Question 1

Which of the following is NOT true about the supply chain for Ford Motor Company?
A) The supply chain includes the Ford dealers that sell its cars to consumers.
B) The supply chain does not include production plants where Ford cars are built.
C) The supply chain includes a tire supplier to Ford's production plants.
D) The supply chain includes a company that sells rubber to Ford's tire supplier.
E) The supply chain includes trucks that deliver cars to Ford dealers.

Accepted Answer

The supply chain for Ford Motor Company includes production plants where Ford cars are built, so option B is not true.

Question 2

EDI was developed in response to which of the following problems?
A) Firms using different transportation modes
B) International telecommunication difficulties
C) Differences in order fulfillment processes
D) Computer system differences among firms
E) Differences in product output and quality levels

Accepted Answer

EDI (Electronic Data Interchange) was developed to address the problem of computer system differences among firms. It allows for the electronic exchange of business documents in a standardized format, regardless of the computer systems being used by the trading partners.

Question 3

Just-in-time (JIT) delivery
A) is always the best approach.
B) reduces customers' physical distribution costs.
C) increases storing and handling costs.
D) shifts responsibility for physical distribution activities forward in the channel.
E) requires customers to have high quality standards in physical distribution activity.

Accepted Answer

JIT delivery reduces customers' physical distribution costs by delivering products only when needed and in the exact quantity required, minimizing the need for storage and handling. However, it does require high quality standards in terms of communication and coordination between suppliers and customers to ensure timely delivery.

Question 4

Which of the following is an example of a JIT system shifting responsibility for PD activities backward in a distribution channel?
A) A paint supplier is highly efficient at controlling logistics costs. Products are distributed at a high customer service level.
B) An ice cream chain makes its own ice cream at each of its retail sites. Its customers are highly pleased with the product.
C) A wholesale appliance distributer is inefficient at controlling logistics costs. It develops a reputation for low customer service levels.
D) A book retailer is more efficient than its suppliers at controlling PD costs. Products are distributed at an acceptable customer service level.
E) An automotive parts supplier is less efficient than its retail customers at controlling logistics costs. Products are distributed at a high customer service level.

Accepted Answer

The answer of Which of the following is an example...

Question 5

Which of the following is true regarding JIT systems?
A) JIT systems do not have backup inventory.
B) JIT usually entails less frequent deliveries.
C) JIT requires manufacturers to add new warehouses.
D) JIT requires suppliers to respond to very short order lead times and the customer's production schedule.
E) Manufacturers must locate their facilities next to important customers in order to practice JIT.

Accepted Answer

JIT systems require suppliers to respond quickly to short lead times and the customer's production schedule, as the inventory levels are usually low or non-existent. Option A is incorrect as JIT systems do have backup inventory in case of emergencies. Option B is also incorrect as JIT often involves more frequent deliveries. Option C is incorrect as JIT aims to reduce the need for warehouses. Option E is incorrect as JIT does not require manufacturers to be located next to customers, but rather focuses on efficient inventory management and timely deliveries.

Question 6

Regarding a "chain of supply":
A) All of the firms in the chain of supply should work together to meet the needs of the customer at the end of the chain.
B) Logistics functions are not shifted or shared among the firms in the chain of supply.
C) Firms never outsource the whole job of planning and implementing their logistics systems.
D) It always includes at least two channels of distribution.
E) None of these alternatives about "chain of supply" is correct.

Accepted Answer

The concept of chain of supply involves all the firms in the chain working collaboratively to meet the needs of the end customer. This requires coordination and cooperation among all the firms involved. Therefore, option A is the correct option. The other options are incorrect as they either do not accurately describe the concept of chain of supply or provide misleading information about the supply chain management process.

Question 7

Which of the following statements about just-in-time delivery is FALSE?
A) Just-in-time shifts greater responsibility for physical distribution backward in the channel.
B) Just-in-time reduces storing and handling costs for everyone in the channel.
C) Just-in-time increases the coordination needed among channel members.
D) Just-in-time reduces storing and handling costs for business customers.
E) None of these statements about JIT delivery is FALSE.

Accepted Answer

Just-in-time may reduce storing and handling costs for some channel members, but it may increase these costs for others, such as suppliers who must frequently deliver small quantities of goods. Additionally, just-in-time may increase transportation costs as goods are shipped more frequently. Therefore, statement B is false.

