A)  supply chain response time
B)  on-time delivery
C)  fill rate
D)  lead time variability
E)  improving e-fulfillment statisticsF) A) and B)
G) B) and C)

Question 12

Which of the following, while desirable from some perspectives, might actually increase the risk of supply chain disruptions?
(I) fewer supply chain partners
(II) a shorter supply chain
(III) greater supply chain visibility

Accepted Answer

A)  I and II only
B)  II and III only
C)  I and III only
D)  I only
E)  I, II, and IIIF) A) and E)
G) A) and D)

Question 13

One important role of purchasing is to

Accepted Answer

A)  set quality standards for purchased items from suppliers.
B)  be knowledgeable about new products from suppliers.
C)  maintain numerous sources of supply.
D)  obtain the lowest prices on all purchased items.
E)  determine the processes that should be used by suppliers.F) A) and B)
G) A) and C)

Question 14

Which of the following is not a benefit of effective supply chain management?

Accepted Answer

A)  lower inventory costs
B)  higher productivity
C)  shorter lead times
D)  greater customer loyalty
E)  larger number of suppliersF) None of the above
G) All of the above

Question 15

Centralized or decentralized purchasing is directly related to the size of an organization.

Accepted Answer

A) True 
 B)False

Question 16

In purchasing, one's only ethical obligation is to one's suppliers.

Accepted Answer

A) True 
 B)False

Question 17

The purchasing cycle begins with

Accepted Answer

A)  selecting a supplier.
B)  placing an order.
C)  evaluating potential vendors.
D)  conducting a value analysis.
E)  receiving a requisition.F) A) and E)
G) B) and D)

Question 18

A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.

Accepted Answer

A)  $1.08
B)  $1.16
C)  $2.37
D)  $2.73
E)  $1.61F) C) and E)
G) A) and C)

Question 19

Information technology is a key to integrating operations across global supply chains.

Accepted Answer

A) True 
 B)False

Question 20

This enables managers to incorporate economics into outsourcing and other decisions.

Accepted Answer

A)  measuring outsourcing ROI
B)  measuring distribution ROI
C)  measuring procurement ROI
D)  measuring supply chain ROI
E)  measuring inventory ROIF) C) and E)
G) A) and E)

Exam 15: Supply Chain Management

In purchasing, one's only ethical obligation is to one's suppliers.

Correct AnswerverifiedShow Answer

The design of the supply chain and establishing partnerships with vendors and distributors are examples of operational issues in a supply chain.

Correct AnswerverifiedShow Answer

Centralized or decentralized purchasing is directly related to the size of an organization.

Correct AnswerverifiedShow Answer

Which of the following, while desirable from some perspectives, might actually increase the risk of supply chain disruptions? (I) fewer supply chain partners (II) a shorter supply chain (III) greater supply chain visibility

Correct AnswerverifiedShow Answer

A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.

Correct AnswerverifiedShow Answer

A factor that makes it desirable for business organizations to actively manage their supply chains is

Correct AnswerverifiedShow Answer

Scheduling operations and shipping are operational responsibilities in supply chain management.

Correct AnswerverifiedShow Answer

Information technology is a key to integrating operations across global supply chains.

Correct AnswerverifiedShow Answer

Price is the primary determining factor in choosing a vendor since most products are essentially the same.

Correct AnswerverifiedShow Answer

One important role of purchasing is to

Correct AnswerverifiedShow Answer

In supply chain organizations, functions must operate independently of each other.

Correct AnswerverifiedShow Answer

An advantage of decentralized purchasing is the attention given to local needs.

Correct AnswerverifiedShow Answer

This enables managers to incorporate economics into outsourcing and other decisions.

Correct AnswerverifiedShow Answer

Which of the following is not an application of e-business?

Correct AnswerverifiedShow Answer

In e-commerce, the front-end design is significantly more important than the back-end design.

Correct AnswerverifiedShow Answer

The purchasing cycle begins with

Correct AnswerverifiedShow Answer

The automatic identification of material is part of/facilitated by

Correct AnswerverifiedShow Answer

Which of the following is not a benefit of effective supply chain management?

Correct AnswerverifiedShow Answer

E-commerce involves business-to-business (B2B)interaction only.

Correct AnswerverifiedShow Answer

Which of the following is not a measure of the reliability of the supply chain?

Correct AnswerverifiedShow Answer

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