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Q:
The order-fulfillment process involves the activities to deliver a product or service to the customer.
Q:
Table 14.1 Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars. Unit costs Supplier Price/Unit Carrying Cost A 123 22 B 125 19 C 126 18 D 100 40 Freight Costs Supplier 15,000 units 25,000 units 50,000 units A 380,000 260,000 237,000 B 615,000 547,000 470,000 C 285,000 240,000 200,000 D 380,000 260,000 237,000 Other Costs Supplier Lead Time Admin Costs A 30 250,000 B 15 275,000 C 7 225,000 D 90 2,500,000 Use the date in Table 14.1. Analyze costs and make recommendations regarding the shipping options and suppliers. Which combination of shipping amount and supplier yields the lowest total cost?
Q:
The Bahouth Bike Company has completed an exhaustive analysis for four suppliers of bicycle frames to support their business. They considered on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table. CRITERION WEIGHT A B C D Sustainability 3 9 2 0 1 Cost 6 3 0 3 10 Quality 8 4 0 9 4 On-time Delivery 4 0 6 1 0 Using the preference matrix (total weighted score) approach for selecting suppliers, which supplier should Bahouth select? What is its total weighted score?
Q:
The Burdell Wheel and Tire Company has completed a total cost analysis for two suppliers of tires to support their business. They also consider delivery speed, consistent quality and volume flexibility in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table. CRITERION
WEIGHT
LEXINGTON TIRE
IRMO AUTO Total Cost
20
5
6 Delivery Speed
25
6
5 Consistent Quality
25
8
6 Environmental Sensitivity
30
4
7 Using the preference matrix approach for selecting suppliers, which supplier should Burdell select?
Q:
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry. Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation. The supplier will be selected based on total annual cost to supply Burdell's needs. Burdell's annual requirements are for 25,000 tires, and the company operates 250 days a year. The following data are available for two suppliers being considered. SUPPLIER
SHIPPING QUANTITY PER SHIPMENT SHIPPING COSTS
PRICE / TIRE (p)
INVENTORY HOLD COSTS (H)
LEAD TIME (DAYS) ADMIN. COSTS LEXINGTON TIRE
2,000
$18,000
$30
$6.00
6
$15,000 IRMO AUTO
1,000
$25,000
$29
$5.80
4
$18,000 Using the Total Cost Analysis for Supplier Selection, which supplier should Burdell choose? Provide details to justify your answer.
Q:
Compare and contrast competitive orientation versus cooperative orientation for supplier relations.
Q:
The authors present four types of e-purchasing; what are they and how do they work? Which of these could be accomplished by the least IT-savvy supply chain? Why?
Q:
What are some ways that supply chain partners can collaborate on product designs? How do these ways differ?
Q:
________ is the condition where the buyer has purchasing power when the purchasing volume represents a significant share of the supplier's sales.
Q:
________ are electronic marketplaces where buying and selling firms meet to do business, without protracted contract negotiations.
Q:
Knoxville Industries had their supplier design the improved body armor for their new apparel. This level of supplier involvement, known as ________ was sure to result in a pain free season.
Q:
________ is a systematic effort to reduce the cost or improve the performance of products and services, either purchased or produced.
Q:
________ is the awarding of a contract for an item or service to only one supplier.
Q:
________ programs verify that potential suppliers have the capability to provide materials or services which the buying firms require.
Q:
Steve-O engaged in ________ by using only suppliers that recycled and managed their flow of environmental waste.
Q:
________ is a supplier relation in which the buyer and seller are partners, each helping the other as much as possible.
Q:
________ is the management of the acquisition process, which includes deciding which suppliers to use, negotiating contracts, and deciding whether to buy locally.
Q:
Which one of the following statements is true about a cooperative orientation in supplier relationships?
A) It cannot be implemented in Western countries because competitive bidding is more effective in that culture.
B) It cannot be implemented in the Western countries because it always benefits the supplier.
C) It requires all parts and subassemblies to be purchased from the same supplier.
D) It requires few suppliers for each item or service.
Q:
Which one of the following statements correctly represents a benefit of centralized buying?
A) Local managers have more control over their business.
B) Purchases and production schedules are meshed more easily.
C) Customization to local preferences is simplified.
D) Increased buying power can result in significant savings in purchasing costs.
Q:
One of the benefits of a cooperative orientation in supplier relationships is:
A) the buyer sometimes suggests ways to improve the supplier's operations.
B) the supplier implements its own quality standards.
