Deck 5: The Supply Chain Management Concept

Question 1

An underperforming supply chain is defined as one that exhibits poor service,unproductive assets,or ___________.

A)high variable operating costs
B)outdated information technology
C)high fixed costs
D)transactional exchanges

Answer 1

high variable operating costs

Question 2

Cooperative supply chain relationships developed to enhance the overall business performance of both parties is a definition of ___________.

A)third-party logistics
B)supply chain collaboration
C)leagility
D)relational exchanges

Answer 2

supply chain collaboration

Question 3

Which organizational function is not a focus of the Supply Chain Operations Reference SCOR)Model?

A)marketing
B)logistics
C)operations
D)procurement

Answer 3

marketing

Question 4

The two most prominent SCM process frameworks are the Supply Chain Operations Reference SCOR)Model and the ___________.

A)Supply Chain Efficiency SCE)Model
B)Process Classification Framework PCF)
C)Global Supply Chain Forum GSCF)Model
D)Council of Supply Chain Management Professionals CSCMP)Model

Question 5

An organization's ability to respond to changes in demand with respect to volume and variety refers to ___________.

A)responsiveness
B)leanness
C)agility
D)relevancy

Question 6

The supply chain management concept originated in what discipline?

A)marketing
B)operations
C)logistics
D)production

Question 7

Which of the following is not one of the processes in the Supply Chain Operations Reference SCOR)Model?

A)source
B)plan
C)demand management
D)enable

Question 8

Customer relationship management,supplier relationship management,order fulfillment,and returns management are processes associated with the ___________.

A)Global Supply Chain Forum GSCF)Model
B)Process Classification Framework PCF)
C)Supply Chain Efficiency SCE)Model
D)Supply Chain Operations Reference SCOR)Model

Question 9

What is a perfect order?

A)simultaneous achievement of relevant customer metrics
B)order that arrives on time
C)order that arrives undamaged
D)order that is easy for the receiver to fill

Question 10

Contemporary supply chains are increasingly required to be fast and ___________.

A)lean
B)agile
C)interactive
D)relevant

Question 11

The current Global Supply Chain Forum GSCF)Model identifies ___________ key processes associated with supply chain management.

A)five
B)six
C)seven
D)eight

Question 12

The early to mid-___________ witnessed a growing recognition that there could be value in coordinating various business functions within and across organizations.

A)1960s
B)1970s
C)1980s
D)1990s

Question 13

___________ refers to focusing part of one's supply chain on a timely response to fluctuating customer orders and/or product variety and another part of the supply chain on leveling out the planning requirements to smooth production output.

A)Supply chain management
B)Flexibility
C)Responsiveness
D)Leagility

Question 14

Although nearly any organization can be part of a supply chain,supply chain management requires SCM)___________.

A)the involvement of third-party logistics companies
B)the participation of world-class organizations
C)at least one organization to be a multinational company
D)companies to adopt an enterprise-to-enterprise point of view

Question 15

What concept can be viewed as a combination of processes,functions,activities,relationships,and pathways along which products,services,information,and financial transactions move in and between enterprises from original producer to ultimate end user or consumer?

A)logistics
B)supply chain
C)marketing channel
D)interorganizational coordination

Question 16

Source,plan,make,and enable are processes associated with the ___________.

A)Global Supply Chain Forum GSCF)Model
B)Supply Chain Operations Reference SCOR)Model
C)Process Classification Framework PCF)
D)Supply Chain Efficiency SCE)Model

Question 17

Which of the following is not an attribute of relational exchanges?

A)trust
B)dependence
C)joint investment
D)opportunism

Question 18

Which of the following is not a way to reduce inventory levels?

A)smaller,more frequent orders
B)use of premium transportation
C)supply-push replenishment
D)elimination of slower-moving products

Question 19

What concept refers to the variability in demand orders among supply chain participants?

A)unpredictability
B)bullwhip effect
C)order fluctuation
D)agile supply chain

Question 20

Which of the following is not a potential outcome from a supply chain's failure to be fast and agile?

A)dissatisfied customers
B)reduced profitability
C)decreased market share
D)increased stock price

Question 21

___________ collaborations offer the best opportunity for improving supply chain performance.

A)Transactional
B)Tactical information sharing
C)Strategic
D)Operational

Question 22

Which concept refers to the situation in which one organization owns multiple participants in the supply chain?

A)supply chain management
B)vertical integration
C)horizontal integration
D)intensive distribution

Question 23

According to the text,___________ has been at the center of the changes taking place that affect the supply chain.

A)economic malaise
B)logistics
C)customer power
D)technology

Question 24

Which of the following is not a term for a long-term mutually beneficial supply chain agreement?

A)partnerships
B)third-party arrangements
C)coopetition
D)contract logistics

Question 25

In an)___________ approach,all relevant software applications are provided by a single vendor.

A)single integrator
B)best-of-breed approach
C)customer-centric
D)information outsourcing

Question 26

A recent study of senior executives found that ___________ percent within 2 percent)had implemented analytics focused on supply chain activities.

A)35
B)25
C)15
D)5

Question 27

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

A)regulatory and political considerations
B)lack of top management commitment
C)reluctance to share,or use,relevant data
D)use of supply chain facilitators

Question 28

Supply chain collaboration can be classified as transactional,strategic,or ___________ in nature.

A)operational
B)relational
C)managerial
D)tactical information sharing

Question 29

___________ refers to "how we do things around here" and reflects an organization's vision,values,and strategic plans.

A)Supply chain management
B)Corporate strategy
C)Supply chain collaboration
D)Corporate culture

Question 30

Which of the following is not an attribute of supply chain partnerships?

