True/ False Supply Chain
A company's product development strategy defines the set of customer needs that it seeks to satisfy through its products and services.
False
A firm that builds dedicated facilities to produce a relatively stable output of products over time in a very efficient manner and purchases peak production capability from other companies is using subcontracting.
False
A firm that uses flexible work hours from the workforce to manage capacity to better meet demand is using a seasonal workforce.
False
A supply chain includes only the organizations directly involved in supplying components needed for manufacturing
False
Facility location decisions have a long-term impact on a supply chain's performance because it is cost effective to shut down a facility or move it to a different location.
False
Firms focusing on cost leadership tend to find the lowest cost location for their manufacturing facilities, but only if that means locating very far from the markets they serve.
False
For a global supply chain, exchange rates and inflation are unlikely to vary over time in different locations.
False
Operations usually make the promotion and pricing decisions.
False
Tariffs have a minor influence on location decisions within a supply chain.
False
The decision with the lowest NPV will provide a supply chain with the highest financial return.
False
The degree of supply chain responsiveness does not need to be consistent with the implied uncertainty.
False
The following situation would likely work well. A situation in which marketing is publicizing a company's ability to provide a large variety of products very quickly; simultaneously, distribution is targeting the lowest cost means of transportation.
False
The intercompany scope of strategic fit is no longer relevant today because the competitive playing field has shifted from company versus company to supply chain versus supply chain.
False
The major drivers of supply chain performance are customers, facilities, inventory and transportation
False
The objective of every supply chain is to maximize the value generated for the manufacturing component of the supply chain.
False
The objective of the customer arrival process is to ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.
False
The push/pull view of a supply chain holds that the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.
False
To achieve complete strategic fit, a firm must ensure that all functions in the value chain have diverse strategies that support functional goals.
False
A company's competitive strategy defines the set of customer needs that it seeks to satisfy through its products and services.
True
A company's product development strategy specifies the portfolio of new products that it will try to develop.
True
A company's supply chain strategy determines the nature of procurement and transportation of materials as well as the manufacture and distribution of the product.
True
A firm that has production lines whose production rate can easily be varied to match demand has designed product flexibility into the production processes.
True
A firm that purchases peak production capability from other companies so that internal production remains level and can be done cheaply is using subcontracting.
True
A firm that uses a temporary workforce during the peak season to increase capacity to match demand is using a seasonal workforce
True
A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request.
True
An approach where a firm works with their retail partners in the supply chain to offer a price promotion during periods of low demand would shift some of the demand into a slow period, thereby spreading demand more evenly throughout the year and reducing the seasonal surge.
True
Capacity allocation decisions have a significant impact on supply chain performance because they tend to stay in place for several years.
True
Companies using seasonal inventory will build up inventory in periods of low demand and store it for periods of high demand when they will not have the capacity to produce all that is demanded
True
Decisions made during the supply chain design phase regarding significant investments in the supply chain, such as the number and size of plants to build, the number of trucks to purchase or lease, and whether to build or lease warehouse space, cannot be altered in the short term.
True
Financial analysis should be used as an input to decision making, not as the decision-making process.
True
High tariffs lead to more production locations within a supply chain network, with each location having a lower allocated capacity.
True
If facilities have lower fixed costs, many local facilities are preferred because this helps lower transportation costs.
True
If uncertainty is ignored, a manager will always sign long-term contracts because they are typically cheaper and avoid all flexible capacity because it is more expensive.
True
Inventory and facility costs increase as the number of facilities in a supply chain increase.
True
Inventory is an important supply chain driver because changing inventory policies can dramatically alter the supply chain's efficiency and responsiveness.
True
Long-term contracts for both warehousing and transportation requirements will be more effective if the demand and price of warehousing do not change in the future or if the price of warehousing goes up
True
Maximizing revenue is typically the objective when marketing and sales make the promotion and pricing decisions.
True
Network design decisions have a significant impact on performance because they determine the supply chain configuration and set constraints within which inventory, transportation, and information can be used to either decrease supply chain cost or increase responsiveness.
True
Simulation models require a higher setup cost to start and operate compared to decision tree tools.
True
Supply chain network design decisions include the location of manufacturing, storage, or transportation-related facilities and the allocation of capacity and roles to each facility.
True
Supply chain strategy specifies what the operations, distribution, and service functions, whether performed in-house or outsourced, should do particularly well.
True
The advantage of carrying enough manufacturing capacity to meet demand in any period is very low inventory costs, because no inventory needs to be carried from period to period.
True
The allocation of supply sources and markets to facilities has a significant impact on performance because it affects total production, inventory, and transportation costs incurred by the supply chain to satisfy customer demand.
True
The degree of demand and price uncertainty has a significant influence on the appropriate portfolio of long- and short-term warehousing space that a firm should carry.
True
The disadvantage of carrying enough manufacturing capacity to meet demand in any period is that much of the expensive capacity would go unused during most months when demand was lower.
True
The manufacturing cycle occurs at the distributor/manufacturer interface.
True
The present value of a stream of cash flows is what that stream is worth in today's dollars.
True
The present value of future cash flows is found by using a discount factor.
True
The production scheduling process in the manufacturing cycle is similar to the order entry process in the replenishment cycle.
True
The push/pull view of a supply chain holds that the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.
True
The replenishment cycle is initiated when a supermarket runs out of stock of a particular item.
True
The replenishment cycle occurs at the retailer/distributor interface.
True
To achieve complete strategic fit, a firm must ensure that all functions in the value chain have consistent strategies that support the competitive strategy.
True
