Deck 10: Supply Chain Management Strategy and Design

Question 1

Supply chain uncertainty and variability may result in incomplete and late orders.

Answer 1

True

Question 2

One way to cope with the bullwhip effect is for supply chain members to share demand information.

Answer 2

True

Question 3

The bullwhip effect occurs when slight to moderate demand variability becomes magnified as demand information is transmitted back upstream.

Answer 3

True

Question 4

Companies address uncertainty in their supply chains by holding extra inventory.

Question 5

A supply chain encompasses only the activities associated with the flow of goods and services.

Question 6

Discuss sustainable supply chain practices and how they relate to quality management.

Question 7

Final end-use customers are upstream members of a supply chain.

Question 8

The supply chain for a service tends to be more compacted and less extended than a supply chain for a manufactured good.

Question 9

Increasing supply chain transparency only magnifies the bullwhip effect.

Question 10

Discuss tools for monitoring supply chain performance and calculate key performance indicators.

Question 11

Collaborative planning, forecasting, and replenishment (CPFR) is a useful tool supporting supply chain integration.

Question 12

Supply chains for services are easier to define than supply chains for manufactured goods.

Question 13

Suppliers are upstream members of a supply chain.

Question 14

Discuss information technologies currently available for supply chain management.

Question 15

Traditionally, each supply chain member was viewed as a separate, stand-alone entity focused on its own goals.

Question 16

Define supply chains with respect to both manufacturing and services.

Question 17

Because value chain and supply chain have similar meanings they are often used interchangeably.

Question 18

Globalization and advances in information technology are primary reasons why supply chain management has become a competitive priority for companies.

Question 19

Provide an overview of the four areas where information technology assists with supply chain integration.

Question 20

Explain characteristics and management strategies of the modern supply chain.

Question 21

The supply chain operations reference (SCOR) model reports the fraction of orders filled by a distribution centre in a specific time period.

Question 22

Supply chain management focuses on integrating and managing the flow of

A) services.
B) information.
C) goods.
D) all the above.

Question 23

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

A) communication among members
B) independence among members
C) collaboration among members
D) trust among members

Question 24

Supply chain management focuses on integrating and managing the flow of manufactured goods, services and related information.

Question 25

Distributors, warehouses, and retailers are referred to as ___ supply chain members.

A) downstream
B) upstream
C) procurement
D) none of the above

Question 26

Enterprise Resource Planning (ERP) is software that helps integrate many of the supply chain components by sharing and organizing information and data among supply chain members.

Question 27

Information is the essential link for coordination among all supply chain members.

Question 28

Which of the following is not an area of responsibility in a demand-driven value chain?

A) demand Management
B) revenue Management
C) product Management
D) supply Management

Question 29

Which of the following is not one of the three key performance indicators (KPI) used to measure supply chain performance?

A) inventory turnover
B) postponement rate
C) inventory days of supply
D) fill rate

Question 30

E-business replaces physical exchange processes with electronic ones.

Question 31

A computer-to-computer exchange of business documents in a standard format is known as electronic data interchange (EDI).

Question 32

Supply chain processes include

A) procurement.
B) production.
C) distribution.
D) all of the above.

Question 33

The bullwhip effect can

A) increase inventories.
B) increase demand.
C) increase customer service levels.
D) increase capacity.

Question 34

Use of radio frequency identification (RFID) technology makes it possible for a customer to determine production schedules.

Question 35

The suppliers in a supply chain are referred to as ___ supply chain members.

A) downstream
B) midstream
C) upstream
D) none of the above

Question 36

Fill rate is one of the three key performance indicators in measuring supply chain performance.

Question 37

Suppliers and customers rarely participate in the design of a supply chain.

Question 38

A supply chain consists of an integrated group of processes to source, make, and store products.

Question 39

The purchase of goods and services from suppliers is known as

A) product management
B) supply management
C) procurement
D) the supply chain

Question 40

Information sharing among supply chain members will typically result in all of the following except

A) faster response times.
B) early problem detection.
C) an increased bullwhip effect.
D) greater trust and confidence among supply chain members.

Question 41

Increased uncertainty and variability in a supply chain typically results in

A) faster deliveries.
B) more accurate order fulfillment.
C) larger inventories.
D) lower costs.

Question 42

A company that produces small electric motors for treadmills had cost of goods sold last year of $241,000,000. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 365 days a year, the days of supply being held in inventory is

A) 44.35.
B) 27.39.
C) 8.23.
D) 0.1215.

Question 43

Which of the following is a quality improvement goal that can have positive impacts on supply chain sustainability?

