1. Cost-efficient supply chains

Select one:

a) respond quickly to demand.

b) have higher margins because price is not a prime customer driver.

c) maintain buffer inventory to deal with demand/supply uncertainty.

d) focus on cost minimization, for example, by keeping factory utilization high.

2. Between 1993 and 2006, Dell's competitive strategy was to provide a large variety of customizable products at a reasonable price. Given the focus on customization, Dell's supply chain was designed to

Select one:

a) be responsive.

b) provide a standard product.

c) operate on a low-cost basis.

d) provide sustainable products.

3. Excess capacity

Select one:

a) allows a facility to be very flexible and to respond to wide swings in the demands placed on it.

b) costs money and therefore can decrease efficiency.

c) requires proximity to customers and the rest of the network.

d) both a) and b)

e) a), b) and c) are correct.

Session 7: Push/Pull View - Postponement

4. The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design, because

Select one:

a) it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.

b) it specifies the roles and responsibilities of each member of the supply chain.

c) it clearly defines the processes involved and the owners of each process.

d) it focuses on processes that are external to the firm.

e) it focuses on processes that are internal to the firm.

5. We learned in the lecture that Postponement means to delay product differentiation or customization until closer to the time the product is sold. Postponement can be a powerful tool to improve supply chain management because

a) generic (non-differentiated) products can be made-to-stock until the customer demand is known and then the manufacturing completed with a short lead time.

b) the shorter the lead time, the more accurate the forecast, so if the differentiation can be pushed to late in the production process, then the forecast can be updated to decide which configurations to make.

c) using common configurations for a base product can be used to take advantage of economies of scale in production and purchasing.

d) all of the statements are reasons that postponement can be a powerful tool to improve supply chain management.

e) none of the statements are reasons that postponement can be a powerful tool to improve supply chain management.

Session 7: Supply Chan Planning Planning Decision Phases

6. Where in the Planning Systems Matrix does this decision fall? Explain your reasoning.

An automobile producer establishes a sourcing contract with a supplier of cockpit modules.

Select one:

a) long-term / production

b) long-term / procurement

c) mid-term / sales

d) mid-term / distribution

e) mid-term / production

7. Where in the Planning Systems Matrix does this decision fall? Explain your reasoning.

Determination of production volumes for a 12 month horizon.

Select one:

a) long-term / production

b) long-term / procurement

c) mid-term / sales

d) mid-term / distribution

e) mid-term / production

8. Where in the Planning Systems Matrix does this decision fall? Explain your reasoning.

Increase the shipment to an outlet to exploit the lower costs of a full-truck-load shipment.

Select one:

a) mid-term / production

b) mid-term / procurement

c) mid-term / sales

d) short-term / distribution

e) short-term / procurement

Session 7: Supply Chain Coordination Bullwhip Effect and Strategic Alliances

9. The situation in which fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers is known as

Select one:

a) market fluctuations.

b) the whiplash effect.

c) the bullwhip effect.

d) lack of visibility.

10. A retailer shares POS (Point of Sales) data with their supplier. This should have the effect of

Select one:

a) reducing the bullwhip effect in the supply chain because the end demand is seen by the suppler.

b) increasing the bullwhip effect in the supply chain because the end demand is seen by the suppler.

c) increasing the bullwhip effect in the supply chain because the different stages will have a different view of customer demand.

d) reducing the bullwhip effect in the supply chain because there will be no reason for shortage gaming.

11. VMI (Vendor Managed Inventory)" is a method in which a vendor, i.e. a material supplier, holds and manages materials and parts of their customers. VMI between Procter & Gamble, Co and Wal-Mart Stores, Inc. is a famous example of a partnership transaction between a diaper manufacturer and their retailer.

From our lecture notes, how does VMI improve supply chain coordination? Select one:

a) The supplier treats the retailer with priority compared to all other retailers it serves.

b) The supplier uses POS data in order to replenish immediately every time the retailer sells the product.

c) The supplier determines inventory levels and inventory replenishment policies at the retailer in order to optimize production/shipments.

d) The retailer does not share forecast data with the supplier in order not to impact the production plans.