CH11-CH13

Scope refers to the degree of responsibility assigned to a supplier.

true

A global marketing approach has the benefit of making supply and demand easier to balance.

True

A strategy to reduce exchange rate risk is to build flexibility into manufacturing operations and diversify supplier networks.

True

Access to a developed and robust infrastructure is often a challenge for companies setting up global supply chains.

True

Alliances typically involve products that are highly customized and processes that require flexibility to business needs of the client/customer.

True

An effective way to implement a merged global and local marketing approach is to utilize a postponement strategy.

True

Companies should segment relationships across the supply chain to determine necessary levels of management.

True

Consumers across the globe have more money to spend, which has fueled globalization.

True

For a supplier that provides a commodity product, relationship management can be minimal.

True

For high-technology products with short life-cycles, establishing a global supply chain based on low cost labor generally makes sense.

True

Globalization has accelerated and changed the nature of competition.

True

In a contractual relationship, scope is high and criticality is low.

True

In countries with a small power distance culture, people treat each other more as equals.

True

In effective negotiations, both adversarial and problem-solving tactics may be appropriate and effective.

True

It is possible for a global strategy to fail because of cultural differences or misunderstandings.

True

Just-in-time relationships are often characterized as partnerships.

True

Leverage refers to the amount of bargaining power in a negotiation strategy.

True

Most, if not all companies now operate in a global environment.

True

One advantage of a global supply chain network is the ability to specifically target local markets.

True

Poor communication has the potential to cause failure in a supply chain.

True

Reasons for the advances in global trade include advanced transportation methods and information technology.

True

Regional trade agreements and trade protection policies can potentially to make global trade both easier and more difficult for companies.

True

Scope and criticality are the two defining dimensions of supply chain relationships.

True

T/F A company that discloses all relevant financial or operating information to stakeholders would be following a principle of transparency

True

T/F A key component of an effective SCM sustainability strategy is having effective metrics to evaluate performance

True

T/F Effective decisions about SCM sustainability should monetize and consider social, political, and environmental risks.

True

T/F For companies to comply with legal aspects of sustainability, they typically must conform to established design and performance standards.

True

T/F In the Supply Chain Sustainability Model, SCM processes and structures create both environmental and social impacts.

True

T/F Of the three drivers of sustainability initiatives, innovation is internally motivated

True

T/F Option and existence values of sustainability are considered "non-use" values.

True

T/F Product design decisions can improve sustainability performance by ensuring that materials and disposal are environmentally friendly

True

T/F Supply chain networks can mediate the differences between environmental and social sustainability practices.

True

T/F Sustainability practices impact SCM in the areas of product design and manufacturing.

True

T/F Sustainable supply chains can offer financial benefits to a firm, including lower costs of capital.

True

T/F Sustainable supply chains must focus on inputs and outputs of operations

True

T/F The disposal of equipment or products is a key area for sustainability improvement opportunities in a company's organizational processes

True

T/F The external context of SCM includes government and market-based influences

True

T/F The inclusion or absence of sustainability practices in SCM can have significant financial consequences.

True

T/F The life-cycle assessment measure of sustainability considers the potential impacts associated with a product, process, or service.

True

T/F When assessing the cost of sustainability initiatives, the cost-of-control measure considers the costs of preventative measures to avoid damages

True

The keiretsu concept is a strategy to diffuse power differentials in a relationship and allows all parties to grow and prosper.

True

The need to coordinate and collaborate across global supply chains makes relationship management one of the most important aspects of SCM.

True

When a supply chain member encompasses small scope, the risks of that relationship are small.

True

When countries establish local content requirements for an industry, the manufacturing firm must produce a certain percentage of the product within the country.

True

When designing and assessing a trust-based relationship, equity is a key component.

True

When resolving a conflict through mediation, the parties involved retain significant control of the resolution process.

