Quiz 10: Supply Chain Management Strategy and Design
Statistics
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A supply chain is a network of suppliers, manufacturers, warehouses, distributors, and retailers who, through coordinated plans and activities, develop products by converting raw materials to finished goods inventory. It encompasses all the activities associated with the flow of materials and information in the transformation of goods and services from raw materials to end consumers.
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Supply chains require close collaboration, cooperation, and communication among members to be effective. The responsiveness of supply chains to changing market requirements and their overall efficiency are important issues in supply chain design and management. Build-to-order (BTO) systems are successful business strategies in managing market-responsive supply chains. Build-to-stock (BTS) or make-to-stock (MTS) supply chains fill customer orders from stocks of inventory of finished products that are kept at various points in the network. Supply chain members carry buffer (or extra) inventory at various stages of the supply chain to minimize the negative effects of uncertainty and to keep goods and services flowing smoothly from suppliers to customers. The bullwhip effect occurs when slight to Medium demand variability becomes magnified as demand information is transmitted back upstream in the supply chain.
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Sustainability has become one of the most visible recent trends in operations and supply chain management. The impetus for, and commitment to, sustainability generally comes from downstream in the supply chain and moves back upstream to include suppliers. Companies have found that suppliers can account for as much as 80% of the resources consumed in a product's supply chain, and so many must work with and guide suppliers to reduce the inefficient use of resources, reduce the use of raw materials, reduce waste, and recycle; for example, improving fuel efficiency in a distribution fleet, having employees telecommute, using eco-friendly packaging materials, and building energy-efficient facilities.
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Q 5Q 5
Provide an overview of the four areas where information technology assists with supply chain integration.
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Q 6Q 6
Discuss tools for monitoring supply chain performance and calculate key performance indicators.
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Q 7Q 7
Globalization and advances in information technology are primary reasons why supply chain management has become a competitive priority for companies.
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True False
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True False
Q 9Q 9
The supply chain for a service tends to be more compacted and less extended than a supply chain for a manufactured good.
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True False
Q 10Q 10
Because value chain and supply chain have similar meanings they are often used interchangeably.
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True False
Q 11Q 11
A supply chain encompasses only the activities associated with the flow of goods and services.
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True False
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True False
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True False
Q 14Q 14
Traditionally, each supply chain member was viewed as a separate, stand-alone entity focused on its own goals.
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True False
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True False
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True False
Q 17Q 17
The bullwhip effect occurs when slight to moderate demand variability becomes magnified as demand information is transmitted back upstream.
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True False
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True False
Q 19Q 19
One way to cope with the bullwhip effect is for supply chain members to share demand information.
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True False
Q 20Q 20
Collaborative planning, forecasting, and replenishment (CPFR) is a useful tool supporting supply chain integration.
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True False
Q 21Q 21
Supply chain management focuses on integrating and managing the flow of manufactured goods, services and related information.
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True False
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True False
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True False
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True False
Q 25Q 25
A computer-to-computer exchange of business documents in a standard format is known as electronic data interchange (EDI).
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True False
Q 26Q 26
Use of radio frequency identification (RFID) technology makes it possible for a customer to determine production schedules.
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True False
Q 27Q 27
Enterprise Resource Planning (ERP) is software that helps integrate many of the supply chain components by sharing and organizing information and data among supply chain members.
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True False
Q 28Q 28
A supply chain consists of an integrated group of processes to source, make, and store products.
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True False
Q 29Q 29
Fill rate is one of the three key performance indicators in measuring supply chain performance.
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True False
Q 30Q 30
The supply chain operations reference (SCOR) model reports the fraction of orders filled by a distribution centre in a specific time period.
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True False
Q 31Q 31
Supply chain processes include
A) procurement.
B) production.
C) distribution.
D) all of the above.
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Multiple Choice
Q 32Q 32
Which of the following is not an area of responsibility in a demand-driven value chain?
A) demand Management
B) revenue Management
C) product Management
D) supply Management
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Multiple Choice
Q 33Q 33
The purchase of goods and services from suppliers is known as
A) product management
B) supply management
C) procurement
D) the supply chain
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Multiple Choice
Q 34Q 34
The suppliers in a supply chain are referred to as ___ supply chain members.
A) downstream
B) midstream
C) upstream
D) none of the above
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Multiple Choice
Q 35Q 35
Distributors, warehouses, and retailers are referred to as ___ supply chain members.
A) downstream
B) upstream
C) procurement
D) none of the above
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Multiple Choice
Q 36Q 36
Which of the following is not a key to effective supply chain management?
A) communication among members
B) independence among members
C) collaboration among members
D) trust among members
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Multiple Choice
Q 37Q 37
Information sharing among supply chain members will typically result in all of the following except
A) faster response times.
B) early problem detection.
C) an increased bullwhip effect.
D) greater trust and confidence among supply chain members.
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Multiple Choice
Q 38Q 38
Which of the following is not one of the three key performance indicators (KPI) used to measure supply chain performance?
A) inventory turnover
B) postponement rate
C) inventory days of supply
D) fill rate
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Multiple Choice
Q 39Q 39
Supply chain management focuses on integrating and managing the flow of
A) services.
B) information.
C) goods.
D) all the above.
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Multiple Choice
Q 40Q 40
The bullwhip effect can
A) increase inventories.
B) increase demand.
C) increase customer service levels.
D) increase capacity.
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Multiple Choice
Q 41Q 41
All the following are approaches used in risk pooling within a supply chain except
A) reducing the number and variety of parts.
B) creating flexible capacity.
