Exam (elaborations)
Testbank Chapter 15 GSCM
- Course
- Institution
- Book
Testbank Chapter 15 GSCM
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Global Supply Chain Management; Chapter summary
-
Summary Global Supply Chain Management VU IBA
-
TRL3709 Prescribed Book - Supply Chain Management: Strategy, Planning, and Operation, Chopra, S. 7th Edition
Seller
Follow
AquilaEducation
Reviews received
Content preview
Supply Chain Management, 6e, Global Edition (Chopra/Meindl)Chapter 15 Sourcing Decisions in a Supply Chain
15.1 True/False Questions
1) Sourcing processes include the selection of suppliers, design of supplier contracts, product
design collaboration, procurement of material, and evaluation of supplier performance.
Answer: TRUE
Diff: 2
Topic: 15.1 The Role of Sourcing in a Supply Chain
AACSB: Application of knowledge
Objective: LO 15.1: Understand the role of sourcing in a supply chain.
2) A good supplier scoring and assessment process will primarily track performance along the
price dimension when evaluating a supplier.
Answer: FALSE
Diff: 2
Topic: 15.1 The Role of Sourcing in a Supply Chain
AACSB: Application of knowledge
Objective: LO 15.1: Understand the role of sourcing in a supply chain.
3) Design collaboration ensures that any design changes are communicated effectively to all
parties involved with designing and manufacturing the product.
Answer: TRUE
Diff: 2
Topic: 15.1 The Role of Sourcing in a Supply Chain
AACSB: Application of knowledge
Objective: LO 15.1: Understand the role of sourcing in a supply chain.
4) The goal of procurement is to enable orders to be placed and delivered on schedule at the
lowest possible price.
Answer: TRUE
Diff: 2
Topic: 15.1 The Role of Sourcing in a Supply Chain
AACSB: Application of knowledge
Objective: LO 15.1: Understand the role of sourcing in a supply chain.
5) Effective sourcing processes within a firm can improve profits for the firm and total supply
chain surplus in a variety of ways.
Answer: TRUE
Diff: 2
Topic: 15.1 The Role of Sourcing in a Supply Chain
AACSB: Application of knowledge
Objective: LO 15.1: Understand the role of sourcing in a supply chain.
1
Copyright © 2016 Pearson Education, Ltd.
,6) As the replenishment lead time from a supplier grows, the amount of safety inventory that
needs to be held by the buyer also grows in direct proportion to the replenishment lead time.
Answer: FALSE
Diff: 3
Topic: 15.4 Total Cost of Ownership
AACSB: Application of knowledge
Objective: LO 15.3: Identify dimensions of supplier performance that affect total cost.
7) A reliable supplier has low variability of lead time, whereas an unreliable supplier has high
variability.
Answer: TRUE
Diff: 2
Topic: 15.4 Total Cost of Ownership
AACSB: Application of knowledge
Objective: LO 15.3: Identify dimensions of supplier performance that affect total cost.
8) As the replenishment lot size grows, the cycle inventory at the firm grows, thus increasing the
cost of holding inventory.
Answer: TRUE
Diff: 2
Topic: 15.4 Total Cost of Ownership
AACSB: Application of knowledge
Objective: LO 15.3: Identify dimensions of supplier performance that affect total cost.
9) Quantity discounts lower the unit cost and tend to increase the required batch size.
Answer: FALSE
Diff: 1
Topic: 15.4 Total Cost of Ownership
AACSB: Application of knowledge
Objective: LO 15.3: Identify dimensions of supplier performance that affect total cost.
10) The value of better information coordination will be linked to the amount of variability
introduced into the supply chain as a result of the bullwhip effect.
Answer: TRUE
Diff: 3
Topic: 15.4 Total Cost of Ownership
AACSB: Application of knowledge
Objective: LO 15.3: Identify dimensions of supplier performance that affect total cost.
11) Supplier viability can be especially important if the supplier is providing mission-critical
products and it would be easy to find a replacement for them.
Answer: FALSE
Diff: 2
Topic: 15.4 Total Cost of Ownership
AACSB: Application of knowledge
Objective: LO 15.3: Identify dimensions of supplier performance that affect total cost.
2
Copyright © 2016 Pearson Education, Ltd.
, 12) Having multiple sources ensures a degree of competition and also the possibility of a backup,
should a source fail to deliver.
Answer: TRUE
Diff: 2
Topic: 15.5 Supplier Selection-Auctions and Negotiations
AACSB: Application of knowledge
Objective: LO 15.1: Understand the role of sourcing in a supply chain.
13) Unless adding a supplier with a unique and valuable capability clearly adds to total cost, the
firm's supply base may be too small.
Answer: TRUE
Diff: 2
Topic: 15.5 Supplier Selection-Auctions and Negotiations
AACSB: Application of knowledge
Objective: LO 15.3: Identify dimensions of supplier performance that affect total cost.
14) To improve overall profits, the supplier must design a contract that requires the buyer to
share in some of the supplier's demand uncertainty.
Answer: FALSE
Diff: 2
Topic: 15.6 Sharing Risk and Reward in the Supply Chain
AACSB: Application of knowledge
Objective: LO 15.4: Describe the benefits of sharing risk and reward.
15) Buyback contracts counter double marginalization by lowering the cost of overstocking for
the retailer.
Answer: TRUE
Diff: 1
Topic: 15.6 Sharing Risk and Reward in the Supply Chain
AACSB: Application of knowledge
Objective: LO 15.4: Describe the benefits of sharing risk and reward.
16) Revenue-sharing contracts counter double marginalization by decreasing the cost per unit
charged to the retailer, thus effectively decreasing the cost of understocking.
Answer: FALSE
Diff: 2
Topic: 15.6 Sharing Risk and Reward in the Supply Chain
AACSB: Application of knowledge
Objective: LO 15.4: Describe the benefits of sharing risk and reward.
17) Quantity flexibility contracts counter double marginalization by giving the retailer the ability
to modify the order based on improved forecasts closer to the point of sale.
Answer: TRUE
Diff: 1
Topic: 15.6 Sharing Risk and Reward in the Supply Chain
AACSB: Application of knowledge
Objective: LO 15.4: Describe the benefits of sharing risk and reward.
3
Copyright © 2016 Pearson Education, Ltd.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AquilaEducation. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.04. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83662 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now