Test bank for supply chain management 5th edition chopra

C match supply chain responsiveness with the implied uncertainty of demand.. D ensure that all functional strategies within the supply chain support the supply chain's level of responsiv

Test Bank for Supply Chain Management 5th Edition Chopra

Multiple Choice Questions

The relationship where increasing implied uncertainty from customers and supply sources is best served by increasing responsiveness from the supply chain is known as the

1 A) implied uncertainty spectrum

2 B) responsiveness spectrum

3 C) uncertainty/responsiveness map

4 D) zone of strategic fit

5 E) none of the above

A company's product development strategy

1 A) defines the set of customer needs that it seeks to satisfy through its products and services

2 B) specifies the portfolio of new products that it will try to develop

3 C) specifies how the market will be segmented and how the product will be

positioned, priced, and promoted

4 D) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product

5 E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs

The uncertainty of customer demand for a product is the

1 A) rate of strategic uncertainty

2 B) demand uncertainty

3 C) implied demand uncertainty

4 D) average forecast error

5 E) none of the above

For a company to achieve strategic fit, it must accomplish the following keys:

1 A) All functional strategies must fit together to form a coordinated overall strategy

2 B) The different functions in a company must appropriately structure their

processes and resources to be able to execute these strategies successfully

3 C) The overall supply chain must operate at the lowest cost possible to achieve success

4 D) The design of the overall supply chain and the role of each stage must be aligned to support the supply chain strategy

The first step in achieving strategic fit between competitive and supply chain strategies is to

1 A) understand the supply chain and map it on the responsiveness spectrum

2 B) understand customers and supply chain uncertainty

3 C) match supply chain responsiveness with the implied uncertainty of demand

4 D) ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness

5 E) none of the above

Efficient supply chains

1 A) respond quickly to demand

2 B) have higher margins because price is not a prime customer driver

3 C) maintain buffer inventory to deal with demand/supply uncertainty

4 D) maximize performance at a minimum cost

Which of the following are basic steps to achieving strategic fit?

1 A) Understanding the customer and supply uncertainty

2 B) Understanding the supply chain capabilities

3 C) Achieving strategic fit

4 D) All of the above are basic steps to achieving strategic fit.

5 E) None of the above are a basic step to achieving strategic fit

Which of the following would be a demand and supply characteristic toward the beginning stages of a product's life cycle?

1 A) Demand has become more certain and supply is predictable

2 B) Margins are lower due to an increase in competitive pressure

3 C) Product availability is crucial to capturing the market

4 D) Price becomes a significant factor in customer choice

5 E) none of the above

Which of the following is not a supply chain capability that will impact supply uncertainty?

1 A) Evolving production process

2 B) Inflexible supply capacity

3 C) Limited supply capacity

4 D) Product margin

5 E) Unpredictable and low yields

The second step in achieving strategic fit between competitive and supply chain strategies is to

1 A) understand the supply chain and map it on the responsiveness spectrum

2 B) understand customers and supply chain uncertainty

3 C) match supply chain responsiveness with the implied uncertainty of demand

4 D) ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness

5 E) none of the above

The curve that shows the lowest possible cost for a given level of

responsiveness is referred to as the

1 A) supply chain responsiveness curve

2 B) supply chain efficiency curve

3 C) cost-responsiveness efficient frontier

4 D) responsiveness spectrum

5 E) none of the above

Supply chain responsiveness includes the ability to do which of the following?

1 A) Understand customers and supply chain

2 B) Meet a very high service level

3 C) Match supply chain responsiveness with the implied uncertainty of demand

4 D) Ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness

5 E) none of the above

Which of the following customer needs will cause implied uncertainty of demand to decrease?

