Reference no: EM132225554
1. In a fixed order quantity model, the reorder point formula is ROP = dL + ZkσL. In this formula, the "ZkσL" term represents ________.
demand during lead time
the service level
the economic order quantity
safety stock
the target inventory level
2. During negotiations with its key supplier, managers at Fleury Fire Equipment identified an opportunity to reduce supply chain costs by minimizing inventory. The cost reductions were shared by both parties in the negotiation. This is an example of a distributive opportunity.
True False
3. If a supply chain manager faces a dispute with a supplier and she wants to resolve it quickly and inexpensively, the preferred dispute resolution procedure would be ________.
negotiation
arbitration
mediation
litigation
segmentation
4. A sourcing manager for a hospital system is planning to purchase supplies through an e-auction. Which of the following is a benefit that she should expect to receive? Stronger relationships with current suppliers
A reduction in the time required to request and receive bids
None of the above are benefits of e-auctions
A series of completely trustworthy bids
A smaller set of suppliers to choose from
5. The purchasing manager at Malkin Auto Parts would like to build a trust-based relationship with a new raw materials supplier. He should not use a contract for the initial transactions because the contract would prevent trust from developing.
True
False