Question 1

What is the first step in choosing a supply chain?

Accepted Answer

Understanding the customer is the first step in choosing a supply chain because it helps organizations identify their consumers' needs, demands, and expectations. This information is crucial in determining the necessary competencies, roles, and responsibilities that the members of a supply chain must possess to deliver the desired product or service to the customer.

Question 2

Dramatic cost savings are possible when efficient transportation and information systems can reduce _____ costs.

Accepted Answer

Efficient transportation and information systems can help reduce inventory costs by speeding up the delivery of products and reducing the need for large amounts of safety stock. This, in turn, can lead to significant cost savings for businesses. While efficient transportation and information systems can also have an impact on advertising, personal selling, and publicity costs, inventory costs are most directly impacted.

Question 3

Which aspect of marketing would best be described by the following? The manufacturer is the body of the butterfly with many different suppliers accumulated on one side of the body for the left wing and a large number of buyers collected on the other side to form the right wing.

Accepted Answer

The description given refers to the supply chain aspect of marketing, where the manufacturer is at the center and there are many suppliers on one side and buyers on the other side. This is a typical representation of the supply chain, which involves the flow of goods and services from suppliers to manufacturers and then to customers.

Question 4

At the Saturn website,you can assemble your own car based on your preferences and price point by choosing from thousands of versions,including the retailer-installed accessories you might want.This easy task for you represents a challenge for Saturn's ____,who is responsible for translating customer requirements into actual orders and arranging for delivery dates and financial arrangements for car dealers.

Accepted Answer

The supply chain manager is responsible for managing the process of delivering products and services from the manufacturer to the end consumer. In this case, the supply chain manager is responsible for translating the customer's preferences into actual orders and coordinating with the car dealers for delivery and financial arrangements. The marketing manager is responsible for promoting and advertising the products, the chief financial officer is responsible for financial management, and the production manager is responsible for overseeing the production process.

Question 5

Supply chain management impacts all of the following aspects of the marketing mix strategy EXCEPT:

Accepted Answer

Supply chain management does not directly impact the target market selection decision. The target market is determined by factors such as consumer demand and market research, rather than supply chain considerations. However, supply chain management can indirectly impact the target market by affecting the availability and delivery of products to different regions or customer segments.

Question 6

Which of the following statements describes how a supply chain differs from a marketing channel?

Accepted Answer

The key difference between a supply chain and a marketing channel is that a supply chain includes the suppliers that provide raw material inputs to a manufacturer, whereas a marketing channel focuses on the flow of finished goods to consumers. Additionally, while communication and cost effectiveness are important in both supply chains and marketing channels, they are not defining differences between the two. Option D is incorrect because it incorrectly suggests that suppliers providing raw materials are part of a marketing channel.

Question 7

If you were to draw a graphic representation of marketing channels of distribution,it would most likely resemble a(n):

Accepted Answer

The best choice for a graphic representation of marketing channels of distribution is a pipeline. This is because a pipeline represents the flow of goods or services from the producer to the end-user or consumer, which is how marketing channels of distribution operate. A pipeline also shows that the process is continuous and ongoing.

Question 8

The objective of information and logistics management in a supply chain is to minimize relevant logistics costs and to:

Accepted Answer

The objective of information and logistics management in a supply chain is to minimize logistics costs while delivering maximum customer service. The ultimate goal is to create a satisfied customer by delivering the right product, in the right quantity, at the right time, and at the right place. By doing so, a company can gain a competitive advantage and improve its profitability. Maximizing marketing objectives, minimizing employee productivity, and minimizing shareholder's return on investment are not the primary objectives of information and logistics management in a supply chain.

Question 9

All of the following are reasons for the increased emphasis on logistics systems EXCEPT:

Accepted Answer

The reregulation of the trucking and railroad industries is not a reason for increased emphasis on logistics systems. The other three choices all point to the increasing complexity and importance of effective logistics management.

Question 10

Kenny works at a warehouse in Edmonton where his job is to organize the flow of mineral ore into the processing warehouse and then ensure the finished product,granite countertops are delivered out to resellers.Kenny is most likely in which department?

Accepted Answer

Kenny's job involves organizing the flow of mineral ore and delivering finished product, which falls under logistics management. Physical distribution management focuses on the delivery of products to customers, customer service deals with resolving customer issues, and production management deals with the production process itself.

Question 11

Cross-docking is most closely related to:

Accepted Answer

Cross-docking is a supply chain process where products are received and immediately transferred to outbound trucks without being stored in a warehouse. This process is used to increase efficiency and reduce lead times in the supply chain. Therefore, cross-docking is most closely related to efficient supply chain activities.

Question 12

Logistics management is organizing the cost-effective flow of raw materials,in-process inventory,finished goods,and related information from point of origin to point of consumption to:

Accepted Answer

The primary goal of logistics management is to satisfy customer requirements, which includes timely delivery, quality products, and cost-effective pricing. While creating maximum profit and maintaining organizational culture may be secondary goals, the ultimate objective is to meet the demands of customers effectively. Eliminating all competition is not a goal of logistics management.

