Question 1

Companies may join the Fair Trade movement to convey that they are _____.
A)outsourcing
B)socially responsible
C)environmentally ethical
D)environmentally sustainable
E)efficient

Accepted Answer

Companies join the Fair Trade movement to demonstrate their commitment to social responsibility, ensuring fair wages and ethical treatment for workers.

Question 2

A firm may push for environmental sustainability because:
A)many consumers want farmers to be paid high wages.
B)many consumers want to pay higher prices for third-world producer wages.
C)many consumers are willing to pay more for green products.
D)many consumers associate the color green with quality.
E)many consumers associate going green with supply chain management.

Accepted Answer

Many consumers are increasingly willing to pay a premium for products that are environmentally sustainable, recognizing the importance of reducing environmental impact. This consumer behavior incentivizes firms to adopt green practices.

Question 3

Freight forwarders typically own their own transportation equipment and warehouses.

Accepted Answer

Freight forwarders usually do not own transportation equipment or warehouses; instead, they act as intermediaries, organizing transportation and logistics for shipments by arranging with carriers and storage facilities on behalf of their clients.

Question 4

A retailer is typically a type of upstream firm.

Accepted Answer

A retailer is typically considered a downstream firm because it is at the end of the supply chain, directly selling goods or services to the end consumers.

Question 5

A(n)_____ is an organization whose duties include consolidating small loads of freight,negotiating rates for their shipment,and booking space for them on transportation vehicles and in warehouses.

Accepted Answer

The answer of A(n)_____ is an organization whose duties include...

Question 6

_____ and _____ have become a larger part of Sally's role as a supply manager since she first started.
A)Segmenting; targeting
B)Outsourcing; procurement
C)Sourcing; procurement
D)Offshoring; sourcing
E)Segmenting; procurement

Accepted Answer

Sourcing and procurement are key responsibilities in supply chain management, which have likely expanded in importance over time for Sally as a supply manager.

Question 7

Alan must first go through the process of _____ before he procures goods and services for his organization.

Accepted Answer

The answer of Alan must first go through the process...

Question 8

The process of designing,monitoring,and altering supply chains to make them as efficient as possible is called demand chain management.

Accepted Answer

The process described is known as supply chain management. Demand chain management focuses on understanding and driving consumer demand.

Question 9

Smart companies integrate their supply chains into their marketing plans,by means such as:
A)finding ways the supply chain can create value for customers.
B)integrating supply chain management with day-to-day operations.
C)finding ways the supply chain can help the firm cut costs.
D)finding ways the supply chain can aid in employee morale.
E)integrating suppliers and retailer value propositions.

Accepted Answer

Finding ways the supply chain can create value for customers is a way to integrate supply chains into marketing plans.

Question 10

Marketers are referring to the _____ when looking to companies who sell and promote their products in addition to those who provide raw materials,transportation,and all other functions involved in creating the product.
A)demand chain
B)value chain
C)upstream firms
D)downstream firms
E)marketing channel

Accepted Answer

The value chain encompasses all activities and entities involved in creating a product, from raw material suppliers to companies that sell and promote the product.

Question 11

If a firm can find a company that can add more value to a function than it can itself,it will often _____ the task to that company.
A)offshore
B)procure
C)source
D)outsource
E)insource

Accepted Answer

Outsourcing is the practice of hiring another company to handle business activities for you, especially when they can perform the task more efficiently or cost-effectively than you can do it yourself.

Question 12

An advantage of outsourcing is that:
A)it takes less time for a company to get the finished goods into the hands of its consumers at home.
B)the safety of products is easily managed.
C)the quality of products is guaranteed.
D)it can add value to the product.
E)technologies are kept to the company.

Accepted Answer

Outsourcing can add value to a product by allowing companies to focus on their core competencies and leverage the expertise and efficiencies of external suppliers.

Question 13

_____ provide logistics services for part or all supply chain management functions.

Accepted Answer

The answer of _____ provide logistics services for part or...

