Chapter 1 Introduction to Supply Chain Management

MGMT 472 Homework assignment 2
1. According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT: a. Personal relationships b. Individualized objectives c. Mutual benefits and needs d. Performance metrics 2. The combination of the purchase price of a good and additional costs incurred before or after product delivery can be referred to as: a. Total cost of acquisition b. Total cost of ownership c. Purchase requisition cost d. Total procurement cost 3. Benefits of implementing an effective supplier certification program include all or the following EXCEPT: a. Building long-term relationships b. Reducing time spent on incoming inspections c. Increasing supplier base d. Recognizing excellence 4. A company using a weighted-criteria evaluation system has established these 5 categories and the appropriate weight in parentheses: Quality (0.30) Responsiveness (0.20) Delivery (0.20) Cost (0.20) Technology (0.10) Company X received the following ratings in each of the five categories: Quality(90), Responsiveness(80), Delivery(80), Cost(90), Technology(90). What is their total score? a. 87.0 b. 85.5 c. 86.0 d. 84.0 5. SRM software should be capable of: a. Automating transactional processes b. Making information flow between partners more visible c. Integration of the supply chain making it possible to monitor multiple departments and processes both internally and externally d. All of these

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Data Set E1 Period 1 2 3 4 5 6 7 8 9 10 Sales Volume 10000 12400 14250 15750 20500 18500 15750 20500 21500 22550

6. Using Data Set E1, what would be the forecast for period 7 using a four period moving average: (Choose the closest answer.) a. 17625 b. 15225 c. 15300 d. 17250 7. Using Data Set E1, what would be the forecast for period 6 using a five period weighted moving average? The weights for each period are 0.05, 0.10, 0.20, 0.30, and 0.35 from the oldest period to the most recent period, respectively. (Choose the closest answer.) a. 16500 b. 17825 c. 14575 d. 16275 8. Using Data Set E1, what would be the forecast for period 6 using the exponential smoothing method? Assume the forecast for period 5 is 14000. Use a smoothing constant of  = 0.4 (Choose the closest answer.) a. 14575 b. 26100 c. 16600 d. 19700 _________________________________________________________________________________ 9. The equation for a simple linear regression that saw sales averaging $225,000 over the last ten periods, and advertising budgets averaging $3,000 over the last 10 periods is: Y = 3250 + 120x This indicates that a $1 increase in advertising will increase sales by: a. $3370 b. $250 c. $120 d. $1875

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Data Set E2 Month 1 2 3 4 5 Actual 10 8 9 6 7 Forecast 11 10 8 6 8

10. A forecasting method has produced the following data over the past 5 months shown in Data Set E2. What is the mean absolute deviation (accurate to 2 decimals)? a. 0.60 b. 1.20 c. 1.00 d. 1.25

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