15_krm_om10_tif_ch12 (3)

Operations Management: Processes and Supply Chains, 10e (Krajewski et al.) Chapter 12 Supply Chain Integration 1) Supply chain integration is the effective coordination of supply chain processes through the seamless flow of information to suppliers, but does not include customers, such as distributors and retailers. Answer: FALSE Reference: Introduction Difficulty: Easy Keywords: supply chain integration, supplier, customer Learning Outcome: Compare common approaches to supply chain design. 2) Supply chain integration is the effective coordination of supply chain processes through the seamless flow of information to suppliers, up and down the supply chain Answer: TRUE Reference: Introduction Difficulty: Easy Keywords: supply chain integration, supplier, customer Learning Outcome: Compare common approaches to supply chain design. 3) A supply chain can be thought of as a river that flows from raw material suppliers to consumers. Answer: TRUE Reference: Supply Chain Integration Across The Organization Difficulty: Easy Keywords: supply chain, river, raw material supplier, consumer 4) The finished goods of one firm may actually be the raw materials for another firm. Answer: TRUE Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: finished goods, raw materials 5) The bullwhip effect says that in any supply chain, the ordering patterns experience increasing variance as you move closer to the end customer. Answer: FALSE Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: bullwhip, variance Learning Outcome: Compare common approaches to supply chain design. 6) A common disruption of the external supply chain is product and service mix changes. Answer: TRUE Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: disruption, external supply chain, mix 12-1 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 7) A common disruption of the external supply chain is engineering changes. Answer: FALSE Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: external supply chain, engineering change 8) A common disruption of the supply chain resulting from internal causes is order batching. Answer: TRUE Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: disruption, internal supply chain, mix 9) A common disruption of the supply chain resulting from internal causes is demand volume changes. Answer: FALSE Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: disruption, internal supply chain, mix 10) SKUs with higher volumes and lower weekly variability may be best served with a make- to-stock supply chain design. Answer: TRUE Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: MTS, make to stock, volume, variability 11) SKUs with lower volumes and higher weekly variability may be best served with an assemble-to-order or make-to-order supply chain design. Answer: TRUE Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: ATO, MTO, assemble to order, make to order, volume, variability 12) The SCOR model provides guidelines for how materials are to be delivered along a supply chain. Answer: FALSE Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: SCOR, supply chain 13) The SCOR model focuses on the supply chain processes of planning, making, sourcing, delivering, and returning. Answer: TRUE Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: SCOR, supply chain 12-2 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 14) 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. Answer: FALSE Reference: New Service or Product Development Process Difficulty: Moderate Keywords: concurrent engineering, product development 15) Concurrent engineering helps firms avoid the costly mismatch between the design of a new offering and the capability of the processes required to produce it. Answer: TRUE Reference: New Service or Product Development Process Difficulty: Moderate Keywords: concurrent engineering, product development 16) The ramp-up stage of the development process precedes the full launch stage. Answer: FALSE Reference: New Service or Product Development Process Difficulty: Moderate Keywords: development, stage, launch stage, ramp-up 17) A strain is placed on the supply chain during the ramp-up stage of the development process due to changing volumes, quality issues and last minute design changes. Answer: TRUE Reference: New Service or Product Development Process Difficulty: Moderate Keywords: development process, ramp-up stage 18) In presourcing, suppliers are selected early in the concept-development stage. Answer: TRUE Reference: Supplier Relationship Process Difficulty: Moderate Keywords: presourcing, development Learning Outcome: Compare common approaches to supply chain design. 19) Once certified, a supplier can be used by the purchasing department without the purchaser having to make background checks. Answer: TRUE Reference: Supplier Relationship Process Difficulty: Moderate Keywords: certified, supplier, background checks Learning Outcome: Compare common approaches to supply chain design. 20) Value analysis is a systematic effort to reduce the cost or improve the performance of a service or product. Answer: TRUE Reference: Supplier Relationship Process Difficulty: Moderate 12-3 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Inc. Answer: TRUE Reference: Supplier Relationship Process Difficulty: Moderate Keywords: EDI. transmission. assessing. buyer 25) In a competitive orientation to negotiations between buyer and supplier. Answer: FALSE Reference: Supplier Relationship Process Difficulty: Moderate Keywords: purchasing power. Answer: FALSE Reference: Supplier Relationship Process Difficulty: Moderate Keywords: competitive orientation. and managing the flow of environmental waste and finding ways to reduce it and minimize its impact on the environment. 23) Green purchasing involves identifying. electronic data interchange 12-4 Copyright © 2013 Pearson Education. buyer 26) The most used form of e-purchasing today is electronic data interchange. publishing as Prentice Hall . reduce. Answer: TRUE Reference: Supplier Relationship Process Difficulty: Moderate Keywords: e-purchasing. Answer: TRUE Reference: Supplier Relationship Process Difficulty: Moderate Keywords: green purchasing. standardized business documents Learning Outcome: Compare common approaches to supply chain design. improve 21) A buyer has more purchasing power when fewer substitutes are available. environment Learning Outcome: Discuss the role of operations management in corporate social responsibility and sustainability 24) The competitive orientation to supplier relations is that the buyer and supplier are partners. supplier. supplier. Answer: TRUE Reference: Supplier Relationship Process Difficulty: Moderate Keywords: competitive orientation. standardized business documents from computer to computer over telephone or direct leased lines.Keywords: value analysis. 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. systematic. substitutes 22) Electronic Data Interchange enables the transmission of routine. customer 32) Vendor-managed inventories are an example of the forward-placement tactic. Answer: TRUE Reference: Supplier Relationship Process Difficulty: Moderate Keywords: sourcing. 12-5 Copyright © 2013 Pearson Education. supply Learning Outcome: Compare common approaches to supply chain design. 