Subcomponent to get significant price reduction

Assignment Help Operation Management

Reference no: EM132195040

1. True or false? The following graphic illustrates the extended enterprise.

True

False

2. What is the biggest risk of signing a long-term supply contract to buy regular amounts of a subcomponent to get a significant price reduction?

a. The inventory of obsolete items could increase.

b. The supplier could reduce quality but not price.

c. The supplier could go out of business.

d. The chance of efficiency improvements could decrease.

3. Which would be the fastest way for a fashion clothing company to get to market while also minimizing demand mismatch risks?

a. Go to runway shows and make final design decisions.

b. Go to runway shows and make very similar designs.

c. Look at street trends and buy appropriate fabrics before the runway season.

d. Look at street trends and manufacture popular items before the runway season.

4. If an innovative technology for a new type of car has no sales data to use to anticipate regional sales, which is the best method of satisfying demand?

a. Use sales of the most similar product to allocate inventory to retail locations.

b. Ship most units to distribution centers instead of retail locations.

c. Keep units at production facilities until firm orders for them come in.

d. Delay production of units until firm orders come in.

5. Which is a key reason to take a hard look at organizational and supply chain strategy, even if it is currently very profitable?

a. Disruptive technology

b. Incremental improvement

c. Demand that continues to be on a steady upward trend

d. Supply chain that emphasizes resilience at a cost

6. Which is the best supply chain for an organization that has some small expensive items and some bulky inexpensive items?

a. Third-party public shipping service with air and ground options they select

b. Third-party ground-based delivery fleet

c. Owned ground-based delivery fleet

d. Multiple supply chain

Reference no: EM132195040

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