SCM 311 EXAM 2 QUESTIONS COMPLETE
WITH CORRECT ANSWERS
\.1. Assembly or production of finished products (such as trailers, automobiles,
computers, food, etc), producing the right amount of the product and ensuring
that finished products meet specific quality, cost, and customer service
requirements are all important issues that are most closely related to:
a. Integration
b. Purchasing
c. Distribution
d. Manufacturing - ANSWERS✔-d. Manufacturing
\.2. Which of the following operating environments would have the lowest in
goods content and highest in service content?
a. Getting an oil change for your car
b. Fast food restaurant
c. Filling a medical prescription
d. Attending a theater production - ANSWERS✔-d. Attending a theater production
\.3. Of the members of the Value System or Supply Chain participants below, who
is considered the "End Item Manufacturer's" second tier supplier?
,a. The final end item consumer
b. Raw Material Source and Initial Supplier
c. Component Part Manufacturer
d. Wholesale Distributor
e. Raw Material Assembler
f. Retail Chain Distribution Center
g. Sub-assembly Manufacturer from Component Parts to be used in the ultimate
h. End item / Finished Goods Manufacturer
i. Retail Store - ANSWERS✔-c. Component Part Manufacturer
\.4. Focused production is
a. A strategy in which a given plant produces one or two items of the company's
total product line.
b. A strategic decision to make only what the market desires
c. A trend in the electronics industry with manufacturing in China - ANSWERS✔-a.
A strategy in which a given plant produces one or two items of the company's
total product line.
\.5. Which condition must be present before motor carriers and rail carriers can be
used for international shipments?
a. No customs barriers can be imposed
, b. Shipments must be in volume and in bulk
c. The shipments cannot pass through adjacent countries
d. The shipment must be between adjacent countries - ANSWERS✔-d. The
shipment must be between adjacent countries
\.6. The drawback of centralized inventory is:
a. Strains the ability of the carrier network
b. That it undercuts the dispersed distribution concept
c. That it extends lead times and results in higher transportation costs
d. That it increases the amount of inventory required - ANSWERS✔-c. That it
extends lead times and results in higher transportation costs
\.7. One operational method for controlling and managing inventory necessary for
scheduled operational activities is the implementation of a software system which
can be referred to as:
a. Inventory sourcing (IS)
b. Material requirements planning (MRP)
c. Demand process reengineering (DPR)
d. Demand capacity tracking (DCT) - ANSWERS✔-b. Material requirements
planning (MRP)
\.8. The long-term capacity expansion strategy that can be called a "capacity
straddle" strategy is exemplified when the firm executes.
WITH CORRECT ANSWERS
\.1. Assembly or production of finished products (such as trailers, automobiles,
computers, food, etc), producing the right amount of the product and ensuring
that finished products meet specific quality, cost, and customer service
requirements are all important issues that are most closely related to:
a. Integration
b. Purchasing
c. Distribution
d. Manufacturing - ANSWERS✔-d. Manufacturing
\.2. Which of the following operating environments would have the lowest in
goods content and highest in service content?
a. Getting an oil change for your car
b. Fast food restaurant
c. Filling a medical prescription
d. Attending a theater production - ANSWERS✔-d. Attending a theater production
\.3. Of the members of the Value System or Supply Chain participants below, who
is considered the "End Item Manufacturer's" second tier supplier?
,a. The final end item consumer
b. Raw Material Source and Initial Supplier
c. Component Part Manufacturer
d. Wholesale Distributor
e. Raw Material Assembler
f. Retail Chain Distribution Center
g. Sub-assembly Manufacturer from Component Parts to be used in the ultimate
h. End item / Finished Goods Manufacturer
i. Retail Store - ANSWERS✔-c. Component Part Manufacturer
\.4. Focused production is
a. A strategy in which a given plant produces one or two items of the company's
total product line.
b. A strategic decision to make only what the market desires
c. A trend in the electronics industry with manufacturing in China - ANSWERS✔-a.
A strategy in which a given plant produces one or two items of the company's
total product line.
\.5. Which condition must be present before motor carriers and rail carriers can be
used for international shipments?
a. No customs barriers can be imposed
, b. Shipments must be in volume and in bulk
c. The shipments cannot pass through adjacent countries
d. The shipment must be between adjacent countries - ANSWERS✔-d. The
shipment must be between adjacent countries
\.6. The drawback of centralized inventory is:
a. Strains the ability of the carrier network
b. That it undercuts the dispersed distribution concept
c. That it extends lead times and results in higher transportation costs
d. That it increases the amount of inventory required - ANSWERS✔-c. That it
extends lead times and results in higher transportation costs
\.7. One operational method for controlling and managing inventory necessary for
scheduled operational activities is the implementation of a software system which
can be referred to as:
a. Inventory sourcing (IS)
b. Material requirements planning (MRP)
c. Demand process reengineering (DPR)
d. Demand capacity tracking (DCT) - ANSWERS✔-b. Material requirements
planning (MRP)
\.8. The long-term capacity expansion strategy that can be called a "capacity
straddle" strategy is exemplified when the firm executes.
