Test Bank Chapter 1 Introduction To Supply Chain Management

File: ch01, Chapter 1: Introduction to Supply Chain Management

Multiple Choice

1. SCM involves the design and management of three primary flows:
2. Products, information, funds
3. Suppliers, customers, manufacturers
4. Distributors, retailers, customers
5. Logistics, operations, marketing
6. Responsiveness, reliability, relationship management

Level: Easy

1. Stages of supply chain management include suppliers, producers, distributors, retailers, and:
2. Financial flows
3. Customers
4. Reverse logistics
5. Sustainability
6. None of the above

Level: Medium

1. Examples of ‘upstream’ players in a supply chain include:
2. Suppliers
3. Customers
4. Retailers
5. Distribution centers
6. Outbound transportation providers

Level: Easy

1. Examples of ‘downstream’ players in a supply chain include:
2. Suppliers
3. Manufacturers
4. Retailers
5. Inbound transportation providers
6. Accountants

Level: Easy

1. Three overriding SCM activities within and between firms include:
2. Marketing, sourcing, logistics
3. Suppliers, customers, manufacturers
4. Products, information, funds
5. Coordination, information sharing, collaboration
6. Responsiveness, reliability, relationship management

Level: Medium

1. The growing number and acceptance of customer returns has created an area of SCM called:
2. Order fulfillment
3. Distribution management
4. Reverse logistics
5. Sustainability
6. None of the above

Level: Easy

1. A result of effective information flow through the supply chain is:
2. Improved coordination and collaboration between supply chain partners
3. Reduction in the amount of inventory across the supply chain
4. Reduction of the bullwhip effect
5. Compression of the supply chain from a time standpoint
6. All of the above

Level: Medium

1. An accelerated flow of funds through the supply chain can improve a firm’s profitability by:
2. Increasing interest rates
3. Customers cannot be invoiced more quickly
4. Creating a positive cash flow provides financial opportunity
5. Increasing working capital needs
6. None of the above

Level: Medium

1. Distortion and inaccurate information as it moves from the retailer back through the supply chain is known as:
2. Early supplier involvement
3. Bullwhip effect
4. Supply chain compression
5. Reverse logistics
6. None of the above

Level: Easy

1. Factors driving the growth of SCM include:
2. Better intra-organizational coordination
3. Customer sophistication
4. Early supplier involvement
5. Reverse logistics capabilities
6. Improved relationship management between firms

Level: Medium

1. An example of intra-organizational integration is:
2. Marketing sharing promotion plans with operations
3. Operations informing logistics of production plans
4. Independent retailer sharing point-of-sale data with manufacturer
5. Supplier informing manufacturer of a component defect
6. a and b

Level: Easy

1. The primary role of marketing in an organization is to link the organization to its:
2. Suppliers
3. Operations
4. Customers
5. Finance
6. None of the above

Level: Easy

1. Challenges to developing a systems thinking viewpoint in an organization include:
2. Competing goals and incentives
3. Segmented organizational structure
4. Lack of information sharing
5. ‘Siloed’ decision-making
6. All of the above

Level: Medium

1. Why have partnerships and alliances across enterprises become so important to SCM?
2. Technology is expensive
3. Companies want external supply chain partners to hold more risk
4. “Early supplier involvement” is simple to implement
5. Collaboration enables long-term viability and success in a competitive global environment
6. a and c

Level: Medium

1. The primary difference between logistics and SCM is:
2. SCM is a more popular term
3. Logistics is more strategic in nature
4. There is no difference
5. SCM takes a more strategic and managerial focus
6. Logistics is more complex

Level: Medium

1. How has greater customer affluence increased the importance of SCM?
2. Customers demand higher quality and better service
3. The internet empowered consumers with information
4. Customers wanted more standardized, mass-produced products
5. Customers wanted fewer product choices
6. a and b

Level: Medium

1. A demand-driven supply chain is focused on which SCM characteristic:
2. Relationship management
3. Collaboration
4. Coordination
5. Responsiveness
6. Risk management

Level: Difficult

1. Characteristics of a competitive supply chain include:
2. Outsourcing, reliability, technology
3. Globalization, innovation, reliability
4. Relationship management, finance, early supplier involvement
5. Affluent customers, technology, transportation
6. Reliability, relationship management, responsiveness