A)mutual trust
B)increased willingness to share information
C)high independence among the partners
D)compatible goals

Question 31

Two key factors,___________ and ___________,have sparked much of the technological change affecting supply chains.

A)electronic data interchange;enterprise resource planning
B)computing power;Internet
C)Internet,electronic data interchange
D)computing power;enterprise resource planning

Question 32

Research on underperforming supply chains suggests that logistics can be crucial to achieving desired levels of supply chain performance.

Question 33

The general idea behind ___________ is that one company allows a specialist company to provide it with one or more logistics functions.

A)supply chain management
B)multichannel marketing
C)third-party logistics
D)cross-organizational collaboration

Question 34

The supply chain concept originated in the manufacturing literature.

Question 35

Supply chains are a new concept in the sense that they were first identified in the 1970s and 1980s.

Question 36

___________ combines technology with manual employee effort to identify trends,perform comparisons,and highlight opportunities in supply chain processes,even when large amounts of data are involved.

A)Data mining
B)Supply chain analytics
C)Benchmarking
D)Third-party logistics

Question 37

Customers can be a potential value co-creator of supply chain activities.

Question 38

Tailored business relationships between two supply chain members refer to ___________.

A)supply chain partnership
B)supply chain management
C)relational exchanges
D)tailored logistics

Question 39

What is a fourth-party logistics provider?

A)a company that ensures that various third-party logistics companies are working toward the relevant supply chain goals and objectives
B)a third-party logistics provider that has achieved ISO 9000 certification
C)a logistics intermediary that specializes in one logistics activity,such as warehousing or transportation
D)a third-party logistics provider that specializes in two or more logistics activities,such as warehousing and transportation

Question 40

Which of the following statements is true?

A)Third-party logistics companies demand only a few activities from third-party logistics providers.
B)The decision to use third-party logistics can only be strategic in nature.
C)Third-party logistics is synonymous with fourth-party logistics.
D)A common cause of third-party logistics failure is unreasonable and unrealistic expectations.

Question 41

Coopetition refers to cooperative relationships between members of a supply chain to enhance the overall business performance of all parties.

Question 42

The Supply Chain Operations Reference SCOR)model identifies five key processes associate with supply chain management.

Question 43

The Global Supply Chain Forum GSCF)model identifies eight relevant processes associated with supply chain management.

Question 44

Relational changes cannot be successful without information sharing among various participants.

Question 45

The leagility effect refers to variability in demand orders among supply chain members.

Question 46

Enhanced communications across organizations in a supply chain is only dependent on the technological capabilities of the organizations.

Question 47

Big-box retailers have been at the center of changes taking place that affect the supply chain.

Question 48

The two prominent supply chain management frameworks are the Supply Chain Operations Reference SCOR)model and the Process Classification Framework PCF).

Question 49

Leagility refers to a supply chain that combines the lean and agile paradigms.

Question 50

With respect to supply chains,relevancy focuses on an organization's ability to respond to changes in demand with respect to volume and variety.

Question 51

A perfect order simultaneously achieves relevant customer metrics.

Question 52

Because customer needs and wants change relatively quickly,supply chains should be fast and lean.

Question 53

The Internet has been referred to as the greatest force of commoditization known to man,for both goods and services.

Question 54

Supply chain management requires companies to adopt an enterprise-to-enterprise point of view.

Question 55

A primary objective of supply chain management is to optimize the performance of the supply chain as a whole.

Question 56

A willingness to share information and buying decisions based on value rather than cost or price are two characteristics of supply chain partnerships.

Question 57

The general idea behind third-party logistics is that one company allows a specialist company to provide it with one or more logistics functions.

Question 58

Tactical information sharing offers the best opportunity for improving supply chain performance.

Question 59

The decision to use third-party logistics companies can be driven by strategic or tactical considerations.

Question 60

Supply chain disruptions e.g. ,terrorist attacks,natural disasters)have caused some supply chains to reassess their emphasis on inventory reduction.

Question 61

A fourth-party logistics provider is a supply chain facilitator that has achieved ISO 9000 certification.

Question 62

Corporate cultures should not be considered when designing a supply chain.

Question 63

Two causes of failure in third-party logistics arrangements involve unreasonable expectations and lack of flexibility.

Question 64

Top management is sometimes hesitant to fully commit to supply chain management.

Question 65

Horizontal integration refers to where one organization owns multiple participants in a supply chain.

Question 66

A recent survey of 1,000 senior executives indicated that approximately 30 percent of them had implemented analytics focused on supply chain activities.

Question 67

One cause of the bullwhip effect is asymmetrical information among supply chain participants.

Question 68

Supply chain agreements should be designed to reward all participants when collaborative ventures are successful and all participants should share the consequences when these ventures are less successful than desired.

Question 69

Supply chain integration tends to be more challenging in global,as opposed to domestic,supply chains.

Question 70

An individual firm can be involved in only one supply chain at a time.

Question 71

Supply chain analytics combines technology with manual employee effort to identify trends,perform comparisons,and highlight opportunities in supply chain processes,even when large amounts of data are involved.

Question 72

Today,computer hardware is a larger barrier than computer software to interorganizational collaboration.

Question 73

The overall global climate for business has shifted toward allowing more cooperation among firms-which should help supply chain management.

Question 74

Broadly speaking,organizations can pursue three primary methods-vertical integration,formal contracts,and informal agreements-when attempting to integrate their supply chains.

Question 75

A best-of-breed approach chooses the best software application for a particular function.

Question 76

Actual senior management commitment to supply chain management occurs in one of every two organizations.

Question 77

Regulatory considerations represent a bigger obstacle than political considerations to supply chain management.