True

Challenges to implementing a standardized product across the globe include: a) Uniformity in distribution b) More balanced supply and demand c) Achieving consistency across global operations d) Low variability in operations e) None of the above

c) achieving consistency across global operations

An _______________ is the most comprehensive and customized buyer-supplier relationship. a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above

c) alliance

_______ is an example of an adversarial negotiating tactic. a) Listening b) Inventing c) Anchoring d) Asking e) b and c

c) anchoring

The sustainability metric that measures the carbon dioxide emitted by manufacturing or logistics processes is known as: a) Life-cycle assessment b) Ecological footprint c) Carbon footprint d) Food mile e) Total cost of ownership

c) carbon footprint

Investment in or developing neighborhoods where a key supplier is located relates to the sustainability principle of: a) Ethics b) Governance c) Community involvement d) Business relationships e) Financial return

c) community involvement

When building trust between supply chain partners, typically the initial step is to establish a: a) Relationship b) Partnership c) Contractual agreement d) Alliance e) None of the above

c) contractual agreement

When a supplier is the only source of a component or service, it would have a high level of ________ to the buyer. a) Scope b) Profitability c) Criticality d) Proximity e) All of the above

c) criticality

Power-based relationships between buyer and supplier can result in: a) Shared objectives b) Information sharing c) Decreased profitability d) Greater coordination e) None of the above

c) decreased profitability

A factor that typically determines the scope of a buyer-supplier relationship is: a) Cost b) Quality c) Degree of customization d) Lead time e) Profitability

c) degree of customization

Of the three drivers of sustainable initiatives, ________ relates to laws and government regulation. a) Innovation b) Compliance c) Enforcement d) Certification e) None of the above

c) enforcement

In the Supply Chain Sustainability Model, _________ context refers to inputs that pertain to government and market-based influences. a) Local b) Strategic c) External d) Internal e) Business

c) external

If a company outsources all of its manufacturing to a supplier, that relationship would have a ______ level of scope. a) Low b) Medium c) High

c) high

A quantitative restriction on the volume of imports is known as a/an: a) Trigger price mechanism b) Tariff c) Import quota d) Export duty e) Local content requirement

c) import quota

A well-functioning _________________ is critical for transporting products into global markets. a) Technology system b) Culture c) Infrastructure d) Political system e) All of the above

c) infrastructure

In the ______ costing system, present and future costs and benefits of SCM activities are monetized. a) Damage costing b) Activity-based costing c) Life-cycle costing d) Cost of control e) Total cost of ownership

c) life-cycle costing

Ensuring consumers are accurately informed about a product's sustainable features is primarily the responsibility of the _________ function. a) Operations b) Risk management c) Marketing d) Sourcing e) Logistics

c) marketing

SCM relationships that do not require significant management are: a) Alliances b) Partnerships c) Non-strategic Transactions d) Strategic e) None of the above

c) non-strategic transactions

_____________ is a strategy that delays customization until demand is more clearly known. a) CPFR b) Vendor managed inventory c) Postponement d) RFID e) None of the above

c) postponement

CPFR is an example of __________ interdependence in a relationship. a) Sequential b) Mutual c) Reciprocal d) Transactional e) Contractual

c) reciprocal

__________ interdependence in a trust-based relationship is more likely to result in greater profitability for all SCM partners. a) Sequential b) Mutual c) Reciprocal d) Transactional e) Contractual

c) reciprocal

NAFTA is an example of a: a) Tariff b) Quota c) Regional trade agreement d) Trade protection mechanism e) Trigger price mechanism

c) regional trade agreement

When people relate to each other more as equals, the culture is characterized as having: a) Large power distance b) Individualism c) Small power distance d) Masculinity e) High context

c) small power distance

_______ is an example of a trade protection mechanism. a) NAFTA b) Regional trade agreement c) Trigger price mechanism d) GATT e) WTO

c) trigger price mechanism

Multiple types of technology are required for a global supply chain to function including: a) Information b) Manufacturing c) Equipment d) All of the above e) None of the above

d) all of the above

The rapid growth of globalization and global trade are a result of: a) Information technology b) Transportation c) Rising global incomes d) All of the above e) None of the above

