Combo with "SCM Chapter 6" and 2 others – Flashcards
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Supply chain information technologies can provide timely, cost efficient sharing of information between suppliers, manufacturers, intermediaries, logistics services providers, and customers
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TRUE
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"It has been said that information is the lifeline of business, driving effective decisions and action. Quality of information is less and less important, given advances in technology."
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FALSE
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Information must be real-time, not just current
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TRUE
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Organizations are putting less emphasis on information technology to help them become more competitive, innovative, and adaptive, relying more on supply chain innovations
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FALSE
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Information technology plays an important role in each of the five drivers of sustainable supply chain management practice
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TRUE
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Now that people are computer-literate, they are no longer a major barrier to the effective use of information technology
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FALSE
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The term supply chain information system (SCIS) is well defined and commonly understood
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FALSE
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Technological capabilities ultimately determine the success or failure of SCIS, rather than the technology users
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FALSE
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Web-enabled SCIS allows managers to monitor sourcing, transportation, and inventory data at the order and item leveL
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TRUE
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Supply chain execution tools have focused on a company's internal logistics activities—order management, warehouse management, inventory management, labor optimization, and transportation management—and are being expanded into new integration software applications
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TRUE
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Event management systems monitor the supply chain for events that are out of tolerance, such as a shortage of parts at a manufacturing location or the breakdown of a truck delivering an important order
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TRUE
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Business intelligence applications are being used to gather information on competitors and their suppliers
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FALSE
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ERP systems are multimodal application software platforms that help organizations manage the important parts of their businesses
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TRUE
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Spreadsheets and database software no longer have a place in SCIS as newer tools have supplanted them
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FALSE
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SCIS software selection is relatively straightforward as the choices have been simplified
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FALSE
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Supply chain software is now available over the Internet. These applications are collectively known as on-demand software
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TRUE
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RFID applications have been widely embraced due to their low cost and high reliability
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FALSE
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Supply chain software sales faltered during the 2007-2009 recession and remained flat in 2010 and 2011
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FALSE
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Individual supply chain applications must work together to provide a holistic view of all relevant processes, and must also link effectively to supply chain partners
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TRUE
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The _________ of demand, customer orders, delivery status, inventory stock levels, and production schedules provides managers with the knowledge needed to make effective situational assessments and develop appropriate responses. a. visibility b. availability c. accuracy d. accountability
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a. visibility
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Which of the below is not part of the seven Rs of logistics? a. information b. cost c. quality d. place
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c. quality
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Which of the following is NOT one of the five drivers of sustainable supply chain management practice? a. adaptability b. synchronization c. velocity d. execution
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d. execution
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___________ is/are a major barrier to the effective use of information technology. a. cost b. people c. effective applications d. management support
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b. people
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The term supply chain information system (SCIS) is defined as a. software that manages the supply chain. b. technology that has enhanced the ability of companies to pay more attention to customers. c. information systems that automate the flow of information between a firm and its suppliers. d. process management software that may or may not use ASP applications.
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C. information systems that automate the flow of information between a firm and its suppliers.
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Supply chain software that provides a platform for manufacturers, distributors, and retailers to aggregate and organize item-related data such as item number, price, description, and weight is called a. business intelligence tools b. supply chain collaboration tools c. spreadsheets and database tools d. data synchronization tools
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d. data synchronization tools
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Supply Chain software includes technologies that a. address virtually every function and task that occurs in the supply chain. b. help organizations plan, execute, and control supply chain activities in real time. c. help to maintain visibility of inventory d. all of these answers
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d. all of these answers
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ERP systems a. are taking the place of SCIS systems. b. have information elements needed by SCIS applications. c. require RFID to be fully functional. d. focus primarily on manufacturing issues
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b. have information elements needed by SCIS applications.
