Test Bank Docx Chapter 3 Network And System Design

File: ch03, Chapter 3: Network and System Design

Multiple Choice

1. A supply chain can be viewed as a system of processes that:
2. Focus on costs
3. Are vertically integrated
4. Cuts across organizations to deliver value
5. Are separate within an organization
6. Eliminate bottlenecks

Level: Easy

1. A key element that supports supply chain strategy is:
2. Supply chain network design
3. Customization
4. Vertical integration
5. Sustainability
6. None of the above

Level: Medium

1. Information technology design enables:
2. Value-segmenting
3. Data sharing and communication
4. Theory of Constraints
5. ERP implementation
6. a and c

Level: Medium

1. A process is a set of activities designed to create:
2. An output for the customer
3. Integration
4. Reduced costs
5. Constraints
6. Innovation and experience

Level: Easy

1. In managing processes, the view that focuses on efficiency is:
2. Operations
3. Distribution
4. Transactional
5. Relationship
6. None of the above

Level: Medium

1. The relationship view of process management seeks to:
2. Enable/enhance coordination between supply chain partners
3. Reduce costs across the supply chain
4. Define how goods and services will be produced
5. Utilize defined cost metrics
6. All of the above

Level: Medium

1. From TOC, “exploiting the constraint” means to:
2. Define the constraint
3. Eliminate the constraint
4. Find ways to best utilize the constraint
5. Reduce variation
6. None of the above

Level: Medium

1. Variation is a challenge because it adds ________ and _______ to a process:
2. Demand and supply
3. Uncertainty and visibility
4. Flexibility and visibility
5. Complexity and uncertainty
6. None of the above

Level: Medium

1. One approach to help manage variation is:
2. Eliminate constraints
3. Reduce buffers
4. Reduce capacity
5. Increase complexity
6. Increase process flexibility

Level: Medium

1. One example of a strategy to manage increased variation is:
2. Inventory buffers
3. Reducing flexibility
4. IT systems
5. Outsourcing
6. a and b

Level: Medium

1. __________ refers to the maximum amount of output that can be achieved by a process.
2. Flexibility
3. Variability
4. Network
5. Capacity
6. Reliability

Level: Easy

1. Capacity available under normal conditions is called:
2. Design capacity
3. Effective capacity
4. Overtime capacity
5. Outsourcing capacity
6. None of the above

Level: Medium

1. A motorcycle factory can produce 500 units of product in one day under normal conditions and 800 maximum units with overtime labor. In December, the factory produced 700 units. What was the factory’s design capacity utilization in December?
2. 87.5%
3. 95%
4. 160%
5. 100%
6. None of the above

Level: Medium

1. A motorcycle factory can produce 500 units of product in one day under normal conditions and 800 maximum units with overtime labor. In December, the factory produced 700 units. What was the factory’s effective capacity utilization in December?
2. 87.5%
3. 95%
4. 160%
5. 100%
6. None of the above

Level: Medium

1. Firm ownership of upstream suppliers is known as:
2. Capacity management
3. Vertical integration
4. Core competencies
5. Outsourcing
6. a and b

Level: Easy

1. Two key aspects of the supply chain network include:
2. Physical structure and management
3. Vertical integration and outsourcing
4. Flexibility and responsiveness
5. IT and suppliers
6. None of the above

Level: Medium

1. One element of supply chain network structure includes:
2. Number of companies in the supply chain
3. Structural dimensions
4. Vertical integration
5. Supplier management
6. a and b

Level: Easy

1. Designing a competitive supply chain network is increasingly challenging because of:
2. Increasing complexity and product proliferation
3. Vertical integration
4. Outsourcing
5. Alliance development
6. All of the above

Level: Medium: Difficult

1. __________ is a strategy for managing increased supply chain complexity.
2. Outsourcing
3. Segmentation
4. ERP systems
5. Alliance development
6. All of the above

Level: Medium

1. A high-volume, low variability demand business requires which type of supply chain structure:
2. Flexibility
3. Cost-efficient
4. Segmented
5. Responsive
6. a and b

Level: Difficult

1. One of the most important benefits of integrated IT systems is improved _________ across the supply chain:
2. Relationships
3. Sourcing
4. Quality
5. Visibility
6. Cost

Level: Medium

1. Modules that are offered as part of an ERP system include:
2. Manufacturing
3. Finance
4. Human resources
5. Supply chain management
6. All of the above

Level: Easy

True/False

1. An effective supply chain should be viewed as a series of separate organizations and functions.

Level: Easy

1. The most effective supply chains cut across organizations to deliver customer value.

Level: Easy

1. Network design is a key element of supply chain strategy.

Level: Easy

1. Information technology (IT) design enables businesses to manage processes.

Level: Medium

1. Business processes are an unstructured collection of activities.

Level: Medium

1. The goal of a process is to create a specific output.

Level: Medium

1. Process outputs can be easily improved only by substituting new inputs.

Level: Medium

1. If a process is managed well it can produce unlimited outputs.

Level: Difficult

1. Logistical and resource constraints limit process outputs.

Level: Difficult

1. For maximum efficiency, it is enough for companies to coordinate internal functions.

Level: Medium

1. The transactional view of SCM processes focuses on making those processes more efficient.

Level: Easy

1. The transactional view of SCM processes are based on qualitative metrics.

Level: Medium: Difficult

1. Relationship-focused SCM processes put significant emphasis on the interactions of people and organizations.

Level: Easy

1. A fundamental principle of the Theory of Constraints (TOC) is that every process has at least one constraint that always must be eliminated entirely from the process.

Level: Difficult

1. A system cannot produce any more than the output of its bottleneck.

Level: Easy

1. Variability exists in every process but it is not a problem for supply chains.

Level: Easy

1. Creating buffers in the supply chain is one way to manage variation.

Level: Easy

1. The maximum amount of output that can be delivered by a process is its complexity.

Level: Medium

1. Design capacity is the maximum process output that can be produced when using temporary measures to alter the normal state of the process.

Level: Medium

1. Vertical integration is the preferred strategy for most companies.

Level: Medium

1. The type of product is not overly important in designing a SCM network structure.

Level: Easy

1. It is possible for companies to have multiple, different supply chains.

Level: Medium

1. A company can gain cost and value advantages by segmenting its supply chains.

Level: Difficult

1. Information technology is considered a critical enabler of effective supply chains.

Level: Easy

1. ERP systems are effective because they separate various business processes from each other.

Level: Medium

Essay

1. Describe the premise behind Theory of Constraints (TOC) and how companies would apply TOC to a supply chain.

Level: Medium

1. Describe how the variation in processes creates challenges for supply chains and provide an example.

Level: Difficult

1. Describe the three stages of integration within an organization.

Level: Easy