Type:
Test Bank
Supply Chain Management A Resource: Global Perspective Edition:
1st Edition
Author(s):
Nada R. Sanders
File: ch01, Chapter 1: Introduction to Supply Chain Management
Multiple Choice
1. a) b) c) d) e)
SCM involves the design and management of three primary flows: Products, information, funds Suppliers, customers, manufacturers Distributors, retailers, customers Logistics, operations, marketing Responsiveness, reliability, relationship management
Ans: a Response: page 3 Level: Easy
2. a) b) c) d) e)
Stages of supply chain management include suppliers, producers, distributors, retailers, and: Financial flows Customers Reverse logistics Sustainability None of the above
Ans: b Response: page 4 Level: Medium
3. a) b) c) d) e)
Three overriding SCM activities within and between firms include: Marketing, sourcing, logistics Suppliers, customers, manufacturers Products, information, funds Coordination, information sharing, collaboration Responsiveness, reliability, relationship management
Ans: d Response: page 6-7 Level: Medium
4. The growing number and acceptance of customer returns has created an area of SCM called:
a) b) c) d) e)
Order fulfillment Distribution management Reverse logistics Sustainability None of the above
Ans: c Response: page 7 Level: Easy
5. a) b) c) d) e)
A result of effective information flow through the supply chain is: Improved coordination and collaboration between supply chain partners Reduction in the amount of inventory across the supply chain Reduction of the bullwhip effect Compression of the supply chain from a time standpoint All of the above
Ans: e Response: page 7 Level: Medium
6. Distortion and inaccurate information as it moves from the retailer back through the supply chain is known as: a) Early supplier involvement b) Bullwhip effect c) Supply chain compression d) Reverse logistics e) None of the above Ans: b Response: page 8 Level: Easy
7. a) b) c) d) e)
Factors driving the growth of SCM include: Better intra-organizational coordination Customer sophistication Early supplier involvement Reverse logistics capabilities Improved relationship management between firms
Ans: b Response: page 9
Level: Medium
8. An example of intra-organizational integration is: a) Marketing sharing promotion plans with operations b) Operations informing logistics of production plans c) Independent retailer sharing point-of-sale data with manufacturer d) Supplier informing manufacturer of a component defect e) a and b Ans: e Response: page 12 Level: Easy
9. a) b) c) d) e)
The primary role of marketing in an organization is to link the organization to its: Suppliers Operations Customers Finance None of the above
Ans: c Response: page 13 Level: Easy
10. Challenges to developing a systems thinking viewpoint in an organization include: a) Competing goals and incentives b) Segmented organizational structure c) Lack of information sharing d) ‘Siloed’ decision-making e) All of the above Ans: e Response: page 13 Level: Medium
11. Why have partnerships and alliances across enterprises become so important to SCM? a) Technology is expensive b) Companies want external supply chain partners to hold more risk c) “Early supplier involvement” is simple to implement d) Collaboration enables long-term viability and success in a competitive global environment
e) a and c Ans: d Response: page 14 Level: Medium
12. How has greater customer affluence increased the importance of SCM? a) Customers demand higher quality and better service b) The internet empowered consumers with information c) Customers wanted more standardized, mass-produced products d) Customers wanted fewer product choices e) a and b Ans: d Response: page 17 Level: Medium
13. Characteristics of a competitive supply chain include: a) Outsourcing, reliability, technology b) Globalization, innovation, reliability c) Relationship management, finance, early supplier involvement d) Affluent customers, technology, transportation e) Reliability, relationship management, responsiveness Ans: e Response: page 18-19 Level: Medium
14. Supply chain visibility increases supply chain reliability through: a) Shared understanding of real-time demand data by all supply chain partners b) Increasing variability across the supply chain c) Improved relationship management d) Understanding customer needs more quickly e) Putting more pressure on suppliers Ans: a Response: page 18 Level: Medium
15. The globalization trend presents numerous benefits to SCM including:
a) b) c) d) e)
Removes distance barrier between markets/consumers Consumers have greater product choices More supplier choices Cost savings All of the above
Ans: e Response: page 20 Level: Easy
16. Examples of ‘upstream’ players in a supply chain include: a) Suppliers b) Customers c) Retailers d) Distribution centers e) Outbound transportation providers Ans: a Response: page 4-5 Level: Easy
17. Postponement is an effective strategy for some firms because it: a) Is relatively simple and inexpensive to implement b) Allows for local product customization c) Increases supplier involvement d) Decreases the need for relationship management e) Requires little technology Ans: b Response: page 23 Level: Difficult
18. Necessary efforts to improve supply chain security present new challenges to firms including: a) Regulation/compliance requirements b) Increased transport time and costs c) Shorter lead times d) Decreased need for relationship management e) a and b Ans: e Response: page 24 Level: Medium
19. Sustainable/green initiatives can be beneficial to firms in the following ways: a) Enhance supplier relationships/supply availability b) Increased regulation/compliance requirements c) Create efficiencies and cost savings d) Decreases need for relationship management e) a and c Ans: e Response: page 25 Level: Medium
20. The primary difference between logistics and SCM is: a) SCM is a more popular term b) Logistics is more strategic in nature c) There is no difference d) SCM takes a more strategic and managerial focus e) Logistics is more complex Ans: d Response: page 15 Level: Medium
21. An accelerated flow of funds through the supply chain can improve a firm’s profitability by: a) Increasing interest rates b) Customers cannot be invoiced more quickly c) Creating a positive cash flow provides financial opportunity d) Increasing working capital needs e) None of the above Ans: c Response: page 7 Level: Medium
22. Examples of ‘downstream’ players in a supply chain include: a) Suppliers b) Manufacturers c) Retailers d) Inbound transportation providers e) Accountants Ans: c