Revision for Intro to SC and Logistics

What are the main factors that are changing modern supply chains?
 Tick all answers (Technology, terrorism, Globalisation, Empowerment of consumers)
Outsourcing involves
 Hiring foreign nationals to manage parts of the business
The first decade of the twenty-first century was a period of rapid change for organizations,
especially businesses
 True
Complexity in the supply chain is caused by
 All of the answers are correct (Transportation requirements, locations of customers and
suppliers, the number of SKUs).
It is predicted that social networks such as Facebook and Twitter will influence supply
chains because of their impact on customer demand and the speed of information
transfer.
 True.
As the dollar value of a product decreases, its inventory value decreases
 True
One of the major challenges of supply chain management is
 Maintaining the visibility of inventory
A critical outcome of the supply chain is to deliver
 The right product to the right place.
CEOs view SCM initiatives
 Being primarily focused on cost reduction

Traditionally, information has been viewed as flowing in the

opposite direction of products, that is, from the market/customer
back to the wholesalers, manufacturers, and

 None of these answers

Select all relevant primary factors that impact consumer demands:

 A,B,D (Seasonal patterns, Business cycles, Disasters)
Which of the following about customer relationship management is false?
 Customer relationship management is a new concept that is used by service industries.
What are the possible outcomes of Tick all relevant key drivers for strategic sourcing??
 All (Buyer back-orders the product, the seller loses all future revenue, buyer waits until
the product is available, buyer switches seller)
Select all applicable reason(s) that prevents a business firm from managing demand
effectively
 A, B, C (Insufficient attention to collaborative efforts ad strategic plans, Lack of
coordination between business units or departments, too much emphasis on operational
forecasts)
As the level of demand for a product increases, its “stock-out” costs to the manufacturer
 Increase
Which of the following about CPFR is False?
 CPFR consists of 8 major processes.
Which one is not a measurement of customer service?
 Order filled inaccurately
Which of the following is LEAST likely to improve the accuracy of forecasting and planning
models?
 Dynamic marketplace
Forecasting of demand generally involves the use of heuristics and quantitative
techniques
 True
Which fulfilment model works best for service levels?
 Dedicated fulfilment model
The objective of the procurement process is to purchase goods and services at the best
prices, which is the lowest price per unit at the vendor source.
 False

Sustainable supply chain should be about

- Environment responsibility
- Risk management
- Resource efficiencies

Tick all the relevant key drivers for strategic sourcing

- Reduce high costs of globalization & materials
- Increase number of global competitors
- Increase supplier focus
Strategic sourcing as a process is far more broad and comprehensive than procurement.
Overall, the process starts with the formation of a
 Steering committee

When a firm “sources strategically”, it is:

 working together with customers and suppliers in a creative, positive way

Has allowed small organizations and individuals to connect to the world’s knowledge
pools to create business opportunities for collaboration in supply chain
 Technology

Traditional sourcing tends to rely on cheapest cost and economics scale

 true

A push-based strategy works well on supply chains that focus on

 the immediate delivery of off-the-shelf, low cost, standards goods

Packaging is not important in the manufacturing operation

 false

Manufacturing and production operations create form utility

 true

Companies now use strategies that are lean, flexible, or adaptive; they waut for customers
to push products to the market
 False

Lean production relies on

 pull – based systems

In assemble-to-order production
 The finished product is generally a combination of common components and a limited
number of options or accessories made available to the customer

Which of these is not a production method?

