Deck 3: Network and System Design

Question 1

Designing a competitive supply chain network is increasingly challenging because of:

A) Increasing complexity and product proliferation
B) Vertical integration
C) Outsourcing
D) Alliance development
E) All of the above

Answer 1

A

Question 2

Information technology design enables:

A) Value-segmenting
B) Data sharing and communication
C) Theory of Constraints
D) ERP implementation
E) a and c

Answer 2

B

Question 3

The relationship view of process management seeks to:

A) Enable/enhance coordination between supply chain partners
B) Reduce costs across the supply chain
C) Define how goods and services will be produced
D) Utilize defined cost metrics
E) All of the above

Answer 3

A

Question 4

Variation is a challenge because it adds ________ and _______ to a process:

A) Demand and supply
B) Uncertainty and visibility
C) Flexibility and visibility
D) Complexity and uncertainty
E) None of the above

Question 5

One element of supply chain network structure includes:

A) Number of companies in the supply chain
B) Structural dimensions
C) Vertical integration
D) Supplier management
E) a and b

Question 6

A high-volume, low variability demand business requires which type of supply chain structure:

A) Flexibility
B) Cost-efficient
C) Segmented
D) Responsive
E) a and b

Question 7

__________ is a strategy for managing increased supply chain complexity.

A) Outsourcing
B) Segmentation
C) ERP systems
D) Alliance development
E) All of the above

Question 8

One approach to help manage variation is:

A) Eliminate constraints
B) Reduce buffers
C) Reduce capacity
D) Increase complexity
E) Increase process flexibility

Question 9

A motorcycle factory can produce 500 units of product in one day under normal conditions and 800 maximum units with overtime labor. In December, the factory produced 700 units. What was the factory's design capacity utilization in December?

A) 87.5%
B) 95%
C) 160%
D) 100%
E) None of the above

Question 10

A key element that supports supply chain strategy is:

A) Supply chain network design
B) Customization
C) Vertical integration
D) Sustainability
E) None of the above

Question 11

Firm ownership of upstream suppliers is known as:

A) Capacity management
B) Vertical integration
C) Core competencies
D) Outsourcing
E) a and b

Question 12

A process is a set of activities designed to create:

A) An output for the customer
B) Integration
C) Reduced costs
D) Constraints
E) Innovation and experience

Question 13

A motorcycle factory can produce 500 units of product in one day under normal conditions and 800 maximum units with overtime labor. In December, the factory produced 700 units. What was the factory's effective capacity utilization in December?

A) 87.5%
B) 95%
C) 160%
D) 100%
E) None of the above

Question 14

Capacity available under normal conditions is called:

A) Design capacity
B) Effective capacity
C) Overtime capacity
D) Outsourcing capacity
E) None of the above

Question 15

One example of a strategy to manage increased variation is:

A) Inventory buffers
B) Reducing flexibility
C) IT systems
D) Outsourcing
E) a and b

Question 16

A supply chain can be viewed as a system of processes that:

A) Focus on costs
B) Are vertically integrated
C) Cuts across organizations to deliver value
D) Are separate within an organization
E) Eliminate bottlenecks

Question 17

In managing processes, the view that focuses on efficiency is:

A) Operations
B) Distribution
C) Transactional
D) Relationship
E) None of the above

Question 18

__________ refers to the maximum amount of output that can be achieved by a process.

A) Flexibility
B) Variability
C) Network
D) Capacity
E) Reliability

Question 19

Two key aspects of the supply chain network include:

A) Physical structure and management
B) Vertical integration and outsourcing
C) Flexibility and responsiveness
D) IT and suppliers
E) None of the above

Question 20

From TOC, "exploiting the constraint" means to:

A) Define the constraint
B) Eliminate the constraint
C) Find ways to best utilize the constraint
D) Reduce variation
E) None of the above

Question 21

For maximum efficiency, it is enough for companies to coordinate internal functions.

Question 22

The goal of a process is to create a specific output.

Question 23

Business processes are an unstructured collection of activities.

Question 24

The transactional view of SCM processes are based on qualitative metrics.

Question 25

Logistical and resource constraints limit process outputs.

Question 26

Modules that are offered as part of an ERP system include:

A) Manufacturing
B) Finance
C) Human resources
D) Supply chain management
E) All of the above

Question 27

Variability exists in every process but it is not a problem for supply chains.

Question 28

A fundamental principle of the Theory of Constraints (TOC) is that every process has at least one constraint that always must be eliminated entirely from the process.

Question 29

Network design is a key element of supply chain strategy.

Question 30

One of the most important benefits of integrated IT systems is improved _________ across the supply chain:

A) Relationships
B) Sourcing
C) Quality
D) Visibility
E) Cost

Question 31

A system cannot produce any more than the output of its bottleneck.

Question 32

Process outputs can be easily improved only by substituting new inputs.

Question 33

Creating buffers in the supply chain is one way to manage variation.

Question 34

Relationship-focused SCM processes put significant emphasis on the interactions of people and organizations.

Question 35

If a process is managed well it can produce unlimited outputs.

Question 36

The transactional view of SCM processes focuses on making those processes more efficient.

Question 37

The most effective supply chains cut across organizations to deliver customer value.

Question 38

The maximum amount of output that can be delivered by a process is its complexity.

Question 39

Information technology (IT) design enables businesses to manage processes.

Question 40

An effective supply chain should be viewed as a series of separate organizations and functions.

Question 41

A company can gain cost and value advantages by segmenting its supply chains.

Question 42

Describe the three stages of integration within an organization.

Question 43

Describe the premise behind Theory of Constraints (TOC) and how companies would apply TOC to a supply chain.

Question 44

ERP systems are effective because the separate various business processes from each other.

Question 45

The type of product is not overly important in designing a SCM network structure.

Question 46

It is possible for companies to have multiple, different supply chains.

Question 47

Describe how the variation in processes creates challenges for supply chains and provide an example.

Question 48

Vertical integration is the preferred strategy for most companies.

Question 49

Design capacity is the maximum process output that can be produced when using temporary measures to alter the normal state of the process.

Question 50

Information technology is considered a critical enabler of effective supply chains.