Question 1

Measurement of supply chain performance varies by industry and company,but typical measures include all of the following metrics except
A) the number of times inventory turns over in a year.
B) the number of orders that are fulfilled perfectly.
C) the level of defects per million.
D) the percentage of orders delivered on time.
E) the ratio of in-stock inventory versus the level of debt.

Accepted Answer

Measurement of supply chain performance varies by industry and company, because the way success is defined also tends to vary, and performance assessment should be aligned with a company's strategic objectives and the key factors for success. Typical measures include such metrics as the number of times inventory turns over in a year, the ratio of in-stock inventory versus the level of sales, the percentage of orders delivered on time, the level of defects per million, the proportion of orders that are fulfilled perfectly, and the number of orders that are unable to be filled due to stockouts.

Question 2

According to the text,increased emphasis on the achievement of effective supply chain performance has resulted from all of the following except
A) shorter, more predictable product life cycles.
B) the impact of unplanned political and social events.
C) web-enabled tools for planning, executing, and optimizing supply chains.
D) the impact of unplanned economic events.

Accepted Answer

Shorter, less predictable product life cycles, as well as the impact of unplanned economic, political, and social events, have placed further emphasis on the achievement of effective supply chain performance. New technologies, including web-enabled tools for supply chain planning, execution, and optimization, have enhanced the availability of data and integration with suppliers and customers, helping to enhance the international competitiveness of companies that have adopted and mastered these technologies.

Question 3

Production methods between capital- and labor-intensive methods are classified as intermediate technology.

Accepted Answer

Something midway between the capital- and labor-intensive processes that will create more jobs, require less capital, but still produce the desired product quality, especially in countries with lower levels of economic development and income are considered intermediate technologies.

Question 4

Standards are documented agreements containing general guidelines,rules,or definitions of the characteristics of a product,process,or service.

Accepted Answer

Standards are documented agreements containing technical specifications or other precise criteria that will be used consistently as guidelines, rules, or definitions of the characteristics of a product, process, or service.

Question 5

Worldwide uniformity or standardization in manufacturing methods hinders headquarters' effectiveness in keeping production specifications current.

Accepted Answer

Worldwide uniformity or standardization in manufacturing methods increases headquarters' effectiveness in keeping production specifications current.

Question 6

A typical company's supply chain costs can represent more than ____ percent of assets.
A) 20
B) 35
C) 50
D) 60
E) 80

Accepted Answer

As stated directly in the text, supply chains are an integral part of global quality and cost management initiatives, because a typical company's supply chain costs can represent more than 50 percent of assets for a company.

Question 7

Hiring others to perform some of the noncore activities and decision making in a company's value chain,rather than having the company and its employees continue to perform these tasks,is
A) offshoring.
B) outsourcing.
C) supply chain management.
D) subcontracting.

Accepted Answer

As stated directly in the text, outsourcing is hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform those activities.

Question 8

Unless a product or service is purchased from a company that is registered to the appropriate ISO 9000 standard,a buyer cannot be assured that the quality of what was received will be what was expected.

Accepted Answer

The focus of standards is to establish quality management procedures, through detailed documentation, work instructions, and record keeping. These procedures say nothing about the actual quality of the product.

Question 9

The process of coordinating and integrating the flow of materials,information,finances,and services within and among companies in the value chain from suppliers to the ultimate consumer is often referred to as
A) offshoring.
B) international strategy.
C) outsourcing.
D) supply chain management.
E) logistics.

Accepted Answer

The process of coordinating and integrating the flow of materials, information, finances, and services within and among companies in the value chain from suppliers to the ultimate consumer is often referred to as supply chain management.

Question 10

Backward vertical integration establishes facilities to manufacture inputs used in the production of a firm's final product.

Accepted Answer

Backward integration is an arrangement in which facilities are established to manufacture inputs used in the production of a firm's final products. That is, manufacturing capacity to produce essential inputs will be included in the plant design even though it would be preferable from an economic standpoint to purchase those materials from outside vendors.

Question 11

According to the text
A) design is an important factor in the structure of a company's global supply chain.
B) design determines the extent to which a company's strategy will be standardized across nations.
C) common approaches to design are concurrent engineering and "over the top."
D) new approaches to design include Starbucks' use of bars in China to promote community interactions.

Accepted Answer

An important factor in the structure and management of a company's global supply chain is the process of design. The design of a company's products and services has a fundamental relationship with the types of inputs that the company will require, including labor, materials, information, and financing. An important consideration in design is the extent to which the international company's products and services will be standardized across nations or regions or adapted to meet the different needs of various markets.

Question 12

Which of the following is not true about 3D printing?
A) It is sometimes called additive manufacturing.
B) The most common current application of this technology is in producing prototypes.
C) It provides the technology for increased use of large production runs when companies need inventory of important parts.
D) It may change supply chains toward more focus on raw materials.
E) It may revolutionize the logistics of spare parts and service activities.

