Supply Chain Management Objective Set 2

Q1: Supply chain decision support pertaining to specific products produced at specific plants in a specific quantity falls under 

Answer

Answer: supply chain decision support at tactical level.

Q2: Which of the following does not fall under supply chain measurement metrics 

Answer

Answer: Transport planning metrics

Q3: Which of the following is not a dashboard 

Answer

Answer: Data warehouse

Q4: For ensuring effective adoption of IT in SCM, a firm should go through the six stages in which the following sequence 

Answer

Answer: Strategy formulation ? Business process design ? Determination of functional requirements ? Business case preparation ? Implementation ? Post-implementation audit

Q5: When the management decides to implement a new system and totally remove the old one, which of the following approach should be adopted 

Answer

Answer: Big bang or cold turkey approach

Q6: IT processes basic business transactions of a firm and increases scale efficiencies of its operations 

Answer

Answer: Correct – True

Q7: Transport execution system falls under IT in supply chain transaction execution 

Answer

Answer: Correct – True

Q8: CPFR reduces the variance between supply and demand 

Answer

Answer: Correct – True

Q9: ERP systems are web-based, open to integrate and interoperate with other systems, and built around modules or components 

Answer

Answer: Wrong – False

Q10: Supply chain decision problems of all levels, such as strategic level, tactical level, and operational level, can be handled by applying optimization methods 

Answer

Answer: Wrong – False

Q11: Supply chain decision support pertaining to both supply planning system and demand planning system come under operational level supply chain decision support system 

Answer

Answer: Wrong – False

Q12: Process-activity-monitoring dashboards display performance metrics and numbers specific to divisional and operational managers 

Answer

Answer: Wrong – False

Q13: When the modules of the new system are gradually introduced, one at a time, using either the big bang approach or the parallel approach, it is known as the phased approach of IT implementation 

Answer

Answer: Correct – True

Q14: Which of the following sequential stages does supply chain integration involve 

Answer

Answer: Islands within an organization ? Internal integration ? External integration

Q15: Which of the following is not true in the case of a centralized system 

Answer

Answer: It can capture local knowledge and skills.

Q16: Which of the following is not true in the case of a decentralized system 

Answer

Answer: It has short lead time.

Q17: Which of the following does not apply in the case of a hybrid system 

Answer

Answer: Non-bottleneck resources are decided centrally.

Q18: Which of the following is not a cause of the bullwhip effect 

Answer

Answer: Aligning incentives across the supply chain

Q19: Which of the following is not considered an incentive offered to the buyers for the purchase of large size orders 

Answer

Answer: Handling of shortage situations

Q20: Which of the following is not a measure for coping with the distortion in demand information 

Answer

Answer: Forecast updating by supply chain partners

Q21: Conflicting objectives may arise in the supply chain from which of the following source(s) 

Answer

Answer: manufacturer versus multi-brand retailer, supplier competing in the end-product market and supplier serving multiple industries

Q22: Which one is not true with respect to the cost impact of supply chain initiative 

Answer

Answer: Type I initiative results in a decrease in the supplier costs, an increase in the customer costs, and a decrease in the overall supply chain costs.

Q23: Which one is not true in respect of interdependence of relationship between the organization and its partner 

Answer

Answer: When the organization is relatively powerful compared to its partner, the relationship is known as ‘Hostage’

Q24: The essential features of Efficient Customer Response (ECR) are 

Answer

Answer: category management, continuous replenishment programme and efficient promotions

Q25: In order to do supply chain integration, firms will have to make corresponding changes in structure, processes, and performance measures 

Answer

Answer: Correct – True

Q26: Most firms have understood the need of external integration and reaped its benefits 

Answer

Answer: Wrong – False

Q27: Internal integration takes care of the trade-off between transportation and inventory carrying costs while shipping goods from the manufacturing plant to the distribution centres 

Answer

Answer: Correct – True

Q28: It is possible to incorporate soft constraints into the centralized system 

Answer

Answer: Wrong – False

Q29: The phenomenon of providing low service to the customers despite keeping high inventories never happens in reality 

Answer

Answer: Wrong – False

Q30: In an internally integrated supply chain, there is seamless flow of materials, funds and information across organizational boundaries 

Answer

Answer: Wrong – False

Q31: Forecast updating employed each entity of the supply chain improves the forecasted demand by incorporating the recent observed demand and as such reduces Bullwhip effect 

Answer

Answer: Wrong – False

Q32: Lot-size based discount helps in reducing the variability in demand across the whole supply chain 

Answer

Answer: Wrong – False

Q33: Trade promotions encourage forward buying behaviour by the customers 

Answer

Answer: Correct – True

Q34: Centralized demand information can completely eliminate bullwhip effect 

Answer

Answer: Wrong – False

Q35: A multi-brand retailer attempts to maintain high product availability at the category level and a comparatively lower service level at the individual brand level 

