 Reverse logistics concerns evaluating the reverse flow of products and materials

for the purpose of processing returns, effecting repairs, or remanufacturing

products

 In supply chain management, a virtual organization is characterized primarily by

Use of collaborative process teams from across the supply chain

 Centralizing demand information or managing end-customer demand can

significantly reduce the bullwhip effect within the supply chain.

 Adaptive supply chain community can be used to help mitigate negative effects of
events that rarely occur

 When a company undertakes a win-back strategy without considering the

profitability of customer accounts, it is neglecting the key element of segmentation.

 An international company is implementing a large, new-generation enterprise

resources program (ERP) system to cover worldwide operations. Applying correct
sales tax rates in each of the sales region has been a challenge. The company is
willing to redefine its business process and apply sales tax correctly each time
during billing. The company can use service-oriented architecture to request test
data from each government’s Web portals during the ERP implementation will best
address the tax issue

 By involving suppliers early in the new product development process, a firm may
benefit from supplier recommendations related to additional standardization of
components

 The primary purpose of supply chain management is to create value

 Reducing product variety by a manufacturer most likely would improve service

levels throughout the supply chain

 A consignment inventory program between a vendor and a customer typically

favors Customer

 A firm may use RFID technologies to track the flow of inventory across its entire
supply chain

 Over the past twelve months, a company has noted excessive inventory levels,
which are believed to be a result of the bullwhip effect. The company wishes to
plan its production floor better and reduce its inventory risk. CPFR would best be
suited to assist the company in this effort

 Using an independent service provider for logistics would be most appropriate in

the situations where a shoe company that wants to penetrate a foreign market
1
 An online book seller showing customers a list of books bought by customers with
similar purchasing histories is an example of cross-selling

 Delayed differentiation strategies minimizes inventory throughout the supply chain

to avoid obsolescence

 Effective relationship management should be based on a willingness to change

that is exemplified best by sharing business plans and demand projections

 Short order cycles to facilitate rapid replenishment will result in A minimal in-
process inventory

 To ensure a successful relationship, trading partners must adapt their

organizations to leverage advantages found in cross-supply-chain collaboration.
Because all entities are collectively responsible for growth of revenue and profits

 XML is fast becoming the standard for internet transactions that enable supply
chain management.

 A company uses ingredients to make a product that is sold in multiple countries.

Each country requires country-specific labels. A third-party supplier provides the
country-specific labels. The most appropriate push-pull interface is Finished
product with labels

 A company using customer relationship management (CRM) technology discovers

the number of leads converted to sales is declining. SFA would be best to employ
to understand why this is happening.

 When doing international business, a company’s total line-haul costs will vary with
Distance shipped

 Supply chain time is shortened is the greatest impact of e-business solutions on a

company’s performance.

 In the Supply Chain Operations Reference-model (SCOR), Order fulfillment cycle

time metrics measures responsiveness of a supply chain

 Mutual Trust is crucial to advancing cooperation between customers and suppliers

 System architecture component of information technology (IT) infrastructure is

critical to the success of IT implementation

 A logistics specialist assumes the entire logistics operations of another company

and subcontracts for additional services. This situation best exemplifies the use of
a Fourth-party logistics provider
2
 Compared to a portal, a business-to-business exchange is characterized by
Application-to-application integration

 A new distribution warehouse is added to an existing supply chain network. The

average travel time from the distribution warehouse to the customer is reduced
which will result in the overall reduction of customer delivery lead time.

 The key to successful change management is to remain focused on a set of

unchanging core principles.
 Supply Chain Operations Reference-model (SCOR is used to describe and
improve any supply chain

 Developing efficient customer channels is the primary role of marketing in

supporting supply chain management.

 Compared to an enterprise resources planning system, an advanced planning and

scheduling system is characterized by Mathematical models that support
optimization

 Implementing reusable containers with suppliers is an example of reverse logistics.

