Question 1

What are the 3 R's of supply chain efficiency?&#10;A)Right producer, right raw materials, and right storage.&#10;B)Right product, right place, and right time.&#10;C)Right product, right time, and right seller.&#10;D)Right producer, right price, and right seller.&#10;

Accepted Answer

Supply chain efficiency can be measured using three factors: the right good, the right destination, and the right time at the minimum cost. If any of these requirements are not met there may be a lack of efficiency in the supply chain.

Question 2

What is one of the reasons that a supply chain fails? Choose the best option.&#10;A)No proper contracts with suppliers.&#10;B)Lack of storage capacity.&#10;C)Inability to figure out the nature of demand.&#10;D)Inability to meet deadlines.&#10;

Accepted Answer

There are many causes behind supply chain failure, but one is the inability to figure out the nature of demand. This deficiency at times leads to a conflicting setup of the supply chain.

Question 3

The two important styles of supply chain set up, efficient and responsive, were introduced by __________.&#10;A)Marshall A. Fisher&#10;B)F) Y. Edgeworth&#10;C)Jeffery Karrenbauer&#10;D)Shane Savage&#10;

Accepted Answer

Marshall L. Fisher (1997) published the article: "What is the right supply chain for your product?", which laid out both of these styles.

Question 4

The main goal of a responsive supply chain is to _______________.&#10;A)Respond at once to competitors' pricing.&#10;B)Avoid the hassle of warehousing finished goods.&#10;C)Buy raw materials at once when required.&#10;D)Answer at once to market demand.&#10;

Accepted Answer

The main goal of a responsive supply chain is to answer at once to the market demand. This type of model is best suitable when predicting demand is difficult and there are often mistakes in forecasting.

Question 5

What is the preferred duration of a product life cycle when a responsive type of supply chain is used?&#10;A)Long&#10;B)Short&#10;C)Constant&#10;D)Unpredictable&#10;

Accepted Answer

According to Fisher's theory, when the product life cycle is short a responsive supply chain strategy should be used. This is because the more responsive the supply chain is, the better demand can be served. As the life cycle is short, it is better to be responsive in order to generate as much profit as possible.

Question 6

The main goals of an efficient supply chain are to _______________.
i. Coordinate the material flow
ii. Reduce storage of inventory
iii. Increase the efficiency of the producer to the fullest

A)ii and iii.
B)i and ii.
C)i and iii.
D)i, ii, and iii.

Accepted Answer

The main goals of an efficient supply chain are to _______________.
i. Coordinate the material flow
ii. Reduce storage of inventory
iii. Increase the efficiency of the producer to the fullest

A)ii and iii.
B)i and ii.
C)i and iii.
D)i, ii, and iii.

Question 7

What will be the pricing strategy on a responsive and an efficient supply chain respectively?&#10;A)Lower margin, higher margin.&#10;B)Higher margin, lower margin.&#10;C)Both will have higher margin.&#10;D)Equal margin.&#10;

Accepted Answer

Supply chain efficiency refers to the expenditure in production and distribution of goods to consumers, so an efficient supply chain will have a lower margin. On the other hand, a responsive, quick-working supply chain will demand a higher cost and will therefore have a higher margin.

Question 8

What are the major enablers of a responsive supply chain?
i. Value chain
ii. Information technology and systems
iii. Knowledge management

A)i and ii.
B)ii and iii.
C)i and iii.
D)i, ii, and iii.

Accepted Answer

When these three factors meet, they result in a responsive and flexible supply chain. Suppliers of raw materials also have a major role in the whole chain. If any one of these factors is missing, it will lead to lower responsiveness.

Question 9

What are the three most important ways a firm can create a buffer against the amount of demand for particular goods?&#10;A)Shipping, inventory, and warehouse.&#10;B)Inventory, machinery, and retailer.&#10;C)Inventory, capacity, and time.&#10;D)Shipping, raw material, and time.&#10;

Accepted Answer

Precautionary inventory, extra storage space, and safety lead time all create a time buffer needed to act accordingly when faced with a demand fluctuation. These are the three principal ways to protect against fluctuation in the amount of demand.

Question 10

____________ distorts demand information within the supply chain.&#10;A)The bullwhip effect.&#10;B)Replenishment lead-time.&#10;C)Exponential smoothing.&#10;D)The square root rule.&#10;

Accepted Answer

Many firms believe that the bullwhip effect distorts demand information within the supply chain, with different phases having a very different estimate of what demand looks like. The result, however, will likely be a loss of supply chain coordination.

Deck 6: Efficiency