Answer

Answer: Correct – True

Q36: A steward firm may opt for value appropriation, even though there is no conflict of interest between the supply chain members 

Answer

Answer: Correct – True

Q37: Powerful firms always tend to work with type I initiative 

Answer

Answer: Wrong – False

Q38: In a VMI relationship, both buyer and supplier are likely to gain from the decrease in overall costs of the supply chain even though the buyer does not share demand information and his future plans 

Answer

Answer: Wrong – False

Q39: Which one of the following is/are not true about supply chain restructuring 

Answer

Answer: Absolute shift in the point of differentiation

Q40: Postponing the point of differentiation results in 

Answer

Answer: reduction in inventories, customer service, product obsolescence and the period for which forecasting is carried out at the variant level.

Q41: Postponement strategy gives rise to 

Answer

Answer: product differentiation, high product variety and resequencing of processes

Q42: Under which of the following circumstances will the postponement strategy not be very successful in general 

Answer

Answer: Long lead time of postponed operation

Q43: Longer delivery time in CTO supply chain requires the firm to compensate the customer offering in terms of the 

Answer

Answer: cost, quality and product variety .

Q44: Which one of the following is/are true regarding customer order delivery time 

Answer

Answer: It is a strategic decision and also affects supply chain design decision.

Q45: Which of the following option is not true about the presence of a stock point at a particular stage of the supply chain (Sourcing, Manufacturing, and Distribution) 

Answer

Answer: Option (0, 1, 1) indicates the presence of a stock point at the end of the distribution.

Q46: Which of the following is not true regarding the impact of different variables on the placement of inventory at different stages of the supply chain (Sourcing, Manufacturing, and Distribution) 

Answer

Answer: The variability in demand has an impact on the decision regarding the placement of inventory at the end of the Sourcing, Manufacturing, and Distribution points.

Q47: Point of differentiation, where the product gets identified as a specific variant of the end product, always occurs at a single place 

Answer

Answer: Wrong – False

Q48: Shifting the point of differentiation in no way affects the demand of forecasting of products at an aggregate level 

Answer

Answer: Wrong – False

Q49: Advancing the customer order point indicates a move from MTS to CTO 

Answer

Answer: Correct – True

Q50: Postponing the point of differentiation may give rise to a loss in economies of scale of the operations postponed 

Answer

Answer: Correct – True

Q51: In a CTO supply chain, variant level decisions are made based on a specific order 

Answer

Answer: Correct – True

Q52: Dell Computer Corporation has to keep the inventory of finished products at its manufacturing plants 

Answer

Answer: Wrong – False

Q53: In order to move from the MTS to the CTO supply chain, it is advisable to concentrate either on advancing the customer order or postponing the point of differentiation at any given time, but not both simultaneously 

Answer

Answer: Wrong – False

Q54: With a large number of markets, option (0, 0, 1) is optimal, but with a lesser number of markets in the chain, option (0, 1, 1) is most optimal 

Answer

Answer: Wrong – False

Q55: There is no difference between the agile and the responsive supply chains 

Answer

Answer: Wrong – False

Q56: In the speculative approach, the demand and the order quantity for the entire season are estimated by using speculative forecast 

Answer

Answer: Correct – True

Q57: In the responsive approach, forecasting is not needed for estimating the demand, and the demand as well as the order quantity for the entire season is determined by using the responsive supply chain approach 

Answer

Answer: Wrong – False

Q58: A responsive supply chain is usually more expensive than the supply chain which uses the speculative approach 

Answer

Answer: Wrong – False

Q59: If the demand of two products, X and Y, is negatively correlated and the demand of X goes up, the demand of Y also goes up 

Answer

Answer: Wrong – False

Q60: The benefit of pooling will be higher in the case of negatively-correlated demand 

Answer

Answer: Correct – True

Q61: The firms attempting to become lean at different stages of a supply chain become unduly rigid and inflexible 

Answer

Answer: Correct – True

Q62: Positive correlation among different parameters of risk pertaining to the location of suppliers helps in minimizing supply disruptions 

Answer

Answer: Wrong – False

Q63: Multi-location sourcing allows flexibility in production and sourcing and takes care of supply disruptions 

Answer

Answer: Correct – True

Q64: An agile supply chain takes care of 

Answer

Answer: a high level of both demand and supply uncertainty.

Q65: Products in the fashion goods industry and the high-technology industry suffer from forecast inaccuracy due to 

Answer

Answer: high level of demand uncertainty, a wide range of product variety and short-life cycle of the products.

Q66: Firms engaged in outsourced manufacturing have to be concerned with 

Answer

Answer: disruptions in transportation and freight breaches.