 Create-to-order

In an MPR system, this document identifies all of the components required to assemble an
independent demand item
 Bill of materials

Offshoring is a term that means relocating an activity to a contract manufacturer in

another country.
 true

Capital cost can be focused on the cost capital tied up in ___ and the resulting lost
opportunity from investing elsewhere
 inventory

ordering cost is the expense of placing an order and

 does not include the price of the product

WIP inventory are

 Are associated with manufacturing

A(n)___ relationship existed between the cost of lost sales and inventory cost.
 inverse

In the event of a “stock-out” one of the things that could happen is

 extra freight cost may be incurred

Inventory as an asset on the balance sheet and a ___ on the income statement
 variable expense

For an extremely large inventory level that need to be stored but on happens for a small
proportional of time then we should
 Rent outside warehouse space
 Build temporary warehouse

Transportation efficiency promotes ____ in supply chain

 competition

As a product’s susceptibility to loss and damage increases, its transportation cost:

 increase

Which management area in organization does not normally have transportation

responsibilities
 manufacturing
Which department will be response for transportation?
 procurement

The distances in today’s global SC produce

 all the answers are correct
1. More disruptions
2. Longer transit time
3. Higher cost

Which of the these is not a document?

 routing guide

Challenge for the trucking industry includes

 competition

The key financial consideration is choosing between private and 3PL option is
 volume of product being moved

Which is a major category of ocean shipping?

 Liner vessels

Contract warehousing is different than 3PL warehousing

 false

One of the advantages of distributing products through a Distribution Center before it is

delivered to the store is
 lower transportation costs

The drawback of centralized inventory is:

 that is extends lead times and result in higher transportation costs

The drawback of centralized inventory is the long distance to customers, which typically
extends lead times and results in higher transportation costs
 true

A downside of direct shipping is

 can create higher transportation charges

The primary tradeoffs and relationships between resources include the following
 all of the answers are correct
1. space vs equipment
2. people vs space
3. equipment vs people

Proper product slotting can improve labor productivity and generate other advantages for
the organizations and its customers
 true

One important interaction that must be considered is the tradeoff between distribution
and
 Transportation

Customer use distribution KPIs to objectively assess the speed of services provided by the
distribution operation
 False

The primary facility operations focus is:

 on the movement and storage of product

The ____ of demand, customer orders, delivery status, inventory stock levels, and
production schedules provides managers with the knowledge needed to make effective
situation assessment and develop appropriate response.
 Viability
Supply chain software is now available over the Internet. These applications are
collectively known as on-demand software.
 true

Additional Relevant Costs represent the sum of all cost associated with a good service.
These include:
 all are correct
1. Lifecycle cost
2. Transaction costs
3. Quality costs
4. technology costs

Supply chain software that provide a platform for a manufacturers, distributors, and
retailers to aggregate and organize item-related data such as item number, price,
description, and weight is called
 Data synchronizations tools

All of the following are typical requirement when implementing CRM and SRM except
 new technology platform

Advancement in ERP shift the firm’s focus from internal optimization to:
 external relationship management

IoT unconnected technology with sensors, on/off switches and internet linkages that
allow supply chain managers to intelligently link people, processes, data, and things.
 False

ERP systems
 have information elements needed by SCIS applications

All of the following financial benefits of e-business except

 reduced transportation cost
technological capabilities ultimately determine the success of failure of SCIS, rather than
the technology user
 false
It has been that said that information is the lifeline of a business, driving effective
decisions and action. Quality of information is less important, given advances in
technology
 true
The range of relationships with 3PL ranges from being a vendor to being a vertical
supplier.
 False

Customer service can be perceived as (tick all that apply):

 all
1.Philosophy
2. Process
3. Performance measurement
4. Activity

Supply chains create value by

 Increasing profitability and return to shareholders

Distribution facilities can provide numerous services, depending on the requirements of

the supply chain. Which of these is not a typical service?
 Activity

When a firm “sources strategically,” it is

 Working together with customers and suppliers in a creative, positive way

Term of sale established

 When ownership and title of the goods pass from seller to buyer

Economic deregulation sparked competition among carriers in several areas. Which of

these is not an ____ area of competition?
 Services

Which is not part of dependability?

