Deck 14: Supply Chain Management

Question 1

As firms become increasingly supply-chain-oriented,they develop managements practices that are consistent with a systems approach.

Answer 1

True

Question 2

The demand management process seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level of creating demand-related plans of action prior to actual customer purchasing behavior.

Answer 2

True

Question 3

Zambelli International Fireworks uses an accounting method that assesses the costs associated with each supply chain activity,which is known as base-line costing.

Answer 3

False
This is referred to as activity-based costing (ABC).

Question 4

Companies that use supply chain management techniques typically also use a push promotional strategy.

Question 5

EDI is often used to replace paper documents with electronic documents containing the same information.

Question 6

The lean supply chain management strategy embraces removal of waste from the supply chain system in whatever form it is found.

Question 7

High role specificity means each firm in the supply chain has clarity in terms of knowing which firm is the leader,which firms are the followers,and which responsibilities are assigned to each firm.

Question 8

It is illegal for companies to knowingly provide better service to their most profitable customers.

Question 9

Products and marketplaces differ substantially in their core characteristics so supply chain management strategies should be selected according to the situation at hand.

Question 10

The activities associated with the returns management process are rarely as important as other supply chain activities.

Question 11

Supplier integration requires the supply chain partners interact in ways that minimize waste and redundancy.

Question 12

Managing inventory from the supplier to the manufacturer is called distribution resource planning (DRP).

Question 13

Supply chain management is a key means of differentiation for a firm and a critical component in marketing and corporate strategy.

Question 14

The goal of a materials-handling system is to handle products as infrequently as possible.

Question 15

The six criteria important in selecting a transportation mode are relative cost,transit time,reliability,capability,accessibility,and traceability.

Question 16

Vertical position refers to the position of a firm,relative to other firms,along the supply chain.

Question 17

Air transportation is faster,cheaper,and more dependable than rail transportation.

Question 18

Supply chains cannot operate efficiently unless all members of the supply chain are equally involved in all eight critical business processes.

Question 19

Supply chain management is completely producer-driven.

Question 20

A successful apparel company found that significant demand existed among buyers who needed to place a number of small orders rather than a few big orders.The company most likely succeeded because of the use of agile supply chain management strategies.

Question 21

One disadvantage of the use of RFID tags is increased inventory management costs.

Question 22

The ABC Approach is a measurement system used to evaluate overall supply chain performance.

Question 23

Manufacturers who require suppliers to meet certain environmental standards are implementing green supply chain management.

Question 24

Digital distribution is a distribution technique that includes any kind of product or service that can be distributed electronically.

Question 25

Traceability with respect to transporting modes refers to the relative ease with which a shipment can be located and transferred.

Question 26

Which of the following is a key principle of supply chain management that means multiple firms work together to perform tasks as a single unified system,rather than as several individual companies acting in isolation?

A) Pareto principle
B) 80/20 principle
C) systems approach
D) win-win approach
E) integrative approach

Question 27

Customer satisfaction ratings,orders picked from the warehouse per hour,and the ratio of operating assets to income are examples of metrics that can be used to repeatedly assess supply-chain performance.

Question 28

The connected chain of all of the business entities,both internal and external to the company,that perform or support the logistics function is known as the:

A) channel of distribution
B) intermediary link
C) physical distribution integration
D) reseller network
E) supply chain

Question 29

Another name for outsourcing is contract logistics.

Question 30

One of the most critical global supply issues for importers of any size is coping with the legalities of trade in other countries.

Question 31

_____ occurs when all the firms and business units participating in the supply chain appear as though they are reading from the same script.

A) Strategic channel operation
B) Supply chain integration
C) Strategic MRP
D) Demand management
E) EDI (Extensive distribution integration

Question 32

Global supply chains are particularly at risk regarding supply chain security.

Question 33

_____ coordinates and integrates all of the activities performed by channel members into a seamless process,from the source to the point of consumption,resulting in enhanced customer and economic value.

A) Yield management
B) Channel power
C) Materials handling
D) Supply chain management
E) Physical distribution

Question 34

All of the following are benefits of supply chain management EXCEPT:

A) increases flexibility of supply chain activities
B) improves customer service
C) reduces supply chain costs
D) decreases cash flow
E) key means of differentiation for a firm

Question 35

Both water transportation costs and transit speed are low when compared with any other transportation mode.

