Deck 13: Supply Chain Management

Question 1

Designing a new product with the help of suppliers and customers can enable a company to introduce features and cost cutting measures into final products.

Answer 1

True

Question 2

Which of the following is true of supplier relationship management?

A)The supplier relationship management process has no impact on any supply chain member's bottom-line financial performance.
B)It helps suppliers and business units to operate with limited or no interactions.
C)It supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers.
D)The supplier relationship management process has nothing in common with the customer relationship management process.

Answer 2

C

Question 3

The customer relationship management process enables companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or supply chain.

Answer 3

True

Question 4

The goal of most supply management activities is to:

A)reduce the costs of raw materials and supplies.
B)engage a segment of customers who might not purchase the product otherwise.
C)eliminate other significant management activities.
D)limit the interactions between firms and their suppliers.

Question 5

Which of the following is an advantage of using customer care software?

A)It helps eliminate the process of customer relationship management.
B)It reduces the interactions between companies and their customers.
C)It helps adjust the speed of the assembly line to match customer demand.
D)It enables companies to enhance their customer service management process.

Question 6

In the customer relationship management (CRM)process,once higher-value customers are identified,firms should focus on identifying and attracting other groups by providing them with customized products and better services.

Question 7

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

Question 8

By working closely with its clients and understanding their needs,A Plus Z has improved its service encounter to a level that was not thought possible in mass retailing.Which of the eight critical business processes performed by supply chain managers does this best illustrate?

A)Manufacturing flow management
B)Customer service management
C)Demand management
D)Returns management

Question 9

Reactive supply chain resiliency measures seek to protect key inventory and assets from damage,theft,or destruction.

Question 10

Sustainable supply chain management primarily involves:

A)focusing on how to reduce interactions among suppliers,manufacturers,and end users.
B)emphasizing short-term initiatives to preserve resources for the next production cycle.
C)the use of the least expensive manufacturing,materials-handling,and transportation systems as part of the supply chain management process.
D)the integration and balancing of environmental,social,and economic thinking into all phases of the supply chain management process.

Question 11

The customer relationship management process includes customer segmentation by value and subsequent generation of customer loyalty for the most attractive segments.

Question 12

Storage reduces time utility for buyers and sellers.

Question 13

It is important to limit the number of supply chain partners in the product development and commercialization process.

Question 14

Fourth-party logistics companies (4PLs)often draw on multiple third-party logistics companies for actual service.

Question 15

DutiLog is a firm that specializes in providing warehousing,order processing,and transporting solutions to a diverse group of firms.Firms contract DutiLog to manage a part or most of their order fulfillment process.Thus,DutiLog is an example of a:

A)mediator.
B)third-party logistics company.
C)federal administrative agency.
D)job shop.

Question 16

New products and services are mostly the sole responsibility of a single firm in the supply chain.

Question 17

A large firm in the automotive aftermarket business wants to improve its current situation,which is characterized by excess inventory,incomplete information,high logistics costs,slow reactions to environmental change,and loss of profits at the retail level.Will 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 in the business market.
C)Yes,supply chain management,unlike other management philosophies,is not customer-driven.
D)No,supply chain management requires an extensive investment in time and resources to make it worthwhile.

Question 18

Using three-dimensional printing (3DP)technology,objects are built to precise specifications using raw materials at or near the location where they may be consumed.

Question 19

Which of the following is true of supply chain agility?

A)It helps companies limit the resources they spend on activities that create direct customer benefits.
B)It seeks to reduce the interactions between a company and its suppliers and service providers.
C)It enables a company to offer better customer service but at an increased supply chain cost.
D)It allows companies to adapt quickly and easily to customer needs.

Question 20

An effective materials-handling system:

A)increases the number of stages and participants in the supply chain.
B)moves inventory into,within,and out of a warehouse quickly with minimal handling.
C)helps firms maintain their inventory at the highest levels possible.
D)enables firms to increase the number of people handling their raw materials,supplies,and components.

Question 21

In a build-to-order environment,the transportation network:

A)moves inventory into,within,and out of a warehouse quickly with minimal handling.
B)eliminates the expense of storing inventories.
C)helps maintain a high level of buffer stock in the warehouse.
D)increases the number of participants in the supply chain.

Question 22

Future Market,a supermarket chain,uses bar codes for all its products.As soon as a product is sold,the information is electronically transferred to the firm's warehouse and the product's supplier.In addition,changes are automatically made to the firm's sales account and stock ledger.This helps the firm reduce its paperwork and makes managing inventory easier.This is an example of__________.