29) Reducing the number of suppliers for an item carries an increased risk of interruption in supply. Answer: TRUE Reference: Supplier Relationship Process Difficulty: Easy Keywords: exchange. Answer: FALSE Reference: Supplier Relationship Process Difficulty: Easy Keywords: catalog hub. electronic. buyer. risk. 28) An electronic market that brings together textbook sellers. 30) Early supplier involvement is a program that allows suppliers to fill orders prior to the customer placing them. Inc. Answer: FALSE Reference: Supplier Relationship Process Difficulty: Moderate Keywords: early supplier involvement Learning Outcome: Compare common approaches to supply chain design. publishing as Prentice Hall . Answer: TRUE Reference: The Order Fulfillment Process Difficulty: Moderate Keywords: vendor-managed inventories. Answer: TRUE Reference: The Order Fulfillment Process Difficulty: Moderate Keywords: order-fulfillment. central distribution point Learning Outcome: Compare common approaches to supply chain design. 31) The order-fulfillment process involves the activities to deliver a product or service to the customer. office supply companies. and students is an example of an exchange. forward-placement Learning Outcome: Compare common approaches to supply chain design.27) A catalog hub is a central distribution point where buyers may purchase items directly from manufacturers before the items are shipped to retailers. deliver. apparel vendors. seller Learning Outcome: Compare common approaches to supply chain design. 35) Using rail to move large quantities of goods is relatively cheap. cheap 36) A cross-docking warehouse holds inventory from manufacturers until retailers are prepared to sell the items. labor. which then ships the order directly to the customer with the retailer's label on it. distribution Learning Outcome: Compare common approaches to supply chain design. warehouse 37) Which of the following is NOT a component of the supply chain? A) order fulfillment B) materials C) customer relationship D) competitors Answer: D Reference: Supply Chain Integration Across The Organization Difficulty: Easy Keywords: supply chain. but transit times are long and often variable. large quantities. Answer: TRUE Reference: The Order Fulfillment Process Difficulty: Moderate Keywords: drop-shipping Learning Outcome: Compare common approaches to supply chain design. Answer: TRUE Reference: The Order Fulfillment Process Difficulty: Easy Keywords: rail. facilities and maintenance must all be considered when a firm decides to use a contract carrier for its distribution. publishing as Prentice Hall . component 12-6 Copyright © 2013 Pearson Education.33) Drop shipping occurs when a retailer passes customer orders directly to a wholesaler or manufacturer. Answer: FALSE Reference: The Order Fulfillment Process Difficulty: Easy Keywords: cross-docking. Inc. 34) The cost of equipment. Answer: TRUE Reference: The Order Fulfillment Process Difficulty: Easy Keywords: contract-carrier. B) ordering patterns that experience increasing variance as you proceed upstream in the chain. publishing as Prentice Hall .38) The bullwhip effect is characterized by: A) ordering patterns that experience increasing variance as you proceed downstream in the chain. C) purchasing patterns that experience increasing variance downstream in the chain. variation 39) 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 Answer: C Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: bullwhip effect. supply chain disruptions 12-7 Copyright © 2013 Pearson Education. D) purchasing patterns that experience decreasing variance as you proceed upstream in the chain. variation 40) 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 Answer: A Reference: Supply Chain Dynamics Difficulty: Easy Keywords: bullwhip effect. Inc. variation 41) 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 Answer: D Reference: Supply Chain Dynamics Difficulty: Easy Keywords: internal cause. Answer: B Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: bullwhip effect. disruption 45) Possible causes of disruption due to internal supply chain problems are: A) late deliveries. D) engineering changes. supply chain disruptions 43) One source of disruption caused by the internal supply chain is: A) forecast error. B) machine breakdowns or inexperienced workers. publishing as Prentice Hall . Answer: B Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: disruption. B) underfilled shipments. disruption 44) One source of disruption caused by the external supply chain is: A) product or sales promotions. D) late deliveries. B) new product or service introduction. C) volume changes. internal supply chain 12-8 Copyright © 2013 Pearson Education. Answer: A Reference: Supply Chain Dynamics Difficulty: Easy Keywords: internal supply chain. D) underfilled shipments. Inc. C) late deliveries.42) 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 Answer: B Reference: Supply Chain Dynamics Difficulty: Easy Keywords: external cause. Answer: C Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: external supply chain. C) product and service mix changes. development. control. Answer: B Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: SCOR 48) Which of the following is NOT a stage in the New Service / Product Development Process? A) development B) design C) maintenance D) analysis Answer: C Reference: New Service or Product Development Process Difficulty: Easy Keywords: stage. return. C) development. publishing as Prentice Hall . B) point of reference. New Service / Product Development Process 49) 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. D) full launch. finance. B) plan source. Answer: A Reference: New Service or Product Development Process Difficulty: Moderate Keywords: stage. D) process view. logistics. operate. B) analysis. Inc. make deliver. marketing. C) make-to-order or assemble-to-order product.46) The SCOR model focuses on the basic supply chain processes of: A) source. D) operations. operate. new. Answer: B Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: SCOR 47) The SCOR model requires a(n): A) three-tier supply chain. return. corporate strategy 12-9 Copyright © 2013 Pearson Education. C) purchase. control. B) joint application development. new. D) full launch stage. stage. stage. C) development stage. D) full launch. B) analysis stage. Answer: A Reference: Supplier Relationship Process Difficulty: Moderate Keywords: purchasing. C) development. regulatory standards 51) 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. D) Purchasing's primary role is to negotiate prices and delivery dates. B) Purchasing's primary role should be placing and tracking orders. product 52) A new product development team that is composed of product and process engineers. marketers. Answer: B Reference: New Service or Product Development Process Difficulty: Moderate Keywords: product development team. C) reverse logistics. quality specialists. D) core process design. new. and buyers that work together to make sure the new product can actually be built is engaging in: A) concurrent engineering.50) The product development team ensures compatibility of the proposed product with corporate strategy and regulatory standards in the: A) design stage. Answer: C Reference: New Service or Product Development Process Difficulty: Moderate Keywords: development. product 53) Which one of the following statements is TRUE about purchasing? A) Purchasing's primary role is to satisfy the firm's long-term supply needs. Inc. corporate strategy. B) analysis. publishing as Prentice Hall . C) Purchasing's primary role is to negotiate lower prices. service. supply 12-10 Copyright © 2013 Pearson Education. service. Answer: A Reference: New Service or Product Development Process Difficulty: Easy Keywords: development. 