Deck 13: Supply Chain Management and Marketing Channels

Question 1

Grand Trunk Inc.,a furniture manufacturing company,does not manufacture any pieces until an order is received.It coordinates and integrates the activities of its suppliers,designers,and carpenters to ensure an efficient production cycle.This enables Grand Trunk Inc.to deliver the products to customers within five working days.This is an example of _____ management.

A) supply chain
B) customer relationship
C) returns
D) asset lifecycle

Answer 1

A

Question 2

Allen Inc.,which produces component parts for elevators,has co-located its engineering,logistics,and procurement divisions.Which of the following describes its demand-supply integration?

A) The promises that salespeople make to customers present challenges to the company's logistics arm.
B) Costs,more than customer specifications,determine which raw materials are placed into production.
C) The company gains efficiencies from ordering and using only those materials that lead directly to sales.
D) Raw material inventories are always stocked well above the levels dictated by production capacity.

Answer 2

A

Question 3

Sales and operations planning is a procedure

A) companies use to combine production and demand by merging diplomatic and strategic planning methods across functional areas of the business.
B) That seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior.
C) That presents a multi-company,unified response system to the customer whenever complaints,concerns,questions,or comments are voiced.
D) None of these.

Answer 3

A

Question 4

Companies that work closely with their suppliers can eliminate problems relating to corporate culture,information hoarding,and trust issues.

Question 5

Which is a characteristic of companies that adopt a supply chain orientation?

A) They have the capability to deliver on the promises they make.
B) They cannot accept short-term risks on behalf of others.
C) They work independentlyof top management of the companies.
D) They do things that harm the entire supply chain in the long run.

Question 6

Which of the following statements is true of customer integration for companies oriented toward demand-supply integration?

A) It is a competency that enables firms to offer value-added offerings to those customers who represent the greatest value to the firm or supply chain.
B) It requires firms to link seamlessly to outsiders that provide goods and services to them so that they can provide high-quality customer experiences.
C) It is a process in which companies will collaborate on projects so that the customer gains the maximum amount of total value possible from the supply chain.
D) It requires information hardware and software systems that can exchange information when needed between customers and suppliers.

Question 7

Companies that focus on supply chain management commonly report ______.

A) higher packaging costs
B) lower warehousing costs
C) lower logistical flexibility
D) lower revenues

Question 8

Which statement is true of supply chain management?

A) It reflects a completely employee-driven management philosophy.
B) It enables supply chain managers to focus on pushing products down the marketing channels to consumers.
C) It enables supply chain managers to respond quickly to sudden changes in supply or demand.
D) It gives assembly-line employees total control of materials,processes,money,and finished products.

Question 9

Among the types of external integration that companies want to achieve to be able to provide top-level service to their customers,measurement integration reflects the idea that performance assessments should ______.

A) assess the performance of individual parts of the supply chain separately,not the whole chain
B) be transparent and measurable across the borders of different firms and units
C) hold the entire chain accountable for meeting the goals of each entity in the chain
D) recommend the inclusion of more business units to expand the supply chain

Question 10

When considering the types of demand-supply integration,_____ includes the ways in which two or more companies will collaborate on activities or projects so that the customer gains the maximum amount of total value possible from the supply chain.

A) material and service supplier integration
B) technology and planning integration
C) measurement integration
D) relationship integration

Question 11

Which of the following statements is true of demand-supply integration?

A) It is composed of bundles of interconnected activities that stretch across firms in the supply chain.
B) It is a system of management practices that is consistent with a "systems thinking" approach.
C) It is focused on integrating the supply-management and demand-generating functions of an organization.
D) It is used to align supply and demand throughout the supply chain by anticipating customer requirements.

Question 12

Which of the following statements is true of agile companies?

A) They increase the complexity of the supply chain.
B) They use the "push" strategy instead of the "pull" strategy to market their products.
C) They spend less time than their competitors on activities that create direct customer benefits.
D) They partner closely with suppliers and service providers to reduce customer wait times for products.

Question 13

In today's marketplace,the number of customers who expect to receive product configurations and services matched to their unique needs is decreasing.

Question 14

Which of the following statements is true of supply chain management in today's marketplace?

A) Supply chain management reflects a completely employee-driven management philosophy.
B) Standardized products are "pushed" down through marketing channels to consumers.
C) Businesses focus on partnering with members of the supply chain to enhance customer value.
D) Companies that focus on supply chain management commonly report high inventory costs.

