Supply Chain Management Strategies

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What is the primary purpose of postponement in a supply chain?

To delay final modifications or customisation until the last possible moment (correct)

To increase stock levels of finished goods

To reduce economies of scale

To locate operations in distant locations from customers

What benefit of supply chains allows producers to take advantage of lower unit costs?

Transporting goods in smaller quantities

Producers locating operations in the best locations

Concentrating operations in large facilities

Wholesalers placing large orders (correct)

What is the primary advantage of cross-docking in supply chains?

Improving economies of scale

Dramatically reducing stock levels and associated administration (correct)

Increasing stock levels

Reducing transportation costs

What is the primary reason why supply chains exist?

To overcome the gaps created when suppliers are some distance away from customers Signup and view all the answers

What benefit of supply chains allows retailers to carry less stock?

Wholesalers providing reliable deliveries Signup and view all the answers

What is the primary purpose of supply chains in terms of operations?

To allow for operations that are best done at locations that are distant from customers Signup and view all the answers

What is a major consequence of not integrating logistics within an organization?

Introducing unnecessary buffers and duplicating effort Signup and view all the answers

Why is it difficult to integrate logistics within an organization?

Because of the complexity and geographical dispersion of operations Signup and view all the answers

What is the primary goal of integrating logistics within an organization?

To look for the greatest overall benefit for the organization Signup and view all the answers

What is a common approach to integrating logistics over time?

Gradually taking over different aspects of logistics by different departments Signup and view all the answers

What is the result of fragmented logistics in terms of customer service?

Worse customer service Signup and view all the answers

What is the main benefit of integrating logistics within an organization?

Improving efficiency, reducing costs, and improving customer service Signup and view all the answers

What type of integration occurs when one organisation buys other organisations in the supply chain?

Vertical integration Signup and view all the answers

What is the primary characteristic of supplier partnering?

A long-term commitment with mutual sharing of information and risks Signup and view all the answers

What can facilitate partnerships according to the text?

Facilitators Signup and view all the answers

Which of the following is NOT a key feature of alliances?

A focus on short-term gains Signup and view all the answers

What is the common term for the joint activities and operations used to build and sustain a partnership?

Components Signup and view all the answers

When logistics is divided into separate functions, what is likely to happen to each function?

It will have its own objectives Signup and view all the answers

What is the primary goal of joint development in alliances?

To develop new products and processes Signup and view all the answers

How do firms in an alliance typically approach pricing?

They agree on costs and profits to give fair and competitive pricing Signup and view all the answers

What is a key benefit of partnerships according to the text?

Better customer service Signup and view all the answers

What is one of the levels of vertical integration shown in Figure 5?

Backward Signup and view all the answers

What is the primary benefit of shared information and expertise in alliances?

It facilitates flexibility and willingness to solve shared problems Signup and view all the answers

What is the main difference between a formal alliance and an informal cooperation?

The degree of contractual commitment Signup and view all the answers

What is the main limitation of an organisation's perspective in a supply chain?

It is only concerned with its own customers and suppliers Signup and view all the answers

What is the key difference between a 3PL and a 4PL provider?

The level of integration with other service providers Signup and view all the answers

What is the primary goal of Lean Logistics?

To eliminate waste and enhance the flow of materials and goods Signup and view all the answers

What is the benefit of integration in the supply chain at the level of physical movement?

Increased efficiency in transportation services Signup and view all the answers

What is the key idea behind the statement 'supply chains compete, not companies'?

That the performance of a supply chain is more important than that of individual companies Signup and view all the answers

What is the foundation of Lean Logistics?

The concept that any process can be more effective by eliminating unnecessary steps Signup and view all the answers