Question 1

Designing a competitive supply chain network is increasingly challenging because of:
A) Increasing complexity and product proliferation
B) Vertical integration
C) Outsourcing
D) Alliance development
E) All of the above

Accepted Answer

A

Question 2

Information technology design enables:
A) Value-segmenting
B) Data sharing and communication
C) Theory of Constraints
D) ERP implementation
E) a and c

Accepted Answer

Information technology design facilitates data sharing and communication between different systems or stakeholders, allowing for better integration and collaboration. Value-segmenting, theory of constraints, and ERP implementation may also be enabled or supported through IT design, but they are not the primary purpose or benefit of information technology design.

Question 3

The relationship view of process management seeks to:
A) Enable/enhance coordination between supply chain partners
B) Reduce costs across the supply chain
C) Define how goods and services will be produced
D) Utilize defined cost metrics
E) All of the above

Accepted Answer

The relationship view of process management focuses on building and enhancing relationships between supply chain partners to improve coordination and collaboration. It is not primarily focused on reducing costs, defining production processes, or utilizing cost metrics.

Question 4

Variation is a challenge because it adds ________ and _______ to a process:
A) Demand and supply
B) Uncertainty and visibility
C) Flexibility and visibility
D) Complexity and uncertainty
E) None of the above

Accepted Answer

Variation adds complexity and uncertainty to a process as it introduces inconsistency and unpredictability in the inputs, outputs, and overall flow of the process.

Question 5

One element of supply chain network structure includes:
A) Number of companies in the supply chain
B) Structural dimensions
C) Vertical integration
D) Supplier management
E) a and b

Accepted Answer

One element of supply chain network structure consists of the number of companies in the supply chain, known as the network scope. Another element is the structural dimensions, which include the physical, information, and financial flows of the supply chain. Therefore, option E, which includes both choices "a" and "b," is the correct answer. Vertical integration and supplier management are important aspects of supply chain management, but they do not fall under the category of network structure.

Question 6

A high-volume, low variability demand business requires which type of supply chain structure:
A) Flexibility
B) Cost-efficient
C) Segmented
D) Responsive
E) a and b

Accepted Answer

A high-volume, low variability demand business requires a supply chain structure that is focused on cost-efficiency, as it is essential to keep costs low in order to maintain profitability. While flexibility and responsiveness are important in other supply chain structures, they are not as critical in this scenario as the demand is consistent and predictable. A segmented supply chain structure may be beneficial for businesses with diverse product lines or customer segments, but it is not necessary for a high-volume, low variability demand business.

Question 7

__________ is a strategy for managing increased supply chain complexity.
A) Outsourcing
B) Segmentation
C) ERP systems
D) Alliance development
E) All of the above

Accepted Answer

Segmentation is a strategy that involves breaking down the supply chain into smaller, more manageable segments to control complexity and ensure efficient management of the different components. Outsourcing, ERP systems, and alliance development can also help manage supply chain complexity, but may not be as effective on their own without a segmented approach. Hence, option B is the best choice.

Question 8

One approach to help manage variation is:
A) Eliminate constraints
B) Reduce buffers
C) Reduce capacity
D) Increase complexity
E) Increase process flexibility

Accepted Answer

Increasing process flexibility allows for adjustments to be made in response to variation, helping to manage it effectively. Eliminating constraints or reducing buffers could actually lead to an increase in variation, while reducing capacity or increasing complexity may not have a direct impact on managing variation.

Question 9

A motorcycle factory can produce 500 units of product in one day under normal conditions and 800 maximum units with overtime labor. In December, the factory produced 700 units. What was the factory's design capacity utilization in December?
A) 87.5%
B) 95%
C) 160%
D) 100%
E) None of the above

Accepted Answer

Design capacity utilization is calculated as (Actual Output / Design Capacity) * 100. Here, the actual output is 700 units, and the design capacity is 800 units (maximum units with overtime labor), so the utilization is (700 / 800) * 100 = 87.5%.

Question 10

A key element that supports supply chain strategy is:
A) Supply chain network design
B) Customization
C) Vertical integration
D) Sustainability
E) None of the above

Accepted Answer

Supply chain network design is a key element of supply chain strategy as it involves the determination of the optimal way to organize and manage resources, processes, and activities to effectively and efficiently meet customer demands while minimizing costs. It involves decisions regarding the number and location of facilities, modes of transportation, inventory policies, and supplier selection, all of which play a crucial role in determining the performance and competitiveness of a supply chain. Customization, vertical integration, and sustainability are important factors that can enhance the effectiveness of the supply chain network design, but they are not sufficient on their own to define the entire supply chain strategy.

Question 11

Firm ownership of upstream suppliers is known as:
A) Capacity management
B) Vertical integration
C) Core competencies
D) Outsourcing
E) a and b

Accepted Answer

Firm ownership of upstream suppliers is known as vertical integration.