Level: Medium

1. Supply chain visibility increases supply chain reliability through:
2. Shared understanding of real-time demand data by all supply chain partners
3. Increasing variability across the supply chain
4. Improved relationship management
5. Understanding customer needs more quickly
6. Putting more pressure on suppliers

Level: Medium

1. The globalization trend presents numerous benefits to SCM including:
2. Removes distance barrier between markets/consumers
3. Consumers have greater product choices
4. More supplier choices
5. Cost savings
6. All of the above

Level: Easy

1. When a firm is focusing on its core competencies, it is engaging in which trend:
2. Sustainability
3. Financial supply chain
4. Lean initiatives
5. Risk management
6. Outsourcing

Level: Easy

1. Postponement is an effective strategy for some firms because it:
2. Is relatively simple and inexpensive to implement
3. Allows for local product customization
4. Increases supplier involvement
5. Decreases the need for relationship management
6. Requires little technology

Level: Difficult

1. Necessary efforts to improve supply chain security present new challenges to firms including:
2. Regulation/compliance requirements
3. Increased transport time and costs
4. Shorter lead times
5. Decreased need for relationship management
6. a and b

Level: Medium

1. Sustainable/green initiatives can be beneficial to firms in the following ways:
2. Enhance supplier relationships/supply availability
3. Increased regulation/compliance requirements
4. Create efficiencies and cost savings
5. Decreases need for relationship management
6. a and c

Level: Medium

25. Key trends in SCM include:

a) Outsourcing

b) Advancements in IT

c) Use of big data analytics

d) Additive manufacturing

e) All of the above

Level: Easy

True/False

1. A supply chain is defined as all the activities that occur within a firm to produce a product or service.

Level: Medium

1. The flows of products, information, and funds, are all important in an effective supply chain.

Level: Easy

1. In an effective supply chain, every activity should contribute to the total value of the firm’s cost or service position.

Level: Medium

1. The best way to think about supply chains is as a linear chain of players from suppliers to customers

Level: Medium

1. An example of an ‘upstream’ part of the supply chain is distribution of finished goods to the retailer.

Level: Medium

1. An example of an ‘upstream’ part of the supply chain is transportation of raw materials to the manufacturer.

Level: Easy

1. First tier suppliers are always more important to a manufacturer than second tier suppliers.

Level: Difficult

1. Coordination involves the effective movement of goods and services through the supply chain; collaboration involves the effective relationships between supply chain members.

Level: Easy

1. It could be argued that, of the three overriding SCM activities, information sharing is the enabler of the other two activities.

Level: Medium

1. 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

Level: Easy

1. The only objective of a supply chain is to deliver a product or service at the lowest cost possible.

Level: Medium

1. The end customer plays a greater role in the manufacturing supply chain than in a service supply chain.

Level: Medium

1. SCM has grown rapidly as a business focus since the 1990s primarily because of globalization.

Level: Medium

1. Becoming a demand-driven supply chain means that the company is focused on responsiveness.

Level: Medium

1. Outsourcing is a required strategy and is a characteristic of all competitive supply chains.

Level: Medium

1. Outsourcing is a trend that is only suitable for manufacturing businesses.

Level: Medium

1. A core competency is an activity within a firm that provides value or competitive advantage.

Level: Easy

1. It could be argued that information technology has been the most impactful trend in the advancement of SCM.

Level: Medium

1. There is no effective strategy developed yet for global companies to control costs while catering to local market tastes.

Level: Medium

1. A requirement to achieving ever-leaner supply chains is collaboration with supply chain partners.

Level: Easy

1. Global supply chains have reduced most companies’ exposure to risk.

Level: Medium

1. Pursuing a lean supply chain strategy reduces a firm’s supply chain risk.

Level: Difficult

1. “Green” supply chain strategies need to be embraced across firms in the supply chain in order to be most effective.

Level: Easy

1. The only benefit to firms of ‘green’ supply chain initiatives is lower costs.

Level: Medium

1. Suppliers are not overly important in a firm’s innovation initiatives.

Level: Medium

Essay

1. Provide an example of the end-to-end supply chain flow of a product of your choice.

Level: Medium

1. Explain the concept of a value chain and why the concept is important to SCM.

Level: Difficult

1. How can an accelerated flow of funds throughout the supply chain improve firm profitability?

Level: Difficult

1. Why is the role of the customer even greater in driving the service supply chain than it is in a manufacturing supply chain?

Level: Difficult

1. Describe the difference between SCM and logistics.

Level: Easy