SCM involves the design and management of three primary flows:

1. Products, information, funds
2. Suppliers, customers, manufacturers
3. Distributors, retailers, customers
4. Logistics, operations, marketing
5. Responsiveness, reliability, relationship management

1

Stages of supply chain management include suppliers, producers, distributors, retailers, and:

1. Financial flows
2. Customers
3. Reverse logistics
4. Sustainability
5. None of the above

2

Three overriding SCM activities within and between firms include:

1. Marketing, sourcing, logistics
2. Suppliers, customers, manufacturers
3. Products, information, funds
4. Coordination, information sharing, collaboration
5. Responsiveness, reliability, relationship management

4

The growing number and acceptance of customer returns has created an area of SCM called:

1. Order fulfillment
2. Distribution management
3. Reverse logistics
4. Sustainability

None of the above

3

A result of effective information flow through the supply chain is:

1. Improved coordination and collaboration between supply chain partners
2. Reduction in the amount of inventory across the supply chain
3. Reduction of the bullwhip effect
4. Compression of the supply chain from a time standpoint
5. All of the above

5

Distortion and inaccurate information as it moves from the retailer back through the supply chain is known as:

1. Early supplier involvement
2. Bullwhip effect
3. Supply chain compression
4. Reverse logistics
5. None of the above

2

Factors driving the growth of SCM include:

1. Better intra-organizational coordination
2. Customer sophistication
3. Early supplier involvement
4. Reverse logistics capabilities
5. Improved relationship management between firms

2

An example of intra-organizational integration is:

1. Marketing sharing promotion plans with operations
2. Operations informing logistics of production plans
3. Independent retailer sharing point-of-sale data with manufacturer
4. Supplier informing manufacturer of a component defect
5. a and b

5

The primary role of marketing in an organization is to link the organization to its:

1. Suppliers
2. Operations
3. Customers
4. Finance
5. None of the above

3

Challenges to developing a systems thinking viewpoint in an organization include:

1. Competing goals and incentives
2. Segmented organizational structure
3. Lack of information sharing
4. ‘Siloed’ decision-making
5. All of the above

5

Why have partnerships and alliances across enterprises become so important to SCM?

1. Technology is expensive
2. Companies want external supply chain partners to hold more risk
3. “Early supplier involvement” is simple to implement
4. Collaboration enables long-term viability and success in a competitive global environment

a and c

4

How has greater customer affluence increased the importance of SCM?

1. Customers demand higher quality and better service
2. The internet empowered consumers with information
3. Customers wanted more standardized, mass-produced products
4. Customers wanted fewer product choices
5. a and b

4

Characteristics of a competitive supply chain include:

1. Outsourcing, reliability, technology
2. Globalization, innovation, reliability
3. Relationship management, finance, early supplier involvement
4. Affluent customers, technology, transportation
5. Reliability, relationship management, responsiveness

5

Supply chain visibility increases supply chain reliability through:

1. Shared understanding of real-time demand data by all supply chain partners
2. Increasing variability across the supply chain
3. Improved relationship management
4. Understanding customer needs more quickly
5. Putting more pressure on suppliers

1

The globalization trend presents numerous benefits to SCM including:

1. Removes distance barrier between markets/consumers
2. Consumers have greater product choices
3. More supplier choices
4. Cost savings
5. All of the above

5

Examples of ‘upstream’ players in a supply chain include:

1. Suppliers
2. Customers
3. Retailers
4. Distribution centers
5. Outbound transportation provide

1

Postponement is an effective strategy for some firms because it:

1. Is relatively simple and inexpensive to implement
2. Allows for local product customization
3. Increases supplier involvement
4. Decreases the need for relationship management
5. Requires little technology

2

Necessary efforts to improve supply chain security present new challenges to firms including:

1. Regulation/compliance requirements
2. Increased transport time and costs
3. Shorter lead times
4. Decreased need for relationship management

a and b

5

Sustainable/green initiatives can be beneficial to firms in the following ways:

1. Enhance supplier relationships/supply availability
2. Increased regulation/compliance requirements
3. Create efficiencies and cost savings
4. Decreases need for relationship management
5. a and c

5

The primary difference between logistics and SCM is:

1. SCM is a more popular term
2. Logistics is more strategic in nature
3. There is no difference
4. SCM takes a more strategic and managerial focus

Logistics is more complex

4

An accelerated flow of funds through the supply chain can improve a firm’s profitability by:

1. Increasing interest rates
2. Customers cannot be invoiced more quickly
3. Creating a positive cash flow provides financial opportunity
4. Increasing working capital needs

None of the above

3

Examples of ‘downstream’ players in a supply chain include:

1. Suppliers
2. Manufacturers
3. Retailers
4. Inbound transportation providers

Accountants

3

A demand-driven supply chain is focused on which SCM characteristic:

