Pitt. Challenge 2008

1. Pitt. Challenge 2008 SCMN/ Relationships February 28, 2008

2. 1). The inventory required to meet demand under conditions of certainty, is called _________. • a. EOQ • b. average inventory • c. SS • d. average cycle stock

3. 1). The inventory required to meet demand under conditions of certainty, is called _________ • a. EOQ • b. average inventory • c. SS • d. average cycle stock

4. 2) What best characterizes outsourcing in the 1980s? • a. agreements were transactional oriented • b. offering value-added services was trendy • c. concentration on productivity and long-term contracts • d. concentrate on core competencies

5. 2) What best characterizes outsourcing in the 1980s? • a. agreements were transactional oriented • b. offering value-added services was trendy • c. concentration on productivity and long-term contracts • d. concentrate on core competencies

6. 3). Simple EOQ is: • a. efficient order quantity • b. a balancing of inventory carrying cost and transportation cost • c. a balancing of set-up cost and inventory carrying cost • d. economic inventory level under conditions of uncertainty

7. 3). Simple EOQ is: • a. efficient order quantity • b. a balancing of inventory carrying cost and transportation cost • c. a balancing of set-up cost and inventory carrying cost • d. economic inventory level under conditions of uncertainty

8. 4). As a firm orders in larger quantities: • a. order cost decrease and inventory carrying cost increase • b. order cost increase and inventory carrying cost decrease • c. order cost decrease and inventory carrying cost decrease • d. order cost increase and inventory carrying cost increases

9. 4). As a firm orders in larger quantities: • a. order cost decrease and inventory carrying cost increase • b. order cost increase and inventory carrying cost decrease • c. order cost decrease and inventory carrying cost decrease • d. order cost increase and inventory carrying cost increases

10. 5). Outsourcing allows firms to: • a. correct mistakes at a lower cost • b. better control transactions • c. identify quality issues faster • d. better negotiate with customers

11. 5). Outsourcing allows firms to: • a. correct mistakes at a lower cost • b. better control transactions • c. identify quality issues faster • d. better negotiate with customers

12. 6) In expanded supply chain management, what are the three basic flows that are critical for supply chain partners to coordinate and jointly manage: • a. Product, Information and Advertising • b. Cash, Information and Product • c. Information, Advertising and Cash • d. Information, Product and Training

13. 6) In expanded supply chain management, what are the three basic flows that are critical for supply chain partners to coordinate and jointly manage: • a. Product, Information and Advertising • b. Cash, Information and Product • c. Information, Advertising and Cash • d. Information, Product and Training

14. 7) The value-added role of logistics generally includes direct responsibility for providing which of the following: • a. Place and Form Utility • b. Time and Place Utility • c. Possession and Time Utility • d. Value and Form Utility

15. 7) The value-added role of logistics generally includes direct responsibility for providing which of the following: • a. Place and Form Utility • b. Time and Place Utility • c. Possession and Time Utility • d. Value and Form Utility

16. 8). Which of the following is not a critical factor in supply chain flow optimization • a. Space • b. Linkage • c. Velocity • d. Variability management

17. 8). Which of the following is not a critical factor in supply chain flow optimization • a. Space • b. Linkage • c. Velocity • d. Variability management

18. 9)Which of the following activities would not be included within reverse logistics? • A)finished goods distribution • B) recycling • C) product and packaging reuse • D) salvage and scrap disposal • E) waste disposal

19. 9)Which of the following activities would not be included within reverse logistics? • A)finished goods distribution • B) recycling • C) product and packaging reuse • D) salvage and scrap disposal • E) waste disposal

20. Which of the following is not a benefit associated with successful implementation of MRP systems? • A)better manufacturing control • B)higher inventory turnover ratio(s) • C)more accurate and timely information • D)reduction in purchasing costs due to fewer orders being placed • E) work force overtime is minimized

21. Which of the following is not a benefit associated with successful implementation of MRP systems? • A)better manufacturing control • B)higher inventory turnover ratio(s) • C)more accurate and timely information • D)reduction in purchasing costs due to fewer orders being placed • E) work force overtime is minimized

22. Which of the following statements about the cost and service considerations in global logistics is FALSE? • A)The distances involved are much longer. • B)Most international freight (measured by weight) moves by air. • C)Order completeness is much more important. • D) There are higher costs associated with shipping errors than in domestic logistics. • E) None of the above statements are FALSE.

23. Which of the following statements about the cost and service considerations in global logistics is FALSE? • A)The distances involved are much longer. • B)Most international freight (measured by weight) moves by air. • C)Order completeness is much more important. • D) There are higher costs associated with shipping errors than in domestic logistics. • E) None of the above statements are FALSE.

