Deck 5: The Supply Chain Management Concept

Question 1

The current Global Supply Chain Forum (GSCF) model identifies ____ key processes associated with supply chain management.
a. five
b. six
c. seven
d. eight

Answer 1

eight

Question 2

Which organizational function is not a focus of the Supply Chain Operations Reference (SCOR) model?
a. marketing
b. logistics
c. operations
d. procurement
e. all of the above are a focus in the SCOR Model

Answer 2

marketing

Question 3

The supply chain management concept originated in what discipline?
a. marketing
b. operations
c. logistics
d. production

Answer 3

logistics

Question 4

____ collaborations offer the best opportunity for improving supply chain performance.
a. transactional
b. tactical information sharing
c. strategic
d. operational

Question 5

Although nearly any organization can be part of a supply chain, supply chain management requires ____.
a. the involvement of third-party logistics companies
b. the participation of world-class organizations
c. at least one organization to be a multinational company
d. companies to adopt an enterprise-to-enterprise point of view

Question 6

Cooperative supply chain relationships developed to enhance the overall business performance of both parties is a definition of:
a. third-party logistics
b. supply chain collaboration
c. dovetailing
d. relationship marketing

Question 7

What is a perfect order?
a. simultaneous achievement of relevant customer metrics
b. an order that arrives on time
c. an order that arrives undamaged
d. an order that is easy for the receiver to fill

Question 8

Which of the following is not a way to reduce inventory levels?
a. smaller, more frequent orders
b. use of premium transportation
c. supply-push replenishment
d. elimination of slower-moving products
e. all of the above are ways to reduce inventory levels

Question 9

What concept can be viewed as a combination of processes, functions, activities, relationships, and pathways along which products, services, information, and financial transactions move in and between enterprises from original producer to ultimate end user or consumer?
a. logistics
b. supply chain
c. marketing channel
d. interorganizational coordination

Question 10

Which of the following is not a potential outcome from a supply chain's failure to be fast and agile?
a. dissatisfied customers
b. reduced profitability
c. decreased market share
d. lower stock price
e. all of the above are potential outcomes

Question 11

Tailored business relationships between two supply chain members refer to:
a. supply chain partnership
b. supply chain management
c. coopetition
d. tailored logistics

Question 12

Which of the following is not an attribute of relational exchanges?
a. trust
b. commitment
c. dependence
d. joint investment
e. all of the above are attributes of relational exchanges

Question 13

Supply chain collaboration can be classified as transactional, strategic, or ____ in nature.
a. operational
b. superorganizational
c. managerial
d. tactical information sharing

Question 14

____ refers to focusing part of one's supply chain on a timely response to fluctuating customer orders and/or product variety and another part of the supply chain on leveling out the planning requirements to smooth production output.
a. supply chain management
b. flexibility
c. responsiveness
d. leagility

Question 15

What concept refers to the variability in demand orders among supply chain participants?
a. min-max fluctuation
b. the bullwhip effect
c. order fluctuation
d. the boomerang effect

Question 16

An underperforming supply chain is defined as one that exhibits poor service, unproductive assets, or ____.
a. high variable operating costs
b. outdated information technology
c. poor communication
d. too many organizations (companies)

Question 17

Contemporary supply chains are increasingly required to be fast and ____.
a. lean
b. agile
c. interactive
d. relevant

Question 18

The two most prominent supply chain management process frameworks are the Supply Chain Operations Reference (SCOR) Model and the ____.
a. Supply Chain Efficiency (SCE) Model
b. Process Classification Framework (PCF)
c. Global Supply Chain Forum (GSCF) Model
d. Council of Supply Chain Management Professionals (CSCMP) Model

Question 19

Which of the following is not one of the processes in the Supply Chain Operations Reference (SCOR) model?
a. source
b. plan
c. make
d. enable
e. all of the above are processes in the SCOR Model

Question 20

An organization's ability to respond to changes in demand with respect to volume and variety refers to ____.
a. responsiveness
b. leanness
c. agility
d. relevancy

Question 21

Which of the following is not a name/term for a long-term mutually beneficial supply chain agreement?
a. partnerships
b. third-party arrangements
c. coopetition
d. contract logistics
e. all of the above are names for a long-term mutually beneficial supply chain agreement

Question 22

The supply chain concept originated in the logistics literature.

