Deck 14: Supply Chain Integration

Question 1

A common disruption of the external supply chain is engineering changes.

Answer 1

False

Question 2

Supply chain integration is the effective coordination of supply chain processes through the seamless flow of information to suppliers,up and down the supply chain

Answer 2

True

Question 3

Which of the following is NOT an internal cause of supply chain disruptions?

A)engineering changes
B)batching of orders
C)service or product promotions
D)underfilled shipments

Answer 3

D

Question 4

Which of the following is NOT an external cause of supply chain disruptions?

A)late deliveries
B)new service or product introductions
C)customer service or product mix changes
D)underfilled shipments

Question 5

Which of the following is NOT a component of the supply chain?

A)order fulfillment
B)materials
C)customer relationship
D)competitors

Question 6

A common disruption of the supply chain resulting from internal causes is order batching.

Question 7

The bullwhip effect says that in any supply chain,the ordering patterns experience increasing variance as you move closer to the end customer.

Question 8

Which of the following changes would increase the likelihood of a supply chain experiencing the bullwhip effect?

A)engineering changes to the design of a product
B)instituting a more accurate materials management information system
C)closely coordinating promotions with the internal marketing department and suppliers
D)using a more reliable delivery company

Question 9

The bullwhip effect is characterized by:

A)ordering patterns that experience increasing variance as you proceed downstream in the chain.
B)ordering patterns that experience increasing variance as you proceed upstream in the chain.
C)purchasing patterns that experience increasing variance downstream in the chain.
D)purchasing patterns that experience decreasing variance as you proceed upstream in the chain.

Question 10

The SCOR model provides guidelines for how materials are to be delivered along a supply chain.

Question 11

One source of disruption caused by the internal supply chain is:

A)forecast error.
B)underfilled shipments.
C)volume changes.
D)late deliveries.

Question 12

One source of disruption caused by the external supply chain is:

A)product or sales promotions.
B)new product or service introduction.
C)late deliveries.
D)engineering changes.

Question 13

The SCOR model focuses on the supply chain processes of planning,making,sourcing,delivering,and returning.

Question 14

A common disruption of the external supply chain is product and service mix changes.

Question 15

Possible causes of disruption due to internal supply chain problems are:

A)late deliveries.
B)machine breakdowns or inexperienced workers.
C)product and service mix changes.
D)underfilled shipments.

Question 16

Which of the following changes would decrease the likelihood of the bullwhip effect?

A)changing the mix of items in an order
B)sending partial shipments of an order
C)instituting a policy of no discounts or promotions
D)sending late deliveries of an order

Question 17

Supply chain integration is the effective coordination of supply chain processes through the seamless flow of information to suppliers,but does not include customers,such as distributors and retailers.

Question 18

The finished goods of one firm may actually be the raw materials for another firm.

Question 19

A common disruption of the supply chain resulting from internal causes is demand volume changes.

Question 20

A supply chain can be thought of as a river that flows from raw material suppliers to consumers.

Question 21

In presourcing,suppliers are selected early in the concept-development stage.

Question 22

The SCOR model focuses on the basic supply chain processes of:

A)source,control,operate,return.
B)plan source,make deliver,return.
C)purchase,operate,control,logistics.
D)operations,marketing,finance.

Question 23

What are the elements of the SCOR model?

Question 24

________ brings product engineers,process engineers,marketers,buyers,information specialists,quality specialists and suppliers together to work jointly to design a product and all its processes.

Question 25

A strain is placed on the supply chain during the ramp-up stage of the development process due to changing volumes,quality issues and last minute design changes.

Question 26

The ramp-up stage of the development process precedes the full launch stage.

Question 27

Concurrent engineering is the term used to describe a firm's development of a new product after it has been discovered that a competitor is engineering a similar product for launch.

Question 28

The SCOR model requires a(n):

A)three-tier supply chain.
B)point of reference.
C)make-to-order or assemble-to-order product.
D)process view.

Question 29

The stage of new service or product development at which personnel are trained and some pilot runs can be conducted to look for possible problems in production is called:

A)design.
B)analysis.
C)development.
D)full launch.

Question 30

The bullwhip effect results in greater demand variability at the ________ end of the supply chain and lesser demand variability at the ________ end of the supply chain.

Question 31

The product development team ensures compatibility of the proposed product with corporate strategy and regulatory standards in the:

A)design stage.
B)analysis stage.
C)development stage.
D)full launch stage.

Question 32

Concurrent engineering helps firms avoid the costly mismatch between the design of a new offering and the capability of the processes required to produce it.

Question 33

Once certified,a supplier can be used by the purchasing department without the purchaser having to make background checks.

Question 34

The stage of new product or service development that links the creation of new services or products to the corporate strategy of the firm is called:

A)design.
B)analysis.
C)development.
D)full launch.

Question 35

The ________ model focuses on the supply chain processes plan,source,make,deliver,and return.

Question 36

Which of the following is NOT a stage in the New Service / Product Development Process?

