Chapter 5: Supply Chain Management Concept (True/False)
10. With respect to supply chains, relevancy focuses on an organization's ability to respond to changes in demand with respect to volume and variety.
False
13. The boomerang effect refers to variability in demand orders among supply chain members.
False
16. Big-box retailers have been at the center of changes taking place that affect the supply chain.
False
18. Coopetition refers to cooperative relationships between members of a supply chain to enhance the overall business performance of all parties.
False
19. Tactical information sharing offers the best opportunity for improving supply chain performance.
False
22. Enhanced communications across organizations in a supply chain is only dependent on the technological capabilities of the organizations
False
25. A fourth-party logistics provider is a supply chain facilitator that has achieved ISO 9000 certification.
False
26. Regulatory considerations represent a bigger obstacle than political considerations to supply chain management.
False
29. Actual senior management commitment to supply chain management occurs in one of every two organizations.
False
3. Supply chains are a new concept in the sense that they were first identified in the 1970s and 1980s.
False
33. Today, computer hardware is a larger barrier than computer software to interorganizational collaboration.
False
35. Corporate cultures should not be considered when designing a supply chain.
False
37. An individual firm can only be involved in one supply chain at a time.
False
39. Horizontal integration refers to where one organization owns multiple participants in a supply chain.
False
4. Customers are not included as a component of supply chains.
False
6. The two prominent supply chain management frameworks are the Supply Chain Operations Reference (SCOR) model and the Process Classification Framework (PCF).
False
7. The Supply Chain Operations Reference (SCOR) model identifies five key processes associate with supply chain management.
False
9. Because customer needs and wants change relatively quickly, supply chains should be fast and lean.
False
1. Research on underperforming supply chains suggests that logistics can be crucial to achieving desired levels of supply chain performance.
True
11. A perfect order simultaneously achieves relevant customer metrics.
True
12. Leagility refers to a supply chain that combines the lean and agile paradigms.
True
14. Supply chain disruptions (e.g., terrorist attacks, natural disasters) have caused some supply chains to reassess their emphasis on inventory reduction.
True
15. Relational changes cannot be successful without information sharing among various participants.
True
17. A primary objective of supply chain management is to optimize the performance of the supply chain as a whole.
True
2. The supply chain concept originated in the logistics literature.
True
20. A willingness to share information and buying decisions based on value rather than cost or price are two characteristics of supply chain partnerships.
True
21. The Internet has been referred to as the greatest force of commodization known to man, for both goods and services.
True
23. The general idea behind third-party logistics is that one company allows a specialist company to provide it with one or more logistics functions.
True
24. The decision to use third-party logistics companies can be driven by strategic or tactical considerations.
True
27. The overall global climate for business has shifted toward allowing more cooperation among firms—which should help supply chain management.
True
28. Top management is sometimes hesitant to fully commit to supply chain management.
True
30. One cause of the bullwhip effect is asymmetrical information among supply chain participants.
True
31. Supply chain analytics combines technology with manual employee effort to identify trends, perform comparisons, and highlight opportunities in supply chain processes, even when large amounts of data are involved.
True
32. Although customer loyalty programs can provide highly detailed data to companies, there are some who believe that these programs potentially violate a customer's right to privacy.
True
34. A best-of-breed approach chooses the best software application for a particular function.
True
36. Supply chain integration tends to be more challenging in global, as opposed to domestic, supply chains.
True
38. Supply chain agreements should be designed to reward all participants when collaborative ventures are successful and all participants should share the consequences when these ventures are less successful than desired.
True
40. Broadly speaking, organizations can pursue three primary methods—vertical integration, formal contracts, informal agreements—when attempting to integrate their supply chains.
True
5. Supply chain management requires companies to adopt an enterprise-to-enterprise point of view.
True
8. The Global Supply Chain Forum (GSCF) Model identifies eight relevant processes associated with supply chain management.
True
