26 May Question Chapter 9 Test—Supply Chain Design TRUE/FALSE: Circle Your Answer
Question
Chapter 9 Test—Supply Chain Design
TRUE/FALSE: Circle Your Answer
1. True or False A supply chain is broader in scope than the value chain, and encompasses all pre- and post-production activity.
2. True or False Supply chains often must be redesigned when a firm’s product lines and markets change or expand.
3. True or False The basic purpose of a supply chain is to coordinate communication among employees and customers in order to maximize customer satisfaction.
4. True or False Distribution centers are warehouses that act as intermediaries between suppliers and factories.
5. True or False Orders are passed upstream in a supply chain, while materials and finished goods are sent downstream in a supply chain.
6. True or False In the Supply Chain Operations Reference (SCOR) model, the “Make” step involves managing orders, transportation, and distribution to provide goods and services.
7. True or False In the Supply Chain Operations Reference (SCOR) model, the “Plan” step involves identifying and selecting suppliers.
8. True or False Contract manufacturers can provide the benefit of lower total costs resulting from economies of scale.
9. True or False In designing an efficient supply chain, an organization would need high levels of inventory stored in many small distribution centers.
10. True or False Wal-Mart uses a push supply chain.
11. True or False A supply chain must be either a push or a pull system.
12. True or False Accurate forecasts are more critical to a pull system.
13. True or False For Dell Inc., the push-pull boundary is very early in the supply chain, where suppliers store inventory for frequent deliveries.
14. True or False An automobile company that installs satellite radio at the dealership instead of at the factory is applying a postponement strategy.
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15. True or False If a multisite organization has a stable customer benefit package and many identical and standardized facilities, then a responsive supply chain is the best design.
16. True or False The bullwhip effect results from order amplification in the supply chain.
17. True or False The bullwhip effect could be reduced if all members of the supply chain would use demand data from the point of the supply chain closest to the customer.
18. True or False Large order sizes and frequent price changes will reduce the bullwhip effect in a supply chain.
19. True or False The facility location decision must attempt to minimize the combined cost of producing the good or service and delivering them to customers.
20. True or False A great servicescape and facility layout can usually overcome a poor location decision.
21. True or False Both economic and noneconomic factors should play an important role in location decisions in supply and value chains.
22. True or False The center-of-gravity method determines the best X and Y coordinates (location) for multiple facilities by finding a central location and then assigning the facilities around the periphery of that location.
23. True or False The center-of-gravity model minimizes the weighted distance between the facility to be located and its supply and demand points.
24. True or False Water transportation is vital to the efficiency of most consumer-goods supply chains.
25. True or False With vendor-managed inventory, a manufacturer monitors and managers inventory for a customer.
MULTIPLE CHOICE: Circle Your Answer
26. Which one of the following statements is false?
| a. | Historically, General Motors used to push system to get vehicles to their dealers. |
| b. | Wal-Mart is a good example of a highly efficient supply chain. |
| c. | Sony is a good example of a global contract manufacturer. |
| d. | Postponement is the process of delaying product customization until the product is closer to the customer at the end of the supply chain. |
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27. Which one of the following statements is false?
| a. | Boeing’s new 787 Dreamliner airplane has encountered many startup and supply chain coordination problems. |
| b. | At Dell, Inc. customer financing of purchases is a post-production service in their value chain. |
| c. | At Dell, Inc. installation, warranty, and field repair services are normally done on a prepaid contract basis with customers. |
| d. | Federal Express has over one million pickup and delivery sites and therefore, is a good example of multisite management. |
28. Which of the following is not a basic function of the Supply Chain Operations Reference (SCOR) model?
| a. | source |
| b. | make |
| c. | deliver |
| d. | control |
29. Which one of the following statements is true about vendor-managed inventory (VMI)?
| a. | VMI is a form of outsourcing. |
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