1 A) Range of quantity required increases

2 B) Lead time decreases

3 C) Variety of products required increases

4 D) Required service level increases

5 E) none of the above

The drive for strategic fit should come from

1 A) the supply chain manager

2 B) the strategic planning department

3 C) the highest levels of the organization, such as the CEO.

4 D) middle management

5 E) sales and marketing

The functions and stages that devise an integrated strategy with a shared objective are referred to as

1 A) competitive strategy

2 B) supply chain strategy

3 C) scope of strategic fit

4 D) scope of marketing strategy

5 E) scope of product development strategy

A supply chain strategy involves decisions regarding all of the following except

1 A) inventory

2 B) transportation

3 C) new product development

4 D) operating facilities

5 E) information flows

Which of the following determines the nature of procurement of raw materials, transportation of materials to and from the company,

manufacture of the product or operation to provide the service, and

distribution of the product to the customer along with follow-up service?

1 A) Competitive strategy

2 B) Product development strategy

3 C) Marketing and sales strategy

4 D) Supply chain strategy

5 E) none of the above

Which of the following would not be a demand and supply characteristic

in the later stages of a product's life cycle?

1 A) Demand has become more certain and supply is predictable

2 B) Margins are lower due to an increase in competitive pressure

3 C) Product availability is crucial to capturing the market

4 D) Price becomes a significant factor in customer choice

5 E) All of the above are characteristics of the later stages

Which of the following is NOT a challenge that makes it increasingly difficult for supply chains to achieve strategic fit?

1 A) Globalization

2 B) Changing Technology

3 C) Shorter Life Cycles

4 D) Decreasing Product Variety

Which of the following specifies the portfolio of new products that a

company will try to develop?

1 A) Competitive strategy

2 B) Product development strategy

3 C) Marketing and sales strategy

4 D) Supply chain strategy

5 E) all of the above

The preferable supply chain strategy for a firm that sells multiple products and serves customer segments with very different needs is to

1 A) set up independent supply chains for each different product or customer segment

2 B) set up a supply chain that meets the needs of the highest volume product or customer segment

3 C) tailor the supply chain to best meet the needs of each product's demand.

4 D) set up a supply chain that meets the needs of the customer segment with the highest implied uncertainty

5 E) set up a supply chain that meets the needs of product with the highest implied uncertainty

With the view firms attempt to align all operations within a function In this view all supply chain functions including sourcing,

manufacturing, warehousing, and transportation must align their strategy

to minimize total functional cost

1 A) Intrafunctional scope

2 B) Intraoperation scope

3 C) Interfunctional scope

4 D) Intercompany scope

The important points to remember about achieving strategic fit are

1 A) there is one best supply chain strategy for all competitive strategies

2 B) there is no right supply chain strategy independent of the competitive strategy

3 C) there is a right supply chain strategy for a given competitive strategy

4 D) all of the above

5 E) B and C only

Supply chain responsiveness includes the ability to do which of the

following?

1 A) Understand customers and supply chain

2 B) Match supply chain responsiveness with the implied uncertainty of demand

3 C) Meet short lead times

4 D) Ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness

5 E) all of the above

Which of the following defines the set of customer needs that a company seeks to satisfy through its products and services?

1 A) Competitive strategy

2 B) Product development strategy

3 C) Marketing and sales strategy

4 D) Supply chain strategy

5 E) none of the above

The cost of making and delivering a product to the customer is referred to

as

1 A) supply chain responsiveness

2 B) supply chain efficiency

3 C) cost-responsiveness efficient frontier

4 D) implied uncertainty

5 E) none of the above

The value chain consists of direct and indirect activities Which of the following is an indirect activity for an enterprise?

1 A) Marketing

2 B) Distribution

3 C) Human Resources

4 D) Service

A company's marketing and sales strategy

1 A) defines the set of customer needs that it seeks to satisfy through its products and services

2 B) specifies the portfolio of new products that it will try to develop

3 C) specifies how the market will be segmented and how the product will be

positioned, priced, and promoted

4 D) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product

5 E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs

A graph with two axes with implied uncertainty along the horizontal axis and responsiveness along the vertical axis is referred to as the

1 A) implied uncertainty spectrum

2 B) responsiveness spectrum

3 C) uncertainty/responsiveness map

4 D) zone of strategic fit

5 E) none of the above

Supply chain responsiveness includes the ability to do which of the

following?

