Deck 10: Supply Chain Management Strategy and Design

Question 1

Supply chains for services are easier to define than supply chains for manufactured goods.

Answer 1

False

Question 2

Globalization and advances in information technology are primary reasons why supply chain management has become a competitive priority for companies.

Answer 2

True

Question 3

A supply chain is sometimes referred to as a demand-driven value chain.

Answer 3

True

Question 4

Companies address uncertainty in their supply chains by holding extra inventory.

Question 5

Increasing supply chain transparency only magnifies the bullwhip effect.

Question 6

Sustainability is defined by the United Nations as sacrificing the present needs to ensure the needs of future generations are more than satisfied.

Question 7

A supply chain encompasses only the activities associated with the flow of goods.

Question 8

One way to cope with the bullwhip effect is for supply chain members to share demand information.

Question 9

Supply chain uncertainty and variability may result in incomplete and late orders.

Question 10

Final end-use customers are upstream members of a supply chain.

Question 11

Suppliers are upstream members of a supply chain.

Question 12

Going green has become one of the most visible recent trends in operations and supply chain management.

Question 13

A supply chain consists of an integrated group of processes to source, make, and store products.

Question 14

An ongoing risk management process builds resiliency into the supply chain.

Question 15

Traditionally, each supply chain member was viewed as a separate, stand-alone entity focused on its own goals.

Question 16

Suppliers and customers rarely participate in the design of a supply chain.

Question 17

Because value chain and supply chain have similar meanings, they are often used interchangeably.

Question 18

The bullwhip effect occurs when slight to moderate demand variability becomes magnified as demand information is transmitted back upstream.

Question 19

The supply chain for a service tends to be more compacted and less extended than a supply chain for a manufactured good.

Question 20

Supply chain management focuses on integrating and managing the flow of manufactured goods, services, and related information.

Question 21

Supply chain processes include

A) procurement.
B) production.
C) distribution.
D) All of these answer choices are correct.

Question 22

The same quality management program on reducing waste can also be used to meet sustainability goals.

Question 23

Supply chain management focuses on integrating and managing the flow of

A) services.
B) information.
C) goods.
D) All of these answer choices are correct.

Question 24

Distributors, warehouses, and retailers are referred to as _____________ supply chain members.

A) downstream
B) upstream
C) procurement
D) None of these answer choices is correct.

Question 25

Company resource plan (CRP) is a software that integrates the components of a company by sharing and organizing information and data.

Question 26

Use of radio frequency identification (RFID) technology makes it possible for a customer to determine production schedules.

Question 27

Which of the following refers to an approach to risk management that aggregates risk?

A) Risk pooling
B) Risk optimizing
C) Risk capturing
D) None of these answer choices is correct.

Question 28

Collaborative planning, forecasting, and replenishment (CPFR) is a useful tool supporting supply chain integration.

Question 29

E-business replaces physical exchange processes with electronic ones.

Question 30

The purchasing of goods and services from suppliers is called

A) sourcing.
B) offshoring.
C) procurement.
D) None of these choices is correct.

Question 31

Fill rate is one of the three key performance indicators in measuring supply chain performance.

Question 32

Getting the members of a supply chain to collaborate and work together is called supply chain integration.

Question 33

A computer-to-computer exchange of business documents in a standard format is known as electronic data interchange (EDI).

Question 34

Enterprise Resource Planning (ERP) is software that helps integrate many of the supply chain components by sharing and organizing information and data among supply chain members.

Question 35

Information is the essential link for coordination among all supply chain members.

Question 36

Collaborative planning, forecasting and replenishment (CFPR) is a process where the more influential member of the supply chain dictates schedules to ensure customer demand is satisfied.

Question 37

The suppliers in a supply chain are referred to as ______________ supply chain members.

A) downstream
B) midstream
C) upstream
D) None of these answer choices is correct.

Question 38

A demand-driven value chain is considered to be a global supply chain that is organized according to all the following overlapping areas of responsibility except

A) supply management.
B) demand management.
C) product management.
D) process management.

Question 39

The impetus for sustainability comes from downstream members of the supply chain and moves upstream to include suppliers.

Question 40

The supply chain operations reference (SCOR) model reports the fraction of orders filled by a distribution center in a specific time period.

Question 41

Inventory turnover is computed by

A) dividing the cost of goods sold by the average aggregate inventory value.
B) dividing the average aggregate inventory value by costs of goods sold.
C) multiplying the average aggregate inventory value by cost of goods sold.
D) subtracting cost of goods sold from the average aggregate inventory value.

Question 42

All the following are enablers of efficient supply chain management except

A) bar codes.
B) price tags.
C) RFID tags.
D) the Internet.

Question 43

Companies resist establishing green supply chains for all the following reasons except that

A) the market is soft for products with green attributes.
B) green manufacturing requires costly new equipment and practice.
C) green initiatives lower costs because fewer resources are consumed.
D) green practices face additional government, societal and cultural pressures.

