BUAD 331 Exam 3 | Questions with Verified Answers

BUAD 331 Exam 3 | Questions with Verified Answers Which of the following is not a technique for fulfilling customer orders? A. Supply cycle time B. Anticipate form, time, and place C. Full Postponement D. Make to stock ...

BUAD 331 Exam 3 | Questions with Verified Answers Which of the following is not a technique for fulfilling customer orders? A. Supply cycle time B. Anticipate form, time, and place C. Full Postponement D. Make to stock, postpone time/place Define order cycle time. A. The total cost of ownership combined with the customer value of a product B. The total elapsed time from when the customer first recognizes need to when that need is ultimately fulfilled C. The total elapsed time from when the customer first orders the product to when that product is shipped to them D. None of the above The difference between the customer's desired order cycle time and the total supply chain order cycle time is known as: A. order cycle time B. logistics lead time C. customer delivery cycle D. lead time gap Ted's Wicked Dive Shop needs to put together a re-order plan for breathing regulators. Given that this product is high cost and highly customized in order to meet the unique demands of different divers, Ted should utilize which of the following strategies? A. Order regulators when all existing stock reaches the re-order point (ROP) B. Order product from the supplier that gives him the best price at the time of order C. Order regulators twice per year to keep set-up and order placement costs to a minimum D. Order regulators based on actual customer orders and work with supplier-partners to quickly configure and ship the regulators directly to customers E. Order regulators in bulk using a manufacturing demand forecast model coupled with a long lead-time based EOQ to take advantage of manufacturing and transportation discounts If average daily demand for a product is 5 units and average lead time for an order to arrive is 7 days, what is the reorder point (ROP) for the product? A. 21 units B. 12 units C. 7 units D. 5 units E. 35 units Ted and his friend Matt start a new company called Crabman Auto Parts. They have heard about agile order fulfillment and are interested in implementing it to decrease costs. Which of the following best describes the strategy Crabman Auto Parts should follow to take advantage of agile order fulfillment? A, Increase variability of demand by running frequent promotional campaigns and discounts for select products B. Purchase off-season products in bulk to take advantage of manufacturer's discounts C. Increase complexity in the supply chain to ensure products are made to automobile manufacturer's strict specifications D. Synchronize information exchange across the supply chain and form strategic relationships with key customers and suppliers E. Select suppliers based on lowest unit purchase price regardless of delivery reliability The economic order quantity (EOQ) model aims to: A. calculate the optimal amount of inventory to be reordered by balancing ordering costs with carrying costs. B. minimize inventory costs by eliminating safety stock. C. minimize total supply chain landed costs. D. establish the optimal amount of inventory to be reordered by balancing carrying costs with transportation costs. The move to lean and then responsive value creation requires a "paradigm shift" from a ________ mentality to a customer ________ mentality. A. Hybrid style, retention B. Product-focused push, demand-focused pull C. Demand-focused push, product-focused pull D. Product-order completion, time-saving In high-end restaurants, steaks are generally cooked after the wait staff place the order to the kitchen with customers' preference. Which of the following techniques best describes the fulfillment of steak orders to the final customer? A. Anticipatory B. Responsive C. Postpone D. Lean Ted wanted to paint his upstairs hallway. He selected 4 different colors of brown/ beige and chose "Puppy Paws," which Lowe's mixed for him on site. This method of order fulfillment is an example of ________. A. Time postponement B. Place postponement C. Logistics postponement D. Manufacturing or form postponement Ordering supplies twice per year vs four times per year can result in _______ due to __________? A. Shorter lead-times, higher set-up or ordering costs B. Higher ordering costs, lower transportation costs C. Higher inventory carrying costs, lower marginal costs D. Higher carrying costs, higher average inventory levels E. Lower inventory carrying costs, lower average inventory levels What negative outcomes can result from large lot-sized, long lead-time operations? A. Customers don't want the items. B. The items are in places and at times customers don't want them. C. Unsold products are sold at reduced prices or scrapped altogether. D. All of the above Procurement, conversion, and logistics are activities that must be done to fulfill the exchange commitment by creating form, time, and place value. A. True B. False Which of the following factors typically contribute to increased delays and variability of lead times in the global supply chain? A. A lean fulfillment model B. An agile fulfillment model C. The use of cross-docking and flexible fulfillment strategies D. Complexity required for movement of goods between countries E. Complexity of exchanging different currencies Noodles & Company uses Coca-Cola Freestyle beverage machines that allow people to select from more than 100 regular and low-calorie brands. What kind of order fulfillment technique is Coca-Cola Freestyle beverage machine using? A. Hybrid lean and agile B. EOQ C. Lean D. Agile What negative impact can result from large lot, long lead-time operations? A. Customers are overjoyed. B. The items are in places and at times customers don't want them. C. The company's sales increase too much. D. The company's profits increase too much. What key product type is marked by contribution margins of 20 to 60 percent, one- or two-day lead times, and high product variety? A. Functional B. Raw materials C. Innovative D. Luxury E. Purses What key product type is marked by contribution margins of 5 to 20 percent, six- to twelve-month lead times, and low product variety? A. Functional B. Computers C. Innovative D. Luxury