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Select the best definition of supply chain.
~The chain of suppliers contracted by an organization, including first, second and third tier suppliers, to provide inputs for production.
~The sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service.
~The raw materials, components or other parts provided by vendors to an organization which are transformed from inputs to outputs.
The sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service.
What is the best definition of supply chain management?
~The activities within an organization to receive, store, and distribute incoming goods for the purposes of production.
~The strategic coordination of business functions within and throughout an organization's supply chain
to integrate supply and demand.
~An organization's activity to manage all aspects of the vendor relationship including price, quality, and timeliness of deliveries.
The strategic coordination of business functions within and throughout an organization's supply chain to integrate supply and demand.
Select the best definition of Logistics.
~All activities involved in the receipt, storage, inventory and
distribution of material & parts used to transform inputs into outputs.
~Transportation of material to the factory and finished goods from the factory to distributor, retailer or customer directly.
~The part of a supply chain involved with the forward and reverse flow of goods, services, cash, and information.
The part of a supply chain involved with the forward and reverse flow of goods, services, cash, and information.
Which of the following best describes the two parts of the value chain--the supply and demand components?
~The supply component starts at raw material and ends in the organization. The demand component is from delivery of output to the final customer.
~The supply components are the inputs to production and the demand components are the outputs send to the next link in the chain.
~The supply component refers to the accumulated orders from multi-tiered vendors.
The demand component are the accumulated customer orders.
The supply component starts at raw material and ends in the organization. The demand component is from delivery of output to the final customer.
What are the five basic components of supply chain management?
Logistics
Strategy
Supply management
Procurement
Demand management
Supply chains make use of various forms of facilities. Select all the examples of facilities from the list below.
Warehouses
Conveyor belts
Retail outlets
Factories
Distribution centers
Cargo containers
Warehouses
Factories
Distribution centers
Retail outlets
what does product and service flow involve?
Involves the movement of goods or services from suppliers to customers as well as handling customer service needs and product returns.
what does information flow involve?
Involves sharing forecast and sales data, transmitting orders, tracking shipments, and updating order status.
what does financial flow involve?
Involves credit terms, payments, and consignment and title ownership arrangements.
What is meant by the supply chain management practice of measuring ROI along the supply chain?
~The organization must perform a Return on Investment test on whether or not to upgrade assembly line technology.
~Each organization in the supply chain must report their ROI [Return on Investment] to the final customer
~ROI stands for Return on Investment and is a financial basis for decision
making,
ROI stands for Return on Investment and is a financial basis for decision making,
What is meant by the term "reverse logistics?"
Use of third-party logistics suppliers
When a producer has to cancel an order made to a supplier
The return of goods from customers
Sending empty containers back with the supply trucks for reuse
The return of goods from customers
What are some of the potential downsides of outsourcing? [Select all that apply.]
Language and cultural differences
Increased transportation costs
Less effort to manage the supply chain
Loss of jobs
Increased control
Language and cultural differences
Increased transportation costs
Loss of jobs
A/An ____ supply chain has flexibility to respond to unpredictable changes or circumstances.
agile/ responsive
Which of the below is the goal of supply chain management?
To add value in the organization's transformation of the product.
To return profit to the shareholders of the organization.
To ensure the highest quality product for the consumer.
To match supply and demand as efficiently as possible.
To match supply and demand as efficiently as possible.
Which of the following actions is an example of a risk reduction strategy?
Contracting with partners to spread risk.
Refusing to deal with suppliers in certain areas
Replacing unreliable suppliers
Replacing unreliable suppliers
An important aspect of supply chain management is flow management. What are the three types of flow?
goods/services, information, financial
What are some of the many ways that global supply chains are more complex than purely domestic supply chains? [Select all that apply.]
Increased transportation costs and lead times
Cultural and language differences
Less need for buffer inventory
Currency fluctuations
Increased transportation costs
and lead times
Cultural and language differences
Currency fluctuations
All of the following are current trends in supply chain management EXCEPT ____.
greening the supply chain
integrating information technology
evaluating risks
re-evaluating outsourcing
adopting automated assembly lines
adopting automated assembly lines
All of the following are potential benefits of outsourcing EXCEPT ____.
lowering cost from less expensive labor
shifting risk to supplier
focusing on core competencies
converting variable costs to fixed costs
converting variable costs to fixed costs
Being agile means that a supply chain is flexible enough to be able to respond fairly quickly to what? Check all that apply.
Weather disruptions
Unpredictable
changes
Excess waste generated
Quality issues
Weather disruptions
Unpredictable changes
Quality issues
in what ways can ERP [Enterprise Resource Planning] software effectively assist supply chain managers? [Select all that apply.]
