Deck 13: Supply Chain Process Integration

Question 1

Two methods for managing supply chain risk include utilizing a supply chain IT system and identifying backup suppliers.

Answer 1

True

Question 2

Fear,uncertainty,and doubt between people and organizations are some primary obstacles preventing organizations from sharing information with supply-chain partners,as well as among coworkers.

Answer 2

True

Question 3

The most basic security system should include procedures and policies for securing facilities,personnel,computer systems,and freight shipments.

Answer 3

True

Question 4

An important initial step in the supply chain integration model is for a firm to identify the primary trading partners so the firm can concentrate its time and resources on managing the important process links with these companies.

Question 5

It is important for all supply chain members to first understand the important characteristics upon which the supply chain end product is competing.Once this is understood,the supply chain members should all be using strategies consistent with those competitive characteristics when delivering their product and/or service.

Question 6

According to the text,the ultimate goal in supply chain management is to create value for the services and products provided to end customers,which,in turn,will benefit the firms in the supply chain network.

Question 7

RFID technology seeks to minimize supply chain visibility.

Question 8

According to the textbook,there are four key supply chain business processes: Purchasing,Manufacturing,Distribution,and Returns.

Question 9

The development of functional silos within an organization is considered a key component to achieving successful supply chain process integration.

Question 10

Successful supply chain management requires the development of inter-organizational performance metrics and supply-chain performance metrics to maintain and continuously improve the effectiveness of key internal and external processes.

Question 11

Forward buying is when companies purchase very small amounts of inventory.

Question 12

According to the text,training of supply chain partner employees is also known as collaborative education.

Question 13

RFID tags,which stands for Radio Frequency Identification tag,is a technology that will be used to gain real-time inventory information about the geographic location of a product in an effort to insure that shelves are full and that supply chains are issuing replenishment orders in a timely fashion.

Question 14

The order fulfillment process relies on forecasting and techniques used to smooth demand variabilities when disparities exist between demand and supply.

Question 15

The phrases "customer relationship management" and "customer service management" are interchangeable supply chain terms.

Question 16

Manufacturing flow management is the key process that helps balance customer demand and the firm's output capabilities.

Question 17

One of the key supply chain business processes is supplier relationship management,which seeks to forecast demand and coordinate purchasing and distribution in an effort to balance customer demand with the firm's manufacturing capacity.

Question 18

When demand exceeds a supplier's finished goods available,a supplier may allocate product in proportion to what buyers ordered.This rationing often results in shortage gaming by the suppliers customers.

Question 19

Knowledge management solutions connect buyers and suppliers via the internet to aid in the integration of supply chains.

Question 20

Passive RFID Tags,which are mandated by Wal-Mart,are less expensive than active RFID tags,which have been used for healthcare and military applications.

Question 21

The coordination and sharing of information and resources to jointly manage a process is referred to as:

A) Rationing
B) Process Integration
C) Gaming
D) EDLP

Question 22

Which of the following is a vital element in developing a strong supply chain through the practice of process integration?

A) Developing and implementing a strong information technology system that allows for fast and easy information exchanges between supply chain partners
B) Partner collaborations on methods to improve processes within the supply chain
C) Partnerships, which value information sharing and partner collaborations
D) All of these

Question 23

According to the text,decisions regarding the types of parts purchased,suppliers used and the manufacturing process employed,should be decided in which phase of the supply chain integration model:

A) Review and establish supply chain strategies
B) Identify critical supply chain trading partners
C) Align supply chain strategies with key supply chain process objectives
D) Assess and improve internal integration of key supply chain processes

Question 24

A set of activities designed to produce a product or service for an internal or external customer is called a(n):

A) Process
B) System
C) Strategy
D) Organization

Question 25

According to the text,all of the following are considered key supply chain business processes EXCEPT:

A) Knowledge management process
B) Manufacturing flow management process
C) Supplier relationship management process
D) Returns management process

Question 26

According to the text,when a buyer allows some of their suppliers to observe actual demand,create a forecast and determine their resupply schedules,it is known as:

A) Passive integration
B) Collaborative inventory management
C) Vendor managed inventory
D) Cloud-based supply chain management

Question 27

According to the text,mapping the network of primary trading partners is something that should be done in which stage of the supply chain integration model:

A) Review and establish supply chain strategies
B) Identify critical supply chain trading partners
C) Align supply chain strategies with key supply chain process objectives
D) Assess and improve internal integration of key supply chain processes

Question 28

Failing to see the big picture and acting only in regard to single firm in the supply chain can be referred to as:

A) Silo mentality
B) Balking
C) Biased decision making
D) Stockpiling

Question 29

According to the text,the phase of the supply chain integration model concerned with identifying the important processes linking each of the supply chain partners is:

A) Review and establish supply chain strategies
B) Identify critical supply chain trading partners
C) Align supply chain strategies with key supply chain process objectives
D) Assess and improve internal integration of key supply chain processes

Question 30

The primary enabler of the internal integration of key supply chain processes is a firm's:

A) CRM program
B) ERP system
C) Data warehouse
D) Legacy system

Question 31

Building,maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of:

A) Data warehouses
B) Legacy systems
C) External process integration
D) Order batching

Question 32

Which of the following identifies the key customers,determines their needs,and then develops products and/or services to meet those needs?

