Krajewski TIF Chapter 10

8/10/2019 Krajewski TIF Chapter 10

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Chapter 10 Supply Chain Strategy

Chapter

10Part 3: Managing Value Chains

Supply Chain Strategy

TRUE/FALSE

1. Supply chain management is the strategy of organizing, motivating and controlling a firms processes

and those of its suppliers to match the flow of materials, services, and information with customer

demand.Answer: True

Reference: Introduction

Difficulty: Moderate

Keywords: supply, chain, management, supplier, customer

2. or!"in"process inventory is considered an input to the transformation processes of the firm.

Answer: #alse

Reference: Supply $hains for Services and Manufacturing


Keywords: I%, wor!, process, input

&. The finished goods of one firm may actually 'e the raw materials for another firm.

Answer: True

Reference: Supply $hains for Services and Manufacturing


Keywords: finished, good, raw, material

(. Inventory turnover is o'tained 'y dividing the average aggregate inventory value 'y sales per wee! at

cost.

Answer: #alse

Reference: Measures of Supply $hain %erformance


Keywords: inventory, turnover

). Increasing the percentage of on"time deliveries to customers actually reduces the total revenue of a

firm.

Answer: #alse

Reference: Measures of Supply $hain %erformance


Keywords: on"time, delivery, revenue

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*. The 'ullwhip effect says that in any supply chain, the ordering patterns e+perience increasing

variance as you move closer to the end customer.

Answer: #alse

Reference: Supply $hain ynamics


Keywords:'ullwhip, variance

-. common disruption of the e+ternal supply chain is product and service mi+ changes.

Answer: True



Keywords: disruption, e+ternal, supply, chain, mi+

/. common disruption of the e+ternal supply chain is engineering changes.

Answer: #alse


Difficulty: ModerateKeywords: e+ternal, supply, chain, engineering, change

0. istri'ution is the management of the transformation process devoted to producing the product or

service.

Answer: #alse



Keywords: distri'ution, transformation, management

1. ne of the concerns of material management deals with staffing patterns.

Answer: True

Reference: Supply $hain ynamicsDifficulty: Moderate

Keywords: material, management, staffing

11. ne of the concerns of material management deals with production levels.

Answer: True



Keywords: material, management, production, level

12. The order"fulfillment process involves the activities to deliver a product or service to the customer.

Answer: True

Reference: The rder #ulfillment %rocessDifficulty: Moderate

Keywords: order, fulfillment, deliver, customer

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1&. #orward placement is a reduction in inventory and safety stoc! 'ecause of the merging of varia'le

demands from customers.

Answer: #alse

Reference: The rder #ulfillment %rocess


Keywords: forward, placement, inventory

1(. 3endor"managed inventories are an e+ample of the forward"placement tactic.

Answer: True



Keywords: vendor, managed, inventories, forward, placement

1). rop shipping occurs when a retailer passes customer orders directly to a wholesaler or manufacturer,

which then ships the order directly to the customer with the retailers la'el on it.

Answer: True

Reference: Supply $hain StrategiesDifficulty: Moderate

Keywords: drop, shipping

1*. $hannel assem'ly is the process of using mem'ers of the distri'ution channel as if they were

assem'ly stations in the factory.

Answer: True

Reference: Supply $hain Strategies


Keywords: channel, assem'ly, distri'ution

1-. 3irtual supply chains tend to have lower costs due to economies of scale.

Answer: TrueReference: Supply $hain Strategies


Keywords: virtual, supply, chain

1/. It is 'etter to !eep the order fulfillment process in"house than to use a virtual supply chain when sales

volumes are high.

Answer: True

Reference: : Supply $hain Strategies


Keywords: virtual, supply, chain, traditional

10. hen high service or product variety is important, the traditional order fulfillment method isprefera'le to a virtual supply"chain approach.

Answer: #alse

Reference: : Supply $hain Strategies


Keywords: virtual, supply, chain, traditional

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2. colla'orative planning, forecasting, and replenishment program is an iterative process 'etween the

supplier and customer to develop replenishment 4uantities 5ointly.

Answer: True



Keywords: colla'orative, planning, forecasting, replenishment, $%#6

21. cross"doc!ing warehouse holds inventory from manufacturers until retailers are prepared to sell the

items.

Answer: #alse


Difficulty: 7asy

Keywords: cross"doc!ing, warehouse

22. The negotiation process e+ecutes the actual procurement of the service or material from the supplier.

Answer: #alse

Reference: Supplier 6elationship %rocessDifficulty: Moderate

Keywords: negotiation, procurement, supplier

2&. 8reen purchasing involves identifying, assessing, and managing the flow of environmental waste and

finding ways to reduce it and minimize its impact on the environment.