Q67: In the case of differential pricing, demand from the segment paying a lower price arises earlier in time than demand from the segment paying a higher price 

Answer

Answer: Correct – True

Q68: With a view to maximizing profits, revenue management adjusts the pricing of goods or services it offers to its customers and available supply of assets 

Answer

Answer: Correct – True

Q69: In airlines, the cost overstocking implies the lost opportunity for earning higher revenues from high-price customers who will be denied seats because the same has already been allocated to low-price customers 

Answer

Answer: Wrong – False

Q70: In airlines, the cost understocking implies the lost opportunity for earning revenues from low-price customers 

Answer

Answer: Wrong – False

Q71: In airlines, multi-period inventory model is used for finding out the optimum service level and optimum number of seats to be kept reserved for a particular class of travelers 

Answer

Answer: Wrong – False

Q72: In the context of overbooking in hotels or airlines, understocking represents the situation when the actual cancellations are larger than the overbooking done by the hotel or the airline 

Answer

Answer: Correct – True

Q73: In the context of overbooking in hotels or airlines, overstocking represents the situation when the overbooking done by the hotel or the airline is smaller than the actual cancellations 

Answer

Answer: Wrong – False

Q74: The amount kept reserved for the spot market should be such that the expected marginal revenue from the spot market should be higher than the current revenue from a bulk sale in the forward market 

Answer

Answer: Wrong – False

Q75: The two forms of supply chain assets are 

Answer

Answer: capacity and inventory.

Q76: Revenue management is concerned with 

Answer

Answer: the use of pricing to increase the profit generated from a limited supply of supply chain assets.

Q77: In order to make differential pricing effective, which of the following issues are to be dealt with 

Answer

Answer: The firm should structure pricing according to different market segments and also control demand in such a way that the lower segment does not utilize the entire availability of the asset.

Q78: In order to differentiate between different market segments, the firm must 

Answer

Answer: create barriers by identifying product or service attributes that the segments value differently.

Q79: Under which of the following condition(s) is the concept of revenue management is applicable 

Answer

Answer: Capacity is perishable, the same capacity can be used to different submarkets having their own demand curves with different price elasticity and also the firm can create a fence among the relevant submarkets.

Q80: The allocation of supply sources and markets to facilities has a significant impact on the overall supply chain performance of the whole network 

Answer

Answer: Correct – True

Q81: The allocation of supply sources and markets to facilities needs to be examined on a regular basis so that the allocation can be changed as market conditions change 

Answer

Answer: Wrong – False

Q82: The cost minimization model pertaining to network operations suggests that the individual demand of a product occurring at different geographical locations must be satisfied in full by the manufacturing facilities situated at different places 

Answer

Answer: Correct – True

Q83: The profit maximization model pertaining to network operations suggests that the individual demand of a product occurring at different geographical locations need not be satisfied in full by the manufacturing facilities situated at different places if the market is not profitable or the company has supply problems 

Answer

Answer: Correct – True

Q84: The solutions provided by the network optimization models capture the whole picture pertaining to the allocation of markets to facilities or the closure of a particular facility 

Answer

Answer: Wrong – False

Q85: If the production technology displays significant economies of scale, many local locations happen to become highly effective 

Answer

Answer: Wrong – False

Q86: If the production technology is flexible, it becomes more difficult to consolidate manufacturing in a few large facilities 

Answer

Answer: Wrong – False

Q87: High tariffs lead to more production locations within a supply chain network with each location having a lower allocated capacity 

Answer

Answer: Correct – True

Q88: Companies must build appropriate flexibility into the supply chain while designing supply chain networks in order to help counter fluctuations in exchange rates and demand across different countries 

Answer

Answer: Correct – True

Q89: Addition of a new unit at a different location of the existing network will hardly have any impact on the performance of existing units 

Answer

Answer: Wrong – False

Q90: The issues involving the designing of an after-market service network are exactly identical to those of designing a retail network 

Answer

Answer: Wrong – False

Q91: The probability of attracting a customer to a store is inversely proportional to the size of the retail outlet 

Answer

Answer: Wrong – False

Q92: Supply chain network design decisions are concerned with 

Answer

Answer: where the facilities should be located

Q93: Supply chain network design decision pertaining to facility location is 

Answer

Answer: a strategic decision.

Q94: Supply chain network design decision pertaining to capacity allocation to plants is 

Answer

Answer: an operational decision.

Q95: Supply chain network design decision pertaining to allocation of plants to markets is 

Answer

Answer: a tactical decision.

Q96: Which of the following arrangements would be chosen if the facilities need to have lower fixed costs 

Answer

Answer: Many local facilities are preferred because this would help lower transportation costs.

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