A) Customer Service Management
B) Product Development and Commercialization
C) Customer Relationship Management
D) Demand Management

Question 33

Which of the key supply chain business processes refers to meeting customer requirements by synchronizing the firm's marketing,production and distribution plans:

A) Customer relationship management process
B) Customer demand organization process
C) Order fulfillment process
D) Supply chain synchronization process

Question 34

Which of the following is a contributor to the bullwhip effect?

A) Smaller Order Sizes
B) Rationing
C) EDLP
D) VMI

Question 35

The practice of buyers allowing suppliers to observe their demand,create a forecast,and determine their resupply schedules in the hopes of reducing inventories is called:

A) Order Batching
B) Forward Buying
C) The Legacy System
D) VMI

Question 36

Which of the following is NOT one of the eight key supply chain business processes?

A) Product Development and Commercialization
B) Customer Relationship Management
C) Order Fulfillment
D) Strategic Management

Question 37

According to the text,customer feedback mechanisms are developed as part of which supply chain business process:

A) Customer relationship management process
B) Knowledge management process
C) Customer service management process
D) Product development and commercialization process

Question 38

Supply relationship management personnel routinely communicate with:

A) Production personnel to obtain feedback on supplier and purchased item performance
B) Marketing personnel for customer feedback
C) Suppliers for new product development and performance feedback
D) All of these

Question 39

A customer approaches you with a question regarding her order status and shipping date; the information you provide is an example of which of the eight key supply chain business processes:

A) Supply management process
B) Demand management process
C) Order management process
D) Customer service management process

Question 40

Which of the following is considered an obstacle to supply chain integration?

A) RFID Technology
B) Vendor Managed Inventory
C) Lack of Supply Chain Visibility
D) All of these

Question 41

List FIVE of the eight supply chain business processes.

Question 42

List and explain TWO of the causes of the bullwhip.

Question 43

What is RFID technology and how will it aid in management of the supply chain?

Question 44

Due to supply rationing,a buyer is being allotted 90% of her total orders.As a result,the buyer inflates her subsequent orders in an attempt to meet her real needs for demand.This strategy is known as:

A) Stockpiling
B) Bullwhip ordering
C) Order fulfillment
D) Shortage gaming

Question 45

Companies that train the employees of their supply chain partners are engaging in:

A) Collaborative education
B) Integrative education programs
C) Supplier certification
D) Extended reach programs

Question 46

The textbook states that "the bullwhip effect can be a pervasive and expensive problem along the supply chain." Answer the following questions in relation to the bullwhip effect:
1.Briefly describe the bullwhip effect.
2.List 2 key activities that cause the bullwhip effect.How do they exacerbate the problems associated with the bullwhip effect?
3.How can process integration help prevent/minimize the bullwhip effect?
4.List 2 other key activities that can act as deterrents against the bullwhip effect.How do they minimize and/or eliminate the problems associated with the bullwhip effect?
1.Vendor Managed Inventory Systems - VMI systems empower suppliers to manage inventories for their customers based on information supplied directly to the supplier via the customer's system.This not only allows for increased visibility,it also allows for suppliers to act at a time closer to the actual moment of need.
2.Increasing Information Visibility - Developing information systems which allow organizations and their supply chain members to more accurately assess the needs of the system/customers will allow for more effective planning and in turn provide a more efficient use of resources.
3.Decreasing Order Sizes - smaller order sizes help supply chain members more accurately track changes in demand.Such orders will be more frequent,and allows forecasts to be more accurate.
4.Maintaining a policy of Everyday Low Prices - this helps to minimize or eliminate price fluctuations which may cause irregular buying patterns,or create an enlarged sense of demand variability.
5.Reducing the length of the supply chain can reduce the bullwhip effect by reducing the number of occasions when forecasts are calculated.
6.Reducing lead times from order to delivery will allow organizations to order in a just-in-time manner,and allows for more small order quantities.
7.Attempting to limit shortage gaming by allocating product for sale to buyers based on demand histories.

Question 47

The following supply chain security activities,creating a director of security position,hiring personnel with military and/or government experience,and performing a formal security risk assessment,would be classified as:

A) Basic Initiatives
B) Reactive Initiatives
C) Proactive Initiatives
D) Advanced Initiatives

Question 48

Price fluctuations that are the result of special product promotions,quantity discounts,and other special pricing discounts by suppliers result in:

A) Shortage Gaming
B) Quantity Batching
C) Buy-Back Gaming
D) Forward Buying

Question 49

The textbook lists the following activities as Supply Chain Risk Management activities:
1.Increasing safety stock and forward buying
2.Identify backup suppliers and logistics services
3.Diversify the supply base
4.Utilize a supply chain IT system
5.Develop a formal risk management program
For each also provide the downside of utilizing that particular strategy.

Question 50

List and describe three obstacles to process integration along the supply chain.

Question 51

List and describe FIVE of the eight key supply chain business processes.

Question 52

Which of the following would be considered a Supply Chain Risk Management activity?

A) Increasing safety stock
B) Diversify the supply base
C) Utilize a supply chain IT system
D) All of these