Deck 11: Managing Supply Chains

Question 1

Supply chain management is the managing of the supply, assembly, distribution, and human networks.

Answer 1

True

Question 2

The goal of supply chain management is synching the various supply chain networks with customer needs.

Answer 2

True

Question 3

The goal in managing supply chains is matching supply to demand to minimize costs.

Answer 3

False

Question 4

Managing a supply chain requires managing the flow of goods, services, profits, and people in the chain.

Question 5

Actively managing a supply chain requires greater information sharing between buyers and suppliers and among suppliers.

Question 6

A greater focus on performance monitoring and measurement of key suppliers and the purchasing organization is too time consuming for supply chain management.

Question 7

Companies are looking at supply chain management as a strategic means to gain a competitive advantage.

Question 8

Good supply chain management can deliver a decisive competitive advantage by way of revenues, inventory, and customer service in response to changing customer needs.

Question 9

A supply chain can be directly responsible for up to 60 to 80 percent of a company's total cost structure.

Question 10

Global competition and volatility of customer demand are two of the main concerns of supply chain managers.

Question 11

Supply chain managers are expected to reduce operating costs and increase inventory levels to meet customer demands.

Question 12

Supply chain management by itself cannot facilitate access into new markets; it needs existing markets.

Question 13

Managing a supply chain requires us to identify and manage key steps in the procurement process that only happen within the company boundaries.

Question 14

The "make-buy" and "where" decisions are the key decision-making steps in strategic supply chain management.

Question 15

Anything that an outsider can do better in terms of cost, quality, or delivery should be actively considered for outsourcing.

Question 16

Areas of core competence are tasks that are performed best internally for reasons of cost, quality, time, or proprietory knowledge.

Question 17

In supply chain management, make-buy/outsourcing decisions can be aided by numerical analysis using tools such as break-even analysis.

Question 18

Getting the job done within the country is referred to as in-shoring, while getting it done outside the country borders is referred to as out-shoring.

Question 19

Companies such as Nike and Apple offshore practically all manufacturing so as to focus on their core competency, which is product design.

Question 20

Companies like Acrelor Mittal, the global steelmaker, are vertically integrating into iron ore mines, infrastructure development, and distribution because of transportation costs.

Question 21

Services that do not require physical proximity to the consumer are especially attractive for offshoring.

Question 22

If offshore operations are not self-owned, a loss of in-house technological and managerial expertise can result.

Question 23

Near-shoring, where the work is done in nearby countries, is becoming less competitive because of rising labor and supply chain monitoring costs.

Question 24

Offshoring by U.S. businesses will soon fade as more and more business are returning home to native English speakers.

Question 25

In the push-pull production model of supply chain management, high volume-low volatility items use the pure push approach.

Question 26

Businesses compete primarily on cost and efficiency with high demand and high supply uncertainty products.

Question 27

Excessive swings in order quantities are called "the bullwhip effect."

Question 28

The bullwhip effect occurs when manufacturers or suppliers stockpile large quantities of inventory.

Question 29

Pooling and postponement are strategies for coping with demand uncertainty.

Question 30

Research indicates that some of the top causes of supply chain disruptions are adverse weather events and IT outages.

Question 31

Manufacturing and customer substitution are remedies for demand uncertainty.

Question 32

Outsourcing is a strategy to manage price volatility.

Question 33

Developing long-term partnering relationships with a few suppliers may not be a feasible strategy for short life cycle gadgets.

Question 34

Pooling reduces demand uncertainty by delaying final assembly until demand becomes more visible.

Question 35

Dedicated production lines, contractual safeguards, and good ground information scanning capabilities reduce IP risks.

Question 36

Critical thinking can conflict with supply chain performance.

Question 37

Paying off suppliers too early or too late can affect cash flows and hence performance of the supply chain.

Question 38

High purchasing overheads and a lack of organizational compliance with company ordering policy can hurt supply chain performance.

Question 39

Shrinkage or pilferage decreases as the supply chain becomes longer and more complex.

Question 40

The SCOR model of supply chain performance analyzes two perspectives: supplier facing and customer facing.

Question 41

Customer market growth and profitability and total profit margin of supply chain are metrics that can be used to assess supply chain management performance.

Question 42

Technologies like radio frequency identification (RFID) sensors now keep tabs on cargo in transit as well as individual pieces on a retailer's shelf.

Question 43

Outsourcing in sensitive industries, such as insurance and legal work, is decreasing because of government regulations.

Question 44

Even though cloud computing is increasing IT costs, it enhances supply chain visibility, quality, and reliability along the chain.

Question 45

Supply chain management involves managing

A) the human network
B) the assembly network
C) the distribution network
D) all of the above

Question 46

Which of the following is not a goal of supply chain management?

A) the matching of supply to demand to maximize revenue and profit
B) minimizing environmental and social costs
C) maximizing inventory and product variety
D) managing the flow of goods, cash, and technology

Question 47

Which of the following would not contribute to supply chain management failure?