1. Relationship management
2. Collaboration
3. Coordination
4. Responsiveness

Risk management

4

When a firm is focusing on its core competencies, it is engaging in which trend:

1. Sustainability
2. Financial supply chain
3. Lean initiatives
4. Risk management

Outsourcing

5

Key trends in SCM include:

1. Sustainability
2. Risk management
3. Reverse logistics
4. Early supplier involvement

a and b

5

A supply chain is defined as all the activities that occur within a firm to produce a product or service

false

1. The flows of products, information, and funds, are all important in an effective supply chain.

true

1. The best way to think about supply chains is as a linear chain of players from suppliers to customers

false

1. An example of an ‘upstream’ part of the supply chain is distribution of finished goods to the retailer.

false

1. An example of an ‘upstream’ part of the supply chain is transportation of raw materials to the manufacturer.

true

1. First tier suppliers are always more important to a manufacturer than second tier suppliers.

false

1. Coordination involves the effective movement of goods and services through the supply chain; collaboration involves the effective relationships between supply chain members.

true

1. It could be argued that, of the three overriding SCM activities, information sharing is the enabler of the other two activities.

true

1. One of the most effective ways to combat the bullwhip effect is for firms to share point-of-sale data from retailers throughout the supply chain

true

1. The only objective of a supply chain is to deliver a product or service at the lowest cost possible.

false

1. SCM has grown rapidly as a business focus since the 1990s primarily because of globalization.

true

1. Outsourcing is a required strategy and is a characteristic of all competitive supply chains.

false

1. Becoming a demand-driven supply chain means that the company is focused on responsiveness.

true

1. Outsourcing is a trend that is only suitable for manufacturing businesses.

false

1. A core competency is an activity within a firm that provides value or competitive advantage.

true

1. It could be argued that information technology has been the most impactful trend in the advancement of SCM.

true

1. There is no effective strategy developed yet for global companies is to control costs while catering to local market tastes.

false

1. Global supply chains have reduced most companies’ exposure to risk.

false

1. A requirement to achieving ever-leaner supply chains is collaboration with supply chain partners.

true

1. Pursuing a lean supply chain strategy reduces a firm’s supply chain risk.

false

1. “Green” supply chain strategies need to be embraced across firms in the supply chain in order to be most effective.

true

1. Suppliers are not overly important in a firm’s innovation initiatives.

false

1. The only benefit to firms of ‘green’ supply chain initiatives is lower costs.

false

1. In an effective supply chain, every activity should contribute to the total value of the firm’s cost or service position.

true

1. The end customer plays a greater role in the manufacturing supply chain than in a service supply chain.

false

SCM competitive advantage can be derived from two primary areas:

1. Cost and value
2. Suppliers and customers
3. Productivity and sustainability
4. Logistics and marketing

Responsiveness and relationship managemen

1

A product’s cost advantage may include the following:

1. High service
2. Customization
3. Reputation
4. Sustainability
5. None of the above

5

Ways that companies can gain a value advantage include:

1. Value-segmenting
2. Supplier relationship management
3. Service and support
4. Lowest cost
5. a and c

1

The experience curve describes the relationship between:

1. Value and experience
2. Volume and experience
3. Service levels and experience
4. Costs and experience
5. Innovation and experience

4

Building blocks of SCM strategy include:

1. Operations
2. Distribution
3. Sourcing
4. Customer service
5. All of the above

5

Operations strategy focuses primarily on:

1. Improved coordination between supply chain partners
2. Reducing inventory across the supply chain
3. How goods and services will be produced
4. Segmenting customers/markets
5. All of the above

3

Customers’ ability to customize products reflects which operations strategy

1. Make-to-order
2. Assemble-to-order
3. Make-to-stock
4. Reverse logistics
5. None of the above

1

The most effective strategy for companies that produce standardized, commodity products is:

1. Make-to-order
2. Assemble-to-order
3. Make-to-stock
4. Reverse logistics
5. Customer service

3

The most effective strategy when there are many variations of the end product is:

1. Make-to-order
2. Assemble-to-order
3. Make-to-stock
4. Adaptability
5. None of the above

2

Distribution strategy involves decisions about:

1. Supplier selection
2. Product development
3. Transportation modes
4. How to get products to customers
5. a and b

4

In defining a distribution strategy, a company must consider the importance of channel intermediaries including:

1. Suppliers and manufacturers
2. Suppliers and customers
3. Retailers and distributors
4. Distributors and suppliers
5. None of the above

3

The outsourcing decision relates to which building block of SCM strategy:

1. Operations
2. Distribution
3. Sourcing
4. Logistics
5. Customer service

3

An outsourcing strategy can result in the following:

