Final Exam (BOPMAN)

1. The objective of supply chain management is to _________

• a)    build a chain of suppliers that focuses on maximizing profit

• b) build a chain of suppliers that focuses on maximizing value to the ultimate customer

2. The term vertical integration means to:

• a). develop the ability to produce products that complement or supplement the original product.

• b). produce goods or services previously purchased.

• c). develop the ability to produce the specified good more efficiently

• d) all of the above.

3. The bullwhip effect can be aggravated by:

• a). local optimization.

• b). sales incentives

• c). quantity discounts

• d). promotions

• e). all of the above

4. Supplier selection requires:

• a). supplier evaluation and effective thirdparty logistics.

• b). supplier development and logistics.

• c). negotiations, supplier evaluation, supplier development, and contracts.

• d). an integrated supply chain

5. Contracting involves a design to share risks, share benefits, and create incentives so as to optimize the whole supply chain.

• a). true

• b). false

6. Channel assembly is system that postpones final assembly of a product so the distri bution channel can assemble it.

• a). true

• b).false

7. Increasing fluctuation in orders or cancellations that often occurs as orders move through the supply chain.

• a). Bull whip

• b). pull data

• c). blanket order

8. Accurate sales data that initiate transactions to “pull” product through the supply chain.

• a). Bull whip

• b). pull data

• c). blanket order

9. A long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship.

• a). Bull whip

• b). pull data

• c). blanket order

10. Transferring to external suppliers a firm’s activities that have traditionally been internal.

• a). Make or buy

• b). outsourcing

• c). Keiretsu

• d). vertical integration