Question 1
The supply chain suffers from distortions in the flow of inventory as a result of local optimization, incentives, and large lots.
True
False
Question 2
Which of the following is a reason for making a component rather than buying it?
Ensure alternate sources
Inadequate capacity
Obtain technical or managerial ability
Obtain desired quality
Question 3
Outsourcing is a make or buy decision that involves the transfer of tangible product.
True
False
Question 4
The vendor selection stage that requires the development of evaluation criteria and the importance of each is
vendor evaluation.
logistics.
negotiations.
vendor development.
Question 5
Most organizations are better off concentrating on their specialty and outsourcing functions that their supply chain partners do well.
True
False
Question 6
For many firms, purchasing spends the most money.
True
False
Question 7
In general, members of a supply chain are not susceptible to ethical lapses.
True
False
Question 8
An unfilled order with a vendor that is a contract to purchase items but not an authorization to ship anything is known as
an advance shipping notice.
drop shipping.
channel assembly.
a blanket order.
Question 9
The 'bullwhip effect' occurs as orders are relayed from retailers, to wholesalers, to manufacturers.
True
False
Question 10
One reason for buying rather than making is to utilize surplus labor.
True
False.