Deck 13: Supply Chain Management

Question 1

The most common solution to supply chain problems is building inventories.

Answer 1

False

Question 2

There are typically four flows in the supply chain: materials, information, returns, and financial.

Answer 2

False

Question 3

Electronic data interchange requires only a small initial investment.

Answer 3

False

Question 4

A company can't change from a push model to a pull model.

Question 5

Haya noticed that college students needed to dress up for presentations, but they never seemed to have any ties, or at least not very nice ones. She decided to set up a tie store on her campus and offer sports-themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and the student union.
Haya is downstream in her supplier's supply chain.

Question 6

Electronic data interchange minimizes paper usage and storage.

Question 7

Electronic data interchange is a problem for small businesses.

Question 8

Just-in-time inventory systems try to maximize inventories to protect against uncertainties along the supply chain.

Question 9

The push model begins with a forecast.

Question 10

Overestimating and underestimating demand both create problems for organizations.

Question 11

Modern organizations are concentrating on their core competencies and on becoming more flexible and agile.

Question 12

Internet protocol data interchange is a communication standard that enables business partners to electronically exchange routine documents.

Question 13

Packaging and assembly take place in the downstream portion of the supply chain.

Question 14

The goal of SCM systems is to reduce friction along the supply chain.

Question 15

Haya noticed that college students needed to dress up for presentations, but they never seemed to have any ties, or at least not very nice ones. She decided to set up a tie store on her campus and offer sports-themed ties as well as solid colored ties in her school colors. She purchased ties that she thought would be good sellers. She can put an announcement on the school's monitors that would display in the dining halls and the student union.
Haya is using a pull model.

Question 16

The pull model is make-to-stock.

Question 17

Supply chain visibility is the time between the receipt of incoming goods and the dispatch of finished, outbound products.

Question 18

Haya noticed that college students needed to dress up for presentations, but they never seemed to have any ties, or at least not very nice ones. She decided to set up a tie store on her campus and offer sports-themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and the student union.
The supplier of Haya's ties is downstream in her supply chain.

Question 19

A major source of supply chain uncertainty is the supply forecast.

Question 20

Horizontal integration is a business strategy in which a company buys its suppliers.

Question 21

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Haya orders 40 ties in each of the school colors and 10 in each of four sports. She almost instantly sells out of all the sport-themed ties. She decides to approach each of the sports teams on campus to see if they would be willing to buy ties "in bulk." Which of the following is true about Haya's supply chain as it relates to her new idea of having bulk sales?

A)Haya is using a push model.
B)Haya is using a pull model.
C)Haya is experiencing the bull-whip effect.
D)Haya has an accurate demand forecast.

Question 22

Which of the following is not a benefit of EDI?

A)data entry errors are minimized
B)length of messages is longer
C)messages are secured
D)fosters collaborative relationships
E)reduced cycle time

Question 23

The goals of supply chain management include which of the following?

A)to reduce uncertainty and risks along the supply chain
B)to reduce inventory levels
C)to reduce cycle time
D)to improve customer service
E)All of the choices are correct.

Question 24

The Bank of America extranet for commercial loans links lenders, loan brokers, escrow companies, title companies, and others. This is an example of which type of extranet?

A)a company and its dealers, customers, and/or suppliers
B)an industry's extranet
C)B2C exchange
D)B2B exchange
E)joint venture

Question 25

Which of the following is not a limitation of EDI?

A)It is inflexible.
B)It might require a company to restructure its business processes.
C)It is expensive, but ongoing operating costs are low.
D)Multiple EDI standards exist.
E)It is difficult to make quick changes.

Question 26

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Haya orders 40 ties in each of the school colors and 10 in each of four sports. Which of the following is true about Haya's supply chain?

A)Haya is using a just-in-time inventory system.
B)Haya is using a vendor-managed inventory.
C)Haya is building inventories.
D)Haya has vertical integration with her upstream supplier.
E)Haya is using a pull model.

Question 27

Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity. The owner of the Crafted Hand shop in her home town wants to add the bags to the items she sells on consignment in her store. Taylor would be responsible for stopping by and replenishing the inventory such that there are always ten bags on hand.
Which of the following is true?

A)This is an example of JIT inventory.
B)This is an example of a push model.
C)This is an example of vendor-managed inventory.
D)This is an example of vertical integration.

