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Chapter 1Understanding the Supply ChainTrue/False1. A supply chain includes only the organizations directly involved in supplying components needed for manufacturing.Answer: FalseDifficulty: Moderate2. A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request.Answer: TrueDifficulty: Moderate3. A supply chain could be more accurately described as a supply network or supply web.Answer: TrueDifficulty: Moderate4. The objective of every supply chain is to maximize the overall value generated.Answer: TrueDifficulty: Easy5. The objective of every supply chain is to maximize the value generated for the manufacturing component of the supply chain.Answer: FalseDifficulty: Moderate6. Every supply chain must include all 5 stages.Answer: FalseDifficulty: Easy7. The cycle view of a supply chain holds that the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.Answer: TrueDifficulty: Moderate8. The cycle view of a supply chain holds that the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.Answer: FalseDifficulty: Moderate9. The push/pull view of a supply chain holds that the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.Answer: TrueDifficulty: Easy10. The push/pull view of a supply chain holds that the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.Answer: FalseDifficulty: Easy11. The objective of the customer arrival process is to maximize the conversion of customer arrivals to customer orders.Answer: True Difficulty: Moderate12. The objective of the customer arrival process is to ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.Answer: FalseDifficulty: Moderate13. The objective of customer order entry is to ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.Answer: TrueDifficulty: Moderate14. The objective of customer order entry is to maintain a record of product receipt and complete payment.Answer: FalseDifficulty: Hard15. The replenishment cycle occurs at the retailer/distributor interface.Answer: TrueDifficulty: Hard16. The replenishment cycle occurs at the distributor/manufacturer interface.Answer: FalseDifficulty: Hard17. The replenishment cycle is initiated when a supermarket runs out of stock of a particular item.Answer: TrueDifficulty: Hard18. The replenishment cycle is initiated when customers load items intended for purchase into their carts.Answer: FalseDifficulty: Hard19. The manufacturing cycle occurs at the distributor/manufacturer interface.Answer: TrueDifficulty: Moderate20. The manufacturing cycle occurs at the manufacturer/supplier interface.Answer: FalseDifficulty: Moderate21. The production scheduling process in the manufacturing cycle is similar to the order entry process in the replenishment cycle.Answer: TrueDifficulty: Hard22. The production scheduling process in the manufacturing cycle is similar to the order fulfillment process in the replenishment cycle.Answer: FalseDifficulty: Hard23. The procurement cycle occurs at the manufacturer/supplier interface.Answer: TrueDifficulty: Easy24. The procurement cycle occurs at the retailer/distributor interface.Answer: FalseDifficulty: Easy25. The cycle view of the supply chain is useful when considering operational decisions, because it specifies the roles and responsibilities of each member of the supply chain.Answer: TrueDifficulty: Moderate26. The cycle view of the supply chain is useful when considering operational decisions, because it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.Answer: FalseDifficulty: Moderate27. The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design, because it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.Answer: TrueDifficulty: Moderate28. The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design, because it specifies the roles and responsibilities of each member of the supply chain.Answer: FalseDifficulty: Moderate29. Pull processes may also be referred to as reactive processes.Answer: TrueDifficulty: Easy30. Pull processes may also be referred to as speculative processes.Answer: FalseDifficulty: Easy31. Push processes may also be referred to as speculative processes.Answer: TrueDifficulty: Easy32. Push processes may also be referred to as reactive processes.Answer: FalseDifficulty: Easy33. All supply chain activities within a firm belong to one of three macro processes CRM, ISCM and SRM.Answer: TrueDifficulty: Easy34. There is a close connection between the design and management of supply chain flows and the success of a supply chain.Answer: TrueDifficulty: EasyMultiple Choice1. Which of the following is not a stage within a typical supply chain?a. Customersb. Retailersc. Wholesalers/Distributorsd. Manufacturerse. All of the above are stages within a typical supply chain.Answer: eDifficulty: Easy2. Which of the following is not a stage within a typical supply chain?a. Customersb. Retailersc. Wholesalers/Distributorsd. Merchandiserse. Component/Raw material suppliersAnswer: dDifficulty: Easy3. Supply chain profitability isa. not correlated to the value generated by the various stages of the supply chain.b. the total profit to be shared across all supply chain stages.c. the difference between the revenue generated from the