Test Database

Chapter 1 – Introduction to Supply Chain Management

True or False

1. A supply chain could be more accurately described as a supply network or supply web.a. Trueb. False

2. The primary goal of supply chain management is to achieve high levels of customer serviceability while simultaneously optimizing total supply chain costs.a. Trueb. False

3. In today’s business environment, vertical supply chain have replaced the more traditional horizontal strategy.a. Trueb. False

4. A key consideration in lean fast-flow order response is have buffer inventories in the supply chain.a. Trueb. False

5. An important component when developing supply chain channel alignment is to apply the ecosystem concept.a. Trueb. False

6. CPFR can be considered a supply chain integrative technology.a. Trueb. False

7. An efficient supply chain strategy focuses on being able to quickly respond to on-demand requirements.a. Trueb. False

8. A distributor following a lean supply chain strategy might use a global trade management (GTM) software system.a. True

b. False

9. In a demand-driven supply chain strategy, ATP/CTP would be used for order promising.

a. Trueb. False

10. A supply chain at maturity level 2 (inter-channel logistics functions) would be characterized as pursuing supply chain strategic collaboration.a. Trueb. False

Multiple Choice

11. The principle role of supply chain management (SCM) is to:a. create unique sources of customer value through the creation of

collaborative partnershipsb. efficient deploy inventory, warehouse, and transportation functionsc. enable companies to satisfy the day-to-day product and service

requirements of their supply chainsd. obtain, produce, and distribute material and product in the proper place

and in the proper quantities

12. The increased scale of global supply chains has had which of the following effects?a. use of advanced technology to reduce the number of logistics handoffs in

global supply chains b. supply chain management (SCM) has become a concern of the

CEO/board of directorsc. landed cost has virtually been eliminated as a concern for SCMd. the bullwhip effect has been substantially reduced

13. How does greater supply chain integration affect demand management?a. by reducing the need to retool product lines constantlyb. by increasing the number of response channels available to customersc. by standardizing pricing across channelsd. by increasing e-commerce

14. A method to reduce transportation costs would be toa. increase the shipment of products to customers b. increase the number of shipping warehousesc. increase the use of small parcel carriersd. aggregate inbound shipments

15. Which of the following is not an objective of logistics performance? a. high levels of service and inventory availability

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b. high levels of service by increasing the number of channel warehousesc. using transportation that traverses longer distances with larger loadsd. increasing reverse logistics functions

16. As supply chain management (SCM) emerged, companies became aware that success centered ona. the relationships between channel membersb. the merger of information technologiesc. the alignment of logistics functionsd. the recognition of a common sharing of channel profitability

17. Channel node congruence would be an essential goal of which of the following supply chain competencies?a. customer management b. operations excellencec. channel alignmentd. integrative technologies

18. Which of the following is an important function of supply chain customer management?a. common channel performance metricsb. strategic sourcingc. customer experience management (CEM)d. networked channel planning

19. Technically, which combinations of companies is sufficient to constitute a supply chain?a. any network of suppliersb. two suppliers and a customerc. a supplier, a producer, and a customerd. two manufacturers and a customer

20. Which of the following processes is part of the SCOR framework?a. customer relationship managementb. designc. marketingd. return

21. Which of the following is the primary benefit of a vertical supply chain strategy?a. control of operationsb. multi-connectivity along the supply channelc. economies of scale at each supply chain noded. focus on core functions

22. Which of the following is a critical supply chain management competency?

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a. channel alignment b. physical distribution managementc. materials managementd. transportation integration

23. Maintaining a strategy of trading partner dyads risks decay of?a. communicationb. leveraging resource synergiesc. economies of scaled. focus on the customer

24. Without strategic and operational alignment, the supply chain will havea. a poor control of product costsb. poorly constructed marketing programs that miss customer demandc. a lack of an integrated logistics plan that will damage customer serviced. weak links that will break under the pressure of demand and needed

competencies

25. The most important benefit of supply chain information technologies isa. to provide better control over transaction functionsb. to provide transparency to information occurring in the supply chainc. to provide companies with a way to produce the most competitive

productsd. to provide “big data” information about the marketplace

26. The component of the supply chain composed of networks of suppliers supplying the business with production inventories is termed thea. value delivery networkb. process value chainc. virtual supply channeld. supply and delivery chain

27. A company that follows a total cost management focus would most likely have the following type of logistics organizational design:a. decentralized logistics functionsb. close integration of logistics with other business functions c. centralized logistics functionsd. a detailed logistics strategy

28. A concern with supply chain environmental sustainability can be said to have emerged froma. lean principles and conceptsb. a focus on six-sigma quality improvement conceptsc. international governments’ concern with waste and recyclingd. a growing necessity to reduce risk in the supply chain

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29. A critical competency of demand-driven supply networks (DDSN) is a. supply flexibilityb. delivery flexibilityc. demand/supply visibilityd. channel adaptability

30. In the supply chain maturity model, a supply chain characterized by a concern with supply chain strategic collaboration would be at which maturity level?a. internal channel functionsb. inter-channel logistics functionsc. inter-channel value generationd. on-demand value interoperability

Answer Key1. T2. T3. F4. F5. T6. T7. F8. T9. T10. F11. a12. b13. b14. d15. b16. a17. c18. c19. c20. d21. a22. a23. b24. d25. b26. b 27. c28. a29. c30. c