Question 15

Which of the following best describes the functioning of the various companies/business units that are part of a world-class,well-integrated supply chain?

A) The customer should be able to distinguish between the companies based on their activities.
B) Multiple entities should work together to perform tasks as a single unified system.
C) All companies must follow a standard documentation process.
D) No company makes sacrifices for the sake of the system as a whole.

Question 16

Nessca Solutions Inc.recently created a hardware and software system for transmitting data among different departments within the firm.The system provides an easy and quick way of exchanging information.This has increased the firm's efficiency while reducing costs.With regard to demand-supply integration,this is an example of _____ integration.

A) measurement and feedback
B) material and service supplier
C) customer
D) technology and planning

Question 17

Which of the following statements is true of supply chain-oriented firms?

A) They lack the support of top managers.
B) They are willing to accept long-term risks on behalf of others.
C) They work against their partners when seeking to achieve goals.
D) They are financially better off in the long run than companies that are not.

Question 18

The focus of businesses has shifted toward determining how products and services are being "pushed" into the marketplace by manufacturers as well as on partnering with members of the supply chain to enhance customer value.

Question 19

Five types of internal integration are sought by firms interested in providing top-level service to customers: relationship integration,measurement integration,technology and planning integration,material and service supplier integration,and customer integration.

Question 20

How does the supply chain management of the mass production era differ from the supply chain management practiced today?

Question 21

Magnira Inc.,an equipment manufacturing company,designs precision cutting tools that can be used for various applications.A recent project required Magnira to work closely with a surgical tools manufacturing company to produce a medical stapler that helps reduce traumatic procedures and promotes quicker patient recoveries.This is an example of the:

A) product development and commercialization process.
B) supplier relationship management process.
C) customer service management process.
D) order fulfillment process.

Question 22

In the context of demand management,merging tactical and strategic planning methods across functional areas of the business to align production with demand is known as ______ planning.

A) sales and operations
B) demand and order fulfillment
C) material and service
D) technology and integration

Question 23

Which statement is true of the demand management process?

A) It aligns supply and demand throughout the supply chain by creating customer-focused plans of action immediately after an actual purchase is made
B) It seeks to minimize the costs of serving multiple types of customers who have variable wants and needs
C) It presents a multi-company,unified response system to the customer whenever concerns are voiced
D) It ensures that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multistage production process

Question 24

Order fulfillment,manufacturing flow management,product development and commercialization,and returns management are some of the key business processes.

Question 25

Customers expect service from the moment a product is purchased until it is disposed of,and the customer service management process allows for touch points between the buyer and seller for nearly half this life cycle.

Question 26

Kate is a customer care executive at a telecommunications service provider.She receives a complaint from a customer about an unnecessary $10 charge on his phone bill.If the company follows the customer service management process,Kate is most likely to:

A) forecast whether such problems will arise in the future.
B) integrate the company's internal capabilities with the customer's needs.
C) provide a quick response to the customer using customer care software.
D) resolve the complaint only if the customer is highly valuable to the company.

Question 27

Which of the following compares customer relationship management (CRM)with customer service management (CSM)?

A) Whereas the CRM process is designed to analyze consumer feedback to understand trends,the CSM process is designed to ensure that marketing and advertising addresses those findings.
B) Whereas the CSM process is designed to analyze consumer feedback to understand trends,the CRM process is designed to ensure that marketing and advertising addresses those findings.
C) Whereas the CRM process is designed to identify and build relationships with good customers,the CSM process is designed to ensure that those customer relationships remain strong.
D) Whereas the CSM process is designed to identify and build relationships with good customers,the CRM process is designed to ensure that those customer relationships remain strong.

Question 28

Which of the following describes either lean or agile supply chains?

A) In a lean supply chain,products are built before demand occurs; unsold goods are treated as short-term loss incurred to increase market presence.
B) Lean supply chains wait until demand is big enough to help production reach economies of scale so that the waste is minimum or nil.
C) Agile strategies try to forecast demand and reduce waste,with the aim to maximize customer responsiveness in specific market segments.
D) Agile supply chains wait for demand to occur and use communication and flexibility to fill that demand quickly.

Question 29

Which of the following is true of returns management?

A) It allows the firm to recognize weaknesses in product design and/or areas for potential improvement through customer feedback.
B) It adds additional costs to marketing and is a burden on the already strained workforce in the customer relations department.
C) Handling returns creates a negative image as the company loses credibility for its inability to deliver on what it claims to sell.
D) Granting customers the freedom to try products without being charged for returning them ultimately reduces revenues for companies.

