Deck 14: Strategic Supply Chain Network Design

Question 1

Which of the following is not an example of structural or economic changes that are requiring companies to optimize their supply chain networks?

A) Rapid globalization.
B) The "Amazon" factor.
C) Reduction in supply chain management costs.
D) Escalating customer demand for faster service.
E) Increasing demand volatility.

Answer 1

Reduction in supply chain management costs.

Question 2

In creating an optimal supply chain network, which of the following would be an activity conducted in network synthesis?

A) Determining where to place the various supply chain components.
B) How to connect and coordinate the various supply chain components.
C) Ensuring that the supply chain is both reliable and consistent.
D) Determining the make-up of each supply chain component and the performance criteria to be used.
E) Ensuring that the network design meets the requirements of customers and supply chain members.

Answer 2

Determining the make-up of each supply chain component and the performance criteria to be used.

Question 3

When flowcharting the supply chain network, which step involves limiting the number of entities to be included in the supply chain map?

A) Determine mapping session format-live and/or electronic.
B) Place and fill nodes and links-special attention to up and downstream critical players.
C) Move and reposition nodes and links as needed.
D) Node and link specification-icon selection, information depth, aggregation decisions, key business process integration, information to display, and key metrics to include.
E) Disseminate/publish "as-is" map.

Answer 3

Place and fill nodes and links-special attention to up and downstream critical players.

Question 4

In developing a supply chain map, the __________ would be primarily responsible for gathering and presenting the information collected in a centralized location and in a graphical representation of the supply chain.

A) Assembler/Compiler.
B) Coordinator/Project Manager.
C) Database Manager.
D) Data Providers.
E) Disseminator/Publisher.

Question 5

In a study of North American IT professionals, Enterprise Management Associates identified several megatrends that were impacting network design and management. Which of the following was not one of those megatrends.

A) Companies were using too few tools to monitor and troubleshoot their networks.
B) Internet of Things (IoT) was pervasive in companies.
C) Network analytics initiatives were under way in most firms.
D) Outsourcing of network management functions was common.
E) Use of the cloud was commonplace.

Question 6

Lean supply chain management initiatives, such as those implemented by Toyota, Ford and other companies, include all of the following except:

A) Consolidation of inbound deliveries.
B) Daily ordering and delivery.
C) Daily ordering throughout the supply chain.
D) Decentralized warehouses or parts cents between suppliers and regional warehouses.
E) Reduction in lot sizes

Question 7

Waste, or muda, as the Japanese refer to it, is the enemy of lean management. In manufacturing, where lean principles originated, waste included all of the following except:

A) Extra inventory.
B) Inappropriate processing.
C) Product defects.
D) Too many employees.
E) Unnecessary motion.

Question 8

When creating a business case for an ERP investment and the selection of the right ERP option, the first step that should be taken is:

A) Assess the potential benefits of the ERP investment.
B) Assess the potential costs of each ERP option.
C) Assess risks and issues that might arise during the ERP implementation.
D) Describe the business challenge; why is an ERP system needed?
E) Measure potential and actual ROI.

Question 9

Which of the following phases would not be part of a DMAIC sub-methodology of Six Sigma?

A) Analyze.
B) Define.
C) Improve.
D) Measure.
E) Verify.

Question 10

Six Sigma and lean management both result in benefits to customers and members of the supply chain. However, the tools used by each method are very different. Six Sigma would utilize all of the following tools except for:

A) Experimental design.
B) Kaizen.
C) Process controls.
D) Process mapping.
E) Statistical analysis.

Question 11

Six Sigma and lean management both result in benefits to customers and members of the supply chain. However, the tools used by each method are very different. Lean management would utilize all of the following tools except for:

A) Experimental design.
B) Kaizen.
C) Production line balancing.
D) Standardized operations.
E) Value stream mapping.

Question 12

Which of the following methods for achieving coordination in a supply chain would be considered an "informal approach" to achieving coordination?

A) Customer account teams to provide a single point of contact.
B) Establishing corporate-level SCM-oriented councils to implement best practices.
C) Establishing teams that include multiple functions and processes to develop supply chain strategies and tactics.
D) Global supply teams to manage the suppliers.
E) Use of social media networks.

Question 13

The use of 3PLs in supply chain management has increased overall in the last decade due to increasing complexity in the supply chain. Which of the following are activities or programs which 3PLs have implemented?

A) Many firms are concentrating more business with fewer 3PLs.
B) 3PLs are putting more of their own investment into facilities, equipment, and personnel.
C) Various state-of-the-art technologies have been employed by 3PLs, such as RFID, TMS and WMS systems.
D) More nontraditional services are being provided by 3PLs to their clients.
E) All of these are activities or programs that 3PLs have implemented.

Question 14

Which of the following is not a characteristic of reverse logistics/product returns handling?

A) Items moving in reverse through the supply chain are more troublesome to members of the network which handles them.
B) Moving a product back through the supply chain may cost as much as 5 to 9 times more than moving the same product forward in the supply chain.
C) Often, the returned goods cannot be transported, stored, sorted, or handled as easily as original goods, resulting in higher per-unit costs.
D) If a member of the supply chain fails to process the returned items quickly and efficiently, customer satisfaction suffers and additional costs can be incurred.
E) All of these are characteristics of reverse logistics/product returns handling.

