Question 1

The "facility utilization" strategy places a high priority on making sure that all supply chain facilities create value only for the individual organizations.

Accepted Answer

The "facility utilization" strategy places a high priority on making sure that all supply chain facilities create value not only for the individual organizations, but also for the entire supply chain.

Question 2

The fourth principle of supply chain management is to differentiate products closer to the customer.

Accepted Answer

Differentiating products closer to the customer is indeed the fourth principle of supply chain management. This involves customizing products or services to meet the specific needs of customers in different regions or markets, which can help to increase customer satisfaction and loyalty.

Question 3

The primary goal of a differentiation strategy is make your firm's products appear to be different than your competitors' products.

Accepted Answer

False

Question 4

The seven principles of supply chain management have stood the test of time very well.

Accepted Answer

The seven principles of supply chain management, as identified by Dr. Michael Porter and described in his book "Competitive Advantage: Creating and Sustaining Superior Performance", have been widely accepted and used in supply chain management practices for over 30 years, demonstrating their enduring relevance and effectiveness.

Question 5

Outsourcing is a way to reduce asset investment as well as to address strategic and customer- focused objectives.

Accepted Answer

Outsourcing allows companies to reduce investment in assets such as equipment and facilities, while also allowing them to focus on core strategic and customer-facing objectives.

Question 6

When a firm "sources strategically," it is
A) working together with customers and suppliers in a creative, positive way.
B) seeking least cost vendors.
C) matching product and raw material flows to minimize transportation costs.
D) reacting to current competitive situations.

Accepted Answer

Sourcing strategically means working collaboratively with both customers and suppliers to create a mutually beneficial relationship that enhances the value of goods and services. This can include aligning business strategies, sharing risks and rewards, and creating a cooperative, positive environment. It is not just about seeking the lowest cost vendors, minimizing transportation costs, or reacting to current competitive situations. Strategic sourcing is about creating long-term, sustainable partnerships that benefit all parties involved.

Question 7

It is anticipated that software as a service (SaaS), GPS and Cloud Computing technologies should assist significantly in achieving enhanced supply chain flexibility and facilitating network-type solutions.

Accepted Answer

SaaS, GPS and Cloud Computing technologies provide real-time data and visibility, enabling better decision-making and collaboration among supply chain partners. This improved communication and coordination can help enhance supply chain flexibility and support network-based solutions.

Question 8

Decision making is part of the Cycle Time Reduction strategy.

Accepted Answer

Decision making plays a crucial role in reducing cycle time by enabling quick and effective actions to be taken in order to minimize delays and inefficiencies. Therefore, it is an integral part of the Cycle Time Reduction strategy.

Question 9

CEOs view SCM initiatives as being primarily focused on cost reduction.

Accepted Answer

Many CEOs view SCM initiatives as a way to reduce costs and improve efficiency in the supply chain process. However, SCM initiatives can also bring benefits such as increased customer satisfaction, improved quality, and better collaboration with suppliers.

Question 10

For businesses, collaboration skills are very important to develop.

Accepted Answer

Collaboration skills are crucial for businesses to promote teamwork, effective communication, and problem-solving. They help in achieving common goals and improving productivity, which ultimately contributes to the success of the organization.

Question 11

Corporate executives are already well aware of the impact supply chain management can have on their businesses.

Accepted Answer

The answer of Corporate executives are already well aware of...

Question 12

The most compelling "financial strategy" is the pursuit of cost reduction and profit improvement.

Accepted Answer

The answer of The most compelling "financial strategy" is the...

Question 13

Key performance indicators (KPIs) that require ownership and commitment to the objectives by all involved parties are needed for the success of relationship-based strategies.

Accepted Answer

KPIs that involve relationship-based strategies cannot be achieved or measured without the commitment and ownership of all parties involved. This is because relationship-based strategies involve a high level of collaboration, communication, and trust, and these factors need to be present from all sides to achieve the desired outcomes. Therefore, KPIs should be established with the mutual understanding and agreement of all stakeholders.

Question 14

Corporate leaders
A) already understand the importance of supply chain excellence.
B) are seeking to reduce corporate assets which could have serious implications for supply chain managers.
C) are managing on a quarterly results because of Wall Street expectations.
D) do not clearly understand the importance of supply chain excellence.

Accepted Answer

The answer of Corporate leaders
A) already understand the importance of...

Question 15

As a result of the economic recession that occurred in the 2008-2010 timeframe, growth in supply chain technology has stagnated.

Accepted Answer

The economic recession did not cause stagnation of growth in supply chain technology. In fact, it actually spurred innovation and investment in technologies that could help companies become more efficient and cost-effective in their operations.

Question 16

The first principle of supply chain management is to segment customers based on profit.

Accepted Answer

The first principle of supply chain management is to understand customer needs and segment customers based on their needs and characteristics, not just based on profit. Profitability of customers is certainly a factor in supply chain management, but it is not the first principle.

Question 17

When a firm "customizes" their supply chain, it is
A) trying to improve asset utilization.
B) tailoring the chain to be responsive to the needs of individual customer segments.
C) responding to competitive situations.
D) revising its supply chain in light of current economic conditions.

Accepted Answer

Customizing a supply chain refers to tailoring the chain to be responsive to the needs of individual customer segments. This is done in order to improve customer satisfaction and gain a competitive advantage in the market.

Question 18

Technology and data are already very well integrated into supply chain management.

Accepted Answer

The answer of Technology and data are already very well...

Question 19

An effective time-based strategy should consider the tradeoffs between transportation, inventory, and warehousing costs.

Accepted Answer

An effective time-based strategy should balance transportation, inventory, and warehousing costs to achieve maximum efficiency and cost-effectiveness. By considering the tradeoffs between these costs, companies can optimize their supply chain operations and improve overall performance.

Question 20

Which of the following does not belong in the list of the seven principles of supply chain management?
A) Segment Customers Based on Service Needs
B) Differentiate Products Closer to the Customer
C) Develop Outsourcing Strategy to Maximize Asset Utilization
D) Adopt Channel-Spanning Performance Measures

Accepted Answer

The seven principles of supply chain management do not include developing an outsourcing strategy to maximize asset utilization. The principles focus on customer segmentation, product differentiation, and performance measures, among others.

Quiz 16: Strategic Challenges and Change for Supply Chains