Business Marketing Management B2B 11th Edition By Michael D. Hutt – Test Bank

Chapter 11—Supply Chain Management

 

MULTIPLE CHOICE

 

1. The supply chain includes a variety of firms, ranging from those that process raw materials to make component parts to those engaged in wholesaling. Included also are organizations engaged in:

a.	warehousing.
b.	transportation.
c.	materials handling.
d.	all of the above.
e.	(a) and (b) only.

 

ANS:  D                   PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing logistics & technology

 

2. To integrate activities across the supply chain, supply chain management often:

a.	requires that firms in the supply chain share sensitive and proprietary information about customers and corporate plans.
b.	creates excess inventory in the pipeline leading to the customer.
c.	involves higher transportation and handling costs.
d.	all of the above.
e.	(b) and (c) only

 

ANS:  A                   PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing logistics & technology

 

3. Supply chain management seeks to achieve which of the following goals?

a.	waste reduction
b.	unit cost reduction
c.	flexible response
d.	all of the above
e.	(a) and (b) only

ANS:  D                   PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing logistics & technology

 

4. A firm that can respond to a customer’s unique requirements for packaging and order size in a cost-effective manner is addressing which of the following supply chain goals?

a.	time compression
b.	waste reduction
c.	unit cost reduction
d.	flexible response

e.	inventory reduction

ANS:  D                   PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing logistics & technology

 

5. The most commonly reported benefits for firms that adopt supply chain management are:

a.	higher profit margins.
b.	enhanced cash flow.
c.	higher order-to-delivery cycle time.
d.	all of the above.
e.	(a) and (b) only.

ANS:  E                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing logistics & technology

 

6. The supply chains for products that could be categorized as “innovative” (e.g., high-tech products) differ from the supply chains for functional products because:

a.	demand is less predictable for innovative products.
b.	attention centers on capturing high profits during peak demand periods for the innovative product.
c.	minimizing inventory costs is not a major concern with innovative products.
d.	all of the above
e.	(a) and (b) only

ANS:  D                   PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing logistics & technology

 

7. In contrast to “innovative” products, the supply chain for functional products is designed to:

a.	minimize logistics and inventory costs.
b.	assure low-cost manufacturing.
c.	adapt production capacity to uncertain demand patterns.
d.	all of the above
e.	(a) and (b) only

ANS:  E                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing logistics & technology

 

8. Many U.S. manufacturers have adopted the just-in-time (JIT) purchasing principle. Concerning this trend, all of the following statements are accurate except:

a.	One objective of a JIT system is to eliminate waste of all kinds from the production process.
b.	Because JIT attempts to relate purchases to production requirements, the typical order size increases.
c.	A significant effect of JIT purchasing has been the drastic reduction in the number of suppliers utilized by manufacturers.
d.	Suppliers find that relationships with JIT customers are longer lasting.
e.	both (b) and (c)

ANS:  B                    PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing logistics & technology

9. In serving JIT customers, business marketers find that:

a.	the typical order size shrinks.
b.	more frequent deliveries are required.
c.	relationships with JIT customers are longer lasting and often formalized with a written contract that may span up to five years.
d.	all of the above
e.	(b) and (c) only

ANS:  D                   PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing logistics & technology

 

10. As a controllable element in the logistics system, ____ triggers the logistics process and directs the activities necessary to deliver products to customers.

a.	order processing
b.	customer service
c.	production planning
d.	inventory management
e.	information management

ANS:  A                   PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing logistics & technology

 

11. In applying the total cost approach to logistical management, management:

a.	seeks to minimize the cost associated with each logistical activity in the firm.
b.	attention centers on minimizing transportation costs.
c.	attention centers on minimizing inventory costs.
d.	recognizes that a decision made for one logistical variable affects all or some of the other logistics variables.
e.	recognizes the importance of minimizing fixed facility (warehouse) costs.

ANS:  D                   PTS:   1

NAT:  AACSB Reflective Thinking | CB&E Model Distribution | R&D Managing logistics & technology