Week 6

Technological advances in communications linking operations world-wide is a positive factor of ______.

globalization

An important aspect of supply chain management is flow management. What are the three types of flow?

goods/services, information, financial

The _____________ the inventory velocity, the ____________ the holding costs.

greater/lower

An alternative to extra ____ is to have backup suppliers for critical items.

inventory

All of the following are support items usually required to perform Logistics operations EXCEPT ____. fuel equipment & parts marketing brochures tools & lubricants

marketing brochures

True or false: Purchasing agents should be concerned about the perception of wrongdoing when conducting business on behalf of their employer even when they have done nothing unethical.

true

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

Which statement is correct about the type of goods that are moved within a facility as part of production control? "Goods" refers only to raw materials and purchased parts. "Goods" refers only to finished products. "Goods" includes supplies, raw materials, work-in-process and finished products.

"Goods" includes supplies, raw materials, work-in-process and finished products.

What are the advantages of supplier partnerships? Cooperation in planning Fewer suppliers Improved supplier cash flows Longer-term relationship

Cooperation in planning Fewer suppliers Longer-term relationships

Which step of the SCOR® model involves the development of a strategy for managing the resources that are used to meet customer demand?

plan

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

plan

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

Customer, supplier, and company behaviors Environmental issues Human relations and recruitment policies

Supply chains make use of various forms of facilities. Select all the examples of facilities from the list below. Warehouses Conveyor belts Retail outlets Factories Distribution centers Cargo containers

Warehouses Factories Distribution centers Retail outlets

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

Weather disruptions Unpredictable changes Quality issues

What is the definition of a closed-loop supply chain?

When a manufacturer controls both the forward and reverse logistics

Which of the below is an example of strategic partnering? ~When a supplier agrees to implement Lean improvement policies to get a supplier certification from the buyer ~When a supplier agrees to hold inventory for the buyer in exchange for a long-term contract ~When a buyer has a large contract and issues a competitive bid for it and selects the lowest price

When a supplier agrees to hold inventory for the buyer in exchange for a long-term contract

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

converting variable costs to fixed costs

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

focuses on purchase price instead of total cost

For manufacturing companies approximately what percentage of the cost of finished goods comes from purchased parts and materials?

60%

For wholesalers and retailers what approximate percentage of the cost of finished goods comes from purchased inventories?

90%

What is meant by the term reverse logistics?

Physically retrieving and transporting returned items back to the company or a third-party handler

True or false: Businesses can eliminate the need for resiliency by managing risk.

false, not eliminate

What is the difference between centralized and decentralized purchasing?

Centralized purchasing handles all orders from one special department. Decentralized purchasing is done by each individual department separately.

When an organizations wants to increase the customer's perception of variety, what technique is most appropriate? Disintermediation Cross-docking Direct shipping Delayed differentiation

Delayed differentiation

What is the purpose of an RFID tag?

Enables identification of goods in a supply chain using radio waves

Why must movement of materials be coordinated? In order for materials to be shipped using the appropriate method In order for materials to arrive at appropriate times In order for materials to arrive at the appropriate destinations

In order for materials to arrive at appropriate times In order for materials to arrive at the appropriate destinations

Which statement is true about large vs . small lot sizes? Large lot sizes can contribute to the bullwhip effect. Small lot sizes can increase lead times. Small lot sizes can reduce setup costs. Large lot sizes can reduce carrying costs.

Large lot sizes can contribute to the bullwhip effect.

What are the five basic components of supply chain management?

Logistics Strategy Supply management Procurement Demand management

What are the advantages of centralized purchasing? Lower prices Quicker responses Goodwill in community Better service Specialized agents Lower transportation costs

Lower prices Specialized agents Better service

What does the acronym RFID stand for?

Radio Frequency Identification

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

Supplier Relationship Management

What is a broad definition of e-Business?

The use of electronic technology to facilitate business transactions

Select the best definition of strategic partnering.

Two or more business organizations with complementary products or services join so that each may realize a strategic benefit.

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

adopting automated assembly lines

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

agile/ responsive

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

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

operations

Part of logistics is movement of goods within a manufacturing facility, and that movement is part of _______.

production control

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.

purchasing

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.

slower; quicker

Firms are encouraged to adopt a ____ ____ to their supply chains where they make decisions that are optimal for the supply chain as a whole.

systems approach

Put the production control logistical steps in sequential order with 1 being the start of the process and 6 being the last.

1. From incoming vehicles to receiving/storage 2. From storage to point of use 3. From one work center to the next storage 4. From the last operation to final storage 5. From storage to packing/shipping 6. From shipping to outgoing vehicles

Put the main steps of the purchasing cycle in order from 1 to 5 with 1 being the first step and 5 being the last.

1. receive the requisition 2. select a supplier 3. place an order 4. monitor the order 5. receive the order

What is strategic sourcing in supply chain management?

Analyzing the procurement process to lower costs by reducing waste, increase profits, reduce risks & improve performance

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

Deciding whether or not to centralize or decentralize distribution and if a third party logistics company should be hired

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

Determining the number and location of suppliers, warehouses, production/operations facilities, and distribution centers

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? Strategic sourcing Disintermediation Delayed differentiation Cross-docking

Disintermediation

What are the advantages of decentralized purchasing? Lower prices Goodwill in community Lower transportation costs Quicker responses Specialized agents Better service

Goodwill in community Lower transportation costs Quicker responses

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

Evaluating the sources of supply in terms of price, quality, reputation and service giving a weighting factor for each criterion.

What are the main factors involved in choosing a supplier? User friendliness of website ROI percentage Flexibility and lead times Reputation and financial stability Quality and quality assurance Price

Flexibility and lead times Reputation and financial stability Quality and quality assurance Price

What are the two different ways companies manage returns?