000 $18.000 1. sourcing.000 B) $750. supplier selection AACSB: Analytic skills 12-11 Copyright © 2013 Pearson Education.00 6 $15. Burdell's annual requirements are for 25.000 $29 $5. supplier selection AACSB: Analytic skills 55) Refer to the instruction above. The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.000 D) $3. What are the annual material costs for Lexington Tire? A) $60. sourcing. publishing as Prentice Hall . SUPPLIER LEXINGTON TIRE IRMO AUTO SHIPPING QUANTITY ANNUAL PRICE INVENTORY LEAD PER SHIPPING / TIRE HOLD COSTS TIME SHIPMENT COSTS (p) (H) (DAYS) ADMIN.000 B) $150.000 $30 $6.000 tires. and the company operates 250 days a year. COSTS 2.000 Answer: A Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. The following data are available for two suppliers being considered.80 4 $18. Inc.000 D) $3.Use the following to answer the questions below. Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.000 Answer: B Reference: Supplier Relationship Process Difficulty: Easy Keywords: supplier relationship.000 $25. The supplier will be selected based on total annual cost to supply Burdell's needs.000 54) Refer to the instruction above. What are the annual material savings available when comparing the two suppliers? A) $25.000 C) $725.000 C) $725. What are the annual inventory costs if the lower inventory cost supplier is selected? A) $5.56) Refer to the instruction above.320 Answer: A Reference: Supplier Relationship Process Difficulty: Hard Keywords: supplier relationship. supplier selection AACSB: Analytic skills 57) Refer to the instruction above.000 B) 750 C) 25 D) 100 Answer: C Reference: Supplier Relationship Process Difficulty: Easy Keywords: supplier relationship. What are the total annual costs if Lexington Tire is the supplier selected? A) $791.600 D) $6.000 Answer: D Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. What are the annual shipping savings available when comparing the two suppliers? A) $25. Inc.600 C) $6. supplier selection AACSB: Analytic skills 58) Refer to the instruction above. How many shipments per year are required if Irmo Auto is the supplier selected? A) 1. sourcing. publishing as Prentice Hall . sourcing. sourcing.600 B) $792.220 B) $9.500 D) $7.000 B) $18.000 C) $72. supplier selection AACSB: Analytic skills 12-12 Copyright © 2013 Pearson Education.320 Answer: B Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship.320 D) $769.600 C) $772. sourcing. supplier selection AACSB: Analytic skills 59) Refer to the instruction above. supplier selection AACSB: Analytic skills 63) Refer to the instruction above. sourcing.320 Answer: B Reference: Supplier Relationship Process Difficulty: Hard Keywords: supplier relationship. Inc.220 D) $769. Answer: C Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. either supplier could be selected. How does this change the decision on tire suppliers? A) The high-cost supplier is now lower. The high-cost supplier desperately wants the Burdell Company business. They have indicated that if Burdell will select them as their supplier. What are the total annual savings if the lower cost supplier is selected? A) $1.380 C) $3. supplier selection 12-13 Copyright © 2013 Pearson Education. they will not charge for shipping. supplier selection AACSB: Analytic skills 61) Refer to the instruction above.000 B) $19. Based on your Total Cost Analysis. which supplier should be selected if the lower cost supplier is chosen? A) Lexington Tire B) Irmo Auto C) Since the costs are the same.60) Refer to the instruction above. and Burdell can select either supplier. and becomes the tire supplier for Burdell. publishing as Prentice Hall . B) The suppliers are now equal cost. Answer: B Reference: Supplier Relationship Process Difficulty: Hard Keywords: supplier relationship. What are the total annual costs if Irmo Auto is the supplier selected? A) $791.600 C) $773.000 D) $6.600 B) $792. D) More information is required to make this decision. sourcing.320 Answer: C Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. supplier selection 62) Refer to the instruction above. sourcing. sourcing. D) More information is needed to answer this question. C) It doesn't change the decision–they are still the high-cost supplier. Using the preference matrix approach for selecting suppliers. publishing as Prentice Hall . preference matrix AACSB: Analytic skills 65) Refer to the instruction above. supplier selection. Using the preference matrix approach for selecting suppliers. supplier selection. supplier selection. They also consider delivery speed. sourcing. CRITERION Total Cost Delivery Speed Consistent Quality Environmental Sensitivity WEIGHT 20 25 25 30 LEXINGTON TIRE 5 6 8 4 IRMO AUTO 6 5 6 7 64) Refer to the instruction above. and each supplier is scored on each criterion (1 = poor. sourcing. Each criterion is given a weight (total = 100 points). what is Lexington Tire's total weighted score? A) 570 B) 100 C) 23 D) 605 Answer: A Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. preference matrix 12-14 Copyright © 2013 Pearson Education. Inc. The data are shown in the following table.Use the following to answer the questions below. consistent quality and environmental sensitivity in their selection process. D) More information is needed to make this decision. which supplier should Burdell select? total weighted score? A) Lexington Tire B) Irmo Auto C) Neither is acceptable–their preference matrix scores are not high enough to be selected. The Burdell Wheel and Tire Company has completed a total cost analysis for two suppliers of tires to support their business. Using the preference matrix approach for selecting suppliers. 10 = excellent). sourcing. preference matrix AACSB: Analytic skills 66) Refer to the instruction above. what is Irmo Auto's total weighted score? A) 570 B) 100 C) 24 D) 605 Answer: D Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. Answer: B Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. sourcing.AACSB: Analytic skills Use the following to answer the questions below. The supplier will be selected based on total annual cost to supply Steele's needs. but quantities. The Steele Bike Company assembles bicycles for a major retail toy outlet. have quoted the same price for the frames. Inc.000 $45.000 C) $750. Annual requirements are for 100.000 67) Refer to the instruction above. supplier selection AACSB: Analytic skills 68) Refer to the instruction above. sourcing. Two suppliers.000 frames.800 B) $390. The following data are available for the two suppliers. wants to locate a low-cost supplier for the frames used in this assembly operation.000 Answer: C Reference: Supplier Relationship Process Difficulty: Easy Keywords: supplier relationship. the owner.80 LEAD TIME (DAYS) 7 3 ADMIN.000 B) $750.000 PRICE / FRAME (p) $39 $39 INVENTORY HOLD COSTS (H) $7. publishing as Prentice Hall .900. lead times and shipping costs are considerably different. supplier selection AACSB: Analytic skills 12-15 Copyright © 2013 Pearson Education. Acme and State.500 ANNUAL SHIPPING COSTS $35. SHIPPING QUANTITY PER SUPPLIER SHIPMENT ACME 7.000 $60. COSTS $20.000 C) $3. The main purchase is bicycle frames for making these bicycles. What are the annual material costs for Acme? A) $550. Dan Steele. What are the annual material savings available when comparing the two suppliers? A) $7.000 D) The materials are the same cost from either supplier Answer: D Reference: Supplier Relationship Process Difficulty: Easy Keywords: supplier relationship.500 STATE 2.80 $7. and the company operates 200 days a year.000 D) $35. 