UARK Supply Chain Management, Judy Thorne, Exam 1 Review Que $ Ans

What are the external forces driving the rate of change and shaping our economic and political landscape? - ANS Technology, globalization, government policy and regulations, empowered consumers, organizational consolidation What is an example of each flowing both ways as illustrated in the Integrated Supply Chain—Basics figure? Information flow, Demand flow, Product flow, cash flow - ANS Information flow, customer says have construction, builder say gonna be late on due date Demand flow, point of sale info coming back from customer to supplier. Product flow, Sales and returns. Cash flow, Payments of invoices, credits for return of products. 1. Complexity in the supply chain is caused by which of these? the number of SKUs, locations of customers and suppliers, transportation requirements, all of these answers - ANS all of these answers 1. A National retail chain arranging to have sunscreen in its Florida location year round is an example of which utility? Time, Place, Quantity, Form - ANS Place The utility that is created by delivering products that meet the specifications of the customer is referred to as _____ utility. Time, Place, Quantity, Form - ANS Form 1. What is often the largest component of logistics costs? Transportation costs, Inventory costs, Administrative costs, Manufacturing costs - ANS Transportation cost 1. BeetleJuice Industries experienced a downturn in sales that has been occurring over the last 6 months. Which of these represents this demand fluctuation? Trend, Seasonal, Random, None of these - ANS Trend 1. Joe is implementing a new system to manage their transportation procurement and operations and is struggling to manage the adoption of the changes. Which is Supply Chain driver is Joe dealing with? Complexity, Organizational Power shifts, Empowered consumers, Technology, None of these - ANS Technology 1. How do products flow both forward to customers and backward from customer to suppliers? Overages, Sales, Damages, All of these - ANS All of these 1. John in the Transportation department just found out that the Los Angeles port has been targeted by terrorists for an attack. Based on this information he will need to plan for alternate export locations. Which of the Supply Chain issues is his biggest issue? Information, Inventory Effect, Cost & Value, Supply Chain Security - ANS Supply chain security 1. If a Supply Chain flows changes from inbound to outbound which of the following must be true? The population age has decreased, The location has become more urban, Resources have been depleted, All of the above - ANS The population age has decreased 1. When manufacturing created a confidential recipe for their customer, this represents which of the principle types of economic utility? Form, Time, Place, Quantity - ANS Form 1. Kroger has ordered 1,000 pallets of chicken but only received 900. Which of the economic utilities failed? Time, Place, Quantity, Form - ANS Quantity 1. Which of the following activities are not included in Logistics? Transportation, Warehousing, Manufacturing, Sales - ANS Manufacturing and sales 1. Flying Carpet Industries recently decreased the order cycle from 2 weeks to 3 weeks. What effect will this have on their customers' need to carry inventory? None, They will need to carry more, They will need to carry less - ANS They will need to carry more 1. How do inventory levels impact service? - ANS Higher inventory=better service 1. Flying Carpet Industries requires that their carpets need a temperature controlled environment for transportation. Which of the following product-related factors is he managing? Dollar value, Density, Special Handling requirements, Susceptibility to damage. - ANS Special Handling Requirements 1. R&D has developed products that require packaging that takes up more space on the pallets. Which of the following are true? Transportation cost will decrease, Warehousing costs will decrease, Transportation cost will increase, Warehousing cost will increase, Both A&B, Both C&D - ANS Both C&D What is the goal of demand planning? - ANS Customer satisfaction, manage inventory, build consensus, reach production number, make decisions. 1. A company uses demand planning to run its daily business but some of the functions don't share all of the information about their constraints. Which of the common problems in demand management is the company demonstrating? Non-strategic use of demand information, too much emphasis on forecasts, functional silos, All of these - ANS Functional silos 1. A company has expanded its sales to other markets and needs to determine where to put its new manufacturing and distribution centers.. Which is the most appropriate term for how the company is using demand information? Growth strategy, Portfolio strategy, Positioning strategy, Investment strategy - ANS Positioning Strategy 1. When a new product was launched, it fell short of the expected demand. Actual sales were less than the forecast projected.. Which Supply & Demand balance misalignment type does this represent? Real Shortage, Phantom demand, Over supply, Returns/cancellations - ANS Phantom demand 1. To address an imbalance in the amount of product that was created by the failed product launch, what can the company use which balancing method(s) to adjust the customers' demand? Order lead time, Price, Inventory, A&B, B&C - ANS A&B 1. Which demand forecasting error measure used the absolute value to determine your forecast accuracy? CFE(Cumlative forecasting error), MAD(Absolute value), MSE(Squaring errors), MAPE(Percentage) - ANS MAD(Absolute Value) 1. Every summer there is a downturn in the sale of hot chocolate. Which of the factors that affect demand is represented by this change in demand? Seasonal, Trend, Random, None of these, All of these - ANS Seasonal 1. Jill in Demand Planning wants negatives and positives to cancel out when measuring the accuracy of the forecasts. Which of the forecasting error measures should she use? CFE, MAD, MAD, TRACK Signal (More than a month, ex:year) - ANS CFE 1. A computer company is trying to forecast its demand for power cables. They are forecasting which type of demand? Direct, Indirect, Independent, Dependent - ANS Dependent 1. A company uses a 6-month weighted moving average to forecast. They know that May and June reflect the most recent trend best so they want to weigh May and June 10% higher than the other months. What would their forecast be if the past 6 months of sales were: January 200; February 140, March 180, April 250, May 295, June 300. 238, 203, 195, None of these - ANS 238 1. If a company had a seasonal change in sales over the last 6 months, which of the following should the company NOT do to address that change? Disregard the change for the next 6-month forecast, Normalize the 6-month demand, Use weighting to compensate for the change, Leave it in the forecast because it really happened - ANS Normalize the 6-month demand, Use weighting to compensate for the change, Leave it in the forecast because it really happened 1. A company is purchasing widgets. They can buy 100 at $2 a widget or 1000 at $1.80. They have decided to increase their inventory of widgets. Which of the following reasons to carry extra inventory is the rationale that the company is using? Purchasing discount, Potential Price Increase, Supply Uncertainty, B&C, None of these - ANS Purchasing discount 1. Which of the following costs are associated with warehousing inventory? Space, Inventory Service, Inventory Risk, all of these - ANS All of these 1. If a company decreases its order quantity, what impact does that have on their setup costs? Their per item set up costs went down, The per item order costs went up, Their per item order costs stayed the same, None of the above - ANS The per item order costs went up