question

It is important to limit the number of supply chain partners in the product development and commercialization process.

answer

False

question

By working closely with its clients and understanding their needs, A Plus Z has improved its service encounter to a level that was not thought possible in mass retailing. Which of the eight critical business processes performed by supply chain managers does this best illustrate?

answer

Customer service management

question

________________ is any potential disruption that threatens a supply chain's efficient and effective operations.

answer

Supply chain risk

question

Using three-dimensional printing (3DP) technology, objects are built to precise specifications using raw materials at or near the location where they may be consumed.

answer

True

question

The customer relationship management process enables companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or supply chain.

answer

True

question

The goal of most supply management activities is to:

answer

reduce the costs of raw materials and supplies.

question

Which of the following is an advantage of using customer care software?

answer

It enables companies to enhance their customer service management process.

question

In the context of the several criteria based on which supply chain managers choose an appropriate mode of transportation, ______________ is the ability of a carrier to provide the appropriate equipment and conditions for moving specific kinds of goods, such as those that must be transported in a controlled environment.

answer

capability

question

The goal of inventory management is to:

answer

minimize inventory levels while maintaining an adequate supply of goods to meet customer demands.

question

Which of the following is a disadvantage of using a manual, non-automated materials-handling system?

answer

Increases risk of damage

question

A similarity between materials requirement planning (MRP) and distribution resource planning (DRP) is that both inventory systems:

answer

use various inputs, such as sales forecasts, available inventory, and so on, to determine what needs to be done to replenish goods at all points in the supply chain.

question

Supply chain management is a key means of differentiation for a firm and a critical component in marketing and corporate strategy.

answer

True

question

A similarity between the customer relationship management process and supplier relationship management process is that both:

answer

provide structural support for developing and maintaining relationships with their respective supply chain partners.

question

Sustainable supply chain management primarily involves:

answer

the integration and balancing of environmental, social, and economic thinking into all phases of the supply chain management process.

question

________________ reflects inventory that is being assembled or manufactured from its raw state into finished goods for sales.

answer

Work-in-process inventory

question

Storage reduces time utility for buyers and sellers.

answer

False

question

The customer relationship management process includes customer segmentation by value and subsequent generation of customer loyalty for the most attractive segments.

answer

True

question

Through the use of computer-generated shipping notices, AllCare Hardware successfully removes unnecessary costs in its supply chain. According to its vice president of inventory for the retailer, "Information that had to be gathered through three or four phone calls before is now just one click away." This is an example of the use of

answer

technology and planning integration

question

Many modern companies are turning to supply chain management for competitive advantage

answer

True

question

supply chain

answer

the connected chain of all of the business entities, both internal and external to the company, that perform or support the logistics function

question

supply chain management

answer

a management system that coordinates and integrates all of the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value

question

Supply chain management reflects a completely _________________ management philosophy

answer

customer-driven

question

supply chain agility

answer

an operational strategy focused on inducing inventory velocity and operational flexibility simultaneously in the supply chain

question

________________________ is a key means of differentiation for a firm and a critical component in marketing and corporate strategy

answer

Supply chain management

question

Research has shown a clear relationship between supply chain performance and profitability

answer

true

question

A key principle of supply chain management is that multiple firms and their functional areas work together to perform tasks as a single, unified system rather than as several individual companies or business units acting in isolation

answer

true

question

As firms become increasingly supply chain oriented, they develop management practices that are consistent with this system-oriented approach.

answer

true

question

Management practices that reflect a highly coordinated effort between supply chain firms or across business functions within the same or different firms are

answer

integrated

question

supply chain integration

answer

when multiple firms or business functions in a supply chain coordinate their activities and processes so that they are seamlessly linked to one another in an effort to satisfy the customer

question

In the modern supply chain, integration can be either internal or external to a local firm or, in an ideal scenario, both

answer

true

question

demand-supply integration (DSI)

answer

a supply chain operational philosophy focused on integrating the supply-management and demand-generating functions of an organization

question

companies operating under a ______________ are better at their business because all of the different divisions within the company "play from the same sheet of music

answer

DSI philosophy

question

five types of external integration are sought by firms interested in providing top-level service to customers:

answer

relationship, measurement, technology and planning, material and service, and customer

