Section A: Introduction to Supply Chain

A dispute arises over damage to goods shipped between two entities in different countries. Which international standards, if applied at the time of the shipment, would clearly resolve the dispute?

Incoterms

How is a business plan different from a strategic plan?

a business plan focuses on the long-range objectives of a company

How is a strategic plan different from a business plan?

a strategic plan contains a company's vision, mission statement, goals, and objectives

.How can the objectives of marketing be met while also considering other stakeholder objectives? a. marketing and production objectives can be met with higher inventories b. marketing and finance objectives can be met with higher inventories c. marketing and production objectives can be met with lower inventories d. marketing and finance objectives can be met with lower inventories

a. marketing and production objectives can be met with higher inventories

What is sustainability?

activities that provide present benefit without compromising the needs of future generations

Two companies offer comparable products with relatively similar quality and pricing, but one company dramatically leads the market due to its after-sales support. This is an example of:

an order winner

Which is a major objective of materials management? a. provide sufficient equitable employment b. provide the required level of customer service c. support cost accounting by decreasing inventory turns d. provide cost information for management decisions

b. provide the required level of customer service

What is the term for an extreme change in the supply position upstream in a supply chain generated by a small change in demand downstream?

bullwhip effect

A statement of long-range strategy and revenue, cost, and profit objectives usually accompanied by budgets, a projected balance sheet, and a cash flow is called a:

business plan

Which is a category of performance measures that relates to daily work routines, such as cycle time and utilization? a. tactical metrics b. strategic metrics c. operational metrics d. sustainability metrics

c. operational metrics

What entity or condition impacts customer demand by improved communication, global transportation, and worldwide sourcing?

competition

Multiple functional groups work on a new product design at the same time, as opposed to working in sequence, which reduces cycle time. This is referred to as:

concurrent engineering

What entity or condition impacts demand by providing expectations that products will be sold at a fair price, that higher quality is required, that delivery lead time is negligible, that before- and after-sales service is available, and that products and their volumes are flexible?

customers

In a conventional manufacturing planning and control environment which of the following objectives often conflicts? a. meet customer service targets and minimize delivery lead times b. minimize production costs and decrease product variety c. minimize production costs and increase the length of production runs d. meet customer service targets and decrease inventory investment

d. meet customer service targets and decrease inventory investment

What entity or condition impacts customer demand due to decisions that customers and companies must make in regard to financial resources?

economy

What is the term for a distinctive characteristic of a good or service that may be provided by an option, an accessory, or an attachment?

feature

What entity or condition impacts customer demand through regulations in areas such as safety, liability, taxes, or the environment?

government

Why is manufacturing important to the economy?

it adds value to products to generate wealth

Why does the UN Global Compact single out supply chain partners as an important factor in a firm's ability to comply with its 10 principles?

it motivates suppliers in countries with low labor costs toward compliance

What term refers to a measure of satisfying demand through inventory or through a production schedule that satisfies the customers' requested delivery dates and quantities?

level of service

A company is debating whether to add production capacity or outsource the additional volume. The process they must go through is called a:

make-or buy decision

The competitive characteristics that a firm must exhibit to be a viable competitor in the marketplace are known as:

order qualifiers

Characteristics that encourage customers to choose one product or service over another are called:

order winners

What is the first step to forming a supply chain?

orienting the organization to become more cross-functional

A piece of electronics equipment is several years old, and new models with new functionality are common on store shelves. Which of the following factors are likely to be more important to consumers when choosing this product? a. Design and availability b. Quality and delivery c. Price and delivery d. Price and quality

price and delivery

What is a planned series of actions or operations that advances a material or procedure from one stage of completion to another?

process

What is simultaneous engineering?

product design and process design work hand in hand to achieve the design objectives and to produce the product for the lowest possible cost

The price for a product must fall within a certain range for a supplier to be considered by potential customers. This condition is known as an order:

qualifier

What entity or condition impacts customer demand as a standard that consumers and companies require of any product?

quality

What term refers to a systematic approach to identifying, analyzing, and addressing an organization's exposure to uncertainty within the supply chain?

risk management

In its narrowest sense, an organization that provides an intangible product is in the:

service industry

A company is seeking to design a new product as a low-cost manufacturer. What design method brings product and process design groups together to achieve this objective?

simultaneous engineering

What is a business plan stated in and grouped by?

stated in monetary units and grouped by product family

What defines how to marshal and determine actions to support the mission, goals, and objectives of an organization?

strategic plan

What term refers to the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally?

supply chain management

A key design factor for today's manufacturers might include taking product back at the end of its life cycle to dispose of properly. This would be an example of:

sustainability

Recycling wastes, such as plastic, paper, metals, etc., for reuse in today's products and thus minimizing landfills is an example of:

sustainability

A company losing market share due to price competition should incorporate what technique?

value chain analysis

What is an examination of all links a company uses to produce and deliver its products and services, starting from the organization point and continuing through deliver to the final customer?

value stream analysis

The shared perception of the organization's future, or what the organization will achieve, is known as its:

vision