Deck 11: Supply Chain Management: You Better Get It Right

Question 1

The CRM component of the distribution element represents an attempt to automate interactions with customers and facilitate the development of sales prospects through software packages.

Answer 1

True

Question 2

In game theory's non-zero-sum model, it is possible to produce win-win scenarios for multiple players.

Answer 2

True

Question 3

Supply chain management is appropriate only for large businesses.

Answer 3

False

Question 4

The existing models of supply chain metrics (SCOR) can handle the most complicated of supply chains.

Question 5

The essence of lean is attempting to eliminate all forms of waste from a production or service system.

Question 6

Free trade advocates that nations lower or eliminate trade barriers and tariffs so that countries might develop some particular competencies so that they can participate in the global economy.

Question 7

Delivery refers to the percentage of orders delivered on or after customer due dates.

Question 8

Consumers expect to be able to buy cell phones with cutting-edge capability at reasonable prices; this results in a great need for new products, which in turn requires a reduction in life cycle development times.

Question 9

Outsourcing is associated only with overseas manufacturing and not with in-house service activities.

Question 10

When looking at the potential suppliers of a business, a firm may be aided by examining those suppliers with some form of certification.

Question 11

Make, advertise, move, store, and buy-these five activities are the core of any supply chain.

Question 12

The supply chain comprises many links, such as links between suppliers that provide inputs, links to manufacturing and service support operations that transform the input into products and services, and links to the distribution and local service providers that localized the product.

Question 13

In essence, supply chain management integrates supply and demand management within and across companies.

Question 14

The process-modeling component of the supply chain operations reference (SCOR) model begins with five essential elements that link together the supply chain: plan, source, make, deliver, and return.

Question 15

The classic example of a zero-sum game is the prisoner's dilemma.

Question 16

Supply chain management success needs new levels of trust and respect for it to function properly in the long run.

Question 17

In a non-zero-sum game, it is possible for all the players to win or for all the players to lose.

Question 18

The total vertical integration approach may work in some industries where firms recognize that it is economically advantageous to outsource noncore activities.

Question 19

If demand decreases at the retail level, the demand will increase further up the supply chain.

Question 20

Win-win scenarios require mutual trust.

Question 21

Suppliers have power when the cost of switching to an alternative supplier is expensive.

Question 22

A program that involves planning and controlling the actions with upstream suppliers including supplier analysis, order execution, payment, and performance monitoring is known as a decision support system.

Question 23

Enterprise resource planning (ERP) coordinates data flows from finance, accounting, and operations to provide management with a seamless overview of the performance of a business.

Question 24

Which of the following is the first element of a supply chain management system?

A) Operations
B) Innovation
C) Distribution
D) Integration
E) Procurement

Question 25

Business process reengineering refers to:

A) a program in which the supervisor and the subordinate sit down and map out the objectives for the subordinate to accomplish in the upcoming year.
B) an organization that is able to adapt to changing situations and pressures; it places a premium on organizations and individuals that can learn from the environment.
C) a program where a business looks at the world leaders in particular processes and attempts to emulate them.
D) a type of organizationalin which people with similar skills are pooled for work assignments.
E) a management program that analyzes the processes of a business and tries to redesign them so that all non-value-added activities are eliminated.

Question 26

Which of the following is a characteristic of the pull philosophy of supply chain management?

A) Producing according to market demand forecast.
B) Forecasting demand in the market.
C) Producing by actual demand.
D) Driving the product out the door.
E) Hoping that the demand forecast was correct.

Question 27

The adoption of a supply chain management perspective poses no risks.

Question 28

Management by objectives refers to:

A) a program in which the supervisor and the subordinate sit down and map out the goals for the subordinate to accomplish in the upcoming year.
B) a management program that analyzes the processes of a business and tries to redesign them so that all non-value-added activities are eliminated.
C) an organization that is able to adapt to changing situations and pressures; it places a premium on organizations and individuals that can learn from the environment.
D) a program where a business looks at the world leaders in particular processes and attempts to emulate them.
E) a type of organizational in which people with similar skills are pooled for work assignments.

Question 29

Cost savings brought about by supply chain management systems can produce amplified improvements in cash flow.

Question 30

The procurement element of a supply chain management system involves:

A) purchase of components, supplier selection, and strategic alliances.
B) coordination, measurement, and control across the entire supply chain.
C) transportation, CRM, and logistics parties.
D) lean, inventory control, and product quality.
E) sales promotion, events, PR, and publicity.