A) raw material availability
B) highly stable customer demands
C) keeping track of the extensive supply network
D) failure to synchronize delivery of components

Question 48

Well-managed supply chains

A) can deliver a decisive competitive advantage by way of cost
B) focus risks
C) use a single best source for supplies
D) none of the above

Question 49

Top supply chain management concerns of senior executives include

A) volatility in commodity prices
B) volatility of customer demand
C) cost pressure in logistics/transportation
D) all of the above

Question 50

Supply chain managers are expected to do all of the following except

A) improve service and product quality
B) speed up delivery times
C) increase inventory levels
D) achieve a greener supply chain footprint

Question 51

Which of the following could most likely contribute to supply chain management success?

A) a lack of raw material availability
B) an extensive information technology network
C) keeping track of the extensive supply network
D) failure to synchronize delivery of components

Question 52

All of following are flows in a supply chain except

A) services
B) cash
C) information
D) products

Question 53

Which of the following is a key strategic-type decision in supply chain management?

A) determining what part of the value of the product should be made in-house
B) determining when to start the supply chain motor
C) synchronizing supply with demand
D) all of the above

Question 54

Outsourcing

A) lets the outsourcing firm focus on its product design competencies
B) transfers traditional external activities to outside vendors
C) makes sense when the cost of internal production is less than the combined cost of buying the product and managing suppliers
D) None of the above is true of outsourcing.

Question 55

Which of the following is a drawback of outsourcing?

A) sharing of proprietary technology
B) supplier economies of scale
C) better focus on core competencies
D) better quality of product or service

Question 56

Reasons for offshoring include all of the following except

A) time zone advantages
B) availability of a well-developed supply network
C) skills not available locally
D) to open up new markets

Question 57

Even though there are many advantages to outsourcing, some of the reasons to make products internally include

A) decreased competition
B) retaining proprietory knowledge
C) ease of training employees locally
D) none of the above

Question 58

A manufacturer produces a product with high fixed costs and utilizes proprietary technology. The best option for them would be to

A) outsource the product entirely
B) pursue a hybrid make-outsource policy
C) make the product internally
D) outsource the manufacturing of key components

Question 59

Offshoring has escalated in the past decade for reasons of

A) cost
B) quality
C) flexibility
D) all of the above

Question 60

Automobile manufacturers pursue both push and pull production strategies because of

A) high volumes of demand
B) economies of scale
C) high volatility of demand
D) all of the above

Question 61

Items with the lowest supply and demand uncertainties include all of the following except

A) milk
B) bread
C) fruit and produce
D) eggs

Question 62

The bullwhip effect

A) results in decreasing fluctuations as the demand travels upstream from the customer
B) increases the costs associated with inventory in the supply chain
C) results in fewer orders being placed by customers
D) occurs because of distortions of technology in the supply chain

Question 63

The bullwhip effect can be caused by all of the following except

A) too long a supply chain
B) forecasting inaccuracies
C) sales personnel incentives
D) shortages

Question 64

The benefits of pooling include

A) lower levels of safety stock
B) reduced transportation costs from plant to distribution center
C) reduction in demand uncertainties
D) all of the above

Question 65

Which of the following are strategies for coping with demand uncertainties?

A) pooling
B) postponement
C) both A and B
D) none of the above

Question 66

Which of the following is an advantage of the postponement technique?

A) fewer stock-outs
B) better quality of the product
C) decreased customer service levels
D) better package labelling

Question 67

Uncertainty in the supply network can be attributed to

A) transport network disruptions
B) foreign exchange fluctuations
C) intellectual property theft
D) all of the above

Question 68

To manage supply uncertainties, companies are

A) requiring reserve capacity from single suppliers
B) minimizing shipping times
C) keeping reserves of stock or capacity in supply, assembly, and distribution networks
D) fighting piracy and hijacking themselves

Question 69

Hedging strategies as a means of managing price volatility are appropriate for inputs

A) where a large shift in supply or in demand results in a small price change
B) where a small shift in supply or in demand results in a large price change
C) where supply and demand are independent of price changes
D) where substitute products exists

Question 70

A disadvantage of the single supplier strategy is

A) the risk of creating a new competitor
B) the lack of cost savings for customers
C) the risk of not being able to build a trusting relationship
D) all of the above

Question 71

Which one of the following management policies can damage supply chain performance?

A) silo thinking
B) paying off suppliers too early or too late
C) supply chain "savings" may not be reflected appropriately with financial P&L statements
D) all of the above

Question 72

Which one of the following supply chain management performance measures is not true of a well-managed supply chain?

A) a high percentage of on-time deliveries
B) a high percentage of order entry accuracy
C) a long lead time
D) lower inventory levels

Question 73

Which of the following recent technologies represents an opportunity to improve supply chain management?

A) sensors that keep tabs on cargo in transit
B) sensors that help keep tabs on perishable cargo in containers
C) sensor technology using next-generation 2D bar codes
D) all of the above

Question 74

In supply chain management, ethical and sustainability issues

A) are not as important as cost cutting measures
B) have become compliance, reputation, and competitive concerns
C) do not affect the supply chain strategy
D) are very costly to implement

Question 75

__________ is the management of networks that supply, assemble, and distribute products.

Question 76

The goal in managing supply chains is the matching of supply to demand to maximize __________ and __________.

Question 77

Companies are looking at supply chain management as a strategic means to gain a(n) __________.

Question 78

Actively managing a supply chain requires greater information sharing between __________ and __________.

Question 79

Supply chain managers are expected to __________ operating costs and __________ inventory levels.

Question 80

__________ is the decision between producing a component or a service internally or sourcing it externally.