Accepted Answer

Unlike traditional manufacturing, there is not likely to be a cost advantage from locating 3D printing sites abroad. By allowing production to be completed in closer proximity to the customer instead, it facilitates just-in-time production close to the place of assembly or sale and reduces the need for large production runs and the time and money required for transporting and warehousing of products.

Question 13

The local manufacturing organization is usually integrated vertically to a greater extent than is the parent company.

Accepted Answer

The local manufacturing organization is rarely integrated vertically to the extent that the parent company is.

Question 14

Activities that are involved in producing a company's products and services and how these activities are linked together are often referred to as
A) value chains.
B) supply chains.
C) organization design.
D) operations management.
E) logistics.

Accepted Answer

As stated directly in the text, supply chain refers to the activities required to produce a company's products and services and the way these activities are linked together.

Question 15

According to the text,it has been argued that the ultimate goal of effective supply chain management systems is to
A) reduce costs.
B) improve quality.
C) reduce inventory.
D) increase sales.
E) increase standardization.

Accepted Answer

Because inventory is carried at each stage in the supply chain, and because inventory ties up money, it has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory, consistent with the prerequisites that the company's products be available when needed and at the desired level of quality and quantity.

Question 16

When production equipment is similar,home office control of quality in foreign affiliates is more difficult because management must ensure that all plants adhere to the same standard.

Accepted Answer

When production equipment is similar, home office control of quality in foreign affiliates is less difficult because management can expect all plants adhere to the same standard.

Question 17

Packaging and transportation requirements for a product can significantly influence logistics costs,and these factors should be addressed during the post-design steps in a company's value chain.

Accepted Answer

Packaging and transportation requirements for a product can significantly influence logistics costs, and these factors should be addressed during design as well as in other steps in a company's value chain.

Question 18

A typical company's supply chain costs can represent more than ____ percent of a company's revenues.
A) 20
B) 35
C) 50
D) 60
E) 80

Accepted Answer

As stated directly in the text, supply chains are an integral part of global quality and cost management initiatives, because a typical company's supply chain costs can represent more than 80 percent of a company's revenues.

Question 19

Generally,it is easier for international firms to standardize the concepts of total quality management and synchronous manufacturing in their foreign plants than it is to standardize the actual production facilities.

Accepted Answer

Generally, it is easier for international companies to standardize concepts such as total quality management and synchronous manufacturing in their overseas affiliates than it is to standardize the actual manufacturing facilities. Units of an international multiplant operation differ in size, machinery, and procedures because of the intervention of the foreign environmental forces, especially the economic, cultural, and political forces.

Question 20

According to the text,Zara's strategy of speed and flexibility has enabled the company to eliminate inventory.

Accepted Answer

Zara's strategy of speed and flexibility has enabled the company to shorten the fashion cycle almost to the point where it no longer exists and to better manage inventory, but the company has not eliminated inventory.

Quiz 18: Appendix C: Global Operations and Supply Chain Management

Measurement of supply chain performance varies by industry and company,but typical measures include all of the following metrics except

According to the text,increased emphasis on the achievement of effective supply chain performance has resulted from all of the following except

Production methods between capital- and labor-intensive methods are classified as intermediate technology.

Standards are documented agreements containing general guidelines,rules,or definitions of the characteristics of a product,process,or service.

Worldwide uniformity or standardization in manufacturing methods hinders headquarters' effectiveness in keeping production specifications current.

A typical company's supply chain costs can represent more than ____ percent of assets.

Hiring others to perform some of the noncore activities and decision making in a company's value chain,rather than having the company and its employees continue to perform these tasks,is

Unless a product or service is purchased from a company that is registered to the appropriate ISO 9000 standard,a buyer cannot be assured that the quality of what was received will be what was expected.

The process of coordinating and integrating the flow of materials,information,finances,and services within and among companies in the value chain from suppliers to the ultimate consumer is often referred to as

Backward vertical integration establishes facilities to manufacture inputs used in the production of a firm's final product.

According to the text

Which of the following is not true about 3D printing?

The local manufacturing organization is usually integrated vertically to a greater extent than is the parent company.

Activities that are involved in producing a company's products and services and how these activities are linked together are often referred to as

According to the text,it has been argued that the ultimate goal of effective supply chain management systems is to

When production equipment is similar,home office control of quality in foreign affiliates is more difficult because management must ensure that all plants adhere to the same standard.

Packaging and transportation requirements for a product can significantly influence logistics costs,and these factors should be addressed during the post-design steps in a company's value chain.

A typical company's supply chain costs can represent more than ____ percent of a company's revenues.

Generally,it is easier for international firms to standardize the concepts of total quality management and synchronous manufacturing in their foreign plants than it is to standardize the actual production facilities.

According to the text,Zara's strategy of speed and flexibility has enabled the company to eliminate inventory.