Deck 1: Introduction to Supply Chain Management

Question 1

According to the textbook, third-party logistics providers (3LPs) do not offer assistance with helping products clear customs.

Answer 1

False

Question 2

Supply chain management activity includes managing the various compensation and benefit programs within an organization.

Answer 2

False

Question 3

The bullwhip effect is the result of companies producing excessive defective products; defective items are whipped back from the end customer toward the manufacturer of the defect.

Answer 3

False

Question 4

The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain.

Question 5

Supply chain analytics can be used along the supply chain to schedule production according to expected supplier deliveries

Question 6

According to the text, supply chain management will involve cultural change among most or all of the participants.

Question 7

According to the textbook, the keys to successful supply chain management include trust, cooperation, collaboration and honest, accurate communications between supply chain partners.

Question 8

Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.

Question 9

According to the textbook, a supply chain's end customers are the only true source of income for all supply chain organizations.

Question 10

According to the textbook, environmental and social impacts are considered outside of supply chain management.

Question 11

The universally accepted definition of supply chain management is "the management and integration of the parties involved in producing the end items coveted by consumers."

Question 12

One definition of supply chain management is "Coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers."

Question 13

Highly valued customers with large purchasing budgets who achieve moderate supply chain management success have been known to lower purchasing and inventory carrying costs, and create better quality products with higher levels of customer service.

Question 14

Trucking companies, airfreight shipping companies, and information system providers can all be considered service providers to the supply chain.

Question 15

The assembly or production of finished products, producing the right amount of product, and ensuring that finished products meet specific quality, cost, and customer service requirements can all be considered elements of operations.

Question 16

According to the textbook, in the 1950's and 1960's, mass production techniques focused on creating supplier partnerships, improving process design and flexibility, and improving product quality.

Question 17

Supply chain management is concerned about how suppliers' products are designed, produced, and transported.

Question 18

The foundation elements of supply chain management are Supply.Operations, Customer Service, Logistics.

Question 19

Many large firms are moving to in-house vertically integrated structures where they have more control over each business unit.

Question 20

According to the textbook, supply chains include raw material suppliers, intermediate component manufacturers, end-product manufacturers, wholesale distributors, retailers and end-product consumers.

Question 21

Which of the following statements is TRUE?

A) Supply chain management was invented by the auto manufacturing industry
B) Strategic partnerships are seen as one of the foundations of supply chain management
C) Purchasing is seen as the final and most difficult step in the supply chain
D) Service response logistics is the digital distribution of services

Question 22

According to the text, the FOUR important elements of the supply chain are:

A) Purchasing, manufacturing, transportation, retail stores
B) Supply, operations, logistics, integration
C) Purchasing, manufacturing, logistics, transportation
D) Supply, operations, manufacturing, distribution

Question 23

Developed in the 1990's as a popular way of developing radically new business processes in an effort to reduce waste and increase performance is referred to as:

A) Process integration
B) Benchmarking
C) Business process reengineering
D) Vertical integration

Question 24

According to the textbook, conditions which must be present for successful supply chain management include:

A) Cooperation among firms
B) Corporate contracts regarding performance expectations
C) Short-term company focused performance
D) Vertical Integration

Question 25

Customer relationship management, distribution network, transportation management, and service response logistics are all important issues that are most closely related to:

A) Purchasing
B) Logistics
C) Integration
D) Manufacturing

Question 26

Which of the following is a reverse logistics activity:

A) Delivering finished goods to your customer
B) Recycling products and components
C) Developing a collaborative relationship with your supplier
D) Managing the quality of products

Question 27

Encouraging or helping a firm's suppliers to perform in a desired fashion can be referred to as:

A) Progressive procurement
B) Supplier management
C) Right-shoring
D) Supply chain performance management

Question 28

Which of the following can be defined as "The ability to meet the needs of current supply chain members without hindering the ability to meet the needs of future generations".

A) Reverse logistics
B) Enterprise resource planning
C) Sustainability
D) Strategic partnerships

Question 29

Lean production is typically associated with which of the following company's production systems?

A) Proctor and Gamble
B) Kraft
C) Samsung
D) Toyota

Question 30

One operational method for managing inventory is the implementation of a software system which can be referred to as:

A) Material requirements planning (MRP)
B) Demand capacity tracking (DCT)
C) Inventory sourcing (IS)
D) Demand process reengineering (DPR)

Question 31

Which of the following would be considered a third party provider?

