Deck 14: Supply Chain Integration

Question 1

Which of the following changes would decrease the likelihood of the bullwhip effect?

A) changing the mix of items in an order
B) sending partial shipments of an order
C) instituting a policy of no discounts or promotions
D) sending late deliveries of an order

Answer 1

C

Question 2

Supply chain integration is the effective coordination of supply chain processes through the seamless flow of information to suppliers, up and down the supply chain.

Answer 2

True

Question 3

A common disruption of the supply chain resulting from internal causes is demand volume changes.

Answer 3

False

Question 4

The SCOR model focuses on the supply chain processes of planning, making, sourcing, delivering, and returning.

Question 5

A common disruption of the external supply chain is engineering changes.

Question 6

Possible internal causes of supply chain disruptions are:

A) late deliveries.
B) machine breakdowns or inexperienced workers.
C) product and service mix changes.
D) underfilled shipments.

Question 7

Which of the following is not an external cause of supply chain disruptions?

A) late deliveries
B) new service or product introductions
C) customer service or product mix changes
D) underfilled shipments

Question 8

An external cause of disruption caused in the supply chain is:

A) product or sales promotions.
B) new product or service introduction.
C) late deliveries.
D) engineering changes.

Question 9

A common disruption of the external supply chain is product and service mix changes.

Question 10

The bullwhip effect is characterized by:

A) ordering patterns that experience increasing variance as you proceed downstream in the chain.
B) ordering patterns that experience increasing variance as you proceed upstream in the chain.
C) purchasing patterns that experience increasing variance downstream in the chain.
D) purchasing patterns that experience decreasing variance as you proceed upstream in the chain.

Question 11

The SCOR model provides guidelines for how materials are to be delivered along a supply chain.

Question 12

Which of the following is not a component of the supply chain?

A) order fulfillment
B) materials
C) customer relationship
D) competitors

Question 13

An internal cause of disruption in the supply chain is:

A) forecast error.
B) underfilled shipments.
C) volume changes.
D) late deliveries.

Question 14

Which of the following is not an internal cause of supply chain disruptions?

A) engineering changes
B) batching of orders
C) service or product promotions
D) underfilled shipments

Question 15

A common disruption of the supply chain resulting from internal causes is order batching.

Question 16

Supply chain integration is the effective coordination of supply chain processes through the seamless flow of information to suppliers, but does not include customers, such as distributors and retailers.

Question 17

The bullwhip effect says that in any supply chain, the ordering patterns experience increasing variance as you move closer to the end customer.

Question 18

The finished goods of one firm may actually be the raw materials for another firm.

Question 19

Which of the following changes would increase the likelihood of a supply chain experiencing the bullwhip effect?

A) engineering changes to the design of a product
B) instituting a more accurate materials management information system
C) closely coordinating promotions with the internal marketing department and suppliers
D) using a more reliable delivery company

Question 20

A supply chain can be thought of as a river that flows from raw material suppliers to consumers.

Question 21

The SCOR model requires a:

A) three-tier supply chain.
B) point of reference.
C) make-to-order or assemble-to-order product.
D) process view.

Question 22

Which of the following statements is True regarding additive manufacturing (AM) design programs, and specialized designers?

A) The need for skilled CAD designers has decreased since the implementation of AM.
B) The original CAD programs were not built to consider unique features of AM.
C) There is an abundance of AM specialized designers.
D) CAD programs are fully integrated with AM.

Question 23

The bullwhip effect results in greater demand variability at the ________ end of the supply chain and lesser demand variability at the ________ end of the supply chain.

Question 24

Additive manufacturing is a disruptive technology that should not be incorporated into supply chains.

Question 25

The ramp-up stage of the development process precedes the full launch stage.

Question 26

The SCOR model focuses on the basic supply chain processes of:

A) source, control, operate, return.
B) plan source, make deliver, return.
C) purchase, operate, control, logistics.
D) operations, marketing, finance.

Question 27

List and describe external causes of disruptions to supply chains.

Question 28

List and describe internal causes of disruptions to supply chains.

Question 29

The adoption of additive manufacturing (AM) requires an increase in material inputs and complex production processes.

Question 30

Describe some of the benefits for companies to integrate additive manufacturing technology into its supply chain.

Question 31

What are the elements of the SCOR model?

Question 32

Draw a graph illustrating the bullwhip effect and discuss its impact on the measures of supply chain performance.

Question 33

The more sophisticated the application of additive manufacturing becomes, the lesser the company will need skilled employees and workforce planning.

Question 34

Concurrent engineering helps firms avoid the costly mismatch between the design of a new offering and the capability of the processes required to produce it.

Question 35

The ________ model focuses on the supply chain processes plan, source, make, deliver, and return.