Question 15

Measuring the performance of a supply chain usually involves three major criteria:

A) Cash, management, and transactions.
B) Cost, cash, and customer service.
C) Customer satisfaction integrated effort, and long-term profitability.
D) Plan, Source, and Deliver.
E) Transactions, mistakes, and management.

Question 16

Which of the following statements regarding managing supply chain costs is FALSE?

A) Firms in the supply chain examine ways to reduce costs at regularly scheduled intervals, usually every few years.
B) It is important for individual firms in the supply chain to be able to capture the true costs of performing various functions and processes.
C) It is important for individual firms in the supply chain to make the necessary cost-service trade-offs required to optimize the supply chain.
D) Supply chain cost reductions can improve profitability without having to increase sales.
E) The most important factors that impact supply chain costs are time, transactions, mistakes, specialization, and management.

Question 17

Which of the following is not an obstacle or constraint that can keep a firm or a supply chain from realizing all of the potential cost reductions that are possible?

A) Inability of firms to adapt quickly to changing company priorities or market conditions.
B) Increasing product or service complexity.
C) Lack of data in the firm's MIS.
D) Lack of performance metrics.
E) Poor coordination of program management and/or production planning activities.

Question 18

Which of the following statements regarding supply chain networks is FALSE.

A) Cost-service trade-off analysis is an important aspect of network optimization.
B) Optimized supply chain networks can improve supply chain productivity and flexibility.
C) Optimized supply chain networks can increase product throughput.
D) Optimized supply chain networks cannot reduce uncertainty since it is an uncontrollable factor.
E) When supply chain networks are optimized, customer satisfaction levels improve.

Question 19

All of the following would be symptoms of possible supply chain network design problems except for:

A) Financial performance, especially KPIs, measures are low.
B) High manufacturing failure rates.
C) Lack of supply chain productivity improvements.
D) Supply chain disruptions occur too often.
E) The firm is focused on strategies rather than objectives.

Question 20

When putting together a team to design or redesign a supply chain network, it is optimal to include a number of participants that represent all of the supply chain functions or processes. While all of the following entities would be on such a team, the most important entity to have on the team would be:

A) 3PLs.
B) Customers.
C) IT.
D) Logistics.
E) Sales and marketing.

Question 21

A typical network design plan includes activities such as planning, asset sourcing, operations, and performance monitoring.

Question 22

The SCOR Model is an example of a supply chain map or flowchart.

Question 23

Because supply chain network design is so comprehensive, periodic review of the supply chain process map is not required.

Question 24

Supply chain design applies only to the manufacturing sector and is not relevant to the service sector.

Question 25

"Supply chain simulation" refers to tools which enable companies to evaluate how different network designs and strategies "play out" based on some sequence of events.

Question 26

One area of supply chain management where technology is having a significant impact is in the area of product development and design.

Question 27

Studies of supply chain executives have found that in a majority of instances, supply chain leaders were not involved in the new product planning process.

Question 28

Lean supply chain management is based on the concept of lean manufacturing and has its roots in the Toyota Production System (TPS) and the work of W. Edwards Deming.

Question 29

It has been estimated that up to 80 percent of supply chain waste comes from internal processes and parties such as suppliers and vendors, rather than external to the firm.

Question 30

Enterprise Resource Planning (ERP) systems are used to plan, control, and manage day-to-day transactions in running a business and to provide real-time access to information. However, very few firms have implemented any type of ERP software.

Question 31

Ideally, the team selecting the ERP system for a firm should include a senior executive with long-term vision.

Question 32

Because most ERP systems are similar and include components used by a majority of firms, it is not important to include a planning phase in adopting and implementing an ERP software solution.

Question 33

Today, ERP systems are "pull" based, that is, they focus on demand sensing where the marketplace determines the requirements.

Question 34

In the standard normal distribution of the "bell-shaped curve," 67 percent of all observations fall within one standard deviation about the mean. At two standard deviations, 95 percent of all observations would be included; and at three standard deviations, 99 percent. Carrying this logic out further to six standard deviations, which is what "six sigma" essentially is, would include 99.99966 percent of all observations, equivalent to only 3.4 observations out of a total of one million.

Question 35

The DMAIC methodology for Six Sigma is used for creating a new product, service, or process, while DMADV is used for improving existing business processes.

Question 36

Essentially, Six Sigma focuses on actions and activities (e.g., minimizing inventories, maximizing product flow), while lean management focuses on planning and analysis.

Question 37

A keiretsu structure in supply chain management can be horizontal or vertical. A vertical structure would consist of a group or interrelated companies overseen by some committee or council representing firms in the supply chain.

Question 38

Returns (reverse logistics/product returns) has always been a major component of the SCOR Model.

Question 39

When reverse logistics is being managed, it is almost always managed within a single firm or between a few firms, but seldom managed across supply chains.

Question 40

Almost 90 percent of consumer goods firms believe that they can no longer rely solely on traditional sales channels to drive future growth.