BUAD 331 EXAM 3
x x x
Definexorderxcyclextime.x-
x answerxThextotalxelapsedxtimexfromxwhenxthexcustomerxfirstxrecognizesxneedxtoxwhenxthatxneedxisxu
ltimatelyxfulfilled
Thexdifferencexbetweenxthexcustomer'sxdesiredxorderxcyclextimexandxthextotalxsupplyxchainxorderxcy
clextimexisxknownxas:x-xanswerxleadxtimexgap
Thexeconomicxorderxquantityx(EOQ)xmodelxaimsxto:x-
x answerxcalculatexthexoptimalxamountxofxinventoryxtoxbexreorderedxbyxbalancingxorderingxcostsxwit
hxcarryingxcosts.
Ifxaveragexdailyxdemandxforxaxproductxisx5xunitsxandxaveragexleadxtimexforxanxorderxtoxarrivexisx7xda
ys,xwhatxisxthexreorderxpointx(ROP)xforxthexproduct?x–xanswerx35xunits
TedxandxhisxfriendxMattxstartxaxnewxcompanyxcalledxCrabmanxAutoxParts.xTheyxhavexheardxaboutxa
gilexorderxfulfillmentxandxarexinterestedxinximplementingxitxtoxdecreasexcosts.xWhichxofxthexfollowi
ngxbestxdescribesxthexstrategyxCrabmanxAutoxPartsxshouldxfollowxtoxtakexadvantagexofxagilexorderxf
ulfillment?x-
x answerxSynchronizexinformationxexchangexacrossxthexsupplyxchainxandxformxstrategicxrelationship
sxwithxkeyxcustomersxandxsuppliers.
Thexmovextoxleanxandxthenxresponsivexvaluexcreationxrequiresxaxparadigmxshiftxfromxax_______xme
ntalityxtoxaxcustomerx________xmentality.x-xanswerxproduct-focusedxpush,xdemand-focusedxpull
Inxhigh-
endxrestaurants,xsteaksxarexgenerallyxcookedxafterxthexwaitxstaffxplacexthexorderxtoxthexkitchenxwithxc
ustomers'xpreference.xWhichxofxthexfollowingxtechniquesxbestxdescribesxthexfulfillmentxofxsteakxord
ersxtoxthexfinalxcustomer?x-xanswerxResponsive
, Whatxnegativexoutcomesxcanxresultxfromxlargexlot-sized,xlongxlead-timexoperations?x-
x answerAllxofxthexabove
Procurement,xconversion,xandxlogisticsxarexactivitiesxthatxmustxbexdonextoxfulfillxaxcompany'sxexcha
ngexcommitments.x-xanswerxTrue
Whichxofxthexfollowingxfactorsxtypicallyxcontributextoxincreasedxdelaysxandxvariabilityxofxleadxtime
sxinxthexglobalxsupplyxchain?x-
x answerxComplexityxrequiredxforxmovementxofxgoodsxbetweenxcountries
Noodlesx&xCompanyxusesxCoca-
ColaxFreestylexbeveragexmachinesxthatxallowxpeoplextoxselectxfromxmorexthanx100xregularxandxlow-
caloriexbrands.xWhatxkindxofxorderxfulfillmentxtechniquexisxCoca-
ColaxFreestylexbeveragexmachinexusing?x-xanswerxHybridxleanxandxagile
Whatxnegativeximpactxcanxresultxfromxlargexlot,xlongxlead-timexoperations?x-
x answerxThexitemsxarexinxplacesxandxatxtimesxcustomersxdon'txwantxthem.
Whatxkeyxproductxtypexisxmarkedxbyxcontributionxmarginsxofx20xtox60xpercent,xone-xorxtwo-
dayxleadxtimes,xandxhighxproductxvariety?x-xanswerxinnovative
Whatxkeyxproductxtypexisxmarkedxbyxcontributionxmarginsxofx5xtox20xpercent,xsix-xtoxtwelve-
monthxleadxtimes,xandxlowxproductxvariety?x-xanswerxFunctional
WhichxofxthexfollowingxisxNOTxaxcharacteristicxofxanxefficientxsupplyxchain?x-
x answerxselectxprimarilyxforxspeed,xflexibility,xandxquality
Thexdemandxpenetrationxpointxisxthexplacexorxstagexinxthexsupplyxchainxwherex________xarexaccepte
dxandxfulfilled.x-xanswerxConsumerxorders
x x x
Definexorderxcyclextime.x-
x answerxThextotalxelapsedxtimexfromxwhenxthexcustomerxfirstxrecognizesxneedxtoxwhenxthatxneedxisxu
ltimatelyxfulfilled
Thexdifferencexbetweenxthexcustomer'sxdesiredxorderxcyclextimexandxthextotalxsupplyxchainxorderxcy
clextimexisxknownxas:x-xanswerxleadxtimexgap
Thexeconomicxorderxquantityx(EOQ)xmodelxaimsxto:x-
x answerxcalculatexthexoptimalxamountxofxinventoryxtoxbexreorderedxbyxbalancingxorderingxcostsxwit
hxcarryingxcosts.
