_____ coordinates and integrates all of the activities performed by channel members into a seamless

process, from the source to the point of consumption, resulting in enhanced customer and economic
value. = Supply chain management
_____ integration 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. = Customer
_____ integration is the ability of two or more companies to develop social connections that serve to
guide their interactions when working together. = Relationship
_____ integration requires firms within a supply chain to link seamlessly so that they can streamline
work processes and thereby provide smooth, high-quality customer experiences. = Internal operations
_____ is (are) composed of bundles of interconnected activities that stretch across firms in the supply
chain. = Business processes
_____ is a method of developing and maintaining an adequate assortment of materials or products to
meet a manufacturer's or a customer's needs. = An inventory control system
_____ is the direct electronic transmission, from computer to computer, of standard business forms
between two organizations. When this technique is used, orders can become virtually paperless, and
information about the order is available to both firms. = Electronic data interchange
_____ occurs when all the firms and business units participating in the supply chain appear as though
they are reading from the same script. = Supply chain integration
_____ provides time utility to buyers and sellers and aids manufacturers in managing supply and
demand. = Storage
______ the number of warehouse locations ________ the average outbound distance to the customer
and makes outbound transportation distance a _______ of the total distance traveled by the product. =
increasing; decreases; smaller fraction.
_______ capacity can be used for many types of products but is often _____ efficient = flexible; less
_______ is a service factor performance characteristic of Retail Storage at Consumer Pickup Sites
that is lower than all other options. = Product variety
_______ is the ability of customers to track their orders from placement to delivery = order visibility
________ is the total profit shared across all stages of the supply chain = supply chain profitability
________ can be used to assess the environmental impacts associated with a product's life from
cradle to grave. = CRM
________ continues to be one of the biggest challenges to improved supply chain sustainability. =
Good information
________ costs increase as the number of facilities in a supply chain increases. = Inventory
________ has always worked hard to design products that can be shipped flat to achieve high volume
and weight density during transportation. As a result, the company not only lowers its transportation
costs, it also reduces emissions and energy use. = IKEA
________ has worked hard to reuse heat energy from boilers in its production process and reduce its
total water footprint. = Coca-Cola
________ identifies the difference between the planned production/inventories and the actual values.
= Variance from plan
________ implied demand uncertainty leads to ________ difficulty in matching supply with demand.
For a given product, this dynamic can lead to either a stockout or an oversupply situation. =
increased; increased
________ is a cost factor performance characteristic of Manufacturer or Distributor Storage with
Customer Pickup that is lower than the use of package carriers, especially if using an existing
delivery network. = Transportation
________ is a cost factor performance characteristic of Retail Storage at Consumer Pickup Sites that
is higher than all other options. = Inventory
________ is a mechanism that constrains the aggregate emissions by creating a limited number of
tradeable emission allowances, which emission sources must secure and surrender in proportion to
their emissions. = Cap-and-trade
________ is a service factor performance characteristic of Manufacturer or Distributor Storage with
Customer Pickup that is lower than other options because of the lack of home delivery. Experience is
very sensitive to capability of pickup location. = Customer experience
________ is a social arrangement that encourages all participants to behave such that they do not
contribute to the tragedy of the commons. = Mutual coercion
________ is NOT a key sourcing decision that is made within a firm? = Produce high quality
products
________ measures the average time between when an order is placed and the product arrives. =
Supply lead time
________ measures the incremental costs that are independent of the size of the order. = Incremental
fixed cost per order
________ processes are initiated and performed in anticipation of customer orders = push
________ reduced the amount of harmful phosphates in laundry and dish detergents in the Americas
region by 14.5 percent in 2011 with a goal of reaching a reduction of 70 percent. = Walmart
________ tend to be significant consumers of energy and water and emitters of waste and greenhouse
gases and thus offer significant opportunities for profitable improvement. = Facilities
________ typically measures the cost of bringing product into a facility as a percentage of sales or
cost of goods sold (COGS). = Average inbound transportation cost
________ worked with their equipment supplier, Siemens VAI, to create a new production process
that cut costs and emissions by using local iron ore that was of lower quality but cheaper. = Posco
_______________ are the costs incurred in bringing material into a facility. = inbound transportation
costs
_______________ decrease as the number of facilities are reduced because a consolidation of
facilities allows a firm to exploit _______________ . = Facility costs; economies of scale.
_______________ is a key driver of the overall profitability of a firm because it affects both the
supply chain cost and the customer value directly. = distribution
_______________ is important in the context of manufacture storage, because two stages in the
supply chain are involved in every customer order. Failure to provide this capability is likely to have
a significant negative effect on customer satisfaction. = order visibility
_______________ is the amount of time it takes for a customer to receive an order = response time
_______________ is the fraction of demand that is served on time from product held in inventory. =
level of product availability
_______________ is the time it takes to bring a new product to the market. = time to market
_______________ is the time that elapses between the point at which material enters the supply chain
to the point at which it exits. = Material flow time
_______________ refers to the steps taken to move and store a product from the supplier stage to a
customer stage in the supply chain. = Distribution
----- carriers offer a very fast and fairly expensive mode of transportation for cargo = Air
------ are the preferred mode of transport for online businesses such as amazon.com and dell, as well
as for companies such w.w grainger and mcmaster that send small packages to customers. = Package
carriers
------ typically move commodities over large distances at lower costs per unit shipped = Rail
3 decision phases in a supply chain = supply chain strategy/design; supply chain planning; supply
chain operation
5 typical stages in a supply chain: customers, retailers, distributors/wholesalers, manufacturers,
suppliers (of components/raw materials)
A ________ strategy specifies how the market will be segmented and how the product will be
positioned, priced, and promoted. = Marketing and Sales
A ________ strategy specifies the portfolio of new products that a company will try to develop. =
Product Development
A _______________ facility performs all functions (e.g., fabrication and assembly) needed for
producing a single type of product. = product-focused
A _______________ in the desired response time _______________ the number of facilities required
in the network. = decrease; increases
A cap and trade system can achieve price stability as long as = both a price floor and intertemporal
banking of emissions allowances are allowed.
A company would decide whether to outsource or perform a supply chain function in-house during
the = design phase.
A company's competitive strategy = defines the set of customer needs that it seeks to satisfy through
its products and services.
A company's marketing and sales strategy = specifies how the market will be segmented and how the
product will be positioned, priced, and promoted.
A company's partners in the supply chain determine = the company's success.
A company's product development strategy = specifies the portfolio of new products that it will try to
develop.
A company's supply chain strategy = determines the nature of procurement and transportation of
materials as well as manufacture and distribution of the product.
A contract that allows a retailer to return unsold inventory up to a specified amount, at an agreed
upon price is a = buyback or returns contract
A contract that allows the buyer to modify the order (within limits agreed to by the supplier) as
demand visibility increases closer to the point of sale is a = quantity flexibility contract
A contract that decreases overall costs but leads to higher lot sizes and thus higher levels of inventory
in the supply chain is a = quantity discount contract
A contract that is used to induce performance improvement from a supplier along dimensions, such as
lead time, where the benefit of improvement accrues primarily to the buyer, whereas the effort for
improvement comes primarily from the supplier is a = shared savings contract
A contract where the buyer pays a minimal amount for each unit purchased from the supplier but
shares a fraction of the revenue for each unit sold is a = revenue-sharing contract
A CPFR used for ________ relies less on historical data and more on interpretation of industry
trends, macroeconomics factors, and customer tastes. = seasonal goods
A downside to which contract is that it leads to surplus inventory that must be salvaged or disposed?
= buyback or returns contract
A facility built because of tax incentives, local content requirement, tariff barriers, or high logistics
cost to supply the region from elsewhere with the objective to supply the market where it is located is
= a server facility.
A facility located primarily to obtain access to knowledge or skills that may exist within a certain
region is = an outpost facility.
A facility that also has low cost as its primary objective, but its strategic role is broader than that of an
offshore facility is = a source facility.
A facility that creates new products, processes, and technologies for the entire network is = a lead
facility.
A facility that serves the market where it is located but also assumes responsibility for product
customization, process improvements, product modifications, or product development is = a
contributor facility.
A facility that serves the role of being a low-cost supply source for markets located outside the
country where the facility is located is = an offshore facility.
A facility with little excess capacity = All of the above are true.
A firm can introduce a new product much more _______________ online as compared with doing so
via physical channels. = quickly
A firm must ensure that the supply chain configuration supports its ________ ________ and
________ the supply chain surplus during this phase. = strategic objectives; increases
A firm should add facilities beyond the cost-minimizing point only if managers are confident that the
increase in revenues because of ______________ will be greater than the increase in costs because of
the _____________ . = better responsiveness; additional facilities
A firm that is not on the cost-responsiveness efficient frontier can improve = both responsiveness and
cost performance.
A firm that is not on the efficient frontier can improve both its _________ and its ___________ by
moving toward the efficient frontier. = responsiveness; cost performance
A firm that specializes in the order fulfillment process is called a(n): = third-party logistics firm (3PL)
A fundamental aspect of successful collaboration is = identification and resolution of exceptions.
A graph with two axes with implied uncertainty along the horizontal axis and responsiveness along
the vertical axis is referred to as the = uncertainty/responsiveness map.
A high fashion retailer should rely on = interpretation of industry trends and customer tastes to
forecast next season's demand.
A key issue facing Toyota is = design of its global production and distribution network.
A key issue with regard to drop-shipping is the _________ of the inventory at the manufacturer. If
specified portions of inventory at the manufacturer are allocated to individual retailers, there is little
benefit of aggregation even though the inventory is physically aggregated. = ownership structure
A key supply chain difference between Gateway and Apple is that = Apple has always carried
product in their stores while at one time Gateway stores carried no inventory.
A large automotive after-market business wanted to improve its current situation, which is
characterized by excessive inventory, incomplete information, high logistics costs, slow reactions to
environmental change, and lost profits at the retail level. Would supply chain management be of any
help to the business? = Yes, supply chain management is designed to coordinate and integrate all the
activities from raw materials to product consumption.
