Supply Chain Management Techniques
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Questions and Answers

Shipping by truck is a cost-effective method.

True

Technological advances can only serve to improve logistics management but not shipping security.

False

Devices that can detect a broken seal on a shipping container are not useful for logistics management.

False

One of the benefits of TQM is a lack of management commitment.

<p>False</p> Signup and view all the answers

TQM focuses on the customer, both internally and externally.

<p>True</p> Signup and view all the answers

Ineffective measurement techniques are a benefit of TQM implementation.

<p>False</p> Signup and view all the answers

In Total Quality Management, machine operators are always trained to be facilitators.

<p>False</p> Signup and view all the answers

Building high-morale organizations and building communication networks that include employees are both elements of Six Sigma certification.

<p>False</p> Signup and view all the answers

The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as continuous improvement.

<p>False</p> Signup and view all the answers

ISO 9000 seeks standardization in terms of products.

<p>False</p> Signup and view all the answers

Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the Taguchi Loss Function.

<p>True</p> Signup and view all the answers

ISO 9000 certification and Six Sigma certification are the same thing.

<p>False</p> Signup and view all the answers

A manager can always reach the correct conclusion in acceptance sampling if the sample is representative of the population.

<p>False</p> Signup and view all the answers

The probability of accepting a bad lot is known as consumer's risk.

<p>False</p> Signup and view all the answers

An acceptance sampling plan only needs to define the risk level associated with good lots.

<p>False</p> Signup and view all the answers

The acceptable quality level (AQL) is the maximum level of quality that we are willing to accept.

<p>False</p> Signup and view all the answers

A sample mean that is outside the control limits indicates that the process is in control.

<p>False</p> Signup and view all the answers

The causes of variation in statistical process control include cycles and trends.

<p>True</p> Signup and view all the answers

Postponement technique reduces automation in the production process.

<p>True</p> Signup and view all the answers

Drop shipping involves delivering a product directly to the end consumer rather than to the retailer.

<p>True</p> Signup and view all the answers

The average capacity utilization in the motor carrier industry is around 95%.

<p>False</p> Signup and view all the answers

Third-Party Logistics (3PL) refers to the outsourcing of logistics operations to a third-party provider.

<p>True</p> Signup and view all the answers

E-procurement is only suited for auctions and bidding components of Internet purchasing.

<p>False</p> Signup and view all the answers

The three classic types of negotiation strategies are many suppliers, few suppliers, and keiretsu.

<p>False</p> Signup and view all the answers

Choosing between producing a component or a service internally and purchasing it externally is a part of supply chain management.

<p>True</p> Signup and view all the answers

Having a high percentage of on-time deliveries is a measure of supply chain performance.

<p>True</p> Signup and view all the answers

Outsourcing is the process of producing goods or services internally instead of purchasing them externally.

<p>False</p> Signup and view all the answers

The Institute for Supply Management is an organization that has published principles and standards for ethical supply management conduct.

<p>True</p> Signup and view all the answers

Using a large number of suppliers increases the willingness to participate in Just-In-Time (JIT) production.

<p>False</p> Signup and view all the answers

Vertical integration involves outsourcing activities to external vendors.

<p>False</p> Signup and view all the answers

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