Chapter 15 OM
Put the production control logistical steps in sequential order with 1 being the start of the process and 6 being the last. A) From incoming vehicles to receiving/storage B) From storage to point of use C) From shipping to outgoing vehicles D) From storage to packing/shipping E) From the last operation to final storage F) From one work center to the next storage
1 - A 2 - B 3 - F 4 - E 5 - D 6 - C
An important aspect of supply chain management is flow management. Match these flows with their descriptions. 1) Product and service flow 2) Information flow 3) Financial flow A) Involves sharing forecast and sales data, transmitting orders, tracking shipments, and updating order status. B) Involves the movement of goods or services from suppliers to customers as well as handling customer service needs and product returns. C) Involves credit terms, payments, and consignment and title ownership arrangements.
1 - B 2 - A 3 - C
A top management strategic responsibility with respect to supply chains is network configuration. What does this area of responsibility entail? A) Determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers B) Making decisions on new product and services selection and design C) Aligning supply and distribution strategies with organizational strategy and deciding on the degree to which outsourcing will be employed
A
All of the following are potential benefits of outsourcing EXCEPT ____. A) converting variable costs to fixed costs B) lowering cost from less expensive labor C) focusing on core competencies D) shifting risk to supplier
A
All of the following are support items usually required to perform Logistics operations EXCEPT ____. A) marketing brochures B) equipment & parts C) fuel D) tools & lubricants
A
Development of supply chains should be accorded what level of importance? A) Strategic B) Tactical C) Routine
A
One approach to reducing lead times for customer is to ship direct from the factory to the end user. What term refers to reducing one or more steps in the supply chain? A) Disintermediation B) Delayed differentiation C) Cross-docking D) Strategic sourcing
A
Select the best definition of supply chain visibility. A) When a major trading partner can connect to any part of its supply chain to access data on inventory, shipment status, etc. B) The ability to detect and respond to unplanned events such as delayed shipment or a warehouse running low on an item. C) Mapping the supply chain to grasp its scope, and seeing if there are any supplier concentrations.
A
Select the best definition of vendor analysis. A) Evaluating the sources of supply in terms of price, quality, reputation and service giving a weighting factor for each criterion. B) Requiring each supplier to periodically fill out a survey rating themselves on factors such as quality, flexibility, and financial stability. C) Purchasing with input from operations will rank each supplier from best to worst on a periodic basis.
A
Technological advances in communications linking operations world-wide is a positive factor of ______. A) globalization B) logistics C) resiliency
A
What are the two different ways companies manage returns? A) Gatekeeping and avoidance B) Reverse logistics and event management C) Inventory velocity and fill rate
A
What does it mean when a buyer certifies a supplier? A) The buyer has certified the supplier has met or exceeded its requirements and can forgo inspecting their incoming goods. B) Certification means the supplier can bid on jobs when the buyer issues a request for proposal. C) Supplier certification means that the supplier can then apply for ISO 9000 certification once it gets several buyer certifications. D) Supplier certification means that supplier audits no longer have to be conducted on a periodic basis.
A
What is meant by the term "reverse logistics?" A) The return of goods from customers B) Sending empty containers back with the supply trucks for reuse C) When a producer has to cancel an order made to a supplier D) Use of third-party logistics suppliers
A
When a major trading partner can connect to its supply chain to access data in real time, that is ______. A) supply chain visibility B) event-response capability C) resiliency
A
When an organizations wants to increase the customer's perception of variety, what technique is most appropriate? A) Delayed differentiation B) Direct shipping C) Cross-docking D) Disintermediation
A
Which step of the SCOR® model involves the design of the network used to receive defective and end-of-life products from customers? A) Return B) Source C) Deliver D) Make
A
Which step of the SCOR® model involves the development of a strategy for managing the resources that are used to meet customer demand? A) Plan B) Deliver C) Source D) Make
A
Select all that apply What are some ways that companies can avoid product returns? A) Improved product design for customer satisfaction purposes B) Quality assurance to minimize defective products C) Put an "all sales are final" sticker on all product packaging.
A and B
Select all that apply Which of the following challenges are obstacles to establishing partnerships with suppliers? A) The cultures of the buyer and supplier might conflict. B) Suppliers may need to increase their investment in equipment. C) Many benefits from the partnership accrue to the buyer. D) The buyer and supplier are in different time zones.
A, B and C
Select all that apply Which of the following characteristics are advantages that RFID tags have over bar codes? A) Multiple RFID tags can be read simultaneously, whereas bar codes must be scanned individually. B) RFID tags contain more detailed information than bar codes do. C) RFID tags do not require a line of sight to scan like bar codes do. D) RFID tags are cheaper to utilize than bar codes are.
A, B and C
Select all that apply Products are sometimes returned to companies or to third-party handlers for which reasons? A) Defective items or parts replaced in the field B) Obsolete or recalled items. C) Insufficient inventory D) Unsold or obsolete products
A, B and D
Select all that apply What are some of the many ways that global supply chains are more complex than purely domestic supply chains? A) Currency fluctuations B) Increased transportation costs and lead times C) Less need for buffer inventory D) Cultural and language differences
A, B and D
Select all that apply What are some of the potential downsides of outsourcing? A) Increased transportation costs B) Language and cultural differences C) Less effort to manage the supply chain D) Loss of jobs E) Increased control
A, B and D
Select all that apply What are the advantages of supplier partnerships? A) Cooperation in planning B) Fewer suppliers C) Improved supplier cash flows D) Longer-term relationships
A, B and D
Select all that apply What are the various functions of traffic management? A) Monitor external factors which might cause potential delays B) Make decisions on shipping methods and times C) Monitor network speed on business' computing infrastructure D) Ensure compliance with government regulations E) Direct the parking of employee cars
A, B and D
Select all that apply What elements should a company consider when developing a supply chain code of ethics? A) Environmental issues B) Human relations and recruitment policies C) Sales and Marketing planning D) Customer, supplier, and company behaviors
A, B and D
Select all that apply Which aspects of supply chain management are especially important for small businesses? A) International trade B) Inventory management C) Supplier development D) Risk reduction
A, B and D
Select all that apply Which of the following factors contribute to the inventory bullwhip effect? A) Overreaction to stockouts B) Order batching to save on costs C) Price increases in the supply chain D) Forecast inaccuracies
A, B and D
Select all that apply Supply chains make use of various forms of facilities. Select all the examples of facilities from the list below. A) Retail outlets B) Warehouses C) Factories D) Distribution centers E) Cargo containers F) Conveyor belts
A, B, C and D
Select all that apply What are the five basic components of supply chain management? A) Strategy B) Logistics C) Procurement D) Demand management E) Supply management F) Finance & Accounting
A, B, C, D and E
Select all that apply At $100 billion a year in value, US companies want to recover value from returned products instead of discarding them. What are some of the ways this can be accomplished? A) Recycling the materials of returned products B) Reselling field returns as-is since they usually are not defective C) Repairing defective products to resell as reconditioned D) Disassembling obsolete products and harvesting for re-use
A, C and D
Select all that apply Being agile means that a supply chain is flexible enough to be able to respond fairly quickly to what? A) Weather disruptions B) Excess waste generated C) Quality issues D) Unpredictable changes
A, C and D
Select all that apply To make a determination as to the appropriate disposition of returned items, what must be done? A) Directed to the appropriate destination B) Customer must be billed C) Items inspected D) Items sorted
A, C and D
Select all that apply What are the different ways that companies use electronic technology in their commercial transactions for e-Business? A) Electronic tracking of shipments B) Playing video games at work on break C) Email communication internal and external D) Internet buying and selling
A, C and D
Select all that apply What is the supplier relationship like when the vendor is viewed as an partner? A) One or few number of suppliers B) Quality is usually poor and buyer must always inspect C) Price is moderately important but flexibility is very important D) Openness and sharing of strategic and tactical information readily occurs
A, C and D
Select all that apply What are the main factors involved in choosing a supplier? A) Price B) ROI percentage C) Flexibility and lead times D) Quality and quality assurance E) Reputation and financial stability F) User friendliness of website
A, C, D and E
Select all that apply The back end of e-Commerce, order fulfillment, involves what activities? A) warehousing & inventory management B) emailing recent customers about upcoming sales C) designing the website interface D) packing, shipping & delivering E) order processing & billing
A, D and E
A supply chain is alternatively referred to by what name? A) Demand chain B) Value chain C) Logistics chain D) Production chain E) Customer chain
B
A top management responsibility with respect to supply chains is the distribution strategy. What does this area of responsibility entail? A) Assessing long-term capacity needs, including when and how much will be needed and the degree of flexibility to incorporate. B) Deciding whether or not to centralize or decentralize distribution and if a third party logistics company should be hired C) Using nearby suppliers, reducing transportation time and cost, reducing inventory and the risk of disruptions, and increasing responsiveness
B
An important aspect of supply chain management is flow management. What are the three types of flow? A) production, cycle time, output rate B) goods/services, information, financial C) quality, information, financial D) goods/services, quality, logistics
B
Choose the correct example of tactical versus operational inventory management--one of the responsibilities of supply chain managers. A) Tactical: Managing inbound deliveries from suppliers; Operational: Preparing and evaluating forecasts B) Tactical: Deciding where in the supply chain to hold inventory; Operational: replenishing inventory when depleted C) Tactical: Converting inputs into outputs; Operational: Coordinating the external supply chain.
B
In evaluating shipping alternatives, organizations using a low-cost strategy often opt for _____ methods, while organizations using a responsive strategy more often opt for _____, higher-cost carriers. A) variable; guaranteed B) slower; quicker C) tailored; standard
B
Part of logistics is movement of goods within a manufacturing facility, and that movement is part of _______. A) inventory management B) production control C) final shipping D) storage utilization
B
What is a broad definition of e-Business? A) A company that uses computers in their offices B) The use of electronic technology to facilitate business transactions C) Selling goods on e-Bay D) A company that sells electronic goods to consumers
B
What is meant by the term bullwhip effect in inventory management? A) Inventory must be managed aggressively and driven forward, hence the term "bullwhip" effect. B) Inventory oscillations become progressively larger looking backward through the supply chain. C) When the stock market is characterized as a "bull market" inventory managers should order more goods since demand will be higher than forecasts.
B
What is strategic sourcing in supply chain management? A) Two or more business organizations with complementary products or services join so that each may realize a strategic benefit B) Analyzing the procurement process to lower costs by reducing waste, increase profits, reduce risks & improve performance C) Aligning the procurement process to focus on purchase price as the primary supplier selection criterion to maximize profits
B
What is the purpose of an RFID tag? A) Documents the date and time an item was received into inventory B) Enables identification of goods in a supply chain using radio waves C) Indicates which outgoing items should be returned to shipping
B
What is traffic management in the context of supply chain management? A) Directing cars at shift change times as employees enter/exit the plant B) Overseeing the shipment of incoming and outgoing goods C) A function of municipal operations which controls the timing of intersection signal lights
B
Which of the below is an example of strategic partnering? A) When a supplier agrees to implement Lean improvement policies to get a supplier certification from the buyer B) When a supplier agrees to hold inventory for the buyer in exchange for a long-term contract C) When a buyer has a large contract and issues a competitive bid for it and selects the lowest price
B
Which of the following activities in the supply chain is a tactical responsibility? A) Scheduling B) Sourcing C) Shipping D) Receiving
B
Which statement is correct about the type of goods that are moved within a facility as part of production control? A) "Goods" refers only to finished products. B) "Goods" includes supplies, raw materials, work-in-process and finished products. C) "Goods" refers only to raw materials and purchased parts.
B
Select all that apply Why must movement of materials be coordinated? . A) In order for materials to be shipped using the appropriate method B) In order for materials to arrive at appropriate times C) In order for materials to arrive at the appropriate destinations
B and C
Select all that apply What is the supplier relationship like when the vendor is viewed as an adversary? A) Flexibility is high and vendor sets up location near buyer B) There are many suppliers who are pitted against one another C) Relationship is usually long lasting D) Cost is the primary driver and quality inspection is performed by buyer
B and D
Select all that apply What are the main factors contributing to supply chain success? A) Adopt Just-in-time manufacturing and make each member as lean as possible B) Development and maintenance of effective supplier relationships C) Integration of all aspects of the supply chain viewing it as a system D) Collaboration and joint planning across the supply chain members
B, C and D
In order to minimize warehousing costs, some companies such as Walmart unload goods from a supplier and immediately load the items onto a truck headed to a retail outlet. What is this technique? A) Disintermediation B) Delayed differentiation C) Cross-docking D) Warehouse avoidance
C
Often members of a supply chain have conflicting objectives which can be a barrier to effective supply chain integration. Which of the following is an example of this? A) A company makes decisions consistent with optimizing the supply chain. B) A company asks prospective vendors to compete for a supply contract. C) A company asks for frequent low volume deliveries, and transfers inventory holding costs to suppliers.
C
Select the best definition of Logistics. A) Transportation of material to the factory and finished goods from the factory to distributor, retailer or customer directly. B) All activities involved in the receipt, storage, inventory and distribution of material & parts used to transform inputs into outputs. C) The part of a supply chain involved with the forward and reverse flow of goods, services, cash, and information.
C
Select the best definition of inventory velocity. A) The rate at which inventory accumulates in the stock room. B) The speed at which an operations analyst places an order for inventory replenishment. C) The rate at which goods move through a supply chain.
C
Select the best definition of strategic partnering. A) Several business organizations sign short term contracts for small volumes of business. B) A business organization purchases a supplier company and makes them a subsidiary company under the parent corporation. C) Two or more business organizations with complementary products or services join so that each may realize a strategic benefit.
C
Select the best definition of supply chain. A) The chain of suppliers contracted by an organization, including first, second and third tier suppliers, to provide inputs for production. B) The raw materials, components or other parts provided by vendors to an organization which are transformed from inputs to outputs. C) The sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service.
C
The _____________ the inventory velocity, the ____________ the holding costs. A) slower/faster B) lower/lower C) greater/lower D) faster/greater
C
What does supply chain visibility require? A) Shorter supply chains B) Faster shipping methods C) Data sharing D) Using the same ERP systems
C
What does the acronym RFID stand for? A) Redistribute Forecasted Inventory or Discount B) Receiving From Incoming Distributor C) Radio Frequency Identification
C
What is meant by the supply chain management practice of measuring ROI along the supply chain? A) The organization must perform a Return on Investment test on whether or not to upgrade assembly line technology. B) Each organization in the supply chain must report their ROI (Return on Investment) to the final customer C) ROI stands for Return on Investment and is a financial basis for decision making,
C
What is meant by the term reverse logistics? A) Accepting incoming material or parts from suppliers sending them through the manufacturing plant. B) Analyzing the supply chain backwards to seek out waste in the process that can be eliminated C) Physically retrieving and transporting returned items back to the company or a third-party handler
C
What is the best definition of supply chain management? A) The activities within an organization to receive, store, and distribute incoming goods for the purposes of production. B) An organization's activity to manage all aspects of the vendor relationship including price, quality, and timeliness of deliveries. C) The strategic coordination of business functions within and throughout an organization's supply chain to integrate supply and demand.
C
What is the definition of a closed-loop supply chain? A) When a manufacturer does not outsource any part of its operation B) When a manufacturer makes its own parts and controls the distribution of finished goods to the retailer C) When a manufacturer controls both the forward and reverse logistics
C
Which of the below is the goal of supply chain management? A) To add value in the organization's transformation of the product. B) To ensure the highest quality product for the consumer. C) To match supply and demand as efficiently as possible. D) To return profit to the shareholders of the organization.
C
Which of the following actions is an example of a risk reduction strategy? A) Contracting with partners to spread risk. B) Refusing to deal with suppliers in certain areas C) Replacing unreliable suppliers
C
Which of the following best defines the term Logistics? A) Transporting goods from one link in the supply chain to another in an efficient manner B) A Business-to-Business (B2B) service provided by a third party company to transport outputs throughout the supply chain from source to customer C) Managing and coordinating the movement of materials, services, cash and information in a supply chain
C
Which of the following best describes the two parts of the value chain--the supply and demand components? A) The supply components are the inputs to production and the demand components are the outputs send to the next link in the chain. B) The supply component refers to the accumulated orders from multi-tiered vendors. The demand component are the accumulated customer orders. C) The supply component starts at raw material and ends in the organization. The demand component is from delivery of output to the final customer.
C
Which of the following is not a benefit from using RFID? A) Improved quality control B) Improved supply chain visibility C) Reduced supplier lead times D) Enhanced relationships with partners
C
Which of the following is the correct formula for calculating incremental holding costs? A) H(Q)/365 B) H(d)/12 C) H(d)/365
C
Which statement is true about large vs . small lot sizes? A) Small lot sizes can increase lead times. B) Large lot sizes can reduce carrying costs. C) Large lot sizes can contribute to the bullwhip effect. D) Small lot sizes can reduce setup costs.
C
Who controls logistics in a closed-loop supply chain? A) Customer B) Vendor C) Manufacturer
C
Why are supplier audits conducted periodically by the buyer? A) Because buyers do not trust suppliers to do a good job and surprise audits result in higher quality goods. B) Because government regulations require periodic supplier audits in order to be ISO 9000 certified. C) To keep current on vendor capabilities, quality, performance, problems and their resolutions.
C
All of the following aspects of the business are typically covered in a supplier audit except which? A) Procedures for corrective action and follow up B) Management style C) Quality assurance and process improvement policies D) Cleanliness of site cafeteria, break rooms E) Materials management
D
The activities that supply chain managers are involved with planning and coordinating are all of the following except which? A) Logistics B) Sourcing & procurement C) Transformation activities D) Financial accounting
D
What are the two essential features of e-Commerce? A) Electricity and commerce B) Products and email list building C) Javascript and direct shipping to customers D) Web-site and order fulfillment
D
Which of the following activities in the supply chain is an operational responsibility? A) Sourcing B) Collaborating with partners C) Transportation planning D) Order fulfillment
D
All of the following are current trends in supply chain management EXCEPT ____. A) evaluating risks B) re-evaluating outsourcing C) integrating information technology D) greening the supply chain E) adopting automated assembly lines
E
All of the following are true about strategic sourcing EXCEPT _____. A) seeks to maximize value-added activities B) ties payments to supplier performance C) focuses on risk reduction D) employs cross-functional teams to reduce process waste E) focuses on purchase price instead of total cost
E
True or false: A company holding the major brand in the supply chain does not have to be concerned about negative media perceptions of unethical supplier practices because these suppliers are independently-owned businesses.
False
True or false: Businesses can eliminate the need for resiliency by managing risk.
False
An alternative to extra _________ is to have backup suppliers for critical items.
Inventory
_____________ is the ability of a firm to recover quickly from a supply chain disruption.
Resiliency
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
True or false: Sometimes if a buyer does not want to develop its own supplier certification program, it will accept standard industry certifications such as ISO 9000.
True
A/An _________ supply chain has flexibility to respond to unpredictable changes or circumstances.
responsive