A manufacturer of automobile component parts that has turned over all transportation functions to an
independent third party in its supply chain has engaged in: = outsourcing
A manufacturer of cat towers wishes to locate a super assembly facility to meet their cat tower
assembly needs for the next millennium. Currently, carpet, cylinders, yarn and fasteners are
purchased in bulk from suppliers in North Haverbrook, Ogden, and Springfield in the quantities
shown in the table. The super assembly facility would ship to distribution centers located in Seattle,
Lubbock, Nashville, and Philadelphia. The locations of all of these cities on an x-y grid,
transportation costs on a ton per mile basis, and total tonnage are all contained in the table. What is
the distance between the Ogden and Seattle locations? = 630 miles
A manufacturer of cat towers wishes to locate a super assembly facility to meet their cat tower
assembly needs for the next millennium. Currently, carpet, cylinders, yarn and fasteners are
purchased in bulk from suppliers in North Haverbrook, Ogden, and Springfield in the quantities
shown in the table. The super assembly facility would ship to distribution centers located in Seattle,
Lubbock, Nashville, and Philadelphia. The locations of all of these cities on an x-y grid, outbound
transportation costs on a ton per mile basis, and total tonnage are all contained in the table. What is
the cost to transport 500 tons of material between the Springfield and Seattle locations? = $437,500
A manufacturer of cat towers wishes to locate a super assembly facility to meet their cat tower
assembly needs for the next millennium. Currently, carpet, cylinders, yarn and fasteners are
purchased in bulk from suppliers in North Haverbrook, Ogden, and Springfield in the quantities
shown in the table. The super assembly facility would ship to distribution centers located in Seattle,
Lubbock, Nashville, and Philadelphia. The locations of all of these cities on an x-y grid, outbound
transportation costs on a ton per mile basis, and total tonnage are all contained in the table. What is
the optimal location for the Super Assembly Center? = (550, 808)
A manufacturer of cat towers wishes to locate a super assembly facility to meet their cat tower
assembly needs for the next millennium. Currently, carpet, cylinders, yarn and fasteners are
purchased in bulk from suppliers in North Haverbrook, Ogden, and Springfield in the quantities
shown in the table. The super assembly facility would ship to distribution centers located in Seattle,
Lubbock, Nashville, and Philadelphia. The locations of all of these cities on an x-y grid, outbound
transportation costs on a ton per mile basis, and total tonnage are all contained in the table. What is
the minimal shipping cost that satisfies all market demand? = $2,586,342
A manufacturer with significant market power should use = two-part tariffs and volume discounts to
achieve coordination.
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, is called = outsourcing
A shrewd supply chain manager would aggregate only safety inventory and use an inexpensive mode
of transportation for replenishment cycle inventory if she is dealing with a = low-value product and
low demand.
A supply chain features a constant flow of = information, product and funds.
A supply chain has many stages. It would NOT typically involve this stage. = Customer's trip to
retailer
A supply chain strategy involves decisions regarding all of the following except = new product
development.
A third party can increase the supply chain surplus by aggregating demand across multiple firms and
gaining production economies of scale that no single firm can on its own. This is called = capacity
aggregation
A third party increases the supply chain surplus if it aggregates the sourcing for many small players
and facilitates economies of scale in ordering, inbound transportation and production. This is called =
procurement aggregation
A(n) ________ measure of performance is more effective at capturing sustainability improvement. =
relative
A(n) ________ measure of performance is more effective at capturing improvement. = relative
A) the processes in a supply chain are divided into a series of activities performed at the interface
between successive stages. = the processes in a supply chain are divided into 2 categories depending
on whether they are initiated in response to or in anticipation of customer orders.
According to its 2011 CSR report, ________ has designed and opened a viable store prototype that is
up to 25 to 30 percent more energy efficient and produces up to 30 percent fewer greenhouse gas
emissions compared to the 2005 baseline. = Walmart
Actions taken in the course of placing and filling orders that lead to an increase in variability are
referred to as = operational obstacles.
Activities involved in the Customer Relationship Management (CRM) macro process include =
marketing.
=
Activities involved in the Customer Relationship Management (CRM) macro process include all of
the following except = All of the above are activities of CRM.
Activities involved in the Internal Supply Chain Management (ISCM) macro process include = order
fulfillment.
Activities involved in the Internal Supply Chain Management (ISCM) macro process include all of
the following except = order management.
Activities involved in the Supplier Relationship Management (SRM) macro process include =
supplier evaluation and selection.
Activities involved in the Supplier Relationship Management (SRM) macro process include all of the
following except = demand planning.
Align the level of sophistication with the need for sophistication because = all of the above
All of the following accurately describe supply chain management EXCEPT: = relies on a "push"
strategy
All of the following are benefits of supply chain management EXCEPT = decreased cash flow
All of the following are business trends currently having a strong influence on the job of the supply
chain manager EXCEPT = replenishment benchmarking
All of the following are components of inventory decisions except = All of the above are components
of inventory decisions.
All of the following are components of inventory decisions except = capacity.
All of the following are criteria used to choose a mode of transportation EXCEPT: = diversity
All of the following are logistics components of the supply chain EXCEPT = trade promotions
All of the following are types of inputs used in both materials requirement planning and distribution
resource planning EXCEPT: = the source of funding
All of the following are types of integration sought by firms interested in providing top-level service
to customers EXCEPT = production integration
All products may be made on the same line in a plant, but products requiring a ______ _____ ____
_______ may be shipped using a fast mode of transportation, such as FedEx. Products that do not
have _____ _______ needs may be sent by slower and less expensive means such as truck, rail, or
even ship. = high level of responsiveness; high responsiveness.
All raw materials, work in process, and finished goods within a supply chain are known as =
inventory.
All transportation decisions should be evaluated based on their effect on = total costs.
Allocating existing supply based on past retailer sales rather than current retailer orders is known as =
turn and earn.
Allocating too little capacity results in = poor responsiveness if demand is not satisfied or high cost if
demand is filled from a distant facility.
Allocating too much capacity to a location results in = poor utilization, and as a result, higher costs.
Almost 40 percent of ________ could be achieved at negative marginal costs, meaning that investing
in these options would generate positive economic returns over their life cycle. = greenhouse gas
abatement
Although an increase in coordination is required, in-transit merge _______________ transportation
costs relative to drop-shipping by _______________ the final delivery. = decreasese; aggregating
Although faster transportation is more expensive, a firm receives which benefit as a result of the
faster transportation? = lower inventories
Amazon uses different prices for the products that are purchased from the company — often for the
speed of the shipping. What is the name of this pricing scheme? = Menu pricing
Among all the distribution networks, transportation costs are highest for _______________ ,
especially when delivering to individuals. = last-mile delivery
An energy exporting country stands to gain = under a cap and trade system if the supply of crude is
kept below the level achieved with a price on emissions.
An intermediary can increase the supply chain surplus by aggregating inventories across large
numbers of customers. This is called = inventory aggregation
An intermediary can increase the supply chain surplus by decreasing the number of relationships
required between multiple buyers and sellers. This is called = relationship aggregation
An online book store has a distinct disadvantage over a traditional model in the area of =
Transportation
An online grocery store has a distinct advantage over a traditional model in the area of. = Facility
costs
An third party can increase the supply chain surplus if it has a lower collection cost than the firm.
This is called = receivable aggregation
An third party may increase the supply chain surplus by aggregating warehousing needs over several
firms. This is called = warehouse aggregation
As a result of the planning phase, companies define a set of ________ ________ that govern
________ operations. = operating polices; short-term
As a result, some of its vendors have reengineered their packaging. This is an example of _____
integration. = materials and service supplier
As forecasts become firm, they are converted to = actual orders.
As the number of facilities in a supply chain increases = the inventory and resulting inventory costs
also increase.
As the number of facilities in a supply chain increases, total facility costs = increase.
As the response time desired by the customer decreases, the required number of facilities in the
distribution network = increases.
At a train station where lines intersect, the Mumbai dabbawalas perform = a cross-docking function
Available infrastructure, skill needs and response time mostly affect which of the four Global
Network Design Decisions? = Phase III - Desirable Sites
Benefit of aggregation is achieved only if the manufacturer can allocate _______________ portion of
the available inventory across retailers on an as-needed basis. = at least a
Between 1993 and 2006, Dell's competitive strategy was to provide a large variety of customizable
products at a reasonable price. Given the focus on customization, Dell's supply chain was designed to
= be responsive.
Blue Nile is an online retailer of diamonds that has used responsive transportation to ship diamonds
to customers in the United States, Canada, and several countries in Europe and Asia. Which is the
mode of transportation used with this strategy? = Air
Both the product ________ ________ and the various ________ needs that the supply chain tries to
fill affect ________ ______ ________ . = demand uncertainty;customer; implied demand uncertainty
Building some over-capacity in the supply chain network and making the capacity flexible allows a
firm to alter production flows within the supply chain to = produce more in facilities that have a
lower cost based on current exchange rates.
By achieving _____ integration across their supply chains, firms can gain the information needed to
execute short-term and long-term planning, and thereby make better operational decisions.=
technology and planning
By achieving _____ integration across their supply chains, firms can use hardware and software
systems to gain the information needed to execute short-term and long-term planning, and thereby
make better operational decisions. = technology and planning
By working closely with its suppliers and listening to its customers, Target has improved the service
encounter to a level that was not thought possible in mass retailing. = Customer service management
Capacity (component of facilities decisions) A facility with _______ excess capacity will likely be
more efficient per unit of product it produces than one with a lot of ________ capacity. = little;
unused
Capacity allocation decisions have a significant impact on supply chain performance because =
capacity decisions tend to stay in place for several years.
Capital, growth strategy, existing networks and global competition mostly affect which of the four
Global Network Design Decisions? = Phase I - Supply Chain Strategy
change this practice and promises suppliers that their shelf spaces won't shrink even if their boxes do.
Changing the distribution network design affects which 4 supply chain costs?
Inventories,transportation,facilities and handling, information.
Cheaper modes of transport typically have = longer lead times and larger minimum shipment
quantities
Cisco has outsourced almost all of its manufacturing. It does, however, have a sourcing strategy that
varies by product type. For low-end products such as routers for home networks, Cisco aims for
efficiency. These routers are produced and packed in what country that supports this strategy? =
China
clothing and then to the consumer of that clothing? = all of the choices
COGS represents = well over 50% of sales for most major manufacturers
Companies in the same industry often select very different distribution networks because = different
companies have different objectives for their supply chain.
Companies need to think about the future because = all of the above
Companies produce or purchase in _______________ lots to exploit economies of scale in the
production, transportation, or purchasing process. = large
Companies using seasonal inventory build up inventory in periods of ________demand and store it
for periods of ________ demand, when they will not have the capacity to produce all that is
demanded. = low; high
Company A and Company B of the same supply chain rely on market responsiveness to attract
customers. Each company has access to the other company's designs, production schedules, and
goals, and if Company A needs product overnight, Company B gladly ships it, knowing that in the
long run it works to the benefit of both. Such an arrangement is an example of = intercompany scope.
Compared to manufacturer storage, facility costs (of warehousing) are somewhat _______________
with distributor storage because of a loss of _______________ . = higher; aggregation
Concerns related to the environment and sustainability = are sometimes dictated by regulations and
sometimes by perception.
Consider the factors influencing total cost and supplier performance. Which of the following is the
LEAST quantifiable factor? = support
Coordination requires every stage of the supply chain to focus on = supply chain surplus.
costs from its supply chain. According to a vice-president of inventory for the retailer, "Information
Craigslist and eBay are examples of = information aggregation
Customer arrival refers to = the point in time when the customer has access to choices and makes a
decision regarding a purchase.
Customer arrival refers to = the point in time when the customer has access to choices and makes a
decision regarding a purchase.
Customer experience with in-transit merge is likely to be _______________ than with drop-shipping,
because the customer receives only one delivery for an order instead of partial shipments. = better
Customer order entry is = the customer informing the retailer of what they want to purchase and the
retailer allocating product to the customer.
Customer order entry is = the customer informing the retailer of what they want to purchase and the
retailer allocating product to the customer.
Customer order fulfillment refers to = the process where product is prepared and sent to the customer.
Customer order receiving is = the process where the customer receives the product and takes
ownership.
Customer Rick places orders with retailer Negan, who orders from Dwight, who orders from Simon,
who orders from Regina. Simon is a whiz at statistics and makes his forecast for the coming year
based on the orders he receives from Dwight. Simon's process is creating a(n) = information
processing obstacle.