Question 23

A similarity between the customer relationship management process and supplier relationship management process is that both:

A)provide structural support for developing and maintaining relationships with their respective supply chain partners.
B)ensure that relationally integrated supply chains operate in an environment that has no set rules or procedures.
C)fail to directly impact a firm's profitability and its ability to commercialize new offerings.
D)eliminate the manufacturing flow management process within companies by removing unnecessary steps in the supply chain.

Question 24

Which of the following is a primary function of relationship integration in providing top-level service to customers?

A)It requires several individual companies or business units to act in isolation in order to offer superior service to customers.
B)It creates performance assessments that help measure the performance of the supply chain as a whole without holding each individual firm or business unit accountable for meeting its goals.
C)It includes the ways in which two or more companies will collaborate on activities or projects so that a customer gains the maximum amount of total value possible from the supply chain.
D)It involves the creation and maintenance of information technology systems that help managers across the firms in the supply chain function independently from one another.

Question 25

Which of the following is a primary function of the product development and commercialization process?

A)It seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level.
B)It deals with ensuring that firms in the supply chain have the required resources to manufacture with flexibility.
C)It deals with situations in which customers choose to return a product to the retailer or supplier,thereby creating a reverse flow of goods within the supply chain.
D)It includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms.

Question 26

Which of the following is an advantage of supply chain management to companies?

A)Reduced operational flexibility
B)Improved customer service
C)Reduced interactions between companies and their suppliers
D)Increased ability to perform in isolation

Question 27

Through the use of computer-generated shipping notices,AllCare Hardware successfully removes unnecessary costs in its supply chain.According to its vice president of inventory for the retailer,"Information that had to be gathered through three or four phone calls before is now just one click away." This is an example of the use of__________.

Question 28

Specialty Blades designs precision cutting devices for varied applications.A recent project involved the company working closely with a medical device company to develop a combination scalpel and stapler that makes precise cuts on the tissue and staples closely,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)Returns management
C)Product development and commercialization
D)Order fulfillment

Question 29

In the context of the several criteria based on which supply chain managers choose an appropriate mode of transportation,__________is the ability of a carrier to provide the appropriate equipment and conditions for moving specific kinds of goods,such as those that must be transported in a controlled environment.

Question 30

Grand Tree Doors does not make a door until an order is received.It promises product delivery within five working days because of the excellent relationship it has established with its suppliers.The partnering relationship that Grand Tree Doors shares with its suppliers and its ability to promptly serve its customers indicate that it has an efficient__________.

Question 31

Which of the following is a disadvantage of using a manual,non-automated materials-handling system?

A)Increases risk of damage
B)Decreases product handling
C)Lowers customer stockouts
D)Increases time utility

Question 32

Serena wants to buy a pair of sunglasses.She decides to buy it from Seekart,an online retail store.Seekart uses an automated system to process its customers' purchases and sends the information to the manufacturer's warehouse,which directly ships the required products to the customers.This system employed by Seekart is called a(n)__________.

Question 33

Which of the following is a primary function of materials management?

A)It enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain.
B)It orchestrates the movement of goods,services,information,and other materials from manufacturer to end user.
C)It includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms.
D)It encompasses the sourcing and procurement operations,signaling when raw materials will need to be replenished for the production of more goods.

Question 34

A manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system,such as transportation,warehousing,or order processing,is called:

A)outsourcing.
B)mediation.
C)intermediary distribution.
D)benchmarking.

Question 35

Soul Tech,a consumer electronics company,has suffered substantial losses while moving products from the assembly line to the warehouse and shipping docks.Soul Tech should consider reducing the number of times an item is moved in the warehouse by installing a(n):

A)flexible manufacturing system.
B)materials-handling system.
C)contract manufacturing system.
D)outsourcing system.

Question 36

__________is any potential disruption that threatens a supply chain's efficient and effective operations.

Question 37

Brewdom,a leading multinational beverage corporation,has teamed up with Wealth from Waste to develop a plan to improve the reverse logistics of used beverage bottles for recycle and reuse.Together,Brewdom and Wealth from Waste have plans to deploy thousands of "Recycle Machines" in both permanent and temporary locations that will take empty bottles and provide rewards to consumers who participate.These companies are practicing__________.

Question 38

A(n)__________is best described as an entire group of individuals who orchestrate the movement of goods,services,and information from the source to the consumer.

Question 39

The goal of inventory management is to:

A)minimize inventory levels while maintaining an adequate supply of goods to meet customer demands.
B)maintain the highest possible inventory of raw materials and finished goods as buffer stocks.
C)act as an alternative to supply chain management in firms.
D)create regular customer stockouts so that the demand for products increases.

