MQM 227 - Chapter 10 Questions and Answers 100% Correct
1. The design and management of seamless, value-added processes across organizational
boundaries to meet the real needs of the end customer is called:
A. Demand management
B. Distribution channel management
C. Supply chain management
D. Logistics management —Answer: C. Supply chain management
2. Which of the following statements is NOT true regarding supply chain operations?
A. All elements of the supply chain are interconnected and dependent on each other.
B. Demand changes by the end user can create a bullwhip effect in the supply chain.
C. With perfect information at all levels of the supply chain, there will not be a bullwhip effect.
D. Time lags in the supply chain serve to create fluctuations in orders and inventories. —
Answer: C. With perfect information at all levels of the supply chain, there will not be a
bullwhip effect.
3. The five measures of supply chain performance are:
A. Cost, quality, flexibility, delivery, and time
B. Cost, quality, time, delivery, and reliability
C. Inventory, quality, time, delivery, and flexibility
D. Inventory, cost, quality, time, and delivery —Answer: A. Cost, quality, flexibility, delivery,
and time
4. The average cash-to-cash cycle is defined as:
A. Days in inventory + Days in account receivable + Days in accounts payable
B. Days in inventory - Days in account receivable + Days in accounts payable
C. Days in inventory + Days in account receivable - Days in accounts payable
D. Days in inventory - Days in account receivable - Days in accounts payable —Answer: C.
Days in inventory + Days in account receivable - Days in accounts payable
5. Backward or upstream supply chain flows include:
A. Information
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, B. Monetary payments
C. Materials
D. All of the above —Answer: D. All of the above
6. Which of the following is NOT a characteristic of changes in structure?
A. Are long-range in nature and require considerable capital.
B. Include changes in capacity, facilities, process technology, and vertical integration.
C. Lead to changes in information systems.
D. Are related to bricks and mortar. —Answer: C. Lead to changes in information systems.
7. Which of the following is a form of infrastructure change?
A. Process simplification
B. Product redesign
C. Changes in information systems
D. Forward integration —Answer: C. Changes in information systems
8. Which of the following is NOT true of vertical integration?
A. Leads to greater flexibility to changing technology.
B. Can result in a loss of economies of scale.
C. Helps achieve control of the supply chain.
D. Reap the profits of the supplier or distributor when there is an attractive return from the
investment. —Answer: A. Leads to greater flexibility to changing technology.
9. Which of the following is NOT true about supply chain dynamics?
A. The supply chain is a highly interactive system.
B. There is an accelerator effect in the supply chain due to replenishment lead times.
C. The best way to improve the supply chain is to increase the total replenishment time and to
feed back actual demand information to all levels.
D. All of the above statements are true. —Answer: C. The best way to improve the supply
chain is to increase the total replenishment time and to feed back actual demand information to
all levels.
11. Which of the following is NOT a specific measure of supply chain performance?
A. Quality
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1. The design and management of seamless, value-added processes across organizational
boundaries to meet the real needs of the end customer is called:
A. Demand management
B. Distribution channel management
C. Supply chain management
D. Logistics management —Answer: C. Supply chain management
2. Which of the following statements is NOT true regarding supply chain operations?
A. All elements of the supply chain are interconnected and dependent on each other.
B. Demand changes by the end user can create a bullwhip effect in the supply chain.
C. With perfect information at all levels of the supply chain, there will not be a bullwhip effect.
D. Time lags in the supply chain serve to create fluctuations in orders and inventories. —
Answer: C. With perfect information at all levels of the supply chain, there will not be a
bullwhip effect.
3. The five measures of supply chain performance are:
A. Cost, quality, flexibility, delivery, and time
B. Cost, quality, time, delivery, and reliability
C. Inventory, quality, time, delivery, and flexibility
D. Inventory, cost, quality, time, and delivery —Answer: A. Cost, quality, flexibility, delivery,
and time
4. The average cash-to-cash cycle is defined as:
A. Days in inventory + Days in account receivable + Days in accounts payable
B. Days in inventory - Days in account receivable + Days in accounts payable
C. Days in inventory + Days in account receivable - Days in accounts payable
D. Days in inventory - Days in account receivable - Days in accounts payable —Answer: C.
Days in inventory + Days in account receivable - Days in accounts payable
5. Backward or upstream supply chain flows include:
A. Information
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, B. Monetary payments
C. Materials
D. All of the above —Answer: D. All of the above
6. Which of the following is NOT a characteristic of changes in structure?
A. Are long-range in nature and require considerable capital.
B. Include changes in capacity, facilities, process technology, and vertical integration.
C. Lead to changes in information systems.
D. Are related to bricks and mortar. —Answer: C. Lead to changes in information systems.
7. Which of the following is a form of infrastructure change?
A. Process simplification
B. Product redesign
C. Changes in information systems
D. Forward integration —Answer: C. Changes in information systems
8. Which of the following is NOT true of vertical integration?
A. Leads to greater flexibility to changing technology.
B. Can result in a loss of economies of scale.
C. Helps achieve control of the supply chain.
D. Reap the profits of the supplier or distributor when there is an attractive return from the
investment. —Answer: A. Leads to greater flexibility to changing technology.
9. Which of the following is NOT true about supply chain dynamics?
A. The supply chain is a highly interactive system.
B. There is an accelerator effect in the supply chain due to replenishment lead times.
C. The best way to improve the supply chain is to increase the total replenishment time and to
feed back actual demand information to all levels.
D. All of the above statements are true. —Answer: C. The best way to improve the supply
chain is to increase the total replenishment time and to feed back actual demand information to
all levels.
11. Which of the following is NOT a specific measure of supply chain performance?
A. Quality
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