A major supply chain risk is that a company will be blamed by consumers if any of its suppliers engage in unethical activity.
True
Every business organization is part of a supply chain.
True
Inventory velocity refers to the rate at which inventory moves through the supply chain.
True
Cross docking occurs when ships are between two docks so they can be unloaded from both sides, thereby cutting unloading time in half.
False,
Cross docking occurs when the cargo from an inbound truck is offloaded "across a loading dock" and onto an outbound truck.
Logistics involves the flow of goods and the flow of information in a supply chain.
True
Active RFID requires more worker involvement than passive RFID, which can operate independently.
False,
Neither requires much worker involvement.
Strategic sourcing differs from more traditional sourcing in that it emphasizes total cost rather than price.
True
Service organizations often have shorter supply chains than manufacturing organizations.
True
A key different between active and passive RFID tags is that active tags have a power supply.
True
An important goal of purchasing is to obtain low prices for goods and services.
False,
Price is only one of several important factors, and might not be the most important. Other factors include quality, reliability, flexibility, and lead time.
Supplier audits are intended to keep current on suppliers' production or service capabilities.
True
Supply chain visibility is enhanced when supply trucks have a company's name prominently displayed.
False,
Visibility refers to the ability of supply chain partners to access sales and inventory records and other aspects of supply chain partners' operations.
Fill rate refers to the rate at which goods are loaded onto ships or trucks.
False,
The fill rate is the percentage of demand that is filled from supply on hand.
E business enhances the ability of small businesses to compete with large businesses.
True
VMI is a way that companies can reduce costs related to replenishing inventory.
True,
Vendors manage replenishment with their employees.
The term bullwhip effect is most closely related to:
A) assertive customers
B) demand variations
C) inventory turnover
D) return of inventory
E) inventory security
Correct Answer: B) Demand Variations
Cross docking results in cost savings associated with:
A) dock space
B) ordering goods
C) cargo ships
D) storage space
E) down time
Correct Answer: D) Storage Space
(Cross docking avoids warehousing goods.)
Which one is not a requirement of effective supply chain management?
A) low cost
B) trust
C) event management
D) visibility
A) low cost
The term "3PL" is most closely associated with
A) outsourcing
B) e-commerce
C) learning curves
D) mass customization
E) cross docking
A) outsourcing
3PL stands for third party logistics, meaning outsourcing of the logistics function.
The letters RFID are most closely associated with
A) outsourcing
B) tracking items
C) cross docking
D) event management
E) None of these.
B) tracking items
Which one of these would have a negative impact on inventory costs?
A) disintermediation
B) delayed differentiation
C) cross docking
D) bullwhip effect
D) bullwhip effect
Demand oscillations lead to inventory shortages and excesses at various points in the supply chain.
Which one is NOT a reason for increased emphasis on supply chain management?
A) increased levels of outsourcing
B) increased transportation costs
C) trends towards globalization
D) the need to improve internal operations
D) the need to improve internal operations
Feedback: Companies have the least control over external operations, and hence, more need to manage those portions of the supply chain.
Which one of these best describes disintermediation?
A) The mediation of supply chain disputes by a disinterested third party.
B) Elimination of supply chain middlemen.
C) Delayed differentiation.
D) Overcoming the bullwhip effect.
B) Elimination of supply chain middlemen.
Which one of these relates to avoiding warehousing costs?
A) cross docking
B) delayed differentiation
C) disintermediation
D) gatekeeping
E) strategic partnering
A) cross docking
Cross docking involves transferring goods from incoming trucks directly to outbound trucks, thereby avoiding a warehouse.
Which one refers to reverse logistics?
A) cross docking
B) delayed differentiation
C) customer refusal to accept damaged goods
D) returned goods
E) retracing the steps in a supply chain
D) returned goods
Avoidance
Finding ways to minimize the number of items that are returned.
Bullwhip effect
Inventory oscillations become progressively larger looking backward through the supply chain.
Centralized purchasing
Purchasing is handled by one special department.
Closed-loop supply chain
A manufacturer controls both the forward and reverse shipment of product.
Cross-docking
A technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier's truck and loaded onto outbound trucks, thereby avoiding warehouse storage.
Decentralized purchasing
Individual departments or separate locations handle their own purchasing requirements.
Delayed differentiation
Production of standard components and subassemblies, which are held until late in the process to add differentiating features.
Disintermediation
Reducing one or more steps in a supply chain by cutting out one or more intermediaries.
E-business
The use of electronic technology to facilitate business transactions.
Event management
The ability to detect and respond to unplanned events
Fill rate
The percentage of demand filled from stock on hand.
Gatekeeping
Screening returned goods to prevent incorrect acceptance of goods.
Information velocity
The speed at which information is communicated in a supply chain.
Inventory velocity
The speed at which goods move through a supply chain
Logistics
The movement of materials, services, cash, and information in a supply chain
Order fulfillment
The processes involved in responding to customer orders.
Purchasing cycle
Series of steps that begin with a request for purchase and end with notification of shipment received in satisfactory condition.
Reverse logistics
The process of transporting returned items.
Radio frequency identification (RFID)
A technology that uses radio waves to identify objects, such as goods in supply chains.
Strategic partnering
Two or more business organizations that have complementary products or services join so that each may realize a strategic benefit.
Strategic sourcing
Analyzing the procurement process to lower costs by reducing waste and nonvalue-added activities, increase profits, reduce risks, and improve supplier performance.
Supply chain
A sequence of organizations�their facilities, functions, and activities�that are involved in producing and delivering a product or service.
Supply chain management
The strategic coordination of the supply chain for the purpose of integrating supply and demand management.
Supply chain visibility
A major trading partner can connect to its supply chain to access data in real time.
Third-party logistics (3-PL)
The outsourcing of logistics management.
The movement of materials, services, cash, and information in a supply chain.
Traffic management
Overseeing the shipment of incoming and outgoing goods.
Vendor analysis
Evaluating the sources of supply in terms of price, quality, reputation, and service
Vendor-managed inventory (VMI)
Vendors monitor goods and replenish retail inventories when supplies are low.