Deck 25: Supply Chain Management

Question 1

Which of the following refers to a network of organizations and facilities that transforms raw materials into products delivered to customers?

A) supply chain
B) distribution channel
C) strategic business unit
D) collaboration system

Answer 1

A

Question 2

Which of the following is an example of inventory?

A) machinery
B) factories
C) raw materials
D) capital

Answer 2

C

Question 3

The three factors of information related to the supply chain are ________.

A) source, channel, and receiver
B) purpose, availability, and means
C) source, purpose, and outcome
D) purpose, means, and outcome

Answer 3

B

Question 4

The Automated Clearing House system among banks is an example of an interorganizational process.

Question 5

Which of the following statements about inventory is NOT true?

A) Managing an inventory requires balancing between availability and cost.
B) Inventory includes raw materials, in-process work, and finished goods.
C) Inventory management decisions are limited to the size of the inventory.
D) Managing inventory focuses on order frequency and the size of reorders.

Question 6

Which of the following statements about supply chains is correct?

A) Supply chains consist only of customers, retailers, distributors, manufacturers, and suppliers.
B) Not every supply chain has distributors and retailers.
C) Each element in the supply chain is connected to only one entity up and down.
D) The only source of revenue in a supply chain is the retailer.

Question 7

Which of the following is true about the bullwhip effect?

A) Small changes in demand at the supplier are amplified at each stage of the supply chain.
B) It is a natural dynamic that occurs because of the multistage nature of the supply chain.
C) It is strongly associated with erratic consumer demand.
D) It increases the overall profitability of the supply chain.

Question 8

Information systems ________.

A) reduce the speed of the supply chain
B) only partially eliminate the bullwhip effect
C) reduce the cost of inventories but increase their size
D) do not optimize supply chain profitability

Question 9

The ________ is used as the measure of supply chain speed.

A) dollar value of goods exchanged in a given period of time
B) amount of goods exchanged in a given period of time
C) total profit generated by the components of supply chain
D) time taken to transport goods from one component to another

Question 10

Because of the nature of the bullwhip effect,________ face maximum variation in demand.

A) suppliers
B) manufacturer
C) distributors
D) retailers

Question 11

Which of the following is an example of an interorganizational process?

A) sales force automation systems
B) enterprise resource planning systems
C) Automated Clearing House system among banks
D) customer relationship management systems

Question 12

________ refers to the methods by which information is transmitted.

A) Direction
B) Means
C) Purpose
D) Availability

Question 13

From which of the following do distributors order products from in a supply chain?

A) retailers
B) manufacturers
C) customers
D) suppliers

Question 14

Every supply chain has four basic components: suppliers,manufacturers,distributors,and retailers.

Question 15

The phenomenon in which the variability in the size and timing of orders increases at each stage up the supply chain is referred to as the ________.

A) synergistic effect
B) flanging effect
C) stack effect
D) bullwhip effect

Question 16

Which of the following refers to the way organizations share their information?

A) means
B) purpose
C) availability
D) intent

Question 17

The ________ of information can be transactional,such as orders and order returns,or it can be informational,such as the sharing of inventory and customer order data.

A) purpose
B) means
C) availability
D) direction

Question 18

________ is the difference between the sum of the revenue generated by the supply chain and the sum of the costs that all organizations in the supply chain incur to obtain that revenue.

A) Supply chain sustainability
B) Supply chain optimization
C) Supply chain profitability
D) Supply chain analytics

Question 19

The four major drivers that affect supply chain performance are ________.

A) suppliers, inventory, distributors, and information
B) facilities, working capital, transportation, and storage
C) suppliers, facilities, transportation, and distribution
D) facilities, inventory, transportation, and information

Question 20

An interorganizational process is one in which process activities occur in two or more independent organizations.

Question 21

What are interorganizational business processes?

Question 22

Profitability of the supply chain can be maximized only if all the organizations in the supply chain operate at their maximum profitability.

Question 23

The only source of revenue in the supply chain is the customer.

Question 24

True demand is the demand from the only party that introduces money into the system.

Question 25

All supply chains have distributors and retailers.

Question 26

In the term supply chain,each organization is connected to just one company up (toward the supplier)and down (toward the customer)the chain.

Question 27

Supply chain profitability is the difference between the sum of the revenue generated by the supply chain and the sum of the costs that all organizations in the supply chain incur to obtain that revenue.

Question 28

Explain the bullwhip effect with an example.

Question 29

Raw materials are not considered as inventory in the supply chain.

Question 30

The bullwhip effect reveals that retailers face the highest variations in demand.

Question 31

The bullwhip effect can be reduced by giving all participants in the supply chain access to consumer-demand information from the retailer.

Question 32

Define supply chain profitability.How is it different from individual organizational profitability?

Question 33

Erratic consumer demand is the major reason for the bullwhip effect.

Question 34

What is a supply chain? What are the four drivers that are crucial to the success of supply chain?

Question 35

The bullwhip effect explains the amplification of demand at various stages in the supply chain.

Question 36

As a factor affecting supply chain performance,facilities concern the location,size,and operations methodology of the places where products are fabricated,assembled,or stored.

Question 37

The bullwhip effect helps to increase the overall profitability of the supply chain.

Question 38

How do information systems affect supply chain performance?

Question 39

Use of information systems can increase the bullwhip effect.

Question 40

Supply chain speed refers to the dollar value of goods exchanged in a given period of time.