SCMN 2150 FINAL

How does globalization impact day-to-day operations?

- Inventory is higher - Facilities Network are more difficult to control - Transportation is more difficult and costly - Service is slower and more costly

What are key information requirements that underpin supply chain technology/data?

-useable, accurate, timely, reliable, relevant, accessible, transferable

What type of facility is used to delay payment of duties and store goods for up to five years under the joint custody of the importer or his agent, and Customs? A.) Bonded Warehouse B.) Customs Quarantine C.) Free Trade Zone D.) Port Authority

A.) Bonded Warehouse

What type of software tools help SC managers understand why events occurred, their likelihood of re-occurrence, and the impact of supply chain changes through advanced quantitative analysis, data mining, and predictive modeling? A.) Business analytics tools B.) Business intelligence tools C.) Supply chain planning tools D.) Supply chain event management tools

A.) Business analytics tools

Which global channel focuses on the documentation needed for government compliance, visibility, and control of goods moving globally. A.) Communication channel B.) Transaction channel C.) Distribution channel D.) Omni-channel

A.) Communication channel

What is the key to success for global manufacturers when competing with domestic companies? A.) Competitive landed costs B.) Low labor costs C.) Superior technology D.) Cheap logistics services

A.) Competitive landed costs

Match the international shipping document with the most appropriate description: Letter of Credit A.) Escrow- like agreement between buyer's and seller's banks which guarantees payment if seller meets specified terms of the sale. B.) Assures the coverage of freight loss or damage during transit. C.) A bill for the goods from the seller to the buyer that describes the transaction from start to finish. D.) Issued by the transportation carrier to the exporter acknowledging that shipment has been received and placed on board.

A.) Escrow- like agreement between buyer's and seller's banks which guarantees payment if seller meets specified terms of the sale.

_______ focuses on planning, implementing, and controlling the cross-border flows of materials, money and information between companies in different countries. A.) Global SCM B.) Global sourcing C.) Global production D.) Global marketing

A.) Global SCM

According to this weeks's reading, how can organizations ensure that global customers will pay for their goods and services? A.) Letter of credit B.) Export license C.) Customs duties D.) Paypal

A.) Letter of credit

The ability to ask "what if?" questions and accurately forecast future supply chain activities depends on the ability to use _____________. A.) Predictive analytics B.) Descriptive statistics C.) Business intelligence D.) Diagnostic analytics

A.) Predictive analytics

When a retailer sources goods to sell under its own name, what type of goods are they offering? A.) Private label goods B.) Generic goods C.) Branded goods D.) Outsourced goods

A.) Private label goods

According to the Episode 9 article, what type of disruptive technology will provide the greatest source of competitive advantage in 2017? A.) Robotics and autmation B.) Blockchain C.) 3D printing D.) Predictive analytics

A.) Robotics and autmation

How is Amazon using Kiva technology to improve warehouse performance? A.) Robots manage product storage and flows B.) Order fulfillment activities are fully automated C.) Labor is eliminated in a Kiva based warehouse D.) RFID tags help order pickers find product in the warehouse

A.) Robots manage product storage and flows

What is the most complex and riskiest - but highest potential reward - method for becoming a global manufacturer? A.) Joint Venture B.) Direct investment C.) Contract manufacting D.) Exporting

B.) Direct investment

What type of international freight service is most appropriate for goods moving relatively short distances between directly accessible A.) origin and destination points? B.) Direct service C.) Indirect service D.) Intermodal service

B.) Direct service

Which global supply chain channel focuses on the selection of modes, carriers, and routes? A.) Communication channel B.) Distribution channel C.) Visibility channel D.) Transaction Channel

B.) Distribution channel

What is the advantage of truck over rail for the final port-to-customer segment of the international delivery? A.) Greater service quality variance. B.) Greater destination accessibility C.) Lower delivery cost per shipment D.) Greater carrying capacity

B.) Greater destination accessibility

According to this week's article, which ocean carrier went bankrupt? A.) Hyundai B.) Hanjin C.) Maersk D.) Matson

B.) Hanjin

When choosing a mode of transportation for international freight, you should consider all of the following factors EXCEPT: A.) Product density B.) Import duties C.) Transit time D.) Freight rates

