Tut 1.1 SCM Ans PDF

Topic 1. 1 Supply Chain Management (SCM) and Supply Chain Processes 1.1 True/False Questions 1) A supply chain could be more accurately described as a supply network or supply web. Answer: TRUE 2) All stages of an enterprise are involved, either directly or indirectly, in fulfilling a customer re...

Topic 1. 1 Supply Chain Management (SCM) and Supply Chain Processes 1.1 True/False Questions 1) A supply chain could be more accurately described as a supply network or supply web. Answer: TRUE 2) All stages of an enterprise are involved, either directly or indirectly, in fulfilling a customer request. Answer: TRUE 3) A supply chain includes only the organizations directly involved in supplying components needed for manufacturing. Answer: FALSE 4) The objective of every supply chain is to maximize the overall value generated. Answer: TRUE 5) The objective of the customer arrival process is to ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes. Answer: FALSE 6) The objective of customer order entry is to maintain a record of product receipt and complete payment. Answer: FALSE 7) The difference between the value of the product and its price remains with the customer as consumer surplus. Answer: TRUE 8) The supply chain planning phase exceeds the supply chain design phase in duration. Answer: FALSE 9) The goal during the supply chain operation phase is to exploit the reduction of uncertainty and optimize performance. Answer: TRUE 10) The replenishment cycle occurs at the retailer/distributor interface. Answer: TRUE 1 Copyright © 2016 Pearson Education, Ltd. 11) The manufacturing cycle occurs at the distributor/manufacturer interface. Answer: TRUE 12) The push/pull view of a supply chain holds that the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders. Answer: TRUE 13) The production scheduling process in the manufacturing cycle is similar to the order entry process in the replenishment cycle. Answer: TRUE 14) The cycle view of a supply chain holds that the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders. Answer: FALSE 15) The procurement cycle occurs at the manufacturer/supplier interface. Answer: TRUE 16) The cycle view of the supply chain is useful when considering operational decisions, because it specifies the roles and responsibilities of each member of the supply chain. Answer: TRUE 17) Push processes may also be referred to as speculative processes. Answer: TRUE 18) All supply chain activities within a firm belong to one of three macro processes — CRM, ISCM and SRM. Answer: TRUE 19) There is a close connection between the design and management of supply chain flows and the success of a supply chain. Answer: TRUE 20) The drawback of Zara's responsive supply chain is that it tends to sell more products at markdown than most of its competitors. Answer: FALSE 2 Copyright © 2016 Pearson Education, Ltd. 1.1 Multiple Choice Questions 1) Each stage in a supply chain is connected through the flow of products, information, and funds. These flows often occur in both directions and are usually managed by A) pricing department. B) one of the stages. C) upper management. D) engineering department. Answer: B 2) A supply chain features a constant flow of A) information, product and funds. B) personnel, information, and policies. C) processes, funds, and product. D) product, processes, and support. Answer: A 3) Which set of supply chain flows is correctly described? A) Funds flow only upstream but information flows both upstream and downstream in a supply chain. B) Product flows only downstream and information flows only upstream in a supply chain. C) Information and product both flow upstream and downstream in a supply chain. D) Funds flow both upstream and downstream but product flows only downstream in a supply chain. Answer: C 4) Which sequence of stages is typical for product flow in a supply chain? A) Supplier → Manufacturer → Distributor B) Retailer → Distributor → Customer C) Manufacturer → Retailer → Distributor D) Supplier → Customer → Retailer Answer: A 5) Supply chain surplus involves what two parts? A) Manufacturing cost and selling price B) Customer value and supply chain cost C) Customer value and high quality products D) Reliable transportation and supply chain cost Answer: B 3 Copyright © 2016 Pearson Education, Ltd. 6) For any supply chain, the source of revenue is generated by A) efficient operations. B) information flows. C) the customer. D) product flows. Answer: C 7) Customer value is A) the sum of the supply chain surplus and supply chain cost. B) the remainder after supply chain cost is subtracted from supply chain surplus. C) the remainder after supply chain surplus is subtracted from supply chain cost. D) supply chain profitability minus the supply chain cost. Answer: A 8) The objective of every supply chain is to A) minimize the overall cost generated. B) maximize the overall value generated. C) minimize the cost to the manufacturer. D) maximize the profit of the manufacturer. Answer: B 9) For any supply chain, A) management rests solely in the hands of the manufacturer. B) management