Deck 10: Supply Chain Design

Question 1

A supply chain is a network of firms that work together to eventually supply an end product to the consumer.

Answer 1

True

Question 2

Designing a chain design is a complex process involving the transformation and movement of a product from raw material/component stage to assembly, storage, and distribution.

Answer 2

True

Question 3

Profit in a supply chain accumulates primarily with the manufacturer.

Answer 3

False

Question 4

The design, branding, and manufacturing components of the supply chain generate the most profit.

Question 5

Supply chain design is a strategic instrument to gain an operational advantage.

Question 6

A company's competitive advantage resides with its area of competence, its supply chain design, and its supply chain management.

Question 7

Besides cost, supply chain agility (or lack thereof) also affects competitive advantage.

Question 8

Supply chain agility is especially critical in volatile product markets such as automobiles and foodstuff.

Question 9

Clothing retailers like Zara and H&M and manufacturers like Samsung are examples of highly agile supply chain designs.

Question 10

Supply chain management coordinates and motivates the entities in a supply chain to work together for common profits.

Question 11

Effective supply chain management tries to coordinate the flow of materials, services, and information with demand.

Question 12

A value chain describes the activities that capture the most value in a supply chain, where such value resides, and to whom the value accrues.

Question 13

One researcher has identified the three key objectives of supply chain design as ability, adaptability, and alignment.

Question 14

There are three distinct elements in supply chain design: supply network, assembly, and alignment.

Question 15

If the product demand is steady, then the supply chain network does not need to be agile.

Question 16

When firms offer a low variety of services or products and demand predictability is high, then responsive supply chains work best.

Question 17

The supply network is designed based on how the product is put together and the ease of disassembly (i.e., product architecture).

Question 18

Products that are modular in design-that is, can be broken down into subunits-are best suited to outsourcing.

Question 19

Pratt and Whitney, a jet engine manufacturer, would have an efficient supply network if they outsourced production.

Question 20

Supplier proximity to the market is desirable where flexibility is required.

Question 21

Lean supply networks are organized to deliver at least cost, and locations are usually global.

Question 22

Assembly network design calls for choices about the type and location of product assembly points.

Question 23

Distribution networks are the first element in supply chain design.

Question 24

Distribution networks include manufacturers, assemblers, and retailers.

Question 25

Walmart prefers ownership of the logistical network between its distribution centers (DCs) and its suppliers primarily to reduce costs and increase profits.

Question 26

Adaptability is a valuable attribute of supply chains, affording an option to switch to alternative supply chains in times of need.

Question 27

Supply chain designers use a variety of qualitative modeling techniques, such as the Delphi method and market surveys.

Question 28

A supply chain design consists of three basic networks: supply, demand, and distribution.

Question 29

Supply chain network design uses simulation and optimization tools to model and find best-performing configurations of supply, assembly, and distribution networks.

Question 30

The human factor is one of the most common reasons that supply chains fail.

Question 31

Supply chain designs can be evaluated on shipment size and destination charges.

Question 32

The defining measure of supply chain design performance is the ability of the chain to minimize costs.

Question 33

Risk analysis and recovery planning are key tasks in developing a resilient supply chain design.

Question 34

Globalization has increased the length, the number of nodes, and the time to supply aspects of supply chain designs.

Question 35

The goal of sustainability in supply chain design is to create a design that minimizes habitat destruction and consumption of natural resources
.

Question 36

Recent trends in supply chain design indicate that warehousing and distribution are increasingly being located on the basis of proximity and infrastructure availability.

Question 37

Technology advances such as RFID enable better supply chain design.

Question 38

Which one of the following is true about supply chain design?

A) Supply chain design applies to both manufacturing and service organizations.
B) Supply chain design applies only to manufacturing because it deals with flow of materials.
C) Supply chain design includes only operations that deal with physical products.
D) Supply chain design is only about suppliers and how they sell their products.

Question 39

Supply chain design is about choosing the number and location of all of the following except

A) suppliers
B) customers
C) warehouses
D) distribution centers

Question 40

All of the following are factors that influence the supply chain design except

A) facility location
B) location tax differences
C) proximity of customers to the distribution centers
D) costs

Question 41

The factor(s) we consider in developing a supply chain design include

A) transportation loads and costs
B) currency fluctuations
C) manufacturing production plans
D) all of the above

Question 42

While supply chain design focuses primarily on the arrangement of physical facilities and logistics, globalization focuses on

A) considerations of information and cash flows
B) shortened product life cycles
C) the flow of materials
D) the flow of human labor to factories

Question 43

From a value chain perspective, which of the following captures the most value in the supply chain?

A) suppliers
B) designers
C) assemblers
D) research and development

Question 44

Supply chain design is important as a strategic instrument because it

A) offers employment to software designers
B) provides a map of the distribution network
C) gives a competitive advantage
D) consists of logistics, transportation, storage, and distribution facilities owned by various companies

Question 45

Which of the following is a distinct element in the template for supply chain design?

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

Question 46

Which one of the following is true about issues affecting the supply network?

