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PART IIIEXAMINATION QUESTIONSCHAPTER 2: THE SUPPLY-CHAIN CONCEPTMultiple Choice Questions1. According to Professor Mentzer and colleagues, the supply-chain concept originated in what discipline?a. marketingb. operationsc. logisticsd. production(c; p. 36)2. A _ encompasses all activities associated with the flow and transformation of goods from the raw material stage, through to the end user, as well as the associated information flows.a. production lineb. supply chainc. marketing channeld. warehouse(b; p. 36)3. Which of the following is not one of the processes in the SCOR model?a. sellb. planc. maked. return(a; p. 38)4. The current SCOR model identifies _ key processes associated with supply-chain management.a. threeb. fourc. fived. six(c; p. 38)5. The text suggests that logistics has an important role in all SCOR processes except:a. makeb. sourcec. deliverd. plan(d; p. 38)6. It has been suggested that company-versus-company competition might be superseded in the twenty-first century by:a. region-to-regionb. country-to-countryc. industry-to-industryd. supply chain-to-supply chain(d; p. 39)7. Which of the following are not key attributes of supply-chain management?a. inventory controlb. leveraging technologyc. customer powerd. a long-term orientatione. all are key attributes(e; p. 39)8. Contemporary supply chains should be fast and _.a. leanb. agilec. interactived. relevant(b; p. 40)9. An organizations ability to respond to changes in demand with respect to volume and variety refers to _.a. responsivenessb. leannessc. agilityd. relevancy(c; p. 40)10. Which of the following is not associated with relational exchanges?a. independenceb. trustc. commitmentd. shared benefits(a; p. 40)11. According to the text, _ has been at the center of the changes taking place that affect the supply chain.a. logisticsb. warehousingc. technologyd. customer power(c; p. 41)12. What has been referred to as the greatest force of commodization known to man, for both goods and services?a. McDonaldsb. The Internetc. Wal-Martd. Logistics(b; p. 41)13. The two key factors that have sparked much of the technological change affecting supply chains are _ and _.a. EDI, ERPb. Computing power, ERPc. EDI, Internetd. Computing power, Internet(d; p. 41)14. The bullwhip effect:a. is an ineffective way to motivate warehouse employeesb. applies to rodeos and has nothing to do with supply-chain management c. refers to the “swaying” motion associated with triple trailersd. refers to variability in demand orders among supply-chain participants(d; p. 42)15. Which of the following is not a way to reduce inventory levels?a. supply-push replenishmentb. smaller, more frequent ordersc. use of premium transportationd. elimination of slower moving products(a; p. 42)16. A supply-chain council:a. ensures that unfair trade practices dont happen in supply chainsb. is comprised of all relevant CEOsc. meets periodically to evaluate supply-chain performanced. is a lobbying group concerned with promoting favorable supply-chain legislation(c; p. 43)17. Covisint, an on-line trading exchange, is an example of co-opetition in the _ industry.a. fast-foodb. office supplyc. sporting goodsd. automotive(d; p. 44)18. Which of the following is not a method of supply chain coordination?a. co-opetitionb. dovetailingc. placing personnel from one supply-chain participant into the facility of another participantd. supply-chain councilse. all are methods(b; pp. 4344)19. Which of the following represents a method of supply chain coordination?a. dovetailingb. co-opetitionc. benchmarkingd. nesting(b; p. 44)20. Which of the following is not a barrier to supply-chain management?a. regulatory and political considerationsb. lack of top management commitmentc. reluctance to share, or use, relevant datad. incompatible corporate culturese. all are barriers(e; pp. 4446)21. Data mining:a. is illegal in the United Statesb. is synonymous with marginal analysisc. looks for patterns and relationships in relevant datad. can only be done by grocery stores(c; p. 45)22. Looking for patterns and relationships in relevant data refers to:a. data warehousingb. marginal analysisc. correlation analysisd. data mining(d; p. 45)23. Which of the following is false?a. ERP systems tend to be relatively strong when it comes to logistics and supply chain requirements.b. Installing ERP systems can take several years to complete.c. ERP systems offer tremendous potential for increasing organizational effectiveness and efficiency.d. Installing ERP systems can be expensive.e. All of the above are true.(a; pp. 4546)24. Supply chains can be integrated by having various parties enter into and carry out long-term mutually beneficial agreements. These agreements are known by several names. Which of the following is not one of these names?a. partnershipsb. strategic alliancesc. third-party arrangementsd. contract logisticse. all of the above are correct(e; p. 46)25. There are three primary methods that organizations can pursue when attempting to integrate their supply chains. Which of the following is not one of them?a. vertical integrationb. intensive distributionc. formal contractsd. informal agreements(b; p. 47)26. All of the following are factors that distinguish contemporary third-party logistics from earlier efforts except:a. there tends to be a formal contract in contemporary 3PLb. contemporary 3PL focuses on customized offeringsc. contemporary 3PL has a transactional focusd. contemporary 3PL focuses on mutual benefits(c; p. 48)27. What is a fourth-party logistics provider?a. a third-party logistics provider that has been in existence for at least 25 yearsb. a third-party logistics provider