Deck 11: Supply Chain Relationship Management

Question 1

As the level of criticality increases, the relationship between buyer and supplier becomes more:

A) Transactional
B) Contractual
C) Unbalanced
D) Relational
E) a and d

Answer 1

D

Question 2

An _______________ is the most comprehensive and customized buyer-supplier relationship.

A) Non-strategic transactional
B) Partnership
C) Alliance
D) Contractual
E) None of the above

Answer 2

C

Question 3

CPFR is an example of __________ interdependence in a relationship.

A) Sequential
B) Mutual
C) Reciprocal
D) Transactional
E) Contractual

Answer 3

C

Question 4

Trust-based relationships can improve performance for the following reasons:

A) Sharing joint objectives
B) Coordination is easier to implement
C) Elimination of duplicate efforts
D) All of the above
E) None of the above

Question 5

If a company outsources all of its manufacturing to a supplier, that relationship would have a ______ level of scope.

A) Low
B) Medium
C) High

Question 6

The following attributes are important to the success of a trust-based relationship between parties:

A) Low visibility
B) Equity
C) Commitment
D) Limited information sharing
E) b and c

Question 7

A large cope of tasks provided by a SCM partner can be beneficial because it allows a company to focus on its ___________:

A) Profitability
B) Customers
C) Suppliers
D) Core competencies
E) None of the above

Question 8

When scope and criticality are low, the type of relationship would be:

A) Non-strategic transactional
B) Partnership
C) Alliance
D) Contractual
E) None of the above

Question 9

A factor that typically determines the scope of a buyer-supplier relationship is:

A) Cost
B) Quality
C) Degree of customization
D) Lead time
E) Profitability

Question 10

In a relationship where scope is high but criticality is low, the relationship would be categorized as:

A) Non-strategic transactional
B) Partnership
C) Alliance
D) Contractual
E) None of the above

Question 11

__________ interdependence in a trust-based relationship is more likely to result in greater profitability for all SCM partners.

A) Sequential
B) Mutual
C) Reciprocal
D) Transactional
E) Contractual

Question 12

SCM relationships that do not require significant management are:

A) Alliances
B) Partnerships
C) Non-strategic Transactions
D) Strategic
E) None of the above

Question 13

When a supplier is the only source of a component or service, it would have a high level of ________ to the buyer.

A) Scope
B) Profitability
C) Criticality
D) Proximity
E) All of the above

Question 14

One of the biggest problems that arises in SCM relationship management is:

A) Profit sharing
B) Visibility
C) Coordination
D) Conflict management
E) Contract management

Question 15

When the component being supplied is low in scope yet critical to the manufacturing of a product, the relationship would be categorized as:

A) Non-strategic transactional
B) Partnership
C) Alliance
D) Contractual
E) None of the above

Question 16

When building trust between supply chain partners, typically the initial step is to establish a:

A) Relationship
B) Partnership
C) Contractual agreement
D) Alliance
E) None of the above

Question 17

______________ is the degree of responsibility assigned to a supplier.

A) Criticality
B) Visibility
C) Dependency
D) Scope
E) a and b

Question 18

Power-based relationships between buyer and supplier can result in:

A) Shared objectives
B) Information sharing
C) Decreased profitability
D) Greater coordination
E) None of the above

Question 19

Because of its overlay across all supply chain functions____________ is the most important aspect of SCM.

A) Operations
B) Relationship management
C) Marketing
D) CPFR
E) Six Sigma

Question 20

The first step in developing a trust-based relationship between buyer and supplier is:

A) Identify operational roles
B) Create a contract
C) Design a conflict resolution process
D) Assess the relationship
E) None of the above

Question 21

When a supply chain member encompasses small scope, the risks of that relationship are small.

Question 22

As criticality of the supplier relationship increases, the relationship becomes more contractual.

Question 23

The need to coordinate and collaborate across global supply chains makes relationship management one of the most important aspects of SCM.

Question 24

The global nature of SCM relationships, with different cultures, can create _______ conflict between SCM partners.

A) Relational
B) Data
C) Interest
D) Structural
E) Value

Question 25

In a contractual relationship, scope is high and criticality is low.

Question 26

The most informal and inexpensive dispute resolution procedure is:

A) Litigation
B) Arbitration
C) Mediation
D) Negotiation
E) Segmentation

Question 27

Transactional relationships require significant relationship management.

Question 28

The greater the criticality of a supplier relationship, the smaller the risk.

Question 29

Just-in-time relationships are often characterized as partnerships.

Question 30

_______ is an example of an adversarial negotiating tactic.

A) Listening
B) Inventing
C) Anchoring
D) Asking
E) b and c

Question 31

An example of a problem solving tactic used in negotiations is:

A) Inventing
B) Referencing
C) Anchoring
D) Recipricity
E) a and b

Question 32

Criticality refers to the degree of responsibility assigned to a supplier.

Question 33

All SCM relationships should be treated in a similar manner.

Question 34

SCM is primarily about the management of suppliers across complex networks of companies.

Question 35

Unequal power and authority in SCM relationships can be a source of _________ conflict.

A) Relational
B) Data
C) Interest
D) Structural
E) Value

Question 36

For a supplier that provides a commodity product, relationship management can be minimal.

Question 37

Poor communication has the potential to cause failure in a supply chain.

Question 38

Scope refers to the degree of responsibility assigned to a supplier.

Question 39

Companies should segment relationships across the supply chain to determine necessary levels of management.

Question 40

Scope and criticality are the two defining dimensions of supply chain relationships.

Question 41

List and describe the six steps in developing a Keiretsu supplier partnering model.

Question 42

In SCM relationships, the most effective and fair division of power is an equal 50-50 split.

Question 43

In effective negotiations, both adversarial and problem-solving tactics may be appropriate and effective.

Question 44

Companies should strive to establish multiple alliances because close relationships are always beneficial.

Question 45

The development of joint objectives is a benefit of power-based relationships.

Question 46

The keiretsu concept is a strategy to diffuse power differentials in a relationship and allows all parties to grow and prosper.

Question 47

For companies in an alliance relationship, it is not necessary to have dispute resolution procedures in place.

Question 48

When resolving a conflict through mediation, the parties involved retain significant control of the resolution process.

Question 49

Leverage refers to the amount of bargaining power in a negotiation strategy.

Question 50

Describe and provide an example of the two key dimensions that differentiate and define how supply chain relationships are managed.

Question 51

When considering the negotiator's dilemma, distributive opportunities are mutually beneficial.

Question 52

Alliances typically involve products that are highly customized and processes that require flexibility to business needs of the client/customer.

Question 53

A CPFR program is a good example of sequential operational roles and processes.

Question 54

Litigation is the most inexpensive, quick, and amicable conflict resolution strategy.

Question 55

The most comprehensive buyer-supplier relationship is a partnership.

Question 56

In trust-based relationships, competition between companies typically exists.

Question 57

When designing and assessing a trust-based relationship, equity is a key component.