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.