SCM 414 EXAM 2 QUESTIONS & ANSWERS
The _____ structure of a supply chain is the configuration of resources such as
suppliers, factories, warehouses, distributors, technical support centers, engineering
design and sales offices, and communication links.
a. informal
b. virtual
c. network
d. operational - Answers -d. operational
Which of the following supply chain design decisions involves protecting and honoring
patents from other countries?
a. Technology
b. Logistics
c. Sourcing
d. Outsourcing - Answers -a. Technology
__ is a key supply chain design decision that involves selecting suppliers from whom to
purchase.
a. Sourcing
b. Sustainability
c. Logistics
d. Technology - Answers -a. Sourcing
Which of the following statements is true of an efficient supply chain?
a. It works efficiently even when demand for goods and services is unpredictable.
b. It is supported by information technology that provides real-time, accurate information
to managers across the supply chain.
c. It has the ability to respond to market changes faster than a responsive supply chain.
d. It is designed for efficiency and low cost by minimizing inventory and maximizing
efficiencies in process flow. - Answers -d. It is designed for efficiency and low cost by
minimizing inventory and maximizing efficiencies in process flow.
_ focuses on flexibility and responsive service and is able to react quickly to changing
market demand and requirements.
a. An efficient supply chain
b. The center-of-gravity method
c. A responsive supply chain
d. The push-pull boundary - Answers -c. A responsive supply chain
In responsive supply chains, a focus on flexibility and response is best when:
a. goods and services have highly predictable demand.
b. customers require customization.
c. efficiency and low cost are the main competitive priority.
, d. product lines have long life cycles and do not change frequently. - Answers -d.
product lines have long life cycles and do not change frequently.
A _____ produces goods in advance of customer demand using a forecast of sales and
moves them through the supply chain to points of sale, where they are stored as
finished-goods inventory.
a. make-to-order supply chain
b. push system
c. pull system
d. value chain - Answers -b. push system
Which of the following statements is true of a pull system?
a. It works best when there are few distribution centers and products.
b. It views a supply chain from "left to right."
c. It minimizes inventory and production costs.
d. It has an advantage of immediate availability of goods to customers. - Answers -c. It
minimizes inventory and production costs.
In the context of supply chain design trade-offs, _____ refers to acquiring capabilities
toward suppliers.
a. backward integration
b. forward integration
c. outsourcing
d. contract manufacturing - Answers -a. backward integration
Which of the following is true of firms that outsource?
a. They do not have ownership of the outsourced process or function.
b. They acquire capabilities toward suppliers.
c. They integrate both backward and forward.
d. They cannot outsource skilled knowledge work and simple service work. - Answers -
a. They do not have ownership of the outsourced process or function.
____ are businesses that provide integrated services that might include packaging,
warehousing, inventory management, and inbound or outbound transportation.
a. Distribution centers
b. Third-party logistics providers
c. Push-pull enterprises
d. Contract manufacturers - Answers -b. Third-party logistics providers
____ is the building, acquiring, or moving of process capabilities from a domestic
location to another country location while maintaining ownership and control.
a. Offshoring
b. Insourcing
c. Reshoring
d. Outsourcing - Answers -a. Offshoring
The _____ structure of a supply chain is the configuration of resources such as
suppliers, factories, warehouses, distributors, technical support centers, engineering
design and sales offices, and communication links.
a. informal
b. virtual
c. network
d. operational - Answers -d. operational
Which of the following supply chain design decisions involves protecting and honoring
patents from other countries?
a. Technology
b. Logistics
c. Sourcing
d. Outsourcing - Answers -a. Technology
__ is a key supply chain design decision that involves selecting suppliers from whom to
purchase.
a. Sourcing
b. Sustainability
c. Logistics
d. Technology - Answers -a. Sourcing
Which of the following statements is true of an efficient supply chain?
a. It works efficiently even when demand for goods and services is unpredictable.
b. It is supported by information technology that provides real-time, accurate information
to managers across the supply chain.
c. It has the ability to respond to market changes faster than a responsive supply chain.
d. It is designed for efficiency and low cost by minimizing inventory and maximizing
efficiencies in process flow. - Answers -d. It is designed for efficiency and low cost by
minimizing inventory and maximizing efficiencies in process flow.
_ focuses on flexibility and responsive service and is able to react quickly to changing
market demand and requirements.
a. An efficient supply chain
b. The center-of-gravity method
c. A responsive supply chain
d. The push-pull boundary - Answers -c. A responsive supply chain
In responsive supply chains, a focus on flexibility and response is best when:
a. goods and services have highly predictable demand.
b. customers require customization.
c. efficiency and low cost are the main competitive priority.
, d. product lines have long life cycles and do not change frequently. - Answers -d.
product lines have long life cycles and do not change frequently.
A _____ produces goods in advance of customer demand using a forecast of sales and
moves them through the supply chain to points of sale, where they are stored as
finished-goods inventory.
a. make-to-order supply chain
b. push system
c. pull system
d. value chain - Answers -b. push system
Which of the following statements is true of a pull system?
a. It works best when there are few distribution centers and products.
b. It views a supply chain from "left to right."
c. It minimizes inventory and production costs.
d. It has an advantage of immediate availability of goods to customers. - Answers -c. It
minimizes inventory and production costs.
In the context of supply chain design trade-offs, _____ refers to acquiring capabilities
toward suppliers.
a. backward integration
b. forward integration
c. outsourcing
d. contract manufacturing - Answers -a. backward integration
Which of the following is true of firms that outsource?
a. They do not have ownership of the outsourced process or function.
b. They acquire capabilities toward suppliers.
c. They integrate both backward and forward.
d. They cannot outsource skilled knowledge work and simple service work. - Answers -
a. They do not have ownership of the outsourced process or function.
____ are businesses that provide integrated services that might include packaging,
warehousing, inventory management, and inbound or outbound transportation.
a. Distribution centers
b. Third-party logistics providers
c. Push-pull enterprises
d. Contract manufacturers - Answers -b. Third-party logistics providers
____ is the building, acquiring, or moving of process capabilities from a domestic
location to another country location while maintaining ownership and control.
a. Offshoring
b. Insourcing
c. Reshoring
d. Outsourcing - Answers -a. Offshoring
