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1、Supply Chain Management ExerciseTrue or False1. A supply chain includes only the organizations directly involved in supplying components needed for manufacturing.Answer: FalseDifficulty: Moderate2. A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer requ

2、est.Answer: TrueDifficulty: Moderate3. A supply chain could be more accurately described as a supply network or supply web.Answer: TrueDifficulty: Moderate4. The objective of every supply chain is to maximize the overall value generated. Answer: TrueDifficulty: Easy5. The objective of every supply c

3、hain is to maximize the value generated for the manufacturing component of the supply chain.Answer: FalseDifficulty: Moderate6. All supply chain activities within a firm belong to one of three macro processes -CRM, ISCM and SRM.Answer: TrueDifficulty: Easy7. There is a close connection between the d

4、esign and management of supply chain flows and the success of a supply chain.Answer: TrueDifficulty: Easy8. A company 's competitive strategy defines the set of customer needs that it seeks to satisfy through its products and services.Answer: TrueDifficulty: Easy9. The value chain emphasizes the

5、 close relationship between all the functional strategies within a company.Answer: TrueDifficulty: Moderate10. A company ' s product development strategy defines the set of customer needs that it seeks to satisfy through its products and services.Answer: FalseDifficulty: Moderate11. A company &#

6、39; s product development strategy specifies the portfolio of newproducts that it will try to develop.Answer: TrueDifficulty: Easy12. A company ' s supply chain strategy specifies how the market will be segmented and how the product will be positioned, priced, and promoted.Answer: FalseDifficult

7、y: Easy13. A company ' s supply chain strategy determines the nature of procurement and transportation of materials as well as the manufacture and distribution of the product.Answer: TrueDifficulty: Easy14. The degree of supply chain responsiveness should be consistent with the implied uncertain

8、ty.Answer: TrueDifficulty: Easy15. The degree of supply chain responsiveness doesnot need to be consistent withthe implied uncertainty.Answer: False Difficulty: Moderate16. The two major types of facilities are distribution sites and storage sites.Answer: FalseDifficulty: Moderate17. Inventory is an

9、 important supply chain driver because changing inventorypolicies can dramatically alter the supply chain ' s efficiency and responsiveness. Answer: TrueDifficulty: Moderate18. Information is potentially the biggest driver of performance in the supply chain as it directly affects each of the oth

10、er drivers.Answer: TrueDifficulty: Easy19. The high utilization facility will have no more difficulty responding to demand fluctuations than one with a lot of unused capacity.Answer: FalseDifficulty: Easy20. Stock keeping unit (SKU) storage is the warehousing methodology that uses a traditional ware

11、house to store all of one type of product together.Answer: TrueDifficulty: Moderate21. Warehouse unit storage is the warehousing methodology that uses a traditional warehouse to store all of one type of product together.Answer: FalseDifficulty: Moderate22. Distribution occurs between every pair of s

12、tages in the supply chain.Answer: TrueDifficulty: Moderate23. Distribution only occurs between manufacturing and consumers in the supply chain.Answer: FalseDifficulty: Moderate24. Companies in the same industry often select very different distribution networks, because the choice of the distribution

13、 network can be used to achieve a variety of supply chain objectives ranging from low cost to high responsiveness.Answer: TrueDifficulty: Moderate25. The main advantage of a distribution network with local storageis that it canlower the delivery cost and provide a faster response than other networks

14、.Answer: TrueDifficulty: Moderate26. When designing supply chain networks, companies must build appropriate flexibility to help counter fluctuations in exchange rates and demand across different countries.Answer: True Difficulty: Moderate27. Inventory and facility costs increase as the number of fac

15、ilities in a supply chain increase.Answer: True Difficulty: Moderate28. Transportation costs increase as the number of facilities is increased. Answer: False Difficulty: Moderate29. When faced with a network design decision, the goal of a manager is to designa network that minimizes the firm ' s

16、 costs while satisfying customer needs in terms of demand and responsiveness.Answer: False Difficulty: Hard30. The supply chain network is designed to maximize total profits, taking into account the expected margin and demand in each market, various logistics and facility costs, and the taxes and ta

17、riffs at each location.Answer: True Difficulty: Easy31. Decisions made during the supply chain design phase regarding significant investments in the supply chain, such as the number and size of plants to build, the number of trucks to purchase or lease, and whether to build or lease warehouse space,

18、 cannot be altered in the short term.Answer: True Difficulty: Moderate32. Decisions made during the supply chain design phase regarding significant investments in the supply chain, such as the number and size of plants to build, the number of trucks to purchase or lease, and whether to build or leas

19、e warehouse space, rarely remain in place for several years.Answer: False Difficulty: Moderate33. Decisions made during the supply chain design phase regarding significant investments in the supply chain, such as the number and size of plants to build, the number of trucks to purchase or lease, and