 Convenience
Many organizations have directed significant attention toward working more closely with
supply chain partners, including not only customers and suppliers but also various types of
logistics suppliers
 True

Costa, a famous global Italian-style coffeehouse brand with its main base in the United
Kingdom, has decided to open six locations in Vietnam, two in Hanoi and four in HCM.
After a logistics audit, Costa Vietnam would like to find a single-source local contract
packager who can support them with the production of standard consumer packaging
(with Vietnamese text on the outside ) to be used for packaging some of their coffee and
food item products when selling and delivering to customers. What type of relationship
might be best for this scenario?
 Strategic Alliance

Each of the following is a force leading to increased supply chain integration EXCEPT
 Increase raw material cost
Long Cam is a producer of Vietnamese-style coffee filters for customers in both local and
international markets. Long Cam would like to work with a local supplier of stainless steel
that would be able to sell to them bulk quantities of stainless steel bars on a regular basis
(since demand is high but sometimes can be higher due to seasonal demand) and as
economically as possible. Which driver is the most important for this relationship?
Profit stability/growth

A horizontal relationship refers to firms on the same level in the supply chain
 False

The first stage in the process model for forming and sustaining supply chain relationships
involves the process by which a manufacturer becomes fully aware of its logistics and
supply chain needs
 True

All of the following are typical requirements when implementing CRM and SR EXCEPT
=> new corporate vision

Asset utilization is a very important aspect of  private distribution facilities

Private distribution facilities
KPIs
3PL distribution facilities
Commercial distribution facilities

All of the following describe S&OP EXCEPT  definite near term plan
Results in lower costs
Definite near-term plan
Cross-functional process
Encourages continuous improvement

All of the following are steps to creating integrated supply chain networks except:
 Hire consultants with expertise in building collaborative partnerships
Shifting operations to other countries

Shifting operations to other countries to get an advantage from cheaper labour costs
 Offshoring strategy

There always four possible outcomes and they are:

• the buyer waits until the product is available
• the buyer back-orders the product
• the seller loses current revenue
• the seller loses a buyer and future revenue

Customer service can be perceived as:

 philosophy and performance measurement

Strategic sourcing as a process is far more broad and comprehensive than procurement.
Overall, the process starts with the formation of a
 steering commite

Five core principles are recognized as key drivers to achieve the desired levels of value.
The 5 steps are as follows are correct:
1. Assess the total value
2. Develop individual sourcing strategies
3. Evaluate internal requirements
4. Focus on supplier economics
5. Drive continuous improvement
=> TRUE

which of these is not a freight document?

 routing guide

One of the advantages of distributing products through a Distribution Center before it is

delivered to the store is:
 lower transportation costs

The roles of the distribution center include

 balancing supply and demand, protecting against uncertainty, and promoting
transportation economies

Economic deregulation sparked competition among carriers in several areas. Which of these is not a
services area of competition?
1. When a firm “sources strategically”, it is → working together with customers and suppliers in
a creative, positive way
2. Terms of sale established → when ownership and title of the goods passes from seller to
buyer
3. Distribution facilities can provide numerous services, depending on the requirements of the
supply chain. Which of these is not a typical service → activity
4. Supply chains create value by → increasing profitability and return to shareholders
5. Customer service can be perceived as (tick all that apply) → philosophy, performance
measurement, activity
6. All of the following describes S&OP EXCEPT → definite near term plan
7. Asset utilization is a very important aspect of → private distribution facilities
8. Providing consumers with a selection of many variations of the same basic shirt is an
example of which force presently shaping the economic landscape → the empowered
consumer
9. Many industry initiatives have attempted to create efficiency and effectiveness through the
integration of supply chain activities and processes. Among the various initiatives is/ are →
all of the answers (QR, VMI, ECR)

Part of Pokka's Coffee success as a famous coffee soft drink brand in Japan and all over
Asia is providing customers with a wide line-up of real- brewed coffee blends. To achieve
high product availability in Circle K stores and Big C supermarkets in Vietnam, you work
closely with a top experience 3PL service provider operating locally to reliably manage the
shipping and the restocking of the necessary quantities of different flavour blends to be
stocked at the aforementioned retail outlets. Which driver is the most important for this
relationship?
 customer service

Inventory cost
 framework

CLT > SLT + CT

 Less immediacy and urgency

High value and high volume

→ none of them

Low value and low volume

→ depend on your target and what you want to send