Deck 6: Supply Chain Management

Question 1

3PL companies:

A)Offer their products in a most efficient manner
B)Are also known as third-place location firms
C)Have chosen to outsource at least portions of their supply chain management function
D)Provide services including handling product distribution and returns,receiving materials and managing warehouses

Answer 1

Provide services including handling product distribution and returns,receiving materials and managing warehouses

Question 2

Moore's law states that:

A)The value of a network increases with the square of the number of elements connected to it
B)Computing power doubles every 18-24 months
C)If anything can go wrong,it will,and usually at the most inappropriate moment
D)A project will always take longer than expected,even after taking into account Metcalfe's Law

Answer 2

Computing power doubles every 18-24 months

Question 3

What is the most expensive transportation mode?

A)Air
B)Trucking
C)Railroads
D)Water

Answer 3

Air

Question 4

Which of the following statements about supply chain management (SCM)is correct?

A)SCM programs are putting ever greater emphasis on the finance function
B)SCM coordinates and integrates several activities into a process by linking the most important partners in the chain
C)The goal of SCM is to deliver the right product at the right time,while yielding the lowest possible costs
D)SCM enables manufacturers to actively plan and collaborate across a distributed supply chain

Question 5

The inventory turnover is calculated using the annual cost of goods sold and the aggregate inventory value on average.

Question 6

Which of the following is not a basic area of consideration in supplier management?

A)Supplier relationships
B)Selection of suppliers
C)Cross-docking
D)Certification and auditing

Question 7

What is the least expensive transportation mode?

A)Air
B)Trucking
C)Railroads
D)Water

Question 8

Which of the following costs includes taxes,insurance on buildings,depreciation of buildings,and maintenance and repairs?

A)Capital costs
B)Risk costs
C)Ordering costs
D)Storage costs

Question 9

Purchasing tends to follow three practices;which of the following is NOT one of them?

A)They leverage their buying power
B)They work with and help suppliers reduce costs
C)They commit to a small number of dependable suppliers
D)All of the above are practices followed by purchasing in highly effective organizations

Question 10

Which of the following is not a factor that is increasing the need to better manage the supply chain?

A)Optimization of their own value by most segments in the supply chain
B)Global competition and outsourcing
C)E-commerce and telecommunications
D)Outsourcing and shorter life cycles

Question 11

bullwhip effect occurs more often when the sole transmission of information occurs by handoffs from one link of the chain to the next.

Question 12

What term describes the execution of business transactions in a paperless environment,primarily through the Internet?

A)E-business
B)Electronic data interchange
C)Electronic commerce
D)Bar coding

Question 13

The term supply chain generally refers to all the activities involved in supplying an end user with a product or service.

Question 14

Which of the following is false about supply chains?

A)Just-in-time deliveries (JIT)and lean manufacturing dictate a demand chain
B)When customers of a service are also suppliers,they should be attracted
C)A supply chain is suggestive of a system of production in which the customer "pulls" the product
D)Suppliers that are not customers must be chosen carefully
E)All of them are false

Question 15

__________ may be thought of as the ability of one organization's computer to communicate with another's computer.

A)E-business
B)Electronic data interchange
C)E-commerce
D)Redundancy

Question 16

__________ inventories exist because materials must be moved from one location to another.

A)Buffer
B)Anticipation
C)Transit
D)Cycle

Question 17

Which of the following is true about the bullwhip effect?

A)Variability in demand increases from the factory stage downstream to the customer stage
B)This cycle is prevalent in just about every industry
C)Lead times between the stages of the supply chain tend to be very short
D)Information lags stemming from large lot sizes with infrequent orders may be a cause

Question 18

Logistics consist(s)of the following,EXCEPT:

A)Compensation and incentives
B)Storage and warehousing
C)Transportation and information processing
D)Inventories and distribution

Question 19

Organizations that process natural or basic resources as raw materials or other essential inputs to obtain their outputs will locate near their resources if one of the following conditions holds:

A)High economies of scale exist for the product
B)The raw material can be shipped long distance before being processed
C)There is a large loss in size or weight during processing.
D)Both A and C

Question 20

Water is a good transportation mode for small,high-value,or perishable items.

Question 21

What is the difference value chain and demand chain.How do they relate to one another?

Question 22

Increasing global __________ is a major factor driving the need to better manage the supply chain.

Question 23

Risk costs include interest on money invested in inventory and in the land,buildings,and equipment necessary to hold and maintain the inventory.

Question 24

To ensure that contracted supplies will be available when needed,organizations periodically conduct supplier __________ of their vendors,checking for potential production or delivery problems,quality assurance,design,improvement procedures and corrective actions.

Question 25

To what does the term supply chain generally refer?

Question 26

What does a positive cash conversion cycle (CCC)represent?

Question 27

Boeing produces passenger aircraft as well as military jets,but not everything delivered is made by them.B/E Aerospace,Recaro,or Zodiac Aerospace makes the seats that passengers sit in.Boeing requires these suppliers to pre-assemble the seats for quick installation in the aircraft during construction.What actions can the seat manufacturers do to reduce costs that can be passed on to Boeing?

Question 28

Under sole-sourcing arrangements,customers involve suppliers from the design stage,asking for larger deliveries of higher quality items in large batches that enable greater savings.

Question 29

Some outputs such as dams,roads,buildings and bridges may be relatively __________.

Question 30

Outsourcing products to oversee manufacturing may help minimize the retail cost of these products,but it comes at risk.For example,American TV manufacturers Magnavox and Zenith outsourced the production of TVs to companies in Asia,and as a result have gone out of business.What actions could these companies have done to minimize the chance of being "hollowed out" and remain in business?

Question 31

There are many purposes for holding inventory,but,in general,inventories have five basic functions.What are they?

Question 32

Some benefits of electronic data interchange include less redundancy,improved customer service,and better order tracing.

Question 33

Name a few benefits of having an efficient Supply chain.

Question 34

What is logistics?

Question 35

Logistics includes the responsibility for acquiring the goods and services the organization needs,by any means.

Question 36

In a typical organization,how much cost does the supply chain represent?

Question 37

Intranets are private networks to allow the organization to securely interact with external parties.

Question 38

Air transport can significantly reduce inventory and warehousing costs,as well as improve customer service.

Question 39

Enterprise resource planning systems are designed to collect and interpret customer-based data.

Question 40

What is the focus of the supply chain strategy in situations where the goods are basic commodities?

Question 41

How could a company like PepsiCo Inc.utilize an intranet network and an extranet network?

Question 42

"The bullwhip effect can occur whenever any one of the three conditions is extreme enough
to cause the boom-bust cycle.Briefly describe these conditions."

Question 43

You just started working for The King Co.,an international corporation that sells mattresses.On your first day your manager tells you that the company just upgraded to and ERP system.What impact does this have on your company?

Question 44

"To maintain the appropriate level of
inventory,decision rules are needed to answer two basic questions.What are they?"

Question 45

Inventories are usually classified into four forms.What are they?

Question 46

Why would total cost minimization be an unreasonable objective for an inventory system of Twinkies located inside your local grocery store?

Question 47

What are the steps in the six-step process to leverage the location decision to enhance the development of long-term capabilities?

Question 48

There are essentially five broad categories of costs associated with inventory systems.What are they?

Question 49

Organizations that are highly effective in SCM purchasing seem to follow what three practices?