Question 36

Additive manufacturing poses severe risks to the ________ with respect to safeguarding product designs from those who want to copy them.

Question 37

Concurrent engineering is the term used to describe a firm's development of a new product after it has been discovered that a competitor is engineering a similar product for launch.

Question 38

Currently, the greatest challenge in using additive manufacturing is:

A) process.
B) intellectual property rights.
C) quality assurance.
D) talented workforce.

Question 39

One of the benefits of additive manufacturing is its ability to reduce time and resources required for design and development of new products.

Question 40

Additive manufacturing could be used to offer highly ________ products, which may yield an increase in customers' perceived product value and willingness to pay.

Question 41

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.
Unit costs

Freight Costs

Other Costs

Use Table 14.1 to answer the question. Kalil believes that Alison's would benefit most from smaller shipments of accessories from their chosen supplier. Which supplier would result in the lowest total cost using this criterion?

A) Supplier A
B) Supplier B
C) Supplier C
D) Supplier D

Question 42

Early supplier involvement is a program that allows suppliers to fill orders prior to the customer placing them.

Question 43

________ brings product engineers, process engineers, marketers, buyers, information specialists, quality specialists and suppliers together to work jointly to design a product and all its processes.

Question 44

Once certified, a supplier can be used by the purchasing department without the purchaser having to make background checks.

Question 45

In a competitive orientation to negotiations between buyer and supplier, the buyer does not always possess the power in the relationship-the supplier sometimes holds the power and can exercise this power during negotiations with the buyer.

Question 46

In presourcing, suppliers are selected early in the concept-development stage.

Question 47

Which of the following is not a stage in the New Service / Product Development Process?

A) development
B) design
C) maintenance
D) analysis

Question 48

The stage of new product or service development that links the creation of new services or products to the corporate strategy of the firm is called:

A) design.
B) analysis.
C) development.
D) full launch.

Question 49

Green purchasing involves identifying, assessing, and managing the flow of environmental waste and finding ways to reduce it and minimize its impact on the environment.

Question 50

The stage of new service or product development at which personnel are trained and some pilot runs can be conducted to look for possible problems in production is called:

A) design.
B) analysis.
C) development.
D) full launch.

Question 51

A catalog hub is a central distribution point where buyers may purchase items directly from manufacturers before the items are shipped to retailers.

Question 52

The product development team ensures compatibility of the proposed product with corporate strategy and regulatory standards in the:

A) design stage.
B) analysis stage.
C) development stage.
D) full launch stage.

Question 53

An electronic market that brings together textbook sellers, office supply companies, apparel vendors, and students is an example of an exchange.

Question 54

A strain is placed on the supply chain during the ramp-up stage of the development process due to changing volumes, quality issues and last minute design changes.

Question 55

Electronic Data Interchange enables the transmission of routine, standardized business documents from computer to computer over telephone or direct leased lines.

Question 56

The traditional form of e-purchasing today is electronic data interchange.

Question 57

A new product development team that is composed of product and process engineers, marketers, quality specialists, and buyers that work together to make sure the new product can actually be built is engaging in:

A) concurrent engineering.
B) joint application development.
C) reverse logistics.
D) core process design.

Question 58

The competitive orientation to supplier relations is that the buyer and supplier are partners.

Question 59

Value analysis is a systematic effort to reduce the cost or improve the performance of a service or product.

Question 60

Which one of the following statements is True about sourcing?

A) Purchasing's primary role is to satisfy the firm's long-term supply needs.
B) Purchasing's primary role should be placing and tracking orders.
C) Purchasing's primary role is to negotiate lower prices.
D) Purchasing's primary role is to negotiate prices and delivery dates.

Question 61

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.
Unit costs

Freight Costs

Other Costs

Use Table 14.1 to answer the question. Kalil believes in buying in bulk, regardless of who the supplier is. Which supplier would result in the lowest total cost using this criterion?

A) Supplier A
B) Supplier B
C) Supplier C
D) Supplier D

Question 62

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.
Unit costs

Freight Costs

Other Costs

Use Table 14.1 to answer the question. Kalil has a sorority sister that works at Supplier A and would like to help her out by awarding the supply contract. Which shipping volume should she choose in order to rig the bid and give her sister's company the contract?

A) 15,000 units
B) 25,000 units
C) 50,000 units
D) None of these, the shipping volume would need to be higher than the table goes.

Question 63

Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer has access to knowledge, information and skills desired by the supplier, this is called a(n) ________ source of power.

A) expert
B) reward
C) referent
D) coercive

Question 64

Which one of the following statements is True about a cooperative orientation in supplier relationships?

