Question 1

Dogz reports total revenue of $47,561,cost of goods sold of $32,856 and net receivables of $19,595.Their property,plant and equipment is $19,813 and they have $16,240 of inventory.What is their accounts receivable turnover?

Accepted Answer

The accounts receivable turnover is calculated as total revenue divided by average accounts receivable. Given total revenue of $47,561 and net receivables of $19,595, the turnover is $47,561 / $19,595 = 2.42.

Question 2

Which component of the supply chain decision-making framework would be established first?

Accepted Answer

Competitive strategy is typically established first. It sets the foundation for the supply chain strategy and structure by outlining the company's overall goals and objectives in the marketplace.

Question 3

The average amount of inventory used to satisfy demand between receipt of supplier shipments is referred to as

Accepted Answer

Cycle inventory represents the average amount of inventory a company holds to meet the demand between two successive orders from suppliers. It is also known as the lot-size inventory. Safety inventory is the additional inventory held to manage unexpected demand fluctuations or supply disruptions, and seasonal inventory is the inventory purchased in advance to prepare for anticipated seasonal demand. Sourcing refers to the act of selecting suppliers and managing supplier relationships. Therefore, cycle inventory is the correct option.

Question 4

The following warehousing methodology is one in which goods are not actually warehoused in a facility.Instead,trucks from suppliers,each carrying a different type of product,deliver goods to a facility.There the inventory is broken into smaller lots and quickly loaded onto store-bound trucks that carry a variety of products,some from each of the supplier trucks.

Accepted Answer

The described methodology is known as cross-docking, where goods are immediately unloaded from incoming trucks and sorted for outbound delivery without being stored in a warehouse. This approach reduces inventory holding costs and improves efficiency in the supply chain.

Question 5

The places in the supply chain network where product is stored,assembled,or fabricated are known as

Accepted Answer

Facilities refer to physical locations where products are stored, assembled, or fabricated. Inventory refers to the stock of goods that are stored in these facilities. Transportation refers to the movement of goods between facilities. Information refers to the data and communication systems used to manage the supply chain. Therefore, the best choice is A - facilities.

Question 6

The inventory held in case demand exceeds expectation in order to counter uncertainty is called

Accepted Answer

Safety inventory is held as a buffer in case demand exceeds the forecasted amount. It acts as a safety net to cover unexpected demand variability or supply disruptions. Cycle inventory is held to cover the demand during the replenishment lead time, seasonal inventory is held when demand is expected to be high during a particular season, and sourcing refers to the process of procuring goods and services from suppliers.

Question 7

Which component of the supply chain decision-making framework would be used to reach the performance level dictated by the supply chain strategy?

Accepted Answer

The component that would be used to reach the performance level dictated by the supply chain strategy is the supply chain structure. This includes decisions about network design, inventory management, transportation, and information systems. By optimizing the supply chain structure, the organization can ensure that it is aligned with the supply chain strategy and is operating efficiently and effectively.

Question 8

Which of the following would be a characteristic of a facility with little excess capacity?

Accepted Answer

A facility with little excess capacity will likely have higher efficiency per unit of product it produces as it is operating at or near full capacity without waste or unused resources.

Question 9

Which of the following would result in an improvement in the C2C cycle for Katz if all other entries in their selected financial data were held constant?

Accepted Answer

An increase in weeks payable would result in an improvement in the Cash-to-Cash (C2C) cycle for Katz because it means the company is taking longer to pay its suppliers, thereby retaining cash longer and improving its cash flow.

Question 10

Which of the following would result in lower return on assets for Katz if all other entries in their selected financial data were held constant?

Accepted Answer

Return on assets (ROA) is calculated by dividing net income by total assets. If earnings before interest and taxes (EBIT) decreased, net income would also decrease, resulting in a lower ROA. The other options would either improve ROA (B and D) or have no impact because ROA would be adjusted for the change in total assets (C).

Question 11

The two major types of facilities are

Accepted Answer

Production sites refer to the locations where goods are manufactured or assembly takes place. Storage sites are those locations where the goods are kept temporarily before they are transported to the next point. Distribution sites are those locations from where the goods are transported to the wholesalers, retailers, or the end customers. Hence, the two major types of facilities are production sites and storage sites.