Question 36

All of the following accurately describe supply chain management EXCEPT:

A) physical flow process
B) customer-driven
C) provides enhanced customer and economic value
D) plays the role of communicator of customer demand
E) relies on a "push" strategy

Question 37

When the Boeing Co.announced it would delay the introduction of its new 787,the CEO blamed the problem on the company's supply chain.Airplanes use thousands of individual parts and in an attempt to relieve the smaller,individual supply chain quandary,Boeing used major suppliers to construct large pieces of the plane.Boeing would have benefited from more _____ integration.

A) channel
B) supply chain
C) MRP
D) functional
E) tactical distribution

Question 38

Peachtree Windows does not make a window until an order is received.It can promise delivery in five working days because of the excellent relationships it has established with its suppliers.The partnering relationship that Peachtree Windows has established with its suppliers indicates the use of:

A) supply chain management
B) yield management
C) channel networks
D) horizontal marketing channels
E) intensive distribution strategy

Question 39

Supply chain managers are responsible for all of the following EXCEPT:

A) the management of information that flows through the supply chain
B) auditing the accounting practices of suppliers to ensure compliance with ABC accounting
C) coordinating the relationships between the company and its external partners
D) coordinating customer service activities
E) coordinating the sourcing and procurement of raw materials

Question 40

A large automotive after-market business wanted to improve its current situation,which is characterized by excessive inventory,incomplete information,high logistics costs,slow reactions to environmental change,and lost profits at the retail level.Would supply chain management be of any help to the business?

A) Yes, supply chain management is designed to coordinate and integrate all the activities from raw materials to product consumption.
B) No, supply chain management is only applicable to distribution strategies for products being sold to the consumer market.
C) Yes, supply chain management would be very useful because it relies so heavily on benchmarking.
D) Yes, supply chain management would alleviate all channel conflict.
E) No, supply chain management requires an expensive investment of time and resources to make it worthwhile.

Question 41

The process of ABC segmentation is a critical process if _____ integration is to be successful.

A) customer
B) social
C) functional
D) operational
E) internal operations

Question 42

_____ is (are)composed of bundles of interconnected activities that stretch across firms in the supply chain.

A) ABC segmentation strategies
B) Activity-based costing
C) Customer relationship management
D) Business processes
E) Customer service activities

Question 43

_____ integration is a competency that enables firms to offer long-lasting,distinctive,value-added offerings to those customers who represent the greatest value to the firm or supply chain.

A) Customer
B) Social
C) Measurement
D) Departmental
E) Internal operations

Question 44

All of the following have been identified as helpful in generating measurement integration across the supply chain EXCEPT:

A) functional assessment
B) resource-based perspective
C) activity-based costing (ABC)
D) total cost perspective
E) agreed-upon metrics

Question 45

Sobha Developers is the only company in India and possibly the world that manufactures almost everything that goes into its buildings.It is this backward integration that gives Sobha absolute control over quality at every level.Sobha has the highest possible _____ integration.

A) relationship
B) social
C) functional
D) operational
E) internal operations

Question 46

Which of the following is an example of one of the six types of integration that are sought by firms interested in providing top-level service to their customers?

A) strategic integration
B) hierarchical integration
C) internal operations integration
D) global integration
E) all of the above

Question 47

By achieving _____ integration across their supply chains,firms can gain the information needed to execute short-term and long-term planning,and thereby make better operational decisions.

A) relationship
B) social
C) functional
D) technology and planning
E) internal operations

Question 48

_____ integration requires firms within a supply chain to link seamlessly so that they can streamline work processes and thereby provide smooth,high-quality customer experiences.

A) Relationship
B) Social
C) Functional
D) Internal operations
E) Material and service supplier

Question 49

The standards set by measuring the best,quickest,and most efficient work practices are called:

A) benchmarks
B) zero points
C) reference points
D) variants
E) process norms

Question 50

_____ integration is the ability of two or more companies to develop social connections that serve to guide their interactions when working together.