Customer value is? = the sum of the supply chain surplus and supply chain cost
Cycle inventory is used because = demand is uncertain and may exceed expectations.
dealer needing a part for an emergency phones a toll-free number, and the part is delivered by FedEx
Decisions concerning the role of each facility are significant because = they determine the amount of
flexibility the supply chain has in changing the way it meets demand.
Developing countries often create free trade zones where = duties and tariffs are relaxed as long as
production is used primarily for export.
Distribution is a key driver of the overall profitability of a firm because = it directly impacts both the
supply chain cost and the customer experience.
Distributor storage can handle somewhat _______________ variety than manufacturer storage but
can handle a much _______________ level of variety than a chain of retail stores. = lower; higher
Distributor storage has a _______________ cost to provide the same level of product availability as
manufacturer storage. = higher
Distributor storage requires much _______________ inventory than a retail network. = less
Distributor storage with carrier delivery is well suited for _______________ moving items. It also
makes sense when customer want delivery _______________ than is offered by manufacturer storage
but do not need delivery immediately. = slow- to fast-; faster
Distributor storage with last mile delivery requires ___________ levels of inventory than the other
options (except for retail stores) because it has a ___________ level of aggregation. = higher; lower
Distributors add value to a supply chain between a supply stage and a customer stage = if there are
many small players at the customer stage, each requiring a small amount of the product at a time.
Drop-shipping ________ costs of inventory because of _______________ = lowers; aggregation
Duties that must be paid when products and/or equipment are moved across international, state, or
city boundaries are referred to as = tariffs.
Each stage in a supply chain is connected through the flow of products, information, and funds. These
flows often occur in both directions and are usually managed by = one of the stages.
Economies of scale are illustrated by = a supplier waiting until enough demand has built up to send a
full truckload shipment to their customer.
Effective sourcing processes within a firm can = improve profits for the firm and total supply chain
surplus
Efficient supply chains = maximize performance at a minimum cost.
encounter to a level that was not thought possible in mass retailing. This is an example of which of
the eight critical processes performed by supply managers? = customer service management
establishments painted with the Papa John's logo and company colors. Papa John's is using: =
outsourcing
Even though each cycle has the same basic subprocesses, there are a few important differences
among the cycles. In the customer order cycle, demand is ________ to the supply chain and thus is
________ In all other cycles, ________ ________ is uncertain but can be projected based on policies
followed by the particular supply chain stage. = external; uncertain
everything that goes into its buildings. It is this backward integration that gives Sobha absolute
control over quality at every level. Sobha has the highest possible _____ integration. = internal
operations
Excess capacity = both A and B
Facility location decisions have a long-term impact on a supply chain's performance because = it is
very expensive to shut down a facility or move it to a different location.
feature? = order processing
Firms focusing on cost leadership tend to = find the lowest cost location for their manufacturing
facilities.
Firms focusing on responsiveness tend to = locate facilities close to the market they serve.
Firms on the efficient frontier are also continuously improving their processes and changing
technology to = shift the efficient frontier itself.
Firms that focus on cost leadership tend to find the lowest-cost location might = locate far from their
customers.
Firms that target customers who can tolerate a long response time require _______________
_______________ that may be _______________ from the customer. These companies can focus on
_______________ the capacity of each location. = only a few locations; far;increasing
Firms that target customers who value ______ times need to locate facilities _______ to them. These
firms must have _____ facilities, each with a _______ capacity. = short response;close;many;low
Food producers love big boxes because they serve as billboards on store shelves. Walmart wants to
change this practice and promises suppliers that their shelf spaces won't shrink even if their boxes
do.As a result, some of its vendors have reengineered their packaging. This is an example of _____
integration. = materials and service supplier
For a company to achieve strategic fit, it must accomplish the following keys: = The overall supply
chain must operate at the lowest cost possible to achieve success.
For a supply chain, _______________ is the rate at which sales occur. = throughput
For any supply chain, = there is only one source of revenue, the customer.
For any supply chain, the source of revenue is generated by = the customer.
For decisions made during the ___ ___ ___ phase, the time frame considered is a quarter to a year.
Therefore, the supply chain’s configuration determined in the strategic phase is __. This configuration
establishes constraints within which planning must be done. = supply chain planning; fixed.
For drop-shipping to be effective, there should be ______ per order. = few sourcing locations
For every strategic choice to increase responsiveness, there are additional costs that ______.= lower
efficiency
For individuals and firms to focus on sustainability, it is crucial that they = internalize the monetary
value of the social/environmental cost of their actions.
For last-mile delivery, facilities and handling costs are _______________ than manufacturer storage
or distributor storage with package carrier delivery, but _______________ than a chain of retail
stores. = higher; lower
For last-mile delivery, the cost of providing product availability is _______________ than for every
option other than retail sores. = higher/more expensive
For last-mile delivery, the customer experience can be ______ particularly for bulky, hard to carry
items. = very good.
For manufacturer/distributor storage with customer pickup, a response time _______________ to that
of using package carriers can be achieve = comparable
For manufacturer/distributor storage with customer pickup, a significant _______________ is needed
to provide visibility of the order until the customer picks it up. Good coordination is needed among
the retailer, the storage location, and pickup location. = information infrastructure
For manufacturer/distributor storage with customer pickup, order visibility is extremely
_______________ for customer pickups. Such a system is _______________ to implement because
it requires integration of several stages in supply chain. = important; difficult/hard
For manufacturer/distributor storage with customer pickup, product variety and product availability
are _______________ to other manufacturer or distributor storage options. = similar/comparable
For manufacturer/distributor storage with customer pickup, returns can be potentially handled at the
pickup site, making it _______________ for customers. From a transportation perspective, return
flows can be handled using the delivery trucks. = easier
For manufacturer/distributor storage with customer pickup, there is some _______________ of
customer experience, because unlike the other options, customers must pick up their own orders. On
the other hand, customers who don’t want to pay online can pay by cash using this option. Experience
is sensitive to capability of pickup locations = loss
For retail storage with customer pickup, a _______________ information infrastructure is needed if
customers walk into the store and place orders. For online orders, however, a _______________
information infrastructure is needed to provide visibility of the order until the customer picks it up. =
minimal; significant
For retail storage with customer pickup, order visibility is extremely _______________ , but difficult
and essential for customer pickups with orders are placed online or by phone, but trivial for in-store
orders. = important
For retail storage with customer pickup, time to market is the ____ with this option because the new
product must penetrate through the entire supply chain before it is available to customers. = highest
Forecasting is ________ accurate when demand has ________ uncertainty. = more; less
Forward buying results in = large orders during the promotion period followed by very small orders
after that.
From a facility perspective, distributor storage is ________ appropriate for________ ___________
items. = not; extremely slow-moving
future demand, synchronization of supply and demand by comparing production capacity to forecasts,
and the development of activities to "smooth out" demand? = demand management
Geoff receives course transfer requests on a continual basis from student advisors throughout the
week. His policy has always been to sign the accumulated course transfer requests on Friday
afternoons. Once he signs them, they are forwarded to his assistant and then on to the student advisor
for that student's major. The Friday afternoon procedure is creating a(n): = operational obstacles
Given that accessibility and reliability are keys to Lowe's marketing strategy, what mode of
transportation is most likely used in this relationship? = Truck
Given the ease of changing prices and assortments online, the internet allows a company selling
online to manage revenues from its available product portfolio much more _______________ than do
traditional channels. = effectively
Given the limited radius that can be served with _______________ , more warehouses are required
compared to when package delivery is used. = last-mile delivery
Good design collaboration for manufacturability and supply chain can = reduce product cost
group's long-term value to the company or the supply chain? = customer relationship management
If a country has very high tariffs = companies either do not serve the local market or set up
manufacturing plants within the country to save on duties.
If demand is uncertain, a manufacturer can incentivize retailers to provide high levels ofproduct
availability by using = buyback contracts.
If each Jerk Store location is acting independently, how many packets of seasoning should they
stock? = 2840
If each Jerk Store location is acting independently, what is their expected profit if they stock an
optimal quantity? = $13,840
If facilities have lower fixed costs = many local facilities are preferred because this helps lower
transportation costs.
If George and a single Jerk Store act as a vertically integrated supply chain, what is the optimal
quantity for the Jerk Store to order? = 3069
If George and a single Jerk Store act as a vertically integrated supply chain, what is the total supply
chain expected profit if an optimal order quantity is placed? = $16,789
If retailers sell products from competing manufacturers in a VMI system, = inventory at the retailer
will be higher than optimal.
If the number of facilities is increased to a point at which inbound lot sizes are also very small and
result in a significant loss of economies of scale in inbound transportation, _______________ the
number of facilities _______________ total transportation cost. = increasing; increases
If the production technology is very inflexible and product requirements vary from one country to
another, a firm has to set up = local facilities to serve the market in each country.
If the technology is flexible = it becomes easier to consolidate manufacturing in a few large facilities.
Ignoring uncertainty in demand encourages a greater use of = inexpensive and inflexible
transportation modes
Implementation of a CPFR requires implementation of appropriate technology and = replenishment at
rates roughly double pre-implementation levels.
Improperly structured sales force incentives = tend to create spikes in customer orders.
Improvement in supply chain performance at the result of distributors occurs for which of the
following reasons? = A more stable order stream from distributor to manufacturer (compared to
erratic orders from each retailer) allows manufacturers to lower cost by planning production more
effectively.
In a continuous replenishment program, the wholesaler or manufacturer replenishes a retailer
regularly based on = the POS data of the retailer.
In a CPFR system, a gap between forecasts made by two sides is termed a(n) = exception.
In a CRP system, inventory at the retailer is owned by = the retailer.
In a VMI system, the ________ must share demand information with the ________. = retailer;
manufacturer
In almost all countries, roads, seaports, airport, rail and canals have this in common = They were built
or managed by the government
In general, online sales outperform traditional brick and mortar retail sales along the dimension of =
order status tracking.
In general, traditional brick and mortar retail sales outperform online sales along the dimension of =
request fulfillment
In most instances, CRP systems are driven by = the withdrawals of inventory from retailer
warehouses.
In order to reap the greatest return from the online channel for physical goods, firms should =
integrate it with their existing supply chain networks.
In the ________ ________ , the processes in a supply chain are divided into a series of cycles, each
performed at the interface between two successive stages of the supply chain. Not every supply chain
will have all four cycles clearly separated. = cycle view
In the ________ ________ , the processing in a supply chain are divided into two categories,
depending on whether they are executed in response to a customer order or in anticipation of
customer orders. = push/pull view
In the context of greenhouse gas emission, direct emissions = are controlled by the reporting entity.
In the context of greenhouse gas emission, the GHG protocol initiative defines three levels of scope.
The following scope is referred to as direct emissions. = This scope refers to emissions from GHG
sources that are owned or controlled by the reporting entity.