Question 14

Fred started a t-shirt business last year.He designs the shirts in the United States and then sends the designs to companies in China to be produced.Fred is utilizing a(n)_____ strategy.
A)offshoring
B)co-sourcing
C)insourcing
D)3PL
E)procurement

Accepted Answer

Fred is utilizing an offshoring strategy by sending his t-shirt designs to be produced in another country, in this case, China. Offshoring involves relocating a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting.

Question 15

_____ should ultimately be the focus of any outsourcing or insourcing decisions made by a company.
A)Firm value
B)Supply chain management
C)Organizational capabilities
D)Revenue
E)The customer

Accepted Answer

The answer of _____ should ultimately be the focus of...

Question 16

A 3PL is a one-stop shipping solution for a company that wants to focus on other aspects of its business besides logistics.

Accepted Answer

A 3PL (Third-Party Logistics) provider offers comprehensive logistics services including transportation, warehousing, and fulfillment services, allowing companies to outsource these functions and focus on other aspects of their business.

Question 17

After dealing with multiple customer service issues,Peggy decided that she would not renew her contract with Ron's customer service company.Moving the customer service function back within Peggy's company is known as insourcing.

Accepted Answer

Insourcing refers to the practice of bringing a business function or service back in-house, which is what Peggy is doing by deciding to move the customer service function back within her own company instead of continuing to outsource it to Ron's customer service company.

Question 18

FedEx Supply Chain Services and UPS Supply Chain Solutions,that takeover the entire order processing and shipping departmental functions of a company,are examples of:
A)freight forwarders.
B)consumer shipping services.
C)logistical sources.
D)supply chain value added firms.
E)3PLs.

Accepted Answer

FedEx Supply Chain Services and UPS Supply Chain Solutions, which take over the entire order processing and shipping departmental functions of a company, are examples of Third-Party Logistics providers (3PLs). These firms specialize in handling logistics services for other companies, including warehousing, transportation, and order fulfillment.

Question 19

The value chain concept refers to the belief that your supply chain partners should do more for you than perform just _____.

Accepted Answer

The answer of The value chain concept refers to the...

Question 20

Purchasing goods and services for an organization is known as procurement.

Accepted Answer

Procurement refers to the process of acquiring goods, services, and works from an external source through a tendering or competitive bidding process. It is a key activity in the supply chain management of any organization.

Quiz 9: Using Supply Chains to Create Value for Customers

Companies may join the Fair Trade movement to convey that they are _____.

A firm may push for environmental sustainability because:

Freight forwarders typically own their own transportation equipment and warehouses.

A retailer is typically a type of upstream firm.

A(n)_____ is an organization whose duties include consolidating small loads of freight,negotiating rates for their shipment,and booking space for them on transportation vehicles and in warehouses.

_ and _ have become a larger part of Sally's role as a supply manager since she first started.

Alan must first go through the process of _____ before he procures goods and services for his organization.

The process of designing,monitoring,and altering supply chains to make them as efficient as possible is called demand chain management.

Smart companies integrate their supply chains into their marketing plans,by means such as:

Marketers are referring to the _____ when looking to companies who sell and promote their products in addition to those who provide raw materials,transportation,and all other functions involved in creating the product.

If a firm can find a company that can add more value to a function than it can itself,it will often _____ the task to that company.

An advantage of outsourcing is that:

_____ provide logistics services for part or all supply chain management functions.

Fred started a t-shirt business last year.He designs the shirts in the United States and then sends the designs to companies in China to be produced.Fred is utilizing a(n) _____ strategy.

_____ should ultimately be the focus of any outsourcing or insourcing decisions made by a company.

A 3PL is a one-stop shipping solution for a company that wants to focus on other aspects of its business besides logistics.

After dealing with multiple customer service issues,Peggy decided that she would not renew her contract with Ron's customer service company.Moving the customer service function back within Peggy's company is known as insourcing.

FedEx Supply Chain Services and UPS Supply Chain Solutions,that takeover the entire order processing and shipping departmental functions of a company,are examples of:

The value chain concept refers to the belief that your supply chain partners should do more for you than perform just _____.

Purchasing goods and services for an organization is known as procurement.