1. Which of the following typically represent the beginning of a supply chain?
a) Wholesalers
b) Retailers
c) Manufacturers
d) External suppliers
e) Inspectors
Ans: d
Link to: What is a Supply Chain
Difficulty: easy
2. Which term refers to inaccurate or distorted demand information created in the supply chain?
a) Battle axe effect
b) Cobra effect
c) Bullwhip effect
d) Lasso effect
e) Whirlpool effect
Ans: c
Link to: The Bullwhip Effect
Difficulty: easy
Short Answer
3. Insourcing incurs a fixed cost of $1000 and a $5 variable cost. Outsourcing incurs a fixed cost of $2000 and a $2 variable cost. What is the indifference point?
Ans: 333 units (Q* = (FCMake FCBuy) / (VCBuy VCMake) = ($2000 - $1000)/($5 - $2) = 333)
Link to: SCM Across The Organization
Difficulty: moderate
Multiple Choice
4. In the affiliate revenue model, companies receive a referral fee for:
a) providing advertising space on their web site
b) selling customer information to others
c) executing a transaction
d) directing business to an “affiliate”
e) monthly subscription charges
Ans: d
Link to: Major Issues Affecting Supply Chain Management
Difficulty: moderate
5. According to the test, the larger cargo ships created the negative result of?
a) increased per pound shipping charges
b) increased CO2 emissions
c) decreased operating costs
d) longer port times
e) increased in transition times
Ans: d
Link to: Major Issues Affecting Supply Chain Management
Difficulty: moderate
6. Which of the following does the text NOT identify as an internet regulatory issue or concern?
a) taxation
b) bandwidth
c) copyright infringement
d) censorship
e) public safety
Ans: b
Link to: Major Issues Affecting Supply Chain Management
Difficulty: moderate
7. From the text, leveraging core competencies is about
a) sharing knowledge
b) employing the