Management Operations Ch.15 Supply CHain

What does supply chain visibility require? A) Data sharing B) Shorter supply chains C) Faster shipping methods D) Using the same ERP systems

A

What is an example of Make-to-Stock in terms of order fulfillment? A) Items are purchased off the shelf as in a department or grocery store B) Customer orders a complete customized product such as a city building new stadium C) A customer orders a computer on-line with the components and features he or she desires D) An airline orders a basic model aircraft with some modifications based on their specific needs

A

What is meant by the supply chain management practice of measuring ROI along the supply chain? A) ROI stands for Return on Investment and is a financial basis for decision making, B) The organization must perform a Return on Investment test on whether or not to upgrade assembly line technology. C) Each organization in the supply chain must report their ROI (Return on Investment) to the final customer

A

What is meant by the term "reverse logistics?" A) The return of goods from customers B) Use of third-party logistics suppliers C) Sending empty containers back with the supply trucks for reuse D) When a producer has to cancel an order made to a supplier

A

What is the best definition of supply chain management? A) The strategic coordination of business functions within and throughout an organization's supply chain to integrate supply and demand. B) An organization's activity to manage all aspects of the vendor relationship including price, quality, and timeliness of deliveries. C) The activities within an organization to receive, store, and distribute incoming goods for the purposes of production.

A

Which functional groups will often assist Procurement in negotiating with suppliers when a supplier bid is received for a large order. A) Operations B) Accounting C) Human resources D) Marketing

A

Which of the below is the goal of supply chain management? A) To match supply and demand as efficiently as possible. B) To add value in the organization's transformation of the product. C) To return profit to the shareholders of the organization. D) To ensure the highest quality product for the consumer.

A

Which of the following activities in the supply chain is an operational responsibility? A) Order fulfillment B) Collaborating with partners C) Transportation planning D) Sourcing

A

Which of the following best describes the two parts of the value chain--the supply and demand components? A) The supply component starts at raw material and ends in the organization. The demand component is from delivery of output to the final customer. B) The supply component refers to the accumulated orders from multi-tiered vendors. The demand component are the accumulated customer orders. C) The supply components are the inputs to production and the demand components are the outputs send to the next link in the chain.

A

To make a determination as to the appropriate disposition of returned items, what must be done? A) Directed to the appropriate destination B) Items sorted C) Items inspected D) Customer must be billed

A, B, C

What are the five basic components of supply chain management? A) Supply management B) Demand management C) Procurement D) Finance & Accounting E) Strategy F) Logistics

A, B, C, E, F

Being agile means that a supply chain is flexible enough to be able to respond fairly quickly to what? Check all that apply. A) Unpredictable changes B) Quality issues C) Excess waste generated E) Weather disruptions

A, B, D

What elements should a company consider when developing a supply chain code of ethics? (Select all that apply.) A) Environmental issues B) Human relations and recruitment policies C) Sales and Marketing planning D) Customer, supplier, and company behaviors

A, B, D

What are the main factors involved in choosing a supplier? (Select all that apply.) A) Price B) Reputation and financial stability C) User friendliness of website D) Quality and quality assurance E) Flexibility and lead times F) ROI percentage

A, B, D, E

What are some of the potential downsides of outsourcing? (Select all that apply.) A) Language and cultural differences B) Increased transportation costs C) Increased control D) Less effort to manage the supply chain E) Loss of jobs

A, B, E

What is the supplier relationship like when the vendor is viewed as an adversary? (Select all the items that apply.) A) There are many suppliers who are pitted against one another B) Relationship is usually long lasting C) Cost is the primary driver and quality inspection is performed by buyer D) Flexibility is high and vendor sets up location near buyer

A, C

What are the advantages of supplier partnerships? A) Longer-term relationships B) Improved supplier cash flows C) Fewer suppliers D) Cooperation in planning

A, C, D

Which of the following challenges are obstacles to establishing partnerships with suppliers? (Select all that apply.) A) The cultures of the buyer and supplier might conflict. B) The buyer and supplier are in different time zones. C) Many benefits from the partnership accrue to the buyer. D) Suppliers may need to increase their investment in equipment.