B.) Import duties

What type of trade typically moves through large international airports and seaports. A.) All global trade B.) Inter-continental trade C.) Intra-continental trade D.) Domestic trade

B.) Inter-continental trade

What is the biggest risk in global contract manufacturing? A.) Increased investment in facilities B.) Loss of supply chain control C.) Reduction of financial risks D.) Reduction of quality problems

B.) Loss of supply chain control

A ____________ is a public or private facility for receiving ships and quickly transferring cargo between international carries to domestics carriers . A.) Bonded warehouse B.) Port C.) Terminal D.) Free trade zone

B.) Port

According to the Gartner article, what type of software purchasing method will grow over the next 4 to 5 years? A.) Software licensing B.) Software as a service C.) Software ownership

B.) Software as a service

Execution

Carry out the key tasks from the time the order is placed until it is fulfilled. -day-to-day

How far in advance does an organization need to provide documentation for freight entering the US via ocean carrier? A.) 24 hours prior to arrival at a US port B.) 2 hours prior to arriving at US border C.) 1 week prior to loading D.) 24 hours prior to loading

D.) 24 hours prior to loading

Decision support tools provide the ability to model volatile scenarios, giving the organization the ____________ to sense and respond to changing market conditions. A.) Collaboration B.) Adaptability C.) Speed to market D.) Agility

D.) Agility

INCOTERMS can be applied to which mode of transportation ? A.) Ocean transport B.) Rail transport C.) Air transport D.) All modes of transportation

D.) All modes of transportation

Carriers participating in the ________ can receive conditional release authorizations after leaving the foreign country and up to five days before U.S. arrival. Their goods are released quickly from the port of arrival. A.) Customs Partners Network B.) Harmonized Tariff System C.) Free Trade Zone Network D.) Automated Manifest System

D.) Automated Manifest System

Which transportation decision focuses on issues like geographic coverage, on-time history, technical capabilities, and relationship development? A.) Mode selection B.) Type of service selection C.) Route selection D.) Carrier selection

D.) Carrier selection

Which group is ultimately responsible for establishing smart borders that increase security while facilitating the movement of legitimate trade? A.) Immigration and Naturalization Service B.) FBI C.) CIA D.) Customs and Border Patrol E.) Internal Revenue Service

D.) Customs and Border Patrol

What is the first step in effective global sourcing? A.) develop an understanding of the supply base and investigate the capabilities of individual suppliers B.) Negotiate pricing, volume, and delivery schedules C.) Articulate your needs and maintain open lines of communication D.) Evaluate your spend category and user requirements.

D.) Evaluate your spend category and user requirements.

According to the Seven Secrets article, producers of high-tech and defense industry products may need this to sell their goods internationally. A.) Trademark protection B.) Deep pockets C.) Export credit insurance D.) Export license

D.) Export license

When negotiating with potential global suppliers, a company must consider each of the following issues EXCEPT: A.) Product quality B.) Business culture C.) Schedules and capacity D.) Financial bribes

D.) Financial bribes

Which of the following is expected to be a growing global manufacturing trend in the near future? A.) Decreased use of automation B.) Avoidance of business-to-business exchanges C.) Increased reliance on internal resources D.) Increased focus on green manufacturing

D.) Increased focus on green manufacturing

Which international transportation service option requires interim stops and transfers between modes? A.) Truck service B.) Private service C.) Direct service D.) Indirect service

D.) Indirect service

Planning

helps organizations evaluate demand for materials, capacity, and services so that effective fulfillment plans and schedules can be developed.

According to this week's article, time spent in the careful preparation of trade documentation is time well spent because it minimizes the risk of disputes and non-payment. True False

True

Carriers don't actually take title to the goods in their temporary possession. They become the bailee who is only responsible for loss or damage to the freight as results of their negligence. True False

True

Customers pay duties on the products and the products go through the Customs clearance process when products are released from a free trade zone . True False

True

What benefits and capabilities are created by supply chain information technology?

Information technology has a direct positive impact on organizational performance, internal and external collaboration. -(optimization, cross-chain visibility, speed to market, agility, etc.)

