SCM Chapter 1

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

True

All stages of an enterprise are involved, either directly or indirectly, in fulfilling a customer request.

True

A supply chain includes only the organizations directly involved in supplying components needed for manufacturing.

False

The objective of every supply chain is to maximize the net value generated.

True

The objective of the customer arrival process is to ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.

False

The objective of customer order entry is to maintain a record of product receipt and complete payment.

False

The difference between the value of the product and its price remains with the customer as consumer surplus.

True

The supply chain planning phase exceeds the supply chain design phase in duration.

False

The goal during the supply chain operation phase is to exploit the reduction of uncertainty and optimize performance.

True

The replenishment cycle occurs at the retailer/distributor interface.

True

The manufacturing cycle occurs at the distributor/manufacturer interface.

True

The push/pull view of a supply chain holds that the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.

True

The production scheduling process in the manufacturing cycle is similar to the order entry process in the replenishment cycle.

True

The cycle view of a supply chain holds that the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.

False

The procurement cycle occurs at the manufacturer/supplier interface.

True

The cycle view of the supply chain is useful when considering operational decisions, because it specifies the roles and responsibilities of each member of the supply chain.

True

Push processes may also be referred to as speculative processes.

True

All supply chain activities within a firm belong to one of three macro processes — CRM, ISCM and SRM.

True

CRM systems typically include capabilities for sourcing and negotiating as well as design and supply collaboration.

False

There is a close connection between the design and management of supply chain flows and the success of a supply chain.

True

The drawback of Zara's responsive supply chain is that it tends to sell more products at markdown than most of its competitors.

False

Amazon's operations are completely online.

False

Good strategic decisions cannot be made without access to relevant analytics.

True

All analytics should be designed to support decision making.

True

Each stage in a supply chain is connected through the flow of products, information, and funds. These flows often occur in both directions and are usually managed by

one of the stages.

A supply chain features a constant flow of

information, product and funds.

Which of these words best describes a typical supply chain structure?

Network

Which statement about supply chains is best?

Flows in a supply chain may be managed by an intermediary.

Which sequence of stages is typical for product flow in a supply chain?

Supplier → Manufacturer → Distributor

Supply chain surplus involves what two parts?

Customer value and supply chain cost

For any supply chain, the source of revenue is generated by

the customer.

Customer value is

the sum of the supply chain surplus and supply chain cost.

The objective of every supply chain is to

maximize the net value generated.

Retailing in the United States is largely

consolidated.

For any supply chain,

there is only one source of revenue, the customer.

Webvan designed a supply chain with large warehouses in several major cities in the United States, from which groceries were delivered to customer homes. They failed partly because of

higher labor costs for picking orders.

A key issue facing Toyota is

design of its global production and distribution network.

Walmart's supply chain features clusters of stores around distribution centers, which facilitates

frequent but inexpensive replenishment at the stores.

Which of these statements about Dell's supply chain is best?

Dell's initial success was largely driven by their Assembly → Customer supply chain linkage.

The decision phases in a supply chain include

supply chain operation.

A company would decide whether to outsource or perform a supply chain function in-house during the

design phase.

The supply chain strategy category would include a decision about

how large the warehouse in Kokomo should be.

A decision made about which markets will be serviced by which locations falls in the supply chain ________ phase

planning

The profitability of a supply chain is impacted primarily by

the design, planning and operation categories of decisions.

The time horizon of the operation phase is typically

weekly or daily.

Handling customer orders in the best possible manner is the goal of supply chain

operations.

The cycle view of a supply chain holds that

the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.

The push/pull view of a supply chain holds that

the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.

The customer order cycle occurs at the

customer/retailer interface.

Customer order arrival refers to

the point in time when the customer has access to choices and makes a decision regarding a purchase.

The objective of the customer order arrival process is to

maximize the conversion of customer arrivals to customer orders.

Customer order entry is

the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.

The objective of customer order entry is to

ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.

Customer order fulfillment refers to

the process where product is prepared and sent to the customer.

Demand is external to the supply chain and thus is most uncertain at the

customer order cycle.

The objective of customer order fulfillment is to

get the correct orders to customers by the promised due date at the lowest possible cost.

Customer order receiving is

the process where the customer receives the product and takes ownership.

The retailer and distributor engage in the

replenishment cycle.

The process included in the replenishment cycle includes

retail sale.

The manufacturing cycle occurs at the

distributor/manufacturer interface.

The processes involved in the manufacturing cycle include

production scheduling.

The production scheduling process in the manufacturing cycle is similar to the

order entry process in the replenishment cycle.

The manufacturing and shipping process in the manufacturing cycle is equivalent to the

order fulfillment process in the replenishment cycle.

The manufacturer and supplier participate in the

procurement cycle.

The relationship between the manufacturer and supplier during the procurement cycle is very similar to the relationship between

distributor and manufacturer.

The cycle view of the supply chain is useful when considering operational decisions because

it specifies the roles and responsibilities of each member of the supply chain.

The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design because

it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.

Which of the following statements about pull processes is accurate?

They may also be referred to as reactive processes.

Which of the following statements about push processes is accurate?

They may also be referred to as speculative processes.

Supply chain macro processes include which of the following?

Customer Relationship Management (CRM)

Supply chain macro processes include which of the following?

Supplier Relationship Management (SRM)

Activities involved in the Customer Relationship Management (CRM) macro process include

marketing.

Activities involved in the Internal Supply Chain Management (ISCM) macro process include

order fulfillment.

Activities involved in the Supplier Relationship Management (SRM) macro process include

supplier evaluation and selection.

The activities associated with planning typically occur during which macro process?

ISCM

A key supply chain difference between Gateway and Apple is that

Apple has always carried product in their stores while at one time Gateway stores carried no inventory.

Zara's supply chain strategy

results in supply more closely matching customer demand.

Toyota's global complementation strategy

mandates that plants can produce vehicles for export to markets that remain strong when the local market weakens.