Chapter 10 Extension- ISBC

The ________ is a factor of information that can be transactional, such as orders and order returns, or it can be informational, such as the sharing of inventory and customer order data.

purpose

Which of the following is an example of inventory?

raw materials

Which of the following is an effect of information systems on supply chain performance

reduced costs of buying and selling

The ________ is used as the measure of supply chain speed

dollar value of goods exchanged in a given period of time

The bullwhip effect can be eliminated by planning inventory based on each organization up the supply chain.

FALSE

Which of the following refers to the way organizations share their information?

availability

The phenomenon in which the variability in the size and timing of orders increases at each stage up the supply chain is referred to as the ________.

bullwhip effect

The major factors that affect supply chain performance are the ________.

facilities

) Information systems have enabled suppliers to increase the size of their inventories

false

Decreasing the size of an inventory decreases the odds that an item will be unavailable for purchase

false

Each level of a supply chain has a distinct source of revenue.

false

Every supply chain has four basic components: suppliers, manufacturers, distributors, and retailers.

false

Increasing the size of an inventory reduces the cost of the inventory.

false

Profitability of a supply chain increases if all the organizations in the supply chain operate at their maximum profitability.

false

The cloud has increased the costs of integrating an organization's information systems.

false

The large fluctuations of bullwhip effect force organizations to stock fewer inventories than needed.

false

Which of the following factors influences supply chain performance by affecting the ways that organizations in the supply chain request, respond, and update one another?

information

Which of the following statements is true about the bullwhip effect?

it is a natural dynamic that occurs because of the multistage nature of the supply chain

Which of the following statements is true about an inter-enterprise system?

it is shared by two or more independent organizations

Which of the following statements about inventory is true?

managing an inventory requires balancing between availability and cost

In a supply chain, distributors order products from ________.

manufacturers

________ refers to the methods by which information is transmitted.

means

Which of the following statements about supply chains is true?

not every supply chain has distributors and retailers

Because of the nature of the bullwhip effect, ________ face maximum variation in demand.

suppliers

Which of the following refers to a network of organizations and facilities that transforms raw materials into products delivered to customers?

supply chain

________ is the difference between the sum of the revenue generated by the supply chain and the sum of the costs that all organizations in the supply chain incur to obtain that revenue.

supply chain profitability

) The bullwhip effect explains the amplification of demand at various stages of a supply chain

true

As a factor affecting supply chain performance, facilities concern the location and operations methodology of the places where products are fabricated or stored.

true

At each level of a supply chain, an organization can work with many organizations both up and down the supply chain

true

Each organization in a supply chain is an independent company, with its own objectives

true

Inter-enterprise information systems are necessary to share consumer-demand information.

true

Inter-enterprise information systems vary in scope and complexity.

true

The Automated Clearing House system among banks is an example of an inter-enterprise system

true

The presence of information systems has expanded supply chain speed.

true

True demand is the demand from the only party that introduces money into the system

true