Question 12

Which of the following is a characteristic of a facility with excess capacity?

Accepted Answer

A facility with excess capacity will likely have a lower cost per unit of product produced because fixed costs are spread over more units. This can make it more efficient than a facility with a lot of unused capacity. B, C, and D are not characteristics of a facility with excess capacity.

Question 13

Dogz reports total revenue of $47,561,cost of goods sold of $32,856 and net receivables of $19,595.Their property,plant and equipment is $19,813 and they have $16,240 of inventory.Which ratio is highest - ART,INVT or PPET?

Accepted Answer

ART (Accounts Receivable Turnover) = Total Revenue / Net Receivables = $47,561 / $19,595 = 2.43. INVT (Inventory Turnover) = Cost of Goods Sold / Inventory = $32,856 / $16,240 = 2.02. PPET (Property, Plant, and Equipment Turnover) = Total Revenue / Property, Plant, and Equipment = $47,561 / $19,813 = 2.40. Therefore, ART is the highest.

Question 14

The inventory that is built up to counter predictable variability in demand is called

Accepted Answer

Seasonal inventory is specifically accumulated to meet predictable variations in demand that occur at certain times of the year, such as holidays or seasonal changes.

Question 15

Dogz reports total revenue of $47,561,cost of goods sold of $32,856 and net receivables of $19,595.Their property,plant and equipment is $19,813 and they have $16,240 of inventory.If they operate 300 days a year,how long does the average item stay in inventory?

Accepted Answer

The average inventory period is calculated using the formula: (Inventory / Cost of Goods Sold) * 365. Plugging in the numbers: ($16,240 / $32,856) * 365 = 180.5 days. However, since the company operates 300 days a year, we adjust the formula to: ($16,240 / $32,856) * 300 = 148 days.

Question 16

Geoff strolled into his local big box retailer in search of sunflower seeds for the flock of cardinals that graced his property during the cold winter.Much to his (and the cardinals')dismay,the shelf where the 50 pound bags of sunflower seeds were kept was bare.He pirouetted and left the store in disgust,empty-handed and fearing the wrath of an angry flock of cardinals when he returned home.This sad scenario illustrates

Accepted Answer

The scenario is describing a lost sale since the customer left the store empty-handed due to the product being out of stock. There was no sale to be made, and the customer may have to look elsewhere or choose an alternative product. A safety inventory is kept to ensure that there is always stock available to match customer demand, while cycle inventory represents the amount of stock needed to meet average demand during a specific time period. A markdown would occur if the store reduced the price of sunflower seeds after they were not selling, but there is no indication of this in the scenario.

Question 17

Why would anyone in their right mind buy a brand new car in the spring when they know that new car models will appear in late summer and early fall and the dealers will use

Accepted Answer

It is logical to wait until late summer or early fall to buy a new car when the current year models are marked down to make room for the new models. This is a common practice among car dealerships, and it allows consumers to take advantage of lower prices on the previous year's models.

Question 18

The data and analysis concerning facilities,inventory,transportation,and customers throughout the supply chain is known as

Accepted Answer

The data and analysis concerning facilities, inventory, transportation, and customers throughout the supply chain are all information related. Therefore, the best choice is D, information.

Question 19

All raw materials,work in process,and finished goods within a supply chain are known as

Accepted Answer

Raw materials, work in process, and finished goods are all types of inventory within a supply chain. Facilities refer to the physical locations where goods are produced or stored, transportation refers to the movement of goods between locations, and information refers to the data exchanged between supply chain partners.

Question 20

Moving inventory from point to point in the supply is known as

Accepted Answer

Transportation refers to the movement of inventory from one point to another in the supply chain, whether it is from the manufacturer to the distributor or from the distributor to the retailer. Facilities refer to the physical locations where inventory is stored, while inventory is the actual goods and products in stock. Information is important in managing the supply chain, but it does not directly involve the physical movement of inventory.

Quiz 3: Supply Chain Drivers and Metrics