Chapter 1: Understanding Supply Chain

Question 1

The term “supply chain management” arose in the late ___ and
came into widespread use in the ____.

Answer 1

1980s
1990s

Question 2

Term used to denote supply chain management before.

Answer 2

“logistics” and “operations management”

Question 3

the alignment of firms that bring products or
services to market.

Answer 3

supply chain

Question 4

It consists of all stages involved, directly or indirectly, in fulfilling a customer request.

Answer 4

supply chain

Question 5

ToF. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves.

Answer 5

True

Question 6

A _____ is a network of facilities and distribution options that performs the functions
of procurement of materials, transformation of these materials into intermediate and
finished products, and the distribution of these finished products to customers.

Answer 6

supply chain

Question 7

The systemic, strategic coordination of the traditional business functions and the tactics
across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.

Answer 7

Supply Chain Management

Question 8

is the coordination of production, inventory, location, and
transportation among the participants in a supply chain to achieve the best mix of
responsiveness and efficiency for the market being served

Answer 8

Supply chain management

Question 9

This activity includes the creation of master production schedules that take
into account plant capacities, workload balancing, quality control, and equipment maintenance.

Answer 9

Production

Question 10

The primary purpose is to act as a buffer against uncertainty in the supply chain.

Answer 10

inventory

Question 11

Answers the question “How should inventory be moved from one supply chain location to another?”

Answer 11

Transportation

Question 12

With good ______, people can make effective decisions about what to produce and how much, about where to locate inventory and how best to transport it.

Answer 12

information

Question 13

Five areas of supply chain management

Answer 13

Production
Inventory
Location
Transportation
Information

Question 14

refers to the rate at which sales to the end customer occur.

Answer 14

throughput

Question 15

The goal or mission of supply chain management can be defined using Mr. Goldratt’s words as …

Answer 15

“Increase throughput while simultaneously reducing both inventory and operating expense.”

Question 16

Drivers of Supply Chain

Answer 16

Facilities
Inventory
Transportation
Information
Sourcing
pricing

Question 17

places where inventory is stored, assembled or fabricated

Answer 17

Facilities

Question 18

Production sites and storage sites

Answer 18

Facilities

Question 19

Raw materials, wip, finished goods within a supply chain

Answer 19

Inventory

Question 20

Inventory policies

Answer 20

Inventory

Question 21

Moving inventory from point to point in a supply chain

Answer 21

Transportation

Question 22

Combination of transportation modes and routes

Answer 22

Transportation

Question 23

Data and analysis regarding inventory transportation facilities throughout the supply chain

Answer 23

Information

Question 24

Potentially the biggest driver of supply chain performance

Answer 24

Information

Question 25

Functions a firm performs and functions that are outsourced

Answer 25

Sourcing

Question 26

Price associated with goods and services provided by firm to the supply chain

Answer 26

Pricing

Question 27

Refers to the capacity of a supply chain to make and store products

Answer 27

Production

Question 28

Three main approaches to use in warehousing

Answer 28

Stock keeping unit (sku) storage job lot storage cross docking

Question 29

In this traditional approach all of the given type of products is stored together this is an efficient and easy to understand way to store products

Answer 29

Stock keeping unit (sku) storage

Question 30

In this approach all the different products related to the needs of a certain type of customer or related to these needs of a particular job are stored together

Answer 30

Job lot storage

Question 31

This allows for an efficient picking and packing operations but usually requires more storage space than the traditional sku storage approach

Answer 31

Job lot storage

Question 32

An approach that was pioneered by walmart in its strive to increase efficiencies in the supply chain

Answer 32

Cross docking

Question 33

In this approach product is not actually warehouse in the facility instead the facility is used to a house a process where trucks from the suppliers arrive and unload large quantities of different products list large lots are then broken down into smaller lots smaller lots of different products are recognized according to the needs of the day

Answer 33

Cross docking

Question 34

Spread throughout the supply chain and includes everything from raw materials to work in process to finish goods that are held by the manufacturers distributors and retailers of a supply chain

Answer 34

Inventory

Question 35

Inventory that is held as a buffer against uncertainty

Answer 35

Safety inventory

Question 36

If the demand forecasting could be done with perfect accuracy then the only inventory that would be needed would be ____

Answer 36

Cycle inventory

Question 37

This is inventory that is built up in anticipation of predictable increases in demand that occurs in a certain times of the year

Answer 37

Seasonal inventory

Question 38

Refers to the geographical siting of supply chain facilities

Answer 38

Location

Question 39

Types of activities in location

Answer 39

Centralized and decentralized

Question 40

Refers to the movement of everything from raw material to finish goods between different facilities in a supply chain

Answer 40

Transportation

Question 41

Six basic modes of transport that a company can choose from

Answer 41

Ship rail pipelines trucks Airplanes electronic transport

Question 42

It is a very cost efficient but also the slowest mode of transportation

Answer 42

Ship

Question 43

Limited to use between locations that are situated next to the navigable waterways and facilities such as harbors and canals

Answer 43

Ship

Question 44

A very cost efficient but can be slow, this mode is also restricted to use between locations that are severed by rail lines

Answer 44

Rail

Question 45

It can be very efficient but are restricted to commodities that are liquids or gases such as water oil and natural gas

Answer 45

Pipelines

Question 46

Relatively quick and very flexible mode of transportation, it can go almost anywhere

