Deck 7: Supply-Chain Management

Question 1

Reintermediation can be defined as:

A) a change in the supply chain eliminating the need for an intermediary.
B) a process where companies constantly reinvent themselves in order to survive.
C) the "fundamental rethinking and redesign" of business processes.
D) the process of using the internet to reassemble buyers, sellers, and other partners in new ways.
E) the reintroduction of a previously obsolete product.

Answer 1

the process of using the internet to reassemble buyers, sellers, and other partners in new ways.

Question 2

Which of the following terms describes a change in the supply chain where the provider and consumer interact directly with each other to eliminate the need for an intermediary?

A) encryption
B) reintermediation
C) disintermediation
D) business intelligence
E) reverse logistics

Answer 2

disintermediation

Question 3

Enterprise resource planning systems have the following relationship to SCM:

A) little or no relationship exists
B) SCM systems provide no support to enterprise systems
C) ERP systems provide support and data to SCM systems
D) the ERP system cannot operate if SCM is in place
E) the ERP system can only operate if SCM is in place

Answer 3

ERP systems provide support and data to SCM systems

Question 4

The following are very important technologies for SCM:

A) extranets, EDI, ERP, and XML
B) EDI, VPNs, and SANs
C) advanced storage devices and EDI
D) shareware and freeware
E) extranets, gopher, and FTP

Question 5

Reverse logistics can be described as:

A) the process of getting suppliers to speed up delivery.
B) a method of back ordering products that are not available.
C) the ability to handle excessive volumes of small products.
D) a means of dealing with returned products.
E) the process of managing incoming materials.

Question 6

The warehousing component of the order fulfillment process does not include the following:

A) receiving
B) picking
C) organizing
D) packaging
E) credit checks

Question 7

What are the key elements for establishing a relationship of trust?

A) realignment, performance measurement, dispute resolution, security
B) realignment, contract negotiations, security, patent protection
C) order fulfillment, system integration, shipping and transportation planning
D) strategy creation, realignment, dispute resolution
E) contract negotiations, supply chain management

Question 8

The internet economy has resulted in numerous changes to the business world. Supply chain management has:

A) been primarily unaffected by the internet economy.
B) reduced in importance due to the internet economy.
C) increased in importance due to the internet economy.
D) been replaced by computers in the internet economy.
E) followed the same processes despite the internet economy.

Question 9

The travel/airline industry has been completely transformed due to the advent of internet communication. Customers now:

A) have access to a great deal of information.
B) can book flights in a variety of ways.
C) can make an informed decision.
D) have instant access to fares and schedules.
E) all of the above

Question 10

There are several forces which have caused major changes within business today. Which of the following is not mentioned in the textbook as one of those forces?

A) outsourcing
B) enterprise resource planning
C) mass customization
D) globalization
E) wireless networking

Question 11

The order fulfillment process must ensure that a business can:

A) manufacture goods rapidly.
B) acquire raw materials efficiently.
C) deliver products quickly.
D) optimize shipping by size/weight/location.
E) all of the above

Question 12

Early attempts to improve the efficiency of the supply chain made use of the following for communication between supply chain firms:

A) electronic data interchange
B) CRM
C) ERP
D) Application Service Providers
E) fax and phone

Question 13

The implementation of an ERP system may result in the following:

A) less training required for employees
B) a substantial decrease in network usage
C) reduction in manual processes
D) improved decision making
E) business intelligence

Question 14

Shipping and transportation planning are important to supply chain management. The following is an example of a task in shipping and transportation planning:

A) analyzing transportation alternatives
B) evaluating where products should be stored within the finished goods warehouse
C) optimizing the receipt and storage of raw materials
D) providing the accounting department with a list of scheduled production
E) arranging supplier deliveries to the plant

Question 15

Logistics groups within companies would tend to:

A) have little reliance upon technology.
B) have a great deal of reliance upon technology.
C) spend a great deal of time talking to customers.
D) deliver products door to door.
E) be located offsite.

Question 16

_____ is a software tool and technique that has emerged to turn raw data into business information through data mining.

A) ASP
B) Business Processing
C) Business Intelligence
D) ERP
E) Cloud Computing

Question 17

Supply chain management can best be described as:

A) an age old process for getting customers to buy products.
B) a set of processes for managing a warehouse.
C) the efficient exchange of data between companies.
D) a global phenomenon affecting many countries.
E) a set of processes to optimize product delivery to customers.