20、whether to build or lease warehouse space, define the boundaries within which the supply chain must compete. Answer: True Difficulty: Moderate34. Long-term contracts for both warehousing and transportation requirements will be more effective if the demand and price of warehousing do not change in th

21、e future or if the price of warehousing goes up.Answer: TrueDifficulty: Easy35. Long-term contracts for both warehousing and transportation requirements will be more effective if either demand or the price of warehousing drops in the future. Answer: False Difficulty: Moderate36. The present value of

22、 future cash flows is found by using a discount factor. Answer: True Difficulty: Moderate37. The rate of return k is also referred to as the present value of capital. Answer: False Difficulty: Easy38. A negative NPV for an option indicates that the option will lose money for the supply chain.Answer:

23、 TrueDifficulty: Moderate39. The decision with the lowest NPV will provide a supply chain with the highest financial return.Answer: FalseDifficulty: Moderate40. In reality, demand and prices are highly uncertain and are likely to fluctuate during the life of any supply chain decision.Answer: TrueDif

24、ficulty: Moderate41. The goal of aggregate planning is to satisfy demand in a way that minimizes profit.Answer: FalseDifficulty: Easy42. Aggregate planning is a process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specifi

25、ed time horizon.Answer: TrueDifficulty: Moderate43. Aggregate planning solves problems involving aggregate decisions rather than stock keeping unit (SKU) level decisions.Answer: TrueDifficulty: Easy44. Forecasting errors are dealt with in aggregate plans using either safety backlog or safety capacit

26、y.Answer: FalseDifficulty: Moderate45. Safety inventory is defined as inventory held to satisfy demand that is higher than forecasted.Answer: TrueDifficulty: Easy46. Safety capacity is defined as capacity used to satisfy demand that is lower than forecasted.Answer: FalseDifficulty: Easy47. Companies

27、 should work with downstream partners to produce forecasts and with upstream partners to determine constraints when doing aggregate planning. Answer: True Difficulty: Easy48. The aggregate plan should be viewed primarily as an in-house tool that does not need to be communicated to supply chain partn

28、ers.Answer: FalseDifficulty: Easy49. Given that forecasts are always wrong to some degree, the aggregate plan needs to have some flexibility built into it if it is to be useful.Answer: TrueDifficulty: Moderate50. With supply and demand management decisions being made independently, it is easier to c

29、oordinate the supply chain, thereby increasing profit.Answer: FalseDifficulty: Moderate51. A firm can vary supply of product by controlling production capacity and inventory.Answer: TrueDifficulty: Easy52. A firm that uses flexible work hours from the workforce to manage capacity to better meet dema

30、nd is using a seasonal workforce.Answer: FalseDifficulty: Moderate53. Offering a promotion during a peak period that has significant forward buying creates even more variable demand than before the promotion.Answer: TrueDifficulty: Easy54. Average inventory decreases if a promotion is run during the

31、 peak period and increases if the promotion is run during the off-peak period.Answer: FalseDifficulty: Easy55. Promoting during a peak demand month may decrease overall profitability if a significant fraction of the demand increase results from a forward buy. Answer: True Difficulty: Hard56. As forw

32、ard buying becomes a smaller fraction of the demand increase from a promotion, it is less profitable to promote during the peak period.Answer: FalseDifficulty: Hardbecomes57. As the product margin declines, promoting during the peak demand period less profitable.Answer: True Difficulty: Easy58. Cycl

33、e inventory exists because producing or purchasing in large lots allows a stage of the supply chain to exploit economies of scale and increase cost. Answer: FalseDifficulty: Moderate59. A lot or batch size is the quantity that a stage of the supply chain either produces or purchases at a given time.

34、Answer: True Difficulty: Moderate60. Cycle inventory is the physical inventory in the supply chain due to either production or purchases demanded by the customer.Answer: TrueDifficulty: Moderate61. The inventory profile is a plot depicting the level of inventory over time.Answer: TrueDifficulty: Eas

35、y62. A discount is volume-based if the pricing schedule offers discounts based on the quantity ordered in a single lot.Answer: FalseDifficulty: Hard63. A discount is volume-based if the discount is based on the total quantitypurchased over a given period, regardless of the number of lots purchased o

36、ver that period.Answer: TrueDifficulty: Easy64. Pricing schedules with all unit quantity discounts encourage retailers toincrease the size of their lots, which reduces the average inventoryand flow timein a supply chain.Answer: False Difficulty: Moderate65. Safety inventory is inventory carried for

37、the purpose of satisfying demandthat exceeds the amount forecasted for a given period.Answer: TrueDifficulty: Moderate66. Safety inventory is carried because demand forecasts are accurate and a product shortage may result if the forecast demand exceeds the actual demand.Answer: FalseDifficulty: Mode

