Deck 1: Understanding the Supply Chain

Question 1

There is a close connection between the design and management of supply chain flows and the success of a supply chain.

Answer 1

True

Question 2

A supply chain includes only the organizations directly involved in supplying components needed for manufacturing.

Answer 2

False

Question 3

The objective of every supply chain is to maximize the net value generated.

Answer 3

True

Question 4

All stages of an enterprise are involved,either directly or indirectly,in fulfilling a customer request.

Question 5

The cycle view of the supply chain is useful when considering operational decisions,because it specifies the roles and responsibilities of each member of the supply chain.

Question 6

The goal during the supply chain operation phase is to exploit the reduction of uncertainty and optimize performance.

Question 7

The difference between the value of the product and its price remains with the customer as consumer surplus.

Question 8

The manufacturing cycle occurs at the distributor/manufacturer interface.

Question 9

Push processes may also be referred to as speculative processes.

Question 10

The objective of customer order entry is to maintain a record of product receipt and complete payment.

Question 11

The procurement cycle occurs at the manufacturer/supplier interface.

Question 12

The push/pull view of a supply chain holds that the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.

Question 13

The objective of the customer arrival process is to ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.

Question 14

The production scheduling process in the manufacturing cycle is similar to the order entry process in the replenishment cycle.

Question 15

The supply chain planning phase exceeds the supply chain design phase in duration.

Question 16

All supply chain activities within a firm belong to one of three macro processes - CRM,ISCM and SRM.

Question 17

A supply chain could be more accurately described as a supply network or supply web.

Question 18

The cycle view of a supply chain holds that the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.

Question 19

CRM systems typically include capabilities for sourcing and negotiating as well as design and supply collaboration.

Question 20

The replenishment cycle occurs at the retailer/distributor interface.

Question 21

A supply chain features a constant flow of

A)information,product and funds.
B)personnel,information,and policies.
C)processes,funds,and product.
D)product,processes,and support.

Question 22

Which of these words best describes a typical supply chain structure?

A)Static
B)Customer
C)Cyclical
D)Network

Question 23

The drawback of Zara's responsive supply chain is that it tends to sell more products at markdown than most of its competitors.

Question 24

For any supply chain,the source of revenue is generated by

A)efficient operations.
B)information flows.
C)the customer.
D)product flows.

Question 25

Retailing in the United States is largely

A)push/pull.
B)profitable.
C)consolidated.
D)centralized.

Question 26

Which of these statements about Dell's supply chain is best?

A)Dell's supply chain surplus was largely driven by their negative shipping model.
B)Dell's initial success was largely driven by the ability to accurately forecast what customers wanted and supply those models to retail outlets that carried their computers.
C)Dell's initial success was largely driven by their Assembly → Customer supply chain linkage.
D)Dell's supply chain consists of only two members,Dell and the customer.

Question 27

Walmart's supply chain features clusters of stores around distribution centers,which facilitates

A)high transportation costs.
B)frequent but inexpensive replenishment at the stores.
C)rapid design cycles from their R&D group.
D)sharing of information with suppliers.

Question 28

All analytics should be designed to support decision making.

Question 29

Good strategic decisions cannot be made without access to relevant analytics.

Question 30

Webvan designed a supply chain with large warehouses in several major cities in the United States,from which groceries were delivered to customer homes.They failed partly because of

A)low demand for their service.
B)slow inventory turnover compared to industry averages.
C)higher labor costs for picking orders.
D)poor quality products.

Question 31

The objective of every supply chain is to

A)minimize the overall cost generated.
B)maximize the net value generated.
C)minimize the cost to the manufacturer.
D)maximize the profit of the manufacturer.

Question 32

Supply chain surplus involves what two parts?

A)Manufacturing cost and selling price
B)Customer value and supply chain cost
C)Customer value and high quality products
D)Reliable transportation and supply chain cost

Question 33

The decision phases in a supply chain include

A)production scheduling.
B)customer relationship management.
C)supply chain operation.
D)supply chain orientation.

Question 34

Amazon's operations are completely online.

Question 35

Which sequence of stages is typical for product flow in a supply chain?

A)Supplier → Manufacturer → Distributor
B)Retailer → Distributor → Customer
C)Manufacturer → Retailer → Distributor
D)Supplier → Customer → Retailer

Question 36

Which statement about supply chains is best?

A)New product development is not a supply chain function.
B)If a supplier uses a shipping company to send product to a customer,the shipping company is technically not a supply chain member.
C)Funds in a supply chain flow upstream only.
D)Flows in a supply chain may be managed by an intermediary.