customer and the overall cost across the supply chain.d. the total revenue generated by the distributor stage of the supply chain.e. b and c onlyAnswer: eDifficulty: Difficult4. Successful supply chain management requires which of the following decision phases?a. supply chain strategy/designb. supply chain planningc. supply chain operationd. all of the abovee. a and b onlyAnswer: dDifficulty: Moderate5. The decision phases in a supply chain includea. production scheduling.b. customer relationship management.c. supply chain operation.d. supply chain orientation.e. all of the aboveAnswer: cDifficulty: Moderate6. The cycle view of a supply chain holds thata. the processes in a supply chain are divided into 2 categories.b. the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.c. all processes in a supply chain are initiated in response to a customer order.d. all processes in a supply chain are performed in anticipation of customer orders.e. None of the above are true.Answer: bDifficulty: Moderate7. The push/pull view of a supply chain holds that a. the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.b. all processes in a supply chain are initiated in response to a customer order.c. all response in a supply chain are performed in anticipation of customer orders.d. the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.e. None of the above are true.Answer: dDifficulty: Moderate8. Which of the following is not a cycle in the supply chain cycle view?a. Analysis cycleb. Customer order cyclec. Replenishment cycled. Manufacturing cyclee. Procurement cycleAnswer: aDifficulty: Moderate9. Which of the following is not a cycle in the supply chain cycle view?a. Customer order cycleb. Replenishment cyclec. Manufacturing cycled. Procurement cyclee. All of the above are part of the supply chain cycle view.Answer: eDifficulty: Moderate10. The customer order cycle occurs at thea. customer/retailer interface.b. retailer/distributor interface.c. distributor/manufacturer interface.d. manufacturer/supplier interface.e. none of the aboveAnswer: aDifficulty: Easy11. Which of the following is not a process in the customer order cycle?a. Customer arrivalb. Customer qualificationc. Customer order entryd. Customer order fulfillmente. Customer order receivingAnswer: bDifficulty: Moderate12. Customer arrival refers toa. the point in time when the customer has access to choices and makes a decision regarding a purchase.b. the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.c. the process where product is prepared and sent to the customer.d. the process where the customer receives the product and takes ownership.e. none of the aboveAnswer: aDifficulty: Moderate13. The objective of the customer arrival process is toa. get the correct orders to customers by the promised due date at the lowest possible cost.b. maintain a record of product receipt and complete payment.c. maximize the conversion of customer arrivals to customer orders.d. ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.e. none of the aboveAnswer: cDifficulty: Easy14. Customer order entry isa. the point in time when the customer has access to choices and makes a decision regarding a purchase.b. the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.c. the process where product is prepared and sent to the customer.d. the process where the customer receives the product and takes ownership.e. none of the aboveAnswer: bDifficulty: Moderate15. The objective of customer order entry is toa. get the correct orders to customers by the promised due date at the lowest possible cost.b. maintain a record of product receipt and complete payment.c. maximize the conversion of customer arrivals to customer orders.d. ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.e. none of the aboveAnswer: dDifficulty: Easy16. Customer order fulfillment refers toa. the point in time when the customer has access to choices and makes a decision regarding a purchase.b. the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.c. the process where product is prepared and sent to the customer.d. the process where the customer receives the product and takes ownership.e. none of the aboveAnswer: cDifficulty: Moderate17. The objective of customer order fulfillment is toa. get the correct orders to customers by the promised due date at the lowest possible cost.b. maintain a record of product receipt and complete payment.c. maximize the conversion of customer arrivals to customer orders.d. ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.e. none of the aboveAnswer: aDifficulty: Easy18. Customer order receiving isa. the point in time when the customer has access to choices and makes a decision regarding a purchase.b. the customer informing the retailer of what they want to purchase and the retailer allocates product to the customer.c. the process where product is prepared and sent to the customer.d. the process where the customer receives the product and takes ownership.e. none of the aboveAnswer: dDifficulty: Moderate19. The replenishment cycle occurs at thea. customer/retailer interface.b. retailer/distributor interface.c. distributor/manufacturer interface.d. manufacturer/supplier interface.e. none of the aboveAnswer: bDifficulty: Easy20. The processes involved in the replenishment cycle includea. retail order receiving.b. retail order entry.c. retail order trigger.d. retail order fulfillment.e. all of the aboveAnswer: eDifficulty: Moderate21. The processes included in the replenishment cycle include all of the following excepta. retail order receiving.b. retail order entry.c. retail order trigger.d. retail order fulfillment.e. none of the aboveAnswer: eDifficulty: Moderate22. The processes included in the replenishment cycle includea. order arrival.b. production scheduling.c. retail trigger.d. manufacturing.e. receiving.Answer: cDifficulty: Moderate23. The replenishment cycle is initiated whena. the customer walks into the supermarket.b. the customer calls a mail order telemarketing center.c. customers load items intended for purchase into their carts.d. a supermarket runs out of stock of a particular item.e. a product is received into stock at a store.Answer: dDifficulty: Hard24. The manufacturing cycle occurs at thea. customer/retailer interface.b. retailer/distributor interface.c. distributor/manufacturer interface.d. manufacturer/supplier interface.e. none of the aboveAnswer: cDifficulty: Easy25. The processes involved in the manufacturing cycle include a. receiving.b. manufacturing and shipping.c. production scheduling.d. order arrival.e. all of the aboveAnswer: eDifficulty: Moderate26. The processes involved in the manufacturing cycle includea. order trigger.b. production scheduling.c. order fulfillment.d. order entry.e. manufacturing order analysis.Answer: bDifficulty: Moderate27. The production scheduling process in the manufacturing cycle is similar to thea. order receiving process in the replenishment cycle.b. order fulfillment process in the replenishment cycle.c. order entry process in the replenishment cycle.d. order trigger process in the replenishment cycle.e. none of the aboveAnswer: cDifficulty: Hard28. The manufacturing and shipping process in the manufacturing cycle is equivalent to thea. order receiving process in the replenishment cycle.b. order fulfillment process in the replenishment cycle.c. order entry process in the replenishment cycle.d. order trigger process in the replenishment cycle.e. none of the aboveAnswer: bDifficulty: Hard29. The procurement cycle occurs at thea. customer/retailer interface.b. retailer/distributor interface.c. distributor/manufacturer interface.d. manufacturer/supplier interface.e. none of the aboveAnswer: dDifficulty: Easy30. The relationship between the manufacturer and supplier during the procurement cycle is very similar to the relationship betweena. customer and retailer.b. retailer and distributor.c. retailer and manufacturer.d. distributor and manufacturer.e. manufacturer and customer.Answer: dDifficulty: Moderate31. The cycle view of the supply chain is useful when considering operational decisions, becausea. it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.b. it specifies the roles and responsibilities of each member of the supply chain.c. processes are identified as either reactive or speculative.d. it focuses on processes that are external to the firm.e. it focuses on processes that are internal to the firm.Answer: bDifficulty: Hard32. The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design, becausea. it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.b. it specifies the roles and responsibilities of each member of the supply chain.c. it clearly defines the processes involved and the owners of each process.d. it focuses on processes that are external to the firm.e. it focuses on processes that are internal to the firm.Answer: aDifficulty: Hard33. Which of the following statements about pull processes is accurate?a. May also be referred to as speculative processes.b. Execution is initiated in anticipation of customer orders.c. At the time of execution, demand must be forecast.d. May also be referred to as reactive processes.e. None of the above are accurate.Answer: dDifficulty: Easy34. Which of the following is not an accurate statement about pull processes?a. May also be referred to as speculative processes.b. Execution is initiated in response to a customer order.c. At the time of execution, demand is known with certainty.d. May also be referred to as reactive processes.e. All of the above are accurate.Answer: aDifficulty: Easy35. Which of the following statements about push processes is accurate?a. May also be referred to as speculative processes.b. Execution is initiated in response to customer orders.c. At the time of execution, demand is known with certainty.d. May also be referred to as reactive processes.e. None of the above are accurate.Answer: aDifficulty: Easy36. Which of the following is not an accurate statement about push processes?a. May also be referred to as speculative processes.b. Execution is initiated in anticipation of customer orders.c. At the time of execution, demand must be forecast.d. May also be referred to as reactive processes.e. All of the above are accurate.Answer: dDifficulty: Easy37. Supply chain macro processes include which of the following?a. C
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