Deck 14: Supply Chain Management

Question 1

Cross-docking allows for companies to load and off-load products with minimal warehousing-often in the same day.

Answer 1

True

Question 2

High role specificity means each firm in the supply chain has clarity in terms of knowing which firm is the leader,which firms are the followers,and which responsibilities are assigned to each firm.

Answer 2

True

Question 3

The six criteria important in selecting a transportation mode are relative cost,transit time,reliability,capability,accessibility,and traceability.

Answer 3

True

Question 4

Supply chain management is a key means of differentiation for a firm and a critical component in marketing and corporate strategy.

Question 5

It is illegal for companies to knowingly provide better service to their most profitable customers.

Question 6

The goals of the manufacturing flow management process are centered on generating,filing,delivering,and providing on-the-spot service for customer orders.

Question 7

The lean supply chain management strategy embraces removal of waste from the supply chain system in whatever form it is found.

Question 8

The demand management process seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level of creating demand-related plans of action prior to actual customer purchasing behavior.

Question 9

A successful apparel company found that significant demand existed among buyers who needed to place a number of small orders rather than a few big orders.The company most likely succeeded because of the use of agile supply chain management strategies.

Question 10

Products and marketplaces differ substantially in their core characteristics so supply chain management strategies should be selected according to the situation at hand.

Question 11

EDI is often used to replace paper documents with electronic documents containing the same information.

Question 12

Water transportation is by far the most expensive mode of transportation,but it is also the most reliable.

Question 13

Vertical structure refers to the number of tiers in the supply chain.

Question 14

Managing inventory from the supplier to the manufacturer is called distribution resource planning (DRP).

Question 15

Zambelli International Fireworks uses an accounting method that assesses the costs associated with each supply chain activity,which is known as base-line costing.

Question 16

Companies that use supply chain management techniques typically also use a push promotional strategy.

Question 17

Supply chain management is completely producer-driven.

Question 18

Management practices that reflect a highly coordinated effort between supply chain partners are said to be "integrated."

Question 19

Supplier integration occurs when multiple firms in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer.

Question 20

Business processes are bundles of interconnected activities that stretch across firms in the supply chain.

Question 21

One of the most critical global supply issues for importers of any size is coping with the legalities of trade in other countries.

Question 22

All of the following are benefits of supply chain management EXCEPT:

A) increased flexibility of supply chain activities
B) improved customer service
C) reduced supply chain costs
D) decreased cash flow
E) decreased inventory

Question 23

Managing supply chain disruptions begins with putting controls in place to monitor dangerous of volatile situations.

Question 24

Another name for outsourcing is contract logistics.

Question 25

_____ coordinates and integrates all of the activities performed by channel members into a seamless process,from the source to the point of consumption,resulting in enhanced customer and economic value.

A) Yield management
B) Channel power
C) Materials handling
D) Supply chain management
E) Physical distribution

Question 26

Many industry experts regard on-time delivery and shipment of products as the single most important supply chain management criteria leading to customer satisfaction.

Question 27

A large automotive after-market business wanted to improve its current situation,which is characterized by excessive inventory,incomplete information,high logistics costs,slow reactions to environmental change,and lost profits at the retail level.Would supply chain management be of any help to the business?

A) Yes,supply chain management is designed to coordinate and integrate all the activities from raw materials to product consumption.
B) No,supply chain management is only applicable to distribution strategies for products being sold to the consumer market.
C) Yes,supply chain management would be very useful because it relies so heavily on benchmarking.
D) Yes,supply chain management would alleviate all channel conflict.
E) No,supply chain management requires an expensive investment of time and resources to make it worthwhile.

Question 28

Manufacturers who require suppliers to meet certain environmental standards are implementing green supply chain management.

Question 29

Digital distribution is a distribution technique that includes any kind of product or service that can be distributed electronically.

Question 30

The ABC Approach is a measurement system used to evaluate overall supply chain performance.

