Upgrade to remove ads
Op Mang CHAP 15 SCM
Terms in this set (89)
A company's supply chain involves the flow of materials and information from suppliers, through production, to the end users.
Flow of materials and information are the central focus of supply chain management.
In supply chain organizations, functions must operate independently of each other.
Functions should be integrated.
In purchasing, one's only ethical obligation is to one's suppliers.
Purchasing personnel have ethical obligations with regard to a variety of stakeholders, primarily the organizations that employ them.
Using third-party logistics involves using your organization's logistics function to ship to customers that aren't officially part of the supply chain.
Using third-party logistics involves outsourcing the logistics function.
Every business organization is part of at least one supply chain.
Either the business organization is a complete supply chain or it is a player in a supply chain.
Frequent deliveries of small shipments can reduce inventory but also result in an increase in the transportation cost per unit.
This is one of the tradeoffs inherent in supply chain management.
The materials in the supply chain flow toward the end of the chain, while the information and the dollars move toward the beginning of the chain.
Material flows toward the final consumer and information and dollars flow upstream.
Managing supply chain visibility involves making sure that potential supply chain partners are aware of your organization's needs.
Supply chain visibility has to do with making sure that current trading partners have access to needed data in real time.
The goal of supply chain management is to synchronize supply and demand of all of the organizations that are part of the chain.
Synchronizing multiple organizations is one of the difficulties of supply chain management.
The need for supply chain management increases as globalization increases.
As globalization increases supply chain management is becoming more important.
The design of the supply chain and establishing partnerships with vendors and distributors are examples of operating issues in a supply chain.
These are tactical responsibilities.
Traffic management refers to truck movement within our parking areas.
Traffic management is the management of the shipment of incoming and outgoing goods.
One of the major reasons for a company to adopt third-party logistics is to concentrate on one's core business.
Outsourcing logistics to third parties enables a company to focus on its core business.
E-commerce refers to the use of electronic technology to facilitate business transactions.
E-commerce is a growing trend in supply chain management.
E-commerce involves business-to-business (B2B) interaction only.
E-commerce can also involve business-to-consumer (B2C) interactions.
Disintermediation refers to the phenomenon that the traditional retailer or service provider is reduced or eliminated in a supply chain.
Disintermediation involves reducing one or more steps in a supply chain by cutting out intermediaries.
Most people working for a business organization are somehow involved with the supply chain of that business.
Most people working for a business organization are involved in the flow of materials, money or information.
Strategic partnering is encouraged when two or more business organizations have complementary products or services that would benefit the others.
Complementarity is key to successful strategic partnering.
Forming strategic partnerships is beneficial for two or more business organizations that have the same products or services.
Complementarity is key to successful strategic partnering.
Inventory velocity refers to the average speed (in miles/hour) of material handling equipment in a warehouse.
Velocity refers to the rate at which goods pass through a supply chain.
Global supply chains make purchasing easier because of more options.
Global purchasing is more complex because of the variety of issues and risks that must be considered.
Centralized or decentralized purchasing is directly related to the size of an organization.
The use of centralized or decentralized purchasing is independent of organization size.
The optimization of the supply chain uses a mathematical model to determine the optimal number of business organizations to be included in the chain.
Optimizing a supply chain through mathematical models is typically not feasible.
Information technology is the key to success of global supply chains.
Global supply chains are made possible by the use of information technology.
Bullwhip effect refers to a phenomenon that demand variations that exist at the customer end of the supply chain are magnified as orders are generated back through the supply chain.
The effect of demand variations grows as it works its way back through the supply chain.
Starting with the final customer and moving backward through the supply chain, batch sizes and the level of safety stock tend to decrease.
Safety stock might increase, but batch sizes won't.
Scheduling and maintaining equipment are operational decisions.
Maintenance would be a form of corrective or preventative action to ensure the continued availability of capacity.
To prevent temporary storage in a warehouse, cross docking can be used.
In cross-docking, inbound goods are moved directly onto outbound trucks.
Delayed differentiation is a means of increasing product variety without building the customized product from scratch or keeping large inventories of custom products.
Delayed differentiation is used to create customized output without large inventories.
Returned goods are part of reverse logistics.
Reverse logistics involves managing the flow of goods back up the supply chain.
A 30% reduction in product and service variety won't really affect the efficiency of a supply chain.