Question 44

Information sharing in support of supply chain integration includes all the following types except

A) demand data.
B) inventory stocks.
C) cost and profit data.
D) production and shipping schedules.

Question 45

Which of the following is not a key to effective supply chain management?

A) communication among members
B) independence among members
C) collaboration among members
D) trust among members

Question 46

A company that produces small electric motors for treadmills had cost of goods sold last year of $241,000,000. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 365 days a year, the days of supply being held in inventory is

A) 44.4 days.
B) 27.4 days.
C) 8.2 days.
D) 0.1 day.

Question 47

Supply chain integration does not involve __________________ among supply chain members.

A) providing information
B) collaborating on replenishment
C) reducing competition
D) coordinating work flows

Question 48

E-business replaces _________ processes with ___________ ones.

A) physical, electronic
B) electronic, physical
C) physical, physical
D) electronic, electronic

Question 49

_______________________ is not a perceived advantage of radio frequency identification (RFID) technology.

A) Loss of personal privacy
B) Reduced stock-outs
C) Prevention of fraud or theft
D) Lower distribution costs

Question 50

A computer-to-computer exchange of business documents in a standard format is known as

A) e-business.
B) electronic data interchange (EDI).
C) radio frequency identification (RFID).
D) point-of-sale data.

Question 51

The United Nations defines sustainability as meeting _________ needs without compromising the ability of ______ generations to meet their needs.

A) future, present
B) present, future
C) present, present
D) future, future

Question 52

The bullwhip effect can

A) increase inventories.
B) increase demand.
C) increase customer service levels.
D) increase capacity.

Question 53

Which of the following is not one of the three key performance indicators (KPI) used to measure supply chain performance?

A) inventory turnover
B) postponement rate
C) inventory days of supply
D) fill rate

Question 54

Information technology supports supply chain integration through

A) information sharing and collaborative planning.
B) workflow coordination.
C) adoption of new methods and technologies.
D) All of these answer choices are correct.

Question 55

A company that produces specialized video equipment had cost of goods sold last year of $127,000,000. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year then the number of inventory turns would be

A) 1.4 turns.
B) 4.4 turns.
C) 9.0 turns.
D) 10.2 turns.

Question 56

One way to reduce the bullwhip effect is for supply chain members to

A) make ordering decisions independently of each other.
B) create demand forecasts independently of other supply chain members.
C) share demand forecasts with other supply chain members.
D) restrict information flows between supply chain members.

Question 57

All the following are approaches used in risk pooling within a supply chain except

A) reducing the number and variety of parts.
B) encouraging large orders.
C) combining inventories from multiple locations into one location.
D) None of these answer choices is correct.

Question 58

Increased uncertainty and variability in a supply chain typically results in

A) faster deliveries.
B) more accurate order fulfillment.
C) larger inventories.
D) lower costs.

Question 59

Information sharing among supply chain members will typically result in all of the following except

A) faster response times.
B) early problem detection.
C) an increased bullwhip effect.
D) greater trust and confidence among supply chain members.

Question 60

In general, it can be said of a modern supply chain that ________ information has the effect of ________ inventory.

A) increasing, decreasing
B) decreasing, increasing
C) increasing, increasing
D) decreasing, decreasing

Question 61

What is a supply chain?

Question 62

List and explain the three key supply chain performance indicators.

Question 63

What is the bullwhip effect and how does it occur?

Question 64

All of the following are performance metrics in the SCOR system, except a) perfect order fulfillment.
B) production flexibility.
C) value-added productivity.
D) asset fulfillment.

Question 65

What processes comprise the supply chain and how are the processes integrated?

Question 66

A company that produces printer cartridges had cost of goods sold last year of $629,462,423. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year, then the weeks of supply in inventory would be

A) 3.7 weeks.
B) 2.5 weeks.
C) 13.5 weeks.
D) 28.3 weeks.

Question 67

What is the role of information and information technology in managing the supply chain?

Question 68

A company that produces specialized video equipment had cost of goods sold last year of $127,000,000. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year, then the weeks of supply in inventory would be

A) 4.9 weeks.
B) 0.1 week.
C) 10.2 weeks.
D) 35.8 weeks.

Question 69

The fraction of orders filled by a distribution center or warehouse within a specific time period is referred to as the

A) inventory turnover.
B) inventory supply time.
C) fill rate.
D) aggregate orders processed.

Question 70

List and define four information technology supply chain enablers.

Question 71

Who are the upstream and downstream supply chain members?

Question 72

Which of the following is not a key performance indicator used in supply chain management?

A) Fill rate
B) Days of supply
C) Cost of goods
D) Inventory turns

Question 73

A company that produces printer cartridges had cost of goods sold last year of $629,462,423. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year then the number of inventory turns would be

A) 3.7 turns.
B) 2.5 turns.
C) 13.5 turns.
D) 28.3 turns.