24. Control over logistics costs can be accomplished by: A)standard costs B)absorption costing C)productivity standards D) A and C only

25. Control over logistics costs can be accomplished by: A)standard costs B)absorption costing C)productivity standards D) A and C only

26. According to the current CLM definition of logistics, the relationship between logistics and supply chain is: • A)they are synonymous • B)supply chain is a part of logistics • C)logistics is a part of supply chain • D)they are antonyms • E)they are both part of the marketing channel

27. According to the current CLM definition of logistics, the relationship between logistics and supply chain is: • A)they are synonymous • B)supply chain is a part of logistics • C)logistics is a part of supply chain • D)they are antonyms • E)they are both part of the marketing channel

28. 14). All of the following are characteristics of a supply chain management perspective (as opposed to a more traditional view of logistics/conventional channels), except: • a. Members of the supply chain acknowledge interdependence • b. Inventories are used as a mechanism of first, rather than last resort • c. The supply chain is viewed as a single entity: competition is not with other firms in the supply chain but with other supply chains • d. Supply chains are actively managed in both the upstream and downstream directions

29. 14). All of the following are characteristics of a supply chain management perspective (as opposed to a more traditional view of logistics/conventional channels), except: • a. Members of the supply chain acknowledge interdependence • b. Inventories are used as a mechanism of first, rather than last resort • c. The supply chain is viewed as a single entity: competition is not with other firms in the supply chain but with other supply chains • d. Supply chains are actively managed in both the upstream and downstream directions

30. A manager may pay more for one element of service in order to save an even larger amount on a different element. This is called _____________. • A)suboptimization • B)cost tradeoff • C)supply chain management • D)efficient consumer response

31. A manager may pay more for one element of service in order to save an even larger amount on a different element. This is called _____________. • A)suboptimization • B)cost tradeoff • C)supply chain management • D)efficient consumer response

32. Pitt. Challenge March 6, 2008 Supply Chain Relationships

33. 1)Which is NOT one of the Four Phases of Supply Management? • A) Generation of Requirements • B) Sourcing • C) Pricing • D) Materials Handling • E) Post- Award Activities

34. Which is NOT one of the Four Phases of Supply Management? • A) Generation of Requirements • B) Sourcing • C) Pricing • D) Materials Handling • E) Post- Award Activities

35. 2)Which is NOT one of the five major developments of supply management? • A) Cross-functional teams • B) Supply Alliances • C) Logistics • D) Strategic Sourcing • E) E-Procurement

36. Which is NOT one of the five major developments of supply management? • A) Cross-functional teams • B) Supply Alliances • C) Logistics • D) Strategic Sourcing • E) E-Procurement

37. 3)Which is NOT one of the Primary benefits of a Supply Alliance? • A) Increased Time to Market • B) Improved Quality • C) Improved Technology Flow From Suppliers D) Improved Continuity of Supply E) Lower Total Costs

38. Which is NOT one of the Primary benefits of a Supply Alliance? • A) Increased Time to Market • B) Improved Quality • C) Improved Technology Flow From Suppliers D) Improved Continuity of Supply E) Lower Total Costs

39. 4)Which is a Disadvantage of E-Commerce’s relationship with Supply MNGT? • A) Enables companies to share information about quality problems • B) Identify Internet supplier’s throughout the Internet-connected world • C) Frequently requires integrating • D) Helps enable collaboration

40. Which is a Disadvantage of E-Commerce’s relationship with Supply MNGT? • A) Enables companies to share information about quality problems • B) Identify Internet supplier’s throughout the Internet-connected world • C) Frequently requires integrating • D) Helps enable collaboration

41. 5)The term supply chain management • A)was coined by consultants at Booz-Allen & Hamilton in the 1980's • B)was introduced to draw attention to the changing role of the logistics manager • C)was introduced to draw attention to the need for a perspective that recognizes the strategic importance of logistics and an integrated system-wide outlook when improving logistics processes • D)Both b and c • E)All of the above.

42. The term supply chain management • A)was coined by consultants at Booz-Allen & Hamilton in the 1980's • B)was introduced to draw attention to the changing role of the logistics manager • C)was introduced to draw attention to the need for a perspective that recognizes the strategic importance of logistics and an integrated system-wide outlook when improving logistics processes • D)Both b and c • E)All of the above.

43. 6)To say SCM is important because of dollars means that : • A)it is expensive to change how supply chains are managed • B)SCM focuses on the movement of money in international trade • C)a lot of money is spent on SCM activities • D)the cost of capital is higher for well developed supply chains • E)Both a and d

44. To say SCM is important because of dollars means that : • A)it is expensive to change how supply chains are managed • B)SCM focuses on the movement of money in international trade • C)a lot of money is spent on SCM activities • D)the cost of capital is higher for well developed supply chains • E)Both a and d

45. 7) TQM: • A)stands for timeliness and quality of management • B)is an organization-wide effort directed towards the continuous improvement of quality • C)relies on information technology D)was introduced in the early 1900's E)Both b and c

46. TQM • A)stands for timeliness and quality of management • B)is an organization-wide effort directed towards the continuous improvement of quality • C)relies on information technology D)was introduced in the early 1900's E)Both b and c

47. 8) JIT: • A)was initially developed and implemented at Toyota • B)has evolved over time and has been adapted in a wide range of sectors • C)is commonly known in industry today as lean • D)Both b and c • E)All of the above

48. JIT: • A)was initially developed and implemented at Toyota • B)has evolved over time and has been adapted in a wide range of sectors • C)is commonly known in industry today as lean • D)Both b and c • E)All of the above

49. 9) The supply chain product matrix: • A)classifies products according to predictability of demand • B)classifies the supply chain according to industry • C)indicates that a responsive supply chain should be matched with functional products D)indicates that an efficient supply chain should be matched with innovative products • E)Both a and d

50. The supply chain product matrix: • A)classifies products according to predictability of demand • B)classifies the supply chain according to industry • C)indicates that a responsive supply chain should be matched with functional products D)indicates that an efficient supply chain should be matched with innovative products • E)Both a and d