Deck 1: Introduction to Supply Chain Management

Question 1

According to the textbook,in the 1950's and 1960's,mass production techniques focused on creating supplier partnerships,improving process design and flexibility,and improving product quality.

Answer 1

False

Question 2

Trucking companies,airfreight shipping companies,and information system providers can all be considered service providers to the supply chain.

Answer 2

True

Question 3

According to the textbook,retail stores are considered the focal firms in modern supply chains.

Answer 3

False

Question 4

Trends in supply chain management include a change or realignment of the competitive strategies employed among at least some of the participating firms.

Question 5

Many large firms are moving to in-house vertically integrated structures where they have more control over each business unit.

Question 6

According to the textbook,environmental and social impacts are considered outside of supply chain management.

Question 7

Reverse logistics activities include the return of defective and damaged items to the manufacturer,and the recycling of used packaging.

Question 8

According to the textbook,supply chains include raw material suppliers,intermediate component manufacturers,end-product manufacturers,wholesale distributors,retailers and end-product consumers.

Question 9

According to the textbook,the keys to successful supply chain management include trust,cooperation,collaboration and honest,accurate communications between supply chain partners.

Question 10

According to the textbook,'integration' is one of the four supply chain elements.

Question 11

A supply chain performance measurement system focuses on meeting sales or cost figures.

Question 12

The bullwhip effect is the result of companies producing excessive defective products; defective items are whipped back from the end customer toward the manufacturer of the defect.

Question 13

According to the textbook,third-party logistics providers (3LPs)do not offer assistance with helping products clear customs.​

Question 14

_ Small events such as weather and traffic problems which can impact deliveries are a part of supply chain risk.

Question 15

Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.

Question 16

The universally accepted definition of supply chain management is "the management and integration of the parties involved in producing the end items coveted by consumers."

Question 17

One definition of supply chain management is "The planning and management of all activities involved in sourcing and procurement,conversion,and all logistics management activity."

Question 18

The assembly or production of finished products,producing the right amount of product,and ensuring that finished products meet specific quality,cost,and customer service requirements can all be considered elements of operations.

Question 19

Improved quality is one benefit of using a lean production system.​

Question 20

According to the textbook,a supply chain's end customers are the only true source of income for all supply chain organizations.

Question 21

The traditional approach to purchasing and supply management is to build relations with suppliers to jointly pull costs out of the product or service and expect suppliers to contribute innovate ideas that continually add value to a firm's products and services.

Question 22

Today's emphasis on supplier quality has shifted from detecting defects at the time of receipt or use to prevention early in the materials-sourcing process.

Question 23

Supply management is a broader concept than purchasing.

Question 24

Supply chain management does not require the coordination of activities and flows that do not extend across boundaries.

Question 25

The development of strategic purchasing practices can only help a company maintain its competitive position in a rapidly changing business environment.

Question 26

In the manufacturing sector,the percentage of purchases to sales averages 55 percent.

Question 27

Purchasing is becoming less responsible for sourcing indirect goods and services required by internal groups.

Question 28

Competition today is no longer between firms; it is between the supply chains of those firms.

Question 29

According to Porter,a firm's value chain is composed of primary and support activities that can lead to competitive advantage when configured properly.​

Question 30

Sophisticated customers,both industrial and consumer,no longer talk about price increases - they demand price reductions!​

Question 31

The availability of low-cost domestic supplier alternatives has led to the shift away from outsourcing and offshoring.​

Question 32

Distribution management involves the management of packaging,storing,and handling of materials at receiving docks,warehouses,and retail outlets.

Question 33

The key to the success of any company is the quality of its employees.

Question 34

Formal organizational charts portray the entirety of the workings of an organization.

Question 35

The routine ordering and follow-up of basic operational supplies is a strategic responsibility.

Question 36

Most of the features that make their way into final products originate with suppliers.​

Question 37

Cost management is no longer an integral part of purchasing and supply chain management.​

Question 38

Global sourcing is a requirement and no longer a luxury for most firms.