Answer 46

Trucks

Question 47

Cost of this mode is prone to fluctuations though as the cost of fuel fluctuates and the condition of roads varies

Answer 47

Trucks

Question 48

Are very fast mode of transportation and are very responsive this is also the most expensive mode and it is somewhat limited by the availability of appropriate airport facilities

Answer 48

Airplanes

Question 49

It is the fastest mode of transport and it is very flexible and cost effective

Answer 49

Electronic transport

Question 50

It is the path through which products move and networks are composed of the collection of the paths that can facilities connected those paths

Answer 50

Route

Question 51

Is the basis upon to which make decisions regarding the other four supply chain drivers

Answer 51

Information

Question 52

It is the connection between all of the activities and operations in a supply chain to the extent that this connection is a strong one the company is supply chain will each be able to make good decisions for their own

Answer 52

Information

Question 53

Information is used for two purposes in any supply chain and that is

Answer 53

Coordinating daily activities & forecasting and planning

Question 54

The company's in a supply chain is used available data on product supply and demand to decide on weekly production schedules inventory levels transportation routes and stocking location

Answer 54

Coordinating daily activities

Question 55

Available information is used to make tactical forecast to guide the setting of monthly and quarterly production schedules and timetables

Answer 55

Forecasting and planning

Question 56

Are organizations that make a product this includes companies that are producers of raw materials and companies that are producers of finished goods

Answer 56

Producers or manufacturers

Question 57

Are organizations that mine for minerals drill for oil and gas and cut timber it also includes organization that form the land race animals or catch seafoods

Answer 57

Producers of raw materials

Question 58

These are companies that use the raw materials and subassemblies made by other producers to create their products

Answer 58

Producers of finished goods

Question 59

Are companies that take inventory in bulk from producers and deliver a bundle of related product lines to customers

Answer 59

Distributors

Question 60

Distributors are also known as

Answer 60

Wholesalers

Question 61

They typically sell to other businesses and they sell products in larger quantities than a individual consumer would usually buy

Answer 61

Distributors

Question 62

Buffer the producers from fluctuations in demand by stocking inventory and doing much of the sales work to find the service customers

Answer 62

Distributors

Question 63

They fulfill the "time and place" function - they deliver products when and where the customer wants them

Answer 63

Distributors

Question 64

Is typically an organization that takes ownership of significant inventories of products that they buy from producers and sell to consumers

Answer 64

Distributor

Question 65

It can also be an organization that only brokers a product between the producer and the customer and never takes ownership of that product

Answer 65

Distributor

Question 66

They stuck inventory and sell in smaller quantities to the general public

Answer 66

Retailers

Question 67

This organization also closely tracks the preferences and demands of the customers that it sells to

Answer 67

Retailers

Question 68

It advertises to its customers and often uses some combinations of price product selection service and convenience as primary draw to attract customers for the product it sells

Answer 68

Retailers

Question 69

Are any organization that purchases and uses a product

Answer 69

Customers or consumers

Question 70

They may purchase a product in order to incorporate it into another product that they intern sell to other customers

Answer 70

Customer organization

Question 71

Final end user of a product

Answer 71

Customer

Question 72

These are organizations that provide services to producers distributors retailers and customers

Answer 72

Service providers

Question 73

Three steps to align supply chain and business strategy

Answer 73

1. Understand the requirements of your customers 2. define core competencies and the rules your company will play to serve your customers 3. develop supply chain capabilities to support the rules company has chosen

Question 74

Is the total amount that buyers are willing to pay for firms products

Answer 74

Value

Question 75

Is a tool developed by dr michael porter

Answer 75

Value chain

Question 76

The difference between the total value or revenue and the total cost of performing all of the firms activities provides the...

Answer 76

Margin

Question 77

It is concentrating on the activities starting with raw materials till the conversion into final goods or services

Answer 77

Value chain

Question 78

Two categories of value chain

Answer 78

Primary activities support activities

Question 79

Value chain is categorized into types based on the type of organizations

Answer 79

Manufacturing based service based both manufacturing and service based

Question 80

It is a tool used to identify sources of competitive advantage

Answer 80

Value chain

Question 81

Represents the internal activities a firm engages in when transforming inputs into outputs

Answer 81

Value chain

Question 82

Is a strategy tool used to analyze firms activities by recognizing which activities are the valuable to the firm and which one needs to be improved

Answer 82

Value chain analysis

Question 83

Types of firm

Answer 83

Primary activities and support activities

Question 84

Primary activities in supply chain

Answer 84

Inbound logistics Operations outbound logistics marketing and sales service

Question 85

The receiving and warehousing of raw materials

Answer 85

Inbound logistics

Question 86

Process of transforming inputs into finished goods and services

Answer 86

Operations

Question 87

Warehousing a finished goods or distribution of those finished goods to customers for retail stores

Answer 87

Outbound logistics

Question 88

The identification of customer needs and deploying product into marketplace and process of selling the customers

Answer 88

Marketing and sales

Question 89

Supporting customers after they buy products and services

Answer 89

Service

Question 90

Support activities in supply chain

Answer 90

Procurement Technology development Human resource management Firm infrastructure

Question 91

The purchasing of raw materials and inputs needed to create the product

Answer 91

Procurement

Question 92

Activities associated with recruiting training hiring and compensation

Answer 92

Human resource management

Question 93

Includes general and planning management legal finance accounting public affairs and quality management

Answer 93

Firm infrastructure