Deck 1: Supply Chain Management: an Overview

Question 1

The world economy still favors the United States and European countries, even though China and India can participate in the global economy much more readily.

Answer 1

False

Question 2

Globalization has had little effect on consumers.

Answer 2

False

Question 3

Outsourcing is a fairly new concept.

Answer 3

False

Question 4

Logistics, in its simplest form,

A) is a military term, as it was developed originally to supply the battlefield.
B) combines inbound logistics with the outbound logistics of physical distribution.
C) is another term for transportation management.
D) does not involve customer service or other related functions.

Question 5

A key element in Wal-Mart's ability to discount brand name products was an understanding of the criticality of efficiency in its logistics and supply chain system.

Question 6

Supply chain managers no longer need to worry about suboptimization in light of today's technology.

Question 7

Most retailers are essentially supply chain companies since they:

A) dominate the consumer market.
B) own their warehouses and trucks.
C) buy products produced by others.
D) engage in off-shore sourcing.

Question 8

Some individuals describe the current consumer as the "click here" generation because they:

A) all have Internet access.
B) no longer wait for information to be "pushed out" to them.
C) buy so much merchandise online.
D) take little time to make purchasing decisions.

Question 9

Beginning in the late 1970s and into the 1980s, the US transportation industry was deregulated. The net result was a less competitive environment.

Question 10

The Supply Chain Concept:

A) is very new and considered cutting edge technology.
B) is highly dependent on computerization.
C) is not always well understood by senior managers.
D) is developed from the previous Physical Distribution concept.

Question 11

The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.

Question 12

Which of the following flows only one way as illustrated in Figure 1-4?

A) Information
B) Products and services
C) Financials
D) None of these answers

Question 13

Which of the following is not one of the external forces driving the rate of change and shaping our economic and political landscape?

A) Government policy
B) Technology
C) Environmental concerns
D) Globalization

Question 14

Traditionally, information has been viewed as flowing in the opposite direction of products, that is, from the market/customer back to the wholesalers, manufacturers, and vendors.

A) This is still true and has not changed.
B) Computerization has greatly increased the flow of information from the source.
C) The "Big Box" stores have developed their own sources.
D) None of these answers.

Question 15

The demographics of our society has changed because:

A) the "Baby Boom" generation is now turning 60.
B) of the increase in two-career families and single-parent households.
C) of immigration.
D) birth rates have changed.

Question 16

Identify the proper sequence of the three "flows" in the supply chain. 1. Product
2) Cash
3) Information

A) 1, 2, 3
B) 1, 3, 2
C) 2, 1, 3
D) 3, 2, 1
E) None of these answers

Question 17

It is predicted that social networks such as Facebook and Twitter will influence supply chains because of their impact on customer demand and the speed of information transfer.

Question 18

Supply and demand has become less volatile as managers have become more adept at controlling the elements.

Question 19

Outsourcing involves:

A) moving company facilities away from the home office.
B) hiring foreign nationals to manage parts of the business.
C) obtaining materials, parts, and products from other companies.
D) building a factory in another country.

Question 20

One of the major challenges of supply chain management is:

A) forward buying.
B) maintaining the visibility of inventory.
C) building safety-stock inventory.
D) pushing inventory back to vendors.

Question 21

Complexity in the supply chain is caused by:

A) the number of SKUs.
B) locations of customers and suppliers.
C) transportation requirements.
D) all of these answers.

Question 22

What is the significance of Globalization in Supply Chain Management?

Question 23

The Pharmaceutical industry has been challenged in recent years. It is still an important part of the economy but it needs to make changes in its supply chains and related activities to be more competitive and financially viable in the 21ˢᵗ century. Discuss three of those changes.

Question 24

Describe the concept of an "integrated supply chain" that begins with the supplier's supplier and ends with the final consumer.

Question 25

Discuss how globalization and consolidation in supply have increased complexity.

Question 26

What is the role of Transportation Management in connection with Supply Chains?

Question 27

Discuss how Performance Measurement can affect Supply Chain Management.

Question 28

Explain how today's consumers are empowered and how they impact Supply Chain Management.

Question 29

Which of the following is not part of the Supply Chain network?

A) Plants
B) Stores
C) Terminals
D) Distribution centers

Question 30

Cost/value refers to:

A) getting the best value for the money spent.
B) U.S. firms competing in the global arena.
C) the importance of cost and value at the very end of the supply chain.
D) product variety.

Question 31

A critical outcome of the supply chain is to deliver:

A) profits.
B) the right product to the right place.
C) cost/value.
D) on management's expectations.

Question 32

Performance measurement is important because:

A) it allows firms to rate competitors.
B) without it, managers would not know how the global economy is doing.
C) companies presently operating in the European Economic Community need to understand how its competitors are doing.
D) lower-level metrics in an organization must connect directly to the high-level performance to achieve goals.

Question 33

Which of the following is not an external factor that is shaping the economic and political landscape?

A) Globalization
B) Government policy and regulation
C) Technology
D) Organizational division

Question 34

The challenge to develop and sustain an efficient and effective supply chain(s) requires organizations to address a number of issues. Which of the following is not included in them?

A) Complexity
B) Inventory deployment
C) Inventory carrying costs
D) Technology