BUAD 331 Exam 3 Questions And Answers
(Verified And Updated)
Ted is approached by a diving goods supplier who tells him that he can reduce his purchasing price by
half with ensured quality due to his lower cost structure resulting from his manufacturing locations in
China. Should Ted accept the supplier's offer and why?
a.) Yes, cutting the purchase cost by half can provide Ted's products great competitive price in the
market.
b.) Yes, ensured quality can reduce product defects and hence increase customer satisfaction.
c.) It depends on the tradeoffs and the impact on total cost of ownership.
d.) No, purchasing from supplier in China will cause higher level of inventory.
e.) No, purchasing from supplier in China will increase the lead time.
c
Global SCM is difficult to plan and execute. One reason is that people are extremely different across
cultures. Suppose that you area purchasing manager at Ted's Wicked Die Shop and visit China to meet
one supplier. In the meeting, you ask a Chinese supplier to supply some components from July 2013
at a certain price. If a Chinese supplier says "YES", what does it mean?
a.) We accept the offer.
b.) We can produce those components.
c.) We can meet the requirement.
d.) We can negotiate.
d
At its core, a supply chain risk profile asses the_______________ and the_______________.
a.) Impact of disturbances in the supply chain; the ways a firm can mitigate those disturbances
b.) Five risk factors; relationship of those factors to customer demand
c.) Probability of a risk occurring; the impact of that risk if it occurs
d.) Vulnerability of a specific node in the supply chain; the drivers of risk for that node
c
Which of the following is NOT an issue that impacts global supply chain decisions for US firms?
a.) Cultural differences between international partners.
b.) Inadequate transportation infrastructure in trading countries.
c.) Passage of new US domestic transportation spending legislation.
d.) Substantial geographic distances between trading partners.
c
Which of the following is NOT a sound reason for a company to expand globally?
a.) To decrease labor rates by manufacturing in lower cost countries.
b.) To decrease complexity by selling to emerging markets.
c.) To level the playing field with competitors who are global.
d.) To increase sales by opening foreign markets.
e.) To decrease raw materials costs by using foreign suppliers.
b
, Which of the following factors typically contribute to increased delays and variability of lead times in
the global supply chain?
a.) Complexity required for movement of goods between countries.
b.) The use of cross-docking and flexible fulfillment strategies.
c.) An agile fulfillment model.
d.) Complexity of translating advertising and promotions into different languages.
e.) A lean fulfillment model.
a
In an attempt to create a "one size fits all" low-cost supply chain for all of his clothing products, Ted
decides to source all his clothing products from Vietnam instead of Ohio. The average hourly labor
rate in Vietnam is $1 per hour versus $14 in Ohio. No changes to transport capacity or textile import
quotas were made in conjunction with this change of supplier. Ted's clothing line includes standard
items such as white socks and t-shirts and specialty items such as customized flip-flops and
autographed swimwear.
1. Which of the following statements is true based on this scenario?
a.) Supply replenishment lead times and variance will likely increase.
b.) This strategy is most appropriate for the customized products, but not for socks and t-shirts.
c.) Ted's supply chain will now be much more responsive to changes in demand.
d.) Forecast accuracy will increase due to the longer planning time horizon.
a
If Ted decided to move most of his sourcing for clothing products to Vietnam, but also kept up a
contract with domestic suppliers to source some of those same products locally, this would be an
example of using _______________ to mitigate _______________ risk.
a.) Redundancy; Supply
b.) Flexibility; Process
c.) Agility; Control
d.)Resiliency; Supply
a
This strategy is most appropriate for which of Ted's product lines?
a.)North Carolina Tarheels 2013 NCAA baseball champion flip-flops.
b.) USNA 2013 NCAA lacrosse championship shirts.
c.) Lady Vols Softball 2013 National Championship bikinis.
d.) White socks and t-shirts.
d
Ted has started to sell Ted's Wicked Dive Shop t-shirts nationally through various retail outlets.