Question 31

Customer satisfaction ratings,orders picked from the warehouse per hour,and the ratio of operating assets to income are examples of metrics that can be used to repeatedly assess supply-chain performance.

Question 32

One disadvantage of the use of RFID tags is increased inventory management costs.

Question 33

A sustainable supply chain is one that employes renewable natural resources whenever possible.

Question 34

The connected chain of all of the business entities,both internal and external to the company,that perform or support the logistics function is known as the:

A) channel of distribution
B) intermediary link
C) physical distribution integration
D) reseller network
E) supply chain

Question 35

_____ occurs when all the firms and business units participating in the supply chain appear as though they are reading from the same script.

A) Strategic channel operation
B) Supply chain integration
C) Strategic MRP
D) Demand management
E) EDI (Extensive distribution integration

Question 36

All of the following accurately describe modern supply chain management EXCEPT:

A) physical flow process
B) customer-driven
C) provides enhanced customer and economic value
D) plays the role of communicator of customer demand
E) relies on a "push" strategy

Question 37

Supply chain managers are responsible for all of the following EXCEPT:

A) the management of information that flows through the supply chain
B) auditing the accounting practices of suppliers to ensure compliance with ABC accounting
C) coordinating the relationships between the company and its external partners
D) coordinating customer service activities
E) coordinating the sourcing and procurement of raw materials

Question 38

Peachtree Windows does not make a window until an order is received.It can promise delivery in five working days because of the excellent relationships it has established with its suppliers.The partnering relationship that Peachtree Windows has established with its suppliers indicates the use of:

A) supply chain management
B) yield management
C) channel networks
D) horizontal marketing channels
E) intensive distribution strategy

Question 39

Which of the following is a key principle of supply chain management that means multiple firms work together to perform tasks as a single unified system,rather than as several individual companies acting in isolation?

A) Pareto principle
B) 80/20 principle
C) Systems approach
D) Win-win approach
E) Integrative approach

Question 40

Traceability with respect to transporting modes refers to the relative ease with which a shipment can be located and transferred.

Question 41

A positive action or behavior that occurs between firms that is not part of the formal agreement and is discretionary is called:

A) interconnective behavior
B) interdependence
C) relationship marketing
D) interorganizational citizenship behavior
E) relationship functionality

Question 42

Walmart,Inc.has selected nine Bell Buckle products from two of the Company's award-winning brands for placement in its Dallas regional division stores.Because Walmart is the leader,Bell Buckle and its distributors are the follower,and each knows its role(s),this is an example of _____ within a channel.

A) a hierarchical relationship
B) role complexity
C) role specificity
D) task ambiguity
E) a functional relationship

Question 43

Which type of integration implies the performance assessment of the supply chain should be taken as a whole while also holding each member of the supply chain accountable for meeting its own goals?

A) Accountability
B) Benchmarking
C) Social
D) Planning
E) Measurement

Question 44

For true supplier integration to occur,all of the following must occur EXCEPT:

A) firms must choose their suppliers carefully
B) supply chain partners must interact in ways that minimize waste and redundancy
C) firms need to adopt a "push" system rather than a "pull" system of supply chain management
D) firms must monitor each supplier's strategic goals and operational capabilities
E) both firms must have a stake in the outcomes of their interactions

Question 45

The vice president of logistics for a salty-snack food manufacturer applied activity-based costing to convenience stores and found it a very cost-effective technique for making sure that the right products were on the shelves when consumers wanted them.In other words,he used _____ integration to make more effective operational decisions.

A) relationship
B) social
C) functional
D) planning
E) measurement

Question 46

Food producers love big boxes because they serve as billboards on store shelves.Wal-Mart wants to change this practice and promises suppliers that their shelf spaces won't shrink even if their boxes do.As a result,some of its vendors have reengineered their packaging.This is an example of _____ integration.

A) relationship
B) social
C) functional
D) operational
E) material and service supplier

Question 47

Which of the following is an example of one of the six types of integration that are sought by firms interested in providing top-level service to their customers?

