Exam 3: Network and System Design

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From TOC, "exploiting the constraint" means to:

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One element of supply chain network structure includes:

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Vertical integration is the preferred strategy for most companies.

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A fundamental principle of the Theory of Constraints (TOC) is that every process has at least one constraint that always must be eliminated entirely from the process.

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The maximum amount of output that can be delivered by a process is its complexity.

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Variation is a challenge because it adds ________ and _______ to a process:

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Modules that are offered as part of an ERP system include:

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A high-volume, low variability demand business requires which type of supply chain structure:

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Information technology (IT) design enables businesses to manage processes.

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The transactional view of SCM processes are based on qualitative metrics.

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A key element that supports supply chain strategy is:

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Variability exists in every process but it is not a problem for supply chains.

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Process outputs can be easily improved only by substituting new inputs.

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The transactional view of SCM processes focuses on making those processes more efficient.

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The type of product is not overly important in designing a SCM network structure.

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Logistical and resource constraints limit process outputs.

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It is possible for companies to have multiple, different supply chains.

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Firm ownership of upstream suppliers is known as:

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An effective supply chain should be viewed as a series of separate organizations and functions.

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Describe how the variation in processes creates challenges for supply chains and provide an example.

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