Question 1

A recent survey of 1,000 senior executives indicated that approximately 30 percent of them had implemented analytics focused on supply chain activities.

Accepted Answer

The answer of A recent survey of 1,000 senior executives...

Question 2

The general idea behind third-party logistics is that one company allows a specialist company to provide it with one or more logistics functions.

Accepted Answer

This is the basic concept of third-party logistics where a company outsources one or more logistics functions to a specialized logistics provider.

Question 3

A fourth-party logistics provider is a supply chain facilitator that has achieved ISO 9000 certification.

Accepted Answer

ISO 9000 certification refers to a set of quality management standards, and does not specifically relate to fourth-party logistics providers. While a 4PL may choose to pursue ISO 9000 certification as a way to demonstrate their commitment to quality and continuous improvement, it is not a requirement or guarantee of their capabilities as a supply chain facilitator.

Question 4

An individual firm can be involved in only one supply chain at a time.

Accepted Answer

An individual firm can be involved in multiple supply chains simultaneously, depending on their business activities and partnerships with other companies.

Question 5

A best-of-breed approach chooses the best software application for a particular function.

Accepted Answer

A best-of-breed approach involves selecting the best software application for a particular function or task, rather than relying on a single integrated system for all functions. This allows organizations to achieve greater effectiveness and efficiency in their operations.

Question 6

The overall global climate for business has shifted toward allowing more cooperation among firms-which should help supply chain management.

Accepted Answer

The statement is true. The trend in the global business climate is toward more cooperation and collaboration among firms, which can lead to better supply chain management.

Question 7

Regulatory considerations represent a bigger obstacle than political considerations to supply chain management.

Accepted Answer

Political considerations can often pose larger obstacles to supply chain management than regulatory considerations because they can lead to sudden changes in trade policies, tariffs, and international relations, which can disrupt existing supply chains more unpredictably than regulatory environments that usually change more slowly and predictably.

Question 8

Broadly speaking,organizations can pursue three primary methods-vertical integration,formal contracts,and informal agreements-when attempting to integrate their supply chains.

Accepted Answer

This statement is true. Organizations have three primary methods for integrating their supply chains: vertical integration, formal contracts, and informal agreements.

Question 9

Supply chain agreements should be designed to reward all participants when collaborative ventures are successful and all participants should share the consequences when these ventures are less successful than desired.

Accepted Answer

This statement emphasizes the importance of designing supply chain agreements that promote collaboration and shared responsibility for outcomes. When all parties are incentivized to work together towards a common goal, the chances of success are increased and risks can be shared among all participants. This approach is increasingly recognized as essential for achieving sustainable and resilient supply chains.

Question 10

The decision to use third-party logistics companies can be driven by strategic or tactical considerations.

Accepted Answer

The statement is true. Companies may choose to use third-party logistics providers based on either strategic (long-term) or tactical (short-term) considerations, such as cost savings, efficiency, or market expansion.

Question 11

Two causes of failure in third-party logistics arrangements involve unreasonable expectations and lack of flexibility.

Accepted Answer

Unreasonable expectations such as expecting the third-party logistics provider to solve all problems without internal support or unrealistic cost savings goals can lead to failure. Lack of flexibility such as not being open to changes in the supply chain or not allowing the third-party logistics provider to utilize their expertise can also contribute to failure.

Question 12

Today,computer hardware is a larger barrier than computer software to interorganizational collaboration.

Accepted Answer

This statement is outdated and no longer true. With the advancement of technology, computer hardware has become much more accessible and affordable, whereas software has become more complex and requires specialized knowledge for effective collaboration. Therefore, computer software is now a larger barrier to interorganizational collaboration than computer hardware.

Question 13

Actual senior management commitment to supply chain management occurs in one of every two organizations.

Accepted Answer

Studies and surveys on supply chain management practices indicate that while many organizations recognize the importance of supply chain management, actual senior management commitment varies widely and is not as high as one in every two organizations. Commitment levels are often influenced by the organization's size, industry, and strategic priorities, leading to a lower overall rate of true senior management commitment across all organizations.

Question 14

Supply chain integration tends to be more challenging in global,as opposed to domestic,supply chains.

Accepted Answer

Global supply chains involve more complex variables such as longer distances, multiple languages, varying regulations and laws, cultural differences, and geopolitical risks. These factors can make it more challenging to integrate and coordinate the supply chain activities of different countries and ensure smooth and efficient operations. In contrast, domestic supply chains typically involve fewer variables and fewer complications, making integration easier.

Question 15

One cause of the bullwhip effect is asymmetrical information among supply chain participants.

Accepted Answer

Asymmetrical information among supply chain partners can lead to misinterpretation of demand signals, leading to the bullwhip effect.

Question 16

Top management is sometimes hesitant to fully commit to supply chain management.

Accepted Answer

Top management may be hesitant to fully commit to supply chain management due to various reasons like lack of understanding of its importance, concerns about costs and resources required, and reluctance to change established processes.

Question 17

Supply chain analytics combines technology with manual employee effort to identify trends,perform comparisons,and highlight opportunities in supply chain processes,even when large amounts of data are involved.

Accepted Answer

Supply chain analytics does involve the use of technology, such as data analysis software and machine learning algorithms, but it also requires manual effort from employees to interpret and apply the insights generated by these tools. Together, these approaches can help identify patterns and opportunities for improving supply chain processes.

Question 18

Corporate cultures should not be considered when designing a supply chain.

Accepted Answer

Corporate cultures play a crucial role in the success of a supply chain. The values, attitudes, and beliefs of a company influence its supply chain strategy, supplier selection, and relationship management. Understanding the corporate culture is essential to designing an effective supply chain that aligns with the company's goals and objectives.

Question 19

Horizontal integration refers to where one organization owns multiple participants in a supply chain.

Accepted Answer

Horizontal integration refers to a strategy where a company acquires or merges with other companies at the same level in the production process or industry, not different stages of the supply chain.

Quiz 5: The Supply Chain Management Concept