A, C, D

In what ways can ERP (Enterprise Resource Planning) software effectively assist supply chain managers? (Select all that apply.) A) Demand planning B) Ensuring product quality C) Inventory Replenishing D) Production tracking E) Transportation managing

A, C, D, E

What are the advantages of decentralized purchasing? A) Goodwill in community B) Better service C) Lower prices D) Lower transportation costs E) Quicker responses F) Specialized agents

A, D, E

Which of the following are duties associated with Procurement? (Select all that apply.) A) Managing vendors' quality and timeliness of delivery B) Re-engineering products or services C) Marketing new product offerings D) Sourcing materials, parts or finished goods E) Negotiating contracts with suppliers

A, D, E

Supply chains make use of various forms of facilities. Select all the examples of facilities from the list below. A) Warehouses B) Cargo containers C) Conveyor belts D) Distribution centers E) Retail outlets F) Factories

A, D, E, F

A supply chain is alternatively referred to by what name? A) Customer chain B) Value chain C) Production chain D) Logistics chain F) Demand chain

B

A top management responsibility with respect to supply chains is the distribution strategy. What does this area of responsibility entail? A) Using nearby suppliers, reducing transportation time and cost, reducing inventory and the risk of disruptions, and increasing responsiveness B) Deciding whether or not to centralize or decentralize distribution and if a third party logistics company should be hired C) Assessing long-term capacity needs, including when and how much will be needed and the degree of flexibility to incorporate.

B

A top management strategic responsibility with respect to supply chains is network configuration. What does this area of responsibility entail? A) Making decisions on new product and services selection and design B) Determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers C) Aligning supply and distribution strategies with organizational strategy and deciding on the degree to which outsourcing will be employed

B

All of the following aspects of the business are typically covered in a supplier audit except which? A) Quality assurance and process improvement policies B) Cleanliness of site cafeteria, break rooms C) Procedures for corrective action and follow up D) Materials management E) Management style

B

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) The part of a supply chain involved with the forward and reverse flow of goods, services, cash, and information. C) All activities involved in the receipt, storage, inventory and distribution of material & parts used to transform inputs into outputs.

B

Select the best definition of strategic partnering. A) A business organization purchases a supplier company and makes them a subsidiary company under the parent corporation. B) Two or more business organizations with complementary products or services join so that each may realize a strategic benefit. C) Several business organizations sign short term contracts for small volumes of business.

B

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 sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service. C) The raw materials, components or other parts provided by vendors to an organization which are transformed from inputs to outputs.

B

Technological advances in communications linking operations world-wide is a positive factor of ______. A) resiliency B) globalization C) logistics

B

What does it mean when a buyer certifies a supplier? A) Supplier certification means that the supplier can then apply for ISO 9000 certification once it gets several buyer certifications. B) The buyer has certified the supplier has met or exceeded its requirements and can forgo inspecting their incoming goods. C) Certification means the supplier can bid on jobs when the buyer issues a request for proposal. D) Supplier certification means that supplier audits no longer have to be conducted on a periodic basis.

B

What is the difference between centralized and decentralized purchasing? A) Centralized purchasing handles only small orders whereas decentralized purchasing places medium and large orders. B) Centralized purchasing handles all orders from one special department. Decentralized purchasing is done by each individual department separately. C) Centralized purchasing handles unique, one-time purchase orders and decentralized purchasing issues only blanket purchase orders.

B

Which of the following constitutes a conflict of interest in Procurement? A) A supplier and purchasing agent exchange humorous/joke emails. B) One of the suppliers on the bid list is owned by a close relative of the purchasing agent C) A supplier and purchasing agent attend the same religious institution worship services.

B

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) To keep current on vendor capabilities, quality, performance, problems and their resolutions. C) Because government regulations require periodic supplier audits in order to be ISO 9000 certified.