C) encouraging large orders.
D) combining inventories from multiple locations into one location.
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Multiple Choice
Q 42Q 42
One way to reduce the bullwhip effect is for supply chain members to
A) make ordering decisions independently of each other.
B) create demand forecasts independently of other supply chain members.
C) share demand forecasts with other supply chain members.
D) restrict information flows between supply chain members.
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Multiple Choice
Q 43Q 43
Which of the following is not a contributing factor to supply chain uncertainty?
A) accurate demand forecasting
B) price fluctuations and discounts
C) long variable lead times
D) incomplete shipments
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Multiple Choice
Q 44Q 44
Companies resist establishing green supply chains for all the following reasons except that
A) the market is soft for products with green attributes.
B) green manufacturing requires costly new equipment and practice.
C) green initiatives lower costs because fewer resources are consumed.
D) green practices face additional government, societal and social pressures.
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Multiple Choice
Q 45Q 45
The impetus for sustainability generally comes from
A) upstream in the supply chain and moves downstream
B) downstream in the supply chain and moves upstream
C) government
D) environmental lobbying
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Multiple Choice
Q 46Q 46
Which of the following is a quality improvement goal that can have positive impacts on supply chain sustainability?
A) reducing inspections
B) holding more inventory
C) eliminating returned products
D) reducing shipments
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Multiple Choice
Q 47Q 47
A computer-to-computer exchange of business documents in a standard format is known as
A) e-business.
B) electronic data interchange (EDI).
C) radio frequency identification (RFID).
D) point-of-sale data.
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Multiple Choice
Q 48Q 48
All the following are enablers of efficient supply chain management except
A) bar codes.
B) price tags.
C) RFID tags.
D) the Internet.
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Multiple Choice
Q 49Q 49
___ is not a perceived advantage of radio frequency identification (RFID) technology.
A) Loss of personal privacy
B) Reduced stock-outs
C) Prevention of fraud or theft
D) Lower distribution costs
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Multiple Choice
Q 50Q 50
A new innovation that merges the digital world with the physical is known as
A) the Internet of Things
B) Electronic Data Interchange
C) Bar Codes
D) E-Business
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Multiple Choice
Q 51Q 51
Supply chain integration does not involve ___ among supply chain members.
A) providing information
B) collaborating on replenishment
C) reducing competition
D) coordinating work flows
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Multiple Choice
Q 52Q 52
A distributor that plans inventory for a customer is an example of
A) SCM
B) VMI
C) EDI
D) ERP
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Multiple Choice
Q 53Q 53
The process of two or more companies in a supply chain synchronizing their individual demand forecasts to develop a single plan for meeting customer demand is known as
A) RFID
B) VMI
C) CPFR
D) ERP
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Multiple Choice
Q 54Q 54
All of the following are performance metrics in the SCOR system, except
A) perfect order fulfillment.
B) production flexibility.
C) value-added productivity.
D) asset fulfillment.
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Multiple Choice
Q 55Q 55
Increased uncertainty and variability in a supply chain typically results in
A) faster deliveries.
B) more accurate order fulfillment.
C) larger inventories.
D) lower costs.
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Multiple Choice
Q 56Q 56
Inventory turnover is computed by
A) dividing the cost of goods sold by the average aggregate inventory value.
B) dividing the average aggregate inventory value by costs of goods sold.
C) multiplying the average aggregate inventory value by cost of goods sold.
D) subtracting cost of goods sold from the average aggregate inventory value.
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Multiple Choice
Q 57Q 57
A company that produces small electric motors for treadmills had cost of goods sold last year of $241,000,000. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 365 days a year, the days of supply being held in inventory is
A) 44.35.
B) 27.39.
C) 8.23.
D) 0.1215.
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Multiple Choice
Q 58Q 58
A company that produces specialized video equipment had cost of goods sold last year of $127,000,000. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year, then the number of inventory turns would be
A) 0.0979.
B) 4.3795.
C) 8.9784.
D) 10.2090.
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Multiple Choice
Q 59Q 59
A company that produces specialized video equipment had cost of goods sold last year of $127,000,000. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year, then the weeks of supply in inventory would be
A) 4.898.
B) 0.098.
C) 10.209.
D) 35.75.
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Multiple Choice
Q 60Q 60
A company that produces printer cartridges had cost of goods sold last year of $629,462,423. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year, then the number of inventory turns would be
A) 3.720.
B) 2.493.
C) 13.4546.
D) 28.33.
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Multiple Choice
Q 61Q 61
A company that produces printer cartridges had cost of goods sold last year of $629,462,423. The average value of inventory for raw materials, work-in-process, and finished goods are shown in the table below: If the company operates 50 weeks per year, then the weeks of supply in inventory would be
A) 3.716.
B) 2.493.
C) 13.4546.
D) 28.33.
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Multiple Choice
Q 62Q 62
The fraction of orders filled by a distribution centre or warehouse within a specific time period is referred to as the
A) inventory turnover.
B) inventory supply time.
C) fill rate.
D) aggregate orders processed.
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Multiple Choice
Q 63Q 63
Which of the following is not a key performance indicator used in supply chain management?
A) fill rate
B) days of supply
C) cost of goods
D) inventory turns.
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Multiple Choice
Q 64Q 64
Which of the following is a strategic metric for asset management efficiency under the SCOR model
A) total cost to serve
B) return on working capital
C) order fulfillment cycle time
D) overall value at risk
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Multiple Choice
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Q 72Q 72
Briefly describe supply chain integration and identify some potential benefits it can have on supply chain performance.
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