Supply Chain Management - Chapter 1

When did U.S. manufacturers begin to use mass production techniques to reduce costs and improve productivity?

1950s

Which of the following would be considered a third party provider? A. firm that leases storage warehousing b. An intermediate component manufacturer c. A Raw materials supplier d. An end product manufacturer

A firm that leases storage warehousing

According to the textbook, which of the following conditions need NOT be present for successful supply chain management: a. Collaboration b. Accurate communications c. High levels of trust d. Adversarial relationships

Adversarial relationships

When a particular item is in short supply accompanied by rising prices, a firm might find it beneficial to:

Align itself with one of the suppliers to ensure a continued supply of the scarce item.

The following is an example of the bullwhip effect: a. Barkley's produces a defective product and thus realizes an excessive increase in consumer returns b. Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers c. Barkley's is unhappy with the performance of a distributor which causes a chain-reaction of replacements to companies involved in its supply chain d. Barkley's products are so successful that it adds a new retailer for distribution

Barkley's incorrectly anticipates consumer demand resulting in stockouts at several popular retailers

According to the text, which of the following is considered a current trend in supply chain management?

Both "Using supply chain analytics" and "Increasing supply chain visibility"

The continuing cycle of erratic demand causing forecasts to include safety stock which in turn magnify supplier forecasts and cause production planning problems is known as:

Bullwhip effect

Which of the following terms describes an amplification of the variation in the demand pattern along the supply chain? a. Assignable variations b. Benchmarking c. Bullwhip effect d. Process integration

Bullwhip effect

Developed in the 1990's as a popular way of developing radically new business processes in an effort to reduce waste and increase performance is referred to as:

Business process reengineering

Which of the following terms is described as rethinking and redesigning of business processes to reduce waste and increase performance? a. Benchmarking b. Process integration c. Business process reengineering d. Vertical integration

Business process reengineering

According to the textbook, conditions which must be present for successful supply chain management include:

Cooperation among firms

Supply chain management includes the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. It also includes:

Coordination and collaboration with channel partners

Which of the following is a reverse logistics activity? a. UPS delivering the product to the end customer b. Customer returning a car to the dealer for warranty repair c. Inspecting raw materials when they arrive at factory d. Sharing information with supply chain partners through the Internet

Customer returning a car to the dealer for warranty repair

Which of the following activities would fall under the foundational element of operation?

Demand management

Which of the following can happen as a result of the bullwhip effect? a. Quicker distribution to warehouses b. Increase in defective products c. Decreased levels of safety stock d. Excess costs for each firm in a supply chain

Excess costs for each firm in a supply chain

A value-enhancing benefit from supply chain management efforts would be: a. Centralized decision making b. Lower purchasing and inventory carrying costs c. Larger supply base d. Increased organizational cost

Lower purchasing and inventory carrying costs

Which of the following can happen because of the bullwhip effect? a. Smooth production planning and static requirements b. Oversupply of goods leading to increased inventory costs c. Effective purchasing methods resulting in decreased inventory costs d. Increased profit in the long term

Oversupply of goods leading to increased inventory costs. --Trade estimates suggest that the bullwhip effect results in excess costs on the order of 12 to 25 percent for each firm in a supply chain.

The term vertical integration means to:

Own/buy your suppliers and/or customers

The following strategy is usually employed by lean organizations in an effort to ensure continued quality compliance among suppliers and with internal production facilities:

Six Sigma

One of the more crucial issues within supply management involves encouraging or helping the firm's suppliers to perform in some desired fashion. The term for this is _______________. a. Supply base rationalization b. Co-sourcing c. Inventory Management d. Supplier Management

Supplier Management

An internal or external event that causes a disruption or failure of supply chain operations is an example of

Supply chain risk

According to the text, the FOUR important elements of the supply chain are:

Supply, operations, logistics, integration

Which of the following acronyms is NOT paired with its correct "translation?"

TLS - Third-party Logistics Services

The one true source of income for all supply chain organizations is

The supply chain's end customer

Which of the following statements is NOT true of many large firms today? a. They are selling-off business units to focus more on core capabilities b. They are trying to create alliances or strategic partnerships with suppliers c. Use of vertical integration is much more common due to the low cost and ease in managing diverse business units d. All of these choices are correct.

Use of vertical integration is much more common due to the low cost and ease in managing diverse business units

A form of inventory management (also referred to just-in-time) is accomplished through use of a: a. Lean production system b. Distribution network c. Third-party logistics service d. Strategic partnership

a. Lean production system

Examining raw supply chain data and then reaching conclusions or making predictions with the information is sometimes referred to as: a. Supply chain analytics b. Electronic data interchange c. Enterprise resource planning d. Profit-leverage effect

a. Supply chain analytics

Which company is experimenting with the management of the final mile of delivery in some markets, using small aerial drones to deliver shoebox-size packages from fulfillment centers?

amazon

Meeting the needs of current supply chain members without hindering the ability to meet the needs of future generations refers to: a. Supply chain performance measurement b. Supply chain sustainability c. Supply chain visibility d. Supply chain analytics

b. Supply chain sustainability

The following is an example of the bullwhip effect: a. IGT produces a defective product and thus realizes an excessive increase in consumer returns b. IGT's products are so successful that it adds a new retailer for distribution c. IGT incorrectly anticipates consumer demand resulting in stockouts at several popular retailers d. IGT is unhappy with the performance of a distributor which causes a chain-reaction of replacements to companies involved in its supply chain

c. IGT incorrectly anticipates consumer demand resulting in stockouts at several popular retailers

Designing and building a distribution network to ensure successful product delivery is part of which foundation element? a. Operations b. Supply c. Logistics d. Integration

c. Logistics

Which of the following is a reverse logistics activity: a. Managing the quality of products b. Developing a collaborative relationship with your supplier c. Recycling products and components d. Delivering finished goods to your customer

c. Recycling products and components

Which of the following statements is TRUE? a. Service response logistics is the digital distribution of services b. One of the key activities in supplier management is material requirements planning c. Six Sigma was originally created at Motorola in the 1980s d. The lean production system has also been referred to as the Intel production system

c. Six Sigma was originally created at Motorola in the 1980s

Which of the following service providers can help to get goods where they need to be in a timely fashion? a. Trucking/Shipping companies b. Public warehousing firms c. Freight forwarders d. All of these choices are correct.

d. All of these choices are correct.

which of the following strategies might help eliminate the bullwhip effect? a. Reduction in the number of suppliers b. Reduction of safety stock c. Manufacturers knowing its customers' purchase plans d. All of these choices are correct.

d. All of these choices are correct.

Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.

false

Which of the following is a software system that can be used for managing inventory, purchases, and production schedules? a. Inventory sourcing (IS) b. Demand capacity tracking (DCT) c. Material requirements planning (MRP) d. Demand process reengineering (DPR)

material requirements planning (MRP)

Which of the following activities allows buyers to assume the supplier will meet certain product quality and service requirements?

supplier certification

Lean production is typically associated with which of the following company's production systems?

toyota

The bullwhip effect causes an amplification of the variation in the demand pattern along the supply chain.

true