A) Strategic integration
B) Hierarchical integration
C) Internal operations integration
D) Global integration
E) All of the above

Question 48

Through the use of automatic shipping notices,Ace Hardware is effective at removing unnecessary costs from its supply chain.According to a vice-president of inventory for the retailer,"Information gathering that used to take three or four phone calls now is available immediately." This is an example of the use of _____ integration.

A) relationship
B) social
C) functional
D) technology and planning
E) internal operations

Question 49

By achieving _____ integration across their supply chains,firms can gain the information needed to execute short-term and long-term planning,and thereby make better operational decisions.

A) relationship
B) social
C) functional
D) technology and planning
E) internal operations

Question 50

In terms of firm-to-firm social interactions,_____ integration provides important benefits.

A) relationship
B) measurement
C) customer
D) production
E) technology and planning

Question 51

Nabisco has reduced product inventory requirements from 49 days to 22 days.This frees up cash and warehouse space,adding flexibility to the plant.This seamless linking of Nabisco's strategic business units is accomplished through _____ integration.

A) relationship
B) social
C) functional
D) hierarchical
E) internal operations

Question 52

Which of the following assists supply chain members in achieving measurement integration by assessing the costs associated with each supply chain activity?

A) Electronic data interchange
B) Role specificity
C) Benchmarking
D) ABC segmentation
E) Activity-based costing

Question 53

All of the following have been identified as helpful in generating measurement integration across the supply chain EXCEPT:

A) functional assessment
B) resource-based perspective
C) activity-based costing (ABC)
D) total cost perspective
E) agreed-upon metrics

Question 54

When each firm in a supply chain has clarity in terms of knowing which firm is the leader,which are the followers,and which responsibilities are assigned to each firm,role _____ is evident.

A) specificity
B) complexity
C) ambiguity
D) confidence
E) hierarchy

Question 55

All of the following activity groups are related closely to internal operations integration success EXCEPT:

A) the use of cross-functional teams
B) activity-based costing
C) standardization of work processes across work groups
D) simplification of all work processes as much as possible
E) a reconfiguration of the physical assets the company owns

Question 56

_____ integration is the ability of two or more companies to develop social connections that serve to guide their interactions when working together.

A) Social
B) Relationship
C) Customer
D) Materials and service supplier
E) Role

Question 57

Sobha Developers is the only company in India and possibly the world that manufactures almost everything that goes into its buildings.It is this backward integration that gives Sobha absolute control over quality at every level.Sobha has the highest possible _____ integration.

A) relationship
B) social
C) functional
D) operational
E) internal operations

Question 58

_____ integration requires firms within a supply chain to link seamlessly so that they can streamline work processes and thereby provide smooth,high-quality customer experiences.

A) Relationship
B) Social
C) Functional
D) Internal operations
E) Material and service supplier

Question 59

The standards set by measuring the best,quickest,and most efficient work practices are called:

A) benchmarks
B) zero points
C) reference points
D) paradigms
E) process norms

Question 60

When the Boeing Co.announced it would delay the introduction of its new 787,the CEO blamed the problem on the company's supply chain.Airplanes use thousands of individual parts and in an attempt to relieve the smaller,individual supply chain quandary,Boeing used major suppliers to construct large pieces of the plane.Boeing would have benefited from more _____ integration.

A) channel
B) supply chain
C) MRP
D) functional
E) tactical distribution

Question 61

Mattel,the world's biggest toymaker,ordered 18 million toys made in China to be recalled because of hazards such as the use of lead paint.Mattel's _____ process allowed it to handle the product recall efficiently.

A) order fulfillment
B) returns management
C) product commercialization
D) demand management
E) product fulfillment

Question 62

By working closely with its suppliers and listening to its customers,Target has improved the service encounter to a level that was not thought possible in mass retailing.This is an example of which of the eight critical processes performed by supply managers?

A) Manufacturing flow management
B) Customer service management
C) Product development and commercialization
D) Order fulfillment
E) Demand management

Question 63

Of the eight critical business processes on which supply chain managers must focus,which process allows companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or the supply chain?