E. Automobiles Which of the following is NOT a characteristic of an efficient supply chain? A. Supply predictable demand B. Maximize performance and minimize cost C. Generate high turns to minimize inventory D. Select primarily for speed, flexibility, and quality E. Select primarily for cost and quality The demand penetration point is the place or stage in the supply chain where ________ are accepted and fulfilled. A. Honey Nut Cheerios B. Full postponement C. Consumer orders D. Aggregated forecasts Which of the following is not one of the three questions a manager should ask when making an order fulfillment decision? A. Where should we position the product? B. What should we produce or purchase? C. How should we price the product? D. How much should we produce or purchase? If average daily demand for a product is twelve units and average lead time for an order to arrive is four days, what is the reorder point (ROP) for the product? A. 16 units B. 12 units C. 48 units D. 4 units What is the economic order quantity (EOQ) in this system? (Graph with order quantity of 400 units) A. 5 days worth of inventory B. 10 units of inventory C. 200 units of inventory D. 400 units of inventory Lean order fulfillment differs from traditional order fulfillment in that lean utilizes: A. smaller inventory deployment and shorter cycle times. B. smaller inventory deployment and longer cycle times. C. larger inventory deployment and shorter cycle times. D. larger inventory deployment and longer cycle times. E. There is no difference between lean and traditional order fulfillment. What is one major issue that still exists in a lean fulfillment model? A. Requirement to hold inventory in anticipation of customer orders B. Longer lead times C. Greater uncertainty in raw material inventory D. Need for fewer deliveries Demand for fashion goods are difficult to predict. Zara produces standardized, un-dyed clothes beforehand, and then dyes clothes into different colors once end-customer demand is realized. Why does Zara do this? A. Zara postpones the dyeing process to help match supply capacity to uncertain demand. B. Producing and shipping un-dyed clothes creates the necessary inventory for demand. C. Fashion goods have long lifecycles and economies of scale are needed. D. Zara has advanced forecasting tools necessary to predict demand for each color. In relation to the overall supply chain, ______ place a priority on cost savings while _______ place a priority on doing whatever necessary to deliver form, time, and place as promised on a specific order. A. downstream operations, upstream operations B. upstream operations, downstream operations C. marginal operations, radical operations D. None of the Above What are the 4 stages of the Product Life Cycle? introduction, growth, maturity, decline What type of supply chain would be most appropriate during the introductory and growth stages due to demand being highly unpredictable? A. Efficient B. Responsive C. Multiple Hybridized D. Semi-functional Most supplier organizations only measure order cycle time from when they ______ till when they ship an order. A. Receive a customer service report B. Mine material C. Plan Production D. Receive an order ______ added time is the percent of total cycle time that a product or service may spend waiting to have form, time, or place value added to it. A. Late shipment B. Product cycle C. Non-value D. Value A truck shows up at a manufacturing plant with only 3/4 of an order of parts needed to support the manufacturing schedule. Management knew in advance that this order was going to arrive less than complete and were able to for the remaining 1/4 of parts to be sent from another vendor via overnight shipping. This is an example of what benefit of information connectivity? A. Operational Efficiency B. Analysis and Diagnosis C. Responsiveness D. Planning Which of the following is the primary issue enterprise systems are designed to address? A. Business process standardization B. Information fragmentation C. Lack of control over personnel work tasks D. None of the above Which ERP vendor entered the enterprise system market nearly 30 years after the first solution was introduced? A. JDA B. Microsoft C. NetSuite D. Oracle E. SAP Which enterprise system facilitates an organization working more effectively with its supplier pool? A. CRM B. ERM C. PLM D. SRM EDI and API are essentially the same thing called by different names. A. True B. False _______________ is the physical integration of disparate systems among supply chain ecosystem members to exchange information in a timely and qualitative manner. A. Business-to-business integration B. Business-to-customer integration C. Customer-to-business integration D. Customer-to-customer integration Electronic linkages help to ensure large businesses and SMBs can more efficiently and effectively execute procurement and fulfillment processes? A. True B. False Many firms have invested significant amounts of money in information systems in the last 20 years, yet they find they still are not able to share data across functions or with customers and suppliers. Why? This information tool provides the capability for all the different parts of an organization to share data stored in one consistent, standardized data warehouse. A. ERP B. MRP C. DRP D. EOQ The purpose of a _________ is to observe and document everything he/she sees. A. Business process owner B. Project manager C. Supply chain IT liaison D. Watcher E. None of the above Warehouse automation is another phrase for WMS. A. True B. False The goal of a _____________ is to facilitate the movement of goods and raw materials from origin to destination in an efficient, reliable, and cost-effective manner. A. Digital supply chain B. SRM C. TMS D. WMS Which of the following is not a common reason organizations invest in IT? A. Desire or need to automate manual processes B. Heavy reliance on IT platforms for day-to-day operations C. IT viewed as a "silver bullet" D. Additional funds allocated to the IT operating budget Approximately 20 percent of supply chain leaders believe the digital supply chain will be the predominant model within the next five years. A. True B. False ___________ risks are more about behaviors or perceptions of individuals that can negatively impact the IT solution in question.