Question 18

The use of partners in the supply chain to control and monitor inventory levels is known as:

A) supply chain management.
B) customer relationship management.
C) warehouse inventory management.
D) just-in-time inventory.
E) vendor-managed inventory.

Question 19

What is c-commerce?

A) the continuation of ecommerce
B) customized-commerce
C) chain-commerce
D) collaborative-commerce
E) computer-commerce

Question 20

The following is an example of reengineering a process:

A) adding a step to the approval of cheque requisitions
B) removing a step in the approval of purchase orders
C) changing a process from manual to electronic and removing several steps
D) hiring consultants to evaluate workflow
E) implementing EDI with a supplier

Question 21

Which of the following represents the front-end and back-end processes necessary to convert an order into a sale?

A) order processing
B) warehousing
C) shipping and transportation planning
D) order fulfillment
E) production control

Question 22

In the process of outsourcing, a partner must be willing and able to react quickly to required product changes and demand fluctuations.

Question 23

_____ is an arrangement whereby companies shift facilities and activities to other organizations and then integrate them into their global supply chains.

A) vendor-managed inventory
B) application hosting
C) supply chain management
D) offloading
E) outsourcing

Question 24

A fundamental service provision that documents and defines the parameters of a supplier-customer relationship is called a:

A) supplier-customer agreement (SCA).
B) supplier-customer provision (SCP).
C) service level agreement (SLA).
D) service provision (SP).
E) supplier-customer bond (SCB).

Question 25

Disintermediation refers to a change in the supply chain where the manufacturer or service provider and the consumer do not interact directly with each other.

Question 26

A pull system is a supply chain model in which the production of supplies is not determined by the needs of the customers.

Question 27

A push system is a supply chain model in which the production of suppliers is determined by the demand of customers.

Question 28

In June 2003, Walmart promoted ________ as a SCM efficiency measure aimed at improving the speed and accuracy of information flows in the supply chain and to reduce stockouts.

A) business process reengineering
B) reverse logistics
C) cloud computing
D) RFID tags
E) outsourcing

Question 29

Business intelligence software is primarily used to address critical issues in supply chain management, such as information analysis and information sharing.

Question 30

Moment of truth is the critical moment in a service transaction where the customer's expectations are either met, exceeded, or disappointed.

Question 31

The major difficulty in legacy systems was:

A) cost of implementation and maintenance.
B) outdated technology.
C) coordinating and synchronizing data sets.
D) poor operating systems.
E) inconsistent performance.

Question 32

Which strategy has become important in dealing with reverse logistics?

A) shipping
B) internet
C) supply chain management
D) RFID tags
E) outsourcing

Question 33

Research has shown that vendor-managed inventory (VMI) often leads to reduced inventory levels but substantially higher stockout rates because suppliers are not keen enough to ensure that consumers are always able purchase their products.

Question 34

The most popular applications being moved to the cloud include:

A) email, archiving, and storage.
B) upstream, internal, and downstream components.
C) accounting, inventory, and marketing.
D) security, privacy, and confidentiality.
E) procurement, operations, and sales.

Question 35

Reverse logistics is the process through which customers can return items purchased, either for a refund or for repair or replacement under warranty.

Question 36

Mass customization is one of the major forces of change that has affected Supply Chain Management (SCM).

Question 37

Retail Link helped Walmart shift responsibility for inventory management from:

A) in-store managers to suppliers.
B) suppliers to in-store managers.
C) managers to cashiers.
D) marketing to operations.
E) procurement to sales.

Question 38

The army weapons industry is an example of an industry that has experienced some level of disintermediation.

Question 39

Fundamental rethinking and radical redesign of existing processes is also called ________.

A) organizational change
B) business reinvention
C) business process reengineering
D) process recycling
E) data mining

Question 40

In terms of supply chain management (SCM), business processes include:

A) procurement processes
B) internal operations
C) sales processes
D) other fundamental processes in the business
E) all of the above

Question 41

What is the supply chain?

Question 42

Define what is meant by an optimal level of inventory.

Question 43

The booking area of the travel industry has shifted from a pull to a push system.

Question 44

What is the cash-to-cash cycle?

Question 45

The advent of ebusiness has shifted some of the power from companies to consumers.

Question 46

Business process change can occur at three major levels. List and describe these levels.

Question 47

Describe the two major categories of disintermediation.

Question 48

The relationship of trust and partnership in the supply chain can be created more quickly if discussions between parties centre on five factors. Name these factors.

Question 49

Describe how the growth of cloud computing is affecting SCM.

Question 50

Describe how the internet has impacted individuals and suppliers in terms of price sensitivity.