Question 39

Purchasing and supply management has a major impact on product and service quality.

Question 40

An abundance of competitors and choices have conditioned customers to want higher quality,faster delivery,and products and services tailored to their individual needs at a higher total cost.

Question 41

Efficient supply chain management distribution requires that modern warehouses concentrate their efforts on a wide array of warehousing and distribution functions like storing purchases,work in progress inventories,and finished goods inventories,receiving shipments,breaking down shipments,repackaging,and the distribution of components.

Question 42

Generally speaking,rail carriers are less expensive than motor carriers.

Question 43

The primary difference between FOB origination and FOB destination is that FOB destination requires that the supplier legal own the product until it reaches the destination; in FOB origination the buyer takes ownership immediately and is thus responsible for arranging delivery.

Question 44

In Period 4 of the evolution of purchasing and supply chain management,firms faced stable competition and had access to abundant material - conditions that historically have diminished the overall importance of purchasing.

Question 45

In cost-of-service pricing,the cost of shipping increases proportionally with distance.

Question 46

In order to provide more comprehensive delivery service,some freight-only airlines have invested in developing their own motor carrier fleets to provide full door to door service delivery.

Question 47

The Department of Transportation was created by the 1920 Transportation Act.

Question 48

While transportation regulation and deregulation both have their supporters,proponents of regulation consider it to be good since it is said to encourage competition and allows the negotiation of prices to dictate market costs.

Question 49

There is a definitive and prescriptive set of supply chain measures that result in one best way to measure supply chain performance.​

Question 50

When a supplier provides a price quote to a buyer for supplies that includes transportation to the buyer's location this is known as FOB destination pricing,or free on board to the shipment's destination.

Question 51

Risk pooling is a strategy that attempts to use fewer warehouses to decrease the required safety stock levels since the negatively correlated market demands reduce the overall demand variance across the markets which the centralized warehouse services.

Question 52

A shipment that originates in Los Angeles and is placed inside a sealed standardized 8' by 8' by 20' container attached to a truck trailer and is moved from Los Angeles to Phoenix where the container is then moved to a railcar for final shipment to Denver where it would then be loaded onto another truck trailer would be considered an intermodal shipment since the container remained sealed throughout the shipment.

Question 53

According to the textbook,the five basic modes of transportation are motor,rail,air,water,and cyberspace.

Question 54

A small LTL shipment that originates on a truck in Los Angeles and is moved from Los Angeles to Phoenix where it is unloaded and put onto another truck for final shipment to Denver would be considered an intermodal shipment since it utilizes more than one vehicle during shipment.

Question 55

Private warehouses refer to warehouses that are owned by the firm storing the goods.

Question 56

The responsibility of transportation is to create both time utility and place utility,which means that products will be delivered at precisely the right time to the desired location.

Question 57

With FOB pricing,a supplier is the legal owner of a product until the product reaches its destination.

Question 58

Because air transport is so expensive the best cargo candidates for air travel are those cargo shipments with a high cost to weight ratio.

Question 59

While high speed trains in the United States are commonly utilized to provide quick delivery of product,countries like Japan and France are struggling to develop a competitive high-speed rail system.

Question 60

Limitations of air carrier transport include cost and airport accessibility.

Question 61

A factor that encourages and enables firms to work together more effectively than ever before is

A)More people are opening small specialized mom-and-pop businesses
B)Competition is contracting in all industries and markets around the world
C)Communication technologies make partnerships much easier than ever before
D)Companies are adopting 3 working shifts

Question 62

International intermediaries can provide shipping,consolidation,and other import and export services.Some examples of these international intermediaries include: foreign freight forwarders,NVOCCs,FTZs,and TOFCs.

Question 63

One operational method for managing inventory is the implementation of a software system which can be referred to as:​

A)Material requirements planning (MRP)
B)Demand capacity tracking (DCT)
C)Inventory sourcing (IS)
D)Demand process reengineering (DPR)

Question 64

Which of the following can be classified as a 3PL?

