Supply Chain Strategy Quiz 1 Chapter 1 - 2

What is a business (competitive) strategy?

Business strategy is a long term plan of action designed to achieve a particular goal or st of business objectives (i.e. how do they compete)

What is Internal process integration?

Collaboration among company's different functional groups

What is Backward process integration?

Collaboration with 1st tier suppliers (through purchasing)

What is Forward Process Integration?

Collaboration with 1st-tier customers (through marketing)

Supply Chain Management is known as

Collaborative Specialization

Which of these statements about supply chain practice is best?

Companies have always been members of a chain of organizations.

Which of these is NOT one of the five forces that determine a company's market power?

Core competence power.

What five basic areas of value creation

Cost Quality Delivery Flexibility Innovation

Three types of analysis are needed to effectively tail supply chain services levels to specific customers

Customer Analysis Supply Chain Analysis Competency Analysis

Three different customer satisfaction strategies

Customer Service Strategies Customer Satisfaction Strategies Customer Success Strategies

Based on customer segmentation, three different types of customer relationships are developed

Customers of Choice Relationships Highly Valued Relationships Transaction Relationships

Which of these statements characterizes the supply chain-enabled perspective of resources?

Develop and manage supplier capabilities.

Four decision areas of strategy

Environment Resources Objectives Feedback

A valid supply chain business model must answer the two questions: "What is our business?" and "How can we do it better than anyone else?"

False

A value chain contains more than one supply chain.

False

An upstream first tier company is closer (from a transaction, not distance, perspective) to the focal company than a downstream first tier company.

False

The environment is the collection of external influences that affect a firm's ability to formulate strategy

False

When designing the global supply chain, answering the question "How do we fit?" is tantamount to mapping the supply chain as it will be in the future.

False

What is Supply Chain Integration?

Methods of coordination of processes both internally and externally with their suppliers and customers.

How can Bullwhip effect mitigated?

Information sharing Collaborative forecasting Collaborative promotion planning

What is a value chain?

Is a chain of activities that a firm operating in specific industry performs in order to deliver a valuable product or service for the market.

Common Business strategies

Low Cost Differentiation Quick Response

What are the three main things that flow through the supply chains?

Material, Finance, Information.

Which companies compete on cost?

Most component manufacturer's Most consumer products Wal-mart, southwest Airlines

What are the Three Main Functions of SCM?

Procurement, Production, Distribution,

Which of the following statements about a manufacturing supply chain is best?

Product is passed directly from the second tier upstream to the first tier upstream.

What is the impact of bullwhip effect?

Significantly increases inventory in supply chain.

Why do companies need a strategy?

Strategy is the basis from which a consistent allocation of resources is made to achieve the business objectives.

An uncoordinated supply chain consists of a supplier providing to a manufacturer that in turn provides for a distributor that provides to the retailer. Which member of the supply chain probably experiences the greatest fluctuation in demand

Supplier

What is a supply chain?

Supply Chain is a term that describes how different organizations (suppliers, manufacturers, distributors, retailers, etc.) are linked together to efficiently meet the needs of the end customer.

What is Supply Chain Management?

Supply chain management is a total systems approach to efficiently manage the entire flow of materials, finance, information and services within the supply chain to meet needs of the end customer.

What is a supply chain strategy?

Supply chain strategy determines the nature of material procurement, manufacture of product or creation of services, distribution of product, etc. to meet the business ( competitive) strategy

Why is the end customer the focus of all activities?

The end customer is the only one who puts money into the supply chain and is therefore should be the focus of all activities

A supply chain enabled perspective of resources would consider the suppliers' and customers' capabilities for the betterment of the chain.

True

Backward process integration may be coordinated through the focal firm's purchasing function.

True

Collaboration is often limited in a supply chain because each firm's manager makes decisions that maximize the profitability and success of their own department.

True

Resource-based theory emphasizes the management of internal assets to establish a competitive advantage that is difficult to duplicate

True

The bullwhip effect can be mitigated if all members of the supply chain share information, develop joint forecasts, and collectively plan promotions.

True

What is a Bullwhip effect?

Variation in demand is exaggerated as information moves upstream away from the point of use.

Which of these steps is first in the systematic approach to supply chain analysis presented throughout the book?

Who are we?

Supply chain management can be described as:

collaborative specialization.

As customer expectations change and the capabilities of suppliers and customers evolve, the __________ decision area of strategy helps managers adjust strategy.

feedback

In an internal value chain, the logistics function:

moves and stores materials so they are available when and where they are needed

An elaborate plan is developed and deployed so that shares of SABA will rise at least 10% in price. This effort is a result of:

the common strategic approach to objectives