CHAPTER 11 - CHAPTER 11: SUPPLY CHAIN MANAGEMENT TRUE/FALSE...

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CHAPTER 11: SUPPLY CHAIN MANAGEMENT TRUE/FALSE 1. Operations managers are finding online auctions a fertile area for disposing of discontinued inventory. True (E-procurement, moderate) {AACSB: Use of IT} 2. The key to effective supply chain management is to get many suppliers to compete with each other, in order to drive down prices. False (The supply chain’s strategic importance, easy) 3. Even though a firm may have a low cost strategy, supply chain strategy can select suppliers primarily on response or differentiation. False (The supply chain’s strategic importance, moderate) 4. The supply chain for a brewery would include raw ingredients such as hops and barley but not the manufactured goods such as bottles and cans. False (The supply chain’s strategic importance, moderate) 5. Supply chain management faces additional challenges, such as those related to quality production and distribution systems, when companies enter growing global markets. True (Supply chain economics, moderate) {AACSB: Multiculture and Diversity} 6. McDonald's was able to utilize existing plants and transportation systems in preparing the supply chain for opening its stores in Moscow. False (The supply chain’s strategic importance, moderate) 7. When using the low-cost strategy for supply chain management, the firm should invest aggressively to reduce production lead time. False (The supply chain’s strategic importance, moderate) 8. Savings in the supply chain exert more leverage as the firm has a lower net profit margin. True (Supply chain economics, moderate) 9. A reduction in inventory costs is one reason for making rather than buying. False (Supply chain economics, moderate) 10. Outsourcing refers to transferring a firm’s activities that have traditionally been internal to external suppliers. True (Supply chain economics, moderate) 11. Outsourcing is a form of specialization that allows the outsourcing firm to focus on its critical success factors. True (Supply chain economics, moderate) 282
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12. Supply chain decisions are not generally strategic in nature, because purchasing is an ordinary expense to most firms. False (Supply chain economics, easy) 13. The objective of the make-or-buy decision is to help identify the products and services that can be obtained externally. True (Supply chain economics, moderate) 14. Because service firms do not acquire goods and services externally, their supply chain management issues are insignificant. False (Supply chain economics, easy) 15. Because the supply chain has become so electronic and automated, opportunities for unethical behavior have been greatly reduced. False (Ethics in the supply chain, easy) {AACSB: Ethical Reasoning} 16. With the many-suppliers strategy, the order usually goes to the supplier that offers the best quality. False (Supply chain strategies, moderate)
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This note was uploaded on 10/16/2011 for the course MARKETING 1234s taught by Professor Mohammed during the Spring '11 term at Abu Dhabi University.

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CHAPTER 11 - CHAPTER 11: SUPPLY CHAIN MANAGEMENT TRUE/FALSE...

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