However, Ted is much better at forecasting demand for his t-shirts across a region than he is at
forecasting demand at individual retail locations. Ted decides to pull his t-shirt inventory back from
specific locations and instead support several locations using a regional distribution center. This is an
example of using _______________ to mitigate demand risk.
a.) Increased cycle times
b.) Inventory reduction
c.) Sophisticated EOQ modeling
d.) Centralized inventory
d
(Verified And Updated)
Ted is approached by a diving goods supplier who tells him that he can reduce his purchasing price by
half with ensured quality due to his lower cost structure resulting from his manufacturing locations in
China. Should Ted accept the supplier's offer and why?
a.) Yes, cutting the purchase cost by half can provide Ted's products great competitive price in the
market.
b.) Yes, ensured quality can reduce product defects and hence increase customer satisfaction.
c.) It depends on the tradeoffs and the impact on total cost of ownership.
d.) No, purchasing from supplier in China will cause higher level of inventory.
e.) No, purchasing from supplier in China will increase the lead time.
c
Global SCM is difficult to plan and execute. One reason is that people are extremely different across
cultures. Suppose that you area purchasing manager at Ted's Wicked Die Shop and visit China to meet
one supplier. In the meeting, you ask a Chinese supplier to supply some components from July 2013
at a certain price. If a Chinese supplier says "YES", what does it mean?
a.) We accept the offer.
b.) We can produce those components.
c.) We can meet the requirement.
d.) We can negotiate.
d
At its core, a supply chain risk profile asses the_______________ and the_______________.
a.) Impact of disturbances in the supply chain; the ways a firm can mitigate those disturbances
b.) Five risk factors; relationship of those factors to customer demand
c.) Probability of a risk occurring; the impact of that risk if it occurs
d.) Vulnerability of a specific node in the supply chain; the drivers of risk for that node
c
Which of the following is NOT an issue that impacts global supply chain decisions for US firms?
a.) Cultural differences between international partners.
b.) Inadequate transportation infrastructure in trading countries.
c.) Passage of new US domestic transportation spending legislation.
d.) Substantial geographic distances between trading partners.
c
Which of the following is NOT a sound reason for a company to expand globally?
a.) To decrease labor rates by manufacturing in lower cost countries.
b.) To decrease complexity by selling to emerging markets.
c.) To level the playing field with competitors who are global.
d.) To increase sales by opening foreign markets.
e.) To decrease raw materials costs by using foreign suppliers.
b
, Which of the following factors typically contribute to increased delays and variability of lead times in
the global supply chain?
a.) Complexity required for movement of goods between countries.
b.) The use of cross-docking and flexible fulfillment strategies.
c.) An agile fulfillment model.
d.) Complexity of translating advertising and promotions into different languages.
e.) A lean fulfillment model.
a
In an attempt to create a "one size fits all" low-cost supply chain for all of his clothing products, Ted
decides to source all his clothing products from Vietnam instead of Ohio. The average hourly labor
rate in Vietnam is $1 per hour versus $14 in Ohio. No changes to transport capacity or textile import
quotas were made in conjunction with this change of supplier. Ted's clothing line includes standard
items such as white socks and t-shirts and specialty items such as customized flip-flops and
autographed swimwear.
1. Which of the following statements is true based on this scenario?
a.) Supply replenishment lead times and variance will likely increase.
b.) This strategy is most appropriate for the customized products, but not for socks and t-shirts.
c.) Ted's supply chain will now be much more responsive to changes in demand.
d.) Forecast accuracy will increase due to the longer planning time horizon.
a
If Ted decided to move most of his sourcing for clothing products to Vietnam, but also kept up a
contract with domestic suppliers to source some of those same products locally, this would be an
example of using _______________ to mitigate _______________ risk.
a.) Redundancy; Supply
b.) Flexibility; Process
c.) Agility; Control
d.)Resiliency; Supply
a
This strategy is most appropriate for which of Ted's product lines?
a.)North Carolina Tarheels 2013 NCAA baseball champion flip-flops.
b.) USNA 2013 NCAA lacrosse championship shirts.
c.) Lady Vols Softball 2013 National Championship bikinis.
d.) White socks and t-shirts.
d
Ted has started to sell Ted's Wicked Dive Shop t-shirts nationally through various retail outlets.
However, Ted is much better at forecasting demand for his t-shirts across a region than he is at
forecasting demand at individual retail locations. Ted decides to pull his t-shirt inventory back from
specific locations and instead support several locations using a regional distribution center. This is an
example of using _______________ to mitigate demand risk.
a.) Increased cycle times
b.) Inventory reduction
c.) Sophisticated EOQ modeling
d.) Centralized inventory
d