question

Relationship integration

answer

is the ability of two or more companies to develop social connections that serve to guide their interactions when working together; capability to develop and maintain a shared mental framework across companies that describes how they will depend on one another when working together

question

Measurement integration

answer

reflects the idea that performance assessments should be transparent and measurable across the borders of different firms, and should also assess the performance of the supply chain as a whole while holding each individual firm or business unit accountable for meeting its own goals

question

Technology and planning

answer

integration refers to the creation and maintenance of information technology systems that connect managers across the firms in the supply chain

question

Material and service supplier integration

answer

requires firms to link seamlessly to those outsiders that provide goods and services to them so that they can streamline work processes and thereby provide smooth, high-quality customer experiences

question

Customer integration

answer

is a competency that enables firms to offer long-lasting, distinctive, value-added offerings to those customers who represent the greatest value to the firm or supply chain

question

(those that are successful in achieving many or all of these types of integration) have been shown to be better at satisfying customers, managing costs, delivering high-quality products, enhancing productivity, and utilizing company or business unit assets

answer

Highly integrated supply chains

question

Integration involves a balance between ________ and _________

answer

barriers; enablers

question

Companies that work closely with their suppliers encounter problems such as corporate culture, information hoarding, and trust issues

answer

true

question

integration can be improved through

answer

long-term agreements, cross-organizational integrated product teams, and improved communication between partners

question

business processes

answer

bundles of interconnected activities that stretch across firms in the supply chain

question

There are eight critical business processes on which supply chain managers must focus:

answer

Customer relationship management; Customer service management; Demand management; Order fulfillment; Manufacturing flow management; Supplier relationship management; Product development and commercialization; Returns management

question

customer relationship management (CRM)

answer

process allows companies to prioritize their marketing focus on different customer groups according to each group's long-term value to the company or supply chain

question

Once higher-value customers are identified, firms should focus more on providing customized products and better service to this group than to others

answer

true

question

The CRM process includes customer segmentation by

answer

value and subsequent generation of customer loyalty for the most attractive segments

question

customer service management

answer

process presents a multi-company, unified response system to the customer whenever complaints, concerns, questions, or comments are voiced

question

When the process is well executed, it can have a

answer

strong positive impact on revenues, often as a result of quick positive response to negative customer feedback, and sometimes even in the form of additional sales gained through the additional customer contact

question

The use of customer care software enables companies to enhance their customer service management process.

answer

true

question

demand management process

answer

seeks to align supply and demand throughout the supply chain by anticipating customer requirements at each level and creating demand-related plans of action prior to actual customer purchasing behavior

question

The activities such as collecting customer data, forecasting future demand, and developing activities that serve to "smooth out" demand help bring available inventory into alignment with customer desires

answer

true

question

One of the most fundamental processes in supply chain management is the order fulfillment process, which involves generating, filling, delivering, and providing on-the-spot service for customer orders

answer

true

question

order fulfillment process

answer

a highly integrated process, often requiring persons from multiple companies and multiple functions to come together and coordinate to create customer satisfaction at a given place and time

question

The best order fulfillment processes

answer

reduce the time between order and customer receipt as much as possible while ensuring that the customer receives exactly what he or she wants

question

manufacturing flow management

answer

process concerned with ensuring that firms in the supply chain have the needed resources to manufacture with flexibility and to move products through a multi-stage production process

question

The goals of the manufacturing flow management process are centered on

answer

leveraging the capabilities held by multiple members of the supply chain to improve overall manufacturing output in terms of quality, delivery speed, and flexibility, all of which tie to profitability

question

supplier relationship management

answer

process supports manufacturing flow by identifying and maintaining relationships with highly valued suppliers

question

The manufacturing flow management process is

answer

highly dependent on supplier relationships for flexibility

question

supplier relationship management supports manufacturing flow by

answer

identifying and maintaining relationships with highly valued suppliers

question

the supplier relationship management process has a

answer

direct impact on each supply chain member's bottom-line financial performance

question

product development and commercialization process

answer

includes the group of activities that facilitates the joint development and marketing of new offerings among a group of supply chain partner firms

question

The capability for developing and introducing new offerings quickly is key for competitive success versus rival firms, so it is often advantageous to involve many supply chain partners in the effort

answer

true

question

Designing a new product with the help of suppliers and customers can enable a company to