In the context of greenhouse gas emission, the GHG protocol initiative defines levels of scope. This
level refers to emissions from GHG sources that are owned or controlled by the reporting entity. =
Scope 1
In the context of greenhouse gas emission, the GHG protocol initiative defines levels of scope. This
level refers to the inclusion of other indirect emissions coming from sources such as the production of
purchased materials, outsourced activities, contractor owned vehicles, waste disposal, and employee
business travel. = Scope 3
In the context of greenhouse gas emission, the GHG protocol initiative defines levels of scope. This
level refers to indirect emissions from grid-sourced electricity and other utility services of heat, steam
and cooling. = Scope 2
In the planning phase, companies must include uncertainty in ________ , ________ ________ , and
________ over this time horizon in their decisions. = demand; exchange rates; competition
In the short to medium term, an improved focus on sustainability provides benefits that = are shared
but costs that may be local to a firm.
In the textbook, a detailed analysis by Abbott indicated that their indirect emissions were about
________ times their direct emissions. = 6 to 14
In the textbook, Gartner listed the top five ERP software vendors in 2010. Which of the following is
not one of these? = Peoplesoft
In the textbook, it mentions that Wal-Mart has mandated the use of a specific technology by its top
100 suppliers at the level of product cases. What is the technology? = RFID
In which distribution network design is product shipped directly from the manufacturer to the end
customer, bypassing the retailer (who takes the order and initiates the delivery request)? =
Manufacturer storage with direct shipping
In which logistical component of the supply chain will you find distribution resource planning (DRP)
a common feature? = inventory control
In which logistical component of the supply chain will you find electronic data interchange a
common feature? = Order processing
Incentives that focus only on the local impact of an action result in decisions that = do not maximize
total supply chain profits.
Increased product variety and shrinking product life cycles usually result in = the deliberate phase-out
of older products.
Inexpensive and inflexible transportation modes tend to = perform well when everything goes as
planned
information about the order is available to both firms. = Electronic data interchange
Information distortion is exaggerated by the fact that = supply chains today produce a large amount of
product variety.
Information is a key ingredient = A and B only ( at each stage of the supply chain./ within each phase
of supply chain decision making.)
Information is potentially the biggest driver of performance in the supply chain as it directly affects
each of the other drivers. = T
Information is. all of the above
Information on product margins, prices, quality, delivery lead times, and so on, are all important in
making sourcing decisions. Which supply chain driver is relevant here? = Sourcing
Information Technology (IT) = all of the above
Information technology (IT) consists of the tools = B and C only
Internal supply chain management is focused on operations internal to the enterprise. Which of the
following would not fall into this category? = Customer support
Inventory affects the _______________ held, the _______________ incurred, and _______________
provided in the supply chain. = assets; costs; responsiveness
Inventory exists in the supply chain because of = a mismatch between supply and demand
Inventory role in the competitive strategy Responsiveness- locate _______________ closer to
customers. Cost- _______________ inventory. = more inventory; reduce
Investment decisions regarding the transportation infrastructure (rails, locomotives, trucks, airplanes,
etc.) are the primary concern of = the carrier
It is best to disaggregate all inventories and use an inexpensive mode of transportation for
replenishment when you have a = low-value product and high demand
It is very important that long-term consequences be thought through when making facility decisions,
because = facilities last a long time and have an enduring impact on a firm's performance.
its own goals regarding providing the fish they say they are providing? = measurement integration
Key decisions include location and capacity planning of facilities. Which process of the ICSM would
this describe? = Strategic planning
logistics system, such as transportation, warehousing, or order processing, is called: = outsourcing
Long-term boom and bust cycles that mimic the bullwhip effect include = memory chips for personal
computers.
Managers can improve coordination within the supply chain by = aligning goals and incentives.
Managers making facility location decisions should carefully consider tariffs and tax incentives,
because = it is astounding how often tax incentives drive the choice of location.
Managers should ensure that a firm's transportation strategy = supports its competitive strategy
Manufacturer storage with direct shipping is best suited for a _______________ of
_______________, _______________ items for which customers are willing to wait for delivery and
accept several partial shipments = large variety; low-demand; high-value
Markdowns are ________ for products with ________ implied demand uncertainty because
oversupply often results. = high; greater
Mattel, the world's biggest toymaker ordered 18 million toys made in China to be recalled because of
hazards such as the use of lead paint. Mattel's _____ process allowed it to handle the product recall
efficiently. = returns management
Mattel, the world's biggest toymaker, ordered 18 million toys made in China to be recalled because of
hazards such as the use of lead paint. Mattel's _____ process allowed it to handle the product recall
efficiently. = returns management
McDonough and Braungart (2002) discuss the importance of ________ design if we are to truly limit
the landfill inventory generated by a supply chain. = cradle to cradle
Metrics that would typically be in corporate social responsibility (CSR) reports would contain = Both
B and C
Mickey the manager reviewed his company's customers' orders for the past year and compared the
variability of those orders with the variability of the orders he placed with his suppliers. This
comparison allowed him to estimate his own company's contribution to = the bullwhip effect.
mode within the United States is transit time. However, this must be tempered by practical cost
considerations. In light of these considerations, Vidalia onion growers should use _____ to ship their
onions. = motor carriers (trucks)
Most concrete action has been observed primarily when a focus on sustainability = reduces risk and
improving the financial performance of the supply chain
Moving inventory from point to point in the supply is known as = transportation.
Much less success for sustainability initiatives has been driven by = customer demand.
Much of the actual cost of recycling or remanufacturing is directly linked to: = the logistics.
Nabisco has reduced product inventory requirements from 49 days to 22 days. This frees up cash and
warehouse space, adding flexibility to the plant. This seamless linking of Nabisco's strategic business
units is accomplished through _____ integration. = internal operations
Network design decisions have a significant impact on performance because they = set constraints
within which inventory, transportation, and information can be used to either decrease supply chain
cost or increase responsiveness.
Of the eight critical business processes on which supply chain managers must focus, the _____
process presents a multi-company, unified response system to the customer whenever complaints,
concerns, questions, or comments are voiced. = customer service management
Of the eight critical business processes on which supply chain managers must focus, which process
allows companies to prioritize their marketing focus on different customer groups according to each
group's long-term value to the company or the supply chain? = Customer relationship management
Of the eight critical business processes on which supply chain managers must focus, the _____
process presents a multi-company, unified response system to the customer whenever complaints,
concerns, questions, or comments are voiced. = customer service management
On which dimensions should the performance of a distribution network be evaluated at the highest
level? = C and D only
One advantage of a carbon tax system over a cap and trade system is = the carbon tax system displays
more price stability
One appropriate measure to reduce replenishment lead times is to = order electronically.
One major advantage of pipelines over other modes of transportation is: = dependability
One major advantage of pipelines over other modes of transportation is: = reliability
One motivation for companies to shed noncore functions to their supply chains has been to = take
advantage of supplier and customer competencies that they did not possess.
One of the best ways to solve coordination problems is = through teams comprised of different
members of the supply chain.
One replenishment system that assigns replenishment responsibility to a single entity in a supply
chain is = a continuous replenishment program.
One replenishment system that assigns replenishment responsibility to a single entity in a supply
chain is = vendor managed inventory.
One-quarter of Ace's 60,000 SKUs are vendor managed through software called the "Collaboration"
program. This software allows certain vendors to go online to get information to build their forecasts.
The result of this application is fewer shipments, fuller pallets, increased pallets per truck, and a
reduction in freight. Collaboration is part of Ace's: = logistics information system
Online sales can _______________ inventory levels by aggregating inventories far from customers if
most customers are willing to wait for delivery. A key point to note is that the relative benefit of
aggregation is small for _______________ items with _______________ variability but large for
_______________ items with ___________ variability. = lower; high-demand; low;low-demand;
high
Online sales can lower a firm’s inventories if it can _______________ the introduction of variety
until after the customer order is received. = postpone
Online sales increase ________ when compared to the performance of traditional brick and mortar
retail stores. = outbound transportation costs
Only _______________ companies end up using a single distribution network. = niche
Operational improvements that reduce lot sizes can dampen the bullwhip effect by = decreasing the
amount of fluctuation that can accumulate between any pair of stages of a supply chain.
Order visibility becomes _______________ for distributor storage because there is a single shipment
from warehouse to customer and only one stage of supply chain is directly involved in filling the
customer order. = easier
Order visibility for last-mile delivery is _______________ given that deliveries are made within 24
hours.= less of an issue
Outbound transportation costs per unit tend to be = higher than inbound costs
Over the past several decades = the number of owners per supply chain has increased.
Papa John's pizza chain uses UPS trucks to carry supplies to its franchises. Papa John's does not own
the trucks but has contracted with UPS to have all of the trucks it uses in its deliveries to Papa John's
establishments painted with the Papa John's logo and company colors. Papa John's is using: =
outsourcing
Peachtree Windows does not make a window until an order is received. It can promise delivery in
five working days because of the excellent relationships it has established with its suppliers. The
partnering relationship that Peachtree Windows has established with its suppliers indicates the use of:
= supply chain management
Price has traditionally been the only dimension that suppliers have been compared on during the
process of = supplier scoring and assessment
Pricing directly affects revenues but can also affect production costs and inventories depending upon
its impact on consumer demand. Which of the following is not listed as a metric a manager should
track? = Inventory turnover
problem on the company's supply chain. Airplanes use thousands of individual parts and in an attempt
to relieve the smaller, individual supply chain quandary, Boeing used major suppliers to construct
large pieces of the plane. Boeing would have benefited from more _____ integration. = supply chain
Problems in learning within organizations that contribute to the bullwhip effect are referred to as =
behavioral obstacles.
Processes that focus on internal operations within the enterprise are considered = Internal Supply
Chain Management (ISCM).
Processes that focus on upstream interactions between the enterprise and its suppliers are part of =
Supplier Relationship Management (SRM).
Processing costs for last-mile delivery are much _______________ than those for a network of retail
stores because all customer participation is eliminated. A grocery store using last-mile delivery
performs all the processing until the product is delivered to the customer’s home, unlike a
supermarket, where the customer does much more work. = higher
Product variety for last-mile delivery is somewhat ______________ than for distributor storage with
carrier delivery. = less/lower
program. This software allows certain vendors to go online to get information to build their forecasts.
ProLog is a firm that specializes in warehousing and fulfilling orders for firms as diverse as those
supplying parts for manufacturers of complicated missile defense systems to those manufacturing pet
care products. Firms contract ProLog to manage part of all of their order fulfillment process.ProLog
is an example of a: = third party logistics firm (3PL)
Promotion information can be conveyed to customers _______________ and _______________
using the internet as long as the business has access to its customer network. Group is one company
that used social networking online to push promotions to customers. = quickly; inexpensively
Push processes may also be referred to as ________ processes because they respond to speculated (or
forecasted), rather than actual, demand. = speculative
Quantity discounts lower the unit cost = but tend to increase the required batch size and as a result the
cycle inventory
Quite often in a VMI system, the inventory is = owned by the supplier until it is sold by the retailer.