Question 23

According to the text, ____has been at the center of the changes taking place that affect the supply chain.
a. economic malaise
b. logistics
c. customer power
d. technology

Question 24

Which concept refers to where one organization owns multiple participants in the supply chain?
a. supply chain management
b. vertical integration
c. horizontal integration
d. intensive distribution

Question 25

There are three primary methods that organizations can pursue when attempting to integrate their supply chains. Which of the following is not one of them?
a. informal agreements
b. formal contracts
c. vertical integration
d. intensive distribution

Question 26

Supply chain management requires companies to adopt an enterprise-to-enterprise point of view.

Question 27

Which of the following is false?
a. top management commitment is essential if supply chain efforts are to have any chance of success
b. some companies are uncomfortable with the concept of customer power in supply chains
c. senior management commitment to supply chain management occurs in one of every two organizations
d. some companies are hesitant to enter into long-term relationships because such relationships might be perceived as limiting a company's operational flexibility
e. all of the above are true

Question 28

In a (n) ____ approach, all relevant software applications are provided by a single vendor.
a. single integrator
b. captive customer
c. customer centric
d. information outsourcing

Question 29

Which of the following is not a routine occurrence in global supply chains?
a. documentation errors
b. incomplete shipments
c. routing errors
d. packaging errors
e. all of the above are routine occurrences

Question 30

____ refers to "how we do things around here" and reflects an organization's vision, values, and strategic plans.
a. supply chain management
b. organizational behavior
c. a mission statement
d. corporate culture

Question 31

Two key factors, ____ and ____, have sparked much of the technological change affecting supply chains.
a. electronic data interchange; enterprise resource planning
b. computing power; Internet
c. Internet, electronic data interchange
d. computing power; enterprise resource planning

Question 32

____ combines technology with manual employee effort to identify trends, perform comparisons, and highlight opportunities in supply chain processes, even when large amounts of data are involved.
a. data mining
b. supply chain analytics
c. benchmarking
d. environmental scanning

Question 33

Supply chains are a new concept in the sense that they were first identified in the 1970s and 1980s.

Question 34

Which of the following statements is true?
a. third-party logistics companies demand only a few activities from third-party logistics providers
b. the decision to use third-party logistics can only be strategic in nature
c. third-party logistics is synonymous with fourth-party logistics
d. a common cause of third-party logistics failure is unreasonable and unrealistic expectations
e. all of the above are false

Question 35

Which of the following are not an attribute of supply chain partnerships?
a. mutual trust
b. increased willingness to share information
c. buying decisions based on value as opposed to cost or price
d. compatible goals
e. all of the above are attributes of supply chain partnerships

Question 36

Customers are not included as a component of supply chains.

Question 37

The general idea behind ____ is that one company allows a specialist company to provide it with one or more logistics functions.
a. supply chain management
b. multichannel marketing
c. third-party logistics
d. cross-organizational collaboration

Question 38

What is a fourth-party logistics provider?
a. a company that ensures that various third-party logistics companies are working toward the relevant supply chain goals and objectives
b. a third-party logistics provider that has achieved ISO 9000 certification
c. a logistics intermediary that specializes in one logistics activity such as warehousing or transportation
d. a third-party logistics provider that has been in existence for at least 25 years

Question 39

Research on underperforming supply chains suggests that logistics can be crucial to achieving desired levels of supply chain performance.

Question 40

Which of the following is not a barrier to supply chain management?
a. regulatory and political considerations
b. lack of top management commitment
c. reluctance to share, or use, relevant data
d. incompatible corporate cultures
e. all of the above are barriers

Question 41

Supply chain disruptions (e.g., terrorist attacks, natural disasters) have caused some supply chains to reassess their emphasis on inventory reduction.