A)A company that offers warehousing services
B)A company that offers transportation services
C)A company that offers customs clearing services
D)All of these

Question 65

The following supply chain concept was introduced in the 1990's in an attempt to reduce waste and increase performance:

A)Business Process Reengineering
B)Offshoring
C)Vertical Integration
D)Material Requirement Planning

Question 66

Which of the following statements is TRUE?

A)Supply chain management was invented by the auto manufacturing industry
B)Strategic partnerships are seen as one of the foundations of supply chain management
C)Purchasing is seen as the final and most difficult step in the supply chain
D)Service response logistics is the digital distribution of services

Question 67

Which of the following statement is TRUE of many large firms today?

A)They are selling-off business units to focus more on core capabilities
B)They are trying to create alliances or strategic partnerships with suppliers
C)They are paying closer attention to what their direct customers really think of the goods and services bought
D)All of these

Question 68

Transportation management,customer relationship management,distribution network,and service response logistics are all important issues that are most closely related to:

A)Purchasing
B)Manufacturing
C)Integration
D)Logistics

Question 69

Which of the following acronyms is NOT paired with its correct "translation?"​

A)TQM - Total Quality Management
B)JIT - Just-in-Time
C)MRP - Manufacturing Responsiveness and Planning
D)ERP - Enterprise Resource Planning

Question 70

According to the textbook,conditions which must be present for successful supply chain management include:

A)Cooperation among firms
B)Corporate contracts regarding performance expectations
C)Short-term company focused performance
D)Vertical Integration

Question 71

Lean production is typically associated with which of the following company's production systems?

A)Proctor and Gamble
B)Toyota
C)Boeing
D)Intel

Question 72

According to the textbook,the order of product & service flow is as follows:​

A)Raw material supplier, retailer, component manufacturer, wholesale distributor, end product manufacturer, end-product consumer
B)Raw material supplier, component manufacturer, retailer, wholesale distributor, end product manufacturer, end-product consumer
C)Component manufacturer, raw material supplier, retailer, wholesale distributor, end product manufacturer, end-product consumer
D)Raw material supplier, component manufacturer, end product manufacturer, wholesale distributor, retailer, end-product consumer

Question 73

Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:

A)Progressive procurement
B)Supplier management
C)Right-shoring
D)Supply chain performance management

Question 74

Some of the e-commerce related services that transportation companies offer nowadays to remain competitive include allowing customers to plan itineraries,get freight quotes,and track shipments online.

Question 75

Assembly or production of finished products,producing the right amount of product,and ensuring that finished products meet specific quality,cost,and customer service requirements are all important issues that are most closely related to:

A)Purchasing
B)Operations
C)Integration
D)Distribution

Question 76

Which of the following is strategy usually employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities?

A)MRP II
B)Six Sigma
C)3PL
D)CAPS

Question 77

Which of the following is a reverse logistics activity:

A)Recycling products and components
B)Delivering finished goods to your customer
C)Developing a collaborative relationship with your supplier
D)Managing the quality of products

Question 78

According to the text,the FOUR important elements of the supply chain are:​

A)Purchasing, manufacturing, transportation, retail stores
B)Supply, operations, logistics, integration
C)Purchasing, manufacturing, logistics, transportation
D)Supply, operations, manufacturing, distribution

Question 79

Which of the following would be considered a third party provider?

A)A Raw materials supplier
B)An intermediate component manufacturer
C)A firm that leases storage warehousing
D)An end product manufacturer

Question 80

The following is an example of the bullwhip effect:

A)Barkley's produces a defective product and thus realizes an excessive increase in consumer returns
B)Barkley's products are so successful that it adds a new retailer for distribution
C)Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
D)Barkley's is unhappy with the performance of a distributor which causes a chain-reaction of replacements to companies involved in its supply chain