Question 13

Customers currently link to Cisco's website to configure,price,and order its networking equipment.Cisco then sends orders back out across the Internet to producers and assemblers including Celestica,Flextronics,Jabil,and Solectron.Products are built and tested to Cisco standards,sometimes with procedures run remotely by Cisco.Most are then drop shipped to buyers,untouched by human hands on Cisco's payroll.This is a description of Cisco's:

Accepted Answer

The description describes Cisco's supply chain, which involves ordering networking equipment from producers and assemblers, building and testing them to Cisco's standards, and drop-shipping them to buyers. Just-in-time inventory system and electronic data interchange (EDI) are components of the supply chain, but not the complete description of Cisco's system. A strategic information alliance is a partnership between companies to share resources and information, but it is not mentioned in the description.

Question 14

Customers currently link to Cisco's website to configure,price,and order its networking equipment.Cisco then sends orders back out across the Internet to producers and assemblers including Celestica,Flextronics,Jabil,and Solectron.Products are built and tested to Cisco standards,sometimes with procedures run remotely by Cisco.Most are then drop shipped to buyers,untouched by human hands on Cisco's payroll.The individuals who monitor these transactions and make sure each is performed in a cost effective and timely fashion are engaged in:

Accepted Answer

The individuals described are engaged in supply chain management, which involves coordinating the flow of goods and services from suppliers to customers in a cost-effective and timely manner.

Question 15

The computer system at Amazon's warehouse is integrated with their trucking company and suppliers,so that when someone places an order online,everyone in the chain receives a notice.This system is referred to as a(n):

Accepted Answer

The system described is an example of electronic data interchange (EDI), which involves the electronic exchange of business documents between different organizations. Through EDI, Amazon's computer system is able to communicate order information with their trucking company and suppliers, streamlining the supply chain process. Strategic information alliances refer to partnerships between organizations to share resources and information for mutual benefit. Integrated information systems involve the integration of all aspects of an organization's information, while reciprocal data exchange involves the exchange of data between two organizations on a mutually beneficial basis. None of these fully capture the specific system described in the question.

Question 16

At the Spring Creek Carriers warehouse in Ontario,a new truck just pulled into the warehouse.The staffs sort through all the goods on the truck and separate them out to separate loads that will go to different destinations on different trucks.This activity is referred to as:

Accepted Answer

The activity described is cross-docking, which involves sorting and transferring goods directly from inbound trucks to outbound trucks without storing them in the warehouse. Dual distribution refers to the use of two or more transportation modes to deliver goods; intermodal distribution refers to the use of multiple modes of transportation within a single shipment; and piggybacking refers specifically to the transportation of truck trailers on rail flatcars. None of these options accurately describe the activity described in the scenario.

Question 17

John manages all of the activities from raw materials to finished product at Optimum Steel Company.John is most likely focused on:

Accepted Answer

Managing activities from raw materials to finished product involves overseeing the entire supply chain process. Therefore, John is most likely focused on supply chain management. Just-in-time inventory system, electronic data interchange, and strategic information alliances are all components within the broader scope of supply chain management.

Question 18

The objective of information and logistics management in a supply chain is to deliver maximum customer service and to:

Accepted Answer

The objective of information and logistics management in a supply chain is to balance the tradeoff between providing excellent customer service and minimizing logistics costs. While minimizing employee layoffs and maximizing shareholder's return on investment may also be important considerations in overall supply chain management, they are not the primary objectives of information and logistics management.

Question 19

The integration and organization of information and logistics across firms in a supply chain for the purpose of creating and delivering goods and services that provide value to consumers is referred to as:

Accepted Answer

Supply chain management involves the coordination of activities across firms in a supply chain to create value for consumers. This includes the integration and organization of information and logistics, as well as the management of relationships between firms to ensure efficient and effective supply chain operations. Logistics management is a subset of supply chain management that focuses specifically on the movement of products and materials within the supply chain. Point-to-point management and just-in-time management are specific strategies or approaches that may be used within supply chain management, but they do not encompass the full scope of supply chain management activities.

Question 20

Bombardier makes corporate jets and its strategy involves streamlining production activities,maintaining its reputation for quality,and reducing its costs.It has developed the Continental,an airplane assembled from just a dozen large component parts.While building planes with subassemblies is not new,Bombardier is the first not to use vertical integration.All parts are supplied by carefully chosen independent companies that share the development costs and market risk.In terms of its supply chain,Bombardier has

Accepted Answer

Bombardier has harmonized its supply chain and marketing strategy by collaborating with independent suppliers to share development costs and market risks, aligning production efficiency with market demands.

Quiz 14: Managing Marketing Channels and Supply Chains