Question 31

Benchmarking is:

A) a program in which the supervisor and the subordinate sit down and map out the objectives for the subordinate to accomplish in the upcoming year.
B) a management program that analyzes the processes of a business and tries to redesign them so that all non-value-added activities are eliminated.
C) an organization that is able to adapt to changing situations and pressures; it places a premium on organizations and individuals that can learn from the environment.
D) a program where a business looks at the world leaders in particular processes and attempts to emulate them.
E) a type of organizational in which people with similar skills are pooled for work assignments.

Question 32

Businesses must consider the relative power of both their suppliers and their customers.

Question 33

A program that allows for data manipulation or the use of analytical modeling tools to provide a better decision-making environment, which may involve the use of mathematical programming models to optimize decisions, is known as a supplier relationship management program.

Question 34

The advent of cloud computing can make supply chain management systems available for small businesses.

Question 35

A learning organization is:

A) a program in which the supervisor and the subordinate sit down and map out the objectives for the subordinate to accomplish in the upcoming year.
B) a management program that analyzes the processes of a business and tries to redesign them so that all non-value-added activities are eliminated.
C) an organization that is able to adapt to changing situations and pressures; it places a premium on organizations and individuals that can gain knowledge from the environment.
D) a program where a business looks at the world leaders in particular processes and attempts to emulate them.
E) a type of organizational in which people with similar skills are pooled for work assignments.

Question 36

Cloud-based software provides several substantial benefits to small businesses: lowers software and ware costs, installation is significantly easier, maintenance and training costs are lower, and free upgrades may sometimes be available.

Question 37

Which of the following is a feature of supply chain management?

A) It is limited to the flow of goods and materials.
B) It does not require information flows across the entire chain.
C) It does not require consideration of financial flows.
D) It requires organizations to overcome myopia of just being concerned with their immediate suppliers and customers.
E) It requires organizations to limit the flow of communication and information.

Question 38

Supply chain management requires several types of software packages and the need to successfully integrate them.

Question 39

Which of the following elements of supply chain management system is associated with a firm transforming its raw inputs into goods and services?

A) Innovation
B) Distribution
C) Integration
D) Operations
E) Procurement

Question 40

The operations element of a supply chain management system involves:

A) purchase of components, supplier selection, and strategic alliances.
B) coordination, measurement, and control across the entire supply chain.
C) transportation, CRM, and logistics parties.
D) sales promotion, events, PR, and publicity.
E) lean, inventory control, and product quality.

Question 41

Which of the following defines materials requirement planning?

A) An approach to inventory that seeks to eliminate excess waste and reduce inventory to a minimal level.
B) A series of techniques designed to eliminate waste from manufacturing and service processes and provide greater customer value.
C) The active management of the distribution of materials throughout a system.
D) A service approach that hopes to build a long-term and sustainable relationship with customers that has value for both the customer and the company.
E) A computerized inventory control system that schedules the production of goods and takes into consideration the available and the required inventory.

Question 42

Which of the following elements of supply chain management system deals with demand management?

A) Innovation
B) Operations
C) Distribution
D) Integration
E) Procurement

Question 43

The integration element of a supply chain management system involves:

A) purchase of components, supplier selection, and strategic alliances.
B) coordination, measurement, and control across the entire supply chain.
C) transportation, CRM, and logistics parties.
D) lean, inventory control, and product quality.
E) sales promotion, events, PR, and publicity.

Question 44

Fourth-party logistics providers offer services that:

A) synthesize a variety of services, including the shipping of goods, warehousing, inventory management, and packaging.
B) do not require the provider to own shipping assets or warehouses.
C) provide the means of transportation, including shipping freight by air, rail, or truck.
D) specialize in offering an array of services to simplify transportation.
E) are associated with facilitating customs operation and the resolution of problems associated with international transportation.

Question 45

Which of the following defines logistics?

A) An approach to inventory that seeks to eliminate excess waste and reduce inventory to a minimal level.
B) A computerized inventory control system that schedules the production of goods and takes into consideration the available and the required inventory.
C) The active management of the distribution of materials throughout a system.
D) A series of techniques designed to eliminate waste from manufacturing and service processes and provide greater customer value.
E) A service approach that hopes to build a long-term and sustainable relationship with customers that has value for both the customer and the company.