rests solely in the hands of the distributor. C) if each member focuses on profitability, the overall supply chain profit will be maximized. D) there is only one source of revenue, the customer. Answer: D 10) Walmart's supply chain features clusters of stores around distribution centers, which facilitates A) high transportation costs. B) frequent but inexpensive replenishment at the stores. C) rapid design cycles from their R&D group. D) sharing of information with suppliers. Answer: B 11) Which of these statements about Dell's supply chain is best? A) Dell's supply chain surplus was largely driven by their negative shipping model. B) Dell's initial success was largely driven by the ability to accurately forecast what customers wanted and supply those models to retail outlets that carried their computers. C) Dell's initial success was largely driven by their Assembly→Customer supply chain linkage. D) Dell's supply chain consists of only two members, Dell and the customer. Answer: C 4 Copyright © 2016 Pearson Education, Ltd. 12) The decision phases in a supply chain include A) production scheduling. B) customer relationship management. C) supply chain operation. D) supply chain orientation. Answer: C 13) A company would decide whether to outsource or perform a supply chain function in-house during the A) planning phase. B) design phase. C) tactical phase. D) operation phase. Answer: B 14) The supply chain strategy category would include a decision about A) which items in the warehouse will be shipped to Malibu. B) which warehouse will supply the Surf City location. C) when the order should be shipped to the little old lady from Pasadena. D) how large the warehouse in Kokomo should be. Answer: D 15) The profitability of a supply chain is impacted primarily by the A) design, planning and operation categories of decisions. B) operation category of decisions. C) design and planning categories of decisions. D) planning and operation categories of decisions. Answer: A 16) The time horizon of the operation phase is typically A) quarterly or yearly. B) weekly or daily. C) monthly or quarterly. D) over the next several years. Answer: B 17) The cycle view of a supply chain holds that A) the processes in a supply chain are divided into 2 categories. B) the processes in a supply chain are divided into a series of activities performed at the interface between successive stages. C) all processes in a supply chain are initiated in response to a customer order. D) all processes in a supply chain are performed in anticipation of customer orders. Answer: B 5 Copyright © 2016 Pearson Education, Ltd. 18) The push/pull view of a supply chain holds that A) the processes in a supply chain are divided into a series of activities performed at the interface between successive stages. B) all processes in a supply chain are initiated in response to a customer order. C) all responses in a supply chain are performed in anticipation of customer orders. D) the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders. Answer: D 19) The customer order cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface. Answer: A 20) Customer arrival refers to A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership. Answer: A 21) The objective of the customer arrival process is to A) get the correct orders to customers by the promised due date at the lowest possible cost. B) maintain a record of product receipt and complete payment. C) maximize the conversion of customer arrivals to customer orders. D) ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes. Answer: C 22) Customer order entry is A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership. Answer: B 6 Copyright © 2016 Pearson Education, Ltd. 23) The objective of customer order entry is to A) get the correct orders to customers by the promised due date at the lowest possible cost. B) maintain a record of product receipt and complete payment. C) maximize the conversion of customer arrivals to customer orders. D) ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes. Answer: D 24) Customer order fulfillment refers to A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership. Answer: C 25) The objective of customer order fulfillment is to A) get the correct orders to customers by the promised due date at the lowest possible cost. B) maintain a record of product receipt and complete payment. C) maximize the conversion of customer arrivals to customer orders. D) ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes. Answer: A 26) Customer order receiving is A) the point in time when the customer has access to choices and makes a decision regarding a purchase. B) the customer informing the retailer of what they want to purchase and the retailer allocates product to the customer. C) the process where product is prepared and sent to the customer. D) the process where the customer receives the product and takes ownership. Answer: D 27) The replenishment cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface. Answer: B 28) The processes included in the replenishment cycle include A) order