C) the buyer does not have to share much information with the supplier.
D) the supplier has complete freedom in choosing the delivery time.
Q:
The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of:
A) inventory pooling control.
B) virtual distribution.
C) electronic inventory control.
D) vendor-managed inventories.
Q:
Examples of radio frequency identification (RFID) could include all of the following except:
A) tracking the status of engineering changes during development of a new product line.
B) tracking cases and pallets of products into and out of warehouse inventories.
C) air travel use for baggage tracking.
D) tracking the flow of parts through a manufacturing process.
Q:
Approaches to e-purchasing include all of the following except:
A) catalog hubs.
B) radio frequency identification (RFID).
C) exchanges.
D) electronic data interchange (EDI).
Q:
Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer can threaten to cancel future business unless the supplier adheres to the buyer's demands, this is called a ________ source of power.
A) legal
B) reward
C) referent
D) coercive
Q:
Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer has access to knowledge, information and skills desired by the supplier, this is called a(n) ________ source of power.
A) expert
B) reward
C) referent
D) coercive
Q:
Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a supplier values identification with a buyer, this is called a(n) ________ source of power.
A) expert
B) reward
C) referent
D) legal
Q:
A systematic effort to reduce the cost or improve the performance of services or products is known as:
A) presourcing.
B) cooperative orientation.
C) supplier certification.
D) value analysis.
Q:
The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of the product is called:
A) value analysis.
B) locus of control.
C) presourcing.
D) vendor-managed inventories.
Q:
Use the following to answer the questions below. The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. They also consider on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table. CRITERION WEIGHT ACME STATE Total Cost 15 8 4 On-Time Delivery 20 5 7 Top Quality 30 7 6 Customization 35 4 6 Refer to the instruction above. Using the preference matrix (total weighted score) approach for selecting suppliers, which supplier should Steele select? A) State B) Acme C) Either is acceptable–their preference matrix scores are the same. D) More information is needed to make this decision.
Q:
Which one of the following statements is true about sourcing? A) Purchasing's primary role is to satisfy the firm's long-term supply needs. B) Purchasing's primary role should be placing and tracking orders. C) Purchasing's primary role is to negotiate lower prices. D) Purchasing's primary role is to negotiate prices and delivery dates.
Q:
Early supplier involvement is a program that allows suppliers to fill orders prior to the customer placing them.
Q:
An electronic market that brings together textbook sellers, office supply companies, apparel vendors, and students is an example of an exchange.
Q:
A catalog hub is a central distribution point where buyers may purchase items directly from manufacturers before the items are shipped to retailers.
Q:
The traditional form of e-purchasing today is electronic data interchange.
Q:
In a competitive orientation to negotiations between buyer and supplier, the buyer does not always possess the power in the relationship–the supplier sometimes holds the power and can exercise this power during negotiations with the buyer.
Q:
The competitive orientation to supplier relations is that the buyer and supplier are partners.
Q:
Green purchasing involves identifying, assessing, and managing the flow of environmental waste and finding ways to reduce it and minimize its impact on the environment.
Q:
Electronic Data Interchange enables the transmission of routine, standardized business documents from computer to computer over telephone or direct leased lines.
Q:
Value analysis is a systematic effort to reduce the cost or improve the performance of a service or product.
Q:
Once certified, a supplier can be used by the purchasing department without the purchaser having to make background checks.
Q:
In presourcing, suppliers are selected early in the concept-development stage.
Q:
________ brings product engineers, process engineers, marketers, buyers, information specialists, quality specialists and suppliers together to work jointly to design a product and all its processes.
Q:
A new product development team that is composed of product and process engineers, marketers, quality specialists, and buyers that work together to make sure the new product can actually be built is engaging in:
A) concurrent engineering.
B) joint application development.
C) reverse logistics.
D) core process design.
Q:
The stage of new service or product development at which personnel are trained and some pilot runs can be conducted to look for possible problems in production is called:
A) design.
B) analysis.
C) development.
D) full launch.
Q:
The product development team ensures compatibility of the proposed product with corporate strategy and regulatory standards in the:
A) design stage.
B) analysis stage.
C) development stage.
D) full launch stage.
Q:
The stage of new product or service development that links the creation of new services or products to the corporate strategy of the firm is called:
A) design.
B) analysis.
C) development.
D) full launch.
Q:
Which of the following is not a stage in the New Service / Product Development Process?