d) all of the above

Trust-based relationships can improve performance for the following reasons: a) Sharing joint objectives b) Coordination is easier to implement c) Elimination of duplicate efforts d) All of the above e) None of the above

d) all of the above

The first step in developing a trust-based relationship between buyer and supplier is: a) Identify operational roles b) Create a contract c) Design a conflict resolution process d) Assess the relationship e) None of the above

d) assess the relationship

________ is the sustainability principle related most directly to the fair treatment of suppliers, distributors and other partners is: a) Ethics b) Governance c) Transparency d) Business relationships e) Financial return

d) business relationships

One of the biggest problems that arises in SCM relationship management is: a) Profit sharing b) Visibility c) Coordination d) Conflict management e) Contract management

d) conflict management

In a relationship where scope is high but criticality is low, the relationship would be categorized as: a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above

d) contractual

A large cope of tasks provided by a SCM partner can be beneficial because it allows a company to focus on its ___________: a) Profitability b) Customers c) Suppliers d) Core competencies e) None of the above

d) core competencies

When monetizing the environmental and social impacts of a supply chain, ______ relates to the costs of avoiding damages before they occur. a) Damage costing b) Total cost of ownership c) Life-cycle assessment d) Cost-of-control e) Activity-based costing

d) cost-of-control

The two types of sustainable practices that are mediated by supply chain networks are: a) Social and customer b) Packaging and marketing c) Sourcing and logistics d) Environmental and social e) None of the above

d) environmental and social

A _________ marketing approach focuses on bringing standardization to the global market. a) Local b) Strategic c) Tactical d) Global e) Segmented

d) global

When evaluating the sustainability of a supply chain, mangers must focus on both ________ and _______ of each supply chain stage. a) Logistics and transportation b) Marketing and customers c) Packaging and suppliers d) Inputs and outputs e) None of the above

d) inputs and outputs

A non-tariff barrier that requires part of the product be manufactured inside the country is known as a/an: a) Technical standards b) Health regulations c) Tariff d) Local content requirement e) Import quota

d) local content requirement

Countries that rely greatly on explicit contracts and communication are known as: a) Collectivism cultures b) Weak uncertainty avoidance cultures c) Large power distance cultures d) Low context cultures e) None of the above

d) low context cultures

Designing a sustainability framework that seeks only to avoid liability is a known as a/an_________ ethic. a) Reasonable care b) Good works c) Compliance d) Minimalist e) Avoidance

d) minimalist

The most informal and inexpensive dispute resolution procedure is: a) Litigation b) Arbitration c) Mediation d) Negotiation e) Segmentation

d) negotiation

Employee satisfaction and reduced risk are examples of _______ payoffs of sustainable SCM: a) Financial b) Customer c) Operational d) Organizational e) Societal

d) organizational

_______ is an example of a non-cost consideration on which companies are increasingly focused. a) Labor b) Facilities c) Capital d) Poor product design e) Transportation

d) poor product design

_________ is the area of SCM that can greatly impact sustainability initiatives through evaluating the use of materials, sourcing, and disposal. a) Logistics b) Sourcing c) Packaging d) Product design e) Marketing

d) product design

As the level of criticality increases, the relationship between buyer and supplier becomes more: a) Transactional b) Contractual c) Unbalanced d) Relational e) a and d

d) relational

Sustainability problems may occur infrequently and take years to manifest, but responsible companies include these possibilities in their ___________ assessment activities. a) Market b) Financial c) Operational d) Risk e) Business

d) risk

______________ is the degree of responsibility assigned to a supplier. a) Criticality b) Visibility c) Dependency d) Scope e) a and b

d) scope

Unequal power and authority in SCM relationships can be a source of _________ conflict. a) Relational b) Data c) Interest d) Structural e) Value

d) structural

When determining the value of a natural resource, _____ value relates to the benefit derived from consuming the resources: a) Option b) Existence c) Market d) Use e) Profit

