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Supply Chain Management

TRUE/FALSE.Write 'T' if the statement is true and 'F'if the statement is false.
1)Transportation plays a key role in every supply chain because products are usually produced
and consumed in the same location.
2)Cycle inventory exists because producing or purchasing in large lots allows a stage of the supply
chain to exploit economies of scale and increase cost.
3)Purchasing, also known as procurement, is the process used to rate supplier performance.
4)Supply chain coordination requires each stage of the supply chain to take into account the
impact its actions have on other stages.
5)Information is crucial to the performance of a supply chain because it provides the basis upon
which supply chain managers make decisions.
6)A distributor makes investment decisions regarding the transportation infrastructure and then
makes operating decisions to try to maximize the return from these assets.
7)A lot or batch sizeis the quantity that a stage of the supply chain either produces or purchases at
a given time.
8)Sourcing processes include the selection of suppliers, design of supplier contracts, product
design collaboration, procurement of material, and evaluation of supplier performance.
9)Information is the supply chain driver that serves as the glue allowing the other three drivers to
work together to create an integrated, coordinated supply chain.
10)A lack of coordination occurs either because different stages of the supply chain have objectives
that conflictor because information moving between stages gets delayed and distorted.
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
11)The quantity of inventory that a stage of the supply chain either produces or purchases at a
given time is
A)an order.
B)a job.
C)a lot or batch.
D)a shipment.
E)none of the above

12)Supply chain coordination


A)improves if all stages of the chain take actions that together increase total supply chain
profits.
B)requires each stage of the supply chain to take into account the impact its actions have on
other stages.
C)cannot be achieved in real world applications.
D)all of the above
E)A and B only
13)The process by which companies acquire raw materials, components, products, services, and
other resources from suppliers to execute their operations is
A)supplier selection.
B)supplier scoring and assessment.
C)procurement.
D)sourcing.
14)Information technology (IT) consists of the tools
A)used to gain awareness of information.
B)to act on information to improve the performance of the supply chain.
C)to analyze information.
D)B and C only
15)Transportation plays a key role in every supply chain because
A)products are normally produced and consumed in the same location.
B)transportation is not a factor in determining profitability.
C)products are rarely produced and consumed in the same location.
D)the costof transportation is inconsequential.

ESSAY. Write your answer in the space provided or on a separate sheet of paper.
16)What is the bullwhip effect and how does it relate to lack of coordination in the supply chain?
17)Discuss the role of cycle inventory in the supply chain.
18)Discuss the two key players involved in any transportation in the supply chain.
19)What are someof the benefitsof effective sourcing decisions?
20)Explain the role of information in the supply chain.