Question 30

The best order fulfillment processes reduce order cycle time as much as possible.The shorter lead times are beneficial in that they allow firms to carry ______.

A) reduced inventory levels and minimize investment in newer,untested projects
B) reduced inventory levels and free up cash that can be used on other projects
C) increased inventory levels and borrow cash for newer,more promising projects
D) increased inventory levels and generate greater profits by meeting sudden demands

Question 31

Which of the following statements is true of the demand management process?

A) It increases costs as it involves serving multiple types of customers who have variable wants and needs.
B) Demand management can ease pressure on the production process and allow companies to satisfy most of their customers through greater flexibility in manufacturing,marketing,and sales programs.
C) It focuses on providing a quick positive response to negative customer feedback.
D) It involves creating customer-focused plans of action prior to actual purchases being made.

Question 32

The best order fulfillment processes increase order cycle time.

Question 33

Which of the following statements is true of the supplier relationship management process?

A) It enables firms to act as leaders in protecting the natural environment.
B) It incorporates features and cost-cutting measures into final products.
C) It enables suppliers and business units to operate with limited or no interaction.
D) It provides structural support for developing and maintaining relationships with suppliers.

Question 34

Order cycle time is the time between order and customer receipt.

Question 35

Which of the following describes sales and operations planning (S&OP)meetings?

A) Marketing and sales work with procurement and logistics,not production.
B) Marketing and sales work with production and logistics,not procurement.
C) Procurement,production,and logistics work together with marketing and sales.
D) Procurement and logistics work with marketing and production works with sales.

Question 36

In certain industries,such as apparel e-retailing,returns can amount to as much as 40 percent of sales volume.

Question 37

A similarity between the customer relationship management process and the supplier relationship management process is that both provide structural support for developing and maintaining relationships with their respective supply chain partners.

Question 38

In the United Kingdom,Tesco Grocery stores plan afternoon shipments from distribution centers to stores only after reading morning sales data.This way,they can replenish inventory sold only hours before.Tesco is an example of supply chain that is ______.

A) partly agile,but mostly lean
B) partly lean,but mostly agile
C) strictly agile
D) strictly lean

Question 39

An objective of flexible manufacturing includes ___________________________.

A) creating a single variety of goods and/or services through heavy investment to maximize profit from a specific production technique
B) reaching economies of scale with minimized costs associated with a single production technique customized for a single product
C) sacrificing profitability so that multiple members of the supply chain can improve overall manufacturing output in terms of quality,delivery speed,and flexibility
D) creating flexible agreements with suppliers and shippers so that unexpected demand bursts can be accommodated,without disruptions to customer service or satisfaction

Question 40

What is a supply chain orientation? Describe the five characteristics of supply chain-oriented firms.

Question 41

Which of the following is an advantage of outsourcing logistics functions?

A) It enables firms to locate stock at fewer plants and distribution centers.
B) It helps firms focus investment on their logistical functions rather than on core business.
C) It lengthens the order-to-cash cycle.
D) It eliminates the need to use a third-party logistics company.

Question 42

Which is an advantage for companies that globalize their supply chains?

A) It allows companies to take advantage of cheaper labor and not have to contend with trade barriers and tariffs encountered and thus increases the demand for imported products worldwide.
B) It helps reduce transportation and warehousing costs.
C) It decreases the length and risk of supply chains globally.
D) It helps standardize the quality of the products produced.

Question 43

Which of the following describes third-party logistics company (3PL)?

A) It sells physical products as well as services.
B) It minimizes the order-to-cash cycle in a firm's order fulfillment process.
C) It is a permanent part of the firm's supply chain.
D) It does not include information sharing.

Question 44

Castle Brew Inc.,a leading multinational beverage manufacturing company,coordinates with Waste Yard Inc.,a waste management company,to devise a strategy to recycle and reuse beverage bottles.Castle Brew Inc.plans to install hundreds of machines that would recycle empty bottles in many locations and toreward consumers who participate in the initiative.The company believes that this initiative would help protect the environment.In this scenario,Castle Brew Inc.is practicing _____.

A) sustainable supply chain management
B) outsourcing
C) mass production
D) demand-supply integration

Question 45

Which of the following is true of three-dimensional printing?

A) Smaller,localized supply chains will outsource all customization orders.
B) Small manufacturers will profit from making fewer custom products.
C) Small manufacturers will produce products over very short lead times.
D) Small,localized supply chains will face stiff competition from bigger players.