Question 42

Enhanced communications across organizations in a supply chain is only dependent on the technological capabilities of the organizations

Question 43

The decision to use third-party logistics companies can be driven by strategic or tactical considerations.

Question 44

The boomerang effect refers to variability in demand orders among supply chain members.

Question 45

Big-box retailers have been at the center of changes taking place that affect the supply chain.

Question 46

A perfect order simultaneously achieves relevant customer metrics.

Question 47

The two prominent supply chain management frameworks are the Supply Chain Operations Reference (SCOR) model and the Process Classification Framework (PCF).

Question 48

Coopetition refers to cooperative relationships between members of a supply chain to enhance the overall business performance of all parties.

Question 49

The Supply Chain Operations Reference (SCOR) model identifies five key processes associate with supply chain management.

Question 50

A primary objective of supply chain management is to optimize the performance of the supply chain as a whole.

Question 51

Relational changes cannot be successful without information sharing among various participants.

Question 52

Tactical information sharing offers the best opportunity for improving supply chain performance.

Question 53

The general idea behind third-party logistics is that one company allows a specialist company to provide it with one or more logistics functions.

Question 54

Because customer needs and wants change relatively quickly, supply chains should be fast and lean.

Question 55

Leagility refers to a supply chain that combines the lean and agile paradigms.

Question 56

A willingness to share information and buying decisions based on value rather than cost or price are two characteristics of supply chain partnerships.

Question 57

The Internet has been referred to as the greatest force of commodization known to man, for both goods and services.

Question 58

The Global Supply Chain Forum (GSCF) Model identifies eight relevant processes associated with supply chain management.

Question 59

With respect to supply chains, relevancy focuses on an organization's ability to respond to changes in demand with respect to volume and variety.

Question 60

A fourth-party logistics provider is a supply chain facilitator that has achieved ISO 9000 certification.

Question 61

One cause of the bullwhip effect is asymmetrical information among supply chain participants.

Question 62

From the standpoint of an individual concerned with accounting controls, discuss and evaluate Johnson Toy Company's present policies for handling returned items.

Question 63

Actual senior management commitment to supply chain management occurs in one of every two organizations.

Question 64

Non-moving items (for reasons other than physical damage): see special circumstances, Section III)

Question 65

Regulatory considerations represent a bigger obstacle than political considerations to supply chain management.

Question 66

Should this policy, if adopted, be printed and distributed to all of the retailers who handle Johnson Toy Company products? Why or why not? If it should not be distributed to them, who should receive copies?

Question 67

The overall global climate for business has shifted toward allowing more cooperation among firms-which should help supply chain management.

Question 68

Corporate cultures should not be considered when designing a supply chain.

Question 69

Broadly speaking, organizations can pursue three primary methods-vertical integration, formal contracts, informal agreements-when attempting to integrate their supply chains.

Question 70

Although customer loyalty programs can provide highly detailed data to companies, there are some who believe that these programs potentially violate a customer's right to privacy.

Question 71

Today, computer hardware is a larger barrier than computer software to interorganizational collaboration.

Question 72

Supply chain analytics combines technology with manual employee effort to identify trends, perform comparisons, and highlight opportunities in supply chain processes, even when large amounts of data are involved.

Question 73

A best-of-breed approach chooses the best software application for a particular function.

Question 74

Assume that you are Cheryl Guridi, the firm's logistics manager. Do you think that the returns policy favored by the logistics manager would differ from what would be best for the firm? Why or why not?

Question 75

Top management is sometimes hesitant to fully commit to supply chain management.

Question 76

Horizontal integration refers to where one organization owns multiple participants in a supply chain.

Question 77

Supply chain agreements should be designed to reward all participants when collaborative ventures are successful and all participants should share the consequences when these ventures are less successful than desired.

Question 78

Supply chain integration tends to be more challenging in global, as opposed to domestic, supply chains.

Question 79

Answer Question 1, but from the standpoint of an individual interested in marketing.

Question 80

An individual firm can only be involved in one supply chain at a time.