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Managers have several options for software development and implementation. They include a. internal development. b. third party logistics firms. c. external software vendors. d. all of these answers
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d. all of these answers
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The textbook provides an example of how SanDisk improved forecast accuracy by 25%, and achieved higher inventory turns and a lower cost structure as a result of implementing a. a new supply chain execution tool b. business intelligence tools c. an advanced planning solution d. new ERP systems
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c. an advanced planning solution
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Due to mergers and acquisitions in the software industry and ERP vendors moving into the supply chain applications market space, it is possible to purchase a. best of breed solutions from leading providers in each category b. supply chain software suites that combine planning, execution, event management, and related capabilities c. spreadsheet software with expanded capabilities d. event management tools that monitor the supply chain for events that are out of tolerance
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b. supply chain software suites that combine planning, execution, event management, and related capabilities
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On-demand supply chain software that is not installed on a company computer is gaining in popularity. An issue to be addressed with this purchase option is a. Functionality may not be as robust as traditional software b. Data control is an issue c. Total cost of ownership could exceed purchase cost over the long run d. All of these
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d. All of these
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A metric and a measure are the same
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FALSE
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A metric is complex to define, usually involves a calculation or a combination of measurements, and is often in the form of a ratio
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TRUE
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A metric could drive inappropriate behavior
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TRUE
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Scorecards and key performance indicators (KPIs) are the same thing
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TRUE
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Evaluating current or potential supply chain performance metrics is not important to a sound logistics program
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FALSE
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The focus on performance measurement is a recent event in industry
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FALSE
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Customers and suppliers should be included in the development of metrics
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TRUE
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Managers should resist sub-optimization of their particular function unless it benefits the organization as a whole
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TRUE
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Four major categories that provide a useful way to examine logistics and supply chain performance are: time, quality, cost, and inventory
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FALSE
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Another metric classification scheme that has been receiving increased attention is that developed by the Supply Chain Council and contained in the Supply Chain Operations and Reference (SCOR) model
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TRUE
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Order cycle time (OCT) is another very important logistics service metric. OCT influences product availability, customer inventories, and seller's cash flow and profit
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TRUE
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Supply chain management involves the control of raw material, in-process, and finished goods inventories
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TRUE
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The purpose of this chapter is to a. discuss how supply chain metrics are developed. b. develop quantitative tools to show how metrics can be linked to financial performance. c. offer methods for classifying supply chain metrics. d. all of these answers
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d. all of these answers
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An index: a. combines two or more metrics into a single indicator. b. is complex to define, usually involves a calculation and is often in the form of a ratio. c. is easily defined with no calculations and with simple dimensions d. is any quantitative output of an activity or process
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a. combines two or more metrics into a single indicator.
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Scorecard and key performance indicators (KPIs) refer to a. sporting events. b. metrics to manage logistics operations. c. management's evaluation of supply chain staff. d. measuring output.
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b. metrics to manage logistics operations
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16. The current logistics management approach is supported by which performance measurement concepts? a. metrics. b. total cost. c. least total cost. d. the D1 concept developed by the Supply Chain Council
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c. least total cost
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An "executive dashboard" is a. a small number (usually less than five) of KPIs. b. used by senior management to track profits. c. metrics used by an organization's suppliers d. a trend that has only recently developed
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a. a small number (usually less than five) of KPIs.
