Chapter 1

Question 1

Its supply chain strategy is the delivery of winning customer solutions.

Answer 1

Apple

Question 2

It is a pioneer in demand management, incorporating a range of inputs, including consumer social data.

Answer 2

Proctor and Gamble

Question 3

It has ambitiously sought sustainable growth, with a goal of doubling its revenue using half its environmental footprint by 2020.

Answer 3

Unilever

Question 4

Two of its current strategies are further coordination along its supply chains and higher speed to market.

Answer 4

McDonald’s

Question 5

It continues a push to create innovative products and services.

Answer 5

Amazon

Question 6

The pressure of the competitive market and new information technologies has affected the structured of the production systems, calling for:

Answer 6

-reduction of time to market
-higher flexibility of the systems
-drastic reduction of costs
-extended quality concept

Question 7

Is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer.

Answer 7

Supply Chain

Question 8

What are the three key parts of supply chain?

Answer 8

-Supply
-Manufacturing
-Distribution

Question 9

It focuses on the raw materials supplied to manufacturing, including how, when, and from what location.

Answer 9

Supply

Question 10

It focuses on converting these raw materials into finished products

Answer 10

Manufacturing

Question 11

It focuses on ensuring that the products reach the consumers through an organized network of distributors, warehouses and retailers

Answer 11

Distribution

Question 12

In ______, used products may re-enter the supply chain at any point where residual value is recyclable.

Answer 12

Sophisticated supply chain systems

Question 13

Refers to how the supply chain should operate in order to compete in the market

Answer 13

Supply chain strategy

Question 14

Flow in a supply chain

Answer 14

Raw Material Suppliers - Manufacturing - Retailers - End customers

Question 15

Refers to the act of identifying, acquiring, and managing resources and suppliers that are essential to the operations of an organization

Answer 15

Supply Management

Question 16

Also known as ______, supply management includes the purchase of physical goods, information, services, and any other necessary resources that enable a company to continue operating and growing

Answer 16

Procurement

Question 17

Encompasses the planning and management of all activities involved in sourcing and procurement, demand and replenishment and all logistics management activities including customer service

Answer 17

Supply Management

Question 18

To manufacture quality products at the lowest imaginable controllable cost, in order to deliver volume targets

Answer 18

Plant Management

Question 19

Functional scope for supply management is based on four pillars

Answer 19

-Logistic Operations
-Customer Service
-Demand and Replenishment
-Purchasing

Question 20

What are the current trends in SCM?

Answer 20

-Expanding (and Contracting) the supply chain
-Increasing supply chain responsiveness
-The greening of supply chain
-Reducing cost

Question 21

Defines supply chain management as: The planning and management of all activities involved in sourcing and procurement, conversion and all logistic management activities

Answer 21

The Council of Supply Chain Management Professionals (CSCMP)

Question 22

Describes supply chain management as: The design and management of seamless, value -added processes across organizational; boundaries to meet the real needs of the end customer

Answer 22

The Institute for Supply Management (ISM)

Question 23

Defines supply chain management as: The design, planning, execution, control and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally

Answer 23

The Association for Operations Management (APICS)

Question 24

Defines supply chain management as follows: “Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities”

Answer 24

Council of Supply Chain Management Professionals

Question 25

SCM is also called the _______ of providing the right product, at the right time, right place and at the right cost to the customer.

Answer 25

Art of management

Question 26

Supply chain management can be divided into three main flows

Answer 26

-Product -Information -Financial

Question 27

Includes moving goods from supplier to consumer, as well as dealing with customer service needs

Answer 27

Product flow

Question 28

Includes order information and delivery status

Answer 28

Information flow

Question 29

Includes payment schedules, credit terms, and additional arrangements

Answer 29

Financial flow

Question 30

Is the amount consumers are willing to pay for what a company provides and it is measured by total revenue

Answer 30

Value

Question 31

Can be defines as the total profit shared by all the stages and intermediaries of a supply chain

Answer 31

Supply chain surplus

Question 32

Objectives of supply chain management

Answer 32

-enhancing customer service -expanding sales revenue- reducing inventory costs -improving on-time delivery -reducing order to deliver cycle time -reducing lead time -reducing transportation cost -reducing warehouse cost -reducing supplier base -expanding depth of distribution

Question 33

The importance of supply chain management is to:

Answer 33

-reduce inventories along the chain -share better information among the partners -plan in consultation rather than in isolation

Question 34

Activities of supply chain management

Answer 34

-Strategic -Tactical -Operational

Question 35

At this level, strategic decisions concerning the whole organization, such as the size and location of manufacturing sites, partnerships with suppliers, products to be manufactured and sales markets are taken

Answer 35

Strategic

Question 36

Focus on adopting measures that will produce costs benefits such as using industry best practices, developing a purchasing strategy with favored suppliers, working with logistics companies to develop cost effect transportation and developing warehouse strategies to reduce the cost of storing inventory

Answer 36

Tactical

Question 37

Decisions at this level affect how the products move along the supply chain

Answer 37

Operational

Question 38

Refers to how the supply chain should operate in order to compete in the market

Answer 38

Supply chain strategy