Question 37

Each stage in a supply chain is connected through the flow of products,information,and funds.These flows often occur in both directions and are usually managed by

A)pricing department.
B)one of the stages.
C)upper management.
D)engineering department.

Question 38

Customer value is

A)the sum of the supply chain surplus and supply chain cost.
B)the remainder after supply chain cost is subtracted from supply chain surplus.
C)the remainder after supply chain surplus is subtracted from supply chain cost.
D)supply chain profitability minus the supply chain cost.

Question 39

For any supply chain,

A)management rests solely in the hands of the manufacturer.
B)management rests solely in the hands of the distributor.
C)if each member focuses on profitability,the overall supply chain profit will be maximized.
D)there is only one source of revenue,the customer.

Question 40

A key issue facing Toyota is

A)developing an Internet marketing system.
B)whether to specialize in a particular market.
C)design of its global production and distribution network.
D)how to implement model changes.

Question 41

The time horizon of the operation phase is typically

A)quarterly or yearly.
B)weekly or daily.
C)monthly or quarterly.
D)over the next several years.

Question 42

The cycle view of a supply chain holds that

A)the processes in a supply chain are divided into 2 categories.
B)the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.
C)all processes in a supply chain are initiated in response to a customer order.
D)all processes in a supply chain are performed in anticipation of customer orders.

Question 43

Customer order entry is

A)the point in time when the customer has access to choices and makes a decision regarding a purchase.
B)the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.
C)the process where product is prepared and sent to the customer.
D)the process where the customer receives the product and takes ownership.

Question 44

Customer order arrival refers to

A)the point in time when the customer has access to choices and makes a decision regarding a purchase.
B)the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.
C)the process where product is prepared and sent to the customer.
D)the process where the customer receives the product and takes ownership.

Question 45

Customer order fulfillment refers to

A)the point in time when the customer has access to choices and makes a decision regarding a purchase.
B)the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.
C)the process where product is prepared and sent to the customer.
D)the process where the customer receives the product and takes ownership.

Question 46

The supply chain strategy category would include a decision about

A)which items in the warehouse will be shipped to Malibu.
B)which warehouse will supply the Surf City location.
C)when the order should be shipped to the little old lady from Pasadena.
D)how large the warehouse in Kokomo should be.

Question 47

The push/pull view of a supply chain holds that

A)the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.
B)all processes in a supply chain are initiated in response to a customer order.
C)all responses in a supply chain are performed in anticipation of customer orders.
D)the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.

Question 48

The objective of the customer order arrival process is to

A)get the correct orders to customers by the promised due date at the lowest possible cost.
B)maintain a record of product receipt and complete payment.
C)maximize the conversion of customer arrivals to customer orders.
D)ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.

Question 49

Handling customer orders in the best possible manner is the goal of supply chain

A)strategy.
B)planning.
C)operations.
D)design.

Question 50

The customer order cycle occurs at the

A)customer/retailer interface.
B)retailer/distributor interface.
C)distributor/manufacturer interface.
D)manufacturer/supplier interface.

Question 51

The retailer and distributor engage in the

A)customer order cycle.
B)replenishment cycle.
C)manufacturing cycle.
D)procurement cycle.

Question 52

The objective of customer order entry is to

A)get the correct orders to customers by the promised due date at the lowest possible cost.
B)maintain a record of product receipt and complete payment.
C)maximize the conversion of customer arrivals to customer orders.
D)ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.

Question 53

The objective of customer order fulfillment is to

A)get the correct orders to customers by the promised due date at the lowest possible cost.
B)maintain a record of product receipt and complete payment.
C)maximize the conversion of customer arrivals to customer orders.
D)ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.

Question 54

A decision made about which markets will be serviced by which locations falls in the supply chain ________ phase

A)conceptualization
B)design
C)operation
D)planning

Question 55

The manufacturing cycle occurs at the

A)customer/retailer interface.
B)retailer/distributor interface.
C)distributor/manufacturer interface.
D)manufacturer/supplier interface.

Question 56

A company would decide whether to outsource or perform a supply chain function in-house during the

A)planning phase.
B)design phase.
C)tactical phase.
D)operation phase.

Question 57

The profitability of a supply chain is impacted primarily by

A)the design,planning and operation categories of decisions.
B)only the operation category of decisions.
C)only the design and planning categories of decisions.
D)only the planning and operation categories of decisions.

Question 58

Customer order receiving is

A)the point in time when the customer has access to choices and makes a decision regarding a purchase.
B)the customer informing the retailer of what they want to purchase and the retailer allocates product to the customer.
C)the process where product is prepared and sent to the customer.
D)the process where the customer receives the product and takes ownership.

