103. The correct answer is D. JIT reduces lot sizes to bring down inventory accumulation and the costs of holding and handling inventory. However, smaller lot sizes require more frequent orders, and that means more setups. As a consequence, JIT participants need to find ways to reduce setup time. In a JIT system, reduction in lot sizes may result in which of the following tradeoffs?A. Increased inventory accumulation B. Increased holding costs C. Increased handling costs D. Increased cumulative setup time104. The correct answer is D. According to Jonathan Byrnes, one supply chain is not enough; two, three, or more would be preferable. One size fits all supply chains may have been sufficient in the past, but new information technology makes it possible to have multiple, dynamic chains that can accommodate different product and information flows. Byrnes breaks products into three categories: staples, seasonal products, and fashion. Separating the flows into these categories can better allocate shipping, response time, and other resources to the appropriate areas. A sporting goods store sells some items at a low margin and steady demand, such as tennis balls, some items at a high margin and unpredictable demand, such as jogging outfits, and some items only during certain seasons, such as snowboarding equipment. Which of the following would provide the simplest and most effective supply chain solution for this company?A. One supply chain for steady low-margin goods and one for exceptions B. One supply chain for all goods C. One supply chain for seasonal goods and one for the remaining goods D. One supply chain for steady low-margin goods, one for unpredictable high-margin goods, and one for seasonal goods 105. The correct answer is D. The availability of the good is being emphasized because the manager needs a reliable supply of goods even if it costs more to get the good when it is needed for the JIT process. A manager decides to source their key Just-in-Time (JIT) manufacturing goods from a local producer even though an overseas producer sells identical goods for less, even with the added cost of shipping. Which of the following is this manager most likely emphasizing?A. Affordability B. Positive supply chain contribution C. Quality D. Availability 106. The correct answer is C. Strategic objectives for all high-level processes are set in the planning stage. Strategic objectives and KPIs for supplier relationship management would be developed during which stage of the SCOR model?A. Sourcing B. Making C. Planning D. Delivering 107. The correct answer is C. In general, income streams are separately taxed, so a company can lower its global tax liability by moving facilities to low-tax regions. If a firm locates a centralized procurement and processing facility in a low-tax foreign country, which of the following tax rates will apply to income generated at the facility?A. A compromise rate between the local and home country rates B. A special international rate C. The local country rate D. The rate in the country of the headquarters 108. The correct answer is D. The theory of constraints focuses attention on slowest-moving part of a manufacturing process because it determines the maximum output of the process. Speeding up production before the constraint only produces an oversupply of inventory in front of the constraint, while speeding up the process after the constraint will result only in a lack of inventory after the constraint. Avoiding either of these problems requires running the process at the speed of the constraint. Which one of the following approaches to production scheduling accurately incorporates the theory of constraints?A. Speed up production after the bottleneck. B. Decrease inventory at the front of the bottleneck. C. Speed up production in front of the bottleneck. D. Slow the process down to the bottlenecks speed.109. The correct answer is C. Depending upon the market being served, a supply chain may be managed with an eye to delivering one or more of the following values to its end customers: quality, affordability, availability, or service. A focus on quality, affordability, or availability indicates a focus on which of the following?A. Social value B. Financial value C. Customer value D. Collaborative value110. The correct answer is A. Possibly the most common mistake in this regard is to send all cost savings all the way to the consumers end of the chain, which in this case is the shareholders. And perhaps most challenging of all in a lateral supply chain is the need for productive sharing of any financial gains. As noted earlier, a powerful nucleus firm can gather in the benefits of an alteration in the placement of inventory (or any other process change) at the expense of other stakeholders such as the independent brokers. A nucleus firm in the ban