1. Ability to respond quickly to demand changes
2. Gain a competitive advantage
3. Eliminate risk
4. Loss of flexibility
5. a and b

5

Risks to a company that can result from outsourcing include:

1. Customers demanding higher quality and better service
2. Loss of control over a product or process
3. Increasing technological capabilities
4. Lower costs
5. a and b

2

Benefits to a company that can result from outsourcing include:

1. Accessing new markets/customers
2. Lower costs
3. Decreased flexibility
4. Decreased demand
5. a and b

5

When defining a customer service strategy, companies should first:

1. Outsource non-core competencies
2. Define the sales volume and profits in each market segment
3. Improve relationship management processes
4. Pressure suppliers for lower costs and better service
5. None of the above

2

How a company competes in the marketplace is defined as:

1. Operations strategy
2. Market segmentation
3. Competitive priority
4. Alliance development
5. All of the above

3

Of the five priorities by which companies compete in the marketplace, which relates to having efficient, integrated operations:

1. Cost
2. Time
3. Logistics
4. Service
5. Market segmentation

1

Companies that compete primarily on innovation typically focus on two attributes:

1. Operations and logistics
2. Sourcing and operations
3. Quality and time
4. Speed and product design
5. Cost and time

4

Investing in and utilizing RFID tag technology typically fits with which competitive priority:

1. Time
2. Quality
3. Cost
4. Segmentation
5. a and b

2

Two concepts that companies must continually monitor when evaluating strategy are:

1. Regulation and compliance requirements
2. Inventory levels and costs
3. Time and quality
4. Order winners and order qualifiers
5. Innovation and quality

4

Adaptability, in terms of defining SCM strategy, relates to a company’s ability to:

1. Continually locate the lowest cost supplier
2. Evolve and adapt as market conditions change
3. Increase capacity as demand increases
4. Outsource production
5. None of the above

2

Factors in today’s business environment that require companies to have adaptable supply chains include:

1. Development of new technologies
2. Frequent changing to a company’s business scope
3. Increase in outsourcing
4. Increasing working capital needs
5. a and b

5

A worker can produce 1000 units during an 8 hour shift, thus the productivity of that worker is:

1. 100 units/hour
2. 80 units/hour
3. 800 units/hour
4. 125 units/hour
5. None of the above

4

One of the key aspects that must be considered when interpreting productivity measures is:

1. Benchmarking
2. Collaboration
3. Coordination
4. Responsiveness
5. None of the above

1

1. A business strategy is a company plan that defines short term goals and core competencies.

false

1. Supply chain strategy should closely link with and support a company’s business strategy.

true

1. Competitive advantage, derived from supply chain management practices, can be the result of two primary areas: cost AND productivity.

false

1. Commodity products are typically bought by consumers because of the product’s value.

false

1. A key area where companies are adding value to products is by focusing on service.

true

1. One building block of SCM strategy is alliance development.

false

1. Operations strategy involves decisions about which suppliers to utilize.

false

1. A made to stock operations strategy offers customers the ability to customize products.

false

1. An assemble to order operations strategy allows firms to lower inventory costs.

true

1. The make to order operations strategy typically requires longer customer lead times.

true

1. All industries should strive to implement a make to order strategy because this strategy provides the highest level of customer service.

false

1. Understanding a product’s life cycle is important to defining an operations strategy.

true

1. Distribution strategy involves the decision to sell products directly to consumers or through channel intermediaries.

true

1. The same distribution strategy should be deployed to all markets because of cost savings.

false

1. Sourcing strategy involves decisions about outsourcing.

true

1. Processes that are strategic differentiators for a company should be outsourced because they are typically the most expensive processes to manage.

false

1. Outsourcing can allow companies to respond to demand changes more quickly.

true

1. Outsourcing can provide many benefits but it also carries numerous risks that must be evaluated and managed.t

true

1. As a company increases the scope of an outsourced process, the risk to the company decreases.

false

1. Giving one supplier too much control creates a dependency risk for a company.

true

1. Customer service strategies should be developed based on market segmentation.

true

1. When designing a SCM strategy, mimicking a market leader always leads to success.

false

1. Successful companies are able to compete on all competitive priorities.

false

1. An order qualifier is an attribute that is a must-have for a company to compete in the marketplace.

true

1. Without substantial market influence, there are very few strategies for small firms to compete.

false

1. The ability to adapt strategies to a changing environment is the same for all industries.

false

1. Evaluating SCM strategy is best done on an annual or bi-annual basis.

false

1. Productivity measures the utilizations of a company’s resources.

true

1. For the month of August, the values of a company’s outputs and inputs were $100,000 and $40,000 respectively, thus he total productivity measure would be 2.0

false

1. Productivity must be measured over time in order to provide a valuable measure of performance.

true