Real time location tracking of vehicles relies on = global positioning systems
Reducing greenhouse gas emissions was most cost effectively achieved by = charging for emissions
Refer to Fishy Business. If all the firms involved with getting the fish from the ocean onto consumers'
plates work together to perform tasks as a single unified system, which of the following are they
using? = A systems approach
Refer to Fishy Business. In the future, a device will allow each member of the supply chain for fresh
fish to verify accountability for providing the species of fish the customer ordered. Which element of
supply chain integration is this when each individual firm or business unit is accountable for meeting
its own goals regarding providing the fish it says it is providing? = Measurement integration
Refer to Fishy Business. In the future, suppliers of fresh fish will be able to use electronic bar codes
to verify the fish species for members of the supply chain. This information can be incorporated into
the information technology used in the inventory management and control business process. This
information technology is called: = electronic data interchange (EDI)
Refer to Fishy Business. The way a restaurant coordinates and integrates the activities performed by
its supply chain members into a collection of seamless end-to-end processes is an example of: =
supply chain management
Refer to Whirlpool and Lowe's. A tremendous amount of _____ exists between Lowe's and
Whirlpool, which is evident by the long-lasting, value-added offerings Whirlpool provides to Lowe's.
= customer integration
Refer to Whirlpool and Lowe's. Given that accessibility and reliability are keys to Lowe's marketing
strategy, what mode of transportation is most likely used in this relationship? = Truck
Refer to Whirlpool and Lowe's. Which business process is Whirlpool and Lowe's using when they
work together to align supply and demand throughout the supply chain? = Demand management
Refer to Whirlpool and Lowe's. Whirlpool contracts with another firm to manage its order fulfillment
process with Lowe's. This contracted firm is referred to as a(n): = third-party logistics firm (3PL)
Relative to manufacturer storage, distributor storage requires a _______________ level of inventory
_______________ of aggregation. = higher; loss
Remanufacturing helps improve profits as long as = two distinct segments of demand exist for the
product — one for new and one for old products
Response times for in-transit merge may be _______________ if the shipments from various sources
are not coordinated. = higher
Response times for last-mile delivery are _______________ than those for package carriers = faster
Response times tend to be long with _________ because of ________ distance and _____________
stages for order processing. Response time may vary by product, thus complicating receiving. =
drop;shipping;increase; two
Retail storage with customer pickup is best suited for _______________ items or items for which
customers value _______________ response. = fast-moving; rapid
Retailers of all sizes can explore CPFR as a strategic option, but in order to be scalable, ________ is
needed. = technology
Retailing in the United States is largely = consolidated.
Returnability is _______________ than it is with manufacturer storage because all returns can be
processed at warehouse itself. The customer also has to return only _______________ package, even
if the items are from several manufacturers. = better; one
Risks and opportunities have increased for supply chains due to = increasing globalization.
Role (Component of facilities decisions) Firms must decide whether production facilities will be
_______, ________, or ______________. = flexible, dedicated, or a combination of the two
route between shipper and receiver? = air
Sales efforts and orders peak near the end of any month, quarter, or other evaluation period. This is
commonly referred to as = the hockey stick phenomenon
Scope of strategic fit refers to both the = function within the firm and stages across the supply chain.
Scoring the performance of suppliers in terms of replenishment lead time thus allows the firm to
evaluate the impact each supplier has on = the cost of holding safety inventory
Seasonal inventory should be used when = a company can rapidly change the rate of its production
system at a very low cost.
Select an IT system that addresses the company's key success factors because = IT systems need to
give a company an advantage in the areas most crucial to the success of the business
Serving a high density of customers at a long is best done using = a cross dock distribution center
with milk runs.
Serving a high density of customers at a short distance is best done using a private fleet = a private
fleet with milk runs
Serving a low density of customers at a long distance is best done using = a package carrier
Serving a medium density of customers at a medium distance is best done using = a LTL carrier
Serving a medium density of customers at a short distance is best done using = third party milk runs
Seven-Eleven in Japan's operations and distribution strategy focuses on = being responsive and
having an excellent information infrastructure.
Significant investment in ______ to integrate manufacturer and retailer. = information infrastructure
Single sourcing for a product is used to = guarantee the supplier sufficient business when the supplier
has to make a significant buyer specific investment
Situations in which the pricing policies for a product lead to an increase in variability of orders placed
are referred to as = pricing obstacles.
Situations where demand information is distorted as it moves between different stages of the supply
chain, leading to increased variability in orders within the supply chain are referred to as =
information processing obstacles.
Situations where incentives offered to different stages or participants in a supply chain lead to actions
that increase variability and reduce total supply chain profits are referred to as = incentive obstacles.
slices tissue very neatly close to the staples, which resulted in less traumatic procedures, and quicker
Sobha Developers is the only company in India and possibly the world that manufactures almost
everything that goes into its buildings. It is this backward integration that gives Sobha absolute
control over quality at every level. Sobha has the highest possible _____ integration. = internal
operations
Sobha Developers is the only company in India and possibly the world that manufactures almost
Social networking channels such as Facebook and twitter allows a firm to pitch products and
promotions _______________ to customers. = directly
Software that provides the foundation upon which the macro processes rest through basic ERP
systems, infrastructure software, and integration software is = Transaction Management Foundation
(TMF).
Sourcing a product overseas may have = lower product cost but will generally incur a higher inbound
transportation cost
Sourcing decisions directly impact the cost of goods sold and accounts payable. Which of the
following is NOT listed as a source-related metric that a manager should track? = Average selling
price
Sourcing involves = all of the above
Specialty Blades designs precision cutting devices for varied applications. On one recent project, they
worked closely with a medical device company, developing a combination scalpel and stapler that
slices tissue very neatly close to the staples, which results in less traumatic procedures and quicker
patient recoveries. This is an example of which of the eight critical processes performed by supply
chain managers? = Product development and commercialization
Specialty Blades designs precision cutting devices for varied applications. On one recent project they
Stefan's compensation plan rewards his hard work by paying him ten cents per mile driven while he
delivers orders to the downstream members of his supply chain. Some managers view this reward as
counterproductive since there is a temptation to take the longest route between two points rather than
making more deliveries. This obstacle to supply chain coordination falls into the category of =
incentive obstacles.
Successful collaborative planning, forecasting and replenishment must be built on a foundation of. =
data synchronization and established standards for exchanging information.
Successful supply chain management requires many decisions relating to the flow of information,
product, and funds. These decisions fall into three categories or phases. Which of the following is
NOT one of these categories? = Supply Chain Alliances
Successful supply chain management requires which of the following decision phases? = all of the
above
Supplier performance should be compared based on = its impact on total cost
Suppliers performance must be rated on many different factors because = the factors impact the total
supply chain cost
Supply chain decision decisions are typically made for the ________ and are ________ to alter on
short notice - firms must take into account uncertainty in anticipated market conditions over the
following few years. = long-term (a matter of years); expensive
supply chain integration is this when each individual firm or business unit is accountable for meeting
Supply chain macro processes include which of the following? = all of the above
Supply chain macro processes include which of the following? = Customer Relationship Management
(CRM) - customer relationship management (CRM), internal supply chain management (ISCM), and
supplier relationship management (SRM)
Supply chain macro processes include which of the following? = Customer Relationship Management
(CRM)
Supply chain macro processes include which of the following? = Supplier Relationship Management
(SRM)
Supply chain macro processes include which of the following? = Internal supply chain management
(ISCM)
Supply chain network design decisions classified as capacity allocation are concerned with = how
much capacity should be allocated to each facility.
Supply chain network design decisions classified as facility location are concerned with = where
facilities should be located
Supply chain network design decisions classified as facility role are concerned with = what processes
are performed at each facility.
Supply chain network design decisions classified as market and supply allocation are concerned with
= what markets each facility should serve and which supply sources should feed each facility.
Supply chain network design decisions include = both the location of manufacturing, storage, or
transportation-related facilities and the allocation of capacity and roles to each facility.
Supply chain profitability is = B and C only
Supply chain profitability is = B and C only
Supply chain responsiveness includes the ability to do which of the following? = Handle supply
uncertainty
Supply chain responsiveness includes the ability to do which of the following? = Meet a very high
service level
Supply chain responsiveness includes the ability to do which of the following? = Meet short lead
times
Supply chain success should be measured in terms of ________ ________ and not in terms of the
profits at an individual stage. = supply chain surplus
Supply chain surplus involves what two parts? = Customer value and supply chain cost
Suppose that a highway is governed by a use fee charged to motorists that is based on congestion,
operation, and maintenance. The total traffic t is used to determine the cosy of 5t^2. What is the
average cost per motorist? = 5t
Suppose that a highway is governed by a use fee charged to motorists that is based on congestion,
operation, and maintenance. Te total traffic t is used to determine the cost of 5t^2 + 7t. What is the
average cost per motorist? = 5t + 7
Suppose that a highway is governed by a use fee charged to motorists that is based on congestion,
operation, and maintenance. Te total traffic t is used to determine the cost of 5t^2 + 7t. What is the
marginal cost? = 10t + 7
Suppose the highway is governed by a use fee charged to motorists that is based on congestion,
operation, and maintenance. The total traffic t is used to determine the cost of 5t^2. What is the
marginal cost? = 10t
Tailoring the supply chain requires sharing operations for some links in the supply chain while having
separate operations for other links. The links are shared to achieve ______ _____ _____ while
providing the appropriate level of ____________ to each segment. = maximum possible
efficiency;responsiveness.
Take incremental steps and measure value because = A and C only
Tariffs, economies of scale and aggregate factor costs mostly affect which of the four Global Network
Design Decisions? = Phase II - Regional Facility Configuration
Temporal aggregation = is the process of combining orders time.
The __ ___ ____ is tailored to each product, channel, or customer segment. = level of responsiveness
The _____ ___ in a supply chain separates push processes from pull processes. = push/pull boundary
The _______ facility, will have difficulty responding to demand fluctuations. = high-utilization
The ________ process links each order to a specific supply source and means of transportation. =
Fulfillment
The ________ strategy results in a peak during the discount week, often followed by a steep drop in
demand during the following weeks. = High-low pricing
The ------ is the party that moves or transports the product = carrier
The -------- is the party that requires the movement of the product between two points in the supply
chain = shipper
The ability of the customer to track their order from placement to delivery is = order visibility
The ability to integrate is important to a customer because = both A and B
The allocation of supply sources and markets to facilities has a significant impact on performance
because = it affects total production, inventory, and transportation costs incurred by the supply chain
to satisfy customer demand.
The allocation of supply sources and markets to facilities should be reconsidered on a regular basis so
that= the allocation can be changed as market conditions or plant capacities change.
The amount of time between order placement, receipt of the customer's payment, and order shipment
is known as the = order-to-cash cycle
The art and science of making projections about what future demand and conditions will be is =
forecasting.
The authors cite IKEA as achieving an intercompany scope of strategic fit which serves to = increase
the supply chain surplus.
The availability of suppliers, transportation services, communication, utilities, and warehousing
infrastructure mostly affect which of the four Global Network Design Decisions? = Phase III -
Desirable Sites
The average amount of inventory used to satisfy demand between receipt of supplier shipments is
referred to as = cycle inventory.
The basic tradeoff supply chain managers face is the cost of holding _______________ lots of
inventory (when cycle inventory is _________) versus the cost of _______________ more frequently
(when cycle inventory is ______). = larger; high; ordering; low
The bullwhip effect = hurts the relationships between different stages of the supply chain.
The bullwhip effect causes = different stages of the supply chain to have a very different estimate of
what demand looks like.
The bullwhip effect decreases = product availability.
The bullwhip effect decreases = profitability.
The bullwhip effect moves a supply chain = away from the efficient frontier by increasing cost and
decreasing responsiveness.