A) Customer relationship management
B) Returns management
C) Product development and commercialization
D) Order fulfillment
E) Demand management

Question 64

The order fulfillment process involves all of the following activities EXCEPT:

A) order filling and delivery
B) order processing and document handling
C) materials handling
D) updating account status
E) order generation

Question 65

The activities that enable the demand management process to work include:

A) customer data collection
B) forecasting of future demand
C) sales and operations planning
D) the development of activities that tend to "smooth out" demand
E) All of the above.

Question 66

The process of ABC segmentation is a critical process if _____ integration is to be successful.

A) functional
B) social
C) customer
D) operational
E) internal operations

Question 67

_____ are composed of bundles of interconnected activities that stretch across firms in the supply chain.

A) ABC segmentation strategies
B) Activity-based costing activities
C) Customer relationship management strategies
D) Business processes
E) Customer service activities

Question 68

Which business process ensures that firms in the supply chain have the resources they need?

A) Manufacturing flow management
B) Customer service management
C) Product development and commercialization
D) Order fulfillment
E) Demand management

Question 69

All of the following are activities related to the manufacturing flow process EXCEPT:

A) the determination of a supply's route and velocity through manufacturing
B) updating account status following shipment
C) materials planning
D) quality management
E) inventory management for both parts and finished goods

Question 70

New product idea generation and screening is related to which of the following processes?

A) Demand management
B) Order fulfillment
C) Customer service management
D) Product development and commercialization
E) Customer relationship management

Question 71

The amount of time between order placement,receipt of the customer's payment,and order shipment is known as the:

A) 3PL cycle
B) product life cycle
C) purchase cycle
D) order-to-cash cycle
E) float

Question 72

There are eight critical business processes on which supply chain managers must focus.Which of the following is one of those processes?

A) Sales promotion activities
B) Returns management
C) Distribution intensity
D) Public relations activities
E) Environmental assessments

Question 73

The _____ process 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.

A) manufacturing flow management
B) demand management
C) product development and commercialization
D) order fulfillment
E) customer service management

Question 74

A firm that specialize in the order fulfillment process is called a(n):

A) third party logistics firm (3PL)
B) intermediate distributor
C) industrial distributor
D) merchant wholesaler
E) ABC firm

Question 75

ProLog is a firm that specializes in warehousing and fulfilling orders for firms as diverse as those supplying parts for manufacturers of complicated missile defense systems to those manufacturing pet care products.Firms contract ProLog to manage part of all of their order fulfillment process.ProLog is an example of a:

A) merchant wholesaler
B) retailer
C) distributor
D) third party logistics firm (3PL)
E) manufacturing flow process manager

Question 76

After examining performance data,the Queen City Awning Company has determined that each employee should be able to manufacture ten canvas awnings each day.This is an example of an internal:

A) paradigm
B) yardstick
C) prototype
D) process norm
E) benchmark

Question 77

_____ integration is a competency that enables firms to offer long-lasting,distinctive,value-added offerings to those customers who represent the greatest value to the firm or supply chain.

A) Customer
B) Social
C) Measurement
D) Departmental
E) Internal operations

Question 78

Of the eight critical business processes on which supply chain managers must focus,the _____ process presents a multi-company,unified response system to the customer whenever complaints,concerns,questions,or comments are voiced.

A) manufacturing flow management
B) customer service management
C) product development and commercialization
D) order fulfillment
E) demand management

Question 79

Specialty Blades designs precision cutting devices for varied applications.On one recent project they worked closely with a medical device company,developing a combination scalpel and stapler that slices tissue very neatly close to the staples,which resulted in less traumatic procedures,and quicker patient recoveries.This is an example of which of the eight critical processes performed by supply chain managers?

A) Supplier relationship management
B) Customer service management
C) Product development and commercialization
D) Order fulfillment
E) Demand management

Question 80

Which business process supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers?

A) Supplier relationship management
B) Customer service management
C) Product development and commercialization
D) Order fulfillment
E) Demand management