050 D) $4.550 B) $96. publishing as Prentice Hall .000 C) $7.011. Inc.450 B) $113.450 D) $7. supplier selection AACSB: Analytic skills 12-16 Copyright © 2013 Pearson Education. sourcing. supplier selection AACSB: Analytic skills 72) Refer to the instruction above. supplier selection AACSB: Analytic skills 71) Refer to the instruction above. sourcing.500 C) $21.010.3 B) 40 C) 200 D) 10 Answer: B Reference: Supplier Relationship Process Difficulty: Easy Keywords: supplier relationship.550 C) $4.800 Answer: C Reference: Supplier Relationship Process Difficulty: Hard Keywords: supplier relationship.550 Answer: D Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. What are the annual inventory costs if the lower inventory cost supplier is selected? A) $56. sourcing. What are the total annual costs if Acme is the supplier selected? A) $4.001. sourcing. supplier selection AACSB: Analytic skills 70) Refer to the instruction above. How many shipments per year are required if State is the supplier selected? A) 13.500 D) Shipping costs are the same from either supplier Answer: A Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship.69) Refer to the instruction above. What are the annual shipping savings available when comparing the two suppliers? A) $25.000 B) $10. 400 D) $14. they will not charge for shipping.73) Refer to the instruction above.050 D) $4. sourcing. sourcing. supplier selection AACSB: Analytic skills 76) Refer to the instruction above. The high-cost supplier has indicated that if Steele will select them as the supplier of choice. Answer: A Reference: Supplier Relationship Process Difficulty: Easy Keywords: supplier relationship.001. either supplier could be selected. What are the total annual costs if State is the supplier selected? A) $4.500 C) $9. C) It doesn't change the decision–they are still the high-cost supplier. How does this change the decision on bicycle frame suppliers? A) The high-cost supplier is now the low-cost supplier. D) More information is needed to answer this question. Based on your Total Cost Analysis. supplier selection 75) Refer to the instruction above. which supplier should be selected if the lower cost supplier is chosen? A) Acme B) State C) Since the costs are the same.550 Answer: A Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. sourcing.900 Answer: D Reference: Supplier Relationship Process Difficulty: Hard Keywords: supplier relationship.450 B) $110.016.450 C) $4. supplier selection AACSB: Analytic skills 74) Refer to the instruction above. publishing as Prentice Hall . Inc. B) The suppliers are now equal cost. D) More information is required to make this decision.000 B) $12. and becomes the frame supplier for Steele. supplier selection 12-17 Copyright © 2013 Pearson Education. What are the total annual savings if the lower cost supplier is selected? A) $1. sourcing. Answer: A Reference: Supplier Relationship Process Difficulty: Hard Keywords: supplier relationship. and Steele can select either supplier.026. what is Acme's total weighted score? A) 100 B) 570 C) 24 D) 590 Answer: B Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. Each criterion is given a weight (total = 100 points). supplier selection. publishing as Prentice Hall . Using the preference matrix approach for selecting suppliers. preference matrix 12-18 Copyright © 2013 Pearson Education. preference matrix AACSB: Analytic skills 79) Refer to the instruction above. Using the preference matrix approach for selecting suppliers.Use the following to answer the questions below. 10 = excellent). sourcing. supplier selection. preference matrix AACSB: Analytic skills 78) Refer to the instruction above. what is State's total weighted score? A) 570 B) 100 C) 23 D) 590 Answer: D Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. supplier selection. sourcing. Inc. The data are shown in the following table. The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. sourcing. They also consider on-time speed. and each supplier is scored on each criterion (1 = poor. which supplier should Steele select? A) State B) Acme C) Either is acceptable–their preference matrix scores are the same. Using the preference matrix (total weighted score) approach for selecting suppliers. D) More information is needed to make this decision. top quality and customization in their selection process. CRITERION Total Cost On-Time Delivery Top Quality Customization WEIGHT 15 20 30 35 ACME 8 5 7 4 STATE 4 7 6 6 77) Refer to the instruction above. Answer: A Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. power Learning Outcome: Compare common approaches to supply chain design. negotiation. information and skills desired by the supplier. C) supplier certification. D) value analysis. presourcing Learning Outcome: Compare common approaches to supply chain design. orientation. early supplier involvement. value analysis 82) Suppliers can gain power from a number of sources in the buyer / supplier relationship. early supplier involvement. 83) Suppliers can gain power from a number of sources in the buyer / supplier relationship. orientation. D) vendor-managed inventories. publishing as Prentice Hall . B) cooperative orientation. A) expert B) reward C) referent D) coercive Answer: A Reference: Supplier Relationship Process Difficulty: Hard Keywords: supply chain. Inc. competitive. A) expert B) reward C) referent D) legal Answer: C Reference: Supplier Relationship Process Difficulty: Hard Keywords: supply chain. collaboration. negotiation. Answer: D Reference: Supplier Relationship Process Difficulty: Easy Keywords: supply chain. collaboration. sources. competitive. 12-19 Copyright © 2013 Pearson Education. this is called a(n) ________ source of power. 81) A systematic effort to reduce the cost or improve the performance of services or products is known as: A) presourcing.80) 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. design. power Learning Outcome: Compare common approaches to supply chain design. Answer: C Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supply chain. When a buyer has access to knowledge. design. When a supplier values identification with a buyer. C) presourcing. this is called a(n) ________ source of power. B) locus of control. sources. A) legal B) reward C) referent D) coercive Answer: D Reference: Supplier Relationship Process Difficulty: Hard Keywords: supply chain. competitive. this is called a ________ source of power. traditional Learning Outcome: Compare common approaches to supply chain design. buying. B) virtual distribution. Answer: B Reference: Supplier Relationship Process Difficulty: Hard Keywords: supply chain.84) Suppliers can gain power from a number of sources in the buyer / supplier relationship. C) air travel use for baggage tracking. Answer: A Reference: Supplier Relationship Process Difficulty: Hard Keywords: supply chain. C) exchanges. publishing as Prentice Hall . sources. C) electronic inventory control. power 85) Approaches to e-purchasing include all of the following EXCEPT: A) catalog hubs. supply chain. B) tracking cases and pallets of products into and out of warehouse inventories. Inc. negotiation. buying. D) electronic data interchange (EDI). Answer: D Reference: Supplier Relationship Process Difficulty: Easy Keywords: virtual. D) vendor-managed inventories. e-purchasing Learning Outcome: Compare common approaches to supply chain design. 