Ifxaveragexdailyxdemandxforxaxproductxisx5xunitsxandxaveragexleadxtimexforxanxorderxtoxarrivexisx7xda
ys,xwhatxisxthexreorderxpointx(ROP)xforxthexproduct?x–xanswerx35xunits
TedxandxhisxfriendxMattxstartxaxnewxcompanyxcalledxCrabmanxAutoxParts.xTheyxhavexheardxaboutxa
gilexorderxfulfillmentxandxarexinterestedxinximplementingxitxtoxdecreasexcosts.xWhichxofxthexfollowi
ngxbestxdescribesxthexstrategyxCrabmanxAutoxPartsxshouldxfollowxtoxtakexadvantagexofxagilexorderxf
ulfillment?x-
x answerxSynchronizexinformationxexchangexacrossxthexsupplyxchainxandxformxstrategicxrelationship
sxwithxkeyxcustomersxandxsuppliers.
Thexmovextoxleanxandxthenxresponsivexvaluexcreationxrequiresxaxparadigmxshiftxfromxax_______xme
ntalityxtoxaxcustomerx________xmentality.x-xanswerxproduct-focusedxpush,xdemand-focusedxpull
Inxhigh-
endxrestaurants,xsteaksxarexgenerallyxcookedxafterxthexwaitxstaffxplacexthexorderxtoxthexkitchenxwithxc
ustomers'xpreference.xWhichxofxthexfollowingxtechniquesxbestxdescribesxthexfulfillmentxofxsteakxord
ersxtoxthexfinalxcustomer?x-xanswerxResponsive
, Whatxnegativexoutcomesxcanxresultxfromxlargexlot-sized,xlongxlead-timexoperations?x-
x answerAllxofxthexabove
Procurement,xconversion,xandxlogisticsxarexactivitiesxthatxmustxbexdonextoxfulfillxaxcompany'sxexcha
ngexcommitments.x-xanswerxTrue
Whichxofxthexfollowingxfactorsxtypicallyxcontributextoxincreasedxdelaysxandxvariabilityxofxleadxtime
sxinxthexglobalxsupplyxchain?x-
x answerxComplexityxrequiredxforxmovementxofxgoodsxbetweenxcountries
Noodlesx&xCompanyxusesxCoca-
ColaxFreestylexbeveragexmachinesxthatxallowxpeoplextoxselectxfromxmorexthanx100xregularxandxlow-
caloriexbrands.xWhatxkindxofxorderxfulfillmentxtechniquexisxCoca-
ColaxFreestylexbeveragexmachinexusing?x-xanswerxHybridxleanxandxagile
Whatxnegativeximpactxcanxresultxfromxlargexlot,xlongxlead-timexoperations?x-
x answerxThexitemsxarexinxplacesxandxatxtimesxcustomersxdon'txwantxthem.
Whatxkeyxproductxtypexisxmarkedxbyxcontributionxmarginsxofx20xtox60xpercent,xone-xorxtwo-
dayxleadxtimes,xandxhighxproductxvariety?x-xanswerxinnovative
Whatxkeyxproductxtypexisxmarkedxbyxcontributionxmarginsxofx5xtox20xpercent,xsix-xtoxtwelve-
monthxleadxtimes,xandxlowxproductxvariety?x-xanswerxFunctional
WhichxofxthexfollowingxisxNOTxaxcharacteristicxofxanxefficientxsupplyxchain?x-
x answerxselectxprimarilyxforxspeed,xflexibility,xandxquality
Thexdemandxpenetrationxpointxisxthexplacexorxstagexinxthexsupplyxchainxwherex________xarexaccepte
dxandxfulfilled.x-xanswerxConsumerxorders