Reducing variety is a prominent means of increasing efficiency.
The service function of purchasing interfaces with many area including legal, accounting, and engineering functions.
Purchasing interfaces with a wide variety of areas.
Gate keeping manages the cost of shipping returned goods.
Gate keeping manages the cost of dealing with inappropriately returned goods.
Outsourcing logistics gives a company less flexibility because it forces them to focus more on core businesses.
Outsourcing logistics can lead to more flexibility.
Vendor analysis examines the function of purchased parts and materials with a view towards improvement or cost reduction.
Vendor analysis evaluates sources of supply with respect to price, quality, reputation and service.
Using third-party fulfillment means losing control of fulfillment.
Outsource this key function means a loss of control.
Price is the primary determining factor in choosing a vendor since most products are essentially the same.
With vendor analysis, price is just one of many considerations.
RFID eliminates the need for counting and bar-code scanning.
RFID does away with the need for counting and bar-code scanning.
The importance of purchasing relates only to the cost of parts and materials purchased, which is often 60% or more of the cost of finished goods.
Purchasing is important because other costs resulting from the purchase of parts and materials are highly consequential.
The importance of purchasing is the cost of goods purchased, the quality of goods and services, and the timing of deliveries of goods or services.
These costs resulting from the purchase of parts and materials are highly consequential.
Vendor analysis is the process that evaluates the source of supply in terms of price, quality, reputation, and service.
Evaluating sources of terms of price, quality, reputation, and service is vendor analysis.
In e-commerce, the front-end design is significantly more important than the back-end design.
Back-end design is often more consequential in e-commerce.
One disadvantage to RFID is that they require a 'line of sight' for reading.
RFID doesn't need a 'line of sight' reading.
Decentralized purchasing can usually offer quicker response than centralized purchasing.
Centralized purchasing can be more efficient, but decentralized purchasing can offer faster response.
Some firms have structured their procurement function to include both centralized and decentralized purchasing.
Good purchasing can involve both centralized and decentralized elements.
Creating an effective supply chain requires linking the marketing, distribution, and supplier channels.
These need to be synchronized if the supply chain is to be effective.
An advantage of decentralized purchasing is the attention given to local needs.
Decentralized purchasing is more responsive to specific needs.
Event management is the advanced planning required for major performances such as concerts or conferences.
Event management involves detecting and responding to unplanned events.
Supplier certification is the first step required in a supplier audit program.
Even uncertified suppliers are potential targets in a supplier audit program.
Design and purchasing people should work closely because changes in design, specifications, or materials can impact future purchase requirements.
Purchasing interfaces with a wide variety of functional areas.
The purchasing cycle ends when the purchasing department is notified that the supplier has shipped the items.
The purchasing cycle ends when the shipment has been received in satisfactory condition.
Producing and shipping in large lots may reduce costs but increase lead times.
This is one of the tradeoffs in supply chain management.
Variations create uncertainty, thereby causing inefficiencies in a supply chain.
Reductions in disruptions helps improve supply chain efficiencies.
Disintermediation is the refusal of one party to use mediators for price negotiation.
Disintermediation involves reducing one or more steps in a supply chain by cutting out intermediaries.
Which of the following is not a goal of supply chain management?
D. lowest possible transportation costs
Minimizing transportation costs might lead to an unacceptable tradeoff elsewhere.
Logistics includes all of these except:
D. customer selection
Logistics involves moving goods.
Small changes in consumer demand can result in large variations in orders placed because of the
D. Bullwhip effect
Variations are amplified as they move backwards in the supply chain.
(I) are used to track goods in distribution
(II) are used to track job progress in production
(III) are used to provide special instructions to operators
(IV) can be used in inventory record keeping
D. I, II, and IV
RFID chips do not contain special instructions.
Which of the following is not a benefit of RFID?
C. frequent deliveries of smaller shipments
RFID does little to facilitate the cost reductions required to make frequent, small deliveries feasible.
A factor that makes it desirable for business organizations to actively manage their supply chains is:
B. increasing globalization
Globalization is making supply chain management more important.
Which of the following is not a benefit of effective supply chain management?
E. larger number of suppliers
Supply chain management often results in fewer suppliers.
Which of the following is not a measure of the reliability of the supply chain?
A. supply chain response time
Response time is a measure of supply chain effectiveness.