1 A) Handle supply uncertainty

2 B) Understand customers and supply chain uncertainty

3 C) Match supply chain responsiveness with the implied uncertainty of demand

4 D) Ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness

5 E) none of the above

A firm that is not on the cost-responsiveness efficient frontier can

improve

1 A) both responsiveness and cost performance

2 B) only responsiveness

3 C) only cost performance

4 D) responsiveness, but not cost performance

5 E) neither responsiveness nor cost performance

Which of the following is not a characteristic of customer demand

correlated with implied uncertainty?

1 A) Product margin

2 B) Unpredictable and low yields

3 C) Average stockout rate

4 D) Average forced season end markdown

5 E) None of the above are correlated with implied uncertainty

Which of the following is not a key to the success or failure of a

company?

1 A) The competitive strategy and all functional strategies must fit together to form a coordinated overall strategy

2 B) The competitive strategy and all functional strategies operate independently of each other

3 C) The different functions in a company must appropriately structure their

processes and resources to be able to execute strategies successfully

4 D) Each functional strategy must support other functional strategies and help a firm reach its competitive strategy goal

5 E) All of the above are keys to success

The final step in achieving strategic fit between competitive and supply chain strategies is to

1 A) understand the supply chain and map it on the responsiveness spectrum

2 B) understand customers and supply chain uncertainty

3 C) match supply chain responsiveness with the implied uncertainty of demand

4 D) combine customer and supply chain uncertainty and map it on the implied uncertainty spectrum

5 E) all of the above

A strategy specifies the portfolio of new products that a

company will try to develop

1 A) Product Development

2 B) Marketing and Sales

3 C) Supply Chain

4 D) Finance

Which of the following customer needs will cause implied uncertainty of demand to increase?

1 A) Product margin

2 B) Lead time decreases

3 C) Average stockout rate

4 D) Average forced season end markdown

5 E) none of the above

A supply chain strategy involves decisions regarding

1 A) inventory

2 B) transportation

3 C) operating facilities

4 D) information flows

5 E) all of the above

The key weakness of the view is that different functions within a firm may have conflicting objectives

1 A) Intrafunctional scope

2 B) Intraoperation scope

3 C) Interfunctional scope

4 D) Intercompany scope

A strategy specifies how the market will be segmented and how the product will be positioned, priced, and promoted

1 A) Product Development

2 B) Marketing and Sales

3 C) Supply Chain

4 D) Finance

A company's supply chain strategy

1 A) defines the set of customer needs that it seeks to satisfy through its products and services

2 B) specifies the portfolio of new products that it will try to develop

3 C) specifies how the market will be segmented and how the product will be

positioned, priced, and promoted

4 D) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product

5 E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs

A company's competitive strategy

1 A) defines the set of customer needs that it seeks to satisfy through its products and services

2 B) specifies the portfolio of new products that it will try to develop

3 C) specifies how the market will be segmented and how the product will be

positioned, priced, and promoted

4 D) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product

5 E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs

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

1 A) be responsive

2 B) provide a different product

3 C) operate on a low-cost basis

4 D) provide sustainable products

Which of the following would not be a demand and supply characteristic toward the beginning stages of a product's life cycle?

1 A) Demand is very uncertain and supply may be unpredictable

2 B) Demand has become more certain and supply is predictable

3 C) Margins are often high and time is crucial to gaining sales

4 D) Product availability is crucial to capturing the market

5 E) Cost is often of secondary consideration

The uncertainty that exists due to the portion of demand that the supply chain is required to meet is the

1 A) rate of strategic uncertainty

2 B) demand uncertainty

3 C) implied demand uncertainty

4 D) average forecast error

5 E) none of the above

True - False Questions

The value chain emphasizes the close relationship between all the

functional strategies within a company

1 True