From a differentiation standpoint, technology can help an organization define supplier and customer segments, understand the cost to serve them, and prioritize service execution so that critical groups receive appropriate attention. True False

True

If you focus only on labor costs when sourcing goods globally, then the total cost of ownership may not be significantly different than supplier options that are closer to home. True False

True

In a sense, a global supply chain is like a rubber band. The farther you stretch it between distant countries, the more inflexible it becomes. True False

True

Incoterms determine the seller's and buyer's respective obligations concerning responsibilities and charges for the transportation of goods from the seller's premises to the buyer's place. True False

True

Poor planning and management of the final leg of an international transaction can result in delays and higher costs due to port congestion, carrier capacity shortages, and facility inefficiencies. True False

True

The resources required for a business to succeed in a competitive industry are leading some employers to form alliances with other businesses in the same industry. True False

True

To create a clear view of the flow of products, information, and services across the supply chain., companies should develop a supply chain wide technology strategy that supports multiple levels of decision making. True False

True

When comparing domestic to global sourcing, the steps really don't change much. However, the time and expertise requirements, the available options, and the potential headaches are greatly expanded in global sourcing. True False

True

This INCOTERM maximizes the effort, risk, and costs for the seller (i.e., the exporter)? A.) "D" terms - delivered B.) "F" terms - ready for delivery C.) "C" terms - transport cost D.) "E" terms - ex works

A.) "D" terms - delivered

What type of tariff system is used when U.S. Customs bases the import duties on the value of the goods? A.) Ad valorum tariffs B.) Entry tariffs C.) Quantity based tariffs D.) Seasonal tariffs

A.) Ad valorum tariffs

Production of goods by one firm, under the label or brand of another firm is called: A.) Global sourcing B.) Contract manufacturing C.) Exporting D.) Domestic production

B.) Contract manufacturing

What are the major categories of supply chain software? What is the purpose of each category?

1.) Planning 2.) Execution 3.) Event Management 4.) Business Intelligence

According to the Episode 9 reading, ___________ are web-based applications that disseminate, acquire, transmit, and monitor key planning and execution information across a global supply chain network. A.) SCM collaboration software B.) Transportation management system C.) Order management software D.) Warehouse management system

A.) SCM collaboration software

When a supply chain disruption occurs, this software triggers corrective actions based on predefined work flow rules. A.) Supply chain event management software B.) Supply chain planning sotware C.) Business intellgence software D.) Supply chain execution software

A.) Supply chain event management software

In the FedEx healthcare shared network video, what it the most important issue to track while the goods are in transit? A.) Temperature of the goods B.) Vibration of the trailer C.) Estimated arrival time D.) Location of the goods

A.) Temperature of the goods

Under the reasonable care provision, which organization is responsible for accurate paperwork, what is being transacted, and the terms of the transaction? A.) The importer B.) The exporter C.) The transportation company

A.) The importer

Which of the following is NOT a characteristic of high quality data? A.) Variability B.) Relevancy C.) Accuracy D.) Accessibility

A.) Variability

What type of risk is created by the inability to maintain real-time control over a complex network of suppliers and carriers? A.) Visibility risks B.) Inventory carrying cost risks C.) In-transit damage risks D.) Intellectual property protection risks

A.) Visibility risks

In which situation would it be most appropriate to transfer risk by purchasing freight insurance? A.) When the shipment is high value and you're moving it internationally B.) When the shipment value is low and you're moving it internationally C.) When the product is high value and you're moving it domestically D.) When the freight is low value and it is moving within North America

A.) When the shipment is high value and you're moving it internationally

In which situation would it be most appropriate to transfer risk by purchasing freight insurance? A.) When the shipment is high value and you're moving it internationally B.) When the shipment value is low and you're moving it internationally C.) When the product is high value and you're moving it domestically D.) When the freight is low value and it is moving within North America

A.) When the shipment is high value and you're moving it internationally

What are the global channels?

An organized network of agencies and institutions that perform all of the activities required to link producers with users to accomplish the marketing task. -Global market channels pertain to the part of global supply chain management that includes all activities related to sales, service, and the development of relationships with customers, preferably long-term relationships.

