Exam 15: Supply Chain Management

One of the biggest ethical risks in supply chain management is that the __________ supply chain member tends to be the one that suffers the blame and/or lost goodwill when something goes wrong.

Which of the following is an advantage of e-business? (I)reduction of transaction costs (II)shortened supply chain response time (III)greater customer loyalty

The importance of purchasing relates only to the cost of parts and materials purchased, which is often 60 percent or more of the cost of finished goods.

A company's supply chain involves the flow of materials and information from suppliers, through production, to the end users.

Which of the following is not a benefit of centralized purchasing?

Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.

Gatekeeping contracts with 3PLs to minimize the cost of shipping returned goods.

Traffic management refers to truck movement within our parking areas.

Last quarter, a retailer sold 8,000 T-shirts, 7,000 of which were sold directly from on-hand inventory. This retailer's ________ was 88 percent.

RFID eliminates the need for manual counting and bar-code scanning of goods at receiving docks.

One of the major reasons for a company to adopt third-party logistics is to concentrate on one's core business.

The activity which begins with a request from within the organization is

The goal of supply chain management is to synchronize supply and demand of all of the organizations that are part of the chain.

Forming strategic partnerships is beneficial for two or more business organizations that have the same products or services.

A 30 percent reduction in product and service variety will not affect the efficiency of a supply chain.

Which of the following is part of the purchasing cycle? (I)Purchasing selects a supplier. (II)Orders from vendors are received. (III)Purchasing receives a requisition.

Which of the following is a barrier to the integration of separate organizations in the supply chain? (I)conflicting objectives of the companies in the chain (II)different capacity levels of the companies in the chain (III)reluctance of the organizations in the chain to allow other organizations access to their data

Bullwhip effect refers to a phenomenon in which demand variations that exist at the customer end of the supply chain are magnified as orders are generated back through the supply chain.

Which of the following is not a goal of supply chain management?

One disadvantage to RFID is that it requires a clear "line of sight" to operate.