 E-business allows a firm to capitalize on the use of systems that Permit real-time
use of supply chain data

 Implementing a balanced scorecard for a supply chain typically include

communicating the strategic purpose to partner organizations
 Market-responsive supply chains take advantage of Buffer capacity

 The key to building a chain of suppliers that focuses on maximizing value to the
customer is making suppliers partners in the company strategy

 An arrangement in which inventory is increasingly likely to be placed on

consignment instead of being sold first to the retailer and then to the end customer
is known as VMI

 CRM approaches most likely will help a company reduce its cost of sales while
increasing customer loyalty by enabling the firm to automate many sales and
marketing functions

 CPFR allows supply chain partners to exchange information related to product

demand and supply of their resources.

 The make-or-buy typically would include considerations about Total cost of

ownership
3
 A company imports subassemblies to complete as finished goods. A substantial
portion of this product goes to the export market. The organization might best
reduce its expenses for the product by doing this in a free trade zone.

 RFID technology embeds intelligence into physical objects, thereby allowing a

company to communicate with businesses and consumers

 Concerns about conflicts of interest with partners in the supply chain is a roadblock
to implementing customer relationship management and supplier relationship
management.

 Customer service is most appropriately defined as the ability of a company to

address Needs, inquiries, and requests of customers

 A printing service wants to analyze its customers’ purchasing histories to forecast

future orders. This situation is an example of Intrinsic type of forecasting technique

 Information technology will facilitate greater collaboration to increase visibility of

changing situations as the supply chain matures

 Effective data acquisition for supply chain management requires Identification of

the proper supply chain profile for the product type.

 Ensuring less idle time for inventory approaches typically would be the most
effective in increasing inventory velocity in a supply chain.

 A North American manufacturer of goods expands its market to include Europe.

Customization currently is done in the North American manufacturing facility. The
new “Postponement” processes should manufacturer use to eliminate inventory
imbalances of customized products

 Supplier rating system provides an objective means for a company to determine

outstanding suppliers

 Successful implementation of a new supply chain process first requires Open

communication with stakeholders

 Organizations that change from a traditional purchasing perspective to a supply

chain perspective most likely will adopt techniques related to value stream
analysis.

 The strategy to implement supplier relationship management has been developed.

The most appropriate next step is to “develop the criteria prospective partners”.

4
 Information is typically substituted for inventory to improve supply chain
performance.

 Qualitative forecasting methods are most appropriate for projecting demand for
Breakthrough products

 EDI can best aid effective supplier relationship management

 In supply chain management, the primary benefit of an enterprise resource

planning system is visibility to real-time data

 A company’s market is characterized by frequently changing product demand and

pressure for short lead times. The company also faces intense competition. To
enhance its competitiveness, the company should stress “reducing the cycle time”
strategy.

 Production of a company’s highest profit items is dependent upon the purchase of

high-quality circuit boards. “Strategic partnership” is the level of collaborative
intensity that the company should develop with their supplier

 A company most likely would make components in-house rather than buying it from
an outside source as a way to protect propriety design

 As supplier relationship management evolves, it will be increasingly important for

the purchasing professional to be skilled in facilitation

 A distribution requirements planning system is implemented primarily to monitor or

manage: inventory replenishment.

 Lack of consistency with the business strategy is the primary cause of failure
during implementation of e-business
 .
 Compared to a traditional partnership process, the most difficult step in developing
a collaborative demand planning process between manufacturer and supplier is
Sharing demand histories

 Developing mutually beneficial agreements with trading partners during

implementation of supply chain management is most likely to lead to successful
implementation

 Implementing customer relationship management requires focusing on the

customer, the channel, product management, and infrastructure.

 Enterprise resource planning assists in leveraging supply chain effectiveness by

organizing business functions, defining common practices, and standardizing
processes

5
 When choosing a supplier in a market-responsive supply chain, a company most
appropriately would make the selection on the basis of quality and speed

 In the supplier rationalization step of the supplier relationship management

process, the supplier base is treated like an extension of the enterprise.

 Compared to the traditional enterprise resources planning (ERP) system, an

electronic business suit (EBS) is preferred for today’s e-business solution because
EBS has converged with Web-based applications to form a grouping of business
software functions

 Commercial invoice is the export documents that is used as the basis for the
valuation of goods for insurance purposes and for assessment of duties

 A company announces that a product will be placed on allocation due to raw

material shortages. The orders for this product rise 20% above forecast. This is an
example of the bullwhip effect

 Functional products require efficient types of supply chain process

 Duties and taxes costs typically would increase when switching from a domestic
supplier to a supplier in another country

 Proprietary data most likely will be communicated between two parties who have
formed a strategic alliance.

 Successful supply chain management should result in Minimized network-wide

costs and satisfaction of service-level requirements

 A company distributes products through a multi-tiered distribution network.

Recently there has been high demand variability for a mature product that had
experienced stable demand for several years. The most appropriate way to
address the variability of demand is to increase demand visibility with all partners.

 APS tools is used with enterprise resources planning to align supply chains with
corporate strategies.

 A chief financial officer is concerned about a company’s supply chain performance.

The key performance indicator most likely to be reviewed is the cash to cash cycle
time

 It is most appropriate to measure spending per customer as a proportion of

profitability during customer retention phases of a supplier/customer relationship.

6
 Dissemination of valuable information quickly at low cost is the e-business
attributes which is considered to be primarily responsible for revolutionizing supply
chain management

 Financial, customer, and social values are the three values created by supply
chains

 Modularization design approaches is best suited for a manufacturer that wants to

offer a variety of finished goods.

 The voice of the customer approach is used most appropriately as a way to Learn
from customers’ information that they would not normally share

 After a company selects key performance measures for its supply chain, the
company should determine current, baseline performance. The company next
should Review measures periodically

 A hospital has difficulties finding high-value equipment within its buildings RFID
technology would be most appropriate for locating the equipment

 Compared to a blanket purchase order, a supplier alliance agreement is best

differentiated by a shared vision of added value

 Visibility of each product from start to finish is a goal of information technology in

supply chain management

 A company continues to receive complaints from customers about the reliability of

deliveries. Perfect Order Fulfilment supply chain operations reference-model
(SCOR) metrics would best measure delivery reliability

 A customer relationship management system identifies and segments customers

into different groups based on a customers’ value to the firm

 Strategic alignment between extended supply chain partners will yield the highest
level of competitive advantage

 A company may reduce its amount of safety stock by substituting information for
inventory

 A media company offers a majority of its movies through a specific distributor. The
media company is beginning to produce content for a new foreign market to which
the distributor has exclusive access. To maximize savings and gain entry to this
new market, the media company should Form a strategic alliance

7
 Using an electronic product code embedded into a smart tag on a product is known
as auto-ID technology

 A company utilizing a supplier relationship management program will be

concerned primarily about culture of the company when selecting a supplier.

 Reducing lead times among trading partners tactics effectively reduces the
bullwhip effect

 A practical way to eliminate an unprofitable customer is to establish a tiered pricing

structure based on service levels, and refuse to discount premier service
 Customer typically must provide information first to effectively improve supply
chain design.

 A bicycle manufacturer wants to offer a range of bicycles that allows the customer
to choose wheels, gears, brakes, frames, and saddles. Implementing Mass
Customization approach would be most appropriate.

 A firm’s service function deploys multimedia tools to convey order and account
status and other components affecting the customer through the use of which of
the EDI.

 A primary reason for implementing a coordinated supply chain management

program is to reduce system wide cost

 When designing an effective supply chain, one must choose between agility and
efficiency

 An effective supplier relationship management program selects a supplier based

on the supplier’s Interdependency with the company

 An advanced planning system differs from enterprise resources planning primarily

by its emphasis on optimization

 A grocery store found that ground beef sales increased when buns were a featured
sales item. This customer relationship management technique is called data
mining.

 A shoe manufacturer has decided to pack various sizes of the same model shoes
into each shipping carton according to retailer’s requirements. The practice
represents design for logistics collaborative approach

 A warehouse management system typically manages the storage of goods and

workflow in the warehouse

8
 A pattern of increased shipments from manufacturing plants to a central
warehouse at month-end and quarter-end typically would cause fluctuation in
required labor resources situations in a central warehouse

 One of the first steps in devising an effective supply chain strategy within a
company is to analyze a product’s nature of demand.

 On-time delivery performance in the supply chain can best be improved by aligning
required capacity with demonstrated capacity

 Supply chain event management software enables companies within a supply

chain to Define business rules and associated triggers

 A new sales and marketing director who wants to transform a company into a
customer-driven organization most likely would consider allowing customers to use
their preferred channels to interact with the company.

 Sharing end-customer demand data among the trading partners of a supply chain
most likely will improve the end-customer fill rate

 Cost reduction, improvement of company focus, and freeing assets from noncore
activities are among the results achieved through effective implementation of
outsourcing.

 Low Cost competitive strategies most likely will be effective for an industry in which
the product is a standardized commodity

 Sales and operations planning processes ensures that functional plans are
consistent.

 Compared to mass-media marketing, customer relationship management has the

advantage of allowing the organization to Compete for customers based on service

 A distribution company has a central warehouse and nine regional distribution

centers. The company is considering closing several of the distribution centers but
wishes to maintain the same level of customer service percent-fill rates and order
delivery times. If the number of distribution centers decreases, the most likely
consequence will be an increase in Total transportation costs

 A company most likely would consider moving a portion of its manufacturing to a

second location to minimize the impact of natural disasters

9
 A company’s cash-to-cash cycle time is 36 days. “Three” weeks of inventory are
on hand if the average collection time from customers is 60 days, and the company
pays its vendors in 45 days

 Shortly after implementation of a supplier quality-management program, the

customer’s and supplier’s measurements of an attribute differ. The most
appropriate course of action is to investigate data collection methods.

 Ease of integration with existing systems is NOT the benefit of E-commerce

 Sales Force Automation has improved management of the customer pipeline

 In supply chain management, the use of cross-docking rather than traditional

warehousing or direct shipping is primarily an issue of distribution strategy.

 Developing multiple supply chains for different product lines is appropriate for a
progressive company that is responding to changes in its supply chain

 A company manufactures consumer products in two locations. Location 1 has the

lowest manufacturing costs. Location 2 is closer to the market. Location 1 is most
appropriate for manufacturing products that have High volume and stable demand
characteristics

 When trying to decide whether to outsource its customer relationship management

functions, a company primarily should consider Internal controls of the company

 A relevant benefit for considering the use of radio frequency identification is to

reduce stockouts

 An inventory manager monitors forecast accuracy as the primary key performance

indicator (KPI). Management continues to be unhappy with the warehouse
inventory and service levels. Manager first consider to use the broader KPIs.

 A company sells 60 units of product in a given year and has an average quantity
on hand of 10 units. There are 360 selling days and 261 production days in the
year. The company has on hand the 60 days of product inventory.

 Adopting a corporate strategy of increasing flexibility to meet unexpected demand

requires a company to Increase safety stock and maintain reserve capacity

 An e-tailer wants to implement customer relationship management (CRM). The

first step in the implementation process is to become customer-centric

10
 An information technology system that couples enterprise resources planning and
an advanced planning system would be most appropriate for Multiple plants in the
same supply chain operations

 A chief financial officer views inventory turnover as a key performance indicator

because of its impact on cash to cash cycle time

 Reluctance to share internal information is most likely to be a roadblock to

implementing a collaborative supply chain relationship

 A company has made a strategic decision to introduce innovative products to

improve profitability. the company be concerned about Unpredictable demand the
most while implementing this decision.

 Compared to electronic data interchange (EDI), extensible markup language

(XML) provides broader options for information transfer
 has which of the following primary advantages

 Order-fulfillment cycle time metrics is a measure of supply chain responsiveness

 Early supplier involvement in product design and development is most likely to

result in Design suggestions and reduced cycle time

 The most effective strategic scenario results when a company has innovative
products and A responsive supply chain

 When establishing third-party and fourth-party logistics relationship, a firm should

avoid providers who Use a propriety information system

 Total annual profit typically is highest at maturity stage of the product life cycle

 A company makes multiple products with different profit contributions and different
capacity requirements on a single capacity-constrained manufacturing line. Using
an advanced planning and scheduling tool approach is most appropriate for
identifying the most profitable and capacity-feasible solution

 Increasing the agility of the supply chain partners is a benefit of collaborative

information sharing in the supply chain

 Business-to-business (B2B) commerce increases business activity primarily by

enhancing collaboration among customers and suppliers

 Variability in the supply chain can be minimized by reducing lead time.

11
 When a company operates in a vendor-managed inventory environment, the cash-
to-cash cycle time for the buying firm begins when it Receives a fulfillment order

 Increased organizational profitability is the most likely result of a well-managed

supply chain

 The primary role of marketing in the demand planning step of sales and operations
planning is to identify all sources of current demand

 Conducting direct interviews and discussions is a example of “voice of the

customer” activity

 A direct shipment strategy typically would be most appropriate when shipping Low
shelf-life items to grocery stores

 .

 Customers who are already loyal to the firm will benefit most from a customer
relationship management program focused on cross-selling

 Internally staffing a customer contact center is an example of vertical integration

 Variability between retail forecasts and actual customer demand typically results
in increased inventories

 Implementation of supply chain applications based on SaaS technologies is most

likely to have the lowest fixed costs

 “A means of periodic feedback must be in place for issue resolution” statements

best describes a fundamental requirement for developing and maintaining good
business relationships in an effective supplier partnership

 Using private trading exchanges risk-mitigation strategies is most appropriate for

dealing with the potential commoditization of products and services prevalent in e-
buying exchanges.

 A manufacturing company with limited competence in logistics plans to expand

into an international market. The most appropriate initial action the company
should take to serve the international market is to engage a third-party logistics
company

 A firm has identified key benefits for developing a strategic alliance and has
selected appropriate supply chain partners. Which of the following actions should

12
 the firm take to build a successful alliance with a supplier who is also a competitor
Establish an internal committee to limit shared information

 The primary advantage of using extensible markup language (XML) is that it can
identify each element of the data and give it a meaning

 A company considers moving a portion of its production to a distant country to

support a major customer. Expanding the customer base globally will be most
effective in mitigating the risk of financial loss in the event of a global downturn.

 A company has been operating its supply chain through multiple-page contracts
and wants to do more business with multiple trading partners. Using EDI strategies
would be most cost-effective for the company to adopt to exchange transactions
electronically

 The best way to manage a business relationship is to measure performance to

agreed-upon metrics

 What is the primary benefit of using modular rather than integral designs.

 Lower cost of manufacturing

 Increased product performance
 Greater responsiveness in marketing and production
 Reducing complexity of bills of material.

 A company has sales and operations planning (S&OP) and master production
scheduling (MPS) systems and processes that are functioning very well. The
company decides to implement an enterprise resources planning (ERP) system to
improve its execution processes. The most appropriate strategy for the company
is to Use business process management tools to document current processes first

 A key to effective supply chain management is to Have suppliers of critical

components share in the firm’s strategy implementation

 Limiting operations to a single location has great risk. We must have redundancy
in supply chain operations.

 When determining lot sizes, consideration should be given to balancing Ordering

costs and unit costs.

 The term synchronization in supply chain management refers to an approach to

reducing the Variability of supply.

13
14