Deck 14: Supply Chain Management

Question 1

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

Answer 1

False
This is materials requirement planning (MRP).

Question 2

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.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

RFID tags are not one of the components of a logistics information system.

Question 5

Supply chain management is completely producer driven.

Question 6

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

Question 7

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

Question 8

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 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

Both water transportation costs and reliability are low when compared with any other transportation mode.

Question 15

Another name for outsourcing is contract logistics.

Question 16

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

Question 17

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

Question 18

The goal of a materials-handling system is to handle products as infrequently as possible

Question 19

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

Question 20

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

Question 21

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

A)Relationship
B)Social
C)Customer
D)Materials and service supplier
E)Technology and planning integration

Question 22

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 23

_____ 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)Extensive distribution integration

Question 24

_____ 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 25

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 26

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 27

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 28

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 29

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 30

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 31

Through the use of automatic shipping notices,Ace Hardware is effective at removing unnecessary costs from its supply chain.According to a VP 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 32

All of the following accurately describe 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 33

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 34

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 35

Food producers love big boxes because they serve as billboards on store shelves.Walmart 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)materials and service supplier

Question 36

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 37

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 38

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 39

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 40

_____ 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 41

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

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

Question 42

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

Question 43

A firm that specializes 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 44

_____ 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 45

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 46

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 results 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 47

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

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

Question 48

Returns average about _____ percent of sales volume in most cases.

A)2
B)6
C)10
D)25
E)40

Question 49

The goal of most sourcing and procurement activities is to:

A)reduce the cost of raw materials and supplies.
B)provide satisfying customer service
C)make sure the right amount of product is kept on hand
D)identify,sort,and label goods
E)move products from supplier to producer and from producer to buyer

Question 50

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 51

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 52

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 53

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 54

Which business process is based on the activities involved in customer data collection,forecasting of future demand,synchronization of supply and demand by comparing production capacity to forecasts,and the development of activities to "smooth out" demand?

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

Question 55

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 56

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 57

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 or 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 58

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 59

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 60

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 61

All of the following are criteria used to choose a mode of transportation EXCEPT:

A)diversity
B)cost
C)transit time
D)reliability
E)traceability

Question 62

The goal of any effective materials-handling system is to:

A)reduce the time of the order-processing system
B)optimize the inventory control system
C)increase safety procedures
D)move items quickly with minimal handling
E)reduce the length of time a product is in the transportation subsystem

Question 63

The supply chain team does all of the following EXCEPT:

A)communicating,coordinating,and cooperating extensively.
B)embracing all parties who participate in moving the product to market.
C)typically cutting across organizational boundaries.
D)providing financing for distributors.
E)orchestrating the movement of goods,services,and information from the source to the consumer.

Question 64

_____ is the direct electronic transmission,from computer to computer,of standard business forms between two organizations.When this technique is used,orders can become virtually paperless,and information about the order is available to both firms.

A)Business prioritizing
B)Electronic data interchange
C)Just-in-time inventory
D)Real-time inventory
E)Direct sourcing

Question 65

In which logistical component of the supply chain will you find distribution resource planning (DRP)a common feature?

A)Production scheduling
B)Transportation
C)Order processing
D)Materials handling
E)Inventory control

Question 66

Which of the following is the inventory control system that manages the replenishment of raw materials,supplies,and components from the supplier to the manufacturer?

A)Electronic data interchange (EDI)
B)Distribution resource planning (DRP)
C)Third-party logistics firm (3PL)
D)Materials requirement planning (MRP)
E)Activity-based costing (ABC)

Question 67

ZuTech makes sensitive monitors for measuring exposure to hazardous materials.ZuTech has suffered substantial losses when moving products from the assembly line to the warehouse and shipping docks.ZuTech should consider reducing the number of times an item is moved in the warehouse by installing a(n):

A)inventory control system.
B)materials-handling system.
C)safety procedure to manage SKUs.
D)order-processing system.
E)outsourcing system.

Question 68

The growers of Vidalia onions have determined that their chief priority for choosing a transportation mode within the United States is transit time.However,this must be tempered by practical cost considerations.In light of these considerations,Vidalia onion growers should use _____ to ship their onions.

A)railroads
B)motor carriers (trucks)
C)airplanes
D)water transportation
E)pipelines

Question 69

The mode of transportation that provides the most accessibility is:

A)pipelines
B)air freight
C)truck freight
D)water transport
E)railroad

Question 70

The goal of inventory control is to:

A)minimize inventory levels while maintaining an adequate supply of goods to meet customer demands.
B)maximize inventory levels to prevent any possibility of stockouts.
C)determine order timing and order quantity.
D)estimate proper usage rates.
E)integrate JIT to reduce risks of obsolescence,theft,and damage.

Question 71

Which of the following is a member of a supply chain team that moves just-picked cotton to finished clothing and then to the consumer of that clothing?

A)The warehouse in which the cotton was temporarily stored
B)The ad agency that develops the promotion for the clothing
C)The farmer who picks the cotton
D)The trucking company that hauls the cotton to the clothing manufacturer
E)All of the choices

Question 72

_____ is a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's demand.

A)The materials-handling system
B)An inventory control system
C)Direct sourcing
D)Contract logistics
E)Warehousing

Question 73

In which logistical component of the supply chain will you find electronic data interchange a common feature?

A)Production scheduling
B)Transportation
C)Order processing
D)Materials handling
E)All of these

Question 74

_____ provides time utility to buyers and sellers and aids manufacturers in managing supply and demand.

A)Containerization
B)Distribution
C)Storage
D)Direct sourcing
E)Channelization

Question 75

One-quarter of Ace's 60,000 SKUs are vendor managed through software called the "Collaboration" program.This software allows certain vendors to go online to get information to build their forecasts.The result of this application is fewer shipments,fuller pallets,increased pallets per truck,and a reduction in freight.Collaboration is part of Ace's:

A)logistics information system
B)materials requirement plan
C)EDI
D)RFID chips
E)distribution resources strategy

Question 76

The relative ease with which a shipment can be located and transferred is:

A)dependability
B)traceability
C)capability
D)transit time
E)observability

Question 77

Which of the following provides the technological link connecting all of the logistics components of the supply chain?

A)Logistics information system
B)Materials requirement plan
C)EDI
D)RFID chips
E)Distribution resources strategy

Question 78

All of the following are types of inputs used in both materials requirement planning and distribution resource planning EXCEPT:

A)the source of funding.
B)lead times.
C)the mode of transportation to be used.
D)outstanding orders.
E)sales forecasts.

Question 79

All of the following are logistics components of the supply chain EXCEPT:

A)trade promotions
B)production scheduling
C)inventory control
D)warehousing and materials handling
E)order processing

Question 80

Which of the following moves inventory into,within,and out of a warehouse?

A)An inventory control system
B)A multichannel system
C)An ERP control system
D)A freight forwarder
E)A materials-handling system