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Chapter_7_Study_Guide_Questions.doc (52.0K) Chapter_7_Study_Guide_Questions.doc (52.0K) Document Transcript

  • CHAPTER SEVEN STRATEGIC SOURCING KEY REVIEW True-False Questions ____ 1. Few companies are achieving competitive advantage through supply chain management. _____ 2. Inventory turnover is the average aggregate inventory value divided by cost of goods sold. _____ 3. Supply chain efficiency is measured based on the size of the chain’s inventory investment. _____ 4. Companies can unload noncore activities, shed balance sheet assets, and boost their return on capital by using third-party service providers. _____ 5. Outsourcing moves a firm’s internal activities to outside providers. _____ 6. There has been dramatic growth in outsourcing in the logistics area. _____ 7. Unions view outsourcing favorably. _____ 8. Inventory ties up funds that could be used for other purposes and a firm may have to borrow money to finance the inventory investment. _____ 9. Process postponement refers to the delay of the process step that differentiates the product as late as possible within the supply chain. _____ 10. The bullwhip effect refers to the costs for a company to produce the goods or services provided to consumers. Multiple-Choice Questions _____ 11. Innovative products: A. Include fashionable clothes and computers B. Enable a company to achieve a higher profit margin C. Typically have a life cycle of just a few months D. All of the above Chapter Seven – Strategic Sourcing Page: 95
  • E. None of the above _____ 12. The inventory turnover is mathematically the inverse of the A. Gross margin B. Weeks-of-supply C. Cost of goods sold D. Profit _____ 13. All of the following are true about inventory, except: A. Inventory is an investment. B. Inventories tie up funds that could be used for other purposes. C. Firms may have to borrow money to finance inventory. D. All of the above are true. _____ 14. Functional products are: A. Products with short life cycles B. Staples people buy in a range of retail locations C. Do not include products in gas stations and grocery stores D Products that change over time _____ 15. Reasons to outsource include: A. To increase costs B. To reduce investments in assets C. To focus on new and different areas or activities D. To increase investments in assets Chapter Seven – Strategic Sourcing Page: 96
  • E. All of the above _____ 16. Supply chains that utilize strategies aimed at creating the highest cost efficiency are: A. Efficient supply chains. B. Risk-hedging supply chains. C. Responsive supply chains. D. Agile supply chains. _____ 17. Supply chains that utilize strategies aimed at being responsive and flexible to customer needs, while the risks of supply shortages or disruptions are hedged by pooling inventory and other capacity resources are: A. Efficient supply chains. B. Risk-hedging supply chains. C. Responsive supply chains. D. Agile supply chains. _____ 18. Supply chains that utilize strategies aimed at being flexible to the changing and diverse needs of customers are: A. Efficient supply chains. B. Risk-hedging supply chains. C. Responsive supply chains. D. Agile supply chains. _____ 19. Supply chains that utilize strategies aimed at pooling and sharing resources in a supply chain so the risks in supply disruption can be shared are: A. Efficient supply chains. B. Risk-hedging supply chains. C. Responsive supply chains. Chapter Seven – Strategic Sourcing Page: 97
  • D. Agile supply chains. Net Revenue $49,205 Cost of Revenue 40,190 Production Materials on Hand 228 WIP and Finished Goods on Hand 231 Days of Supply in Inventory 4 days _____ 20. Using the above data, what is the inventory turnover? A. 59 turns per year B. 87.56 turns per year C. 459 turns per year D. none of the above _____ 21. Again using the financial data above, how many weeks of supply does the company have? A. 52 B, 59 C. 57 D. 87 E. 87.56 F. none of the above Chapter Seven – Strategic Sourcing Page: 98