Gatekeeping and avoidance

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

Increased transportation costs and lead times Cultural and language differences Currency fluctuations

What are the different ways that companies use electronic technology in their commercial transactions for e-Business? Playing video games at work on break Internet buying and selling Email communication internal and external Electronic tracking of shipments

Internet buying and selling Email communication internal and external Electronic tracking of shipments

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

Inventory Replenishing Production tracking Transportation managing Demand planning

Which aspects of supply chain management are especially important for small businesses?

Inventory management International trade Risk reduction

What is meant by the term bullwhip effect in inventory management?

Inventory oscillations become progressively larger looking backward through the supply chain.

what does financial flow involve?

Involves credit terms, payments, and consignment and title ownership arrangements.

what does information flow involve?

Involves sharing forecast and sales data, transmitting orders, tracking shipments, and updating order status.

what does product and service flow involve?

Involves the movement of goods or services from suppliers to customers as well as handling customer service needs and product returns.

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

Items inspected Items sorted Directed to the appropriate destination

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

Language and cultural differences Increased transportation costs Loss of jobs

How are Assemble-to-Order and Make-to-Order different order fulfillment types?

Make-to-Order requires a long time to manufacture. Assemble-to-Order is relatively short using in-stock components

Who controls logistics in a closed-loop supply chain? Vendor Manufacturer Customer

Manufacturer

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

One of the suppliers on the bid list is owned by a close relative of the purchasing agent

Which functional group generates most of the purchase orders which Procurement then processes?

Operations

Which of the following factors contribute to the inventory bullwhip effect? (Select all that apply.) Price increases in the supply chain Order batching to save on costs Forecast inaccuracies Overreaction to stockouts

Order batching to save on costs Forecast inaccuracies Overreaction to stockouts

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

Order fulfillment

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

Order fulfillment

What is traffic management in the context of supply chain management?

Overseeing the shipment of incoming and outgoing goods

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

Price is moderately important but flexibility is very important One or few number of suppliers Openness and sharing of strategic and tactical information readily occurs

What are some ways that companies can avoid product returns? Quality assurance to minimize defective products Improved product design for customer satisfaction purposes Put an "all sales are final" sticker on all product packaging.

Quality assurance to minimize defective products Improved product design for customer satisfaction purposes

Which of the following characteristics are advantages that RFID tags have over bar codes? (Select all that apply.) RFID tags contain more detailed information than bar codes do. RFID tags are cheaper to utilize than bar codes are. RFID tags do not require a line of sight to scan like bar codes do. Multiple RFID tags can be read simultaneously, whereas bar codes must be scanned individually.

RFID tags contain more detailed information than bar codes do. RFID tags do not require a line of sight to scan like bar codes do. Multiple RFID tags can be read simultaneously, whereas bar codes must be scanned individually.

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

ROI stands for Return on Investment and is a financial basis for decision making,

Which of the following is not a benefit from using RFID? Improved quality control Reduced supplier lead times Enhanced relationships with partners Improved supply chain visibility

Reduced supplier lead times

Which of the following actions is an example of a risk reduction strategy? Contracting with partners to spread risk. Refusing to deal with suppliers in certain areas Replacing unreliable suppliers

Replacing unreliable suppliers

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

Return

Which of the following are duties associated with Procurement? Marketing new product offerings Sourcing materials, parts or finished goods Negotiating contracts with suppliers Re-engineering products or services Managing vendors' quality and timeliness of delivery

Sourcing materials, parts or finished goods Negotiating contracts with suppliers Managing vendors' quality and timeliness of delivery

Development of supply chains should be accorded what level of importance? Routine Strategic Tactical

Strategic

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

Tactical: Deciding where in the supply chain to hold inventory; Operational: replenishing inventory when depleted

What does it mean when a buyer certifies a supplier?

The buyer has certified the supplier has met or exceeded its requirements and can forgo inspecting their incoming goods.

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

The cultures of the buyer and supplier might conflict. Suppliers may need to increase their investment in equipment. Many benefits from the partnership accrue to the buyer.

Select the best definition of Logistics. ~All activities involved in the receipt, storage, inventory and distribution of material & parts used to transform inputs into outputs. ~Transportation of material to the factory and finished goods from the factory to distributor, retailer or customer directly. ~The part of a supply chain involved with the forward and reverse flow of goods, services, cash, and information.

The part of a supply chain involved with the forward and reverse flow of goods, services, cash, and information.

Select the best definition of inventory velocity.

The rate at which goods move through a supply chain.

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

The return of goods from customers

Select the best definition of supply chain. ~The chain of suppliers contracted by an organization, including first, second and third tier suppliers, to provide inputs for production. ~The sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service. ~The raw materials, components or other parts provided by vendors to an organization which are transformed from inputs to outputs.

The sequence of organizations—their facilities, functions, and activities—that are involved in producing and delivering a product or service.

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

The strategic coordination of business functions within and throughout an organization's supply chain to integrate supply and demand.

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

The supply component starts at raw material and ends in the organization. The demand component is from delivery of output to the final customer.

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

There are many suppliers who are pitted against one another Cost is the primary driver and quality inspection is performed by buyer

Why are supplier audits conducted periodically by the buyer? ~Because government regulations require periodic supplier audits in order to be ISO 9000 certified. ~Because buyers do not trust suppliers to do a good job and surprise audits result in higher quality goods. ~To keep current on vendor capabilities, quality, performance, problems and their resolutions.

To keep current on vendor capabilities, quality, performance, problems and their resolutions.

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

To match supply and demand as efficiently as possible.