Deck 1: Supply Chain Management: an Overview

Question 1

Even though there are references to supply chain management in the 1980s, SCM did not capture the attention of senior-level management until the 1990s.

Answer 1

True

Question 2

Outsourcing involves
A) moving company facilities away from the home office.

A) obtaining materials, parts, and products from other companies.
B) building a factory in another country.
B) hiring foreign nationals to manage parts of the business.

Answer 2

C

Question 3

SAB should examine their off-shore purchasing policy, even though the products are sourced from the U.S.

Answer 3

True

Question 4

Most retailers are essentially supply chain companies since A. they dominate the consumer market.

A) own their warehouses and trucks.
B) they buy products produced by others.
C) engage in off-shore sourcing.

Question 5

Supply and demand has become less volatile as managers become more adept at controlling the elements.

Question 6

A key element in Wal-Mart's ability to discount brand name products was an understanding of the criticality of efficiency in its logistics and supply chain system.

Question 7

The world economy still favors the United States and European countries, even though China and India can participate in the global economy much more readily.

Question 8

The U.S. transportation system was deregulated in the 1930s and 1940s in response to economic conditions and World War 2

Question 9

One of the major challenges of supply chain management is

A) forward buying.
B) maintaining the visibility of inventory.
C) building safety-stock inventory.
D) Pushing inventory back to vendors.

Question 10

Supply chain managers no longer need to worry about suboptimization in light of today's technology.

Question 11

The first decade of the twenty-first century was a period of rapid change for organizations, especially businesses.

Question 12

The Supply Chain Concept

A) is very new and considered cutting edge technology.
B) is highly dependent of computerization.
C) is not always well understood by senior managers.
D) developed from the previous Physical Distribution concept.

Question 13

Globalization has had little effect on consumers.

Question 14

Which of the below is not one of the external forces driving the rate of change and shaping our economic and political landscape?

A) Government policy
B) Technology
C) Environmental concerns
D) Globalization

Question 15

Some individuals describe the current consumer as the "click here" generation because

A) we all have Internet access.
B) we no longer wait for information to be "pushed out" to us.
C) we buy so much merchandise on line.
D) we take little time to make purchasing decisions.

Question 16

The demographics of our society has changed because

A) the "Baby Boom" generation is now turning 60.
B) of the increase in two-career families and single-parent households.
C) of immigration.
D) birth rates have changed.

Question 17

It is expected that some or all of the BRIC countries (Brazil, Russia, India & china) will replace the so-called VISTA countries (Vietnam, Indonesia, S. Africa, Turkey and Argentina) as low cost producers of various products and services.

Question 18

Outsourcing is a fairly new concept.

Question 19

Logistics, in its simplest form,

A) is a military term, as it was developed originally to supply the battlefield.
B) combines inbound logistics with the outbound logistics of physical distribution.
C) is another term for transportation management.
D) does not involve customer service or other related functions.

Question 20

It is predicted that social networks such as Facebook and Twitter will influence supply chains because of their impact on customer demand and the speed of information transfers.

Question 21

Explain how today's consumers are empowered and how they impact Supply Chain Management.

Question 22

Traditionally, information has been viewed as flowing in the opposite direction of products, that is, from the market/customer back to the wholesalers, manufacturers, and
Vendors.

A) This is still true and has not changed.
B) Computerization has greatly increased the flow of information from the source.
C) The "Big Box" stores have developed their own sources.
D) None of these answers

Question 23

The challenge to develop and sustain an efficient and effective supply chain(s) requires organizations to address a number of issues. Which is not included?

A) complexity
B) inventory deployment
C) inventory carrying costs
D) technology

Question 24

Complexity in the supply chain is caused by

A) the number of SKUs.
B) locations of customers and suppliers.
C) transportation requirements.
D) All of these answers.

Question 25

What is the significance of Globalization in Supply Chain Management?

Question 26

Which of these flows only one way as illustrated in Figure 1-4?
A) financials

A) information
B) None of these answers
B) products and services

Question 27

One of the four supply chain flows in Figure 1 - 8 that has received increased attention from supply chain managers due to the growth in technology is:

A) Product flow
B) Information flow
C) Cash flow
D) Demand flow

Question 28

Discuss how globalization and consolidation in supply have increased complexity.

Question 29

Cost/Value refers to
A) U.S. firms competing in the global arena.

A) getting the best value for the money spent.
B) the importance of cost and value at the very end of the supply chain.
C) product variety.

Question 30

Performance measurement is important because
A) companies presently operating in the European Economic Community need to understand how its competitors are doing.

A) it allows firms to rate competitors.
B) lower-level metrics in an organization must connect directly to the high-level performance to achieve goals.
B) without it, managers would not know how the global economy is doing.

Question 31

Which of the following is not part of the Supply Chain network?

A) plants
B) stores
C) terminals
D) distribution centers

Question 32

What is Vendor Managed Inventory?

Question 33

Discuss how Performance Measurement can affect Supply Chain Management.

Question 34

Describe the concept of an "integrated supply chain" that begins with the supplier's supplier and ends with the final consumer.

Question 35

What is the role of Transportation Management in connection with Supply Chains?

Question 36

A critical outcome of the supply chain is to deliver

A) profits.
B) the right product to the right place.
C) cost/value.
D) on management's expectations.