Exam Questions Supply Chain Relationship Management Ch.11

File: ch11, Chapter 11: Supply Chain Relationship Management

Multiple Choice

1. Because of its overlay across all supply chain functions____________ is the most important aspect of SCM.
2. Operations
3. Relationship management
4. Marketing
5. CPFR
6. Six Sigma

Level: Easy

1. SCM relationships that do not require significant management are:
2. Alliances
3. Partnerships
4. Non-strategic Transactions
5. Strategic
6. None of the above

Level: Medium

1. ______________ is the degree of responsibility assigned to a supplier.
2. Criticality
3. Visibility
4. Dependency
5. Scope
6. a and b

Level: Medium

1. If a company outsources all of its manufacturing to a supplier, that relationship would have a ______ level of scope.
2. Low
3. Medium
4. High

Level: Easy

1. A factor that typically determines the scope of a buyer-supplier relationship is:
2. Cost
3. Quality
4. Degree of customization
5. Lead time
6. Profitability

Level: Difficult

1. A large scope of tasks provided by a SCM partner can be beneficial because it allows a company to focus on its ___________:
2. Profitability
3. Customers
4. Suppliers
5. Core competencies
6. None of the above

Level: Difficult

1. When a supplier is the only source of a component or service, it would have a high level of ________ to the buyer.
2. Scope
3. Profitability
4. Criticality
5. Proximity
6. All of the above

Level: Medium

1. As the level of criticality increases, the relationship between buyer and supplier becomes more:
2. Transactional
3. Contractual
4. Unbalanced
5. Relational
6. a and d

Level: Easy

1. When scope and criticality are low, the type of relationship would be:
2. Non-strategic transactional
3. Partnership
4. Alliance
5. Contractual
6. None of the above

Level: Easy

1. In a relationship where scope is high but criticality is low, the relationship would be categorized as:
2. Non-strategic transactional
3. Partnership
4. Alliance
5. Contractual
6. None of the above

Level: Easy

1. When the component being supplied is low in scope yet critical to the manufacturing of a product, the relationship would be categorized as:
2. Non-strategic transactional
3. Partnership
4. Alliance
5. Contractual
6. None of the above

Level: Easy

1. An _______________ is the most comprehensive and customized buyer-supplier relationship.
2. Non-strategic transactional
3. Partnership
4. Alliance
5. Contractual
6. None of the above

Level: Easy

1. Trust-based relationships can improve performance for the following reasons:
2. Sharing joint objectives
3. Coordination is easier to implement
4. Elimination of duplicate efforts
5. All of the above
6. None of the above

Level: Easy

1. Power-based relationships between buyer and supplier can result in:
2. Shared objectives
3. Information sharing
4. Decreased profitability
5. Greater coordination
6. None of the above

Level: Easy

1. When building trust between supply chain partners, typically the initial step is to establish a:
2. Relationship
3. Partnership
4. Contractual agreement
5. Alliance
6. None of the above

Level: Medium

1. The first step in developing a trust-based relationship between buyer and supplier is:
2. Identify operational roles
3. Create a contract
4. Design a conflict resolution process
5. Assess the relationship
6. None of the above

Level: Medium

1. CPFR is an example of __________ interdependence in a relationship.
2. Sequential
3. Mutual
4. Reciprocal
5. Transactional
6. Contractual

Level: Difficult

1. __________ interdependence in a trust-based relationship is more likely to result in greater profitability for all SCM partners.
2. Sequential
3. Mutual
4. Reciprocal
5. Transactional
6. Contractual

Level: Difficult

1. The following attributes are important to the success of a trust-based relationship between parties:
2. Low visibility
3. Equity
4. Commitment
5. Limited information sharing
6. b and c

Level: Easy

1. One of the biggest problems that arises in SCM relationship management is:
2. Profit sharing
3. Visibility
4. Coordination
5. Conflict management
6. Contract management

Level: Medium

1. The global nature of SCM relationships, with different cultures, can create _______ conflict between SCM partners.
2. Relational
3. Data
4. Interest
5. Structural
6. Value

Level: Medium

1. Unequal power and authority in SCM relationships can be a source of _________ conflict.
2. Relational
3. Data
4. Interest
5. Structural
6. Value

Level: Medium

1. The most informal and inexpensive dispute resolution procedure is:
2. Litigation
3. Arbitration
4. Mediation
5. Negotiation
6. Segmentation

Level: Easy

1. _______ is an example of an adversarial negotiating tactic.
2. Listening
3. Inventing
4. Anchoring
5. Asking
6. b and c

Level: Difficult

1. An example of a problem solving tactic used in negotiations is:
2. Inventing
3. Referencing
4. Anchoring
5. Recipricity
6. a and b

Level: Medium

True/False

1. The need to coordinate and collaborate across global supply chains makes relationship management one of the most important aspects of SCM.

Level: Easy

1. Poor communication has the potential to cause failure in a supply chain.

Level: Easy

1. SCM is primarily about the management of suppliers across complex networks of companies.

Level: Medium

1. All SCM relationships should be treated in a similar manner.

Level: Medium

1. Companies should segment relationships across the supply chain to determine necessary levels of management.

Level: Easy

1. For a supplier that provides a commodity product, relationship management can be minimal.

Level: Difficult

1. Transactional relationships require significant relationship management.

Level: Medium

1. Scope and criticality are the two defining dimensions of supply chain relationships.

Level: Medium

1. Criticality refers to the degree of responsibility assigned to a supplier.

Level: Medium

1. Scope refers to the degree of responsibility assigned to a supplier.

Level: Medium

1. When a supply chain member encompasses small scope, the risks of that relationship are small.

Level: Medium

1. The greater the criticality of a supplier relationship, the smaller the risk.

Level: Easy

1. As criticality of the supplier relationship increases, the relationship becomes more contractual.

Level: Difficult

1. In a contractual relationship, scope is high and criticality is low.

Level: Difficult

1. Just-in-time relationships are often characterized as partnerships.

Level: Difficult

1. The most comprehensive buyer-supplier relationship is a partnership.

Level: Medium

1. Alliances typically involve products that are highly customized and processes that require flexibility to business needs of the client/customer.

Level: Easy

1. Companies should strive to establish multiple alliances because close relationships are always beneficial.

Level: Difficult

1. In trust-based relationships, competition between companies typically exists.

Level: Easy

1. The development of joint objectives is a benefit of power-based relationships.

Level: Medium

1. A CPFR program is a good example of sequential operational roles and processes.

Level: Medium

1. When designing and assessing a trust-based relationship, equity is a key component.

Level: Easy

1. For companies in an alliance relationship, it is not necessary to have dispute resolution procedures in place.

Level: Medium

1. When resolving a conflict through mediation, the parties involved retain significant control of the resolution process.

Level: Medium

1. Litigation is the most inexpensive, quick, and amicable conflict resolution strategy.

Level: Medium

1. Leverage refers to the amount of bargaining power in a negotiation strategy.

Level: Easy

1. When considering the negotiator’s dilemma, distributive opportunities are mutually beneficial.

Level: Difficult

1. In effective negotiations, both adversarial and problem-solving tactics may be appropriate and effective.

Level: Easy

1. The keiretsu concept is a strategy to diffuse power differentials in a relationship and allows all parties to grow and prosper.

Level: Medium

1. In SCM relationships, the most effective and fair division of power is an equal 50-50 split.

Level: Easy

Essay

1. Describe and provide an example of the two key dimensions that differentiate and define how supply chain relationships are managed.

Level: Medium

1. List and describe the six steps in developing a Keiretsu supplier partnering model.

Level: Difficult