Question 1

One disadvantage of the use of RFID tags is increased inventory management costs.

Accepted Answer

A) True 
 B)False

Question 2

The six criteria important in selecting a transportation mode are relative cost,transit time,reliability,capability,accessibility,and traceability.

Accepted Answer

A) True 
 B)False

Question 3

All of the following are types of integration sought by firms interested in providing top-level service to customers EXCEPT:

Accepted Answer

A)  relationship integration 
B)  measurement integration 
C)  customer integration 
D)  production integration 
E)  technology and planning integration

Question 4

A successful apparel company found that significant demand existed among buyers who needed to place a number of small orders rather than a few big orders.The company most likely succeeded because of the use of agile supply chain management strategies.

Accepted Answer

A) True 
 B)False

Question 5

Fishy Business
DNA testing has revealed that sushi bar customers are not always getting what they pay for. Scientists at the American Museum of Natural History tested fish from 31 sushi bars and found that the tuna coveted by many diners is often a cheaper substitute, a banned fish, or an endangered species. This could be the result of an honest mistake in the supply chain, or it could be a deliberate attempt to deceive buyers. However, researchers have uncovered a DNA 'barcode' that can accurately identify the type of fish. While still a ways off, the scientist who developed the tuna DNA barcode envisions a small device that can provide instantaneous species identification, which will result in restaurants ultimately providing what their customers are demanding and paying for.
-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:

Accepted Answer

A)  yield management 
B)  channel power 
C)  materials handling 
D)  supply chain management 
E)  physical distribution

Question 6

All of the following accurately describe supply chain management EXCEPT:

Accepted Answer

A)  physical flow process 
B)  customer-driven 
C)  provides enhanced customer and economic value 
D)  plays the role of communicator of customer demand 
E)  relies on a "push" strategy

Question 7

When Rick purchased tickets to a concert on the Internet,it was an example of:

Accepted Answer

A)  single-sourcing distribution 
B)  one-way channelization 
C)  electronic distribution 
D)  mass customization 
E)  aggregated marketing

Question 8

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.

Accepted Answer

A)  channel 
B)  supply chain 
C)  MRP 
D)  functional 
E)  tactical distribution

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

_____ are standard measures that can be used repeatedly to assess performance on a supply-chain related process.

Accepted Answer

A)  Metrics 
B)  Assessment programs 
C)  Proactive gauges 
D)  Qualifiers 
E)  Situational appraisals

Question 11

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.

Accepted Answer

A)  manufacturing flow management 
B)  customer service management 
C)  product development and commercialization 
D)  order fulfillment 
E)  demand management

Question 12

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 resulted in less traumatic procedures,and quicker patient recoveries.This is an example of which of the eight critical processes performed by supply chain managers?

Accepted Answer

A)  supplier relationship management 
B)  customer service management 
C)  product development and commercialization 
D)  order fulfillment 
E)  demand management

Question 13

Arrow Electronics serves as a supply channel partner for more than 600 suppliers and 150,000 original equipment manufacturers,contract manufacturers,and commercial customers.Arrow works with its supply chain partners to eliminate waste in whatever form it may be found.Which of the following supply chain strategies has Arrow embraced in order to help its customers and suppliers?

Accepted Answer

A)  lean supply chain management 
B)  reactive supply chain management 
C)  agile supply chain management 
D)  proactive supply chain management 
E)  Leagile supply chain management

Question 14

General Mills has reengineered its packaging.After doing so,_____ metrics,as defined by the Balanced Scorecard Approach,revealed the company had saved 890,000 pounds of paper fiber and eliminated 500 trucks from the road the first year the new packaging was on store shelves.

Accepted Answer

A)  innovation 
B)  financial 
C)  commercialization 
D)  integration 
E)  customer

Question 15

The amount of time between order placement,receipt of the customer's payment,and order shipment is known as the:

Accepted Answer

A)  3PL cycle 
B)  product life cycle 
C)  purchase cycle 
D)  order-to-cash cycle 
E)  float

Question 16

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:

Accepted Answer

A)  outsourcing 
B)  cross-docking 
C)  disintermediation 
D)  piggybacking 
E)  an integrated demand channel

Question 17

Whirlpool and Lowe's
Every week, Whirlpool and Lowe's have an on-line conference call to discuss what appliances are selling in the stores, and what capacity Whirlpool has to make product. Often, the discussion revolves around a particular model that is selling at a higher than expected rate in Lowe's. This often results in Whirlpool quickly flexing its supply chain to make more of the high-selling product and delivering it to Lowe's customers. However, sometimes the answer is that Whirlpool and/or its suppliers do not have the capacity to make more of the product in question. It then becomes a question of demand shaping for Lowe's. What promotions, in-store displays, sales incentives, etc. can Lowe's implement to shift demand from the capacity-constrained model to one that the supply chain has more capacity to deliver? In this way, Lowe's, Whirlpool, and their suppliers manage supply and also demand.
-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):

Accepted Answer

A)  third party logistics firm (3PL) 
B)  drop shipper 
C)  mediator 
D)  independent agent 
E)  interloper

Question 18

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?

Accepted Answer

A)  customer relationship management 
B)  returns management 
C)  product development and commercialization 
D)  order fulfillment 
E)  demand management

Question 19

All of the following are criteria used to choose a mode of transportation EXCEPT:

Accepted Answer

A)  diversity 
B)  cost 
C)  transit time 
D)  reliability 
E)  traceability

Question 20

Fishy Business
DNA testing has revealed that sushi bar customers are not always getting what they pay for. Scientists at the American Museum of Natural History tested fish from 31 sushi bars and found that the tuna coveted by many diners is often a cheaper substitute, a banned fish, or an endangered species. This could be the result of an honest mistake in the supply chain, or it could be a deliberate attempt to deceive buyers. However, researchers have uncovered a DNA 'barcode' that can accurately identify the type of fish. While still a ways off, the scientist who developed the tuna DNA barcode envisions a small device that can provide instantaneous species identification, which will result in restaurants ultimately providing what their customers are demanding and paying for.
-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 they say they are providing?

Accepted Answer

A)  benchmark integration 
B)  measurement integration 
C)  planning integration 
D)  management integration 
E)  Leagile integration

Exam 14: Supply Chain Management

One disadvantage of the use of RFID tags is increased inventory management costs.

The six criteria important in selecting a transportation mode are relative cost,transit time,reliability,capability,accessibility,and traceability.

All of the following are types of integration sought by firms interested in providing top-level service to customers EXCEPT:

A successful apparel company found that significant demand existed among buyers who needed to place a number of small orders rather than a few big orders.The company most likely succeeded because of the use of agile supply chain management strategies.

All of the following accurately describe supply chain management EXCEPT:

When Rick purchased tickets to a concert on the Internet,it was an example of:

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

_____ are standard measures that can be used repeatedly to assess performance on a supply-chain related process.

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.

General Mills has reengineered its packaging.After doing so,_____ metrics,as defined by the Balanced Scorecard Approach,revealed the company had saved 890,000 pounds of paper fiber and eliminated 500 trucks from the road the first year the new packaging was on store shelves.

The amount of time between order placement,receipt of the customer's payment,and order shipment is known as the:

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:

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?

All of the following are criteria used to choose a mode of transportation EXCEPT: