Chapter 7 Supply Chain Management

11. Which of the following is NOT a basic area of consideration in supplier management?

a) Supplier relationships

b) Selection of suppliers

c) Cross-docking

d) Certification and auditing

12. __________ inventories exist because materials must be moved from one location to another.

a) Buffer

b) Anticipation

c) Transit

d) Cycle

13. Which of the following costs includes taxes, insurance on buildings, depreciation of buildings, and maintenance and repairs?

a) Capital costs

b) Risk costs

c) Ordering costs

d) Storage costs

14. Moore’s law states that:

a) The value of a network increases with the square of the number of elements connected to it

b) Computing power doubles every 18-24 months

c) If anything can go wrong, it will, and usually at the most inappropriate moment

d) A project will always take longer than expected, even after taking into account Metcalfe’s Law

15. __________ may be thought of as the ability of one organization’s computer to communicate with another’s computer.

a) E-business

b) Electronic data interchange

c) E-commerce

d) Redundancy

16. What term describes the execution of business transactions in a paperless environment, primarily through the Internet?

a) E-business

b) Electronic data interchange

c) Electronic commerce

d) Bar coding

True/False

1. The term supply chain generally refers to all the activities involved in supplying an end user with a product or service.

2. The inventory turnover is calculated using the annual cost of goods sold and the aggregate inventory value on average.

3. A bullwhip effect occurs more often when the sole transmission of information occurs by handoffs from one link of the chain to the next.

4. Water is a good transportation mode for small, high-value, or perishable items.