Transportation managing
Production tracking
Ensuring product quality
Demand planning
Inventory Replenishing
Inventory
Replenishing
Production tracking
Transportation managing
Demand planning
True or false: Businesses can eliminate the need for resiliency by managing risk.
false, not eliminate
Technological advances in communications linking operations world-wide is a positive factor of ______.
globalization
True or false: A company holding the major brand in the supply chain does not have to be concerned about negative media perceptions of unethical supplier practices because these suppliers are independently-owned businesses.
false
An alternative to extra ____ is to have backup suppliers for critical items.
inventory
A top management strategic responsibility with respect to supply chains is network configuration. What does this area of responsibility entail?
~Making decisions on new product and services selection and design
~Determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers
~Aligning supply and distribution strategies with organizational strategy and deciding on the degree to which outsourcing will be employed
Determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers
Which function of ERP [Enterprise Resource Planning] software coordinates purchasing information, receiving information, and information about vendor ratings and performance?
Supplier Relationship Management
Customer Relationship Management
Sales and Order Fulfillment
Performance Management
Supplier Relationship Management
Which of the following activities in the supply chain is an operational responsibility?
Order fulfillment
Sourcing
Transportation planning
Collaborating with partners
Order fulfillment
What elements should a company consider when developing a supply chain code of ethics? [Select all that apply.]
Customer, supplier, and company behaviors
Sales and Marketing planning
Environmental issues
Human relations and recruitment policies
Customer, supplier, and company behaviors
Environmental issues
Human relations and recruitment policies
For manufacturing companies approximately what percentage of the cost of finished goods comes from purchased parts and materials?
60%
Which aspects of supply chain management are especially important for small businesses?
Inventory management
International trade
Risk reduction
Some of the duties of _____ are obtaining goods and services that meet or exceed operations requirements in a timely and cost-effective manner, and managing suppliers.
purchasing
A top management responsibility with respect to supply chains is the distribution strategy. What does this area of responsibility entail?
~Using nearby suppliers, reducing transportation time and cost, reducing inventory and the risk of disruptions, and increasing responsiveness
~Deciding whether or not to centralize or decentralize distribution and if a third party logistics company should be hired
~Assessing
long-term capacity needs, including when and how much will be needed and the degree of flexibility to incorporate.
Deciding whether or not to centralize or decentralize distribution and if a third party logistics company should be hired
Which functional group generates most of the purchase orders which Procurement then processes?
Operations
Put the main steps of the purchasing cycle in order from 1 to 5 with 1 being the first step and 5 being the last.
1. receive the requisition
2. select a supplier
3. place an order
4. monitor the order
5. receive the order
Choose the correct example of tactical versus operational inventory management--one of the responsibilities of supply chain managers.
~Tactical: Managing inbound deliveries from suppliers; Operational: Preparing and evaluating forecasts
~Tactical: Converting inputs into outputs; Operational: Coordinating the external supply chain.
~Tactical: Deciding where in the supply chain to hold inventory; Operational: replenishing inventory when depleted
Tactical: Deciding where in the supply chain to hold inventory; Operational: replenishing inventory when depleted
For wholesalers and retailers what approximate percentage of the cost of finished goods comes from purchased inventories?
90%
Which of the following are duties associated with Procurement?
Marketing new product offerings
Sourcing materials, parts or finished goods
Negotiating contracts with suppliers
Re-engineering products or services
Managing vendors' quality and timeliness of delivery
Sourcing materials, parts or finished goods
Negotiating contracts with suppliers
Managing vendors' quality and timeliness of delivery
What is the difference between centralized and decentralized purchasing?
Centralized purchasing handles all orders from one special department. Decentralized purchasing is done by each individual department separately.
Which functional groups will often assist Procurement in negotiating with suppliers when a supplier bid is received for a large order.
Operations
Marketing
Human resources
Accounting
operations
True or false: Purchasing agents should be concerned about the perception of wrongdoing when conducting business on behalf of their employer even when they have done nothing unethical.
true
Which of the following activities in the supply chain is an operational responsibility?
Collaborating with partners
Order fulfillment
Sourcing
Transportation planning
Order fulfillment
What are the different ways that companies use electronic technology in their commercial transactions for e-Business?
Playing video games at work on break
Internet buying and selling
Email communication internal and external
Electronic tracking of shipments
Internet buying and selling
Email communication internal and external
Electronic tracking of shipments
Select the best definition of vendor analysis.
~Requiring each supplier to periodically fill out a survey rating themselves on factors
such as quality, flexibility, and financial stability.
~Purchasing with input from operations will rank each supplier from best to worst on a periodic basis.
