Exam #1 Study Guide (key) (13) 1. Technology upgrades and backup systems and sites can help mitigate security risks. a. True b. False ANSWER: True ...

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Exam #1 Study Guide (key)

(13)

1. Technology upgrades and backup systems and sites can help mitigate
security risks.
a. True
b. False
ANSWER: True

2. A high average inventory value reduces the chances of inventory
obsolescence.
a. True
b. False
ANSWER: False

3. Electronic data interchange and Internet links decrease the velocity of
supply chains.
a. True
b. False
ANSWER: False

4. Cash -to -cash conversion cycle is the average time to convert a dollar
spent to acquire raw materials into a dollar collected for a finished good.
a. True
b. False
ANSWER: True

5. Import tariffs help in preventing the dumping of low -cost products in the
domestic economy.
a. True
b. False
ANSWER: True

6. Air shipments have the lowest transportation cost and can carry
unlimited weight.
a. True
b. False
ANSWER: False

7. _____ specialize in handling all aspects of customers giving back a
manufactured good or delivered service and requesting their money back,
repairing the manufactured good and giving it to the customer, and/or
invoking the service guarantee.
a. Certified suppliers
b. Process designers
c. Demand forecasters
d. Return facilitators
ANSWER: d


8. _____ inventory is inventory that has been ordered but is in transit.
a. Pipeline
b. Decoupling
c. Buffer
d. Anticipation
ANSWER: a


9. The _____ function of a supply chain is responsible for selecting
transportation carriers and managing company -owned fleets of vehicles.
a. integration
b. procurement
c. logistics
d. scheduling
ANSWER: c

10. Managing orders, transportation, and distribution to provide goods and
services is part of the _____ function of the Supply Chain Operations
Reference (SCOR) model.
a. plan
b. source
c. make
d. deliver
ANSWER: d



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11. Capacity requirements are computed by multiplying the number of units
scheduled for production at a work center by the:
a. the unit resource requirements and then adding in the setup time.
b. the setup time and then subtracting the unit resource
requirements.
c. the setup time and then adding in the unit resource requirements.
d. the unit resource requirements and then subtracting the setup
time.
ANSWER: a

12. Aggregate planning:
a. is not driven by demand forecasts.
b. includes detailed staff schedules.
c. helps in defining budget allocations and associated resource
req