Chapter Nine

Logistics/Supply-Chain Management

.Please choose the best answer from the four choices:

1. Taken together, total supply chain costs consume about ______percent of corporate annual revenue across all industries. A. 7 to 12 percent B. 70 to 80 percent C. 30 to 40 percent D. about 50 percent 2. Logistics/supply-chain management is the synchronized movement of _______ the production and delivery of goods and services to the customer. A. inputs B. inputs and outputs C. outputs D. none of the above 3. It is presumed that managing the extended enterprise will increasingly focus on: A. Physical network management B. Information and knowledge network management C. Government management D. Both A and B. 4. Computer-based infrastructure management may include: A. highly automated government customs/cargo clearance systems. B. national EDI systems. C. public bonded warehouses or telecommunications/online network resources. D. All of the above 5. Which is true of Knowles' description of the telegraph-enabled extended supply chains of the late 1800s? A. Traders no longer kept huge stocks since they could get goods swiftly and with absolute certainty. B. They needed less warehousing space. C. They needed less credit from their bankers. D. It sounds much like today's emerging IT-enabled extended supply chains. 6. Because of mechanical and rapid transportation, _____ A. the relative value of nations and commodities were changed. B. traders no longer kept stocks. C. traders began to need more credit from their bankers. D. All of the above. 7. The advantages best-in-class companies possess result from:

They see the entire set of activities from supply points to production points to warehouse/distribution points to the customer as one cross-functional, integrated process. B. They can eliminate handoff times. C. They can eliminate process disconnects across the supply chain. D. All of the above. 8. Which of the following is\are NOT true of the stage of Stunted Logistics Performer? A. Logistics buried at lowest levels of corporate organizations. B. Logistics defined as shipping and warehousing functions. C. Run by shipping clerks with little authority outside the immediate shipping area. D. Logistics defined as shipping function. 9. Presumably, all companies-suppliers, customers, and third parties-can benefit from a more open information flow by using the information to: A. Reduce or eliminate unnecessary inventory B. Improve their planning C. Develop active rather than reactive operations D. Smooth product flows E. Trim cost F. Improve service G. All of the above 10. The relationship between supply chain management and the traditional logistic management is________. A. They have fundamental differences, with no relation to each other. B. They are synonymies, which can be used interchangeably. C. They are highly unified. D. They are closely related. 11. A perfect supply chain involves the cooperation of logistics and information flow between manufacturer, supplier, and customer; the establishment of contract mechanism; supply chain delay strategy and _____________. A. customization on a large scale B. unified purchase C. supplier inventory integration D. sharing in the information

A.

II. Multiple choices:

1. The very term extended enterprise means: A. breaking down a companys outer wall B. extending its strategy, structure, and processes to its core partners. C. extending its management scope and layers. D. breaking down the walls between the inner functions in the enterprise. 2. Which of the following is true of the supply-chain management of today? A. It has become the driving force in the effort to create the extended enterprise. B. The supply chain organization acts as the body of the enterprise, generating the dynamic energy and direction needed for the extended-enterprise network to operate efficiently and exchange inputs and outputs within its system wide borders. C. It also acts as the mind of the extended enterprise, with computer software tracking the

expanding physical production/distribution network map and applying optimization principles to restructure and streamline the network. D. At a more profound level, the supply-chain organization acts as the corporate survival instinct. 3. According to a 1997 supply chain-benchmarking study conducted by the Performance Measurement Group, best in class companies may: A. Enjoy an advantage in total supply chain management cost of 3-6 percent of revenue B. Hold 50-80 percent less inventory than their competitors C. Have a 40-65 percent advantage in cash-to-cash cycle time over average companies D. Both A and B. 4. The evolution of the supply-chain management includes the following stages of: A. Stunted Logistics Performer B. Neophyte Logistics Performer C. Internally Integrated Performer D. Externally Integrated Logistics Performers 5. How many stages are there from the early logistics management development to supply chain management? A. the functions of storage, transport, and procurement began to separate, and each began to operate along B. the stage of the integration of some of the logistics functions C. the stage of the unification of the internal logistics of an enterprise D. the stage of supply chain management 6Judging from different angles, supply chain can mainly be divided into: A. The supply chain as the synonym of the procurement, allotting, and material management. B. The supply chain of logistics unification C. The supply chain considered from the angle of a single enterprise (core enterprise) D. The supply chain related to some certain products or a certain type of product 7. The differences between supply chain management and traditional logistics model are: A. Supply chain management treat all the node enterprises in supply chain an integration, the management thread through the whole logistics process, involving every area of procurement, manufacture, distribution, retail from suppliers to ultimate customers. B. The key of supply chain management is the thought and idea of integration, rather than a simple connection of node enterprises resources. C. Supply chain management stresses and relies on strategic management, which influences and determines the whole supply chain cost and market share occupation. D. Supply chain management has a higher target and tries to reach a high level service through harmonizing cooperating relations. 8. The development of the supply chain management witnessed _____ model and ______ model, forming new enterprise concept and gradually integrated into supply chain management model. A. storage and inventory B. procurement and supply C. transport and supply D. transport and distribution

9. The designing principles of manufacture logistics in enterprise supply chain include: A. minix principle B. liquidity principle C. lowest cost principle D. high activity index principle 11. Increment chain is a type of conceptual model which considers the series of taches on the supply chain ---- products exploitation, _____, manufacture, marketing, ______, and _______ as an integration, which enables the core enterprise to consider the increment process from the angle of supply chain system. A. supply B. market C. transport D. service support

. Translation
1. Full-spectrum visibility and real-time management of increasingly complex, high-velocity operations will be land mark practices of supply-chain management in the twenty-first century these practices are already taking shape in organizations of all kinds. In particular, the emergence of the internet as the global information infrastructure backbone has accompanied the globalization of markets. It has given companies even greater tools for tightly orchestrating relationships across the entire value chain and creating strategic partnerships and operational linkages with a dynamic web of large and small firms spanning all continents. It would be incorrect to assume that Internet architecture is limited to North America or Europe. The New York Times reported recently that 10.48 percent of people in Hong Kong were already using the Internet; in Singapore, the estimate is 8.82 percent. In China, 50 Internet Service Providers are competing for an Internet user base that increased 1,150 percent in 1996 and 800 percent in 1997, according to the Mosaic Group. Even in the leastdeveloped continent, Africa, the Internet is catching on quickly. The consensus of participants in a 1998 workshop sponsored by the World Bank was that, spurred by the lower cost of communications and led by the private sector, the use of the Internet is growing rapidly in Africa. In striving to gain full-spectrum global supply-chain visibility and strategic control over the chain, companies are seeking to create a virtual process across all the functional islandswhether within the trading organization or among trading partners. Message dialogue (structured electronic conversations) between functional islands is an emerging concept to integrate the supply chain in a virtual communications process. Information and knowledge network management, which seeks to exert strategic control over business-to-business and business-to-consumer transactions, conducted via private valueadded networks or the internet. This domain aggressively uses dynamic knowledge management systems to better visualize supply chain flows, capture organization wide learning about operations, and improve performance.

2.

3.

4.

5.