Deck 9: Service Supply Relationships

Question 1

Service tangibility increases as the focus of the service moves from property to people to process.

Answer 1

False

Question 2

Customer demand variability is the most difficult factor to determine in a goods supply chain.

Answer 2

True

Question 3

A good supply chain management strategy places a strong emphasis on promotional pricing.

Answer 3

False

Question 4

Need identification is the first step in the outsourcing process model.

Question 5

Information moves in both directions in the service chain for mobile workers.

Question 6

Transfer enhances productive capacity by enabling customer self-service.

Question 7

In the physical goods supply chain, information moves to the left and material to the right.

Question 8

In the past, the flow of goods in a physical supply chain was described as a pull system.

Question 9

Conversion is a primary value component of service chain management.

Question 10

Outsourcing can expose a firm to data security and customer privacy issues.

Question 11

Reactive forecasting was used for capacity planning before the implementation of physical goods supply chain management.

Question 12

Knowledge management is a strategy to retain skilled workers.

Question 13

Product postponement is the strategy of stocking a product in generic form for later customization.

Question 14

The "bullwhip effect" is a phenomenon in the physical supply chain that describes the inventory stocking levels at various stages.

Question 15

A bank is an example of a service provider with a single-level bi-directional service supply relationship.

Question 16

The flow of service is activated upon demand as a result of effective service chain management.

Question 17

Customer-supplier duality acknowledges the customer inputs in a service relationship.

Question 18

Outsourcing can provide access to the latest technology without investment.

Question 19

The service inventory-hedging strategy benefits the firm by directing skill-enhancing activities into idle time slots.

Question 20

Bidirectional optimization could be considered an example of a win-win outcome.

Question 21

Profit-per-partner is the multiplication of "margin" and "productivity."

Question 22

All but one of the following is a reason for outsourcing services: ________.

A) avoids coordination expenses and delays
B) allows the firm to focus on its core competence
C) provides access to latest technology
D) leverages benefits from supplier economies of scale

Question 23

The link between payment histories and risky driving behavior is used to price insurance policies.

Question 24

The impact of pricing on service chain management was ________ before and ________ after.

A) high; low
B) passive; active
C) static; dynamic
D) fixed; variable

Question 25

When outsourcing facilitator services, which one of the following is not a consideration?

A) Knowledge of alternate vendors is important.
B) Involvement of end user in vendor identification.
C) Experience with particular industry is important.
D) Detailed specification written by user.

Question 26

Which of the following service providers likely would be involved in a single-level bidirectional service supply relationship?

A) Pharmacy.
B) Professor.
C) Garage.
D) Mortgage company.

Question 27

Removing the kitchen from Taco Bell outlets to a central location resulted in all of the following benefits, except ________.

A) reduction in waste
B) consolidation of demand
C) shorter customer wait times
D) make-to-order customization

Question 28

Making knowledge available to customers at low cost is called ________.

A) embellishment
B) transfer
C) replacement
D) co-production

Question 29

The impact of the production element on physical goods supply chain management was ________ before and ________ after.

A) push; pull
B) inflexible; flexible
C) vertical; virtual
D) multinational; global

Question 30

The Walmart and Procter & Gamble experience illustrates the unintended consequences of independent decision making in a goods supply chain.

Question 31

Social media blends technology and social interaction for the co-creation of value.

Question 32

All but one of the following is a managerial implication of bidirectional relationships: ________.

A) vendor selection based on reputation
B) service supply relationships are hubs
C) service capacity analogous to inventory
D) quality variation of customer inputs

Question 33

Strategies to improve productive capacity include all but one of the following: ________.

A) embellishment
B) transfer
C) replacement
D) bidirectional optimization

Question 34

________ is not part of the service chain concept.

A) Conversion
B) Distribution
C) Inventory management
D) Knowledge management

Question 35

The two-way classification for the taxonomy for outsourcing business services contains six cells. Which one of the following is not a descriptive title for one of the cells?

A) Facility support.
B) Professional.
C) Employee.
D) Facilitator.

Question 36

Sources of value in service chain management include all but one of the following: ________.

A) bidirectional optimization
B) management of productive capacity
C) management of mobile workers
D) management of perishability

Question 37

Which of the following is not a source of uncertainty in managing a supply chain?

A) Supplier delivery performance.
B) Manufacturing reliability.
C) Customer demand.
D) Quality control.

Question 38

The physical goods supply chain contains all but one of the following elements: ________.

A) competitor
B) distributor
C) retailer
D) customer

Question 39

Outsourcing a service incurs transaction costs such as loss of employee loyalty.

Question 40

The cell category titled "employee development" in the taxonomy for outsourcing business services includes all but one of the following services: ________.

A) food service
B) training
C) education
D) medical care

Question 41

All but one of the following depicts the impact of service chain management: ________.

A) proactive demand management
B) variable pricing
C) real-time tracking
D) pull system for flow of information

Question 42

Travel booking is a service that falls in the ________ category of outsourcing business service.

A) facility support
B) employee development
C) facilitator
D) professional

Question 43

________ is a characteristic of social media that is not useful to service firms.

A) Easy access
B) Requiring specialized skills
C) Immediacy
D) Flexibility

Question 44

________ costs are considered a transaction cost associated with outsourcing a service.

A) Search
B) Bargaining
C) Enforcement
D) Training

Question 45

Social media "netiquettes" includes all but one of the following: ________.

A) disclosure
B) discrimination
C) honesty
D) reciprocation

Question 46

________ is (are) the highest level of professional body of knowledge.

A) Advanced skills
B) System understanding
C) Self-motivated creativity
D) Cognitive knowledge

Question 47

Which one of the following depicts the impact of goods supply chain management?

A) EDLP.
B) Functional silos.
C) Reactive forecasting.
D) Push system.

Question 48

The "employment support" category in the taxonomy for outsourcing business services falls under ________ importance of service and ________ focus of service.

A) high; people
B) low; process
C) high; process
D) low; people

Question 49

All but one of the following is a caution when considering outsourcing services: ________.

A) loss of direct control over quality
B) jeopardize employee loyalty because of job-loss fears
C) costs might increase
D) in-house capability to perform service will atrophy

Question 50

________ is not a reason for outsourcing services.

A) Leveraging benefits from a supplier
B) Allowing the firm to focus on core competence
C) Providing access to latest technology
D) None of the above

Question 51

A ________ project is not a project category for a professional firm.

A) routine
B) brains
C) grey hair
D) procedure