Question 46

Cash-to-cash cycle time refers to:

A) the amount of time required to handle a significant ramp up in production.
B) the amount of time needed for turning a firm's inputs into goods and services.
C) the time between when an organization purchases raw materials and when they are paid by the customer.
D) the amount of time required for maximizing the benefits from successful supply chain management.
E) the amount of time needed to eliminate excess waste and reduce inventory to a minimal level.

Question 47

A win-win game is a game:

A) in which the total benefits for all participants total zero.
B) which helps people to learn about themselves, interpersonal relationships, and how groups function from a group dynamics or social psychological point of view.
C) in which one participant's gains result only from another participant's equivalent losses.
D) which is designed in a way that all participants can profit from it in one way or the other.
E) in which the wealth is just shifted from one to another.

Question 48

Total supply chain costs refer to:

A) all the operational expenditures of a cost associated with the requisite information systems.
B) a weighted average of a firm's debt and equity, where equity directly relates to a firm's stock.
C) the percentage of orders delivered on or before customer due dates.
D) the selling price of product times the number of units sold.
E) those costs that change across the volume of production.

Question 49

Which of the following defines CRM?

A) An approach to inventory that seeks to eliminate excess waste and reduce inventory to a minimal level.
B) A computerized inventory control system that schedules the production of goods and takes into consideration the available and the required inventory.
C) The active management of the distribution of materials throughout a system.
D) A series of techniques designed to eliminate waste from manufacturing and service processes and provide greater customer value.
E) A service approach that hopes to build a long-term and sustainable relationship with customers that has value for both the customer and the company.

Question 50

Second-party logistics providers consist of those businesses that:

A) wish to ship goods to a particular location.
B) provide the means of transportation, including shipping freight.
C) specialize in offering an array of services to simplify transportation.
D) offer services associated with facilitating customs operation and the resolution of problems associated with international transportation.
E) function as consultants for supply chain management logistics issues.

Question 51

Fourth-party logistics providers consist of those businesses that:

A) function as consultants for supply chain management logistics issues.
B) wish to ship goods to a particular location.
C) provide the means of transportation, including shipping freight.
D) specialize in offering an array of services to simplify transportation.
E) offer services associated with facilitating customs operation and the resolution of problems associated with international transportation.

Question 52

An enterprise resource planning (ERP) system:

A) seeks to eliminate excess waste and reduce inventory to a minimal level.
B) schedules the production of goods and takes into consideration the available and the required inventory.
C) eliminates waste from manufacturing and service processes and provides greater customer value.
D) integrates multiple business functions from purchasing to sales, billings, accounting records, and payroll.
E) hopes to build a long-term and sustainable relationship with customers that has value for both the customer and the company.

Question 53

Which of the following defines a just-in-time program?

A) An approach to inventory that seeks to eliminate excess waste and reduce inventory to a minimal level.
B) A computerized inventory control system that schedules the production of goods and takes into consideration the available and the required inventory.
C) A series of techniques designed to eliminate waste from manufacturing and service processes and provide greater customer value.
D) The active management of the distribution of materials throughout a system.
E) A service approach that hopes to build a long-term and sustainable relationship with customers that has value for both the customer and the company.

Question 54

The distribution element of a supply chain management system involves:

A) purchase of components, supplier selection, and strategic alliances.
B) sales promotion, events, PR, and publicity.
C) transportation, CRM, and logistics parties.
D) lean, inventory control, and product quality.
E) coordination, measurement, and control across the entire supply chain.

Question 55

First-party logistics providers consist of those businesses that:

A) provide the means of transportation, including shipping freight.
B) specialize in offering an array of services to simplify transportation.
C) wish to ship goods to a particular location.
D) offer services associated with facilitating customs operation and the resolution of problems associated with international transportation.
E) function as consultants for supply chain management logistics issues.

Question 56

Which of the following elements of supply chain management system involves the coordination of all activities across the entire supply chain?

A) Operations
B) Distribution
C) Integration
D) Procurement
E) Innovation

Question 57

Which of the following elements of supply chain management system deals with activities such as logistics and warehousing?

A) Distribution
B) Operations
C) Integration
D) Procurement
E) Innovation

Question 58

The total benefits for all participants always total zero in a:

A) win-win scenario.
B) zero-sum game.
C) group-dynamic game.
D) non-zero sum game.
E) no deal game.