A) the extent to which parts of the product can be outsourced to suppliers
B) the correct choice between efficiency and ability
C) the number of customers
D) time to market launch

Question 47

In the assembly network of the supply chain, functional and hybrid products can be made to stock because of

A) lower forecast accuracy
B) the comparative stability in demand
C) customer hesitancy to look elsewhere
D) a centralized assembly process

Question 48

The distribution networks component in the supply chain design determines

A) where in the network products will be stored
B) how the products will be distributed
C) the proximity of the distribution centers to the customers
D) all of the above

Question 49

The goal of a supply chain network design should be efficiency when

A) Product variety is high.
B) Demand is highly unpredictable.
C) The competitive priority is flexibility.
D) The competitive priority is cost.

Question 50

Agility in a supply chain is most appropriate when

A) The product is well established.
B) Local supply sources are kept as standbys with larger higher priced purchases.
C) Consumer preferences are fickle.
D) Supply chain partners emphasize volume discounts.

Question 51

Traditional manufacturer-distributor-dealer-retailer networks work well when

A) Markets are very volatile.
B) An agile supply network exists to respond rapidly to market-driven changes in the product mix.
C) Product variety is unlimited.
D) None of the above are true.

Question 52

Adaptability in a supply chain design

A) calls for a trade-off between efficiency and risk reduction
B) increases management of customer relationships
C) decreases management complexity
D) all of the above

Question 53

A step included in the process of supply chain designs is

A) competitor comparison
B) the choice between outsourcing and in-house production
C) identification of the customers
D) all of the above

Question 54

Firms desire to control any factor that can

A) increase modularization
B) increase profit margins
C) potentially lower sales revenue or profits
D) decrease outsourcing

Question 55

Which of the following is not a tool for supply chain design?

A) linear programming
B) Pareto charts
C) simulation
D) statistical analysis

Question 56

Supply chain design can be done by which of the following tools?

A) simple spreadsheets
B) linear simulation
C) statistical heuristics
D) none of the above

Question 57

Users of network design tools tend to be

A) companies with large, tiered distribution networks
B) companies with locally distributed manufacturing and supply networks
C) companies that seek to identify competitors
D) companies with large budgets

Question 58

Supply chain designs go wrong due to all of the following reasons except

A) dysfunctional technology
B) supply chain partners
C) human factors such as ignorance and self-preservation
D) poorly designed algorithms

Question 59

Supply chain designs can be evaluated on

A) amount of technology used
B) shipment sizes
C) total end-to-end cost
D) none of the above

Question 60

The most time consuming and difficult task in simulation and optimization when designing a supply chain is

A) obtaining product and facility information
B) assembly distribution flow rates
C) analyzing capacities and costs
D) all of the above

Question 61

A service firm such as Starbucks can use which of the following operational metrics to assess its performance?

A) safety in operations
B) service measured by on-time delivery
C) energy and natural resource footprint
D) all of the above

Question 62

Which of the following is not a strategic metric used to assess supply chain design?

A) efficiency
B) adaptability
C) ability
D) agility

Question 63

Rapid changes in consumer tastes would be best met with a supply chain that can

A) serve a mature, stable demand
B) respond quickly to surprises in design and volume
C) supply a cost-conscious market
D) be as efficient as possible

Question 64

Key tasks in developing a resilient supply chain design include

A) risk analysis
B) keeping pace with market changes
C) on-time delivery
D) none of the above

Question 65

A trend that is shaping supply chain designs is

A) compliance responsibilities
B) product standardization
C) outsourcing
D) all of the above

Question 66

Which of the following is not a trend in supply chain design?

A) sustainability
B) modularization
C) flexibility
D) innovative thinking in logistics and intermodal transport

Question 67

Which of the following is not an example of sustainability in a supply chain design?

A) Motorola manufacturing a carbon-free handset for Sprint's green manufacturing program
B) Timberland re-designing its shoe boxes to reduce material costs
C) Takatu's use of logging to clear forests to make roadways for more efficient transportation
D) Nike's use of recyclable bottles to make athletic clothing

Question 68

Supply chain designs have become more flexible by

A) having capacity redundancies
B) transferring some assembly and repair tasks to the distribution network
C) splintering long dedicated supply chains into shorter chains
D) all of the above

Question 69

A __________ is a network of firms working together to supply an end product or service to the customer.

Question 70

__________ is a strategic instrument to gain competitive advantage, spread risks, and create options for alternative sourcing.

Question 71

__________ is the speed of response to changes in product design or demand (or lack thereof), and it also affects competitive advantage.

Question 72

__________ coordinates and motivates the entities in a supply chain to work together for common goals.

Question 73

The __________ describes the activities that capture the most value in a supply chain, where such value resides, and to whom the value accrues.

Question 74

Quantitative modeling techniques such as __________ and __________ are integral tools for supply chain designers.

Question 75

__________ and __________ are key tasks in developing a resilient supply chain design.

Question 76

Products that can be broken down into standardized and customized components require a mix of __________ and __________ supply chain designs.

Question 77

__________ and __________ are increasingly being located on the basis of country and region tax and tariff efficiencies.

Question 78

Identify and sketch out the supply chain for a T-shirt made in China but sold in the U.S. Be sure to include the raw material supply network, assembly network, and distribution network.

Question 79

Outline and describe an iPhone supply chain.

Question 80

Discuss the three distinct elements in supply chain design: supply network, assembly, and distribution.