Business

Chapter 1

Understanding the Supply Chain

True/False

1. A supply chain includes only the organizations directly involved in supplying components needed for manufacturing.

Answer: False

Difficulty: Moderate

1. A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request.

Answer: True

Difficulty: Moderate

1. A supply chain could be more accurately described as a supply network or supply web.

Answer: True

Difficulty: Moderate

1. The objective of every supply chain is to maximize the overall value generated.

Answer: True

Difficulty: Easy

1. The objective of every supply chain is to maximize the value generated for the manufacturing component of the supply chain.

Answer: False

Difficulty: Moderate

1. Every supply chain must include all 5 stages.

Answer: False

Difficulty: Easy

1. 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: True

Difficulty: Moderate

1. 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: False

Difficulty: Moderate

1. 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: True

Difficulty: Easy

1. 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: False

Difficulty: Easy

1. The objective of the customer arrival process is to maximize the conversion of customer arrivals to customer orders.

Answer: True

Difficulty: Moderate

1. 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: False

Difficulty: Moderate

1. 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: True

Difficulty: Moderate

1. The objective of customer order entry is to maintain a record of product receipt and complete payment.

Answer: False

Difficulty: Hard

1. The replenishment cycle occurs at the retailer/distributor interface.

Answer: True

Difficulty: Hard

1. The replenishment cycle occurs at the distributor/manufacturer interface.

Answer: False

Difficulty: Hard

1. The replenishment cycle is initiated when a supermarket runs out of stock of a particular item.

Answer: True

Difficulty: Hard

1. The replenishment cycle is initiated when customers load items intended for purchase into their carts.

Answer: False

Difficulty: Hard

1. The manufacturing cycle occurs at the distributor/manufacturer interface.

Answer: True

Difficulty: Moderate

1. The manufacturing cycle occurs at the manufacturer/supplier interface.

Answer: False

Difficulty: Moderate

1. The production scheduling process in the manufacturing cycle is similar to the order entry process in the replenishment cycle.

Answer: True

Difficulty: Hard

1. The production scheduling process in the manufacturing cycle is similar to the order fulfillment process in the replenishment cycle.

Answer: False

Difficulty: Hard

1. The procurement cycle occurs at the manufacturer/supplier interface.

Answer: True

Difficulty: Easy

1. The procurement cycle occurs at the retailer/distributor interface.

Answer: False

Difficulty: Easy

1. 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: True

Difficulty: Moderate

1. 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: False

Difficulty: Moderate

1. 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: True

Difficulty: Moderate

1. 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: False

Difficulty: Moderate

1. Pull processes may also be referred to as reactive processes.

Answer: True

Difficulty: Easy

1. Pull processes may also be referred to as speculative processes.

Answer: False

Difficulty: Easy

1. Push processes may also be referred to as speculative processes.

Answer: True

Difficulty: Easy

1. Push processes may also be referred to as reactive processes.

Answer: False

Difficulty: Easy