A) development
B) design
C) maintenance
D) analysis
Q:
14.3 New Service or Product Development Process 1) Concurrent engineering is the term used to describe a firm's development of a new product after it has been discovered that a competitor is engineering a similar product for launch.
Q:
Describe some of the benefits for companies to integrate additive manufacturing technology into its supply chain.
Q:
Additive manufacturing poses severe risks to the ________ with respect to safeguarding product designs from those who want to copy them.
Q:
Additive manufacturing could be used to offer highly ________ products, which may yield an increase in customers' perceived product value and willingness to pay.
Q:
Which of the following statements is true regarding additive manufacturing (AM) design programs, and specialized designers?
A) The need for skilled CAD designers has decreased since the implementation of AM.
B) The original CAD programs were not built to consider unique features of AM.
C) There is an abundance of AM specialized designers.
D) CAD programs are fully integrated with AM.
Q:
Currently, the greatest challenge in using additive manufacturing is:
A) process.
B) intellectual property rights.
C) quality assurance.
D) talented workforce.
Q:
The adoption of additive manufacturing (AM) requires an increase in material inputs and complex production processes.
Q:
The more sophisticated the application of additive manufacturing becomes, the lesser the company will need skilled employees and workforce planning.
Q:
One of the benefits of additive manufacturing is its ability to reduce time and resources required for design and development of new products.
Q:
Additive manufacturing is a disruptive technology that should not be incorporated into supply chains.
Q:
What are the elements of the SCOR model?
Q:
List and describe internal causes of disruptions to supply chains.
Q:
List and describe external causes of disruptions to supply chains.
Q:
Draw a graph illustrating the bullwhip effect and discuss its impact on the measures of supply chain performance.
Q:
The ________ model focuses on the supply chain processes plan, source, make, deliver, and return.
Q:
The bullwhip effect results in greater demand variability at the ________ end of the supply chain and lesser demand variability at the ________ end of the supply chain.
Q:
The SCOR model requires a:
A) three-tier supply chain.
B) point of reference.
C) make-to-order or assemble-to-order product.
D) process view.
Q:
The SCOR model focuses on the basic supply chain processes of:
A) source, control, operate, return.
B) plan source, make deliver, return.
C) purchase, operate, control, logistics.
D) operations, marketing, finance.
Q:
Possible internal causes of supply chain disruptions are:
A) late deliveries.
B) machine breakdowns or inexperienced workers.
C) product and service mix changes.
D) underfilled shipments.
Q:
An external cause of disruption caused in the supply chain is:
A) product or sales promotions.
B) new product or service introduction.
C) late deliveries.
D) engineering changes.
Q:
An internal cause of disruption in the supply chain is:
A) forecast error.
B) underfilled shipments.
C) volume changes.
D) late deliveries.
Q:
Which of the following is not an external cause of supply chain disruptions?
A) late deliveries
B) new service or product introductions
C) customer service or product mix changes
D) underfilled shipments
Q:
Which of the following is not an internal cause of supply chain disruptions?
A) engineering changes
B) batching of orders
C) service or product promotions
D) underfilled shipments
Q:
Which of the following changes would increase the likelihood of a supply chain experiencing the bullwhip effect?
A) engineering changes to the design of a product
B) instituting a more accurate materials management information system
C) closely coordinating promotions with the internal marketing department and suppliers
D) using a more reliable delivery company
Q:
Which of the following changes would decrease the likelihood of the bullwhip effect?
A) changing the mix of items in an order
B) sending partial shipments of an order
C) instituting a policy of no discounts or promotions
D) sending late deliveries of an order
Q:
The bullwhip effect is characterized by:
A) ordering patterns that experience increasing variance as you proceed downstream in the chain.
B) ordering patterns that experience increasing variance as you proceed upstream in the chain.
C) purchasing patterns that experience increasing variance downstream in the chain.
D) purchasing patterns that experience decreasing variance as you proceed upstream in the chain.
Q:
Which of the following is not a component of the supply chain?
A) order fulfillment
B) materials
C) customer relationship
D) competitors
Q:
The SCOR model focuses on the supply chain processes of planning, making, sourcing, delivering, and returning.
Q:
The SCOR model provides guidelines for how materials are to be delivered along a supply chain.
Q:
A common disruption of the supply chain resulting from internal causes is demand volume changes.
Q:
A common disruption of the supply chain resulting from internal causes is order batching.
Q:
A common disruption of the external supply chain is engineering changes.
Q:
A common disruption of the external supply chain is product and service mix changes.