Chapter 1: Intro to Supply Chain Management

A key supply chain difference between Gateway and Apple is that A) Gateway's stores currently carry a large variety of products made by other manufacturers, while Apple carries only Apple products. B) Apple has always carried product in their stores while at one time Gateway stores carried no inventory. C) Gateway has always used a push system while Apple has always used a pull system. D) Gateway has no suppliers, preferring to make everything in-house, while Apple buys many of their components from suppliers.

Apple has always carried product in their stores while at one time Gateway stores carried no inventory.

Retailing in the United States is largely A) push/pull. B) profitable. C) consolidated. D) centralized.

Consolidated.

The objective of customer order fulfillment is to A) get the correct orders to customers by the promised due date at the lowest possible cost. B) maintain a record of product receipt and complete payment. C) maximize the conversion of customer arrivals to customer orders. D) ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.

Get the correct orders to customers by the promised due date at the lowest possible cost.

Webvan designed a supply chain with large warehouses in several major cities in the United States, from which groceries were delivered to customer homes. They failed partly because of A) low demand for their service. B) slow inventory turnover compared to industry averages. C) higher labor costs for picking orders. D) poor quality products.

Higher labor costs for picking orders.

The supply chain strategy category would include a decision about A) which items in the warehouse will be shipped to Malibu. B) which warehouse will supply the Surf City location. C) when the order should be shipped to the little old lady from Pasadena. D) how large the warehouse in Kokomo should be.

How large the warehouse in Kokomo should be.

Each stage in a supply chain is connected through the flow of products, information, and funds. These flows often occur in both directions and are usually managed by A) pricing department. B) one of the stages. C) upper management. D) engineering department.

One of the stages.

The production scheduling process in the manufacturing cycle is similar to the A) order receiving process in the replenishment cycle. B) order fulfillment process in the replenishment cycle. C) order entry process in the replenishment cycle. D) order trigger process in the replenishment cycle.

Order entry process in the replenishment cycle.

Activities involved in the Internal Supply Chain Management (ISCM) macro process include A) marketing. B) order fulfillment. C) sales. D) order management.

Order fulfillment.

Customer order entry is A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership.

The customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.

For any supply chain, the source of revenue is generated by A) efficient operations. B) information flows. C) the customer. D) product flows.

The customer.

Supply chain macro processes include which of the following? A) Internal Relationship Management (IRM) B) Customer Relationship Management (CRM) C) External Relationship Management (ERM) D) Supply Chain Relationship Management (SCRM)

Customer Relationship Management (CRM)

Supply chain surplus involves what two parts? A) Manufacturing cost and selling price B) Customer value and supply chain cost C) Customer value and high quality products D) Reliable transportation and supply chain cost

Customer value and supply chain cost

The customer order cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface.

Customer/retailer interface.

Which of these statements about Dell's supply chain is best? A) Dell's supply chain surplus was largely driven by their negative shipping model. B) Dell's initial success was largely driven by the ability to accurately forecast what customers wanted and supply those models to retail outlets that carried their computers. C) Dell's initial success was largely driven by their Assembly→Customer supply chain linkage. D) Dell's supply chain consists of only two members, Dell and the customer.

Dell's initial success was largely driven by their Assembly→Customer supply chain linkage.

A key issue facing Toyota is A) developing an Internet marketing system. B) whether to specialize in a particular market. C) design of its global production and distribution network. D) how to implement model changes.

Design of its global production and distribution network.

A company would decide whether to outsource or perform a supply chain function in-house during the A) planning phase. B) design phase. C) tactical phase. D) operation phase.

Design phase.

The profitability of a supply chain is impacted primarily by the A) design, planning and operation categories of decisions. B) operation category of decisions. C) design and planning categories of decisions. D) planning and operation categories of decisions.

Design, planning and operation categories of decisions.

The relationship between the manufacturer and supplier during the procurement cycle is very similar to the relationship between A) customer and retailer. B) retailer and distributor. C) distributor and manufacturer.

Distributor and manufacturer.

The manufacturing cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface.

Distributor/manufacturer interface.

The objective of customer order entry is to A) get the correct orders to customers by the promised due date at the lowest possible cost. B) maintain a record of product receipt and complete payment. C) maximize the conversion of customer arrivals to customer orders. D) ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.

Ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.

Which statement about supply chains is best? A) New product development is not a supply chain function. B) If a supplier uses a shipping company to send product to a customer, the shipping company is technically not a supply chain member. C) Funds in a supply chain flow upstream only. D) Flows in a supply chain may be managed by an intermediary.

Flows in a supply chain may be managed by an intermediary.

Walmart's supply chain features clusters of stores around distribution centers, which facilitates A) high transportation costs. B) frequent but inexpensive replenishment at the stores. C) rapid design cycles from their R&D group. D) sharing of information with suppliers.

Frequent but inexpensive replenishment at the stores.

Which set of supply chain flows is correctly described? A) Funds flow only upstream but information flows both upstream and downstream in a supply chain. B) Product flows only downstream and information flows only upstream in a supply chain. C) Information and product both flow upstream and downstream in a supply chain. D) Funds flow both upstream and downstream but product flows only downstream in a supply chain.

Information and product both flow upstream and downstream in a supply chain.

A supply chain features a constant flow of A) information, product and funds. B) personnel, information, and policies. C) processes, funds, and product. D) product, processes, and support.

Information, product and funds.

The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design, because A) it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders. B) it specifies the roles and responsibilities of each member of the supply chain. C) it clearly defines the processes involved and the owners of each process. D) it focuses on processes that are external to the firm.

It categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.

The cycle view of the supply chain is useful when considering operational decisions, because A) it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders. B) it specifies the roles and responsibilities of each member of the supply chain. C) processes are identified as either reactive or speculative. D) it focuses on processes that are external to the firm.

It specifies the roles and responsibilities of each member of the supply chain.

Toyota's global complementation strategy A) calls for plants to be devoted to the production of vehicles for only the local market. B) dictates that parts plants be built to supply all of the needs for each vehicle production plant worldwide. C) requires that a single parts plant, for example, for brakes, export brake components to all of its vehicle assembly plants worldwide. D) mandates that plants can produce vehicles for export to markets that remain strong when the local market weakens.

Mandates that plants can produce vehicles for export to markets that remain strong when the local market weakens.

The procurement cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface.

Manufacturer/supplier interface.

Activities involved in the Customer Relationship Management (CRM) macro process include A) planning of internal production and storage. B) order fulfillment. C) marketing. D) supply planning.

Marketing.

The objective of the customer arrival process is to A) get the correct orders to customers by the promised due date at the lowest possible cost. B) maintain a record of product receipt and complete payment. C) maximize the conversion of customer arrivals to customer orders. D) ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.

Maximize the conversion of customer arrivals to customer orders.

The objective of every supply chain is to A) minimize the overall cost generated. B) maximize the overall value generated. C) minimize the cost to the manufacturer. D) maximize the profit of the manufacturer.

Maximize the overall value generated.

The manufacturing and shipping process in the manufacturing cycle is equivalent to the A) order receiving process in the replenishment cycle. B) order fulfillment process in the replenishment cycle. C) order entry process in the replenishment cycle. D) order trigger process in the replenishment cycle.

Order fulfillment process in the replenishment cycle.

The processes involved in the manufacturing cycle include A) order trigger. B) production scheduling. C) order fulfillment. D) order entry.

Production scheduling.

Zara's supply chain strategy A) results in supply more closely matching customer demand. B) results in longer lead times for store order fulfillment, primarily due to shipping time. C) of purely online sales reduces the costs that they would incur with a brick and mortar store system. D) of high volume but low cost apparel requires production well in advance of the actual selling season for each garment type.

Results in supply more closely matching customer demand.

The processes included in the replenishment cycle include A) order arrival. B) production scheduling. C) retail trigger. D) manufacturing.

Retail trigger.

The replenishment cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface.

Retailer/distributor interface.

Supply chain macro processes include which of the following? A) Internal Relationship Management (IRM) B) External Relationship Management (ERM) C) Supplier Relationship Management (SRM) D) Supply Chain Relationship Management (SCRM)

Supplier Relationship Management (SRM)

Activities involved in the Supplier Relationship Management (SRM) macro process include A) planning of internal production and storage. B) order fulfillment. C) supplier evaluation and selection. D) order management.

Supplier evaluation and selection.

Which sequence of stages is typical for product flow in a supply chain? A) Supplier → Manufacturer → Distributor B) Retailer → Distributor → Customer C) Manufacturer → Retailer → Distributor D) Supplier → Customer → Retailer

Supplier → Manufacturer → Distributor

The decision phases in a supply chain include A) production scheduling. B) customer relationship management. C) supply chain operation. D) supply chain orientation.

Supply chain operation.

Customer arrival refers to A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership.

The point in time when the customer has access to choices and makes a decision regarding a purchase.

Customer order fulfillment refers to A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership.

The process where product is prepared and sent to the customer.

Customer order receiving is A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocates product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership.

The process where the customer receives the product and takes ownership.

The push/pull view of a supply chain holds that A) the processes in a supply chain are divided into a series of activities performed at the interface between successive stages. B) all processes in a supply chain are initiated in response to a customer order. C) all responses in a supply chain are performed in anticipation of customer orders. D) the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.

The processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.

The cycle view of a supply chain holds that A) the processes in a supply chain are divided into 2 categories. B) the processes in a supply chain are divided into a series of activities performed at the interface between successive stages. C) all processes in a supply chain are initiated in response to a customer order. D) all processes in a supply chain are performed in anticipation of customer orders.

The processes in a supply chain are divided into a series of activities performed at the interface between successive stages.

Customer value is A) the sum of the supply chain surplus and supply chain cost. B) the remainder after supply chain cost is subtracted from supply chain surplus. C) the remainder after supply chain surplus is subtracted from supply chain cost. D) supply chain profitability minus the supply chain cost.

The sum of the supply chain surplus and supply chain cost.

For any supply chain, A) management rests solely in the hands of the manufacturer. B) management rests solely in the hands of the distributor. C) if each member focuses on profitability, the overall supply chain profit will be maximized. D) there is only one source of revenue, the customer.

There is only one source of revenue, the customer.

Which of the following statements about pull processes is accurate? A) They may also be referred to as speculative processes. B) Execution is initiated in anticipation of customer orders. C) At the time of execution, demand must be forecast. D) They may also be referred to as reactive processes.

They may also be referred to as reactive processes.

Which of the following statements about push processes is accurate? A) They may also be referred to as speculative processes. B) Execution is initiated in response to customer orders. C) At the time of execution, demand is known with certainty. D) They may also be referred to as reactive processes.

They may also be referred to as speculative processes.

The time horizon of the operation phase is typically A) quarterly or yearly. B) weekly or daily. C) monthly or quarterly. D) over the next several years.

Weekly or daily.