Question 40

A similarity between materials requirement planning (MRP)and distribution resource planning (DRP)is that both inventory systems:

A)require the manufacturer to keep inventory levels as high as possible.
B)help manage inventory from manufacturer to end user rather than from the suppliers to the manufacturer.
C)use various inputs,such as sales forecasts,available inventory,and so on,to determine what needs to be done to replenish goods at all points in the supply chain.
D)prohibit the use of buffer stocks as insurance against unexpected demand increases.

Question 41

A company's _____ includes all of the companies involved in all of the upstream and downstream flows of products,services,finances,and information,from initial suppliers to the ultimate consumer.​

A)assembly line
B)​supply chain
C)​service mix
D)marketing channel

Question 42

Through the use of computer-generated shipping notices,AllCare Hardware successfully removes unnecessary costs in its supply chain.According to its vice president of inventory for the retailer,"Information that had to be gathered through three or four phone calls before is now just one click away." This is an example of the use of _____.​

A)measurement and feedback integration
B)​conglomerate integration
C)​customer integration
D)technology and planning integration

Question 43

Serena wants to buy a pair of sunglasses.She decides to buy it from Seekart,an online retail store.Seekart uses an automated system to process its customers' purchases and sends the information to the manufacturer's warehouse,which directly ships the required products to the customers.This system employed by Seekart is called a(n)_____.​

A)job shop
B)​assembly line
C)​materials management system
D)order processing system

Question 44

Lina and her friends decide to watch a movie at Lina's house.They watch the movie online on MovieStop.com.This business model is an example of__________.

Question 45

A company's__________includes all of the companies involved in all of the upstream and downstream flows of products,services,finances,and information,from initial suppliers to the ultimate consumer.

Question 46

A(n)_____ is best described as an entire group of individuals who orchestrate the movement of goods,services,and information from the source to the consumer.​

A)focus group
B)​supply chain team
C)​value analysis team
D)interest group

Question 47

Lina and her friends decide to watch a movie at Lina's house.They watch the movie online on MovieStop.com.This business model is an example of _____.​

A)outsourcing
B)​nearshoring
C)​electronic distribution
D)mass customization

Question 48

​_____ reflects inventory that is being assembled or manufactured from its raw state into finished goods for sales.

A)Work-in-process inventory
B)​Finished goods inventory
C)​Perpetual inventory
D)Raw materials inventory

Question 49

Explain in detail the functions of the customer relationship management process.

Question 50

__________reflects inventory that is being assembled or manufactured from its raw state into finished goods for sales.

Question 51

Why is agility crucial for companies?

Question 52

Future Market,a supermarket chain,uses bar codes for all its products.As soon as a product is sold,the information is electronically transferred to the firm's warehouse and the product's supplier.In addition,changes are automatically made to the firm's sales account and stock ledger.This helps the firm reduce its paperwork and makes managing inventory easier.This is an example of _____.​

A)activity-based costing (ABC)
B)​electronic data interchange (EDI)
C)​an automated assembly line
D)a just-in-time inventory system

Question 53

Grand Tree Doors does not make a door until an order is received.It promises product delivery within five working days because of the excellent relationship it has established with its suppliers.The partnering relationship that Grand Tree Doors shares with its suppliers and its ability to promptly serve its customers indicate that it has an efficient _____.​

A)supply chain management
B)​yield management
C)​knowledge management
D)asset lifecycle management

Question 54

Explain in detail the product development and commercialization process.

Question 55

How has the use of supply chain management resulted in a radical reformulation of traditional marketing,production,and distribution functions?

Question 56

​Brewdom,a leading multinational beverage corporation,has teamed up with Wealth from Waste to develop a plan to improve the reverse logistics of used beverage bottles for recycle and reuse.Together,Brewdom and Wealth from Waste have plans to deploy thousands of "Recycle Machines" in both permanent and temporary locations that will take empty bottles and provide rewards to consumers who participate.These companies are practicing _____.

A)sustainable supply chain management
B)​flexible manufacturing
C)​contract manufacturing
D)just-in-time inventory management

Question 57

_____ is any potential disruption that threatens a supply chain's efficient and effective operations.​

A)Supply chain integration
B)​Supply chain resiliency
C)​Supply chain sustenance
D)Supply chain risk

Question 58

How does outsourcing affect the efficient deployment of supply chain management?

Question 59

In the context of the several criteria based on which supply chain managers choose an appropriate mode of transportation,_____ is the ability of a carrier to provide the appropriate equipment and conditions for moving specific kinds of goods,such as those that must be transported in a controlled environment.​

A)traceability
B)​accessibility
C)​capability
D)reliability