Question 59

Third-party logistics providers consist of those businesses that:

A) wish to ship goods to a particular location.
B) provide the means of transportation, including shipping freight.
C) specialize in offering an array of services to simplify transportation.
D) simply provide consulting services; they do not own shipping assets or warehouses.
E) function as consultants for supply chain management logistics issues.

Question 60

Which of the following defines lean methodologies?

A) An approach to inventory that seeks to eliminate excess waste and reduce inventory to a minimal level.
B) A computerized inventory control system that schedules the production of goods and takes into consideration the available and the required inventory.
C) The active management of the distribution of materials throughout a system.
D) A series of techniques designed to eliminate waste from manufacturing and service processes and provide greater customer value.
E) A service approach that hopes to build a long-term and sustainable relationship with customers that has value for both the customer and the company.

Question 61

Flexibility refers to:

A) all the operational expenditures of a cost associated with the requisite information systems.
B) a weighted average of a firm's debt and equity, where equity directly relates to a firm's stock.
C) the percentage of orders delivered on or before customer due dates.
D) the selling price of product times the number of units sold.
E) the amount of time required to handle a significant ramp up in production.

Question 62

The globally recognized _____ program is ISO 9000, a program designed to ensure that suppliers are fully committed to quality production.

Question 63

NAFTA stands for the _____ and encompasses Canada, the United States, and Mexico.

Question 64

A(n) _____ system can successfully integrate information across the entire supply chain. An ERP system is an integrated set of computer programs that brings information about a firm's accounting, financial, sales, and operations into a common database.

Question 65

_____ refers to the percentage of orders delivered on or before customer due dates.

Question 66

In the process-modeling component of a SCOR model, "deliver" refers to:

A) those processes associated with the design of the supply chain, planning activities associated with the other four processes, and the implementation of all these plans.
B) the ordering and the acquisition of goods and services to meet anticipated demand, including purchase orders, scheduling, receipts, and storage.
C) those processes used to create the product or the service, including, for example, make to stock, make to order, or engineer to order.
D) those processes associated with the development and the fulfillment of customer orders, including scheduling, packaging, and shipping all orders.
E) refers to those processes associated with the return of finished products by a customer.

Question 67

_____ management is not limited to the flow of goods and materials.

Question 68

The _____ model uses three major components: process modeling, performance measurement, and the determination of best practices.

Question 69

_____ is a phrase that refers to the low cost of products produced in China given its low wages.

Question 70

Supply chain management needs _____ to evaluate its performance.

Question 71

The SCOR model is a comprehensive series of metrics to evaluate:

A) the percentage of orders delivered on or before customer due dates.
B) those costs that change across the volume of production.
C) multiple business functions from purchasing to sales, billings, accounting records, and payroll.
D) the performance of a supply chain's operations.
E) waste from manufacturing and service processes.

Question 72

The _____ involves the integration of goods, finances, and information from the initial supplier to the final customer.

Question 73

The _____ effect recognizes that the amplitude of inventory swings increases as one travels up the supply chain because each element of the supply chain is a relatively narrow focus of just trying to meet the needs of their customers.

Question 74

_____ refers to the ability to electronically transfer large "packets" of data across various locations and programs.

Question 75

The active management of the distribution of materials throughout a system is known as _____.

Question 76

In the process-modeling component of a SCOR model, "source" refers to:

A) those processes associated with the design of the supply chain, planning activities associated with the other four processes, and the implementation of all these plans.
B) the ordering and the acquisition of goods and services to meet anticipated demand, including purchase orders, scheduling, receipts, and storage.
C) those processes used to create the product or the service, including, for example, make to stock, make to order, or engineer to order.
D) those processes associated with the development and the fulfillment of customer orders, including scheduling, packaging, and shipping all orders.
E) refers to those processes associated with the return of finished products by a customer.

Question 77

_____ games are those games that potentially have net results other than zero.

Question 78

_____ is a branch of mathematics. Broadly stated, it examines competitive situations in which one's outcomes may be influenced or dictated by the decisions of other players.

Question 79

Which of the following enables businesses to benchmark their supply chain management systems?

A) SCOR model
B) Financial leverage ratio
C) Lean methodology
D) Managerial accounting system
E) Liquidity ratio

Question 80

As outsourcing became more popular, businesses had to develop working relationships with their _____ and their customers.