Chapter 9 Flashcards
(24 cards)
What does a product’s supply chain include? a) Only the companies that actively sell the product downstream. b) Only the providers of the raw materials used to produce the product upstream. c) All the organisations that have an impact on the product before, during, and after it’s produced, including suppliers and downstream companies. d) Only the transportation companies that physically move the product.
All the organisations that have an impact on the product before, during, and after it’s produced, including suppliers and downstream companies.
2.
What is the process of designing, monitoring, and altering supply chains to make them as efficient as possible called? a) Logistics management. b) Marketing channel management. c) Supply chain management. d) Procurement.
Supply chain management.
.
Which of the following is a reason why a firm might choose to outsource a task or business function? a) To increase their direct control over all aspects of production. b) Because it is always cheaper to perform tasks internally. c) If another company can perform the task better or more cost-effectively. d) To avoid focusing on their core competencies.
If another company can perform the task better or more cost-effectively.
What is the term for hiring an organisation to perform a task your firm previously did itself? a) Insourcing. b) Nearshoring. c) Offshoring. d) Outsourcing.
Outsourcing.
5.
What is a potential drawback of outsourcing? a) Increased control over product quality. b) Closer proximity to customers. c) Potential loss of control over product quality and safety. d) Reduced time for products to reach consumers.
Potential loss of control over product quality and safety.
What is it called when a company moves some of its business functions to a country closer to its headquarters? a) Offshoring. b) Nearshoring. c) Insourcing. d) Outsourcing.
Nearshoring.
What is the term for when firms move activities, such as logistics, back in-house? a) Outsourcing. b) Offshoring. c) Nearshoring. d) Insourcing.
Insourcing.
What should be the ultimate focus of any insourcing and outsourcing decision a company makes? a) Minimising production costs. b) Increasing the number of supply chain partners. c) The customer and their product and service requirements. d) The latest trends in supply chain management.
The customer and their product and service requirements.
Why is demand planning important for companies? a) It primarily focuses on past sales data without considering other factors. b) It guarantees that a company will never run out of stock. c) It helps predict the demand for a product, which affects production, purchasing, and contingency planning. d) It eliminates the need for inventory control
It helps predict the demand for a product, which affects production, purchasing, and contingency planning.
What is supply chain visibility? a) Limiting the amount of information shared with supply chain partners to protect proprietary data. b) A situation where only a company’s internal departments can see how well the chain is working. c) A situation in which supply chain partners share information with one another so they can see how well the chain is working. d) The use of only basic transaction information between companies.
A situation in which supply chain partners share information with one another so they can see how well the chain is working.
What is inventory control? a) The process of only counting inventory at the end of the day. b) A strategy to always maximise the amount of safety stock on hand. c) The process of ensuring your firm has an adequate amount of products and a wide enough assortment of them to meet your customers’ needs. d) Ignoring demand forecasts to maintain stable production levels.
The process of ensuring your firm has an adequate amount of products and a wide enough assortment of them to meet your customers’ needs.
What occurs when a firm runs out of a product a customer wants to buy? a) Safety stock. b) Shrinkage. c) Stockout. d) Overstock.
Stockout.
What is backup inventory that serves as a buffer in case the demand for a product surges or the supply drops off called? a) Inventory surplus. b) Just-in-time inventory. c) Safety stock. d) Vendor-managed inventory.
Safety stock.
What is a term used to describe a reduction or loss in inventory due to shoplifting, employee theft, paperwork errors, and supplier fraud? a) Stockout. b) Obsolescence. c) Deterioration. d) Shrinkage.
Shrinkage.
What is an electronic tag that emits radio signals to track a product? a) Barcode. b) Radio-frequency identification (RFID) tag. c) Stock-keeping unit (SKU). d) Electronic data interchange (EDI).
Radio-frequency identification (RFID) tag.
What is a warehouse or storage facility where the emphasis is on processing and moving goods on to other parts of the supply chain? a) Traditional warehouse. b) Safety stock location. c) Distribution centre. d) Retail outlet.
Distribution centre.
What is an electronic format companies use to exchange business documents from computer to computer rather than via paper or email? a) RFID. b) SKU. c) Electronic data interchange (EDI). d) Barcode.
Electronic data interchange (EDI).
What does logistics refer to in the supply chain context? a) The design of marketing channels. b) The forecasting of product demand. c) The physical flow of materials in the supply chain. d) The process of selecting suppliers.
The physical flow of materials in the supply chain.
What is cross-docking? a) Storing products in a warehouse for an extended period until prices increase. b) A practice in logistics where products from a supplier are unloaded from one transportation vehicle and loaded directly onto outbound vehicles with minimal or no storage in between. c) Shipping products directly to consumers without using intermediaries. d) Using only one mode of transportation for moving goods.
A practice in logistics where products from a supplier are unloaded from one transportation vehicle and loaded directly onto outbound vehicles with minimal or no storage in between.
Which of the following is an advantage of electronic delivery of products? a) It is suitable for all types of goods and services. b) It always offers a better customer experience than physical delivery. c) It can be faster and more efficient for certain types of products. d) It eliminates the need for any supply chain management.
It can be faster and more efficient for certain types of products.
What is the importance of being able to trace products in the supply chain for organisations? a) It primarily benefits only the end consumer. b) It increases the likelihood of stockouts. c) It helps with inventory management, quality control, and responding to issues like recalls. d) It reduces supply chain visibility among partners.
It helps with inventory management, quality control, and responding to issues like recalls.
What is reverse logistics? a) The process of moving raw materials to manufacturers. b) The shipment of finished goods to retailers. c) The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal [70, definition inferred from context]. d) The transportation of goods from distribution centres to warehouses.
The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.
Why do marketing professionals care about supply chain decisions? a) Supply chain decisions only affect the manufacturing and logistics departments. b) Marketing professionals are solely responsible for downstream activities. c) Supply chain decisions impact product availability, costs, and ultimately customer satisfaction, which are key marketing concerns. d) Marketing has no role to play in upstream activities.
Supply chain decisions impact product availability, costs, and ultimately customer satisfaction, which are key marketing concerns.
Which of the following factors might a company consider when evaluating the performance of its supply chain partners? a) Only the price of the goods or services provided. b) Solely the size and reputation of the partner company. c) Reliability, efficiency, cost-effectiveness, and their impact on customer value. d) The partner’s marketing strategies and promotional activities.
Reliability, efficiency, cost-effectiveness, and their impact on customer value.