12-20 Copyright © 2013 Pearson Education. e-purchasing 87) The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of: A) inventory pooling control. 86) 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. D) tracking the flow of parts through a manufacturing process. orientation. When a buyer can threaten to cancel future business unless the supplier adheres to the buyer's demands. B) radio frequency identification (RFID). D) the supplier has complete freedom in choosing the delivery time. Answer: A Reference: Supplier Relationship Process Difficulty: Moderate Keywords: cooperative orientation. 90) 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. 91) Which of the following statements about cross-docking is NOT correct? A) Cross-docking is packing products on incoming shipments so they can be easily sorted for outgoing shipments based on their final destination. 89) Which one of the following statements correctly represents a benefit of centralized buying? A) Local managers have more control over their business. C) Items are moved from incoming vehicles to outgoing vehicles without being stored in warehouse inventory. B) It cannot be implemented in the Western countries because it always benefits the supplier. B) Cross-docking reduces inventory and storage space requirements. B) Purchases and production schedules are meshed more easily. cross-docking 12-21 Copyright © 2013 Pearson Education. C) the buyer does not have to share much information with the supplier. C) It requires all parts and subassemblies to be purchased from the same supplier. Answer: D Reference: Supplier Relationship Process Difficulty: Moderate Keywords: cooperative orientation. B) the supplier implements its own quality standards. C) Customization to local preferences is simplified. publishing as Prentice Hall . Inc. Answer: D Reference: Supplier Relationship Process Difficulty: Moderate Keywords: centralized buying. Answer: B Reference: Order Fulfillment Process Difficulty: Moderate Keywords: order fulfillment. but handling costs and lead times tend to increase. supplier Learning Outcome: Compare common approaches to supply chain design. D) Inbound and outbound shipments must be tightly coordinated for cross-docking to work. D) Increased buying power can result in significant savings in purchasing costs. D) It requires few suppliers for each item or service. supplier relationship Learning Outcome: Compare common approaches to supply chain design.88) One of the benefits of a cooperative orientation in supplier relationships is: A) the buyer sometimes suggests ways to improve the supplier's operations. purchasing Learning Outcome: Compare common approaches to supply chain design. publishing as Prentice Hall . customer service.92) Which of the following is NOT an advantage the Internet provides for a firm's order placement process? A) greater variety and better quality of products available B) cost reduction C) increase in revenue flow D) pricing flexibility E) global access Answer: A Reference: Customer Relationship Process Difficulty: Easy Keywords: customer relationship. B) the firm gains more control over the customer interface process. D) automated systems are replaced by human contact. third-party logistics Learning Outcome: Compare common approaches to supply chain design. C) customer service labor costs are low. 95) What is the meaning of the acronym 3PL? A) three pofit/loss periods B) three purchasing locations C) three partner leverage D) third party logistics provider Answer: D Reference: The Order Fulfillment Process Difficulty: Moderate Keywords: 3PL. 94) Which of the following is NOT a lever in an integrated supply chain? A) collaborative activities by supply chain partners B) reduced replenishment lead times C) reduced order lot sizes D) elimination of product shortages and backorders Answer: D Reference: Customer Relationship Process Difficulty: Moderate Keywords: supply chain. 12-22 Copyright © 2013 Pearson Education. Answer: B Reference: Customer Relationship Process Difficulty: Moderate Keywords: customer relationship. Internet. levers Learning Outcome: Compare common approaches to supply chain design. outsourcing Learning Outcome: Compare common approaches to supply chain design. order placement 93) Which of the following is NOT an advantage resulting from a firm outsourcing its customer service process? A) specific detailed questions can be answered by the customer service representative. Inc. quality specialists and suppliers together to work jointly to design a product and all its processes. information specialists. Answer: Concurrent engineering Reference: New Service or Product Development Process Difficulty: Easy Keywords: concurrent engineering. third-party logistics Learning Outcome: Compare common approaches to supply chain design. publishing as Prentice Hall . design. supply chain operations reference model 101) ________ brings product engineers.96) What services are typically offered by a 3PL? A) transportation B) product design C) catalog hub D) auction Answer: A Reference: The Order Fulfillment Process Difficulty: Moderate Keywords: 3PL. supply chain operations reference model 99) 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. Inc. 97) The ________ is the phenomenon in supply chains whereby ordering patterns experience increasing variance as you proceed upstream in the chain. Answer: ATO (assemble-to-order). variance 98) ________ and ________ supply chain designs are well-suited to products with low demand and high variability. buyers. deliver. marketers. source. customer or downstream Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: bullwhip effect 100) The ________ model focuses on the supply chain processes plan. and return. new 12-23 Copyright © 2013 Pearson Education. Answer: SCOR (supply chain operations reference) Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: SCOR. MTO (make-to-order) Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: SCOR. Answer: bullwhip effect Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: bullwhip effect. make. process engineers. Answer: factory or upstream. Answer: Supplier certification Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier. Answer: green purchasing Reference: Supplier Relationship Process Difficulty: Moderate Keywords: green purchasing. certification 106) ________ is the awarding of a contract for an item or service to only one supplier. Answer: Value analysis Reference: Supplier Relationship Process Difficulty: Moderate Keywords: value analysis 12-24 Copyright © 2013 Pearson Education. acquisition 103) ________ is a supplier relation in which the buyer and seller are partners. negotiating contracts. environmental waste Learning Outcome: Discuss the role of operations management in corporate social responsibility and sustainability 105) ________ programs verify that potential suppliers have the capability to provide materials or services which the buying firms require. Answer: Purchasing Reference: Supplier Relationship Process Difficulty: Moderate Keywords: purchasing. Answer: Sole sourcing Reference: Supplier Relationship Process Difficulty: Moderate Keywords: sole sourcing. which includes deciding which suppliers to use. and deciding whether to buy locally.102) ________ is the management of the acquisition process. publishing as Prentice Hall . source 107) ________ is a systematic effort to reduce the cost or improve the performance of products and services. Answer: Cooperative orientation Reference: Supplier Relationship Process Difficulty: Moderate Keywords: cooperative supplier orientation Learning Outcome: Compare common approaches to supply chain design. each helping the other as much as possible. Inc. either purchased or produced. 