MKTG 351 Chapter 13
Questions and Complete
Solutions Graded A+
Supply Chain - Answer: The connected chain of all of the business entities, both internal and external to
the company, that perform or support the logistics function.
Supply Chain Management - Answer: A management system that coordinates and integrates all of the
activities performed by supply chain members into a seamless process, from the source to the point of
consumption, resulting in enhanced customer and economic value.
Benefits of Supply
Chain Management - Answer: Lower inventory, transportation, warehousing, and packaging costs
Greater supply chain flexibility
Improved customer service
Higher revenues
Increased performance and profitability
Logistic Costs in Emerging
Economies - Answer: In Latin America logistic costs are ~ 25% of product value vs ~ 10% for Developed
economies
Because of poor infrastructure inventory levels are more than twice the US figure
The additional holding is estimated to cost these economies more than 2% of GDP
Supply Chain Integration - Answer: A systems approach where the overall performance of the chain is
greater than the sum of its parts.
Occurs when multiple functional areas coordinate business processes to seamlessly link to one another.
, Internal Integration - Answer: Management practices that reflect a highly coordinated effort between
supply chain firms or across business functions within the same or different firms are said to be
"integrated."
From an internal perspective, the very best companies develop a managerial orientation toward
demand-supply integration (DSI).
Relationship
Integration - Answer: The ability of two or more companies to develop social connections that serve to
guide their interactions when working together.
Measurement
Integration - Answer: The performance assessment of the supply chain as a whole that also holds each
individual firm or business unit accountable for meeting its own goals.
Technology and planning integration - Answer: The creation and maintenance of information technology
systems that connect managers across and through the firms in the supply chain.
Material and service supplier integration - Answer: Requires firms to link seamlessly to those outsiders
that provide goods and services to them so that they can streamline processes and provide quality
customer experiences.
Customer Integration - Answer: A competency that enables firms to offer long-lasting, distinctive, value-
added offerings to those customers who represent the greatest value to the firm or supply chain.
Key Business Processes - Answer: 1) Customer relationship management
2) Customer service management
3) Demand management
4) Order fulfillment
5) Manufacturing flow management
6) Supplier relationship management
7) Product development and commercialization
Questions and Complete
Solutions Graded A+
Supply Chain - Answer: The connected chain of all of the business entities, both internal and external to
the company, that perform or support the logistics function.
Supply Chain Management - Answer: A management system that coordinates and integrates all of the
activities performed by supply chain members into a seamless process, from the source to the point of
consumption, resulting in enhanced customer and economic value.
Benefits of Supply
Chain Management - Answer: Lower inventory, transportation, warehousing, and packaging costs
Greater supply chain flexibility
Improved customer service
Higher revenues
Increased performance and profitability
Logistic Costs in Emerging
Economies - Answer: In Latin America logistic costs are ~ 25% of product value vs ~ 10% for Developed
economies
Because of poor infrastructure inventory levels are more than twice the US figure
The additional holding is estimated to cost these economies more than 2% of GDP
Supply Chain Integration - Answer: A systems approach where the overall performance of the chain is
greater than the sum of its parts.
Occurs when multiple functional areas coordinate business processes to seamlessly link to one another.
, Internal Integration - Answer: Management practices that reflect a highly coordinated effort between
supply chain firms or across business functions within the same or different firms are said to be
"integrated."
From an internal perspective, the very best companies develop a managerial orientation toward
demand-supply integration (DSI).
Relationship
Integration - Answer: The ability of two or more companies to develop social connections that serve to
guide their interactions when working together.
Measurement
Integration - Answer: The performance assessment of the supply chain as a whole that also holds each
individual firm or business unit accountable for meeting its own goals.
Technology and planning integration - Answer: The creation and maintenance of information technology
systems that connect managers across and through the firms in the supply chain.
Material and service supplier integration - Answer: Requires firms to link seamlessly to those outsiders
that provide goods and services to them so that they can streamline processes and provide quality
customer experiences.
Customer Integration - Answer: A competency that enables firms to offer long-lasting, distinctive, value-
added offerings to those customers who represent the greatest value to the firm or supply chain.
Key Business Processes - Answer: 1) Customer relationship management
2) Customer service management
3) Demand management
4) Order fulfillment
5) Manufacturing flow management
6) Supplier relationship management
7) Product development and commercialization