answer

introduce features and cost cutting measures into final products

question

The final supply chain management process deals with situations in which

answer

customers choose to return a product to the retailer or supplier, thereby creating a reversed flow of goods within the supply chain

question

returns management process

answer

enables firms to manage volumes of returned product efficiently while minimizing returns-related costs and maximizing the value of the returned assets to the firms in the supply chain

question

Handling _______ gives the company an additional opportunity to please the customer

answer

returns

question

returns management process allows the firm to recognize weaknesses in

answer

product design and/or areas for potential improvement through the direct customer feedback that initiates the process

question

supply chain team

answer

an entire group of individuals who orchestrate the movement of goods, services, and information from the source to the consumer

question

Supply chain teams typically cut across organizational boundaries, embracing all parties who participate in moving the product to market

answer

true

question

The best supply chain teams also move beyond the organization to include

answer

the external participants in the chain, such as suppliers, transportation carriers, and third-party logistics suppliers

question

Members of the supply chain

answer

communicate, coordinate, and cooperate extensively

question

Supply managers

answer

plan strategies, develop specifications, select suppliers, and negotiate price and service levels

question

The goal of most supply management activities is to

answer

reduce the costs of raw materials and supplies

question

Smart companies manage suppliers strategically in order to

answer

reduce the total cost of materials and services while assuring supplier success as well

question

By integrating suppliers into their companies' businesses, supply managers have become better able to

answer

streamline purchasing processes, manage inventory levels, and reduce overall costs of the sourcing and procurement operations

question

inventory control system

answer

a method of developing and maintaining an adequate assortment of materials or products to meet a manufacturer's or a customer's demand

question

Inventory decisions, for both raw materials and finished goods, have a big impact on supply chain costs and the level of service provided

answer

true

question

stockout

answer

a situation where a customer demand for an inventory item goes unfulfilled because the requested item is unavailable at the needed time and place

question

cycle

answer

stock inventory held temporarily for the purpose of fulfilling predicted demand in a period

question

_____________ is the inventory that supports what the business expects to sell during the period

answer

cycle stock

question

safety (buffer)

answer

stock extra inventory held in addition to cycle stock as insurance against unexpected demand increases

question

in-transit inventory

answer

inventory that is currently moving within a transportation network to or from the company's facilities (plant, warehouse, or sales location)

question

work-in-process inventory

answer

materials inventory that is currently in the process of being converted into finished goods

question

seasonal inventory

answer

an extra inventory buffer that is held in response to predictable demand increases that occur annually

question

materials requirement planning (MRP or materials management)

answer

an inventory control system that manages the replenishment of raw materials, supplies, and components from the supplier to the manufacturer

question

distribution resource planning (DRP)

answer

an inventory control system that manages the replenishment of goods from the manufacturer to the final consumer

question

automatic replenishment program

answer

a real-time inventory system that triggers shipments only when a good is sold to the end user

question

When stock at the customer's location drops below predetermined levels, the supplier takes responsibility

answer

for restocking the shelves or the warehouse

question

The manufacturing process begins with

answer

a customer order

question

order processing system

answer

a system whereby orders are entered into the supply chain and filled

question

Proper order processing is critical to good service

answer

true

question

As an order enters the system, management must monitor two flows:

answer

the flow of goods and the flow of information

question

Good communication among sales representatives, office personnel, and warehouse and shipping personnel is essential to correct order processing

answer

true

question

The flow of goods and information must be continually monitored so that

answer

mistakes can be corrected before an invoice is prepared and the merchandise shipped

question

electronic data interchange (EDI)

answer

information technology that replaces the paper documents that usually accompany business transactions, such as purchase orders and invoices, with electronic transmission of the needed information to reduce inventory levels, improve cash flow, streamline operations, and increase the speed and accuracy of information transmission

question

smart RFID (radio-frequency identification)

answer

an inventory handling and tracking system that employs radio-frequency electromagnetic fields to transfer and read product data via an electronic tag

question

build-to-stock

answer

a production method whereby products are made in advance of demand based on forecasts and are stored until customer orders arrive

question

the most notable disadvantage of build-to-stock scheduling (based on pull selling) is that

answer

companies risk making products that may become obsolete or that consumers do not want in the first place.

