SOLVED

1) The term ________ is commonly used to refer to a collection of companies and processes involved in moving a product from the suppliers of raw materials to the customer. A) distribution resource planning B) supply chain C) procurement D) demand chain E) value network 2) Which of the following statements about just-in-time strategies is true? A) Retailers using this strategy allow suppliers to maintain ownership of inventory within their B) Companies using this strategy allow the suppliers to manage the manufacturer’s inventory levels based on preestablished service levels. C) Companies using this strategy maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies. D) Companies using this strategy are trying to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production. E) The manufacturer or retailer using this strategy shares real-time sales data with their suppliers, who maintain inventory levels based on preestablished agreements. 3) Altrix Corp., an Indonesian firm, recently faced an unanticipated decline in the demand for its product. This dented the company’s financial strength not only through loss of sales, but also because it ended up with a substantial inventory of raw materials that the company wasn’t able to use. As a result, Altrix has been rethinking its approach to inventory management. Some of its board members are suggesting that they use the just-in-time (JIT) system to avoid such situations in the future. Which of the following, if true, could undermine the argument in favor of JIT? A) Some of the raw materials Altrix requires are perishable in nature. B) Altrix Corp. has already integrated backward by purchasing supplies located in different parts of Indonesia. C) Altrix Corp. recently entered into a 3-year contract with a leading warehousing firm to use their storage space on a “need be” basis. D) Altrix Corp. is bidding for a huge government contract that could give its sales some stability. E) Labor problems are a critical issue in this country. 4) ________ is a business model in which the suppliers to a manufacturer manage the manufacturer’s A) Just-in-case manufacturing B) Scan-based trading C) Vendor-managed inventory D) Lean manufacturing E) Just-in-time 5) Which of the following statements about vendor-management inventory (VMI) is true? A) To make VMI possible, the manufacturer must maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies. B) Manufacturers using VMI business model, manage the inventories themselves and send out requests for additional items to the vendors as needed. C) Companies using this strategy are trying to optimize their ordering quantities such that parts or raw material arrive just when they are needed for production. D) To make VMI possible, the manufacturer allows the supplier to monitor stock levels and ongoing sales data. E) Retailers using this strategy allow suppliers to maintain ownership of inventory within their 6) One major problem affecting supply chains are ripple effects referred to as the ________. A) backflush effect B) multiplier effect C) bullwhip effect D) incremental effect E) stockwhip effect 7) Computer maker, Dell, realized the problems with keeping large inventories, especially because of the fast rate of obsolescence of electronics components. Dell now keeps only about two hours of inventory in its factories. The company is most likely using a ________. A) scan-based trading system B) customer-managed inventory system C) just-in-time inventory management system D) vendor-managed inventory system E) just-in-case inventory management system 8) MaxSteel Inc., has been supplying steel to a well known car manufacturer, Agis Corp., for the past 3 years. Concerned employees at Max can directly access Agis Corp.’s inventory and sales information via electronic data interchange.This allows MaxSteel to monitor Agis Corp.’s inventory levels on a real-time basis. The system has worked well for both companies so far and there has never been any delay in the supply of steel. Which of the following, if true, would most strengthen Agis’ supply chain strategy? A) Agis Corp.’s management decides to take strong measures for increasing their safety stock of all raw materials. B) Agis Corp., is taking measures to add wholesalers and retailers into their supply chain. C) Agis Corp., has a strong desire to purchase MaxSteel in order to reduce dependency. D) Agis Corp., is taking measures to directly contact the consumers by removing wholesalers and retailers from their supply chain. E) Agis Corp., understands that the information shared with MaxSteel will not be shared outside their organization. 9) Fen-phen was an anti-obesity medication that consisted of two drugs: fenfluramine and phentermine. Fenfluramine was initially marketed by American Home Products, but was shown to cause potentially fatal pulmonary hypertension and heart valve problems. This eventually led to the withdrawal of the drug and legal damages of over $13 billion. This is an example of ________. A) a product recall B) lean manufacturing C) production control D) the bullwhip effect E) a green business 10) La Belle Inc. introduced a new line of accessories for teenaged girls last season. Following its immense popularity with the targeted group, the company anticipated high sales this season. It ordered raw materials accordingly, and even ensured that they had sufficient inventory to meet excess demand, if any. However, the success of the new line turned out to be a fad, as the teens soon turned to other products offered by competing brands, and La Belle’s sales declined. This caused a huge discrepancy in the amount of raw materials they needed and the amount of inventory they had piled up in anticipation of good sales. This is an example of ________. A) the multiplier effect B) hindsight bias C) product recall D) the bullwhip effect E) safety stock planning 1