arrival. B) production scheduling. C) retail trigger. D) manufacturing. Answer: C 7 Copyright © 2016 Pearson Education, Ltd. 29) The manufacturing cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface. Answer: C 30) The processes involved in the manufacturing cycle include A) order trigger. B) production scheduling. C) order fulfillment. D) order entry. Answer: B 31) The production scheduling process in the manufacturing cycle is similar to the A) order receiving process in the replenishment cycle. B) order fulfillment process in the replenishment cycle. C) order entry process in the replenishment cycle. D) order trigger process in the replenishment cycle. Answer: C 32) The manufacturing and shipping process in the manufacturing cycle is equivalent to the A) order receiving process in the replenishment cycle. B) order fulfillment process in the replenishment cycle. C) order entry process in the replenishment cycle. D) order trigger process in the replenishment cycle. Answer: B 33) The procurement cycle occurs at the A) customer/retailer interface. B) retailer/distributor interface. C) distributor/manufacturer interface. D) manufacturer/supplier interface. Answer: D 34) The relationship between the manufacturer and supplier during the procurement cycle is very similar to the relationship between A) customer and retailer. B) retailer and distributor. C) distributor and manufacturer. Answer: C 8 Copyright © 2016 Pearson Education, Ltd. 35) The cycle view of the supply chain is useful when considering operational decisions, because A) it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders. B) it specifies the roles and responsibilities of each member of the supply chain. C) processes are identified as either reactive or speculative. D) it focuses on processes that are external to the firm. Answer: B 36) The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design, because A) it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders. B) it specifies the roles and responsibilities of each member of the supply chain. C) it clearly defines the processes involved and the owners of each process. D) it focuses on processes that are external to the firm. Answer: A 37) Which of the following statements about pull processes is accurate? A) They may also be referred to as speculative processes. B) Execution is initiated in anticipation of customer orders. C) At the time of execution, demand must be forecast. D) They may also be referred to as reactive processes. Answer: D 38) Which of the following statements about push processes is accurate? A) They may also be referred to as speculative processes. B) Execution is initiated in response to customer orders. C) At the time of execution, demand is known with certainty. D) They may also be referred to as reactive processes. Answer: A 39) Supply chain macro processes include which of the following? A) Internal Relationship Management (IRM) B) Customer Relationship Management (CRM) C) External Relationship Management (ERM) D) Supply Chain Relationship Management (SCRM) Answer: B 40) Supply chain macro processes include which of the following? A) Internal Relationship Management (IRM) B) External Relationship Management (ERM) C) Supplier Relationship Management (SRM) D) Supply Chain Relationship Management (SCRM) Answer: C 9 Copyright © 2016 Pearson Education, Ltd. 41) Activities involved in the Customer Relationship Management (CRM) macro process include A) planning of internal production and storage. B) order fulfillment. C) marketing. D) supply planning. Answer: C 42) Activities involved in the Internal Supply Chain Management (ISCM) macro process include A) marketing. B) order fulfillment. C) sales. D) order management. Answer: B 43) Activities involved in the Supplier Relationship Management (SRM) macro process include A) planning of internal production and storage. B) order fulfillment. C) supplier evaluation and selection. D) order management. Answer: C 44) A key supply chain difference between Gateway and Apple is that A) Gateway's stores currently carry a large variety of products made by other manufacturers, while Apple carries only Apple products. B) Apple has always carried product in their stores while at one time Gateway stores carried no inventory. C) Gateway has always used a push system while Apple has always used a pull system. D) Gateway has no suppliers, preferring to make everything in-house, while Apple buys many of their components from suppliers. Answer: B 45) Zara's supply chain strategy A) results in supply more closely matching customer demand. B) results in longer lead times for store order fulfillment, primarily due to shipping time. C) of purely online sales reduces the costs that they would incur with a brick and mortar store system. D) of high volume but low cost apparel requires production well in advance of the actual selling season for each garment type. Answer: A 10 Copyright © 2016 Pearson Education, Ltd. 1.1 Mini Case Study Govt pledges to remove blackout blemish on S'pore Assurance to industries, thorough review of power supply system, and plugging of regulatory loopholes are some measures By Karamjit Kaur TUESDAY'S blackout has damaged Singapore's international reputation, but the Government intends to set things right and do a thorough study to see how to make the power supply system more reliable. 