A) It cannot be implemented in Western countries because competitive bidding is more effective in that culture.
B) It cannot be implemented in the Western countries because it always benefits the supplier.
C) It requires all parts and subassemblies to be purchased from the same supplier.
D) It requires few suppliers for each item or service.

Question 65

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.
Unit costs

Freight Costs

Other Costs

Use Table 14.1 to answer the question. Kalil believes that Alison's would benefit most from medium sized shipments of accessories from their chosen supplier. Which supplier would result in the lowest total cost using this criterion?

A) Supplier A
B) Supplier B
C) Supplier C
D) Supplier D

Question 66

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.
Unit costs

Freight Costs

Other Costs

Use Table 14.1 to answer the question. As shipping volume increases from 15,000 to 25,000 to 50,000, which supplier experiences the smallest percentage increase in inventory cost?

A) Supplier A
B) Supplier B
C) Supplier C
D) Supplier D

Question 67

Approaches to e-purchasing include all of the following except:

A) catalog hubs.
B) radio frequency identification (RFID).
C) exchanges.
D) electronic data interchange (EDI).

Question 68

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. They also consider on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table.

Refer to the instruction above. Using the preference matrix approach for selecting suppliers, what is Acme's total weighted score?

A) 100
B) 570
C) 24
D) 590

Question 69

Table 14.1
Alison's Accessories is a high volume worldwide fashion house with outlets in 65 countries. Kalil, the supply chain manager is conducting her usual thorough analysis of her final four candidates for supplier and has developed the following tables of pertinent costs and other shipping metrics. Regardless of supplier, Alison's Accessories will operate 220 days per year and has forecast annual demand of 250,000 units. Kalil has obtained quotes for three different shipment sizes (Freight Costs table). All costs are in US Dollars.
Unit costs

Freight Costs

Other Costs

Use Table 14.1 to answer the question. Kalil has a brother-in-law that works for Supplier B and as she will soon be an aunt for the first time, she'd like to choose a shipping volume that awards Supplier B with the contract with Alison Accessories. What shipping volume should she choose?

A) 15,000 units
B) 25,000 units
C) 50,000 units
D) Supplier B is never the best alternative.

Question 70

Examples of radio frequency identification (RFID) could include all of the following except:

A) tracking the status of engineering changes during development of a new product line.
B) tracking cases and pallets of products into and out of warehouse inventories.
C) air travel use for baggage tracking.
D) tracking the flow of parts through a manufacturing process.

Question 71

One of the benefits of a cooperative orientation in supplier relationships is:

A) the buyer sometimes suggests ways to improve the supplier's operations.
B) the supplier implements its own quality standards.
C) the buyer does not have to share much information with the supplier.
D) the supplier has complete freedom in choosing the delivery time.

Question 72

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. They also consider on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table.

Refer to the instruction above. Using the preference matrix (total weighted score) approach for selecting suppliers, which supplier should Steele select?

A) State
B) Acme
C) Either is acceptable-their preference matrix scores are the same.
D) More information is needed to make this decision.

Question 73

The practice of selecting suppliers and giving them significant responsibility for the design of certain components or systems of the product is called:

A) value analysis.
B) locus of control.
C) presourcing.
D) vendor-managed inventories.

Question 74

The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of:

A) inventory pooling control.
B) virtual distribution.
C) electronic inventory control.
D) vendor-managed inventories.

Question 75

Use the following to answer the questions below.
The Steele Bike Company has completed a total cost analysis for two suppliers of bicycle frames to support their business. They also consider on-time speed, top quality and customization in their selection process. Each criterion is given a weight (total = 100 points), and each supplier is scored on each criterion (1 = poor, 10 = excellent). The data are shown in the following table.

Refer to the instruction above. Using the preference matrix approach for selecting suppliers, what is State's total weighted score?

A) 570
B) 100
C) 23
D) 590

Question 76

________ is the management of the acquisition process, which includes deciding which suppliers to use, negotiating contracts, and deciding whether to buy locally.

Question 77

Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a supplier values identification with a buyer, this is called a(n) ________ source of power.

A) expert
B) reward
C) referent
D) legal

Question 78

Which one of the following statements correctly represents a benefit of centralized buying?

A) Local managers have more control over their business.
B) Purchases and production schedules are meshed more easily.
C) Customization to local preferences is simplified.
D) Increased buying power can result in significant savings in purchasing costs.

Question 79

Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer can threaten to cancel future business unless the supplier adheres to the buyer's demands, this is called a ________ source of power.

A) legal
B) reward
C) referent
D) coercive

Question 80

A systematic effort to reduce the cost or improve the performance of services or products is known as:

A) presourcing.
B) cooperative orientation.
C) supplier certification.
D) value analysis.