University of Waterloo

AFM 231

Chapter 11: Supply Chain Management

1)The do-it-yourselfer plucked a gallon can of base paint from the shelf of the local hardware store and handed it to Keith, the cheerful clerk at the paint counter. Their eyes met briefly and the do-it-yourselfer silently handed over sample 150C-1, Musical Mist, to the clerk. It was impractical to keep several gallons of every possible color on the shelves at the hardware store so the paint manufacturer had created clever workaround. The workaround was a computer based system that added predetermined quantities of pigments to a gallon can of base paint depending on the desired shade, in this case, Musical Mist. The hardware store now needed to stock only the base paint, this machine, and a small supply of paint pigments in order to create the thousands of colors in their catalog.

2. A supply chain ends with

3. WOTF statements is NOT one of the differentiation strategy decisions?

4. What is transferring a firms activities that have traditionally been internal to external suppliers?

5. The advantage of having few suppliers is to
6. What is developing the ability to produce goods or services previosuly purchased or actually buying a supplier or distributor?

7. WOTF could reduce distribution risk?

8. WOTF statements is true regarding cross-sourcing?

9. What is a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to ship?

10. A lawnmower assembly plant uses a variety of nuts, bolts, screws and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of:

11. Which negotiation strategy bases price on a published, auction, or index price?

12. Supply chain managers outsource logistics to meet three goals

13. Three criteria for designing distribution networks to meet customer expectations are:
14. What is a supply chain designed to optimize both forward and reverse flows?
15. Three common measures of supply chain performance are:

16. WOTF statements is NOT generally an implication stemming from an increase in the number of facilities?

17. With regard to the cost-based price model negotiation strategy, WOTF is true?

18. A response strategy requires suppliers be selected based primarily on

19. WOTF statements is NOT one of the response strategy decisions?

20. Prior to embarking on supply chain design, operations managers must first consider

21. WOTF strategies is part collaboration, part purchasing from few suppliers, and part vertical integration?

22. The cost to produce goods or services sold for a given period is referred to as

23. The advantage of having many potential suppliers is their willingness to

24. WOTF mitigation tactics could reduce economic risk?
25. Airfreight

26. WOTF statements is NOT true?

27. WOTF statements is NOT true regarding channel assembly?