Question 46

Which of the following is a disadvantage of supply chain globalization?

A) It restricts companies from availing taxes imposed on imported goods and services.
B) It increases labor costs and materials costs for companies.
C) It exposes companies to risks associated with geopolitical conflict.
D) It leads to stagnation of company technology or knowledge.

Question 47

Lina orders a spare part for her custom-built bike from Lumberne Technologies Inc.The company makes use of three-dimensional printing to produce the spare part at its location closest to Lina's home.In this case,which of the following technologies is used to produce the spare part?

A) Tampography
B) Lenticular printing
C) Additive manufacturing
D) Molding

Question 48

Explain the manufacturing flow management process and the relationship among manufacturers' production capabilities and costs,suppliers,shippers,and demand for goods.Briefly define and explain the differences between lean and agile supply chain strategies.

Question 49

Three-dimensional printing (3DP)is also referred to as ______ manufacturing.

A) flexible
B) postponed
C) offshore
D) additive

Question 50

Which of the following is an advantage of supply chain globalization?

A) It helps in delivering products that have highly consistent quality standards.
B) It provides consistency in transportation service.
C) It lowers labor rates and material costs.
D) It reduces competition from domestic suppliers.

Question 51

Three-dimensional printing is expected to dramatically reduce businesses' carbon footprints because the technology ______.

A) enables the use of only recyclable raw materials and renewable energy sources
B) will be heavily taxed so that the tax revenues can be channeled into green programs
C) nearly eliminates transportation of finished goods to distribution centers and retailers
D) is usable only locally and thus will tend to promote local economies that are small

Question 52

Which of the following is true of U.S.businesses in the current globalized world?

A) Companies generally offshore to service providers located in countries with higher labor costs but with proven technical expertise.
B) As fuel costs have risen and security issues become more prominent,many companies have begun to relocate outsourced operations closer to home.
C) Nearshoring to locations such as Mexico or the Caribbean nations reduces supply chain risk but leads to higher costs.
D) Nearshoringgives the supplier a chance to make its presence known at a local level but locates manufacturing farther away from major demand centers.

Question 53

Walmart outsourced portions of its transportation to C.H.Robinson and was thus able to focus on merchandising rather than shipping.In this example,______.

A) Walmart is a 3PL company
B) Walmart is a 4PL company
C) C.H.Robinson is a 3PL company
D) C.H.Robinson is a 4PL company

Question 54

Which of the following is a major advantage of offshoring?

A) It reduces supply chain risks for a company.
B) It decreases labor costs incurred by a company.
C) It enables a company to relocate outsourced operations closer to home.
D) It reduces the fuel costs spent on transporting goods.

Question 55

General Motors recently built a plant in Toluca,Mexico,leading to a 40 percent savings on production costs when transportation and labor costs were considered together.This is an instance of ______.

A) nearshoring
B) contract logistics
C) supply chain orientation
D) exclusive distribution

Question 56

Buying and managing transportation,warehousing,and/or light postponed manufacturing are logistical functions that typically lend themselves to ______.

A) sustainable supply chain management
B) outsourcing and contract logistics
C) returns management
D) supplier relationship management

Question 57

A common misconception surrounding both environmental and social sustainability is that their practice increases supply chain costs disproportionately,and therefore should be enacted only when business leaders are willing to act altruistically or for the purposes of good public relations.

Question 58

Which of the following statements is true of three-dimensional printing?

A) It is expected to lead businesses to act in ways that will increase their carbon footprints.
B) It cannot be used in the automobile parts,biomedical,and fast food industries.
C) It will lead to the mass production of standardized goods rather than custom products.
D) It will nearly eliminate the need to transport finished goods to distribution centers and retailers.

Question 59

Which of the following statements is true of public-private partnerships?

A) They increase the negative impacts of potentially hazardous supply chain situations.
B) They are critical to the satisfaction of both company and societal interests.
C) They are formed when the magnitude of a supply chain dilemma is of little consequence to a company.
D) They lack the power to solve future national and global supply chain problems.

Question 60

Which of the following best defines the order-to-cash cycle?

A) It is the time gap between purchase of raw materials and manufacturing of the final product.
B) It is the amount of time between order placement and receipt of the customer's payment following order shipment.
C) It is the time delay between the packaging of an order and the consumption of the product.
D) It is the amount of time between the cancellation of an order and the approval of cancellation.

Question 61

Offshoring reduces transportation costs of distributing a company's product.