The automatic identification of material is part of/facilitated by:
RFID facilitates the automatic identification of material.
Which of the following is not an application of E-business?
E. universal product codes
Universal product codes are not part of E-business.
Which of the following is an advantage of E-business?
C. I and II
Gaining and maintaining customer loyalty is even more difficult once a firm is involved in E-business.
Which of the following is a barrier to integration of separate organizations in the supply chain?
(I) conflicting objectives of the companies in the chain.
(II) different level of capacity of the companies in the chain.
(III) reluctance of the organizations in the chain to allow other organizations access to their data.
D. I and III
Capacity imbalances can be overcome, but conflicting objectives and mistrust are substantial barriers.
_________ has helped business concentrate on their core business.
Outsourcing enables firms to focus on what they do, or should do, best.
Outsourcing followed by __________ is not simple.
Backsourcing is difficult to implement effectively if outsourcing has been done.
The interface between the firm and its suppliers is:
The purchasing function bridges the organization and its suppliers.
The two types of decisions that are relevant to supply chain management are:
E. Tactical, operational
Decision-making in supply chain management falls into either tactical or operational areas.
One important objective of purchasing is to:
B. be knowledgeable about new products
Purchasing can play a crucial role by helping solidify the supplier base for a new product.
The purchasing cycle begins with:
E. receiving a requisition
The requisition notes what is needed, in what quantity, and when it is needed.
Examination of the sources of supply for purchased parts or materials in order to improve performance is called:
A. vendor analysis
Performance can be evaluated with respect to price, quality, reputation or service.
Vendor analysis has the greatest potential for savings for items which have:
E. high annual cost-volume
These represent the bulk of purchasing costs.
Which of the following is not true of vendor analysis?
A. It involves an examination of the function of purchased parts or raw materials.
The function of purchased parts or raw materials would be done by the procuring department.
Which of the following is not a performance driver?
Stability is not a performance driver.
Which of the following would not usually be a main factor in selecting a vendor?
D. inventory turnover
Turnover would only rarely be associated with the vendor that is selected.
Which of the following is part of the purchasing cycle?
(I) Purchasing selects a supplier.
(II) Orders from vendors are received.
(III) Purchasing receives a requisition.
B. I, II, and III
These are all part of the purchasing cycle.
Which of the following is least likely to be a key consideration when a company chooses a supplier?
C. value analysis
All the others are highly likely to be considered in supplier selection.
Which of the following is not a benefit of centralized purchasing?
C. quick response to local needs
Quick response to local needs is a benefit of decentralized purchasing.
The purchasing perspective of the supplier as a partner is characterized by:
B. one or a few suppliers
Fewer suppliers enhance the chances of building real partnerships.
Vendor Analysis is the examination of the _________ of purchased materials.
Sources of supply are evaluated in vendor analysis.
Last quarter, a retailer sold 8,000 t-shirts, 7,000 of which were sold directly from on-hand inventory. This retailer's ________ was 88%.
A. fill rate
This retailer's fill rate was 88%.
Which of the following is a principle required for ethical behavior in purchasing?
A. loyalty to employer.
B. justice to those you deal with.
C. faith in your profession.
D. all of the above.
The activity which begins with a request from within the organization is:
B. Purchasing cycle
The purchasing cycle begins with a requisition.
Our organization can obtain visibility to potential trading partners on the internet by using:
B2B helps the organization let the market know of the organization's needs.
Real time information about product movement on store shelves could benefit from the use of
D. radio frequency identification tags
RFID facilitates real-time data gathering.
The website and order fulfillment are essential features of:
These are front-end and back-end facets of e-commerce.
A given inventory item has a per-year holding cost of $500. One method of shipping this item is three days faster than the other, but it is $2.50 more per unit. Using the slower method would be __________ more expensive overall than using the faster method.
Multiply the holding cost by the speed differential, then divide by 365. Compare this to the actual shipping cost difference.
THIS SET IS OFTEN IN FOLDERS WITH...
Operations Chapter 10
Chapter 15 Forecasting
OPSM CHAPTER 13 QUIZ
YOU MIGHT ALSO LIKE...
OPMT 303 Chapter 15
Chapter 15: Supply Chain Management
Marketing Ch 13
OTHER SETS BY THIS CREATOR
NAPA Kitchen & Bar Menu Test
Advanced Accounting Systems Final Review
Operations Management chapter 1