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The impact of the lack of coordination on supply chain processes decreases for the following measure.


A) Manufacturing cost
B) Level of product availability
C) Transportation cost
D) Replenishment lead time

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B

When a firm places orders in lot sizes that are much larger than the lot sizes in which demand arises,


A) variability of orders is minimized up the supply chain.
B) variability of orders is magnified up the supply chain.
C) suppliers gain better visibility of consumer demand.
D) suppliers gain a more stable demand pattern.

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Information distortion is exaggerated by the fact that


A) supply chains today produce a large amount of product variety.
B) supply chains today produce a small amount of product variety.
C) the telephone effect is extreme in situations where technology is in use.
D) different stages of supply chains send excessive data.

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All transportation decisions should be evaluated based on their effect on


A) transportation costs.
B) fuel costs.
C) total costs.
D) sales revenue.

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The sales typically measured by a manufacturer are


A) the quantity sold to final customers (sell-through) .
B) the quantity sold to distributors or retailers (sell-in) .
C) the quantity reported by the salesperson.
D) based on the quantity of supplies purchased from key suppliers.

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Supply chain coordination requires each stage of the supply chain to take into account the impact its actions have on other stages.

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The bullwhip effect reduces the profitability of a supply chain by making it simpler to provide a given level of product availability.

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Incentives that focus only on the local impact of an action result in decisions that


A) do not maximize total supply chain profits.
B) maximize total supply chain profits.
C) minimize total supply chain profits.
D) minimize total supply chain cost.

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Trade promotions and other short-term discounts offered by a manufacturer result in large orders during the promotion period followed by very small orders after that.

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Mickey the manager reviewed his company's customers' orders for the past year and compared the variability of those orders with the variability of the orders he placed with his suppliers.This comparison allowed him to estimate his own company's contribution to


A) the forecast.
B) supply chain surplus.
C) market demand.
D) the bullwhip effect.

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Pricing obstacles refer to situations in which the pricing policies for a product lead to an increase in variability of orders placed.

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Describe the impact of behavioral obstacles on supply chain coordination.

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Behavioral obstacles refer to problems i...

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If demand is uncertain,a manufacturer can incentivize retailers to provide high levels of product availability by using


A) high fixed costs.
B) buyback contracts.
C) low fixed costs.
D) zero-cost contracts.

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Coordination requires every stage of the supply chain to focus on


A) the functional revenues for each supply chain member.
B) the functional profits for each supply chain member.
C) the functional costs for each supply chain member.
D) supply chain surplus.

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A lack of coordination occurs either because different stages of the supply chain have objectives that conflict or because information moving between stages gets delayed and distorted.

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The bullwhip effect decreases


A) transportation cost.
B) profitability.
C) replenishment lead time.
D) shipping and receiving cost.

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The bullwhip effect decreases


A) product availability.
B) manufacturing cost.
C) replenishment lead time.
D) transportation cost.

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A

The lack of information sharing between the retailer and manufacturer leads to a large fluctuation in manufacturer orders.

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How do improperly structured incentives lead to a lack of coordination in the supply chain?

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Incentive obstacles refer to situations where incentives offered to different stages or participants in a supply chain lead to actions that increase variability and reduce total supply chain profits.Incentives that focus only on the local impact of an action result in decisions that do not maximize total supply chain profits.Buying decisions based on maximizing profits at a single stage of the supply chain lead to ordering policies that do not maximize supply chain profits. Improperly structured sales force incentives are a significant obstacle to coordination in the supply chain.In many firms,sales force incentives are based on the amount the sales force sells during an evaluation period of a month or a quarter.The sales typically measured by a manufacturer are the quantity sold to distributors or retailers (sell-in),not the quantity sold to final customers (sell-through).Measuring performance based on sell-in is often justified on the grounds that the manufacturer's sales force does not control sell-through.This leads to spikes in orders that do not reflect actual customer needs.

What is the responsibility of a designated category leader?


A) The category leader manages replenishment decisions for all suppliers.
B) The category leader manages purchasing decisions for all retailers.
C) The category leader manages purchasing decisions for all customers.
D) The category leader manages replenishment decisions for all retailers.

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