Chapter Extension 10: Supply Chain Management

Because of the nature of the bullwhip effect, ________ face maximum variation in demand. A) suppliers B) manufacturers C) distributors D) retailers

A

The ________ is used as the measure of supply chain speed. A) dollar value of goods exchanged in a given period of time B) amount of goods exchanged in a given period of time C) total profit generated by the components of supply chain D) time taken to transport goods from one component to another

A

The ________ of information can be transactional, such as orders and order returns, or it can be informational, such as the sharing of inventory and customer order data. A) purpose B) means C) availability D) direction

A

Which of the following refers to a network of organizations and facilities that transforms raw materials into products delivered to customers? A) supply chain B) distribution channel C) strategic business unit D) collaboration system

A

Which of the following statements about inventory is true? A) Managing an inventory requires balancing between availability and cost. B) Inventory includes raw materials and excludes finished goods. C) Inventory management decisions are limited to the size of the inventory. D) Managing inventory focuses on order frequency and not the size of reorders.

A

In a supply chain, distributors order products from ________. A) retailers B) manufacturers C) customers D) suppliers

B

The three factors of information related to the supply chain are ________. A) source, channel, and receiver B) purpose, availability, and means C) source, purpose, and outcome D) purpose, means, and outcome

B

Which of the following is true about the bullwhip effect? A) Small changes in demand at the supplier are amplified at each stage of the supply chain. B) It is a natural dynamic that occurs because of the multistage nature of the supply chain. C) It is strongly associated with erratic consumer demand. D) It increases the overall profitability of the supply chain.

B

Which of the following statements about supply chains is correct? A) Supply chains consist only of customers, retailers, distributors, manufacturers, and suppliers. B) Not every supply chain has distributors and retailers. C) Each element in the supply chain is connected to only one entity up and down. D) The only source of revenue in a supply chain is the retailer.

B

________ refers to the methods by which information is transmitted. A) Direction B) Means C) Purpose D) Availability

B

Which of the following is an example of interorganizational process? A) sales force automation system B) enterprise resource planning system C) Automated Clearing House system among banks D) customer relationship management system

C

Which of the following is an example of inventory? A) machinery B) factories C) raw materials D) capital

C

Which of the following refers to the way organizations share their information? A) means B) purpose C) availability D) intent

C

________ is the difference between the sum of the revenue generated by the supply chain and the sum of the costs that all organizations in the supply chain incur to obtain that revenue. A) Supply chain sustainability B) Supply chain optimization C) Supply chain profitability D) Supply chain analytics

C

The four major drivers that affect supply chain performance are ________. A) suppliers, inventory, distributors, and information B) facilities, working capital, transportation, and storage C) suppliers, facilities, transportation, and distribution D) facilities, inventory, transportation, and information

D

The phenomenon in which the variability in the size and timing of orders increases at each stage up the supply chain is referred to as the ________. A) synergistic effect B) flanging effect C) stack effect D) bullwhip effect

D

Information systems ________. A) reduce the supply chain speed B) only partially eliminate the bullwhip effect C) reduce the cost of inventories but increase their size D) do not optimize supply chain profitability

D