Term
Term
________ typically move commodities over large distances at lower costs per unit shipped. = Rail
A facility that serves the market where it is located but also assumes responsibility for product
customization, process improvements, product modifications, or product development is = a
contributor facility.
A ________ strategy specifies how the market will be segmented and how the product will be
positioned, priced, and promoted. = Marketing and Sales
A ________ strategy specifies the portfolio of new products that a company will try to develop. =
Product Development
A facility built because of tax incentives, local content requirement, tariff barriers, or high logistics
cost to supply the region from elsewhere with the objective to supply the market where it is located is
= a server facility.
A facility located primarily to obtain access to knowledge or skills that may exist within a certain
region is = an outpost facility.
A facility that creates new products, processes, and technologies for the entire network is = a lead
facility.
A key issue facing Toyota is = design of its global production and distribution network.
All raw materials, work in process, and finished goods within a supply chain are known as = inventory.
Between 1993 and 2006, Dell's competitive strategy was to provide a large variety of customizable
products at a reasonable price. Given the focus on customization, Dell's supply chain was designed to =
be responsive.
Companies in the same industry often select very different distribution networks because = different
companies have different objectives for their supply chain.
Customer value is = the sum of the supply chain surplus and supply chain cost.
Cycle inventory is used because = demand is uncertain and may exceed expectations.
Distribution is a key driver of the overall profitability of a firm because = it directly impacts both the
supply chain cost and the customer experience.
Duties that must be paid when products and/or equipment are moved across international, state,
or city boundaries are referred to as = tariffs.
Efficient supply chains = maximize performance at a minimum cost.
For a company to achieve strategic fit, it must accomplish the following keys: = The overall supply
chain must operate at the lowest cost possible to achieve success.
For any supply chain, = there is only one source of revenue, the customer.
For any supply chain, the source of revenue is generated by = the customer.
If the production technology is very inflexible and product requirements vary from one country
to another, a firm has to set up = local facilities to serve the market in each country.
If a country has very high tariffs, = companies either do not serve the local market or set up
manufacturing plants within the country to save on duties.
If facilities have lower fixed costs, = many local facilities are preferred because this helps lower
transportation costs.
If the technology is flexible, = it becomes easier to consolidate manufacturing in a few large facilities.
In almost all countries, roads, seaports, airports, rail and canals have this in common. = They were
built and/or managed by the government.
known as = facilities.
Moving inventory from point to point in the supply is known as = transportation.
Outbound transportation costs per unit tend to be = higher than inbound costs.
Production technology displays significant economies of scale, = few high-capacity locations are the
most effective.
Retailing in the United States is largely = consolidated.
Seasonal inventory should be used when = a company can rapidly change the rate of its production
system at a very low cost.
Sourcing involves = all of the above
Supply chain surplus involves what two parts? = Customer value and supply chain cost
The ability of the customer to track their order from placement to delivery is = order visibility.
The cost of holding inventory incurred by the shipper's supply chain network is = inventory cost.
The cost of loading/unloading orders, as well as other processing costs associated with
The costs incurred in bringing material into a facility are = inbound transportation costs.
The costs incurred in sending material out of a facility are = outbound transportation costs.
The functions and stages that devise an integrated strategy with a shared objective are referred to as =
scope of strategic fit.
The key players in any transportation that takes place within a supply chain are = the shipper and the
carrier.
The key weakness of the ________ view is that different functions within a firm may have conflicting
objectives. = Intrafunctional scope
The objective of every supply chain is to = maximize the net value generated.
The places in the supply chain network where product is stored, assembled, or fabricated are
The set of business processes required to purchase goods and services is known as = sourcing.
The steps taken to move and store a product from the supplier stage to a customer stage in the supply
chain are referred to as = distribution.
The value chain consists of direct and indirect activities. Which of the following is an indirect activity
for an enterprise? = Human Resources
transportation, is considered = processing cost.
Walmart's supply chain features clusters of stores around distribution centers, which Facilitates =
frequent but inexpensive replenishment at the stores.
Webvan designed a supply chain with large warehouses in several major cities in the United States,
from which groceries were delivered to customer homes. They failed partly because of = higher labor
costs for picking orders.
Where does distribution occur in the supply chain? = Between every pair of stages
Which advice is TRUE for Blue Nile for its strategy and structure? = Continue focusing on their
selling tactics and could re-structure their marketing strategy to reach out to new customers
Which advice is TRUE for Zales for its strategy and structure? = Need to gain control in their inventory
and limit their lower demand
Which mode of transportation is used primarily for petroleum and natural gas? = Pipeline
Which of the following are key components of transportation decisions when designing and operating a
supply chain? = all of the above
Which of the following is NOT a challenge that makes it increasingly difficult for supply chains to
achieve strategic fit? = Decreasing Product Variety
Which of the following is not a major driver of supply chain performance? = All of the above are major
drivers of supply chain performance.
Which of the following is not a major driver of supply chain performance? = Customers
Which of the following is the fastest delivery method of transportation? = Air
Which of the following uses transportation to minimize the total cost (transportation, inventory,
information, and facility) while providing an appropriate level of responsiveness to the customer? =
The shipper
Which of the following would not be a demand and supply characteristic in the later stages of a
product's life cycle? = Product availability is crucial to capturing the market.
Which of these statements about Dell's supply chain is best? = Dell's initial success was largely driven
by their Assembly→Customer supply chain linkage.
Which transportation network design option uses a combination of other options to reduce the cost and
improve responsiveness of the supply chain? = Tailored network
With the ________ view firms attempt to align all operations within a function. In this view all supply
chain functions including sourcing, manufacturing, warehousing, and transportation must align their
strategy to minimize total functional cost. = Intraoperation scope