Question 8

A jewelry maker's suppliers of gold, platinum and silver, the warehouses that store its finished goods, and the trucks that deliver the product to retailers are all part of a:
A) private warehouse system.
B) supply chain.
C) modal transportation hub.
D) distribution point.
E) public warehouse network.

Accepted Answer

The various suppliers, warehouses, and transportation methods involved in getting the jewelry to retailers all make up the supply chain.

Question 9

A supply chain:
A) focuses on making services available whereas a channel of distribution focuses on making goods available.
B) may involve many firms, but only one manufacturer.
C) includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.
D) is easier to coordinate than a channel of distribution.
E) None of these alternatives about a supply chain is correct.

Accepted Answer

A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers. It involves multiple firms and manufacturers, unlike option B which states only one manufacturer is involved. Option A is incorrect as both supply chains and channels of distribution can focus on making goods available. Option D is incorrect as coordinating a supply chain can be complex due to the involvement of multiple firms. Option E is incorrect as option C is the correct one.

Question 10

Each of the following types of businesses could most likely be part of both the supply chain and the distribution channel for a cosmetics retailer EXCEPT:
A) A warehouse that stores finished cosmetic products before shipping.
B) A storage company that coordinates both storage and transport.
C) A research and development firm focused on cosmetics testing.
D) An air freight company that transports the cosmetic line overseas.
E) A ground parcel service that ships wholesale orders to retail stores.

Accepted Answer

A research and development firm focused on cosmetics testing is not part of either the supply chain or the distribution channel. They focus on improving and testing products, which comes before the supply chain and distribution processes.

Question 11

An elite fashion manufacturer distributes apparel products in retail outlets worldwide. The company chooses to forego coordinating physical distribution functions with other firms in the distribution channel. Which of the following is most likely to occur as a result?
A) A competitive advantage for the manufacturing firm
B) Lower product delivery costs
C) Greater harmony across the supply chain
D) Significant gains in global market share
E) Discord concerning issues of physical distribution

Accepted Answer

By foregoing coordination with other firms in the distribution channel, there may be discord and conflicts that arise concerning physical distribution. This can lead to inefficiencies, higher costs, and ultimately damage to the company's brand reputation. Therefore, E is the most likely outcome. A, B, C, and D are less likely to occur.

Question 12

Which of the following statements about supply chains is FALSE?
A) A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.
B) A supply chain includes one or more channels of distribution.
C) The primary aim of any firm in a supply chain is to contribute to customer value by minimizing its own distribution costs.
D) Few firms are willing to give "outsiders" access to information in their computer systems, so it is likely to be quite some time before computers have the impact on managing a supply chain that they have had in other areas of business.
E) None of these statements about supply chains is FALSE.

Accepted Answer

This statement is false as many firms now use digital platforms to share information with partners in their supply chain. The use of technology has enabled firms to improve collaboration and communication within their supply chain network.

Question 13

Just-in-time (JIT) delivery:
A) Increases physical distribution costs for business customers.
B) Requires that a supplier be able to respond to the customer's production schedule.
C) Usually does not require e-commerce order systems and computer networks.
D) Means that deliveries are larger and less frequent.
E) Shifts greater responsibility for physical distribution activities from the supplier to the business customer.

Accepted Answer

Just-in-time delivery is a supply chain management strategy where products are delivered to the customer just in time when they are needed in the production process. This requires that the supplier is able to respond to the customer's production schedule and deliver the product quickly. Option A, C, D, and E are all incorrect as they do not describe the concept of JIT delivery accurately.

Question 14

Each of the following is likely to be experienced by a supplier using a JIT system EXCEPT:
A) facilities near its customers.
B) infrequent truck deliveries.
C) small truck deliveries.
D) e-commerce order systems.
E) short order lead times.

Accepted Answer

Just-In-Time (JIT) systems aim for efficiency and minimizing inventory costs, which typically involves frequent, small deliveries to reduce inventory holding times, contrasting with infrequent truck deliveries.

Question 15

A supply chain:
A) is part of a broader network of relationships called a channel of distribution.
B) is most effective when the objectives of the manufacturer at the beginning of the chain guide the activities of all other firms in the chain.
C) requires skill in coordinating activities among different firms, and this has prompted many firms to seek help from outside experts.
D) focuses on procuring materials needed for production, so its main weakness is that it ignores customer needs.
E) concerns only direct relationships between producers, but a channel of distribution may involve intermediaries.