38、rate67. Raising the level of safety inventory increases product availability and thus the margin captured from customer purchases.Answer: TrueDifficulty: Moderate68. Raising the level of safety inventory increases inventory holding costs. Answer: TrueDifficulty: Easy69. Carrying excessive inventory

39、can help counter demand volatility when new products come on the market.Answer: False Difficulty: Moderate70. The appropriate level of safety inventory is determined by the uncertainty of both demand and supply and the desired level of cycle inventory. Answer: FalseDifficulty: Moderate71. As the unc

40、ertainty of supply or demand grows, the required level of safety inventories increases.Answer: True Difficulty: Moderate72. As the desired level of product availability increases, the required level of safety inventory decreases.Answer: False Difficulty: Easy73. Lead time is the gap between when an

41、order is placed and when it is received. Answer: TrueDifficulty: Easy74. Periodic review policies require more safety inventory than continuous review policies for the same level of product availability.Answer: TrueDifficulty: Easy75. When using a continuous review policy, a manager has to account f

42、or the uncertainty of demand during the lead time and the review interval. Answer: FalseDifficulty: EasyMultiply Choice1. Which of the following is not a stage within a typical supply chain?a. Customersb. Retailersc. Wholesalers/Distributorsd. Manufacturerse. All of the above are stages within a typ

43、ical supply chain.Answer: eDifficulty: Easy2. Supply chain profitability isa. not correlated to the value generated by the various stages of the supply chain.b. the total profit to be shared across all supply chain stages.c. the difference between the revenue generated from the customer and the over

44、all cost across the supply chain.d. the total revenue generated by the distributor stage of the supply chain.e. b and c onlyAnswer: eDifficulty: Difficult3. Successful supply chain management requires which of the following decision phases?a. supply chain strategy/designb. supply chain planningc. su

45、pply chain operationd. all of the abovee. a and b onlyAnswer: dDifficulty: Moderate4. The objective of customer order entry is toa. get the correct orders to customers by the promised due date at the lowest possible cost.b. maintain a record of product receipt and complete payment.c. maximize the co

46、nversion of customer arrivals to customer orders.d. ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.e. none of the aboveAnswer: dDifficulty: Easy5. The push/pull view of the supply chain is useful when considering strategic decisions re

47、lating to supply chain design, becausea. it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.b. it specifies the roles and responsibilities of each member of the supply chain.c. it clearly defines the processes involved and the owners of

48、each process.d. it focuses on processes that are external to the firm.e. it focuses on processes that are internal to the firm. Answer: aDifficulty: Hard6. Which of the following statements about pull processes is accurate?a. May also be referred to as speculative processes.b. Execution is initiated

49、 in anticipation of customer orders.c. At the time of execution, demand must be forecast.d. May also be referred to as reactive processes.e. None of the above are accurate. Answer: dDifficulty: Easy7. Which of the following statements about push processes is accurate?a. May also be referred to as sp

50、eculative processes.b. Execution is initiated in response to customer orders.c. At the time of execution, demand is known with certainty.d. May also be referred to as reactive processes.e. None of the above are accurate. Answer: aDifficulty: Easy8. Supply chain macro processes include which of the f

51、ollowing?a. Customer Relationship Management (CRM)b. Internal Supply Chain Management (ISCM)c. Supplier Relationship Management (SRM)d. all of the abovee. none of the above Answer: d Difficulty: Easy9. A company ' s competitive strategya. defines the set of customer needs that it seeks to satisf

52、y through its products and services.b. specifies the portfolio of new products that it will try to develop.c. specifies how the market will be segmented and how the product will be positioned, priced, and promoted.d. determines the nature of procurement and transportation of materials as well as man

53、ufacture and distribution of the product.e. determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs.10. A company ' s supply chain strategya. defines the set of customer needs that it seeks to satisfy through its products and services.b. spec

54、ifies the portfolio of new products that it will try to develop.c. specifies how the market will be segmented and how the product will be positioned, priced, and promoted.d. determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.e.

55、 determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs.Answer: d Difficulty: Easy11.A supply chain strategy includesa.supplier strategy.b.operations strategy.c.logistics strategy.d.all of the abovee.none of the aboveAnswer: dDifficulty: Moderat

56、e12. Customer demand from different segments varies along which of the following attributes?a. The quantity of product needed in each lot.b. The response time that customers are willing to tolerate.c. The variety of products needed.d. The service level required.e. all of the aboveAnswer: eDifficulty

57、: Easy13. Which of the following is not an attribute along which customer demand varies?a. The uniqueness of the product.b. The quantity of product needed in each lot.c. The variety of products needed.d. The desired rate of innovation in the product.e. All of the above are attributes. Answer: aDifficulty: Moderate14.The uncertainty of customer demand for a product is thea. b.rate of strategic uncertainty. demand uncertainty.c.d.implied demand uncertainty. average forecast error.e.none of the a

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