Answer: True

Reference: Supplier 6elationship %rocess


Keywords: green, purchasing, environment

2(. The competitive orientation to supplier relations is that the 'uyer and supplier are partners.

Answer: #alseReference: Supplier 6elationship %rocess


Keywords: competitive, orientation, supplier, 'uyer

2). The most used form of e"purchasing today is electronic data interchange.

Answer: True



Keywords: electronic, data, interchange, 7I

2*. catalog hu' is a central distri'ution point where 'uyers may purchase items directly from

manufacturers 'efore the items are shipped to retailers.Answer: #alse


Difficulty: 7asy

Keywords: catalog. hu'

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2-. n electronic mar!et that 'rings together te+t'oo! sellers, office supply companies, apparel vendors,

and students is an e+ample of an e+change.

Answer: True


Difficulty: 7asy

Keywords: e+change, electronic, 'uyer, seller

2/. 6educing the num'er of suppliers for an item carries an increased ris! of interruption in supply.

Answer: True



Keywords: sourcing, ris!, supply

20. 3alue analysis is a systematic effort to reduce the cost or improve the performance of products or

services.

Answer: True

Reference: Supplier 6elationship %rocessDifficulty: Moderate

Keywords: value, analysis, improve

&. 7arly supplier involvement is a program that allows suppliers to fill orders prior to the customer

placing them.

Answer: #alse



Keywords: early, supplier, involvement

&1. In presourcing, suppliers are selected early in the concept"development stage.

Answer: TrueReference: Supplier 6elationship %rocess

Difficulty: moderate

Keywords:presourcing, development

&2. 6esponsive supply chains wor! 'est when fre4uent product introduction e+ists.

Answer: True



Keywords: responsive, product, introduction

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&&. 7fficient supply chains wor! 'est when contri'ution margins are high.

Answer: #alse



Keywords: efficient, supply, chain, contri'ution

&(. 7fficient supply chains use low capacity cushions.

Answer: True



Keywords: efficient, chain, cushion, supply

&). 6esponsive supply chains wor! 'est when firms offer a low variety of services or products and

demand predicta'ility is high.

Answer: #alse


Difficulty: ModerateKeywords: responsive, supply, chains, variety, predicta'ility

&*. ell, a wildly successful computer company, can configure e+actly the computer you want than!s to

their mass production system.

Answer: #alse


Difficulty: 7asy

Keywords: mass, customization

&-. %ostponement is an organizational concept where'y mem'ers of the distri'ution channel are used as

if they were assem'ly stations in the factory.

Answer: #alseReference: Supply $hain Strategies


Keywords:postponement, delay

&/. 9ac!ward integration is a firms erroneous movement towards having suppliers and distri'utors

perform processes and provide material and services.

Answer: #alse



Keywords:'ac!ward, vertical, integration

&0. ffshoring is a supply chain strategy that involves moving processes to another country.Answer: True



Keywords: offshoring

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(. virtual supply chain allows for greater product variety and lower costs due to economies of scale.

Answer: True



Keywords: virtual, supply, chain

!ULT"#LE C$%"CE

(1. The 'asic purpose of supply chain management is to:a. create an e+clusive set of suppliers who will not supply your competitors.'. lin! your customers together so that the flow of materials remains under control.c. synchronize the operations of all suppliers with those of purchasing, production, distri'ution, and

customers.d. reduce the inventory 'y proper selection of customers and transportation modes.

Answer: c

Reference: IntroductionDifficulty: 7asyKeywords: supply, chain

(2. hich of the following is ;T a component of the supply chainB2,,>)C L /.-) wee!s

Inventory turnover L annual sales Bat costC>average aggregate inventory value L

2 million>&.) million L ).-1Reference: Measures of Supply $hain %erformanceDifficulty: ModerateKeywords: turnover, supply, wee!s, aggregate, inventory, value

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12&. $hampion $ooling $ompany remanufactures window air conditioners during the off"seasonmonths for sales during the scorching months of Kune, Kuly, and ugust in the !lahoma $ity area.Their average inventory of air conditioners is shown in the following ta'le. The company operates )wee!s a year and has average wee!ly sales of A&,-) and e+pects to sell A1&), worth of product ina year.

Unit Type Avg. Inventory(at cost)

Value of ac!

11 3olts *) A2)

1/, 9T= or smaller 22 3olts 0 A&)

?arger than 1/, 9T= ) A)

a. hat is their average aggregate inventory value

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Krajewski TIF Chapter 10