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2. Explain the concept of a value chain and why the concept is important to SCM.
Ans: A firm's competitive advantage is derived from each activity that a firm performs, and these activities must provide value to the end customer and/or to the firm, typically through greater service or lower costs. Activities performed along the supply chain that do not meet these criteria should be eliminated or improved.
3. How can an accelerated flow of funds throughout the supply chain improve firm profitability?
Ans: As customers' orders are fulfilled more quickly, firms are able to invoice customers and receive payment sooner than the firm is required to pay its suppliers. The resulting positive cash flow provides significant financial opportunity/benefit for firms.
4. Why is the role of the customer even greater in driving the service supply chain than it is in a manufacturing supply chain?
Ans: In a service industry such as healthcare or banking, the customer interacts directly with the provider. Individual customer behavior can be highly variable and thus impact the resulting 'delivery' of the service in aspects such as quality, timeliness, accuracy, etc.
5. Describe the difference between SCM and logistics.
Ans: SCM is strategic and managerial, focusing on relationships and processes across firms; logistics is tactical and specifically involves moving and positioning inventory throughout the supply chain. Logistics is vital to SCM as it is a key supporting function.
1. Provide an example of the end-to-end supply chain flow of a product of your choice.
Ans: Student should describe a sequential flow that includes the core stages of a supply chain: suppliers, producers, distributors, retailers, and customers.
10. Challenges to developing a systems thinking viewpoint in an organization include:
a) Competing goals and incentives b) Segmented organizational structure c) Lack of information sharing d) 'Siloed' decision-making e) All of the above
19. Sustainable/green initiatives can be beneficial to firms in the following ways:
a) Enhance supplier relationships/supply availability c) Create efficiencies and cost savings
5. A result of effective information flow through the supply chain is:
a) Improved coordination and collaboration between supply chain partners b) Reduction in the amount of inventory across the supply chain c) Reduction of the bullwhip effect d) Compression of the supply chain from a time standpoint e) All of the above
8. An example of intra-organizational integration is:
a) Marketing sharing promotion plans with operations b) Operations informing logistics of production plans
1. SCM involves the design and management of three primary flows:
a) Products, information, funds
18. Necessary efforts to improve supply chain security present new challenges to firms including:
a) Regulation/compliance requirements b) Increased transport time and costs
15. The globalization trend presents numerous benefits to SCM including:
a) Removes distance barrier between markets/consumers b) Consumers have greater product choices c) More supplier choices d) Cost savings e) All of the above
14. Supply chain visibility increases supply chain reliability through:
a) Shared understanding of real-time demand data by all supply chain partners
16. Examples of 'upstream' players in a supply chain include:
a) Suppliers
17. Postponement is an effective strategy for some firms because it:
b) Allows for local product customization
6. Distortion and inaccurate information as it moves from the retailer back through the supply chain is known as:
b) Bullwhip effect
7. Factors driving the growth of SCM include:
b) Customer sophistication
2. Stages of supply chain management include suppliers, producers, distributors, retailers, and:
b) Customers
1. A supply chain is defined as all the activities that occur within a firm to produce a product or service.
F
10. The only objective of a supply chain is to deliver a product or service at the lowest cost possible.
F
12. Outsourcing is a required strategy and is a characteristic of all competitive supply chains.
F
14. Outsourcing is a trend that is only suitable for manufacturing businesses.
F
17. There is no effective strategy developed yet for global companies is to control costs while catering to local market tastes.
F
18. Global supply chains have reduced most companies' exposure to risk.
F
20. Pursuing a lean supply chain strategy reduces a firm's supply chain risk.
F
22. Suppliers are not overly important in a firm's innovation initiatives.
F
23. The only benefit to firms of 'green' supply chain initiatives is lower costs.
F
25. The end customer plays a greater role in the manufacturing supply chain than in a service supply chain.
F
3. The best way to think about supply chains is as a linear chain of players from suppliers to customers
F
4. An example of an 'upstream' part of the supply chain is distribution of finished goods to the retailer.
F
6. First tier suppliers are always more important to a manufacturer than second tier suppliers.
F
9. The primary role of marketing in an organization is to link the organization to its:
c) Customers
4. The growing number and acceptance of customer returns has created an area of SCM called:
c) Reverse logistics
11. Why have partnerships and alliances across enterprises become so important to SCM?
d) Collaboration enables long-term viability and success in a competitive global environment
3. Three overriding SCM activities within and between firms include:
d) Coordination, information sharing, collaboration
12. How has greater customer affluence increased the importance of SCM?
d) Customers wanted fewer product choices
20. The primary difference between logistics and SCM is:
d) SCM takes a more strategic and managerial focus
13. Characteristics of a competitive supply chain include:
e) Reliability, relationship management, responsiveness
11. SCM has grown rapidly as a business focus since the 1990s primarily because of globalization.
T
13. Becoming a demand-driven supply chain means that the company is focused on responsiveness.
T
15. A core competency is an activity within a firm that provides value or competitive advantage.
T
16. It could be argued that information technology has been the most impactful trend in the advancement of SCM.
T
19. A requirement to achieving ever-leaner supply chains is collaboration with supply chain partners.
T
2. The flows of products, information, and funds, are all important in an effective supply chain.
T
21. "Green" supply chain strategies need to be embraced across firms in the supply chain in order to be most effective.
T
24. In an effective supply chain, every activity should contribute to the total value of the firm's cost or service position.
T
5. An example of an 'upstream' part of the supply chain is transportation of raw materials to the manufacturer.
T
7. Coordination involves the effective movement of goods and services through the supply chain; collaboration involves the effective relationships between supply chain members.
T
8. It could be argued that, of the three overriding SCM activities, information sharing is the enabler of the other two activities.
T
9. One of the most effective ways to combat the bullwhip effect is for firms to share point-of-sale data from retailers throughout the supply chain
T