~Evaluating the sources of supply in terms of price, quality, reputation and service giving a weighting factor for each criterion.
Evaluating the sources of supply in terms of price, quality, reputation and service giving a weighting factor for each criterion.
Why are supplier audits conducted periodically by the buyer?
~Because government regulations require periodic supplier audits in order to be ISO 9000 certified.
~Because buyers do not trust suppliers to do a good job and surprise audits result in higher quality goods.
~To keep current on vendor capabilities, quality, performance, problems and their resolutions.
To keep current on vendor capabilities, quality, performance, problems and their resolutions.
What are the advantages of centralized purchasing?
Lower prices
Quicker responses
Goodwill in community
Better service
Specialized agents
Lower transportation costs
Lower prices
Specialized agents
Better service
Which of the following constitutes a conflict of interest in Procurement?
~A supplier and purchasing
agent exchange humorous/joke emails.
~One of the suppliers on the bid list is owned by a close relative of the purchasing agent
~A supplier and purchasing agent attend the same religious institution worship services.
One of the suppliers on the bid list is owned by a close relative of the purchasing agent
What does it mean when a buyer certifies a supplier?
The buyer has certified the supplier has met or exceeded its requirements and can forgo inspecting their incoming goods.
What is a broad definition of e-Business?
The use of electronic technology to facilitate business transactions
What is the supplier relationship like when the vendor is viewed as an partner? [Select all the items that apply.]
Price is moderately
important but flexibility is very important
Quality is usually poor and buyer must always inspect
One or few number of suppliers
Openness and sharing of strategic and tactical information readily occurs
Price is moderately important but flexibility is very important
One or few number of suppliers
Openness and sharing of strategic and tactical information readily occurs
What are the main factors involved in choosing a supplier?
User friendliness of website
ROI percentage
Flexibility and lead times
Reputation and financial stability
Quality and quality assurance
Price
Flexibility and lead times
Reputation and financial stability
Quality and quality assurance
Price
What are the advantages of supplier partnerships?
Cooperation in planning
Fewer
suppliers
Improved supplier cash flows
Longer-term relationship
Cooperation in planning
Fewer suppliers
Longer-term relationships
Select the best definition of strategic partnering.
Two or more business organizations with complementary products or services join so that each may realize a strategic benefit.
What are the advantages of decentralized purchasing?
Lower prices
Goodwill in community
Lower transportation costs
Quicker responses
Specialized agents
Better service
Goodwill in community
Lower transportation costs
Quicker responses
True or false: Sometimes if a buyer does not want to develop its own supplier certification program, it will accept standard industry certifications such as ISO 9000.
true
Select the best definition of inventory velocity.
The rate at which goods move through a supply chain.
What is the supplier relationship like when the vendor is viewed as an adversary? [Select all the items that apply.]
Relationship is usually long lasting
There are many suppliers who are pitted against one
another
Flexibility is high and vendor sets up location near buyer
Cost is the primary driver and quality inspection is performed by buyer
There are many suppliers who are pitted against one another
Cost is the primary driver and quality inspection is performed by buyer
Which of the following challenges are obstacles to establishing partnerships with suppliers? [Select all that apply.]
Suppliers
may need to increase their investment in equipment.
The buyer and supplier are in different time zones.
The cultures of the buyer and supplier might conflict.
Many benefits from the partnership accrue to the buyer.
The cultures of the buyer and supplier might conflict.
Suppliers may need to increase their investment in equipment.
Many benefits from the partnership accrue to the buyer.
Which of the below is an example of strategic partnering?
~When a supplier agrees to implement Lean improvement policies to get a supplier certification from the buyer
~When a supplier agrees to hold inventory for the buyer in exchange for a long-term contract
~When a buyer has a large contract and issues a competitive bid for it and selects the lowest price
When a supplier agrees to hold inventory for the buyer in exchange for a long-term contract
What is meant by the term bullwhip effect in inventory management?
Inventory oscillations become progressively larger looking backward through the supply chain.
How are Assemble-to-Order and Make-to-Order different order fulfillment types?
Make-to-Order requires a long time to manufacture. Assemble-to-Order is relatively short using in-stock components
The _____________ the inventory velocity, the ____________ the holding costs.
greater/lower
Put the production control logistical steps in sequential order with 1 being the start of the process and 6 being the last.
1. From incoming vehicles to receiving/storage
2. From storage to
point of use
3. From one work center to the next storage
4. From the last operation to final storage
5. From storage to packing/shipping
6. From shipping to outgoing vehicles
Which of the following factors contribute to the inventory bullwhip effect? [Select all that apply.]