Question 59

Demand is external to the supply chain and thus is most uncertain at the

A)manufacturing cycle.
B)replenishment cycle.
C)customer order cycle.
D)procurement cycle.

Question 60

The process included in the replenishment cycle includes

A)order arrival.
B)production scheduling.
C)retail sale.
D)manufacturing.

Question 61

The production scheduling process in the manufacturing cycle is similar to the

A)order receiving process in the replenishment cycle.
B)order fulfillment process in the replenishment cycle.
C)order entry process in the replenishment cycle.
D)order trigger process in the replenishment cycle.

Question 62

The manufacturer and supplier participate in the

A)procurement cycle.
B)replenishment cycle.
C)manufacturing cycle.
D)life cycle.

Question 63

The relationship between the manufacturer and supplier during the procurement cycle is very similar to the relationship between

A)customer and retailer.
B)retailer and distributor.
C)distributor and manufacturer.

Question 64

Which of the following statements about push processes is accurate?

A)They may also be referred to as speculative processes.
B)Execution is initiated in response to customer orders.
C)At the time of execution,demand is known with certainty.
D)They may also be referred to as reactive processes.

Question 65

The processes involved in the manufacturing cycle include

A)order trigger.
B)production scheduling.
C)order fulfillment.
D)order entry.

Question 66

The activities associated with planning typically occur during which macro process?

A)SRM
B)ISCM
C)DRM
D)CRM

Question 67

Which of the following statements about pull processes is accurate?

A)They may also be referred to as speculative processes.
B)Execution is initiated in anticipation of customer orders.
C)At the time of execution,demand must be forecast.
D)They may also be referred to as reactive processes.

Question 68

What are the major components of a supply chain and what is their overall goal?

Question 69

Toyota's global complementation strategy

A)calls for plants to be devoted to the production of vehicles for only the local market.
B)dictates that parts plants be built to supply all of the needs for each vehicle production plant worldwide.
C)requires that a single parts plant,for example,for brakes,export brake components to all of its vehicle assembly plants worldwide.
D)mandates that plants can produce vehicles for export to markets that remain strong when the local market weakens.

Question 70

The manufacturing and shipping process in the manufacturing cycle is equivalent to the

A)order receiving process in the replenishment cycle.
B)order fulfillment process in the replenishment cycle.
C)order entry process in the replenishment cycle.
D)order trigger process in the replenishment cycle.

Question 71

What are the three flows in a supply chain and which direction is the flow? Discuss an example used in the book that illustrates the three flows.

Question 72

Activities involved in the Customer Relationship Management (CRM)macro process include

A)planning of internal production and storage.
B)order fulfillment.
C)marketing.
D)supply planning.

Question 73

Activities involved in the Supplier Relationship Management (SRM)macro process include

A)planning of internal production and storage.
B)order fulfillment.
C)supplier evaluation and selection.
D)order management.

Question 74

Activities involved in the Internal Supply Chain Management (ISCM)macro process include

A)marketing.
B)order fulfillment.
C)sales.
D)order management.

Question 75

A key supply chain difference between Gateway and Apple is that

A)Gateway's stores currently carry a large variety of products made by other manufacturers,while Apple carries only Apple products.
B)Apple has always carried product in their stores while at one time Gateway stores carried no inventory.
C)Gateway has always used a push system while Apple has always used a pull system.
D)Gateway has no suppliers,preferring to make everything in-house,while Apple buys many of their components from suppliers.

Question 76

Supply chain macro processes include which of the following?

A)Internal Relationship Management (IRM)
B)External Relationship Management (ERM)
C)Supplier Relationship Management (SRM)
D)Customer Relationship Management (CRM)

Question 77

The cycle view of the supply chain is useful when considering operational decisions because

A)it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.
B)it specifies the roles and responsibilities of each member of the supply chain.
C)processes are identified as either reactive or speculative.
D)it focuses on processes that are external to the firm.

Question 78

Supply chain macro processes include which of the following?

A)Internal Relationship Management (IRM)
B)Customer Relationship Management (CRM)
C)External Relationship Management (ERM)
D)Supplier Relationship Management (SCRM)

Question 79

The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design because

A)it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.
B)it specifies the roles and responsibilities of each member of the supply chain.
C)it clearly defines the processes involved and the owners of each process.
D)it focuses on processes that are external to the firm.

Question 80

Zara's supply chain strategy

A)results in supply more closely matching customer demand.
B)results in longer lead times for store order fulfillment,primarily due to shipping time.
C)of purely online sales reduces the costs that they would incur with a brick and mortar store system.
D)of high volume but low cost apparel requires production well in advance of the actual selling season for each garment type.