104) Steve-O engaged in ________ by using only suppliers that recycled and managed their flow of environmental waste. 111) The ________ process involves the activities required to register the need for a product or service and to confirm the acceptance of the order. Answer: order fulfillment Reference: The Order Fulfillment Process Difficulty: Moderate Keywords: order fulfillment 113) ________ is an extreme application of the forward placement tactic.108) Knoxville Industries had their supplier design the improved body armor for their new apparel. Inc. 110) ________ is the condition where the buyer has purchasing power when the purchasing volume represents a significant share of the supplier's sales. without protracted contract negotiations. known as ________ was sure to result in a pain free season. This level of supplier involvement. Answer: Vendor managed inventories (VMI) Reference: The Order Fulfillment Process Difficulty: Moderate Keywords: forward placement Learning Outcome: Compare common approaches to supply chain design. 12-25 Copyright © 2013 Pearson Education. 109) ________ are electronic marketplaces where buying and selling firms meet to do business. publishing as Prentice Hall . Answer: order placement Reference: The Customer Relationship Process Difficulty: Moderate Keywords: order placement 112) The ________ process involves the activities required to deliver a product or service to a customer. Answer: presourcing Reference: Supplier Relationship Process Difficulty: Moderate Keywords: presourcing Learning Outcome: Compare common approaches to supply chain design. Answer: Exchanges Reference: Supplier Relationship Process Difficulty: Moderate Keywords: exchange Learning Outcome: Compare common approaches to supply chain design. Answer: Economic dependency Reference: Supplier Relationship Process Difficulty: Moderate Keywords: economic dependency Learning Outcome: Compare common approaches to supply chain design. and underfilled shipments. but should illustrate increased variability upstream in the supply chain. source. product or service promotions. Answer: Sketches will vary slightly. Reference: Supply Chain Dynamics/Measures of Supply Chain Performance Difficulty: Moderate Keywords: bullwhip effect. publishing as Prentice Hall . and information errors. disruptions 117) . inventory measures 115) List and describe typical disruptions to the external supply chains. information errors. Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: external supply chains. Product or service mix changes occur when customers change the mix of items in an order and cause a ripple effect throughout the supply chain. disruptions 116) .List and describe typical disruptions to the internal supply chain.114) Draw a graph illustrating the bullwhip effect and discuss its impact on the measures of supply chain performance. Late deliveries of materials or delays in essential services can force a firm to switch its schedule from production of one product model to another. Financial measures like ROA. will fluctuate as the whip is cracked. weeks of supply. Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: SCOR 12-26 Copyright © 2013 Pearson Education. members of the supply chain will be caught holding the bag on inventory and forced to dump it at bargain prices and at other times supply chain members will be unable to acquire the inventory they need or will have to pay exorbitant costs to acquire it. Process measures relating to customer relationship. cash flow. Answer: Typical disruptions include internally generated shortages. such as demand-forecast errors or physical count errors. At times. the measures may be deceptively strong. Internally generated shortages are the shortage of parts that result from machine breakdowns or inexperienced workers. Finally.What are the elements of the SCOR model? Answer: The SCOR model focuses on basic supply chain plan. Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: internal supply chains. Inc. product and service mix changes. new product or service introductions. engineering changes. suppliers that send partial shipments do so because of disruptions at their own plants. Volume changes occur when customers change the quantity of the product or service they have ordered for a specific date or unexpectedly demand more of a standard product or service. Product or service promotions are a common practice of firms producing standard products or services and can cause a spike in demand. total revenue. CGS. Engineering changes are changes to designs. and working capital will also behave cyclically but will be weaker than a supply chain operating sans bullwhip effect. deliver. and supplier relationship will also fluctuate although measures like "customer satisfaction" may deteriorate as customers tire of the rollercoaster performance of the supply chain. Answer: Typical disruptions include volume changes. late deliveries. repeated again and again along the supply chain. order fulfillment. make. The inventory measures of supply chain performance. average aggregate inventory value. but at other times in the bullwhip cycle the measures will be abysmal. The introduction of new products or services can cause disruptions. can cause disruptions. and return processes. and inventory turnover. At times. Finally. which is a program that includes suppliers in the design phase of a service or product. responsibility for the design of certain components or systems of the product. which is a systematic effort to reduce the cost or improve the performance of services or products. and flows of material involved in the production of a service or an item. improved profit margins. In the automotive industry. materials. It is an intensive examination of the services. publishing as Prentice Hall . Reference: Supply Chain Dynamics Difficulty: Moderate Keywords: presourcing. an even higher level of early supplier involvement is known as presourcing. either purchased or produced. Firms can also improve performance by engaging in value analysis. early supplier involvement 12-27 Copyright © 2013 Pearson Education. whereby suppliers are selected early in a product's concept development stage and are given significant. and distribution costs. Presourced suppliers also take responsibility for the cost. Suppliers provide suggestions for design changes and materials choices that will result in more efficient operations and higher quality. materials. information systems. Benefits include reduced production.118) What are some ways that supply chain partners can