The Canadian lobster harvest requires special handling coupled with rapid transportation to ensure
the cargo reaches destinations alive. The favored transportation mode would be: = air
The competent supply chain manager decided to aggregate all inventories and as required, use fast
mode of transportation for filling customer order of his = high-value and low-demand product
The complexity and scale of transportation makes it an excellent area within the supply chain for the
use of = information technology systems
The concept of tailoring to achieve strategic fit is important in industries such as ________ and
______, in which ______ is critical and products move through a life cycle. = high-tech and
pharmaceuticals; innovation.
The connected chain of all of the business entities, both internal and external to the company, that
perform or support the logistics function is known as the = supply chain
The connected chain of all of the business entities, both internal and external to the company, that
perform = supply chain
The cost of holding inventory incurred by the shipper's supply chain network is = inventory cost
The cost of loading/unloading orders, as well as, other processing costs associated with
transportation, is considered = processing cost
The cost of making and delivering a product to the customer is referred to as = supply chain
efficiency.
The cost of various facilities in the shipper's supply chain network is = facility cost
The costs incurred in bringing material into a facility are = inbound transportation costs.
The costs incurred in sending material out of a facility are = outbound transportation costs.
The CRM processes are crucial to the supply chain because = customer-focused units should be
working independently from internal operations.
The curve that shows the lowest possible cost for a given level of responsiveness is referred to as the=
cost-responsiveness efficient frontier.
The customer order cycle occurs at the = customer/retailer interface.
The customer order cycle occurs at the = customer/retailer interface.
The cycle view is used by ____ systems to support supply chain operations. = enterprise resource
planning (ERP)
The cycle view of a supply chain holds that = the processes in a supply chain are divided into a series
of activities performed at the interface between successive stages.
The cycle view of the supply chain is useful when considering operational decisions, because = it
specifies the roles and responsibilities of each member of the supply chain.
The data and analysis concerning facilities, inventory, transportation, and customers throughout the
supply chain is known as = information.
The decision phases in a supply chain include = supply chain operation.
The decision to have a third party perform a supply chain function is called = outsourcing
The decision to move a production facility outside of domestic boundaries and still maintain
ownership is called = offshoring
The difference between the values of the buyer and seller is referred to as the = bargaining surplus
The disadvantage of using a(n) ________ measure is that a drop in supply chain sales and production
(for example in a downturn) will show an improved absolute measure of energy consumption even
though the company may not have changed anything. = absolute
The drive for strategic fit should come from = the highest levels of the organization, such as the CEO.
The ease with which the customer can place and receive their order as well as other aspects of value
that the sales staff provides is = customer experience.
The emergence of supply chain management has broadened the scope across which companies make
decisions to = the entire supply chain.
The entire set of business processes required to purchase goods and services is = sourcing
The facilities in a supply chain network must = at least equal the number that minimizes total
logistics cost.
The fact that each stage in a supply chain forecasts demand based on the stream of orders received
from the downstream stage results in = a magnification of fluctuations in demand as we move up the
supply chain
The final step in achieving strategic fit between competitive and supply chain strategies is to = match
supply chain responsiveness with the implied uncertainty of demand.
The first step in achieving strategic fit between competitive and supply chain strategies is to =
understand customers and supply chain uncertainty.
The following warehousing methodology is one in which goods are not actually warehoused in a
facility. Instead, trucks from suppliers, each carrying a different type of product, deliver goods to a
facility. There the inventory is broken into smaller lots and quickly loaded onto store-bound trucks
that carry a variety of products, some from each of the supplier trucks. = Cross-docking
The full benefit of coordination is achieved when = the entire supply chain network is coordinated.
The functions and stages that devise an integrated strategy with a shared objective are referred to as =
scope of strategic fit.
The goal of any effective materials-handling system is to: = move items quickly with minimal
handling
The goal of every supply chain should be to track its = landfill inventory.
The goal of inventory control is to: = minimize inventory levels while maintaining an adequate
supply of( goods) to meet customer demands
The goal of procurement is = to enable orders to be placed and delivered on schedule at the lowest
possible overall cost
The goal of the CRM macro process is to = generate customer demand and facilitate transmission and
tracking of orders.
The goal of the supply chain planning phase is to ________ the supply chain surplus that can be
generated over the planning horizon given the constraints established during the strategic or design
phase. = maximize
The growers of Vidalia onions have determined that their chief priority for choosing a transportation
mode within the United States is transit time. However, this must be tempered by practical cost
considerations. In light of these considerations, Vidalia onion growers should use _____ to ship their
onions. = motor carriers (trucks)
The impact of the lack of coordination on supply chain processes decreases for the following
measure. = Level of product availability
The implications of culture should not be glossed over because = tariffs and tax incentives should be
carefully considered.
The important points to remember about achieving strategic fit are = b and c only
The information infrastructure for last-mile delivery is similar to that for _____, however, it requires
the additional capability of scheduling deliveries. = distributor storage with package carrier delivery
The internet allows a customer to place an order at any _______________ time. Online sales also
allow a firm to access customers who are _______________ distant. = convenient; geographically
The internet and cell phones can enhance the convenience and lower the cost of _______________
_______________ , especially in small amounts. = revenue collection
The internet offers an opportunity to create a _______________ buying experience for each
customer. = personalized
The inventory held in case demand exceeds expectation in order to counter uncertainty is called =
safety inventory.
The inventory that is built up to counter predictable variability in demand is called = seasonal
inventory.
The ISCM processes should have strong integration with the SRM macro process because = supply
planning, fulfillment, and field service are all dependent on suppliers.
The key players in any transportation that takes place within a supply chain are = the shipper and the
carrier
The key processes under CRM are = production.
The key weakness of the ________ view is that different functions within a firm may have conflicting
objectives. = Intrafunctional scope
The lack of coordination within a supply chain will result in a decrease in = level of product
availability.
The lack of coordination within a supply chain will result in an increase in = replenishment lead time.
The lack of information sharing between the retailer and manufacturer = leads to a large fluctuation in
manufacturer orders.
The lack of supply chain coordination on various measures of performance has costsassociated with
it. Which of the following is one of these costs? = Manufacturing
The lack of supply chain coordination on various measures of performance has costsassociated with
it. Which of the following is NOT one of these costs? = Quality
The local hominy man is anticipating a bumper crop this year, so he arranges with a chain of grocery
stores to stock up on his hominy as part of a Homina Homina Hominy campaign to lure customers in
to the stores during September for cans of the divinely salty, yet nutritiousvegetable. This approach is
an example of = retail event collaboration.
The main advantage of in-transit merge over drop-shipping is = somewhat lower transportation cost
and improved customer experience.
The main advantage with retail storage is that is can _______________ delivery costs and provide a
_______________ response than other networks. = lower; faster
The main advantages of a network with consumer pickup sites are that it can _______________ the
delivery cost and _________ the set of products sold and customers served online. = lower; expand
The major deterrent to remanufacturing is = the fear that remanufactured products will be purchased
instead of newly-produced products.
The major disadvantage for retail storage is the __________ inventory and facility costs. = increased
The major disadvantage of in-transit merge compared to drop-shipping is = the additional effort
during the merge itself.
The manufacturing and shipping process in the manufacturing cycle is equivalent to the = order
fulfillment process in the replenishment cycle.
The manufacturing cycle occurs at the = distributor/manufacturer interface.
The market for carbon allowances = can result in a heavier polluter buying allowances from a
company with lower carbon output.
The mode of transportation that provides the most accessibility is: = truck freight
The more capabilities constituting responsiveness a supply chain has, = the more responsive it is.
The most common form of collaboration observed in practice is = distribution center replenishment.
The most common in the use of IT in transportation relate to = cross-enterprise collaboration
The most common use of information technology in transportation is to = determine transportation
routes using software
The most important operational decision related to transportation in a supply chain is = the routing
and scheduling of deliveries
The most significant sourcing decision for a firm is = whether to perform a task in-house or outsource
it to a third party. Customer experience/convenience is _______________ with distributer storage
because a single shipment reaches customer in response to an order. = better/higher
The movement of product from one location to another as it makes its way from the beginning of a
supply chain to the customer's hands is referred to as = transportation
The Mumbai dabbawalas perform = both a forward and reverse logistics function
The number of different products/configurations that a customer desires from the distribution network
is = product variety.
The objective of customer order entry is to = ensure that orders are quickly and accurately entered
and communicated to other affected supply chain processes.
The objective of customer order fulfillment is to = get the correct orders to customers by the
promised due date at the lowest possible cost.
The objective of every supply chain is to = maximize the overall value generated.
The objective of the customer arrival process is to = maximize the conversion of customer arrivals to
customer orders.
The objective of the first phase of network design is to = specify what capabilities the supply chain
network must have to support a firm's competitive strategy.
The objective of the second phase of network design is to = identify regions where facilities will be
located, their potential roles, and their approximate capacity.
The objective of the third phase of network design is to = select a set of desirable sites within each
region where facilities are to be located.
The order-tracking feature for _______________ does become important to handle exceptions in case
of incomplete or undelivered orders. = last-mile delivery
The party performing the in-transit merge has _______________ facility costs because of the merge
capability required. = higher
The Pay as You Throw (PAYT) model is designed to = increase recycling.
The phenomenal success of 7-Eleven Japan is attributed to = its supply chain design and management
ability.
The phenomenon where each actor is incentivized to maximize his gain from a public asset at the
expense of all others is = the tragedy of the commons.
The places in the supply chain network where product is stored, assembled, or fabricated are known
as = facilities.
The polluter pays principle dictates that = the entity causing the pollution must bear the cost to
society.
The practice of combining shipments for several retailers on the same truck is known as = a milk run.
The preferable supply chain strategy for a firm that sells multiple products and serves customer
segments with very different needs is to = tailor the supply chain to best meet the needs of each
product's demand.
The presence of lead paint in some of its most popular toys forced ________ to recall hundreds of
thousands of toys sold between April and July of 2007. = Mattel
The probability of having a product in stock when a customer order arrives is = product availability.
The process by which a firm decides how much to charge customers for its goods and services is =
pricing.
The process by which companies acquire raw materials, components, products, services, and other
resources from suppliers to execute their operations is = procurement
The processes included in the replenishment cycle include = retail trigger.
The processes included in the replenishment cycle include all of the following except = none of the
above
The processes involved in the manufacturing cycle include = all of the above
The processes involved in the manufacturing cycle include = production scheduling.
The processes involved in the replenishment cycle include = all of the above
The procurement cycle occurs at the = manufacturer/supplier interface.
The procurement process for both direct and indirect materials should work on = consolidation of
orders to take advantage of economies of scale and quantity discounts
The procurement process for direct materials should focus on = improving coordination and visibility
with the supplier
The production scheduling process in the manufacturing cycle is similar to the = order entry process
in the replenishment cycle.
The profitability of a supply chain is impacted primarily by the = design, planning and operation
categories of decisions.
The push/pull view of a supply chain holds that
The push/pull view of a supply chain holds that = the processes in a supply chain are divided into 2
categories depending on whether they are initiated in response to or in anticipation of customer
orders.
The push/pull view of the supply chain is useful when considering strategic decisions relating to
supply chain design, because = it categorizes processes based on whether they are initiated in
response to or in anticipation of customer orders.