Question 28

Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity. A customer loved her bags at a recent fair and wants Taylor to make some for her. She has lots of "memory" t-shirts and Taylor's bags would make great gifts. Taylor is more than happy to take on this order.
Which of the following is true?

A)This is an example of a pull model.
B)This is an example of a push model.
C)This is an example of a bullwhip effect.
D)This is an example does not affect Taylor's supply chain.

Question 29

Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity.
Which of the following is true about Taylor's supply chain?

A)Taylor's supplier is downstream in her supply chain.
B)Taylor's customers are downstream in her supply chain.
C)Taylor has no information flows.
D)Taylor's supplier is the only other link in her supply chain.

Question 30

Internet-based extranets are much less costly than proprietary networks.

Question 31

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Haya orders 40 ties in each of the school colors and 10 in each of four sports. Which of the following is true about Haya's supply chain?

A)Haya is using a push model.
B)Haya is using a pull model.
C)Haya is experiencing the bullwhip effect.
D)Haya has an accurate demand forecast.
E)None of the above statements is true.

Question 32

Extranets use _____ technology to make communication over the Internet more secure.

A)telepresence
B)anti-malware
C)virtual private network
D)voice-over IP
E)videoconferencing

Question 33

Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity. She knows there is a huge craft fair coming up at her local high school and she has been saving all the t-shirts she has gotten that have the high school's name on it so she will have lots of bags targeted to the high school audience.
Which of the following is true about Taylor's supply chain?

A)Taylor is practicing JIT inventory.
B)Taylor has vertical integration.
C)Taylor doesn't need accurate forecasts.
D)Taylor is experiencing the bullwhip effect.

Question 34

Haya noticed that college students needed to dress up for presentations but never seemed to have any ties, or at least not very nice ones. She decided she was going to set up a tie store on her campus and offer sports themed ties as well as solid colored ties in her school colors. She can put an announcement on the school's monitors that would display in the dining halls and student union.
Haya knows she needs to manage her relationship with her supplier. Which of the following is true?

A)Haya should invest in EDI software.
B)Haya can use the supplier's intranet to order.
C)Haya should give the supplier access to her VPN.
D)Haya can use the supplier's procurement portal to order merchandise.
E)Haya can use the supplier's extranet to check on her order.

Question 35

_____ is the ability for all organizations in a supply chain to access or view relevant data on purchased materials as these materials move through their suppliers' production processes and transportation networks to their receiving docks.

A)Supply chain visibility
B)Horizontal integration
C)Vertical integration
D)Supply chain intelligence
E)Supply chain integration

Question 36

Refer to IT's About Business 13.1 - Crate & Barrel Increases Its Supply Chain Visibility: The supply chain process called _______ is the process of sourcing goods from overseas and shipping them directly to nearby overseas markets without going through the United States.

A)outsourcing b)direct shipping
C)international transfers
D)market bypassing

Question 37

Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity. She is never very sure how many she will sell at each fair so she just makes what she can and hopes she has enough to meet demand.
Which of the following is true about Taylor's supply chain?

A)Taylor is practicing JIT inventory.
B)Taylor has vertical integration.
C)Taylor doesn't need accurate forecasts.
D)Taylor is experiencing the bullwhip effect.

Question 38

The benefits of EDI include which of the following?

A)data entry errors are minimized
B)length of messages is shorter
C)messages are secured
D)fosters collaborative relationships
E)All of the choices are correct.

Question 39

Taylor uses old t-shirts to make reusable shopping or grocery bags. People donate their old t-shirts. It takes her about 30 minutes per shirt to make the bag. She sells the bags at craft fairs and donates all of her profits to her favorite charity.
Which of the following is true about Taylor's supply chain?

A)Taylor is using a push model.
B)Taylor is using a pull model.
C)Taylor is experiencing the bullwhip effect.
D)Taylor has an accurate demand forecast.

Question 40

The FedEx extranet that allows customers to track the status of a package is an example of which type of extranet?

A)a company and its dealers, customers, and/or suppliers
B)an industry's extranet
C)joint venture
D)B2B exchange
E)B2C exchange

Question 41

_____ portals automate the business processes involved in purchasing products between a single buyer and multiple suppliers.

A)Distribution
B)Corporate
C)Affiliate
D)Intranet
E)Procurement

Question 42

_____ portals automate the business processes involved in selling products from a single supplier to multiple buyers.

A)Distribution
B)Corporate
C)Affiliate
D)Intranet
E)Procurement