Accepted Answer

The answer of A supply chain:
A) is part of a...

Question 16

Electronic data interchange (EDI):
A) Puts information in a standardized format that can be shared between different computer systems.
B) Improves information flow between buyers and suppliers.
C) Allow customers to transmit orders directly to a supplier's computer.
D) Replaces many of the paper documents previously used for purchase orders and shipping reports.
E) All of these alternatives about EDI are correct.

Accepted Answer

All of the alternatives provided are correct statements about EDI. It puts information in a standardized format that can be shared between different computer systems, improves information flow between buyers and suppliers, allows customers to transmit orders directly to a supplier's computer, and replaces many of the paper documents previously used for purchase orders and shipping reports.

Question 17

When a supplier's computer automatically processes an online order from a customer, schedules production activities for the order, and then sets up delivery of the finished product to the customer, what approach is being used?
A) Piggyback
B) EDI
C) Containerization
D) JIT
E) Contractual

Accepted Answer

This approach is known as Electronic Data Interchange (EDI), which allows for the automatic processing of orders and related business transactions between suppliers and customers.

Question 18

How PD functions are shared will have the greatest effect on which of the other three Ps?
A) Price decisions.
B) Promotion decisions.
C) Product decisions.
D) Positioning decisions.
E) People decisions.

Accepted Answer

The way PD (Product Distribution) functions are shared can significantly impact price decisions, as distribution costs and logistics can affect the final pricing strategy of a product.

Question 19

A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.
A) supply chain
B) physical distribution group
C) logistics partnership
D) just-in time group
E) None of these alternatives is a good answer.

Accepted Answer

A supply chain refers to the complete network of firms, facilities, and logistics activities involved in the creation and delivery of a product or service to customers. It includes all the steps from procuring raw materials to delivering the final product to the end consumer. This comprehensive approach to managing the flow of goods and services is vital for ensuring customer satisfaction, minimizing costs, and maximizing profits. The other options, such as physical distribution group, logistics partnership, and just-in-time group, do not accurately capture the full scope of activities involved in managing the supply chain.

Question 20

Honda requires its brake suppliers to deliver parts to its production plants three hours before the parts are scheduled to be installed in a new car. This is an example of what logistics activity?
A) EDI
B) PD concept
C) Piggyback
D) Containerization
E) JIT

Accepted Answer

This is an example of just-in-time (JIT) logistics, where parts are delivered just in time to be used in production, minimizing inventory and storage costs.

Quiz 11: Distribution Customer Service and Logistics

Which of the following is NOT true about the supply chain for Ford Motor Company?

EDI was developed in response to which of the following problems?

Just-in-time (JIT) delivery

Which of the following is an example of a JIT system shifting responsibility for PD activities backward in a distribution channel?

Which of the following is true regarding JIT systems?

Regarding a "chain of supply":

Which of the following statements about just-in-time delivery is FALSE?

A jewelry maker's suppliers of gold, platinum and silver, the warehouses that store its finished goods, and the trucks that deliver the product to retailers are all part of a:

A supply chain:

Each of the following types of businesses could most likely be part of both the supply chain and the distribution channel for a cosmetics retailer EXCEPT:

An elite fashion manufacturer distributes apparel products in retail outlets worldwide. The company chooses to forego coordinating physical distribution functions with other firms in the distribution channel. Which of the following is most likely to occur as a result?

Which of the following statements about supply chains is FALSE?

Just-in-time (JIT) delivery:

Each of the following is likely to be experienced by a supplier using a JIT system EXCEPT:

A supply chain:

Electronic data interchange (EDI) :

When a supplier's computer automatically processes an online order from a customer, schedules production activities for the order, and then sets up delivery of the finished product to the customer, what approach is being used?

How PD functions are shared will have the greatest effect on which of the other three Ps?

A _____ is the complete set of firms, facilities, and logistics activities that are involved in procuring materials, transforming them into intermediate or finished products, and distributing them to customers.

Honda requires its brake suppliers to deliver parts to its production plants three hours before the parts are scheduled to be installed in a new car. This is an example of what logistics activity?