A) Relationship
B) Social
C) Customer
D) Materials and service supplier
E) Technology and planning integration

Question 51

Through the use of automatic shipping notices,Ace Hardware is effective at removing unnecessary costs from its supply chain.According to a vice-president of inventory for the retailer,"Information gathering that used to take three or four phone calls now is available immediately." This is an example of the use of _____ integration.

A) relationship
B) social
C) functional
D) technology and planning
E) internal operations

Question 52

All of the following are types of integration sought by firms interested in providing top-level service to customers EXCEPT:

A) relationship integration
B) measurement integration
C) customer integration
D) production integration
E) technology and planning integration

Question 53

All of the following activity groups are related closely to internal operations integration success EXCEPT:

A) the use of cross-functional teams
B) activity-based costing
C) standardization of work processes across work groups
D) simplification of all work processes as much as possible
E) a reconfiguration of the physical assets the company owns

Question 54

Food producers love big boxes because they serve as billboards on store shelves.Wal-Mart wants to change this practice and promises suppliers that their shelf spaces won't shrink even if their boxes do.As a result,some of its vendors have reengineered their packaging.This is an example of _____ integration.

A) relationship
B) social
C) functional
D) operational
E) materials and service supplier

Question 55

Wal-Mart,Inc.has selected nine Bell Buckle products from two of the Company's award-winning brands for placement in its Dallas regional division stores.Because Wal-Mart is the leader,Bell Buckle and its distributors are the follower,and each knows its role(s),this is an example of _____ within a channel.

A) a hierarchical relationship
B) role complexity
C) role specificity
D) task ambiguity
E) a functional relationship

Question 56

The vice president of logistics for a salty-snack food manufacturer applied activity-based costing to convenience stores and found it a very cost-effective technique for making sure that the right products were on the shelves when consumers wanted them.In other words,he used _____ integration to make more effective operational decisions.

A) relationship
B) social
C) functional
D) planning
E) measurement

Question 57

Which of the following assists supply chain members in achieving measurement integration by assessing the costs associated with each supply chain activity?

A) electronic data interchange
B) role specificity
C) benchmarking
D) ABC segmentation
E) activity-based costing

Question 58

Which type of integration implies the performance assessment of the supply chain should be taken as a whole while also holding each member of the supply chain accountable for meeting its own goals?

A) accountability
B) benchmarking
C) social
D) planning
E) measurement

Question 59

When each firm in a supply chain has clarity in terms of knowing which firm is the leader,which are the followers,and which responsibilities are assigned to each firm,_____ is (are)evident.

A) role specificity
B) role complexity
C) role ambiguity
D) functional relationships
E) role hierarchy

Question 60

Nabisco has reduced product inventory requirements from 49 days to 22 days.This frees up cash and warehouse space,adding flexibility to the plant.This seamless linking of Nabisco's strategic business units is accomplished through _____ integration.

A) relationship
B) social
C) functional
D) hierarchical
E) internal operations

Question 61

Mattel,the world's biggest toymaker ordered 18 million toys made in China to be recalled because of hazards such as the use of lead paint.Mattel's _____ process allowed it to handle the product recall efficiently.

A) order fulfillment
B) returns management
C) product commercialization
D) demand management
E) product fulfillment

Question 62

A firm that specialize in the order fulfillment process is called a(n):

A) third party logistics firm (3PL)
B) intermediate distributor
C) industrial distributor
D) merchant wholesaler
E) ABC firm

Question 63

Which business process ensures that firms in the supply chain have the resources they need?

A) manufacturing flow management
B) customer service management
C) product development and commercialization
D) order fulfillment
E) demand management

Question 64

Of the eight critical business processes on which supply chain managers must focus,the _____ process presents a multi-company,unified response system to the customer whenever complaints,concerns,questions,or comments are voiced.

A) manufacturing flow management
B) customer service management
C) product development and commercialization
D) order fulfillment
E) demand management

Question 65

Which supply chain strategy allows the company to take advantage of many of the benefits of lean supply chain management while still providing the agility that makes customer experiences more desirable?