that has achieved ISO 9000 certificationc. a logistics intermediary that specializes in one logistics activity (e.g., transportation, warehousing)d. a general contractor that coordinates the activities of third-party logistics providers(d; p. 49)28. Which of the following statements about supply-chain software is false?a. many supply-chain software packages are developed for specific, rather than general, applicationsb. supply-chain software packages can focus on specific functional activities such as transportation and warehousingc. supply-chain software packages can focus on specific supply-chain processes such as customer relationship managementd. supply-chain software packages can attempt to simultaneously optimize supply-chain processes across organizationse. all are true(a; pp. 4950)29. The supply-chain management philosophy emerged in which decade?a. 1960sb. 1970sc. 1980sd. 1990s(d; p. 36)30. Although nearly any organization can be part of a supply chain, supply-chain management requires:a. the involvement of third-party logistics companiesb. overt management efforts by the organizations in a supply chainc. the participation of world-class organizationsd. at least one organization to be a multinational company(b; p. 37)31. A distinguishing feature of the JIT II concept is that:a. supplier and customer facilities are located in the same industrial parkb. only expedited transportation is usedc. companies must have ISO 9000 certification to participated. suppliers have on-site offices at a particular customer(d; p. 39)32. What company developed the supplier integration program known as JIT II?a. Procter & Gambleb. Gapc. Bosed. McDonalds(c; p. 39)33. Contemporary supply chains should be agile and _.a. fastb. leanc. interactived. relevant(a; p. 40)34. Which of the following is false?a. supply chains should employ a long-term orientationb. supply-chain management cannot be successful without information sharingc. partnerships must involve formal, contractual agreementsd. a long-term orientation tends to be predicated on relational exchanges(c; pp. 4041)35. The variability in demand orders among supply-chain participants:a. cannot be controlledb. refers to the bullwhip effectc. can be controlled with electronic order placementd. is more pronounced in relational exchanges(b; p. 42)True-False Questions1. The supply-chain concept originated in the logistics literature. (True, p. 36)2. Customers are not included as part of supply chains. (False, pp. 3637)3. Supply-chain management requires overt management efforts by the organizations within the supply chain. (True, p.37)4. The SCOR model identifies four key processes associated with supply-chain management. (False, p. 38)5. JIT II is a supplier integration program that allows different suppliers to interact with each other on a regular basis. (True, p. 39)6. Logistics has involvement in at least four of the key processes identified in the SCOR model. (True, p. 38)7. Because customer needs and wants change relatively quickly, supply chains should be fast and lean. (False, p. 40)8. With respect to supply chains, relevancy focuses on an organizations ability to respond to changes in demand with respect to volume and variety. (False, p. 40)9. Supply chains should employ a long-term orientation with various participants. (True, p. 40)10. Formal partnerships are more likely than informal ones to result in improved long-term supply-chain performance. (True, p. 41)11. Power retailers have been at the center of changes taking place that affect the supply chain. (False, p. 41)12. The Internet has been referred to as the greatest force of commodization known to man, for both goods and services. (True, p. 41)13. Enhanced communications across organizations in a supply chain is only dependent on the technological capabilities of the organizations. (False, p. 42)14. Variability in demand orders among supply-chain participants is known as the bubble effect. (False, p. 42)15. Inventory control in supply-chain management is attempting to move from “stops and starts” to continuous flow. (True, p. 42)16. Supply chain disruptions (e.g., delayed shipments) that occurred in the wake of the terrorist attacks in September 2001 have caused some supply chains to reassess their emphasis on inventory reduction. (True, p. 42)17. Supply-chain councils refer to lobbying groups concerned with promoting favorable supply-chain legislation. (False, p. 43)18. Co-opetition is a concept that suggests that companies can be competitors in some situations while working together in other situations. (True, p. 44)19. Covisint is an on-line trading exchange that represents an example of co-opetition in the grocery industry. (False, p. 44)20. Regulatory considerations present a bigger obstacle than political considerations to supply-chain management. (False, p. 44)21. The overall global climate for business has shifted toward allowing more cooperation among firmswhich should help supply-chain management. (True, p. 44)22. Top management is sometimes hesitant to fully commit to supply-chain management. (True, p. 45)23. Data warehousing is a technique that looks for patterns and relationships in the relevant data. (False, p. 45)24. Although customer loyalty programs (e.g., frequent shopper cards) can provide highly detailed data to companies, there are some who believe that these programs potentially violate a customers right to privacy. (True, p. 45)25. Most ERP systems tend to be relatively weak when it comes to logistics and supply chain requirements. (True, p. 45)26. Corporate cultures should be an irrelevant consideration when designing a supply chain. (False, p. 46)

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