The quality of life at selected facility locations has a significant impact on performance because = it
influences the work force available and their morale.
The relationship between the manufacturer and supplier during the procurement cycle is very similar
to the relationship between = distributor and manufacturer.
The relationship where increasing implied uncertainty from customers and supply sources is best
served by increasing responsiveness from the supply chain is known as the = zone of strategic fit.
The replenishment cycle is initiated when = none of the above
The replenishment cycle occurs at the = retailer/distributor interface.
The replenishment cycle occurs at the. = retailer/distributor interface.
The replenishment decision in a VMI system is owned by the = manufacturer.
The result of this application is fewer shipments, fuller pallets, increased pallets per truck, and a
reduction in freight. Collaboration is part of Ace's: = logistics information system
The role of sourcing planning and analysis is = to analyze spending across various suppliers and
component categories to identify opportunities for decreasing the total cost.
The sales typically measured by a manufacturer are = the quantity sold to distributors or retailers
(sell-in).
The second step in achieving strategic fit between competitive and supply chain strategies is to =
understand the supply chain and map it on the responsiveness spectrum.
The selection of suppliers, design of supplier contracts, product design collaboration, procurement of
material, and evaluation of supplier performance are a part of = sourcing
The set of business processes required to purchase goods and services is known as = sourcing.
The situation in which fluctuations in orders increase as they move up the supply chain from retailers
to wholesalers to manufacturers to suppliers is known as = the bullwhip effect.
The size of the cycle inventory is a result of the _______________ , _______________ , or
_______________ of material in large lots. = production, transportation, purchase
The skillful supply chain manager declared she would not only disaggregate cycle inventory, but she
would also aggregate safety inventory and use an inexpensive mode of transportation for
replenishment cycle inventory and fast mode when using safety inventory for her product that had =
high value and high demand
The steps taken to move and store a product from the supplier stage to a customer stage in the supply
chain are referred to as = distribution.
The successful categories of software in the evolution taking place in enterprise software will be =
those not focused on the supply chain macro processes.
The supply chain strategy category would include a decision about = how large the warehouse in
Kokomo should be.
The supply chain team does all of the following EXCEPT: = provides financing for distributors
The sustainability damage from landfill additives comes in which form? = Both A and B
The textbook defines three macro supply chain processes. Which of the following is not one of these?
= External supply chain management
The time horizon of the operation phase is typically = weekly or daily.
The total amount paid to various carriers for transporting products to customers is = Transportation
cost
the trucks but has contracted with UPS to have all of the trucks it uses in its deliveries to Papa John's
The two major types of facilities are = production sites and storage sites.
The uncertainty of customer demand for a product is the = demand uncertainty.
The uncertainty that exists due to the portion of demand that the supply chain is required to meet is
the = implied demand uncertainty.
The use of differential pricing over time or customer segments to maximize profits from a limited set
of supply chain assets is = revenue management
The value (also known as supply chain surplus) a supply chain generates is the different between
what the value of the final product is to the ________ and the ________ the entire supply chain
incurs in filling the customer’s request. = customer; costs
The value chain consists of direct and indirect activities. Which of the following is an indirect activity
for an enterprise? = Human Resources
The value chain in a company begins with = new product development.
The value of the final product may vary for each customer and can be estimated by the ________
amount the customer is willing to pay for it. = maximum
The value that potential customers place on product cost and delivery time determines a company's =
competitive strategy.
The viability of suppliers is especially important for suppliers who = provide mission critical products
that would be difficult to replace
The warehousing methodology in which all the different types of products needed to perform a
particular job or satisfy a particular type of customer are stored together is = job lot storage.
The warehousing methodology that uses a traditional warehouse to store all of one type of product
together is = stock keeping unit (SKU) storage.
There are 4 major SRM processes. Which of the following is not one of these? = Sell
There are eight critical business processes on which supply chain managers must focus. Which of the
following is one of those processes? = Returns management
There are eight critical business processes on which supply chain managers must focus. Which of the
These two companies have also set aggressive targets for their suppliers to improve overall supply
chain sustainability. = Walmart and IKEA
they are reading from the same script. = Supply chain integration
This company has not hit its targets for the use of renewable energy because these sources have
higher costs compared to other sources of energy. In general, the public has not been willing to pay
for the added costs. = Walmart
Through the use of automatic shipping notices, Ace Hardware is effective at removing unnecessary
costs from its supply chain. According to a VP of inventory for the retailer, "Information gathering
that used to take three or four phone calls now is available immediately." This is an example of the
use of _____ integration. = technology and planning
Through the use of automatic shipping notices, Ace Hardware is effective at removing unnecessary
To be accessible in a timely manner, information must be = B and C only
To be accurate, information must = A and C only (give the true picture of the state of the supply
chain./paint a picture of reality that is at least directionally correct.)
To be of the right kind, information needs to be = useful.
To create a win-win negotiation, the two parties must = identity more than one issue to negotiate
together to perform tasks as a single unified system, rather than as several individual companies
acting in isolation? = systems approach
Total logistics costs are a sum of the = inventory, transportation, and facility costs.
Total logistics costs for a supply chain network are a sum of = inventory, transportation, and facility
costs
Toyota's global complementation strategy = mandates that plants can produce vehicles for export to
markets that remain strong when the local market weakens.
Trading partners collaborate on store-level POS forecasts in = store replenishment collaboration.
Transforming forecasts into plans of activity to satisfy the projected demand is known as = aggregate
planning.
Transportation costs for _______________ are lower than the use of package carriers, especially if
using an existing delivery network. = manufacturer/distributor storage with customer pickup
Transportation plays a key role in every supply chain because = products are rarely produced and
consumed in the same location
Two key decisions to make when designing a distribution network = will the product be delivered to
the customer location or picked up from a prearranged site? will the product flow through an
intermediate location (intermediary)?
Under a cap and trade system, the price of emissions is = determined indirectly and can change.
Under a carbon tax system, the price of emissions is = the tax rate set directly by the regulatory
authority.
Understanding the impact of incentives on the actions of a supply chain partner is especially
important when = the third party's actions are not fully observable
Unilever, the Dutch-British consumer goods giant, has invested significant effort to help emerging
economies such as Brazil and India wrestle with poverty, water scarcity and climate change. The
company sees ________ of its sales and the majority of its growth coming from emerging economies.
= almost 50%
units is accomplished through _____ integration. = internal operations
Use IT systems to support decision making, not to make decisions because = management needs to be
able to make adjustments in the supply chain because the competitive and customer landscape
changes.
using ? = systems approach
Using a third party requires a firm to share demand information and in some cases intellectual
property. This risk would be described as = leakage of sensitive data and information
Using the output from supplier scoring and assessment to identify the appropriate suppliers is =
supplier selection
Vendor managed inventory and continuous replenishment systems both serve to = minimize
information distortion.
Volvo, working with FedEx, set up a warehouse in Memphis with a complete stock of truck parts. A
dealer needing a part for an emergency phones a toll-free number, and the part is delivered by FedEx
within 24 hours. This is an example of how manufacturers are using = outsourcing
Volvo, working with FedEx, set up a warehouse in Memphis with a complete stock of truck parts. A
W.W. Grainger and McMaster Carr stock products from more than a thousand manufacturers each to
sell to hundreds of thousands of customers and are sterling examples of = transportation aggregation
by storage intermediaries
W.W. Grainger holds ________ with ____ implied uncertainty in its decentralized locations close to
the customer. = fast-moving items; low
Walmart has worked to convert ________ at its stores from a cost to a profit generator. = waste
generation
Walmart implemented a web-based scorecard that evaluated the packaging of each product along nine
metrics which included = Both A and C (cube utilization, recycled content.)
Walmart reduced its energy consumption by = adding skylights for natural light.
Walmart reported that in California, over ________ percent of waste has been diverted from landfills
and made into something else that produces revenue. = 80
Weakness in the CRM process results in = all of the above
Webvan designed a supply chain with large warehouses in several major cities in the United States,
from which groceries were delivered to customer homes. They failed partly because of = higher labor
costs for picking orders.
What is the responsibility of a designated category leader? = The category leader manages
replenishment decisions for all suppliers.
What type of inventory is one of the most damaging from a sustainability perspective? = Landfill
When a customer purchases a book online from a company such as Amazon, which of the following
is NOT part of the typical supply chain operations? = Amazon's accounting department
When a firm places orders in lot sizes that are much larger than the lot sizes in whichdemand arises, =
variability of orders is magnified up the supply chain.
When all the different stages of a supply chain work toward the objective of maximizing total supply
chain profitability, rather than each stage devoting itself to its own profitability without considering
total supply chain profit, it is known as = supply chain coordination.
When designing a sourcing strategy, it is important for a firm to = be clear on the factors that have the
greatest influence on performance and target improvement on those areas.
When each firm in a supply chain has clarity in terms of knowing which firm is the leader, which are
the followers, and which responsibilities are assigned to each firm, _____ is (are) evident. =
specificity
When faced with a network design decision, the goal of a manager is to design a network that =
maximizes the firm's profits while satisfying customer needs in terms of demand and responsiveness.
When implementing a CPFR system, a fundamental aspect of successful collaboration is =
establishing cross functional, customer-specific teams.
When infrastructure is publicly owned, it is important to price usage to reflect = the marginal impact
on the cost to society
When Rick purchased tickets to a concert on the Internet, it was an example of: = electronic
distribution
When the Boeing Co. announced it would delay the introduction of its new 787, the CEO blamed the
problem on the company's supply chain. Airplanes use thousands of individual parts, and in an
attempt to relieve the smaller, individual supply chain quandary, Boeing used major suppliers to
construct large pieces of the plane. Boeing would have benefited from more _____ integration. =
supply chain
Where does distribution occur in the supply chain? = Between every pair of stages
Which business process ensures that firms in the supply chain have the resources they need? =
Manufacturing flow management
Which business process is based on the activities involved in customer data collection, forecasting of
future demand, synchronization of supply and demand by comparing production capacity to forecasts,
and the development of activities to "smooth out" demand? = Demand management
Which business process supports manufacturing flow by identifying and maintaining relationships
with highly valued suppliers? = Supplier relationship management
Which component of the supply chain decision-making framework would be used to reach the
performance level dictated by the supply chain strategy? = Supply chain structure
Which component of the supply chain decision-making framework would be established first? =
Competitive strategy
Which component of the supply chain decision-making framework would be established second? =
Supply chain strategy
Which component of the supply chain decision-making framework would be used to reach the
performance level dictated by the supply chain strategy? = Supply chain structure
Which contract increases the margin for the dealer as sales cross certain levels? = threshold contract
Which distribution network design is being used when inventory is not held by manufacturers at the
factories, but is held by distributors/retailers in intermediate warehouses and package carriers are
used to transport products from the intermediate location to the final customer? = Distributor storage
with package carrier delivery
Which distribution network design is being used when inventory is stored at the manufacturer or
distributor warehouse but customers place their orders online or on the phone and then come to
designated pickup points to collect their orders? = Manufacturer/distributor storage with customer
pickup
Which distribution network design is being used when inventory is stored locally at retail stores and
customers walk into the retail store or place an order online or on the phone and pick it up at the retail
store? = Retail storage with customer pickup
Which distribution network design is being used when the distributor/retailer delivers the product to
the customer's home instead of using a package carrier? = Distributor storage with last mile delivery
Which distribution network design is similar to pure drop-shipping, except that pieces of the order
coming from different locations are combined so that the customer gets a single delivery? =
Manufacturer storage with direct shipping and in-transit merge
Which distribution network is also referred to as drop-shipping with product delivered directly from
the manufacturer to the customer location? = Manufacturer storage with direct shipping
Which element in the value chain is responsible for transforming inputs into outputs? = Operations
Which method would serve to reduce the information distortion in a supply chain consisting of a
fabricator, manufacturer, supplier, and a retailer? = Make the manufacturer responsible for all
decisions regarding product inventories at the retailer.
