Question 1

The more __________ a company's supply chain, the more difficult it is to ensure that the supply chain is managed ethically.

Accepted Answer

Global supply chains involve multiple countries and suppliers, making it difficult to monitor and ensure ethical practices throughout the entire supply chain. Different countries may have different laws and regulations regarding labor standards, environmental practices, and human rights, which can make it challenging to establish a consistent ethical standard across the entire supply chain.

Question 2

One of the biggest ethical risks in supply chain management is that the __________ supply chain member tends to be the one that suffers the blame and/or lost goodwill when something goes wrong.

Accepted Answer

The most visible supply chain member tends to be the one that suffers the blame and/or lost goodwill when something goes wrong, regardless of who is actually responsible for the issue. This is often the case with consumer-facing companies, as they are the ones most visible to the public.

Question 3

Which of these aspects of supply chain management are especially concerning to small business?
(I) customer reliability
(II) inventory management
(III) purchasing costs
(IV) risk management
(V) international trade

Accepted Answer

The answer of Which of these aspects of supply chain...

Question 4

A factor that makes it desirable for business organizations to actively manage their supply chains is:

Accepted Answer

Increasing globalization means that businesses are dealing with suppliers and customers from all over the world, which increases the complexity of the supply chain. Active management is necessary to ensure timely delivery of goods and reduce costs. The other options listed are not necessarily factors that require active supply chain management.

Question 5

Which of the following, while desirable from some perspectives, might actually increase the risk of supply chain disruptions?
(I) fewer supply chain partners
(II) a shorter supply chain
(III) greater supply chain visibility

Accepted Answer

The answer of Which of the following, while desirable from...

Question 6

Logistics includes all of these except:

Accepted Answer

Logistics involves the movement of goods and materials throughout the supply chain, including incoming and outgoing shipments, processing of returned goods, and movement within a production facility. However, customer selection is not a part of logistics, as it refers to the process of targeting and acquiring potential customers for a business.

Question 7

An advantage of decentralized purchasing is the attention given to local needs.

Accepted Answer

Decentralized purchasing allows for local stakeholders to have a greater say in the purchasing decisions, meaning that the needs of the local community are more likely to be considered and met.

Question 8

In e-commerce, the front-end design is significantly more important than the back-end design.

Accepted Answer

Both front-end and back-end designs are crucial in e-commerce; the front-end focuses on user experience and interface, while the back-end ensures functionality, performance, and security, making both equally important for a successful e-commerce platform.

Question 9

It is especially the case for small businesses that closer interactions and increased agility make __________ relatively more attractive.

Accepted Answer

The answer of It is especially the case for small...

Question 10

Creating an effective supply chain requires linking the marketing, distribution, and supplier channels.

Accepted Answer

A supply chain cannot function in isolation. It requires collaboration and coordination between different channels. Marketing helps in identifying the demand, distribution ensures timely delivery of goods, and suppliers provide the necessary resources to manufacture the products. Therefore, linking these channels is crucial for an effective supply chain.

Question 11

Some firms have structured their procurement function to include both centralized and decentralized purchasing.

Accepted Answer

Some firms have hybrid procurement structures that include both centralized and decentralized purchasing. This allows for greater flexibility and can be tailored to specific needs and situations.

Question 12

Strategies to address supply chain risks include:
(I) risk avoidance.
(II) risk reduction.
(III) risk projection.
(IV) risk sharing.

Accepted Answer

Risk avoidance, risk reduction, and risk sharing are common strategies to address supply chain risks. Risk projection is not typically considered a strategy for addressing risks.

Question 13

Which of the following is not a goal of supply chain management?

Accepted Answer

While transportation costs are a key consideration in supply chain management, the lowest possible transportation costs are not always the primary goal. Other goals such as on-time delivery, small lot sizes, and delivering to the place of use may be more important depending on the specific needs of the supply chain. Having fewer suppliers and establishing long-term relationships is also often a goal in supply chain management as it can lead to more reliable and consistent sourcing of materials and services.

Question 14

RFID chips:
(I) are used to track goods in distribution.
(II) are used to track job progress in production.
(III) are used to provide special instructions to operators.
(IV) can be used in inventory record keeping.

Accepted Answer

RFID chips are commonly used for tracking goods in distribution and for job progress in production. They can also be used in inventory record keeping. While RFID tags can theoretically contain special instructions for operators, this isn't commonly done in practice. Therefore, options I, II, and IV are all viable uses for RFID chips.

Question 15

Small changes in consumer demand can result in large variations in orders placed because of the:

Accepted Answer

The bullwhip effect refers to the amplified fluctuations in demand upstream in the supply chain caused by small variations in consumer demand downstream. As a result, small changes in consumer demand can result in large variations in orders placed.

Question 16

Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.

Accepted Answer

Vendor analysis is indeed the process of evaluating suppliers based on factors such as price, quality, reputation, and service.

Question 17

Decentralized purchasing can usually offer quicker response than centralized purchasing.

Accepted Answer

Decentralized purchasing allows decision making and procurement at a local level, which can lead to quicker responses to procurement needs as it eliminates the need for approval from a centralized authority.

Question 18

Event-response capability is the advanced planning required to respond to planned events such as receiving a scheduled shipment.

Accepted Answer

Event-response capability typically refers to the ability to respond to unplanned or unexpected events, such as emergencies or incidents, rather than routine, scheduled activities like receiving shipments.

Question 19

One disadvantage to RFID is that it requires a clear "line of sight" to operate.

Accepted Answer

RFID technology does not require a clear line of sight to operate, as it uses radio waves to transmit information. It can even be used to track items through walls and other materials.

Question 20

Which of the following is not a benefit of RFID?

Accepted Answer

Frequent deliveries of smaller shipments are not necessarily a benefit of RFID technology. While RFID can aid in tracking shipments and improving accuracy, the frequency and size of deliveries is ultimately determined by business practices and logistical considerations. The other benefits listed - increased productivity, elimination of paperwork, reduction in clerical labor, and increased accuracy - are commonly cited advantages of RFID.

Quiz 21: Supply Chain Management