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GSCM206 Managing Operations Across the Supply Chain

Week 5 Quiz

Question 1

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(TCO 3) Which of the following is not a concern of the supply chain?

Number of internal managers

Credit and cash transfers

Vendor reliability

Distributors and banks

Having fewer suppliers

Question 2

(TCO 2) The purchasing approach that places the burden of meeting the buyer’s demands on the supplier is

many suppliers.

few suppliers.


vertical integration.

virtual companies.

Question 3

(TCO 3) Japanese manufacturers often take a middle ground between purchasing from a few suppliers and vertical integration. This approach is






Question 4

(TCO 2) The three classic types of negotiation strategies are

vendor evaluation, vendor development, and vendor selection.

competitive bidding, market-based price model, and cost-based price model.

many suppliers, few suppliers, and keiretsu.

cost-based price model, market-based price model, and inventory-based.

Question 5

(TCO 2) All of the following are opportunities in an integrated supply chain, except

modification or customization of products.

drop shipment.


lot size reduction.

accurate pull data.

Question 6

(TCO 3) Which of the following is NOT true regarding core competencies?

They may include specialized knowledge.

They may represent a small portion of an organization’s business activities.

They may include proprietary technology or information.

They may be good candidates for outsourcing.

They may include unique production methods.

Question 7

(TCO 3) What theory states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can?

Theory of competitive advantage

Theory of core competencies

Theory of comparative advantage

Theory of outsourcing

Theory of offshoring

Question 8

(TCO 3) A manufacturing plant is considering outsourcing its production of tires. There are five risk areas on which the decision will be based. The current plant had scores of 1, 2, 4, 8, and 2; and the outsourced plant had scores of 3, 2, 4, 2, and 5. What is the current plant’s score if high scores indicate low risk, and an unweighted factor method is applied?





None of the above

Question 9

(TCO 2) Which of the following is NOT a concern of the supply chain?

Warehousing and inventory levels

Credit and cash transfers


Distributors and banks

Maintenance scheduling

Question 10

(TCO 2) Which type of negotiating strategy requires the supplier to open its books to the purchasers?

Cost-based price model

Market-based price model

Competitive bidding

Price-based model

None of the above

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