A)development
B)design
C)maintenance
D)analysis

Question 37

A new product development team that is composed of product and process engineers,marketers,quality specialists,and buyers that work together to make sure the new product can actually be built is engaging in:

A)concurrent engineering.
B)joint application development.
C)reverse logistics.
D)core process design.

Question 38

List and describe typical disruptions to the external supply chains.

Question 39

Draw a graph illustrating the bullwhip effect and discuss its impact on the measures of supply chain performance.

Question 40

List and describe typical disruptions to the internal supply chain.

Question 41

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries.Sadly,space does not permit an exhaustive list but once the test is over,check out their website.Kalil,the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics.Regardless of supplier,Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units.Kalil has obtained quotes for three different shipment sizes (Freight Costs table).All costs are in US Dollars.
Unit costs
Freight Costs
Other Costs

Use Table 14.1 to answer the question.Kalil believes in buying in bulk,regardless of who the supplier is.Which supplier would result in the lowest total cost using this criterion?

A)Supplier A
B)Supplier B
C)Supplier C
D)Supplier D

Question 42

Electronic Data Interchange enables the transmission of routine,standardized business documents from computer to computer over telephone or direct leased lines.

Question 43

In a competitive orientation to negotiations between buyer and supplier,the buyer does not always possess the power in the relationship-the supplier sometimes holds the power and can exercise this power during negotiations with the buyer.

Question 44

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business.They also consider on-time speed,top quality and customization in their selection process.Each criterion is given a weight (total = 100 points),and each supplier is scored on each criterion (1 = poor,10 = excellent).The data are shown in the following table.

Refer to the instruction above.Using the preference matrix (total weighted score)approach for selecting suppliers,which supplier should Steele select?

A)State
B)Acme
C)Either is acceptable-their preference matrix scores are the same.
D)More information is needed to make this decision.

Question 45

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business.They also consider on-time speed,top quality and customization in their selection process.Each criterion is given a weight (total = 100 points),and each supplier is scored on each criterion (1 = poor,10 = excellent).The data are shown in the following table.

Refer to the instruction above.Using the preference matrix approach for selecting suppliers,what is State's total weighted score?

A)570
B)100
C)23
D)590

Question 46

The most used form of e-purchasing today is electronic data interchange.

Question 47

Early supplier involvement is a program that allows suppliers to fill orders prior to the customer placing them.

Question 48

The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of the product is called:

A)value analysis.
B)locus of control.
C)presourcing.
D)vendor-managed inventories.

Question 49

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries.Sadly,space does not permit an exhaustive list but once the test is over,check out their website.Kalil,the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics.Regardless of supplier,Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units.Kalil has obtained quotes for three different shipment sizes (Freight Costs table).All costs are in US Dollars.
Unit costs
Freight Costs
Other Costs

Use Table 14.1 to answer the question.As shipping volume increases from 15,000 to 25,000 to 50,000,which supplier experiences the smallest percentage increase in inventory cost?

A)Supplier A
B)Supplier B
C)Supplier C
D)Supplier D

Question 50

The competitive orientation to supplier relations is that the buyer and supplier are partners.

Question 51

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries.Sadly,space does not permit an exhaustive list but once the test is over,check out their website.Kalil,the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics.Regardless of supplier,Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units.Kalil has obtained quotes for three different shipment sizes (Freight Costs table).All costs are in US Dollars.
Unit costs
Freight Costs
Other Costs

Use Table 14.1 to answer the question.Kalil believes that Alison's would benefit most from smaller shipments of accessories from their chosen supplier.Which supplier would result in the lowest total cost using this criterion?

A)Supplier A
B)Supplier B
C)Supplier C
D)Supplier D

Question 52

Green purchasing involves identifying,assessing,and managing the flow of environmental waste and finding ways to reduce it and minimize its impact on the environment.

Question 53

Which one of the following statements is TRUE about purchasing?

A)Purchasing's primary role is to satisfy the firm's long-term supply needs.
B)Purchasing's primary role should be placing and tracking orders.
C)Purchasing's primary role is to negotiate lower prices.
D)Purchasing's primary role is to negotiate prices and delivery dates.

Question 54

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries.Sadly,space does not permit an exhaustive list but once the test is over,check out their website.Kalil,the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics.Regardless of supplier,Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units.Kalil has obtained quotes for three different shipment sizes (Freight Costs table).All costs are in US Dollars.
Unit costs
Freight Costs
Other Costs

Use Table 14.1 to answer the question.Kalil has a brother-in-law that works for Supplier B and as she will soon be an aunt for the first time,she'd like to choose a shipping volume that awards Supplier B with the contract with Alison Accessories.What shipping volume should she choose?

A)15,000 units
B)25,000 units
C)50,000 units
D)Supplier B is never the best alternative.

Question 55

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business.They also consider on-time speed,top quality and customization in their selection process.Each criterion is given a weight (total = 100 points),and each supplier is scored on each criterion (1 = poor,10 = excellent).The data are shown in the following table.

Refer to the instruction above.Using the preference matrix approach for selecting suppliers,what is Acme's total weighted score?