d) use

Barriers to implementing an effective global strategy include: a) Management of overall costs b) Risk of political instability c) Exchange rate risks d) Longer lead times e) All of the above

e) all of the above

Manufacturing in a country primarily because of low cost labor is not always the best strategy because: a) Labor can be a small percentage of cost b) Labor costs can change over time c) Workers could be unskilled d) Other costs outweigh labor cost advantage e) All of the above

e) all of the above

Methods for companies to monitor and improve their suppliers' compliance with sustainability practices include: a) Inspections b) Contracts c) Third-party audits d) Training programs e) All of the above

e) all of the above

Reasons for implementing sustainable measures in SCM include: a) Compliance with regulations b) Positive community relations c) Increasing revenues d) Moral/Ethical obligations e) All of the above

e) all of the above

Supply chains can have adverse environmental and business consequences including: a) Monetary costs b) Health risks c) Safety risks d) Environmental costs e) All of the above

e) all of the above

Unexpected costs that can arise from trade at a global level include: a) Border delays b) Increased transit times c) Tariffs d) Higher inventory e) All of the above

e) all of the above

The following attributes are important to the success of a trust-based relationship between parties: a) Low visibility b) Equity c) Commitment d) Limited information sharing e) b and c

e) equity, commitment

It is possible for companies to minimize exchange rate risk through: a) Global sourcing networks b) Diversifying production locations c) Single sourcing d) Tariffs e) a and b

e) global sourcing networks, diversifying production locations

For supply chain management, globalization trends have resulted in: a) Less competition b) Greater competition c) Greater coordination d) Fewer markets e) b and c

e) greater competition, greater coordination

The profile of the global consumer has changed to put greater emphasis on __________. a) Standardized products b) Individualism c) Customized products d) Technology e) b and c

e) individualism, customized products

An example of a problem solving tactic used in negotiations is: a) Inventing b) Referencing c) Anchoring d) Recipricity e) a and b

e) inventing, referencing

Environmental factors that must be considered in a global supply chain strategy include: a) Lead time b) Supplier quality c) Political d) Demographic e) c and d

e) political, demographic

Measuring the effectiveness of sustainability initiatives by estimating the sum of all costs of a product is known as: a) Life-cycle assessment b) Ecological footprint c) Carbon footprint d) Food mile e) Total cost of ownership

e) total cost of ownership

The global nature of SCM relationships, with different cultures, can create _______ conflict between SCM partners. a) Relational b) Data c) Interest d) Structural e) Value

e) value

T/F Sustainability is important but it is a minor theme in supply chain management.

False

T/F Sustainable supply chain practices can result in financial payoffs including improved relationships with stakeholders and employees

False

T/F The "cost-oriented" approach to environmental management relates to protecting and enhancing business performance and increasing profits.

False

T/F The ecological footprint measure of sustainability focuses on the producer, not the consumer.

False

T/F To have environmental integrity in the market place, a company need only to comply with the bare minimum of environmental laws.

False

T/F Utilizing environmentally responsible suppliers can impact SCM sustainability, and compliance should be monitored by the supplier

False

T/F When developing a sustainable SCM strategy, it's important to remember that all industries operate under very similar contexts when it comes to sustainable practices and impacts

False

T/F When evaluating supply chain decisions, an organization with a sustainability strategy would focus only on the economic factors of sustainable operations

False

The World Trade Organization (WTO) and General Agreement on Tariffs and Trade (GATT) have made global trade more difficult because of the added bureaucracy.

False

The biggest global challenge for companies is dealing with political instability and economic factors such as currency stability.

False

The cost of wages is the most important factor for companies to consider when evaluating the labor infrastructure in a global environment.

False

The development of joint objectives is a benefit of power-based relationships.

False

The greater the criticality of a supplier relationship, the smaller the risk.

False

The local marketing approach is becoming less widely used as companies move into global markets.

False

The most comprehensive buyer-supplier relationship is a partnership.

False

Transactional relationships require significant relationship management.

False

When considering the negotiator's dilemma, distributive opportunities are mutually beneficial.