B

Being agile means that a supply chain is flexible enough to be able to respond fairly quickly to what? Check all that apply. A) Excess waste generated B) Unpredictable changes C) Weather disruptions D) Quality issues

B, C, D

What are some of the many ways that global supply chains are more complex than purely domestic supply chains? (Select all that apply.) A) Less need for buffer inventory B) Cultural and language differences C) Currency fluctuations D) Increased transportation costs and lead times

B, C, D

What is the supplier relationship like when the vendor is viewed as an partner? (Select all the items that apply.) A) Quality is usually poor and buyer must always inspect B) Price is moderately important but flexibility is very important C) One or few number of suppliers D) Openness and sharing of strategic and tactical information readily occurs

B, C, D

All of the following are current trends in supply chain management EXCEPT ____. A) evaluating risks B) re-evaluating outsourcing C) adopting automated assembly lines D) integrating information technology E) greening the supply chain

C

All of the following are potential benefits of outsourcing EXCEPT ____. A) focusing on core competencies B) shifting risk to supplier C) converting variable costs to fixed costs D) lowering cost from less expensive labor

C

Choose the correct example of tactical versus operational inventory management--one of the responsibilities of supply chain managers. A) Tactical: Converting inputs into outputs; Operational: Coordinating the external supply chain. B) Tactical: Managing inbound deliveries from suppliers; Operational: Preparing and evaluating forecasts C) Tactical: Deciding where in the supply chain to hold inventory; Operational: replenishing inventory when depleted

C

Development of supply chains should be accorded what level of importance? A) Tactical B) Routine C) Strategic

C

Select the best definition of supply chain visibility. A) Mapping the supply chain to grasp its scope, and seeing if there are any supplier concentrations. B) The ability to detect and respond to unplanned events such as delayed shipment or a warehouse running low on an item. C) When a major trading partner can connect to any part of its supply chain to access data on inventory, shipment status, etc.

C

Select the best definition of vendor analysis. A) Purchasing with input from operations will rank each supplier from best to worst on a periodic basis. B) Requiring each supplier to periodically fill out a survey rating themselves on factors such as quality, flexibility, and financial stability. C) Evaluating the sources of supply in terms of price, quality, reputation and service giving a weighting factor for each criterion.

C

What is the difference between Engineer-to-Order and Make-to-Order? A) Make-to-Order and Engineer-to-Order are similar except Make-to-Order takes longer due to manufacturing of parts. B) Make-to-Order and Engineer-to-Order are basically synonyms and there is no real difference. C) Engineer-to-Order requires more customization and Make-to-Order is based upon a standard design with some changes.

C

Which functional group is responsible for handling payments to suppliers and must be notified promptly when goods are received. A) Design and engineering B) Receiving C) Accounting D) Operations

C

Which functional groups will often assist Procurement in negotiating with suppliers when a supplier bid is received for a large order. A) Accounting B) Marketing C) Operations D) Human resources

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 step of the SCOR® model involves the development of a strategy for managing the resources that are used to meet customer demand? A) Deliver B) Source C) Plan D) Make

C

An important aspect of supply chain management is flow management. What are the three types of flow? A) quality, information, financial B) goods/services, quality, logistics C) production, cycle time, output rate D) goods/services, information, financial

D

For manufacturing companies approximately what percentage of the cost of finished goods comes from purchased parts and materials? A) 50% B) 40% C) 80% D) 60% E) 70%

D

Some of the duties of _____ are obtaining goods and services that meet or exceed operations requirements in a timely and cost-effective manner, and managing suppliers. A) an operations manager B) an inventory manager C) accounting D) purchasing

D

The activities that supply chain managers are involved with planning and coordinating are all of the following except which? A) Logistics B) Transformation activities C) Sourcing & procurement D) Financial accounting

D

Which function of ERP (Enterprise Resource Planning) software coordinates purchasing information, receiving information, and information about vendor ratings and performance? A) Performance Management B) Sales and Order Fulfillment C) Customer Relationship Management D) Supplier Relationship Management

D

Which functional group generates most of the purchase orders which Procurement then processes? A) Design and engineering B) Accounting C) Receiving D) Operations

D

Which step of the SCOR® model involves the design of the network used to receive defective and end-of-life products from customers? A) Source B) Make C) Deliver D) Return

D

All of the following are true about strategic sourcing EXCEPT _____. A) seeks to maximize value-added activities B) focuses on risk reduction C) employs cross-functional teams to reduce process waste D) ties payments to supplier performance E) focuses on purchase price instead of total cost

E

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. True/ False

False

Businesses can eliminate the need for resiliency by managing risk. True/ False

False: they can reduce it, not eliminate it.

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/ False

True

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

agile