Question 62

How do you separate intermediaries from buyers and sellers for the ownership of merchandise in terms of taking title?

A) The intermediary neither owns the merchandise nor controls the terms of the sale.
B) The intermediary does not own the merchandise but controls the terms of the sale.
C) The intermediary owns the merchandise and controls the terms of the sale.
D) The intermediary owns the merchandise but does not control the terms of the sale.

Question 63

Third-party logistics companies (3PLs)or logistics integrators are consulting-based organizations that assess another firm's entire logistical service needs and provide integrated solutions.These 3PLs often draw on multiple fourth-party logistics companies (4PLs)to provide the actual service.

Question 64

Which statement accurately describes an outcome of acquiring and analyzing big data?

A) It will replace human reasoning with slower but more accurate decision making.
B) It will result in decision making that is based on intuition rather than actual information.
C) It can be used to make decisions about automating supply chain processes,thus replacing human labor.
D) It will accomplish repetitive tasks with significant precision but at a higher cost than human number crunching.

Question 65

When you purchase a loaf of bread,which of the following is creating exchange utility?

A) The transport company
B) The government
C) The supermarket
D) The bread factory

Question 66

Entity A supplies planed timber,paint,varnish,springs,upholstery,and cushioning to Entity B,which produces a ready to use furniture.Entity C is the marketing department of Entity B.In this context,______.

A) A is an upstream supply chain member,while C is the downstream chain member
B) C is an upstream supply chain member,while A is the downstream chain member
C) B is an upstream supply chain member,while A is the downstream chain member
D) C is an upstream supply chain member,while B is the downstream chain member

Question 67

Which of the following is true of big data's use in supply chain management?

A) It offers only limited information about supply chain operations.
B) It refers to data that previously had been hard to capture,store,manage,and analyze.
C) It lends itself to the challenge of extracting usable date from information available about supply chain operations.
D) It is difficult to access on geographically remote network servers.

Question 68

Warehouse space is an example of a third-party logistics company product.

Question 69

No matter how extensive the role of 3PLs and 4PLs may be in providing logistic support to a firm,they never are the firm's only point of interaction with the customer.

Question 70

Nearshoring leads to high costs and increases supply chain risk.

Question 71

Which of the following is true of channel members within marketing channels?

A) They play roles that are different from those of intermediaries and resellers.
B) They facilitate the change of ownership but not the sale to the final consumer.
C) They provide division of labor but without any particular specialization in moving goods.
D) They help provide contact efficiency as goods move into the hands of the final consumer.

Question 72

Generally speaking,industry and government work uncooperatively even when problems common to both emerge.In fact,they often work against one another.Thus,formation of successful PPPs is rare.

Question 73

Supply chain analytics programs have many objectives that,if realized,would ______.

A) mean higher prices for customers but will lead to greater customer satisfaction
B) mean higher prices for customers and thus lower customer satisfaction
C) offer lower prices for customers but lead to lower customer satisfaction
D) offer lower prices for customers and lead to greater customer satisfaction

Question 74

Third-party logistics companies sell logistics solutions and physical products.

Question 75

What are the disadvantages of globalizing a company's supply chain?

Question 76

According to the concepts of specialization and division of labor,breaking down a complex task into smaller ones and assigning these to specialists creates ______.

A) lower efficiency and higher average production costs
B) lower efficiency but lower average production costs
C) greater efficiency but higher average production costs
D) greater efficiency and lower average production costs

Question 77

Every year,a manufacturer in Milwaukee,WI,makes raincoats and employs its own fleet of vans to make the product available in stores across coastal Oregon and Washington State just when the rainy season begins in those parts of the United States.The manufacturer is creating ______.

A) form,time,and place utility
B) form,time,and exchange utility
C) time and place utility,but not form utility
D) form and place utility,but not time utility

Question 78

Connections between cargo vessels or trucks and transportation networks may eventually lead to the development of smart transportation modes that reroute in real time based on local traffic patterns,weather events,and accidents.Which of the following will someday enable such a possibility?

A) Supply chain analytics
B) The Internet of Things
C) Cloud computing
D) Strategic channel alliances

Question 79

When a customer buys a pair of jeans,which of the following is creating form utility?

A) The government
B) The supermarket
C) The transport company
D) The clothing factory

Question 80

DutiLog Inc.is a company that specializes in providing warehouse space and transportation solutions to a diverse group of firms.Given this information,DutiLog Inc.is an example of a third-party logistics company.