Question 12

A process is a set of activities designed to create:
A) An output for the customer
B) Integration
C) Reduced costs
D) Constraints
E) Innovation and experience

Accepted Answer

A process is typically meant to produce an output for the customer, whether it's a product or a service. Integration, reduced costs, constraints, and innovation may all be components of a process, but none of them on their own define the purpose of a process.

Question 13

A motorcycle factory can produce 500 units of product in one day under normal conditions and 800 maximum units with overtime labor. In December, the factory produced 700 units. What was the factory's effective capacity utilization in December?
A) 87.5%
B) 95%
C) 160%
D) 100%
E) None of the above

Accepted Answer

The answer of A motorcycle factory can produce 500 units...

Question 14

Capacity available under normal conditions is called:
A) Design capacity
B) Effective capacity
C) Overtime capacity
D) Outsourcing capacity
E) None of the above

Accepted Answer

The capacity available under normal conditions is referred to as effective capacity. This is the actual maximum capacity of a system or process under normal circumstances. Design capacity is the maximum output capacity, overtime capacity is the capacity that can be utilized by working beyond normal hours, and outsourcing capacity is the capacity that can be gained by outsourcing operations to other companies. None of these fully capture the concept of capacity available under normal conditions.

Question 15

One example of a strategy to manage increased variation is:
A) Inventory buffers
B) Reducing flexibility
C) IT systems
D) Outsourcing
E) a and b

Accepted Answer

Inventory buffers can help to absorb fluctuations in demand and supply, allowing for smoother operations and reducing the effects of increased variation. Reducing flexibility, IT systems, and outsourcing may not necessarily address the root causes of variation and can potentially create new challenges.

Question 16

A supply chain can be viewed as a system of processes that:
A) Focus on costs
B) Are vertically integrated
C) Cuts across organizations to deliver value
D) Are separate within an organization
E) Eliminate bottlenecks

Accepted Answer

A supply chain involves multiple organizations and functions that work together to deliver value to the end customer. Therefore, it cuts across organizations rather than being separate within an organization. While cost is an important consideration, it is not the sole focus of a supply chain. Vertical integration and the elimination of bottlenecks may be components of a supply chain but do not fully capture its definition.

Question 17

In managing processes, the view that focuses on efficiency is:
A) Operations
B) Distribution
C) Transactional
D) Relationship
E) None of the above

Accepted Answer

The answer of In managing processes, the view that focuses...

Question 18

__________ refers to the maximum amount of output that can be achieved by a process.
A) Flexibility
B) Variability
C) Network
D) Capacity
E) Reliability

Accepted Answer

Capacity refers to the maximum amount of output that a process can achieve.

Question 19

Two key aspects of the supply chain network include:
A) Physical structure and management
B) Vertical integration and outsourcing
C) Flexibility and responsiveness
D) IT and suppliers
E) None of the above

Accepted Answer

The answer of Two key aspects of the supply chain...

Question 20

From TOC, "exploiting the constraint" means to:
A) Define the constraint
B) Eliminate the constraint
C) Find ways to best utilize the constraint
D) Reduce variation
E) None of the above

Accepted Answer

"Exploiting the constraint" in TOC means finding ways to best utilize the constraint. It involves identifying the bottleneck in the system, increasing its capacity, and making sure other parts of the system are aligned with it to maximize throughput. This is different from defining or eliminating the constraint, which are also important steps in TOC but come before exploiting the constraint. Reducing variation is also important, but not the same as exploiting the constraint.

Quiz 3: Network and System Design

Designing a competitive supply chain network is increasingly challenging because of:

Information technology design enables:

The relationship view of process management seeks to:

Variation is a challenge because it adds __ and _ to a process:

One element of supply chain network structure includes:

A high-volume, low variability demand business requires which type of supply chain structure:

__________ is a strategy for managing increased supply chain complexity.

One approach to help manage variation is:

A motorcycle factory can produce 500 units of product in one day under normal conditions and 800 maximum units with overtime labor. In December, the factory produced 700 units. What was the factory's design capacity utilization in December?

A key element that supports supply chain strategy is:

Firm ownership of upstream suppliers is known as:

A process is a set of activities designed to create:

A motorcycle factory can produce 500 units of product in one day under normal conditions and 800 maximum units with overtime labor. In December, the factory produced 700 units. What was the factory's effective capacity utilization in December?

Capacity available under normal conditions is called:

One example of a strategy to manage increased variation is:

A supply chain can be viewed as a system of processes that:

In managing processes, the view that focuses on efficiency is:

__________ refers to the maximum amount of output that can be achieved by a process.

Two key aspects of the supply chain network include:

From TOC, "exploiting the constraint" means to: