Exam 1
SRM software should be capable of: Automating transactional processes Making information flow between partners more visible Integration of the supply chain making it possible to monitor multiple departments and processes both internally and externally
All of these
Which of the following can be classified as a 3PL? A company that offers warehousing services A company that offers transportation services A company that offers customs clearing services
All of these
The following supply chain concept was introduced in the 1990's in an attempt to reduce waste and increase performance:
Business Process Reengineering
The Total Cost of Ownership Concept does NOT include quantitative factors.
False
The possibility of events like strikes, assembly line breakdowns, and natural disasters are all reasons a company should favor using a single supplier.
False
Trends in supply chain management include expansion of the supply chain and decreasing supply chain visibility.
False
The bullwhip effect is the result of companies producing excessive defective products; defective items are whipped back from the end customer toward the manufacturer of the defect.
False
Which of the following is a current trend in supply chain management?
Greening of Supply Chains
According to the text, key ingredients for developing successful supply partnerships include all of the following EXCEPT: Personal relationships Individualized objectives Mutual benefits and needs Performance metrics
Individualized Objectives
A _____ is a set of three or more organizations linked directly by one or more of the upstream or downstream flows of products, services, finances, and information from a source to a customer.
Supply Chain
Which of the following is a reason to make a product within a firm? A firm has insufficient capacity There are a number of competent suppliers available to produce the desired product To protect proprietary property or technology A supplier can produce the good less expensively than the buying firm
To protect proprietary property or technology
Distribution is one of the foundations of supply chain management. Which of the following belongs to Distribution?
Transportation Management
Decentralized purchasing is the practice where individual, local purchasing departments throughout a single corporation make their own, individual purchasing decisions to fulfill their individual local needs.
True
Key activities of supply management include negotiations, logistics, contract development and administration, inventory control and management, and supplier management.
True
Generally, firms outsource noncore activities while focusing on core competencies.
True
One definition of supply chain management is "The planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activity."
True
Reasons for buying items instead of making them can include cost advantage, insufficient capacity, lack of expertise, and quality.
True
Reverse logistics activities include the return of defective and damaged items to the manufacturer, and the recycling of used packaging.
True
The assembly or production of finished products, producing the right amount of product, and ensuring that finished products meet specific quality, cost, and customer service requirements can all be considered elements of operations.
True
The purchase order is NOT a legally binding contract until it is accepted by the supplier.
True
