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Supply Chain Management

TRUE/FALSE.Write 'T' if the statement is true and 'F'if the statement is false.
1)Information is distorted as it moves within the supply chain because complete information is not
shared between stages.
2)The bullwhip effect enables different stages of the supply chain to have a consistent estimate of
what demand looks like.
3)Cycle inventoryis the physical inventory in the supply chain due to either production or
purchases demanded by the customer.
4)The inventory profileis a plot depicting the level of inventory over time.
5)A carrier uses transportation to minimize the total cost(transportation, inventory, information,
and facility) while providing an appropriate level of responsiveness to the customer.
6)The vehicle-related costis incurred whether the vehicle is operating or not and is considered
fixedfor short-term operational decisions by the carrier.
7)For many firms,price has traditionally been the only dimension that suppliers have been
compared on.
8)There are many supplier characteristics other than price, such as lead time, reliability, quality,
and design capability that impact the total costof doing business with a supplier.
9)Information makes the supply chain visible to a manager so that he can make decisions to
improve the supply chain's performance.
10)Information must be 100 percent correct in order to make good decisions.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
11)The entire set of business processes required to purchase goods and services is
A)supplier selection.
D)supplier scoring and assessment.
12)Information is
A)crucial to supply chain performance.
B)the key to the success of a supply chain.
C)the supply chain driver that serves as the glue allowing the other three drivers to work
together to create an integrated, coordinated supply chain.
D)all of the above

13)Transportation plays a key role in every supply chain because

A)the costof transportation is inconsequential.
B)products are normally produced and consumed in the same location.
C)products are rarely produced and consumed in the same location.
D)transportation is not a factor in determining profitability.
14)The quantity of inventory that a stage of the supply chain either produces or purchases at a
given time is
A)an order.
B)a shipment.
C)a job.
D)a lot or batch.
E)none of the above
15)A lack of coordination occurs either because
A)information moving between stages gets delayed and distorted.
B)the policies of mostfirmsare contrary to cooperation.
C)different stages of the supply chain have objectives that conflict.
D)all of the above
E)A and C only
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
16)What factors should be considered when making sourcing decisions?
17)Explain the role of information technology in the supply chain.
18)What is the impact of lack of coordination on the performance of the supply chain?
19)What trade-offs do managers need to consider when making transportation decisions?