Deck 1: Supply Chain Management: an Overview

Question 1

Ten years ago, Southwest Auto Parts would ship a standard number of various parts to all of its 147 locations once a month. Today, Southwest's more sophisticated inventory system monitors the stock at each location and adjusts the number of each part accordingly in the monthly shipment to each store in order to prevent under- or overstocking the stores on any given part. Within an integrated supply chain, this is an example of change in:

A) product flow.
B) information flow.
C) cash flow.
D) demand flow.

Answer 1

D

Question 2

Which of the following flows only one way as illustrated in the Integrated Supply Chain-Basics figure?

A) Information
B) Products and services
C) Financials
D) None of these answers

Answer 2

D

Question 3

Best-in-class companies have developed a more flexible production schedule that allows for making inventory adjustments in 48 to 72 hours.

Answer 3

False

Question 4

Acme Fastener and Tool had a six-hour work stoppage yesterday, which means the company does not have its usual number of fasteners stored in inventory. Concerned that the inability to fulfill all current orders may have an adverse effect on some customers, Acme's account executives are notifying all customers, including Henderson Air, that there could potentially be a small delay in delivering some orders. This is an example of:

A) information flowing backward from the customer to the supplier.
B) information flowing forward from the supplier to the customer.
C) information flowing laterally between the customer and the supplier.
D) information flowing backward from the supplier to the customer.

Question 5

An organization practicing sustainable supply chain management expects its suppliers to conform to the same sustainability standards it holds.

Question 6

Logistics, in its simplest form,

A) is a military term, as it was developed originally to supply the battlefield.
B) combines inbound logistics with the outbound logistics of physical distribution.
C) is another term for transportation management.
D) does not involve customer service or other related functions.

Question 7

Globalization has had little effect on consumers.

Question 8

The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.

Question 9

Beginning in the late 1970s and into the 1980s, the US transportation industry was deregulated. The net result was a less competitive environment.

Question 10

It is predicted that social networks such as Facebook and Twitter will influence supply chains because of their impact on customer demand and the speed of information transfer.

Question 11

The demographics of our society has changed because:

A) the "Baby Boom" generation is aging.
B) of the increase in two-career families and single-parent households.
C) of immigration.
D) birth rates have changed.

Question 12

Supply and demand has become less volatile as managers have become more adept at controlling the elements.

Question 13

Most retailers are essentially supply chain companies since they:

A) dominate the consumer market.
B) own their warehouses and trucks.
C) buy products produced by others.
D) engage in off-shore sourcing.

Question 14

Which of the following is not one of the external forces driving the rate of change and shaping our economic and political landscape?

A) Government policy
B) Technology
C) Environmental concerns
D) Globalization

Question 15

Henderson Air manufactures heating and air conditioning units. Once a day, Henderson's computerized inventory system monitors the number of bolts and other fasteners the company needs to maintain production. If the amount of any type of fastener in inventory dips below preset standards, the computer automatically sends an order for more fasteners to Acme Fastener and Tool. This is an example of:

A) information flowing backward from the customer to the supplier.
B) information flowing forward from the supplier to the customer.
C) information flowing laterally between the customer and the supplier.
D) information flowing forward from the customer to the supplier.

Question 16

Sustainability reporting is a growing practice, either mandatory or voluntarily, due to the demand for transparency in the supply chains.

Question 17

The Supply Chain Concept:

A) is very new and considered cutting edge technology.
B) is highly dependent on computerization.
C) is not always well understood by senior managers.
D) is developed from the previous physical distribution concept .

Question 18

Identify the proper sequence of the three "flows" in the supply chain.
1. Product
2. Cash
3. Information

A) 1, 2, 3
B) 1, 3, 2
C) 2, 1, 3
D) 3, 2, 1

Question 19

Outsourcing involves:

A) moving company facilities away from the home office.
B) conducting business on a global scale.
C) obtaining materials, parts, products, and services from other companies .
D) building a factory in another country.

Question 20

Outsourcing is a fairly new concept.

Question 21

Discuss how globalization and consolidation in supply have increased complexity.

Question 22

Which of the following is not part of the Supply Chain network?

A) Plants
B) Stores
C) Terminals
D) Distribution centers

Question 23

Explain how today's consumers are empowered and how they impact Supply Chain Management.

Question 24

Performance measurement is important because:

A) it allows firms to rate competitors.
B) without it, managers would not know how the global economy is doing.
C) companies presently operating in the European Economic Community need to understand how its competitors are doing.
D) lower-level metrics in an organization must connect directly to the high-level performance to achieve goals.

Question 25

Complexity in the supply chain is caused by:

A) the number of SKUs.
B) locations of customers and suppliers.
C) transportation requirements.
D) all of these answers.

Question 26

Discuss how Performance Measurement can affect Supply Chain Management.

Question 27

A critical outcome of the supply chain is to deliver:

A) profits.
B) the right product to the right place.
C) cost/value.
D) on management's expectations.

Question 28

What is the role of Transportation Management in connection with Supply Chains?

Question 29

Don is comparing quotes from two different shippers. One shipper has offered a lower price but will require three weeks to ship his products, while the other has offered to deliver the goods to his customer in 10 days, but for a higher price. Don is evaluating:

A) outbound logistics versus inbound logistics.
B) cost performance versus schedule performance.
C) cost versus value.
D) profit versus customer service.

Question 30

Of the 11 specific challenges to supply chain management discussed in the chapter, which one do you think is the most significant or would have the greatest impact on an organization? Provide at least one general example to support your answer.

Question 31

The challenge to develop and sustain an efficient and effective supply chain(s) requires organizations to address a number of issues. Which of the following is not included in them?

A) Complexity
B) Inventory deployment
C) Inventory carrying costs
D) Technology

Question 32

What is the significance of Globalization in Supply Chain Management?

Question 33

Describe the concept of an "integrated logistics management" that begins with the supplier's supplier and ends with the final consumer, including both outbound-related factors and inbound-related factors. What are the benefits to considering outbound and inbound logistics as a whole?