Which mode of transportation is the dominant form of freight transportation? = Truck
Which mode of transportation is the least expensive? = Water
Which mode of transportation is the most expensive? = Air
Which mode of transportation is used primarily for petroleum and natural gas? = Pipeline
Which of the following are key components of information that must be analyzed to increase
efficiency and improve effectiveness in a supply chain? = Forecasting and aggregate planning
Which of the following are key components of transportation decisions when designing and operating
a supply chain? = all of the above
Which of the following are technologies that share and analyze information in the supply chain? = all
of the above (Mode of transportation)
Which of the following are technologies that share and analyze information in the supply chain? =
Internet
Which of the following customer needs will cause implied uncertainty of demand to increase? = Lead
time decreases
Which of the following defines the set of customer needs that a company seeks to satisfy through its
products and services? = Competitive strategy
Which of the following describes a disadvantage associated with water transportation? = Lack of
speed
Which of the following determines the nature of procurement of raw materials, transportation of
materials to and from the company, manufacture of the product or operation to provide the service,
and distribution of the product to the customer along with follow-up service? = Supply chain strategy
Which of the following is a characteristic of a facility with excess capacity? = Would be very flexible
and respond to wide swings in the demands placed on it
Which of the following is a disadvantage of distributor storage with carrier delivery? = Product
variety is lower than with manufacturer storage.
Which of the following is a disadvantage of distributor storage with last mile delivery? =
Transportation cost is higher than any other distribution option.
Which of the following is a disadvantage of manufacturer/distributor storage with customer pickup?
= Customer experience is lower than other options because of the lack of home delivery.
Which of the following is a disadvantage of retail storage with customer pickup? = Inventory cost is
higher than all other options.
Which of the following is a key principle of supply chain management that means multiple firms
work together to perform tasks as a single unified system rather than as several individual companies
acting in isolation? = Systems approach
Which of the following is a key principle of supply chain management that means multiple firms
work
Which of the following is a key process under CRM? = Order Management
Which of the following is a key process under ISCM? = Supply Planning
Which of the following is a major SRM process? = Design Collaboration
Which of the following is a member of a supply chain team that moves just-picked cotton to finished
clothing and then to the consumer of that clothing? = All of the choices
Which of the following is a member of a supply chain team that moves just-picked cotton to finished
Which of the following is a traditional logistics driver of sourcing? = Inventory
Which of the following is an advantage of distributor storage with last mile delivery? = Response
time is very quick ranging from same day to next day delivery.
Which of the following is an advantage of distributor storage with carrier delivery? = Order
visibility for the customer is easier than with manufacturer storage.
Which of the following is an advantage of distributor storage with last mile delivery? = Response
time is very quick ranging from same day to next day delivery.
Which of the following is an advantage of manufacturer storage with direct shipping? = Supply
chains save on the fixed cost of facilities, because the need for other warehousing space in the supply
chain has been eliminated.
Which of the following is an advantage of manufacturer/distributor storage with customer pickup? =
Transportation cost is lower than the use of package carriers, especially if using an existing delivery
network.
Which of the following is an advantage of retail storage with customer pickup? = Transportation cost
is lower than all other options.
Which of the following is an example of one of the six types of integration that are sought by firms
interested in providing top-level service to their customers? = Internal operations integration
Which of the following is not a characteristic information must have to be useful when making
supply chain decisions? = Information must be interesting.
Which of the following is not a component of facilities decisions? = Forecasting methodology
Which of the following is not a cycle in the supply chain cycle view? = Analysis cycle
Which of the following is not a cycle in the supply chain cycle view? = All of the above are part of
the supply chain cycle view.
Which of the following is not a factor determining the success of software firms focused on a macro
process? = Color and images on working screens
Which of the following is not a key process under CRM? = Demand Planning
Which of the following is not a key process under ISCM? = Supply Collaboration
Which of the following is not a major driver of supply chain performance? = All of the above are
major drivers of supply chain performance.
Which of the following is not a major driver of supply chain performance? = Customers
Which of the following is not a major SRM process? = Supply Planning
Which of the following is not a process in the customer order cycle? = All are processes in the
customer order cycle.
Which of the following is not a stage within a typical supply chain? = All of the above are stages
within a typical supply chain.
Which of the following is not a stage within a typical supply chain? = Merchandisers
Which of the following is not a warehousing methodology? = Warehouse unit storage
Which of the following is not an accurate statement about pull processes? = May also be referred to
as speculative processes.
Which of the following is not an accurate statement about push processes? = May also be referred to
as reactive processes.
Which of the following is not an issue companies need to consider in facility location decisions? =
Product development
Which of the following is not an issue companies need to consider in facility location decisions? =
All of the above are issues companies need to consider in facility location decisions.
Which of the following is not listed as an important trend that will affect IT in the supply chain? =
Improved speed of hardware and software
Which of the following is not one of the supply chain macro processes? = Transaction Management
Foundation (TMF)
Which of the following is not true concerning information supporting supply chain decisions? =
Information needs to be kept confidential
Which of the following is the fastest method of transportation? = Air
Which of the following is the first phase in the design of a global supply chain network? = Define a
supply chain strategy
Which of the following is the inventory control system that manages the replenishment of raw
materials, supplies, and components from the supplier to the manufacturer? = Materials requirement
planning (MRP)
Which of the following moves inventory into, within, and out of a warehouse? = (A )materials-
handling system
Which of the following provides the technological link connecting all of the logistics components of
the supply chain? = Logistics information system
Which of the following provides the technological link connecting all of the logistics components of
Which of the following specifies the portfolio of new products that a company will try to develop? =
Product development strategy
Which of the following statements about pull processes is accurate? =( They )may also be referred to
as reactive processes.
Which of the following statements about push processes is accurate? = (They) may also be referred
to as speculative processes.
Which of the following statements concerning decisions regarding location of facilities is false? = All
of these statements are true.
Which of the following technology is an automatic identification method that works with scanned bar
codes to identify products? = radio-frequency identification (RFID)
Which of the following transportation modes can most easily determine the location of a package en
route between shipper and receiver? = Air
Which of the following transportation modes can most easily determine the location of a package en
Which of the following uses transportation to minimize the total cost (transportation, inventory,
information, and facility)? = The shipper
Which of the following would be a characteristic of a facility with little excess capacity? = Will likely
be more efficient per unit of product it produces
Which of the following would be a demand and supply characteristic toward the beginning stages of a
product's life cycle? = Product availability is crucial to capturing the market.
Which of the following would be a disadvantage of manufacturer storage with direct shipping? =
Response times tend to be large because the order has to be transmitted from the retailer to the
manufacturer and shipping distances are on average longer from the manufacturer’s centralized site.
Which of the following would not be the result of a poor/inappropriate distribution network? = High
profitability
Which of these changes will serve to break order synchronization? = Have each customer order on
their date, with 20% of your customers ordering each day of the week.
Which of these costs was higher for Netflix than for their vanquished competitor, Blockbuster? =
Transportation
Which of these examples ripped from the headlines of business periodicals is most accurate? =
Netflix has two content delivery systems that are inexpensive to operate.
Which of these has the broader range? = Intercompany scope
Which of these services facilitates the function of the value chain but is not considered a core element
of the supply chain? = Information Technology
Which of these statements about Dell's supply chain is best? = Dell's initial success was largely
driven by their Assembly→Customer supply chain linkage.
Which of these statements about distribution networks is best? = Customers are willing to have a
relationship built around high value, specialized products.
Which one of these statements about use fees for a highway is best? = A flat rate results in higher use
by most individuals
Which sequence of stages is typical for product flow in a supply chain? = Supplier → Manufacturer
→ Distributor
Which set of supply chain flows is correctly described? = Information and product both flow
upstream and downstream in a supply chain.
Which statement about supply chain is best? = flows in a supply chain may be managed by an
intermediary a supply chain features a constant flow of? = information, product, and funds
Which statement about supply chains is best? = Flows in a supply chain may be managed by an
intermediary.
Which transportation network design option establishes an extra layer between suppliers and retailers
to store inventory and to serve as a transfer location? = All shipments via central DC
Which transportation network design option has the elimination of intermediate warehouses and its
simplicity of operation and coordination as its major advantages? = Direct shipping network
Which transportation network design option uses a combination of other options to reduce the cost
and improve responsiveness of the supply chain? = Tailored network
Which type of contract is used when agents act on behalf of a principal and the dealer's margin is set
to be the same as the supply chain margin, and the dealer exerts the right amount of effort? = two-part
tariffs
Which type of integration implies the performance assessment of the supply chain should be taken as
a whole while also holding each member of the supply chain accountable for meeting its own goals =
Measurement
Who does a supply chain do? = A supply chain aims to match supply and demand, profitably, for
products and services.
With drop-shipping, _______________ allows a high level of product variety to be available to the
customer because every product at the manufacturer can be made available to the customer without
any limited imposed by _______________ . = manufacturer storage; shelf space
With drop-shipping, _______________ is expensive and difficult to implement = retainability
With drop-shipping, customer experience is _______________ in terms go home delivery but can
suffer if order from several manufacturers is sent as _______________ . = good; partial shipments
With drop-shipping, time to market is _______________ with the product available as soon as the
first unit is produced. = fast
With in-transit merge, the investment in information infrastructure is _______________ than that for
drop-shipping = higher
With the ________ view, firms attempt to align all operations within a function. In this view, all
supply chain functions including sourcing, manufacturing, warehousing, and transportation must
align their strategy to minimize total functional cost. = Intraoperation scope
With the _______________ in lot size, comes an increase in __________ . = increase; carrying costs
within 24 hours. This is an example of how manufacturers are using: = outsourcing
work processes and thereby provide smooth, high-quality customer experiences. = Internal operations
work together to align supply and demand throughout the supply chain? = demand management
worked closely with a medical device company, developing a combination scalpel and stapler that
Zara sources basic products such as white t-shirts from low cost countries because demand is
predictable. For trendy products for which demand is unpredictable, Zara sources from company-
owned higher cost factories in Europe. For the predictable demand, Zara strives for ________ and for
the unpredictable demand, Zara hopes to achieve ________. = efficiency, flexibility
Zara's supply chain strategy = results in supply more closely matching customer demand.
ZuTech makes sensitive monitors for measuring exposure to hazardous materials. ZuTech has
suffered substantial losses when moving products from the assembly line to the warehouse and
shipping docks. ZuTech should consider reducing the number of times an item is moved in the
warehouse by installing a(n): = materials-handling system