A) static supply chain management
B) reactive supply chain management
C) flexible supply chain management
D) proactive supply chain management
E) Leagile supply chain management

Question 66

The order fulfillment process involves all of the following activities EXCEPT:

A) order filling and delivery
B) order processing and document handling
C) materials handling
D) updating account status
E) order generation

Question 67

By working closely with its suppliers and listening to its customers,Target has improved the service encounter to a level that was not thought possible in mass retailing.This is an example of which of the eight critical processes performed by supply managers?

A) manufacturing flow management
B) customer service management
C) product development and commercialization
D) order fulfillment
E) demand management

Question 68

Which of the following technology is an automatic identification method that works with scanned bar codes to identify products?

A) radio-frequency identification (RFID)
B) third party logistic identifiers (3PL)
C) global positioning system (GPS)
D) electronic data interchange (EDI)
E) network identification systems (NIS)

Question 69

Arrow Electronics serves as a supply channel partner for more than 600 suppliers and 150,000 original equipment manufacturers,contract manufacturers,and commercial customers.Arrow works with its supply chain partners to eliminate waste in whatever form it may be found.Which of the following supply chain strategies has Arrow embraced in order to help its customers and suppliers?

A) lean supply chain management
B) reactive supply chain management
C) agile supply chain management
D) proactive supply chain management
E) Leagile supply chain management

Question 70

Which supply chain strategy focuses primarily on the ability of the firm to fulfill customer demand,even if this means somewhat higher costs?

A) lean supply chain management
B) reactive supply chain management
C) agile supply chain management
D) proactive supply chain management
E) Leagile supply chain management

Question 71

The amount of time between order placement,receipt of the customer's payment,and order shipment is known as the:

A) 3PL cycle
B) product life cycle
C) purchase cycle
D) order-to-cash cycle
E) float

Question 72

Specialty Blades designs precision cutting devices for varied applications.On one recent project they worked closely with a medical device company,developing a combination scalpel and stapler that slices tissue very neatly close to the staples,which resulted in less traumatic procedures,and quicker patient recoveries.This is an example of which of the eight critical processes performed by supply chain managers?

A) supplier relationship management
B) customer service management
C) product development and commercialization
D) order fulfillment
E) demand management

Question 73

There are eight critical business processes on which supply chain managers must focus.Which of the following is one of those processes?

A) returns management
B) sales promotion activities
C) distribution intensity
D) public relations activities
E) environmental assessments

Question 74

Of the eight critical business processes on which supply chain managers must focus,which process allows companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or the supply chain?

A) customer relationship management
B) returns management
C) product development and commercialization
D) order fulfillment
E) demand management

Question 75

Which business process supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers?

A) supplier relationship management
B) customer service management
C) product development and commercialization
D) order fulfillment
E) demand management

Question 76

Which supply chain strategy embraces the removal of waste from the supply chain system in whatever form it may be found?

A) lean supply chain management
B) reactive supply chain management
C) agile supply chain management
D) proactive supply chain management
E) Leagile supply chain management

Question 77

In which type of supply chain management strategy is postponement a common occurrence?

A) static supply chain management
B) reactive supply chain management
C) flexible supply chain management
D) proactive supply chain management
E) Leagile supply chain management

Question 78

Spanish clothing retailer Zara transfers twenty product lines a year from concept to shop floor in only four weeks because it is customer-focused,not supplier-focused. Zara is implementing which supply chain management strategy?

A) lean supply chain management
B) reactive supply chain management
C) agile supply chain management
D) proactive supply chain management
E) Leagile supply chain management

Question 79

ProLog is a firm that specializes in warehousing and fulfilling orders for firms as diverse as those supplying parts for manufacturers of complicated missile defense systems to those manufacturing pet care products. Firms contract ProLog to manage part of all of their order fulfillment process. ProLog is an example of a:

A) merchant wholesaler
B) retailer
C) distributor
D) third party logistics firm (3PL)
E) manufacturing flow process manager

Question 80

Which business process is based on the activities involved in customer data collection,forecasting of future demand,synchronization of supply and demand by comparing production capacity to forecasts,and the development of activities to "smooth out" demand?

A) manufacturing flow management
B) customer service management
C) product development and commercialization
D) order fulfillment
E) demand management