A) reducing inspections
B) holding more inventory
C) eliminating returned products
D) reducing shipments

Question 44

Inventory turnover is computed by

A) dividing the cost of goods sold by the average aggregate inventory value.
B) dividing the average aggregate inventory value by costs of goods sold.
C) multiplying the average aggregate inventory value by cost of goods sold.
D) subtracting cost of goods sold from the average aggregate inventory value.

Question 45

All of the following are performance metrics in the SCOR system, except

A) perfect order fulfillment.
B) production flexibility.
C) value-added productivity.
D) asset fulfillment.

Question 46

A company that produces specialized video equipment had cost of goods sold last year of $127,000,000. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year, then the weeks of supply in inventory would be

A) 4.898.
B) 0.098.
C) 10.209.
D) 35.75.

Question 47

Which of the following is not a contributing factor to supply chain uncertainty?

A) accurate demand forecasting
B) price fluctuations and discounts
C) long variable lead times
D) incomplete shipments

Question 48

A new innovation that merges the digital world with the physical is known as

A) the Internet of Things
B) Electronic Data Interchange
C) Bar Codes
D) E-Business

Question 49

A company that produces printer cartridges had cost of goods sold last year of $629,462,423. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year, then the number of inventory turns would be

A) 3.720.
B) 2.493.
C) 13.4546.
D) 28.33.

Question 50

All the following are enablers of efficient supply chain management except

A) bar codes.
B) price tags.
C) RFID tags.
D) the Internet.

Question 51

A company that produces specialized video equipment had cost of goods sold last year of $127,000,000. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year, then the number of inventory turns would be

A) 0.0979.
B) 4.3795.
C) 8.9784.
D) 10.2090.

Question 52

One way to reduce the bullwhip effect is for supply chain members to

A) make ordering decisions independently of each other.
B) create demand forecasts independently of other supply chain members.
C) share demand forecasts with other supply chain members.
D) restrict information flows between supply chain members.

Question 53

A computer-to-computer exchange of business documents in a standard format is known as

A) e-business.
B) electronic data interchange (EDI).
C) radio frequency identification (RFID).
D) point-of-sale data.

Question 54

The impetus for sustainability generally comes from

A) upstream in the supply chain and moves downstream
B) downstream in the supply chain and moves upstream
C) government
D) environmental lobbying

Question 55

___ is not a perceived advantage of radio frequency identification (RFID) technology.

A) Loss of personal privacy
B) Reduced stock-outs
C) Prevention of fraud or theft
D) Lower distribution costs

Question 56

All the following are approaches used in risk pooling within a supply chain except

A) reducing the number and variety of parts.
B) creating flexible capacity.
C) encouraging large orders.
D) combining inventories from multiple locations into one location.

Question 57

The process of two or more companies in a supply chain synchronizing their individual demand forecasts to develop a single plan for meeting customer demand is known as

A) RFID
B) VMI
C) CPFR
D) ERP

Question 58

A distributor that plans inventory for a customer is an example of

A) SCM
B) VMI
C) EDI
D) ERP

Question 59

Supply chain integration does not involve ___ among supply chain members.

A) providing information
B) collaborating on replenishment
C) reducing competition
D) coordinating work flows

Question 60

Companies resist establishing green supply chains for all the following reasons except that

A) the market is soft for products with green attributes.
B) green manufacturing requires costly new equipment and practice.
C) green initiatives lower costs because fewer resources are consumed.
D) green practices face additional government, societal and social pressures.

Question 61

The fraction of orders filled by a distribution centre or warehouse within a specific time period is referred to as the

A) inventory turnover.
B) inventory supply time.
C) fill rate.
D) aggregate orders processed.

Question 62

What processes comprise the supply chain and how are the processes integrated?

Question 63

Briefly describe supply chain integration and identify some potential benefits it can have on supply chain performance.

Question 64

What is the bullwhip effect and how does it occur?

Question 65

A company that produces printer cartridges had cost of goods sold last year of $629,462,423. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year, then the weeks of supply in inventory would be

A) 3.716.
B) 2.493.
C) 13.4546.
D) 28.33.

Question 66

Which of the following is a strategic metric for asset management efficiency under the SCOR model

A) total cost to serve
B) return on working capital
C) order fulfillment cycle time
D) overall value at risk

Question 67

List and define four information technology supply chain enablers.

Question 68

Which of the following is not a key performance indicator used in supply chain management?

A) fill rate
B) days of supply
C) cost of goods
D) inventory turns.

Question 69

List and explain the three key supply chain performance indicators.

Question 70

Who are the upstream and downstream supply chain members?

Question 71

What is a supply chain?

Question 72

What is the role of information and information technology in managing the supply chain?