collaborate on product designs? How do these ways differ? Answer: An approach that many firms are using in their design collaboration process is called early supplier involvement. if not total. and increased customer satisfaction. Inc. and on-time delivery of the items they produce. processes. quality. value analysis. what are they and how do they work? Which of these could be accomplished by the least IT-savvy supply chain? Why? Answer: The four approaches to e-purchasing presented in the text are: (1) electronic data interchange. Reference: Supplier Relationship Process Difficulty: Moderate Keywords: competitive orientation. allowing organizations to exchange information even if they have different hardware and software components. supplier relations Learning Outcome: Compare common approaches to supply chain design. the buying firm can negotiate prices with individual suppliers for items such as office supplies. Answer: Competitive orientation views supplier relations as a negotiation between buyer and seller. Reference: Supplier Relationship Process Difficulty: Moderate Keywords: presourcing. and (4) auctions. Exchanges are often used for "spot" purchases to satisfy an immediate need at the lowest possible cost. Electronic data interchange (EDI) is a technology that enables the transmission of routine. purchase orders. For example. standardized business documents from computer to computer over telephone or direct leased lines. The hub connects the firm to potentially hundreds of suppliers through the Internet. the other loses. joint work on quality. An exchange is an electronic marketplace where buying firms and selling firms come together to do business. Generally. 12-28 Copyright © 2013 Pearson Education. early supplier involvement 120) Compare and contrast competitive orientation versus cooperative orientation for suppler relations. Invoices. Commodity items such as oil. Employees use their PCs to select the items they need. publishing as Prentice Hall . and buyers select what they need and purchase them electronically. which requires one-to-one connections to individual suppliers. (3) exchanges. or energy fit this category. and capacity development. Moreover. each one helping the other as much as possible. Answers will vary as to the least IT-intensive approach. which are electronically dispatched to the suppliers. cooperative orientation. Suppliers post their catalog of items on the hub.119) The authors present four types of e-purchasing. The exchange maintains relationships with buyers and sellers. where firms place competitive bids to buy something. and the system generates the purchase orders. Inc. and so forth. technical equipment. a site may be formed for a particular industry. technological. saving the costs of EDI. Special communications software translates documents into and out of a generic form. a cooperative orientation means long-term commitment. and support by the buyer of the supplier's managerial. however EDI would probably not be the best choice for this position piece. making it easy to do business without the aspect of contract negotiations or other types of long-term conditions. The catalog that the buying firm's employees see consists only of the approved items and the prices the buyer has prenegotiated with its suppliers. It is generally considered a zero-sum game–one side wins. the buyer and seller are partners. services. value analysis. (2) catalog hubs. Sharing of information takes place in both directions. An extension of the exchange is the auction. and payments information are some of the routine documents that EDI can handle Catalog hubs can be used to reduce the costs of placing orders to suppliers as well as the costs of the services or goods themselves. and firms with excess capacity or materials can offer them for sale to the highest bidder. Bids can either be closed or open to the competition. In cooperative orientation. steel. The following data are available for two suppliers being considered. 122) The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry. Facility Location.600 Reference: Supplier Relationship Process Difficulty: Hard Keywords: supplier relationship. A critical decision affecting the effectiveness of supply chains is the location of facilities that serve as points of service.000 $25.000 Using the Total Cost Analysis for Supplier Selection. labor.220 Vs.000 $29 INVENTORY LEAD HOLD COSTS TIME (H) (DAYS) ADMIN. Mode Selection. cooperative orientation. The drivers for the selection should be the firm's competitive priorities. supplier relations Learning Outcome: Compare common approaches to supply chain design. Capacity. (4) pipeline. 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. Ownership. which supplier should Burdell choose? Provide details to justify your answer. The five basic modes of transportation are (1) truck. The firm could instead leave the distribution to a third-party logistics provider (3PL).121) Define the term logistics and briefly discuss any three important logistics decisions. supplier selection AACSB: Analytic skills 12-29 Copyright © 2013 Pearson Education. negotiating with the carrier for specific services. Burdell's annual requirements are for 25. They can help with the design of a client's supply chain and facilitate the flow of information up and down the supply chain. 2) facility location. The five important decisions presented in the text are 1) degree of ownership. Those services could involve taking over a major portion of the order fulfillment process. Answer: Irmo Auto Total Cost of $773. COSTS $6. (3) ship. SHIPPING QUANTITY PRICE PER SHIPPING / TIRE SUPPLIER SHIPMENT COSTS (p) LEXINGTO N TIRE 2.00 6 $15. for corporate clients that need to get their products to market. and maintenance could be high. Although this approach may help to better achieve the firm's competitive priorities. facilities. from transportation and packaging services to warehousing and inventory management.000 $5. 4) capacity level. publishing as Prentice Hall . The firm has the most control over the logistics process if it owns and operates it. The ownership decision and the modal selection decision are often intertwined because the question of how much capacity is needed must be resolved. or manufacture.80 4 $18. (2) train.000 $18. storage. Inc. the cost of equipment.000 $30 IRMO AUTO 1. Answer: Logistics is the process whereby products or services are delivered to the customer.000 tires. The performance of a logistics process is directly linked to its capacity. and 5) amount of cross docking. and the company operates 250 days a year. Lexington's cost of $792. thereby becoming a private carrier. 3PLs typically provide integrated services. sourcing. 3) mode selection. and (5) airplane. Reference: The Order Fulfillment Process Difficulty: Moderate Keywords: competitive orientation. 