Part : True-False

Mark the statement as true(T) or false(F).

1. When forecasting is not appropriate, we can choose to seek information directly from customers or delay supply response until demand becomes clear. ( )

2. When buying a new computer, we will often have demands for some accessories such as battery and power adapter, and the demands are more possibly considered as the regular demands. ( )

3. The traditional inventory control method are planned and conducted from the perspective of a single company, while Vendor Managed Inventory (VMI) applies a supply chain-oriented perspective through the information sharing and process coordination between company and its suppliers. ( )

4. The efficient distribution operation can greatly enhance customer service, while several challenges tend to impede the distribution implementation. For example, seasonal demand brings difficulties in effectively utilizing the resources of space, equipment and labor. In response to this challenge, we should fully meet the demand for seasonal products to avoid the shortage cost. ( )

5. Transportation service availability is critical to demand fulfillment in the supply chain. Accordingly, the high level of transportation accessibility and reliability in short transit time is supposed to be ensured in any time. ( )

6. When doing the route planning with a single truck from a coincident origin/destination point, wed better form a route pattern where the paths do not cross, which is called the "tear drop" pattern. ( )

Part : Multiple Choice

There may not be only ONE correct choice for each question.

7. Which of the followings is an/are appropriate strategy/strategies to manage highly uncertain demand? ( )

a. Conduct flexible supply strategies, such as altering capacity and output rates through subcontracting, to deal with the changing demand.

b. Conduct forecasting immediately and quickly arrange production and sales to hedge uncertain production.

c. Apply the principle of postponement to the most uncertain products.

d. Prioritize supply to the more uncertain products.

8. Its often necessary to maintain a certain amount of standard products inventory. Which of the followings belong/belongs to the reasons/reason for keeping inventories? ( )

a. Divert managements attention away from careful planning and control of the supply and distribution channels

b. Act as a hedge against price changes to deal with the risk of price fluctuations

c. Act as a hedge against contingencies to buffer against such events as supply chain disruption under the impact of COVID-19

d. Provide immediacy in product availability to improve customer service

9. Vendor Managed Inventory (VMI) is a concept and process for consumption-based Supply Chain Management, which requires the supplier to maintain inventories within predefined and mutually agreed thresholds based on a min / max-range. Which of the followings is/are the goals or benefits of VMI, especially in comparison with traditional inventory management? ( )

a. The supplier has opportunities to optimize production scheduling (lot sizes) though VMI will cost it some.

b. VMI can enable the tracking and controlling of the whole process through achieving earlier warnings, which can prevent the participants from the impact of systematic risks such as the risk caused by COVID-19.

c. VMI can help to prevent stock-out and over-supply situations, smooth and secure supply with minimal inventory.

d. It can facilitate the reduction of the total inventory cost, transport cost and freight cost.

10. The cross-docking can unload materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between. Through the implementation of retail cross-docking, which of the following benefit can be achieved? ( )

a. Reduce handling costs, operating costs, inventory costs and warehousing costs.

b. More available retail sales space.

c. Highly automatic delivery from point of origin to point of sale.

d. Enhance the customer service through lower transportation interval and shorter delivery time.

11. There are some critical criteria to be considered in transportation mode selection. Based on the criteria, which mode is more possible to be applied if we want to transport substantial crude oil from oil fields in Xinjiang to Beijing? Moreover, which mode is more appropriate to carry the medical supplies such as face mask from other countries in the urgent time of the epidemic? ( )

a. water; air

b. rail; high speed rail

c. pipeline; motor carriage

d. pipeline; air

12. Several practical guidelines for good routing and scheduling have been listed in the slide. Please familiarize yourself with them, and determine which of the followings is appropriate. ( )

a. Load trucks with stop volumes that are in closest proximity to each other.

b. The stops, where the trucks load on different days, should be arranged to produce tight clusters.

c. The most efficient routes are built using the largest vehicles available first, while pickups should be mixed into delivery routes rather than assigned to the end of the routes.

d. Avoid narrowing stop time window restrictions, and reserve modest buffer time.