Deck 10: Supply Chain Management: Strategy and Design

Question 1

Enterprise Resource Planning ERP)is software that helps integrate many of the supply chain components by sharing and organizing information and data among supply chain members.

Answer 1

True

Question 2

A supply chain encompasses only the activities associated with the flow of goods and services.

Answer 2

False

Question 3

Traditionally,each supply chain member was viewed as a separate,stand-alone entity focused on its own goals.

Answer 3

True

Question 4

Use of radio frequency identification RFID)technology makes it possible for a customer to determine production schedules.

Question 5

One way to cope with the bullwhip effect is for supply chain members to share demand information.

Question 6

Final end-use customers are upstream members of a supply chain.

Question 7

Fill rate is one or the three key performance indicators in measuring supply chain performance.

Question 8

Collaborative planning,forecasting,and replenishment CPFR)is a useful tool supporting supply chain integration.

Question 9

Information is the essential link for coordination among all supply chain members.

Question 10

The bullwhip effect occurs when slight to moderate demand variability becomes magnified as demand information is transmitted back upstream.

Question 11

The supply chain operations reference SCOR)model reports the fraction of orders filled by a distribution center in a specific time period.

Question 12

Supply chains for services are easier to define than supply chains for manufactured goods.

Question 13

A supply chain consists of an integrated group of processes to source,make,and store products.

Question 14

Increasing supply chain transparency only magnifies the bullwhip effect.

Question 15

Suppliers are upstream members of a supply chain.

Question 16

Globalization and advances in information technology are primary reasons why supply chain management has become a competitive priority for companies.

Question 17

Companies address uncertainty in their supply chains by holding extra inventory.

Question 18

E-business replaces physical exchange processes with electronic ones.

Question 19

Supply chain uncertainty and variability may result in incomplete and late orders.

Question 20

A computer-to-computer exchange of business documents in a standard format is known as electronic data interchange EDI).

Question 21

A company that produces printer cartridges had cost of goods sold last year of $629,462,423.The average value of inventory for raw materials,work-in-process,and finished goods are shown in the table below:

If the company operates 50 weeks per year then the weeks of supply in inventory would be

A)3.716
B)2.493
C)13.4546
D)28.33

Question 22

The suppliers in a supply chain are referred to as ______________ supply chain members.

A)downstream
B)midstream
C)upstream
D)none of the above.

Question 23

A company that produces printer cartridges had cost of goods sold last year of $629,462,423.The average value of inventory for raw materials,work-in-process,and finished goods are shown in the table below:

If the company operates 50 weeks per year then the number of inventory turns would be

A)3.720
B)2.493
C)13.4546
D)28.33

Question 24

Inventory turnover is computed by

A)dividing the cost of goods sold by the average aggregate inventory value.
B)dividing the average aggregate inventory value by costs of goods sold.
C)multiplying the average aggregate inventory value by cost of goods sold.
D)subtracting cost of goods sold from the average aggregate inventory value.

Question 25

A company that produces specialized video equipment had cost of goods sold last year of $127,000,000.The average value of inventory for raw materials,work-in-process,and finished goods are shown in the table below:

If the company operates 50 weeks per year then the weeks of supply in inventory would be

A)4.898
B)0.098
C)10.209
D)35.75

Question 26

A company that produces small electric motors for treadmills had cost of goods sold last year of $241,000,000.The average value of inventory for raw materials,work-in-process,and finished goods are shown in the table below:

If the company operates 365 days a year the days of supply being held in inventory is

A)44.35
B)27.39
C)8.23
D)0.1215

Question 27

Because value chain and supply chain have similar meanings they are often used interchangeably.

Question 28

Information sharing among supply chain members will typically result in all of the following except

A)faster response times.
B)early problem detection.
C)an increased bullwhip effect.
D)greater trust and confidence among supply chain members.

Question 29

A computer-to-computer exchange of business documents in a standard format is known as

A)e-business.
B)electronic data interchange EDI).
C)radio frequency identification RFID).
D)point-of-sale data.

Question 30

Distributors,warehouses,and retailers are referred to as _____________ supply chain members.

A)downstream
B)upstream
C)procurement
D)none of the above.

Question 31

One way to reduce the bullwhip effect is for supply chain members to

A)make ordering decisions independently of each other.
B)create demand forecasts independently of other supply chain members.
C)share demand forecasts with other supply chain members.
D)restrict information flows between supply chain members.

Question 32

All of the following are performance metrics in the SCOR system,except

A)perfect order fulfillment.
B)production flexibility.
C)value-added productivity.
D)asset fulfillment.

Question 33

The supply chain for a service tends to be more compacted and less extended that a supply chain for a manufactured good.

Question 34

Which of the following is not a key to effective supply chain management?

A)communication among members
B)independence among members
C)collaboration among members
D)trust among members

Question 35

Increased uncertainty and variability in a supply chain typically results in

A)faster deliveries.
B)more accurate order fulfillment.
C)larger inventories.
D)lower costs.

Question 36

The fraction of orders filled by a distribution center or warehouse within a specific time period is referred to as the

A)inventory turnover.
B)inventory supply time.
C)fill rate.
D)aggregate orders processed.

Question 37

A company that produces specialized video equipment had cost of goods sold last year of $127,000,000.The average value of inventory for raw materials,work-in-process,and finished goods are shown in the table below:

If the company operates 50 weeks per year then the number of inventory turns would be

A)0.0979
B)4.3795
C)8.9784
D)10.2090

Question 38

Which of the following is not one of the three key performance indicators KPI)used to measure supply chain performance?

A)inventory turnover
B)postponement rate
C)inventory days of supply
D)fill rate

Question 39

Suppliers and customers rarely participate in the design of a supply chain.

Question 40

Supply chain management focuses on integrating and managing the flow of manufactured goods,services and related information.

Question 41

Companies resist establishing green supply chains for all the following reasons except that

A)the market is soft for products with green attributes.
B)green manufacturing requires costly new equipment and practice.
C)green initiatives lower costs because fewer resources are consumed.
D)green practices face additional government,societal and social pressures.

Question 42

List and explain the three key supply chain performance indicators.

Question 43

What processes comprise the supply chain and how are the processes integrated?

Question 44

What is the bullwhip effect and how does it occur?

Question 45

What is a supply chain?

Question 46

What is the role of information and information technology in managing the supply chain?

Question 47

All the following are enablers of efficient supply chain management except

A)bar codes.
B)price tags.
C)RFID tags.
D)the Internet.

Question 48

_______________________ is not a perceived advantage of radio frequency identification RFID)technology.

A)Loss of personal privacy
B)Reduced stock-outs
C)Prevention of fraud or theft
D)Lower distribution costs

Question 49

Who are the upstream and downstream supply chain members?

Question 50

The bullwhip effect can

A)increase inventories.
B)increase demand.
C)increase customer service levels.
D)increase capacity.

Question 51

List and define four information technology supply chain enablers.

Question 52

Supply chain management focuses on integrating and managing the flow of

A)services.
B)information.
C)goods.
D)all the above.

Question 53

Supply chain integration does not involve __________________ among supply chain members.

A)providing information
B)collaborating on replenishment
C)reducing competition
D)coordinating work flows

Question 54

Supply chain processes include

A)procurement.
B)production.
C)distribution
D)all of the above.

Question 55

All the following are approaches used in risk pooling within a supply chain except

A)reducing the number and variety of parts.
B)creating flexible capacity.
C)encouraging large orders.
D)combining inventories from multiple locations into one location.

Question 56

Which of the following is not a key performance indicator used in supply chain management?

A)Fill rate
B)Days of supply
C)Cost of goods
D)Inventory turns.