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Fundamentals of Operations Management, 4/e

Mark M. Davis, Bentley College
Nicholas J. Aquilano, University of Arizona
Richard B. Chase, USC, School of Business

Supply Chain Management

Multiple Choice Quiz


1	A supply chain is defined as the group of firms that provide all processes required to make a finished product available to the customer.
		A)	True
		B)	False


2	SCM can include having suppliers actually on site producing products or services in a manufacturers facility.
		A)	True
		B)	False


3	SCM suppliers should be viewed as "partners."
		A)	True
		B)	False


4	Wal-Mart's EDI system issues electronic purchase orders and receives electronic invoices from virtually all of Wal-Mart's suppliers.
		A)	True
		B)	False


5	Which of the following is NOT a reason that companies are depending more on their suppliers?
		A)	More focus on core competencies
		B)	Need for more flexibilities
		C)	Desire to share risks
		D)	More control over their suppliers


6	The trend in organizations is to place the SCM function:
		A)	Under the manufacturing function
		B)	Under the finance function
		C)	Under the engineering function
		D)	At the same level as the other major functions


7	Which of the following is NOT a factor impacting the supply chain?
		A)	Reduced number of suppliers
		B)	Increased competition
		C)	Longer product life cycles
		D)	Increased opportunities to strategically use technology


8	If two potential suppliers can deliver a part with the same quality and prices, the selection should be based on:
		A)	Age of the firms
		B)	A coin flip
		C)	Outside evaluation
		D)	The capabilities and flexibilities of the firms


9	Just-in-time/SCM purchasing requires the following condition:
		A)	Many suppliers
		B)	Short-term contracts
		C)	Cooperation between purchasing and suppliers
		D)	Continuous competitive bidding


10	The amount of inventory kept at each stock point in a warehouse network is usually based on:
		A)	Minimizing transportation costs
		B)	Constant demand
		C)	Tradeoffs between warehousing, inventory, and transportation costs
		D)	Product pricing strategy


11	Which of the following is NOT a benefit of SCM/JIT Purchasing?
		A)	Consistent quality
		B)	Savings on resources
		C)	Lower costs
		D)	Less dependence on suppliers


12	Purchased items account for approximately what % of costs of goods sold?
		A)	30-40%
		B)	40-50%
		C)	50-60%
		D)	60-70%
		E)	70-80%

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