A) A Raw materials supplier
B) An intermediate component manufacturer
C) A firm that leases storage warehousing
D) An end product manufacturer

Question 32

When a particular item is in short supply accompanied by rising prices, a firm might find it beneficial to:

A) Discontinue buying the product and focus more on cheaper products.
B) Align itself with one of the suppliers to ensure a continued supply of the scarce item.
C) Purchase the item from a manufacturer who cuts corners and provides a product below market price.
D) All of these

Question 33

Which of the following activities allows buyers to assume the supplier will meet certain product quality and service requirements?

A) Business process reengineering
B) Right-shoring
C) Supplier certification
D) Distribution network

Question 34

Which company is experimenting with the management of the final mile of delivery in some markets, using small aerial drones to deliver shoebox-size packages from fulfillment centers?

A) FedEx
B) UPS
C) Zappos
D) Amazon

Question 35

Which of the following activities would fall under the foundational element of operation?

A) Distribution network
B) Supplier management
C) Demand management
D) Third-party logistics services

Question 36

According to the textbook, the order of product & service flow is as follows:

A) Raw material supplier, retailer, component manufacturer, wholesale distributor, end product manufacturer, end-product consumer
B) Raw material supplier, component manufacturer, retailer, wholesale distributor, end product manufacturer, end-product consumer
C) Component manufacturer, raw material supplier, retailer, wholesale distributor, end product manufacturer, end-product consumer
D) Raw material supplier, component manufacturer, end product manufacturer, wholesale distributor, retailer, end-product consumer

Question 37

Which of the following acronyms is NOT paired with its correct "translation?"

A) TQM -Total Quality Management
B) JIT -Just-in-Time
C) TLS -Third-party Logistics Services
D) ERP -Enterprise Resource Planning

Question 38

Supply chain management includes the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities.It also includes:

A) Human resources and job design
B) Selling and marketing products
C) Coordination and collaboration with channel partners
D) Program evaluation and review techniques.

Question 39

According to the text, which of the following is considered a current trend in supply chain management?

A) Using supply chain analytics
B) Increasing supply chain visibility
C) Both A and B
D) None of these

Question 40

The following strategy is usually employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities:

A) Six Sigma
B) MRP II
C) 3PL
D) CAPS

Question 41

Discuss the differences between supply chain partnerships of the past and those that have developed today.

Question 42

Explain the bullwhip effect? What can be done to reduce the bullwhip effect? Give an example of how the bullwhip effect results in excess costs in the supply chain.

Question 43

Explain the concept of 'value-enhancing benefits' by giving THREE examples of benefits that may be realized by a firm that successfully manages its supply chain.

Question 44

Which of the following can happen as a result of the bullwhip effect?

A) Increase in defective products
B) Excess costs for each firm in a supply chain
C) Decreased levels of safety stock
D) Quicker distribution to warehouses

Question 45

The term Supply Chain Management and the field of study it represents today seems to have emerged in the:

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

Question 46

List three concepts used by supply chain managers in an attempt to make a firm more flexible and responsive to customers' changing needs:

Question 47

The following is an example of the bullwhip effect:

A) Barkley's produces a defective product and thus realizes an excessive increase in consumer returns
B) Barkley's products are so successful that it adds a new retailer for distribution
C) Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers
D) Barkley's is unhappy with the performance of a distributor which causes a chain-reaction of replacements to companies involved in its supply chain

Question 48

There are many definitions for supply chain management.
a.Define supply chain management in your own words.
b.What is the goal of supply chain management?

Question 49

The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier forecasts and cause production planning problems is known as:

A) Supply chain management
B) Process integration
C) Back-shoring
D) Bullwhip effect

Question 50

List the four elements of supply chain management and provide a brief explanation of each of the four elements.What types of failures might each of those elements create within the supply chain? Why might those results be linked to errors in a particular element?

Question 51

An internal or external event that causes a disruption or failure of supply chain operations is an example of

A) Bull-whip effect
B) Back-shoring
C) Supply chain risk
D) Six Sigma quality management

Question 52

Briefly explain how technology has impacted supply chain management? Give three examples.