False

T/F Supply chains have few environmental and social impacts.

False

A CPFR program is a good example of sequential operational roles and processes.

False

A global marketing approach that brings standardized products to consumers is not an effective strategy.

False

All SCM relationships should be treated in a similar manner.

False

As criticality of the supplier relationship increases, the relationship becomes more contractual.

False

Companies should strive to establish multiple alliances because close relationships are always beneficial.

False

Criticality refers to the degree of responsibility assigned to a supplier.

False

Cultures with weak uncertainty avoidance are less tolerant of risk.

False

Customer preferences in emerging markets are typically homogenous, making global supply chains easier to manage than mature markets.

False

Firms with primarily a domestic focus are typically more profitable than multinational firms.

False

For companies in an alliance relationship, it is not necessary to have dispute resolution procedures in place.

False

Globalization and new markets creates many opportunities for companies but few risks.

False

Globalization has resulted in less competitive prices for consumers.

False

In SCM relationships, the most effective and fair division of power is an equal 50-50 split.

False

In trust-based relationships, competition between companies typically exists.

False

Litigation is the most inexpensive, quick, and amicable conflict resolution strategy.

False

Non-cost considerations have become less of a determining factor used when companies decide where to locate global facilities.

False

SCM is primarily about the management of suppliers across complex networks of companies.

False

T/F A sustainability framework that seeks to avoid liability is known as a reasonable care ethic.

False

T/F Community relations are a minor aspect of sustainability practices, as they have a smaller impact on supply chains than cost and revenue.

False

T/F It is not necessary for the marketing function to be involved in sustainability strategy development, because marketing does not directly implement the strategy.

False

T/F Of the nine sustainability principles, governance relates to promoting a truthful and fair corporate culture.

False

Work ethic and gender roles are examples of a ____________ factor impacting global supply chains. a) Cultural b) Political c) Technological d) Economical e) Financial

a) cultural

Supply chain benefits that can be achieved through a global strategy include: a) Economies of scale b) Product complexity c) Political risk d) Total cost reduction e) Variable lead times

a) economies of scale

Reduced operating costs and lower capital costs are a _______ payoff of sustainable SCM. a) Financial b) Customer c) Operational d) Organizational e) Societal

a) financial

A ____________marketing approach focuses on bringing customization to global consumers. a) Local b) Strategic c) Tactical d) Global e) Segmented

a) local

When scope and criticality are low, the type of relationship would be: a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above

a) non-strategic transactional

Industry-initiated certification programs are known as _______ drivers of sustainable initiatives. a) Innovation b) Compliance c) Enforcement d) Certification e) None of the above

b) compliance

_________ sustainability refers to the preservation of biological systems over time. a) Social b) Environmental c) Market d) Operational e) Organizational

b) environmental

A weak transportation infrastructure in a developing country can result in: a) Low shipping time variability b) High lead time variability c) Lower distribution costs d) All of the above e) None of the above

b) high lead time variability

Attributes of companies with the greatest potential for gain or loss from sustainability initiatives include: a) Functional products b) High-profile brands c) Low reliance on natural resources d) Limited regulatory exposure e) b and c

b) high-profile brands

Consumers' tolerance for pollution and their desire for environmentally friendly products relates to ________ influences on a company's sustainability strategy. a) Internal b) Market c) Regulatory d) Global e) Financial

b) market

When the component being supplied is low in scope yet critical to the manufacturing of a product, the relationship would be categorized as: a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above

b) partnership

Environmental regulations are an example of a ________ factor impacting global supply chains. a) Cultural b) Political c) Technological d) Economical e) Financial

b) political

The aspect of the Supply Chain Sustainability Model that focuses on establishing management systems that align incentives and rewards is known as: a) Sustainability performance b) Processes c) Leadership d) Financial performance e) None of the above

b) processes

Because of its overlay across all supply chain functions____________ is the most important aspect of SCM. a) Operations b) Relationship management c) Marketing d) CPFR e) Six Sigma

b) relationship management