Question 1

A supply chain is a network of firms that work together to eventually supply an end product to the consumer.

Accepted Answer

This is the definition of a supply chain.

Question 2

Designing a chain design is a complex process involving the transformation and movement of a product from raw material/component stage to assembly, storage, and distribution.

Accepted Answer

Designing a chain requires a thorough analysis of the product flow, from its raw material stage to assembly, storage, and distribution. Each stage involves different considerations, such as transportation, packaging, and inventory management. A well-designed chain can lead to greater efficiency and cost savings.

Question 3

Profit in a supply chain accumulates primarily with the manufacturer.

Accepted Answer

Profit in a supply chain is distributed among all the entities involved in the chain, including distributors, wholesalers, retailers, and manufacturers. Each entity adds value to the product and thus earns a share of the profit.

Question 4

The design, branding, and manufacturing components of the supply chain generate the most profit.

Accepted Answer

The retail and distribution components of the supply chain typically generate the most profit, as they involve direct sales to the consumer and can include significant markups over the cost of production.

Question 5

Supply chain design is a strategic instrument to gain an operational advantage.

Accepted Answer

The answer of Supply chain design is a strategic instrument...

Question 6

A company's competitive advantage resides with its area of competence, its supply chain design, and its supply chain management.

Accepted Answer

A company's competitive advantage is built on its area of competence, which is its unique strength, its supply chain design, which determines the efficiency and effectiveness of its operations, and its supply chain management, which ensures the timely delivery of products to customers while minimizing costs. Together, these factors contribute to a company's ability to outperform its competitors and achieve long-term success.

Question 7

Besides cost, supply chain agility (or lack thereof) also affects competitive advantage.

Accepted Answer

Supply chain agility refers to the ability of a company to quickly respond to changes in the market or customer demands. A company with a more agile supply chain can quickly adapt to changes and gain a competitive advantage over its competitors. On the other hand, a company with a less agile supply chain may struggle to keep up with changes and lose its competitive advantage.

Question 8

Supply chain agility is especially critical in volatile product markets such as automobiles and foodstuff.

Accepted Answer

The answer of Supply chain agility is especially critical in...

Question 9

Clothing retailers like Zara and H&M and manufacturers like Samsung are examples of highly agile supply chain designs.

Accepted Answer

Zara and H&M are known for their fast fashion approach and ability to quickly adapt to changing trends and consumer demands. Samsung has also been praised for its agile supply chain that enables the company to rapidly introduce new products to the market.

Question 10

Supply chain management coordinates and motivates the entities in a supply chain to work together for common profits.

Accepted Answer

The answer of Supply chain management coordinates and motivates the...

Question 11

Effective supply chain management tries to coordinate the flow of materials, services, and information with demand.

Accepted Answer

Effective supply chain management involves actively managing the movement of goods, information, and funds throughout the supply chain to ensure efficient and timely delivery of products and services to meet customer demand. Coordination is a key aspect of this process to avoid excess inventory or stockouts, reduce lead times, and enhance responsiveness to changing market conditions.

Question 12

A value chain describes the activities that capture the most value in a supply chain, where such value resides, and to whom the value accrues.

Accepted Answer

This statement accurately describes the concept of a value chain.

Question 13

One researcher has identified the three key objectives of supply chain design as ability, adaptability, and alignment.

Accepted Answer

The answer of One researcher has identified the three key...

Question 14

There are three distinct elements in supply chain design: supply network, assembly, and alignment.

Accepted Answer

Supply chain design typically involves more elements than just supply network, assembly, and alignment. It also includes factors like product design, demand planning, procurement, manufacturing, distribution, and logistics.

Question 15

If the product demand is steady, then the supply chain network does not need to be agile.

Accepted Answer

If the product demand is steady, then the supply chain network does not need to be agile because there is no need to respond quickly to changes in demand.

Question 16

When firms offer a low variety of services or products and demand predictability is high, then responsive supply chains work best.

Accepted Answer

Efficient supply chains, not responsive supply chains, work best in environments with low variety and high demand predictability, as they focus on minimizing costs and optimizing production efficiency.

Question 17

The supply network is designed based on how the product is put together and the ease of disassembly (i.e., product architecture).

Accepted Answer

The design of the supply network is influenced by the product architecture, including how it is put together and how easy it is to disassemble. This can impact decisions on sourcing, transportation, and logistics, among other factors.

Question 18

Products that are modular in design-that is, can be broken down into subunits-are best suited to outsourcing.

Accepted Answer

Modular products are easier to break down into specific tasks and subunits, making them easier to outsource to different suppliers or manufacturers.

Question 19

Pratt and Whitney, a jet engine manufacturer, would have an efficient supply network if they outsourced production.

Accepted Answer

Outsourcing production can lead to efficiency gains in some cases, but it does not guarantee an efficient supply network. Efficiency depends on various factors including the reliability of suppliers, quality control, logistics, and the complexity of the supply chain.

Question 20

Supplier proximity to the market is desirable where flexibility is required.

Accepted Answer

The answer of Supplier proximity to the market is desirable...

Quiz 10: Supply Chain Design