Deck 10: Supply Chain Management

Question 1

Major product redesign is often needed to make infrastructure improvements in the supply chain.

Answer 1

False

Question 2

Which of the following is NOT true of vertical integration?

A)Leads to greater flexibility to changing technology
B)Can result in a loss of economies of scale
C)Helps achieve control of the supply chain
D)Reap the profits of the supplier or distributor when there is an attractive return from the investment

Answer 2

Leads to greater flexibility to changing technology

Question 3

The flow of materials from upstream nodes into a firm is called:

A)Physical supply
B)Physical distribution
C)Demand management
D)None of the above

Answer 3

Physical supply

Question 4

Which of the following is NOT a characteristic of changes in structure?

A)Are long-range in nature and require considerable capital
B)Include changes in capacity,facilities,process technology,and vertical integration
C)Lead to changes in information systems
D)Are related to bricks and mortar

Question 5

What are the two fundamental processes in all supply chains that are most affected by the Internet?

A)Electronic interchange and order placement
B)Order fulfillment and order placement
C)B2B exchanges and order fulfillment
D)None of the above

Question 6

The five measures of supply chain performance are:

A)Cost,quality,flexibility,delivery,and time
B)Cost,quality,time,delivery,and reliability
C)Inventory,quality,time,delivery,and flexibility
D)Inventory,cost,quality,time,and delivery

Question 7

Which of the following is NOT a form of structural change of the supply chain?

A)Forward and backward integration
B)Creating cross-functional teams
C)Major process simplification
D)Outsourcing logistics to a third party

Question 8

Which of the following is NOT a specific measure of supply chain performance?

A)Quality
B)Time
C)Innovation
D)Delivery

Question 9

The average cash-to-cash cycle is defined as:

A)Days in inventory + Days in account receivable + Days in accounts payable
B)Days in inventory - Days in account receivable + Days in accounts payable
C)Days in inventory + Days in account receivable - Days in accounts payable
D)Days in inventory - Days in account receivable - Days in accounts payable

Question 10

Which of the following is a form of infrastructure change?

A)Process simplification
B)Product redesign
C)Changes in information systems
D)Forward integration

Question 11

Which of the following is NOT true about supply chain dynamics?

A)The supply chain is a highly interactive system.
B)There is an accelerator effect in the supply chain due to replenishment lead times.
C)The best way to improve the supply chain is to increase the total replenishment time and to feed back actual demand information to all levels.
D)All of the above statements are true.

Question 12

Which of the following does the Supply Chain Operations Reference (SCOR)model NOT include?

A)Make
B)Deliver
C)Return
D)All of the above are included

Question 13

Materials handling,transportation,and warehousing are elements of:

A)Logistics
B)Purchasing
C)Demand chain management
D)Fill rate

Question 14

Which of the following statements is NOT true regarding supply chain operations?

A)All elements of the supply chain are interconnected and dependent on each other.
B)Demand changes by the end user can create a bullwhip effect in the supply chain.
C)With perfect information at all levels of the supply chain,there will not be a bullwhip effect.
D)Time lags in the supply chain serve to create fluctuations in orders and inventories.

Question 15

Which of the following is a way to improve the infrastructure in the supply chain?

A)Forward and backward integration
B)Setup time reduction
C)Major product redesign
D)Outsourcing logistics to a third party

Question 16

__________ is a partnership of retailers,wholesalers,and manufacturers aimed at managing both demand and the supply chain.

A)Effective consumer response
B)Effective customer reaction
C)Effective consumer reply
D)Efficient consumer response

Question 17

Backward or upstream supply chain flows include:

A)Information
B)Monetary payments
C)Materials
D)All of the above

Question 18

The design and management of seamless,value-added processes across organizational boundaries to meet the real needs of the end customer is called:

A)Demand management
B)Distribution channel management
C)Supply chain management
D)Logistics management

Question 19

Which of the following is NOT a type of e-procurement?

A)Private exchanges
B)Third party auctions
C)Online catalogs
D)B2B marketplaces

Question 20

Order placement via the Internet does NOT include:

A)Increasing the accuracy of the order
B)Faster order entry
C)Manufacturing and shipment status
D)Use of an ERP system to schedule production

Question 21

It is bad to have a negative cash-to-cash cycle in which the firm receives payment before it pays its suppliers.

Question 22

Demand chain management tries to match supply and demand.

Question 23

Describe causes of the bullwhip effect.

Question 24

Final consumers can be found farthest downstream in the supply chain.

Question 25

In supply chain improvement,it is often necessary to reduce the setup time of equipment dramatically so that smaller lots of the product can be economically produced.

Question 26

List and define the five ways to change supply chain structure.
A.Engage in forward and backward integration
B.Pursue major process simplification
C.Change the configuration of factories,warehouses,or retail locations
D.Pursue major product redesign
E.Work with third-party logistics providers.

Question 27

List and define the five ways to change supply chain infrastructure.
A.Cross-functional teams
B.Partnerships
C.Setup time reduction
D.Information systems
E.Cross-docking.

Question 28

Delivery has three performance measures: on-time delivery,fill rate,and unit cost.

Question 29

What are the tasks in the purchasing cycle?

Question 30

The objective of structural and infrastructure changes is the same: To remove sources of uncertainty,to reduce replenishment time,and to reduce total cost of supplying the market.

Question 31

How can a firm design and develop a more resilient supply chain?