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19. There are four major categories that provide a useful way for examining logistics and supply chain performance: They are: time, ______, cost, and supporting metrics. a. delivery b. KPIs c. competition d. quality
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d. quality
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20. In the SCOR Model there are five major categories of metrics that need to be used to measure the performance of Process D1: reliability, ___________, agility, costs, and asset management. a. ROA b. responsiveness c. supply chains d. cash to cash cycle
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b. responsiveness
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21. The decision to alter the supply chain process is essentially ___________issue. a. a management b. an optimization c. a supply chain d. a customer satisfaction
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b. an optimization
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22. What is the best financial metric to show the profit an organization generates in relationship to assets utilized? a. ROA b. Profit c. Return on net worth d. Stock price
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a. ROA
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Channel structure management includes decisions regarding the use of outsourcing, channel inventories, ____________, and channel structure. a. cash to cash management b. information systems c. order cycle d. KPIs
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b. information systems
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Effective order management can have an impact on a. reducing supply chain costs. b. increasing revenues. c. improving ROA. d. all of these answers
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d. all of these answers
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Which of the following is NOT an element of Order Management? a. reducing stockouts b. reducing order processing times c. optimizing mode mix d. optimizing order fill rate
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c. optimizing mode mix
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Which of the following is NOT a supply chain decision area regarding ROA improvement? a. Channel Structure Management b. Inventory Management c. Order Management d. Information Management
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d. Information Management
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Gross margin equals a. sales minus COGS b. Sales + taxes minus COGS c. COGS - Sales d. COGS - taxes
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a. sales minus COGS
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Many organizations have directed significant attention toward working more closely with supply chain partners, including not only customers and suppliers but also various types of logistics suppliers
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TRUE
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A horizontal relationship refers to firms on the same level in the supply chain
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FALSE
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The range of relationships with 3PLs ranges from being a vendor to being a vertical supplier
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FALSE
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The first stage in the process model for forming and sustaining supply chain relationships involves the process by which a manufacturer becomes fully aware of its logistics and supply chain needs
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TRUE
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Drivers and facilitators are internal issues that an organization must address before seeking a 3PL
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FALSE
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Once a 3PL provider is chosen, it is not necessary for an organization to seek continuous improvements as the 3PL will handle that function
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FALSE
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Collaboration is usually defined as a "business practice that encourages individual organizations to share information and resources for the benefit of all"
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TRUE
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A Third Party Logistics firm is defined as a company that owns trucks and warehouses so as to offer integrated services
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FLSE
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Outsourcing and contract logistics are terms sometimes used to describe third-party logistics
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TRUE
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A financial based 3PL is a firm that takes a financial interest in an organization in order to underwrite the outsourcing of that firm's logistics
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FALSE
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The most frequently outsourced function is freight bill payment
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FALSE
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The "IT gap" refers to the difference between the internal IT capabilities of 3PL users and the IT expertise of the 3PL providers
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FALSE
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Many organizations are working more closely with a. customers. b. customers and suppliers. c. third-party logistics firms. d. customers, suppliers, and various types of logistics suppliers
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d. customers, suppliers, and various types of logistics suppliers
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Whether the relationship may or may not be with a provider of logistics services, today's supply chain relationships are most effective when collaboration occurs among the ____________ who are involved. a. participants b. third party logistics providers c. customers d. suppliers
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a. participants
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Vertical collaboration refers to a. collaboration among buyers and sellers in the supply chain. b. collaboration among carriers and shippers. c. collaboration that moves up the supply chain. d. collaboration with competitors
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a. collaboration among buyers and sellers in the supply chain.
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Horizontal collaboration refers to a relationship that is ___________ and/or ____________. a. 3PLs to 3PLs and/or service provider to service provider b. buyer to buyer and/or seller to seller c. flat across the chain and/or involving partners equal in size d. collaboration with horizontal and/or vertical competitors
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b. buyer to buyer and/or seller to seller
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Full collaboration is the dynamic combination of a. buyers, sellers, retailers, and 3PLs. b. buyers, sellers, retailers, 3PLs, and appropriate government agencies. c. both vertical and horizontal collaboration. d. buyers and sellers only.
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c. both vertical and horizontal collaboration
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. A third-party logistics firm may be defined as a. an outsource service. b. a firm that owns trucks and warehouses. c. a firm that owns trucks and warehouses and provides computer support. d. an external supplier that performs or manages all or part of a company's logistics functions
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d. an external supplier that performs or manages all or part of a company's logistics functions
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. The least-frequently used IT-based services by customers of 3PLs are: a. transportation management (execution) b. warehouse/distribution management c. global trade management and transport sourcing d. strategic and customer-related
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d. strategic and customer-related
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While available evidence supports the fact that the president or CEO and the finance executive are often involved with the identification of the need for logistic services, a. customers are demanding a change. b. executives from other areas in the company are also aware of such needs but to a lesser degree. c. a 4PL will suggest greater collaboration. d. off shore sourcing will point to greater need.
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b. executives from other areas in the company are also aware of such needs but to a lesser degree.
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Approximately two-thirds of 3PL customers think their providers supply a. tactical or operational services. b. strategic or integrative services. c. trucking and warehouse services. d. a firm that can supply a competency that is not core to the firm.
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a. tactical or operational services
