Deck 9: Supply Chain Management: Managing Business to Business Interactions

Question 1

Effective supply chain management depends as much on the flow of information as it does on the flow of goods.

Answer 1

True

Question 2

On the surface, it appears that supply chain management efforts have been motivated most directly by two of the value attributes: cost and quality.

Answer 2

False

Question 3

Outsourcing can be detrimental when it comes to inventory costs and to the timeliness component of value.

Answer 3

True

Question 4

The bullwhip effect can detract from the productivity of the supply chain.

Question 5

The bullwhip effect refers to the need for retailers to control their suppliers through any means necessary.

Question 6

For many manufacturers, particularly those who depend on outsourcing, component designs are as critical as that of the finished products.

Question 7

A global supply chain is mandatory as a business extends its markets to foreign countries.

Question 8

As consumer demand depletes inventory, inventory goes out at a relatively smooth rate.

Question 9

Value-added anywhere in the supply chain is critical to the value received by the customer.

Question 10

The impact demand fluctuations have on processes and capabilities can be direct and can have significant implications for the competitive success of the firm.

Question 11

Which of the following statements is true about a supply chain?

A) Effective supply chain management depends on the flow of information and on the flow of materials.
B) All activities on the supply chain add value.
C) A short-term perspective recognizes that if a decision improves performance for an individual business . while increasing the overall costs for the supply chain, the overall benefit will be positive for the supply chain and for the customer.
D) Supply chains include all materials involved in the product, but do not include services.

Question 12

Which of the following IS NOT a motivating factor for the adoption of SCM?

A) Increased competition to meet customer expectations for value.
B) Recognizing that customer decisions and actions often dictate costs and limitations for suppliers.
C) Recognizing supplier decisions and actions often dictate costs and limitations for customers.
D) Recognizing that supplier decisions and actions often dictate value, but not costs, for customers.
E) Increased potential for timely communication and feedback brought about by technological advances.

Question 13

The value attributes by which SCM efforts have been motivated most include:

A) Cost and timeliness
B) Quality and dependability
C) Quality and Timeliness
D) Technology and convenience

Question 14

Which of the following statements is not true about the impact of suppliers on customers?

A) A missed delivery due date or defective products can result in missed shipments, delays and can create a dissatisfied customer.
B) Unreliability within the chain typically results in the customer decreasing inventory to reduce the direct . dependencies that can contribute to the problem.
C) Suppliers often incurred unnecessary costs trying to meet the needs of customers.
D) Quality has generally been ignored as a supply chain management outcome.

Question 15

A supply chain could typically include:

A) Warehouses
B) Production facilities
C) Truck transport
D) Inventory
E) All of the above

Question 16

An attempt to model the entire supply chain so that "what if" analysis can be performed is known as:

A) Supply chain planning
B) Supply chain network optimization
C) Supply chain blueprinting
D) Standardization

Question 17

In a retailer-supplier partnership:

A) Ownership of inventory remains with the retailer from delivery to sale.
B) Relationships are required by law to be arms length.
C) The trend has been to increase the involvement of the supplier in the management of inventory.
D) Suppliers should not have access to the retailers POS data.

Question 18

In a vender-management inventory (VMI) relationship:

A) The retailer makes inventory decisions.
B) The supplier is responsible for order and product mix decisions.
C) The retailer orders inventory when needed.
D) The retailer determines the order quantity, timing, and placement.

Question 19

Which of the following statements is compatible with the supplier relationship matrix?

A) Only a balance between commitment to low prices and commitment to the relationship can be effective.
B) Certification programs are used to develop balanced supplier relationships.
C) Suppliers utilize their expertise in supplier development efforts as another way to build balanced relationships.
D) Supplier switching costs can be spread out over the long-term

Question 20

Which of the following decisions are least critical with regard to information management and information sharing in supply chain management?

A) How the data should be stored
B) What data should be collected
C) With whom is data shared
D) How long data should be kept before being deleted

Question 21

A process of buyer/supplier partners negotiating and agreeing on a plan for meeting demand is known as

A) Forecasting
B) Vendor managed inventory
C) Collaborative planning, forecasting, and replenishment
D) Cooperative product design

Question 22

Deciding how to buy supplies is known as

A) Channel selection
B) Developing a distribution strategy
C) Vendor selection
D) Vendor standardization

Question 23

An auction in which the business desiring to make a purchase runs the auction and potential sellers bid is known as a

A) Dutch auction
B) Reverse Auction
C) Reverse Channel
D) Buyer/Supplier partnership

Question 24

Which of the following statements is NOT true about extending the supply chain globally?

A) Businesses do not use the same distribution network when entering global markets.
B) The impact of a global extension of the supply chain is going to depend on whether the customer end or . the supplier end is extended.
C) A global supply chain is mandatory as a business extends its markets to foreign countries.
D) Only the supplier end is extended in a true global supply chain.

Question 25

The supply function

A) Is primarily concerned with the downstream portion of the supply chain
B) Is also sometimes known as the sourcing function
C) Is less important than the logistics function
D) Is the part of the supply chain that causes most of the bullwhip effect

Question 26

Which of the following is not a cause of the bullwhip effect?

A) Demand forecast updating
B) Order Batching
C) Inventory level fluctuations
D) Price fluctuations
E) Rationing and shortage gaming

Question 27

Which of the following statements is true regarding the bullwhip effect?

A) A key to eliminating the bullwhip effect and a key to any SCM effort is an increase in information supplied by businesses to their suppliers.
B) The bullwhip effect invariably results in decreased levels of inventory throughout the supply chain.
C) The implications of the bullwhip effect cannot be traced to its impact on each of the four components of value.
D) The bullwhip effect will always be present in supply chains, no matter what managers do to try to eliminate it.

Question 28

An order that is the correct item, is in the correct quantity, is undamaged, and arrives on time is known as:

A) High quality
B) A perfect order
C) A 3PL
D) A channel winner

Question 29

Of 5,000 total orders delivered, a local shipping company delivered 95 late, 18 damaged, and 24 to the wrong address. The percentage of perfect orders was

A) 1.9%
B) 2.74%
C) 97.26 %
D) 98.1%

Question 30

Even though only some activities in the supply chain _____ _____, all ____ ____.

Question 31

______ and _______ flow both up and down the supply chain.

Question 32

The emphasis on _____ and _____ enhancement in the supply chain management does not mean that the value component of quality is ignored.

Question 33

The development of _____ rather than just hiring _____ is at the heart of SCM.

Question 34

The supplier relationship matrix points out how only a balance between commitment to ___ ____ and commitment to the ________ can be effective.

Question 35

The generic supply chain is an excellent ____ ____ for examining the extent of the SCM impact.

Question 36

The impact demand fluctuations has on ______ and ____ can be direct and can have significant implications for the competitive success of the firm.

Question 37

After 10 years of experience as a supply chain manager of a traditional manufacturing firm, you have been hired as a director of supply chain for a virtual corporation. Discuss how you would manage the supply chain activities of your new position (in a virtual firm) differently from your old job (traditional supply chain). Provide specific examples.

Question 38

A global supply chain is mandatory as a business extends its markets to foreign countries. Your company has decided to extend its customer base into foreign countries, what are some benefits and problems you see your company encountering? What strategies should your company adopt in order to ensure smooth supply chain management extension? Provide as many examples as possible