Chapter 15: Supply Chain Management

Put the production control logistical steps in sequential order with 1 being the start of the process

1. From incoming vehicles to receiving/storage 2. From storage to point of use 3. From one work center to the next storage 4. From the last operation to final storage 5. From storage to packing/shipping 6. From shipping to outgoing vehicles

All of the following are current trends in supply chain management except which?

Adopting automated assembly lines

What is strategic sourcing in supply chain management?

Analyzing the procurement process to lower costs by reducing waste, increase profits, reduce risks & improve performance.

All of the following aspects of the business are typically covered in a supplier audit except which?

Cleanliness of site cafeteria, break rooms

A top management responsibility with respect to supply chains is the distribution strategy. What does this area of responsibility entail?

Deciding whether or not to centralize or decentralize distribution and if a third party logistics company should be hired.

Which functional group generates most of the purchase orders which Procurement then processes?

Operations

What is traffic management in the context of supply chain management?

Overseeing the shipment of incoming and outgoing goods

What does the acronym RFID stand for?

Radio Frequency Identification

What are the main factors involved in choosing a supplier?

Reputation and financial stability Quality and quality assurance Flexibility and lead times Price

Choose the correct example of tactical versus operational inventory management- one of the responsibilities of supply chain managers.

Tactical: deciding where in the supply chain to hold inventory; Operational: replenishing inventory when depleted

What does it mean when a buyer certifies a supplier?

The buyer has certified the supplier has met or exceeded its requirements and can forgo inspecting their incoming goods.

Which of the following best describes the two parts of the value chain- the supply and demand components?

The supply component starts at raw material and ends in the organization. The demand component is from delivery of output to the final customer.

Which of the below is the goal of supply chain management?

To match supply and demand as efficiently as possible.

A supply chain is alternatively referred to by what name?

Value Chain

The ______ the inventory velocity, the ______ the holding costs.

greater/lower

An alternative to extra _______ is to have backup suppliers for critical items.

inventory

Products are sometimes returned to companies or to third party handlers for which reasons?

obsolete or recalled items unsold or obsolete products defective items or parts replaced in the field

Which of the following activities in the supply chain is an operational responsibility?

order fulfillment

Which of the following is not a benefit from using RFID?

reduced supplier lead times

______ is the ability of a firm to recover quickly from a supply chain disruption

resiliency

What is meant by the term "reverse logistics"

the return of goods from customers.

What are some of the many ways that global supply chains are more complex than purely domestic supply chains?

-increased transportation costs and lead times -cultural and language differences -currency fluctuations

What are the main factors contributing to supply chain success?

-integration of all aspects of the supply chain viewing it as a system -collaboration and joint planning across the supply chain members -development and maintenance of effective supplier relationships

What are the various functions of traffic management?

-monitor external factors which might cause potential delays -ensure compliance with government regulations -make decisions on shipping methods and times

The back end of e-Commerce, order fulfillment, involves what activities?

-order processing & billing -warehousing & inventory management -packing, shipping, & delivering

What are the advantages of centralized purchasing?

-specialized agents -lower prices -better service

Put the main steps of the purchasing cycle in order from 1 to 5?

1. receive the requisition 2. select a supplier 3. place an order 4. monitor the order 5. receive the order

For wholesalers and retailers what approximate percentage of finished goods is procured in the form of purchased inventories?

90%

Which functional group is responsible for handling payments to suppliers and must be notified promptly when goods are received.

Accounting

What is the difference between Engineer to Order and Make to Order?

Engineer to Order requires more customization and Make to Order is based upon a standard design with some changes.

Flow of management: Financial flow

Involves credit terms, payments, and consignment and title ownership arrangements.

Flow of management: Information flow

Involves sharing forecast and sales data, transmitting orders, tracking shipments, and updating order status.

Flow of management: Product and service flow

Involves the movement of goods or services from suppliers to customers as well as handling customer service needs and product returns.

What is the best definition of supply chain management?

Is the strategic coordination of business functions within a business organization and throughout its supply chain for the purpose of integrating supply and demand management

The five components of supply chain management are what?

Logistics Demand management Supply management Strategy Procurement

All of the following are support items usually required to preform logistics operations except which?

Marketing brochures

Which step of the SCOR model involves the design of the network used to receive defective and end of life product from customers

Return

Which of the following activities in the supply chain is a tactical responsibility?

Sourcing

What is the supplier relationship like when the vendor is viewed as an adversary?

There are many suppliers who are pitted against one another Cost is the primary driver and quality inspection is performed by buyer.

Select the best definition of strategic partnering?

Two or more business organizations with complementary products or service join so that each may realize a strategic benefit.

A/An ______ supply chain has flexibility to respond to unpredictable changes or circumstances.

agile

What does supply chain visibility require?

data sharing

What are the advantages of supplier partnerships?

-fewer suppliers -longer term relationship -cooperation in planning

What are the two essential features of e-Commerce?

"Front end" web-site and "back end" order fulfillment

What elements should a company consider when developing a supply chain code of ethics?

-Customer, supplier, and company behaviors -Human relations and recruitment policies -Environmental issues

What are some ways that companies can avoid product returns?

-Improved product design for customer satisfaction purposes -Quality assurance to minimize defective products

In what ways can ERP (Enterprise Resource Planning) software effectively assist supply chain managers?

-Inventory Replenishing -Demand planning -Transportation managing -Production tracking

To make a determination as to the appropriate disposition of returned items, what must be done?

-Items inspected -Directed to the appropriate destination -Items sorted

Which of the following are duties associated with Procurement

-Managing vendors quality and timeliness of delivery -Negotiating contracts with suppliers -Sourcing materials, parts or finished goods

What is the supplier relationship like when the vendor is viewed as an partner?

-One or few number of suppliers -Price is moderately important but flexibility is very important -Openness and sharing of strategic and tactical information readily occurs.

Which of the following characteristics are advantages that RFID tags have over bar codes?

-RFID tags contain more detailed information than bar codes do -Multiple RFID tags can be read simultaneously, whereas bar codes must be scanned individually -RFID tags do not require a line of sight to scan like bar codes do.

What are some of the potential downsides of outsourcing?

-increased transportation costs -language and cultural differences -loss of jobs

One approach to reducing lead times for customers is to ship direct from the factory to the end user. Reducing one or more steps in the supply chain is known as what?

Disintermediation

Select the best definition of Vendor Analysis?

Evaluating the sources of supply in terms of price, quality, reputation and service giving a weighting factor for each criterion.

Which of the following factors contribute to the inventory bullwhip effect?

Forecast inaccuracies order batching to save on costs overreaction to stock outs

What are the different ways that companies use electronic technology in their commercial transactions for e-Business?

Internet buying and selling Electronic tracking of shipments Email communication internal and external

Select the best definition of supply chain?

Is the sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service

Which function of ERP software coordinates purchasing information, receiving information, and information about vendor ratings and performance?

Supplier Relationship Management

Firms are encouraged to adopt a ________ ________ to their supply chains where they make decisions that are optimal for the supply chain as a whole.

System approach

Firms are encouraged to adopt a ________ ___________ to their supply chains where they make decisions that are optimal for the supply chain as a whole.

Systems approach

True or False: Purchasing agents should be concerned about the perception of wrongdoing when conducting business on behalf of their employer even when they have done nothing unethical.

True.