Deck 22: Supply Chain Management

Question 1

Which of the following statements is true of inventory?

A)Managing an inventory requires balancing between availability and cost.
B)Inventory size increases as consumers purchase items.
C)Inventory management decisions are limited to the size of the inventory.
D)Increasing the inventory size always increases a company's profitability.

Answer 1

A

Question 2

________ is a factor of information that can be transactional, such as orders and order returns, or it can be informational, such as the sharing of inventory and customer order data.

A)Purpose
B)Means
C)Availability
D)Direction

Answer 2

A

Question 3

The Automated Clearing House system among banks is an example of a standardized inter-enterprise system.

Answer 3

True

Question 4

Decreasing the size of an inventory decreases the odds that an item will be unavailable for purchase.

Question 5

In a traditional supply chain, distributors order products from ________.

A)retailers
B)manufacturers
C)customers
D)suppliers

Question 6

Which of the following refers to a network of organizations and facilities that transforms raw materials into products delivered to customers?

A)supply chain
B)distribution channel
C)strategic business unit
D)collaboration system

Question 7

Every supply chain has four basic components: suppliers, manufacturers, distributors, and retailers.

Question 8

A major factor that affects supply chain performance is the ________.

A)number of work-centers
B)working capital
C)competitors
D)facilities

Question 9

Many organizations can share a single inter-enterprise information system.

Question 10

Nathan is in charge of inventory management at a furniture manufacturing company.Given his role, Nathan will be responsible ________.

A)for the machinery used in manufacturing
B)for the evaluation of the demand for furniture for a given period
C)for the wood and aluminum used for the furniture
D)for the capital required for production

Question 11

Each level of a supply chain has a distinct source of revenue.

Question 12

Which of the following factors influences supply chain performance by affecting the ways that organizations in the supply chain request, respond, and update one another?

A)information
B)transportation
C)inventory
D)facilities

Question 13

________ refers to the methods by which information is transmitted.

A)Direction
B)Means
C)Purpose
D)Availability

Question 14

As a factor affecting supply chain performance, inventory includes all of the materials in the supply chain, including raw materials, in-process work, and finished goods.

Question 15

Explain inter-enterprise IS processes with an example.

Question 16

Which of the following refers to the way organizations share their information?

A)means
B)purpose
C)availability
D)intent

Question 17

Which of the following statements is true of an inter-enterprise system?

A)It is constant in scope and complexity.
B)It cannot be customized to the needs of organizations.
C)It is shared by two or more independent organizations.
D)It is easier to manage than other types of systems.

Question 18

Which of the following statements is true of supply chains?

A)Supply chains consist only of customers, retailers, distributors, manufacturers, and suppliers.
B)Not every supply chain has distributors and retailers.
C)Each element in the supply chain can be connected to only one entity up and down.
D)The only source of revenue in a supply chain is the retailer.

Question 19

At each level of a supply chain, an organization can work with many organizations both up and down the supply chain.

Question 20

Increasing the size of an inventory reduces the cost of the inventory.

Question 21

The bullwhip effect increases if all the participants in the supply chain have an access to consumer-demand information from the retailer.

Question 22

Define supply chain profitability.How is it different from individual organizational profitability?

Question 23

Each organization in a supply chain is an independent company with its own objectives.

Question 24

How do information systems affect supply chain performance?

Question 25

Which of the following statements is true of the bullwhip effect?

A)It forces suppliers and manufacturers to carry smaller inventories than necessary.
B)It is a natural dynamic that occurs because of the multistage nature of the supply chain.
C)It is strongly associated with erratic consumer demand.
D)It increases the overall profitability of the supply chain.

Question 26

True demand is the demand from the only party that introduces money into the system.

Question 27

The cloud storage has increased the costs of integrating an organization's information systems.

Question 28

________ is the difference between the sum of the revenue generated by the supply chain and the sum of the costs that all organizations in the supply chain incur to obtain that revenue.

A)Supply chain sustainability
B)Supply chain compatibility
C)Supply chain profitability
D)Supply chain feasibility

Question 29

Zim-ware, a kitchenware brand, recently started selling its products online.It plans to increase the sale of its products using e-commerce.Which of the following is Zim-ware most likely to experience as a result of this system change?

A)reduced costs of buying and selling
B)reduced supply chain speed
C)increased size and costs of inventories
D)optimized supply chain profitability

Question 30

Profitability of a supply chain increases if all the organizations in the supply chain operate at their maximum profitability.

Question 31

The bullwhip effect explains the amplification of demand at various stages of a supply chain.

Question 32

Information systems do not support just-in-time inventory.

Question 33

Juicebox Inc., a fruit juice processing company, has been facing irregular demand patterns for the last two years.These large fluctuations have created a bullwhip effect for the company.Which of the following steps will Juicebox Inc.most likely take to cope with this effect?

A)carry larger inventories
B)follow the just-in-time inventory policy
C)reduce its annual production of juice
D)reduce the number of employees to cut costs

Question 34

Inter-enterprise information systems are necessary to share consumer-demand information.

Question 35

Information systems have the capability to eliminate the bullwhip effect.

Question 36

The large fluctuations of the bullwhip effect force organizations to stock fewer inventories than needed.

Question 37

The phenomenon in which the variability in the size and timing of orders increases at each stage up the supply chain is referred to as the ________.

A)synergistic effect
B)flanging effect
C)stack effect
D)bullwhip effect

Question 38

What is a supply chain? What are the four drivers that are crucial to the success of a supply chain?

Question 39

Explain the bullwhip effect with an example.

Question 40

Which of the following is used as the measure of supply chain speed?

A)dollar value of goods exchanged in a given period of time
B)amount of goods exchanged in a given period of time
C)total profit generated by the components of supply chain
D)time taken to transport goods from one component to another