Price increases in the supply chain
Order batching to save on costs
Forecast inaccuracies
Overreaction to stockouts
Order
batching to save on costs
Forecast inaccuracies
Overreaction to stockouts
Why must movement of materials be coordinated?
In order for materials to be shipped using the appropriate method
In order for materials to arrive at appropriate times
In order for materials to arrive at the appropriate destinations
In order for materials to arrive at appropriate times
In order for materials to arrive
at the appropriate destinations
What is traffic management in the context of supply chain management?
Overseeing the shipment of incoming and outgoing goods
All of the following are support items usually required to perform Logistics operations EXCEPT ____.
fuel
equipment & parts
marketing brochures
tools & lubricants
marketing brochures
What does the acronym RFID stand for?
Radio Frequency Identification
Part of logistics is movement of goods within a manufacturing facility, and that movement is part of _______.
production control
Which of the following characteristics are advantages that RFID tags have over bar codes? [Select all that apply.]
RFID tags contain more detailed information than bar codes do.
RFID tags are cheaper to utilize than bar codes are.
RFID tags do not require a line of sight to scan like bar codes do.
Multiple RFID tags can be read simultaneously, whereas bar codes must be scanned individually.
RFID tags contain more detailed information than bar codes do.
RFID tags do not require a line
of sight to scan like bar codes do.
Multiple RFID tags can be read simultaneously, whereas bar codes must be scanned individually.
Which statement is correct about the type of goods that are moved within a facility as part of production control?
"Goods" refers only to raw materials and purchased parts.
"Goods" refers only to finished products.
"Goods" includes supplies, raw materials, work-in-process and finished products.
"Goods" includes supplies, raw materials, work-in-process and finished products.
All of the following are true about strategic sourcing EXCEPT _____.
focuses on purchase price instead of total cost
seeks to maximize value-added activities
employs cross-functional teams to reduce process waste
focuses on risk reduction
ties payments to supplier performance
focuses on purchase price instead of total cost
Which step of the SCOR® model involves the development of a strategy for managing the resources that are used to meet customer demand?
plan
What is the purpose of an RFID tag?
Enables identification of goods in a supply chain using radio waves
Which of the following is not a benefit from using RFID?
Improved quality control
Reduced supplier lead times
Enhanced relationships with partners
Improved supply chain visibility
Reduced supplier lead times
In evaluating shipping alternatives, organizations using a low-cost strategy often opt for _____ methods, while organizations using a responsive strategy more often opt for _____, higher-cost carriers.
slower; quicker
To make a determination as to the appropriate disposition of returned items, what must be done?
Customer must be billed
Items inspected
Items sorted
Directed to the appropriate destination
Items inspected
Items sorted
Directed to the appropriate destination
What is strategic sourcing in supply chain management?
Analyzing the procurement process to lower costs by reducing waste, increase profits, reduce risks & improve performance
Which step of the SCOR® model involves the design of the network used to receive defective and end-of-life products from customers?
Deliver
Return
Make
Source
Return
What are the two different ways companies manage returns?
Gatekeeping and avoidance
What is the definition of a closed-loop supply chain?
When a manufacturer controls both the forward and reverse logistics
What is meant by the term reverse logistics?
Physically retrieving and transporting returned items back to the company or a third-party handler
Firms are encouraged to adopt a ____ ____ to their supply chains where they make decisions that are optimal for the supply chain as a whole.
systems approach
Which statement is true about large vs . small lot sizes?
Large lot sizes can contribute to the bullwhip effect.
Small lot sizes
can increase lead times.
Small lot sizes can reduce setup costs.
Large lot sizes can reduce carrying costs.
Large lot sizes can contribute to the bullwhip effect.
Which step of the SCOR® model involves the development of a strategy for managing the resources that are used to meet customer demand?
Plan
Source
Make
Deliver
plan
When an organizations wants to increase the customer's perception of variety, what technique is most appropriate?
Disintermediation
Cross-docking
Direct shipping
Delayed differentiation
Delayed differentiation
What are some ways that companies can avoid product returns?
Quality assurance to minimize defective products
Improved product design for customer
satisfaction purposes
Put an "all sales are final" sticker on all product packaging.
Quality assurance to minimize defective products
Improved product design for customer satisfaction purposes
Who controls logistics in a closed-loop supply chain?
Vendor
Manufacturer
Customer
Manufacturer
Development of supply chains should be accorded what level of importance?
Routine
Strategic
Tactical
Strategic
One approach to reducing lead times for customer is to ship direct from the factory to the end user. What term refers to reducing one or more steps in the supply chain?
Strategic sourcing
Disintermediation
Delayed differentiation
Cross-docking
Disintermediation