question

mass customization (build-to-order)

answer

a production method whereby products are not made until an order is placed by the customer; products are made according to customer specifications

question

Several companies are using ____________________ to give themselves an edge over competition

answer

mass customization

question

postponement

answer

a hybrid production method whereby basic units of a finished good are manufactured in advance of actual demand and held in strategic form or location until demand occurs, when final customization takes place

question

Th postponement strategy it allows companies to

answer

maximize customer satisfaction (by giving them exactly what they want) while at the same time controlling costs (by minimizing the number of basic units needed to do so)

question

The hybrid leagile system incorporates

answer

build-to-stock strategies for high volume, stable demand products, and build-to-order strategies for everything else

question

Storage helps manufacturers manage

answer

supply and demand, or production and consumption

question

materials-handling system

answer

a method of moving inventory into, within, and out of a warehouse

question

Automated materials-handling systems decrease

answer

product handling, ensure accurate placement of product, and improve the accuracy of order picking and the rates of on-time shipment

question

__________ transportation has the highest accessibility

answer

truck

question

__________ transportation has the lowest traceability

answer

pipeline

question

_________ transportation has the highest relative cost

answer

air

question

___________ transportation has the highest transit time

answer

water

question

Transportations has traditionally accounted for __/___ % of goods, though rising fuel costs have recently elevated this to as much as ____%

answer

5/10; 17

question

The five major modes of transportation are

answer

railroads, motor carriers, pipelines, water transportation, and airways

question

supply chain managers choose a mode of transportation on the basis of several criteria:

answer

relative costs, transit time, reliability, capability, accessibility, traceability

question

Relative Cost:

answer

The total amount a specific carrier charges to move the product from the point of origin to the destination

question

Transit time:

answer

The total time a carrier has possession of goods, including the time required for pickup and delivery, handling, and movement between the point of origin and the destination

question

Reliability:

answer

The consistency with which the carrier delivers goods on time and in acceptable condition

question

Capability:

answer

The ability of the carrier to provide the appropriate equipment and conditions for moving specific kinds of goods, such as those that must be transported in a controlled environment (e.g., under refrigeration)

question

Accessibility:

answer

A carrier's ability to move goods over a specific route or network

question

Traceability:

answer

The relative ease with which a shipment can be located and transferred

question

logistics information system

answer

the link that connects all the logistics functions of the supply chain

question

supply characteristics: long lead time and predictable

answer

lean

question

supply characteristics: long lead time and unpredictable

answer

leagile

question

supply characteristics: short lead time and predictable

answer

lean

question

supply characteristics: short lead time and unpredictable

answer

agile

question

sustainable supply chain management

answer

a supply chain management philosophy that embraces the need for optimizing social and environmental costs in addition to financial costs

question

Some of the business trends that are affecting supply chain management include

answer

outsourcing logistics, maintaining a secure supply chain and minimizing supply chain risk, and maintaining a sustainable supply chain

question

outsourcing (contract logistics)

answer

a manufacturer's or supplier's use of an independent third party to manage an entire function of the logistics system, such as transportation, warehousing, or order processing

question

third-party logistics company (3PL)

answer

a firm that provides functional logistics services to others

question

fourth-party logistics company (4PL or logistics integrator)

answer

a consulting-based organization that assesses another's entire logistical service needs and provides integrated solutions, often drawing on multiple 3PLs for actual service

question

Outsourcing enables companies to

answer

cut inventories, locate stock at fewer plants and distribution centers, and still provide the same level of service or even better

question

Because a logistics service provider is focused on logistical functions only, clients receive

answer

better service in a timely, efficient manner, thereby increasing their customers' satisfaction and boosting the perception of added value to a company's offerings

question

offshoring

answer

the outsourcing of a business process from one country to another for the purpose of gaining economic advantage

question

nearshoring

answer

the transfer of an offshored activity from a distant to a nearby country

question

supply chain risk

answer

any potential disruption that threatens the supply chain's efficient and effective operations

question

supply chain security

answer

efforts made by companies to protect their in-transit inventory or value-transforming assets from external or internal threats

question

supply chain resiliency

answer

the ability of a supply chain to return to its ideal operational state after being disrupted

question

electronic distribution

answer

a distribution technique that includes any kind of product or service that can be distributed electronically, whether over traditional forms such as fiber-optic cable or through satellite transmission of electronic signals

question

three-dimensional printing (3DP)

answer

the creation of three-dimensional objects via an additive manufacturing (printing) technology that layers raw material into desired shapes

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