Question 1

Suppliers have power when the cost of switching to an alternative supplier is expensive.

Accepted Answer

When the cost of switching to an alternative supplier is expensive, suppliers have power because their customers are less likely to leave for another supplier. This gives the suppliers bargaining power to negotiate higher prices or better terms.

Question 2

A program that involves planning and controlling the actions with upstream suppliers including supplier analysis, order execution, payment, and performance monitoring is known as a decision support system.

Accepted Answer

The program described is actually a supply chain management system, not a decision support system.

Question 3

Enterprise resource planning (ERP) coordinates data flows from finance, accounting, and operations to provide management with a seamless overview of the performance of a business.

Accepted Answer

This statement accurately describes what ERP does.

Question 4

Which of the following is the first element of a supply chain management system?

Accepted Answer

Procurement is the first element of a supply chain management system as it involves the process of sourcing and acquiring goods and services needed for the production process. It is the initial step that sets the foundation for the rest of the supply chain.

Question 5

Business process reengineering refers to:

Accepted Answer

Business process reengineering is the management program that analyzes the processes of a business and tries to redesign them so that all non-value-added activities are eliminated. The goal is to make the process more efficient and effective.

Question 6

Which of the following is a characteristic of the pull philosophy of supply chain management?

Accepted Answer

The pull philosophy of supply chain management involves producing by actual demand, meaning that production is initiated only when a customer places an order or when point-of-sale data indicates that a customer has purchased an item. This approach helps to reduce inventory costs and minimize waste.

Question 7

The adoption of a supply chain management perspective poses no risks.

Accepted Answer

The adoption of a supply chain management perspective can pose several risks, such as increased complexity, dependency on external parties, supply chain disruptions, and increased costs. However, these risks can be mitigated through proper planning, risk management, and collaboration with supply chain partners.

Question 8

Management by objectives refers to:

Accepted Answer

Management by objectives (MBO) is a management process in which managers and employees work together to set, record, and monitor goals for a specific period of time. It involves a collaborative goal-setting process between a manager and an employee in which specific objectives are agreed upon, progress towards those objectives is monitored, and feedback is provided.

Question 9

Cost savings brought about by supply chain management systems can produce amplified improvements in cash flow.

Accepted Answer

Supply chain management systems can help streamline processes and reduce costs, leading to improved cash flow. This is because cost savings can go directly to the bottom line, increasing profit margins and ultimately generating more cash for the business.

Question 10

The procurement element of a supply chain management system involves:

Accepted Answer

The procurement element of a supply chain management system involves purchasing the necessary components, selecting reliable suppliers, and establishing strategic alliances to ensure a steady supply of goods and services. The other options listed are important elements of supply chain management but do not pertain specifically to procurement.

Question 11

Benchmarking is:

Accepted Answer

Benchmarking is a process in which a business compares its processes or performance metrics with those of world leaders in particular processes or industries and attempts to emulate them. It is a way to improve the efficiency and effectiveness of a business by learning from successful organizations. Option A refers to goal setting, Option B refers to process improvement, Option C refers to organizational learning, and Option E refers to team structure.

Question 12

Businesses must consider the relative power of both their suppliers and their customers.

Accepted Answer

Businesses must consider the relative power of both their suppliers and customers in order to effectively manage their supply chain and pricing strategies. Understanding the bargaining power of both parties can help businesses negotiate better terms and maintain profitability.

Question 13

A program that allows for data manipulation or the use of analytical modeling tools to provide a better decision-making environment, which may involve the use of mathematical programming models to optimize decisions, is known as a supplier relationship management program.

Accepted Answer

The program described in the statement is actually a decision support or business intelligence program, not a supplier relationship management program.

Question 14

The advent of cloud computing can make supply chain management systems available for small businesses.

Accepted Answer

Cloud computing allows small businesses to access sophisticated supply chain management systems without having to invest in expensive hardware and software. This can level the playing field and enhance competitiveness in the market.

Question 15

A learning organization is:

Accepted Answer

A learning organization is an organization that is able to adapt to changing situations and pressures; it places a premium on organizations and individuals that can gain knowledge from the environment. It is focused on continuous learning and improvement, encouraging individuals to learn and share their knowledge with others to achieve common goals. It is not about mapping out objectives, redesigning processes, emulating world leaders, or pooling people with similar skills for work assignments.

Question 16

Cloud-based software provides several substantial benefits to small businesses: lowers software and ware costs, installation is significantly easier, maintenance and training costs are lower, and free upgrades may sometimes be available.

Accepted Answer

Cloud-based software does provide all of these benefits to small businesses.

Question 17

Which of the following is a feature of supply chain management?

Accepted Answer

Supply chain management requires organizations to overcome myopia of just being concerned with their immediate suppliers and customers. This means that organizations need to consider the entire supply chain and the flow of goods, information, and finances throughout the chain in order to optimize performance and achieve competitive advantage.

Question 18

Supply chain management requires several types of software packages and the need to successfully integrate them.

Accepted Answer

Supply chain management involves multiple stages and processes that require various software packages to handle them efficiently. These software packages include inventory management systems, transportation management systems, warehouse management systems, demand planning systems, and many others. Integrating these software packages is crucial to achieving efficient and effective supply chain management.

Question 19

Which of the following elements of supply chain management system is associated with a firm transforming its raw inputs into goods and services?

Accepted Answer

Operations is the element of supply chain management that involves the transformation of raw inputs into goods and services through the use of production processes and technology. Innovation involves creating new products or processes, distribution is the process of delivering goods to customers, integration involves coordinating activities across different functions or organizations, and procurement involves acquiring the necessary inputs for production.

Question 20

The operations element of a supply chain management system involves:

Accepted Answer

The answer of The operations element of a supply chain...

Quiz 11: Supply Chain Management: You Better Get It Right