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Fundamentals

Technically speaking, which of the following combinations of firms is sufficient to constitute a Supply Chain

. Any network of suppliers
. Two suppliers and a customer
. A supplier, a nucleus firm, and a customer
. Two manufacturers and a distributor
. All of the above
True or False? Supply chain management can be applied only to supply chains with a manufacturing company in the middle.

. True
. False
Which of the following processes is part of the SCOR process model?

. Customer relationship management
. Design
. Return
. Marketing
When Henry Ford organized Ford Motor Company to include raw materials extraction and dealerships as well as his assembly lines, he created which of the following?

. Vertical Supply Chain
. Lateral Supply Chain
. U.S. equivalent of keiretsu
. Monopoly
Which of the following is the primary benefit of a vertical supply chain strategy?

. Multiorganization connectivity along the chain
. Economies of scale at each supply chain node
. Control
. Focus on core functions
Which of the following pieces of software exists in versions with the power to tie together supply chain partners?

. ERP
. MRP
. MRP II
. Closed loop MRP
True or false? In a "push" chain, the flow of product is driven by customer demand

. True
. False
True or false? The bullwhip effect is likely to be more pronounced in a push-activated chain than a pull-activated supply chain.

. True
. False
When a retailer protects demand data instead of sharing them with supply chain partners, what does the supply chain lacks?

. Net value
. Variability
. Velocity
. Visibility
Match the description below to the type of product it characterizes: High Margins

. Innovative products
. Functional Products
Match the description below to the type of product it characterizes: Stable Demand

. Innovative products
. Functinal Products
Match the description below to the type of product it characterizes: Relatively frequent stockouts

. Innovative products
. Functional product
Match the description below to the type of product it characterizes: Wide margin of forecast error

. Innovative product
. Functional product
Match the description below to the type of product it characterizes: Relatively long life cycles

. Innovative products
. Functinal products
What of the following would be an appropiate key indicator for an innovative product's supply chain?

. Lean Inventory
. Time-to-market
. Low-cost component supplier
. Integral design
The term "backward integration" refers to which of the following?

. Offshoring
. Reverse supply chain
. Supply chain management before advanced technology was available
. Mergers and acquisitions
True or false? It's best to ignore the landed cost when comparing competing offshore and onshore suppliers.

. True
. False
Which of the following is true of a supply chain process key performance indicator?

. It should promote collaborative behavior across functions
. It should focus on one area or department
. It should be disconnected from overall strategies
. It should ignore interrelationships and interdependencies
Which of the following might be a supply chain KPI for product merchandizing?

. Scrap
. Holding cost
. Total supply chain inventory turns
True or false? The balanced scorecard is intended as a scorecard for tracking business performance without reference to financial impact

. True
. False
True or false? The most effective use of a balanced scorecard is to stimulate a brainstorming session to fill up the four scorcards with as many innovative ideas as possible

. True
. False
In kaizen, change is implemented by which of the following?

. Board of directors
. Team of executives
. Middle management
. Team including employees
True of false? Continous improvement is one aspect of total quality management

. True
. False
If a financial services firm designs an initiative to improve its sales process to the point that its closing ratio at least equals a best-in-class benchmark, it wants the average ratio to be equal to which of the following?

. Ratio of the best salesperson in the firm
. Ratio of the best salesperson in the financial industry
. Ratio of the best firm in the financial industry
. Ratio of the best firm in any industry
The goal of six-sigma process improvement is to reduce defects to a rate of no more than which of the following?

. 6.6 in a million
. 3.4 in a million
. 1 in a million
. Zero
Which of the following is based upon the 80-20 rule?

. Control chart
. Defect measurement
. Root cause analysis
. Pareto Chart
According to six-sigma principles, the definition of quality is determined by which of the following?

. End customer
. Executive-level management
. Employee process improvement team
. ISO 9000 handbook
The use of visual signals (kanban) is generally associated with which of the following?

. Order batching
. Level production
. JIT
. Six sigma
In a work cell, a group of employees deals primarily with which of the following?

. A single product
. A grouping of products with similar manufacturing profiles
. A single, multifunction machine
. Large lot sizes
True or false? One goal of JIT is always to have a buffer in front of every work center to keep the process flowing smoothly.

. True
. False

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