How is global SCM different from domestic SCM? How does globalization impact day-to-day operations?

As companies move from National to Global operations supply chain size and complexity grow dramatically.

Match the international shipping document with the most appropriate description: Insurance Certificate A.) Escrow- like agreement between buyer's and seller's banks which guarantees payment if seller meets specified terms of the sale. B.) Assures the coverage of freight loss or damage during transit. C.) A bill for the goods from the seller to the buyer that describes the transaction from start to finish. D.) Issued by the transportation carrier to the exporter acknowledging that shipment has been received and placed on board.

B.) Assures the coverage of freight loss or damage during transit.

This software sits on top of a transactional system to provide decision support, what-if scenario analysis capabilities, and real-time demand commitments. A.) Business intelligence software B.) Supply chain planning software C.) Supply chain execution software D.) Supply chain event management software

B.) Supply chain planning software

According to this week's reading, what document is needed for all shipments sent to the United States? A.) NAFTA Certificate B.) US Customs Invoice C.) Brokerage Application D.) Letter of Credit

B.) US Customs Invoice

According to this week's video, which agency is responsible for screening all containers that enter the U.S.? A.) US Coast Guard B.) US Customs and Border Protection C.) US Department of Treasury D.) Federal Bureau of Investigation

B.) US Customs and Border Protection

Business Intelligence

Build the traditional reports and output systems that provide historical accounts of functional performance for internal planning, operations and control.

Match the international shipping document with the most appropriate description: Commercial invoice: A.) Escrow- like agreement between buyer's and seller's banks which guarantees payment if seller meets specified terms of the sale. B.) Assures the coverage of freight loss or damage during transit. C.) A bill for the goods from the seller to the buyer that describes the transaction from start to finish. D.) Issued by the transportation carrier to the exporter acknowledging that shipment has been received and placed on board.

C.) A bill for the goods from the seller to the buyer that describes the transaction from start to finish.

When does the process of clearing an import shipment through US Customs begin? A.) Before the goods depart the production facility B.) When the goods arrive at the border C.) Before the goods arrive at the border D.) After the goods arrive at the final destination

C.) Before the goods arrive at the border

These tools tools extract data from management systems across the supply chain to a data warehouse where it is quickly analyzed and sent to decision makers. A.) Supply chain planning software B.) Supply chain execution software C.) Business intelligence software D.) Supply chain event management software

C.) Business intelligence software

According to the Procurement 2025 article, chief procurement officers need to focus on each of the following issues EXCEPT: A.) Holistic risk management B.) Economic and social sustainability. C.) Buy and audit capabilities D.) Sourcing transparency

C.) Buy and audit capabilities

In this week's reading, best in class procurement organizations will need to become more comfortable with: A.) Lower skilled workforces B.) Volatile oil prices C.) Data mining and analysis D.) Process suboptimization

C.) Data mining and analysis

What type of international freight service is most appropriate for goods moving relatively short distances between directly accessible origin and destination points? A.) Indirect service B.) Intermodal service C.) Direct service

C.) Direct service

This INCOTERM maximizes the effort, risk, and costs for the buyer (i.e., the importer)? A.) CPT - carriage paid to... B.) FAS - free alongside ship C.) EXW - ex works D.) DDP - delivered, duty paid

C.) EXW - ex works

______________ is a procurement strategy in which a company broadens its supply base beyond its home borders to create competition and reduce prices for purchased goods. It aims to leverage global efficiencies of low costs for materials and labor, low trade tariffs, and economic incentives. A.) Regional purchasing B.) Third party logistics C.) Global sourcing D.) Contract manufacturing

C.) Global sourcing

When Volvo and DongFeng Motor Group collaborate to build medium and heavy duty trucks for the Chinese market and nearby countries, what type of global manufacturing strategy are they pursuing? A.) Exclusive manufacturing B.) Licensing C.) Joint venture D.) Direct investment

C.) Joint venture

The Industry in Action video about ____________ indicates that supply chain technology addresses more than just software. Technology can also be used to automate operations and improve labor productivity. A.) IBM Integration Systems B.) FedEx Cold Chain Solutions C.) Kiva Systems D.) Witron Systems

C.) Kiva Systems

According to this week's article, what is a major problem at world ports. A.) Labor shortages B.) High service charges C.) Port congestion D.) Theft and damage

C.) Port congestion

Which supply chain technology capability captures customer requirements, prioritizes them, and recommend alternatives to ensure product velocity aligns with customer needs. A.) Differentiation B.) Adaptability C.) Speed to market D.) Optimization

C.) Speed to market

This mode selection factor focuses on the total elapsed time from loading through delivery. A.) Fulfillment time B.) Order cycle time C.) Transit time D.) Lag time

C.) Transit time

Getting goods through a port can be very challenging. Which of the following is NOT one of those challenges? A.) Lack of direct move options B.) Potential loading delays C.) Unlimited port access D.) Significant port congestion

C.) Unlimited port access

Event Management

Collect data in real time from multiple sources across the supply chain and convert them to information that gives managers a clear picture of how well their supply chain is performing.

Match the international shipping document with the most appropriate description: Bill of Lading A.) Escrow- like agreement between buyer's and seller's banks which guarantees payment if seller meets specified terms of the sale. B.) Assures the coverage of freight loss or damage during transit. C.) A bill for the goods from the seller to the buyer that describes the transaction from start to finish. D.) Issued by the transportation carrier to the exporter acknowledging that shipment has been received and placed on board.

D.) Issued by the transportation carrier to the exporter acknowledging that shipment has been received and placed on board.

Which global sourcing option involves granting another company the right to use your intellectual property for a royalty fee? A.) Joint venture B.) Direct investment C.) Contract manufacturing D.) Licensing

D.) Licensing

Does the transportation company take title to the goods in an international transaction? A.) Yes B.) Only under DDP terms C.) Only under EXW terms D.) No

D.) No

According to a study by Stanford University, cross border trade processes can involve up to 106 steps. What problem does this cause? A.) Greater in-transit visibility B.) Lower inventory carrying costs C.) Higher order fill rates D.) Opportunities for freight delays

D.) Opportunities for freight delays

According to this week's article, what is the best way to mitigate risk of cargo loss or damage? A.) Self-insure against disasters B.) Use business owner property & casualty insurance C.) Ship everything via airfreight D.) Purchase cargo insurance

D.) Purchase cargo insurance

This software facilitates improved performance of day-to-day operating tasks from the time a purchase order for materials is placed until the delivery of a customer order is made. A.) Supply chain event management software B.) Business intelligence software C.) Supply chain planning software D.) Supply chain execution software

D.) Supply chain execution software

Direct transportation service is effective in situations where freight is moving long distances between continents or facilities that are not directly accessible by the mode of choice. True False

False

Free trade means that goods can flow freely between countries without governmental oversight or engagement. True False

False

Given the complexity, challenges, and costs involved in global SCM, companies no longer find it worth the risks to source goods globally. True False

False

In the case of a shipping catastrophe at sea, a freight owner is only responsible for his own goods and has no potential liability toward goods or equipment owned by other organizations. True False

False

In the case of a shipping catastrophe at sea, a freight owner is only responsible for his own goods and has no potential liability toward goods or equipment owned by other organizations. True False

False

Mobile phones and tablets offer little value for supply chain operations and real-time event management. True False

False

Supply chain information systems can overcome poor quality data and incomplete information to generate good decisions. True False

False

The one cost that global supply chain managers need to be concerned with is the landed cost of the global shipment. True False

False

When an Incoterm includes the letter "I" it stands for intermodal transportation. True False

False

What is the purpose of global sourcing?

Identifying, evaluating, negotiating, and configuring supply to reduce costs, maximize performance, and mitigate risks; we want to leverage global efficiencies in the creation of a product or service. (manufacturing & assembly operations, call center operations, IT programming)

According to this week's article, Incoterms only define contractual rights for risk and responsibility. Both the buyer and seller must separately specify where ownership and title transfer. True False

True

According to this week's article, the Incoterms Group F allows the importer to effectively manage and track their shipmentsy, increasing visibility and control of the freight. True False

True