80 $7. lead times and shipping costs are considerably different. The data are shown in the following table.000 $60.000 frames.500 SHIPPING COSTS $35. The supplier will be selected based on total annual cost to supply Steele's needs.123) The Burdell Wheel and Tire Company has completed a total cost analysis for two suppliers of tires to support their business. SHIPPING QUANTITY PER SUPPLIER SHIPMENT ACME 7. consistent quality and volume flexibility in their selection process.000 $45. COSTS $20. preference matrix AACSB: Analytic skills 124) The Steele Bike Company assembles bicycles for a major retail toy outlet. They also consider delivery speed. Dan Steele. have quoted the same price for the frames. the owner. Each criterion is given a weight (total = 100 points). supplier selection. Inc. but quantities. Annual requirements are for 100. sourcing. publishing as Prentice Hall . and the company operates 200 days a year. Acme and State. The following data are available for the two suppliers. which supplier should be selected if the lower cost supplier is chosen? Answer: Acme Reference: Supplier Relationship Process Difficulty: Hard Keywords: supplier relationship. The main purchase is bicycle frames for making these bicycles. which supplier should Burdell select? Answer: Irmo Auto Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. Two suppliers. supplier selection AACSB: Analytic skills 12-30 Copyright © 2013 Pearson Education.80 LEAD TIME (DAYS) 7 3 ADMIN.000 PRICE / FRAME (p) $39 $39 INVENTORY HOLD COSTS (H) $7.500 STATE 2.000 Based on your Total Cost Analysis. CRITERION Total Cost Delivery Speed Consistent Quality Environmental Sensitivity WEIGHT 20 25 25 LEXINGTON TIRE 5 6 8 IRMO AUTO 6 5 6 30 4 7 Using the preference matrix approach for selecting suppliers. 10 = excellent). wants to locate a low-cost supplier for the frames used in this assembly operation. sourcing. and each supplier is scored on each criterion (1 = poor. They considered on-time speed. publishing as Prentice Hall . and 65 higher than B Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. 18 higher than A. preference matrix AACSB: Analytic skills 126) The Bahouth Bike Company has completed an exhaustive analysis for four suppliers of bicycle frames to support their business. CRITERION Sustainability Cost Quality On-time Delivery WEIGHT 3 6 8 4 A 9 3 4 0 B 2 0 0 6 C 0 3 9 1 D 1 10 4 0 Using the preference matrix (total weighted score) approach for selecting suppliers. Each criterion is given a weight (total = 100 points). which supplier should Bahouth select? What is its total weighted score? Answer: Supplier D has a weighted score of 95 which is 5 higher than Supplier C. Inc. preference matrix AACSB: Analytic skills 12-31 Copyright © 2013 Pearson Education. supplier selection. The data are shown in the following table. top quality and customization in their selection process. 10 = excellent).125) The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. and each supplier is scored on each criterion (1 = poor. which supplier should Steele select? What is the total weighted score? Answer: State. CRITERION Total Cost On-Time Delivery Top Quality Customization WEIGHT 15 20 30 35 ACME 8 5 7 4 STATE 4 7 6 6 Using the preference matrix (total weighted score) approach for selecting suppliers. 10 = excellent). The data are shown in the following table. sourcing. They also consider on-time speed. and each supplier is scored on each criterion (1 = poor. top quality and customization in their selection process. Each criterion is given a weight (total = 100 points). supplier selection. with a total weighted score of 590 Reference: Supplier Relationship Process Difficulty: Moderate Keywords: supplier relationship. sourcing. 1 2000 Which warehouse configuration is best for Jackson Sheds? Answer: The cost table for four through seven warehouses is shown. Reference: The Order Fulfillment Process Difficulty: Hard Keywords: expected value AACSB: Analytic skills 12-32 Copyright © 2013 Pearson Education. Likelihood Demand 0. then the per unit cost is $2 per unit. Demand can range from 1000 units per year up to 2000 units in increments of 250 units.2 1250 0. the per unit cost for each unit in excess of system capacity is $5 per unit. Each warehouse has a capacity of 300 units and costs $200 to maintain over the course of a year. The likelihood for each possible demand is shown in the table.1 1000 0.3 1750 0. publishing as Prentice Hall . but if the warehouse capacity is insufficient. ranging from four warehouses to seven warehouses (only integer values). Inc. If the system warehouse capacity is sufficient to handle the year's demand.127) Jackson Sheds has four different warehouse configurations under study. the lowest cost occurs at a six warehouse system.3 1500 0. 2 1250 0. Demand can range from 1000 units per year up to 2000 units in increments of 250 units. Each warehouse has a capacity of 400 units and costs $200 to maintain over the course of a year. publishing as Prentice Hall .1 2000 Which warehouse configuration is best for Jackson Sheds? Answer: The cost table for four through seven warehouses is shown.1 1000 0. Reference: The Order Fulfillment Process Difficulty: Hard Keywords: expected value AACSB: Analytic skills 12-33 Copyright © 2013 Pearson Education. Likelihood Demand 0.3 1500 0. Inc. If the system warehouse capacity is sufficient to handle the year's demand.3 1750 0. the lowest cost occurs at a fivewarehouse system. The likelihood for each possible demand is shown in the table.128) Jackson Sheds has four different warehouse configurations under study. then the per unit cost is $2 per unit. the per unit cost for each unit in excess of system capacity is $5 per unit. ranging from four warehouses to seven warehouses (only integer values). but if the warehouse capacity is insufficient. 129) Jackson Sheds has four different warehouse configurations under study. The likelihood for each possible demand is shown in the table. Inc. the per unit cost for each unit in excess of system capacity is $5 per unit.2 1250 0. Reference: The Order Fulfillment Process Difficulty: Hard Keywords: expected value AACSB: Analytic skills 12-34 Copyright © 2013 Pearson Education. then the per unit cost is $2 per unit. If the system warehouse capacity is sufficient to handle the year's demand. ranging from four warehouses to seven warehouses (only integer values). Demand can range from 1000 units per year up to 2000 units in increments of 250 units.1 1000 0. publishing as Prentice Hall . the lowest cost occurs at a sevenwarehouse system.3 1500 0.3 1750 0.1 2000 Which warehouse configuration is best for Jackson Sheds? Answer: The cost table for four through seven warehouses is shown. Likelihood Demand 0. but if the warehouse capacity is insufficient. Each warehouse has a capacity of 200 units and costs $400 to maintain over the course of a year. publishing as Prentice Hall . but if the warehouse capacity is insufficient. The likelihood for each possible demand is shown in the table.1 2000 Which warehouse configuration is best for Jackson Sheds? Answer: The cost table for four through seven warehouses is shown. Likelihood Demand 0. Reference: The Order Fulfillment Process Difficulty: Hard Keywords: expected value AACSB: Analytic skills 12-35 Copyright © 2013 Pearson Education.1 1000 0. ranging from four warehouses to seven warehouses (only integer values). If the system warehouse capacity is sufficient to handle the year's demand. then the per unit cost is $2 per unit. Inc.2 1250 0.3 1750 0.130) Jackson Sheds has four different warehouse configurations under study. Each warehouse has a capacity of 200 units and costs $200 to maintain over the course of a year.3 1500 0. the per unit cost for each unit in excess of system capacity is $3 per unit. the lowest cost occurs at both the four and five warehouse systems. Demand can range from 1000 units per year up to 2000 units in increments of 250 units.