'This is not at all good,' said Trade and Industry Minister George Yeo, when he gave an update on government moves following the power failure that hit a third of Singapore between 10pm and midnight. 'A two-hour cut-off can cause a lot of harm to industries for which electrical supply is critical,' he said. Damage control has already kicked in, he told reporters at Nanyang Polytechnic yesterday, after an SAF Day ceremony. He said he had told the Economic Development Board to 'quickly put out the explanations to our clients and make sure that they know we are investigating as quickly as we can and we will put right the problems'. The Energy Market Authority (EMA) is also acting to plug a loophole in the regulatory framework that leaves it without the authority to penalise United States refiner ConocoPhillips should it be found responsible for any disruption to the gas supply. ConocoPhillips receives the gas from Indonesia, and sells it to SembCorp Gas, to sell on to power plants. This situation will change by the end of the year as regulatory controls are being put in place, EMA's spokesman told The Straits Times. EMA regulates all other companies along the power chain, even SP Services which reads energy meters. In the meantime, investigations continue into why a valve on the gas pipeline from West Natuna tripped, cutting the supply to three power stations - Tuas Power, PowerSeraya and SembCorp Cogen. They failed when they could not switch to their backup diesel systems in time. This is the fifth such incident in less than two years. 11 Copyright © 2016 Pearson Education, Ltd. Now it has recurred, 'we have got to put this right... and see how we can make the system more robust'. The key is ensuring that in an emergency, the power-generating turbines can be switched to diesel before they shut down, as they take an hour to 90 minutes to restart. Still, he said, no system in the world is fail-safe. 'If someone tells you it's fail-safe, be sceptical. But we must try our very best and learn from our mistakes.' Part of the problem is that Singapore started using natural gas only in 1992 and the industry is not yet completely familiar with possible hiccups. A solution to the problem is to build local supplies of compressed natural gas or liquefied natural gas into the system, so there is always a reservoir to be tapped. Plans are being studied and work on building the facilities needed will start as soon as possible, he said. Today, 60 per cent of electricity here is generated by natural gas-powered plants, the rest by oil-powered plants. Asked if the EMA would be pressured to speed up the probe, he said it was already working full-time to get to the bottom of the problem and cautioned that careful investigation was needed before fingers are pointed. Asked if blackout-hit businesses would be compensated, he said it was too early to discuss such matters. 1) Draw a 5-stage power supply chain based on your understanding of the scenario above. Supplier Mfg./Refiner Distributor Retailer Consumer We Natural Gas from Conoco SembCorp Tuas Power Residential W. Natuna, Philips Gas Customers eg. Indonesia HDB homes 2)C/L Natural Gas SembCorp Industrial New Natural Gas Supply from Reservoir Cogen Customers eg. Brunei Factories 3) New Source Power Seraya Commercial Customers eg. Offices 12 Copyright © 2016 Pearson Education, Ltd.  2) Suggest one way to improve the supply chain internally within a stage. Add a storage reservoir just before Conoco Philips i.e the Jurong Rock Caverns (underground storage reservoir) to store compressed/liquefied natural gas. From article above “A solution to the problem is to build local supplies of compressed natural gas or liquefied natural gas into the system, so there is always a reservoir to be tapped.” https://www.youtube.com/watch?v=K7_HybzGucQ https://www.youtube.com/watch?v=KH68V9k-jw8 S'pore shifting to cleaner alternatives, but LNG to remain primary energy source for now, Singapore News & Top Stories - The Straits Times 3) Suggest one way to improve the supply chain externally outside a stage. Obtain new sources of natural gas supplies as was done with Brunei. Other new sources would be renewable energy such as solar power, wind etc. Commentary: The changing geopolitics of clean energy will impact Singapore’s Green Plan - CNA (channelnewsasia.com) Wind turbine at Pulau Semakau can power about 35 flats, Singapore News & Top Stories - The Straits Times Planning deal signed for massive Australia-Singapore solar power link (renewablesnow.com) 'Just a matter of when': the $20bn plan to power Singapore with Australian solar | Renewable energy | The Guardian How Singapore Plans To Pipe Electricity From Australia - YouTube Singapore begins importing renewable energy from Laos via Thailand, Malaysia | The Straits Times 13 Copyright © 2016 Pearson Education, Ltd.