A)100
B)570
C)24
D)590

Question 56

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries.Sadly,space does not permit an exhaustive list but once the test is over,check out their website.Kalil,the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics.Regardless of supplier,Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units.Kalil has obtained quotes for three different shipment sizes (Freight Costs table).All costs are in US Dollars.
Unit costs
Freight Costs
Other Costs

Use Table 14.1 to answer the question.Kalil believes that Alison's would benefit most from medium sized shipments of accessories from their chosen supplier.Which supplier would result in the lowest total cost using this criterion?

A)Supplier A
B)Supplier B
C)Supplier C
D)Supplier D

Question 57

An electronic market that brings together textbook sellers,office supply companies,apparel vendors,and students is an example of an exchange.

Question 58

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries.Sadly,space does not permit an exhaustive list but once the test is over,check out their website.Kalil,the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics.Regardless of supplier,Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units.Kalil has obtained quotes for three different shipment sizes (Freight Costs table).All costs are in US Dollars.
Unit costs
Freight Costs
Other Costs

Use Table 14.1 to answer the question.Kalil has a sorority sister that works at Supplier A and would like to help her out by awarding the supply contract.Which shipping volume should she choose in order to rig the bid and give her sister's company the contract?

A)15,000 units
B)25,000 units
C)50,000 units
D)None of these,the shipping volume would need to be higher than the table goes.

Question 59

A catalog hub is a central distribution point where buyers may purchase items directly from manufacturers before the items are shipped to retailers.

Question 60

Value analysis is a systematic effort to reduce the cost or improve the performance of a service or product.

Question 61

Suppliers can gain power from a number of sources in the buyer / supplier relationship.When a supplier values identification with a buyer,this is called a(n)________ source of power.

A)expert
B)reward
C)referent
D)legal

Question 62

________ is the awarding of a contract for an item or service to only one supplier.

Question 63

The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of:

A)inventory pooling control.
B)virtual distribution.
C)electronic inventory control.
D)vendor-managed inventories.

Question 64

________ is the management of the acquisition process,which includes deciding which suppliers to use,negotiating contracts,and deciding whether to buy locally.

Question 65

Suppliers can gain power from a number of sources in the buyer / supplier relationship.When a buyer can threaten to cancel future business unless the supplier adheres to the buyer's demands,this is called a ________ source of power.

A)legal
B)reward
C)referent
D)coercive

Question 66

A systematic effort to reduce the cost or improve the performance of services or products is known as:

A)presourcing.
B)cooperative orientation.
C)supplier certification.
D)value analysis.

Question 67

One of the benefits of a cooperative orientation in supplier relationships is:

A)the buyer sometimes suggests ways to improve the supplier's operations.
B)the supplier implements its own quality standards.
C)the buyer does not have to share much information with the supplier.
D)the supplier has complete freedom in choosing the delivery time.

Question 68

________ is a supplier relation in which the buyer and seller are partners,each helping the other as much as possible.

Question 69

Examples of radio frequency identification (RFID)could include all of the following EXCEPT:

A)tracking the status of engineering changes during development of a new product line.
B)tracking cases and pallets of products into and out of warehouse inventories.
C)air travel use for baggage tracking.
D)tracking the flow of parts through a manufacturing process.

Question 70

Suppliers can gain power from a number of sources in the buyer / supplier relationship.When a buyer has access to knowledge,information and skills desired by the supplier,this is called a(n)________ source of power.

A)expert
B)reward
C)referent
D)coercive

Question 71

Which one of the following statements is TRUE about a cooperative orientation in supplier relationships?

A)It cannot be implemented in Western countries because competitive bidding is more effective in that culture.
B)It cannot be implemented in the Western countries because it always benefits the supplier.
C)It requires all parts and subassemblies to be purchased from the same supplier.
D)It requires few suppliers for each item or service.

Question 72

Approaches to e-purchasing include all of the following EXCEPT:

A)catalog hubs.
B)radio frequency identification (RFID).
C)exchanges.
D)electronic data interchange (EDI).

Question 73

What are some ways that supply chain partners can collaborate on product designs? How do these ways differ?

Question 74

________ are electronic marketplaces where buying and selling firms meet to do business,without protracted contract negotiations.

Question 75

________ is the condition where the buyer has purchasing power when the purchasing volume represents a significant share of the supplier's sales.

Question 76

Knoxville Industries had their supplier design the improved body armor for their new apparel.This level of supplier involvement,known as ________ was sure to result in a pain free season.

Question 77

________ programs verify that potential suppliers have the capability to provide materials or services which the buying firms require.

Question 78

________ is a systematic effort to reduce the cost or improve the performance of products and services,either purchased or produced.

Question 79

Which one of the following statements correctly represents a benefit of centralized buying?

A)Local managers have more control over their business.
B)Purchases and production schedules are meshed more easily.
C)Customization to local preferences is simplified.
D)Increased buying power can result in significant savings in purchasing costs.

Question 80

Steve-O engaged in ________ by using only suppliers that recycled and managed their flow of environmental waste.