Question 1

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

Accepted Answer

Vendor analysis helps in determining the most suitable supplier by considering various factors like their price competitiveness, quality of goods or services, reputation in the market, and after-sale services.

Question 2

Logistics includes all of these except:

Accepted Answer

Logistics involves the movement and management of materials, goods, and products within a supply chain. Customer selection is not a part of logistics, as it refers to the process of choosing and attracting customers to a business.

Question 3

One of the biggest ethical risks in supply chain management is that the __________ supply chain member tends to be the one that suffers the blame and/or lost goodwill when something goes wrong.

Accepted Answer

The most visible supply chain member tends to be the one that suffers the blame and/or lost goodwill when something goes wrong. This could be the retailer or brand that consumers are familiar with or the supplier that is most well-known in the industry. It is important for all members of the supply chain to take responsibility for their actions and work towards ethical practices to avoid negative consequences.

Question 4

Event management is the advanced planning required for major performances such as concerts or conferences.

Accepted Answer

The answer of Event management is the advanced planning required...

Question 5

Which of the following is not a benefit of RFID?

Accepted Answer

Frequent deliveries of smaller shipments are not a stated benefit of RFID technology. The other choices are all benefits that can be gained from RFID implementation.

Question 6

In e-commerce, the front-end design is significantly more important than the back-end design.

Accepted Answer

Both front-end and back-end designs are crucial in e-commerce; the front-end focuses on user experience and interface, while the back-end ensures functionality, performance, and security, making both equally important for a successful e-commerce platform.

Question 7

The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically.

Accepted Answer

A global supply chain encompasses a larger number of suppliers and a wider range of locations, making it challenging for a company to monitor and ensure ethical practices throughout the entire chain.

Question 8

It is especially the case for small businesses that closer interactions and increased agility make __________ relatively more attractive.

Accepted Answer

The answer of It is especially the case for small...

Question 9

Creating an effective supply chain requires linking the marketing, distribution, and supplier channels.

Accepted Answer

Supply chain management involves connecting all the channels involved in getting a product or service to the customer, including marketing, distribution, and suppliers. An effective supply chain requires collaboration and coordination across these channels.

Question 10

Strategies to address supply chain risks include:
(I) risk avoidance.
(II) risk reduction.
(III) risk projection.
(IV) risk sharing.

Accepted Answer

(I) Risk avoidance involves choosing to not engage in activities or supply chains that have a high level of risk. This is often done when the potential cost of the risk outweighs the potential benefits of engagement.

(II) Risk reduction involves taking measures to reduce the likelihood or impact of a risk. For example, diversifying suppliers, implementing quality controls, or creating redundancies in the supply chain.

(III) Risk projection involves analyzing potential risks and predicting their likelihood and impact. This can help businesses prepare for and mitigate potential risks.

(IV) Risk sharing involves sharing the costs and responsibilities of managing risk with other parties in the supply chain. This can be done through contracts, insurance, or partnerships.

Together, these strategies can help businesses manage and mitigate supply chain risks. The best choice that includes all four strategies is A.

Question 11

Small changes in consumer demand can result in large variations in orders placed because of the:

Accepted Answer

The bullwhip effect is the phenomenon where small changes in consumer demand ripple through the entire supply chain, resulting in larger and larger variations in orders placed. As a result, there can be inefficient allocation of resources and excessive inventory buildup.

Question 12

Which of the following is not a goal of supply chain management?

Accepted Answer

"Lowest possible transportation costs" is not a goal of supply chain management because while minimizing transportation costs is important, it is not the only goal. Other important goals include on-time deliveries, building long-term relationships with suppliers, using small lot sizes to reduce inventory costs, and delivering products often directly to the place of use.

Question 13

RFID chips:
(I) are used to track goods in distribution.
(II) are used to track job progress in production.
(III) are used to provide special instructions to operators.
(IV) can be used in inventory record keeping.

Accepted Answer

RFID chips are commonly used in distribution to track goods (I) and in production to track job progress (II). They can also be used in inventory record keeping (IV). While RFID chips can theoretically provide special instructions to operators (III), this is not a primary use for them and is not among the most commonly cited applications.

Question 14

Decentralized purchasing can usually offer quicker response than centralized purchasing.

Accepted Answer

Decentralized purchasing allows for quicker decision making and response times as the process is not centralized and multiple individuals can make decisions simultaneously.

Question 15

Which of the following, while desirable from some perspectives, might actually increase the risk of supply chain reductions?
(I) fewer supply chain partners
(II) a shorter supply chain
(III) greater supply chain visibility

Accepted Answer

The answer of Which of the following, while desirable from...

Question 16

A factor that makes it desirable for business organizations to actively manage their supply chains is:

Accepted Answer

Increasing globalization has led to increased competition and the need to efficiently manage supply chains in order to stay competitive. This has made it desirable for business organizations to actively manage their supply chains. The other options (more potential vendors, downsizing, the Internet, and RFIDs) are all potential tools or factors that can aid in supply chain management but are not the sole reason for actively managing the supply chain.

Question 17

An advantage of decentralized purchasing is the attention given to local needs.

Accepted Answer

Decentralized purchasing allows for decision-making at a local level, which can result in a better understanding of local needs and preferences. This can lead to more tailored and effective purchasing decisions.

Question 18

Which of these aspects of supply chain management are especially concerning to small business?
(I) customer reliability
(II) inventory management
(III) purchasing costs
(IV) risk management
(V) international trade

Accepted Answer

The answer of Which of these aspects of supply chain...

Question 19

Some firms have structured their procurement function to include both centralized and decentralized purchasing.

Accepted Answer

This statement is true as some firms have a hybrid procurement organization that includes both centralized and decentralized purchasing depending on the category of spend, location, and other factors. The goal is to maximize efficiencies and cost savings while ensuring that procurement decisions align with business strategy.

Question 20

One disadvantage to RFID is that it requires a clear "line of sight" to operate.

Accepted Answer

RFID technology does not require a clear "line of sight" to operate. In fact, it can work even when the tag is obscured by physical objects, as long as it falls within the RFID reader's range.

Quiz 15: Supply Chain Management