Finals

Question 1

The objective of ________________ is to coordinate activities within the supply chain to maximize the supply chain’s competitive advantage and benefits to the ultimate consumer.

Answer 1

supply chain
management

Question 2

Transfer traditional internal activities and resources to outside vendors

Answer 2

Outsourcing

Question 3

Six Sourcing Strategies

Answer 3

▶ Many suppliers
▶ Few suppliers
▶ Vertical integration
▶ Joint ventures
▶ Keiretsu networks
▶ Virtual companies

Question 4

Commonly used for commodity
products

Answer 4

Many Suppliers

Question 5

Supplier is responsible for technology, expertise, forecasting, cost, quality, and delivery.

Answer 5

Many Suppliers

Question 6

Purchasing is typically based on price while Suppliers compete with one another

Answer 6

Many Suppliers

Question 7

Buyer forms longer term relationships with suppliers to create value through economies of scale and learning curve improvements.

Answer 7

Few Suppliers

Question 8

Suppliers more willing to participate in JIT programs and contribute design and technological expertise.

Answer 8

Few Suppliers

Question 9

Cost of changing suppliers is huge and contains trade secrets and other alliances.

Answer 9

Few Suppliers

Question 10

Developing the ability to produce goods or service previously purchased.

Answer 10

Vertical Integration

Question 11

Can improve cost, quality, and inventory but requires capital, managerial skills, and demand.

Answer 11

Vertical Integration

Question 12

Risky in industries with rapid technological change.

Answer 12

Vertical Integration

Question 13

Formal collaboration
▶ Enhance skills
▶ Secure supply
▶ Reduce costs

Answer 13

Joint Ventures

Question 14

Cooperation without diluting brand or conceding competitive advantage.

Answer 14

Joint Ventures

Question 15

A middle ground between few suppliers and vertical integration

Answer 15

Keiretsu Networks

Question 16

Supplier becomes part of the company coalition and often provide financial support for suppliers through ownership or loans

Answer 16

Keiretsu Networks

Question 17

Members expect long-term relationships and provide technical expertise and stable deliveries as it may extend through several levels of the supply chain

Answer 17

Keiretsu Networks

Question 18

Fluid organizational boundaries that allow the creation of unique enterprises to meet changing market demands.

Answer 18

Virtual Companies

Question 19

Relationships may be short- or long-term with an exceptionally lean performance, low capital investment, flexibility, and speed.

Answer 19

Virtual Companies

Question 20

Supply Chain Risk

Answer 20

▶ More reliance on supply chains means more risk
▶ Fewer suppliers increase dependence
▶ Compounded by globalization and logistical complexity
▶ Vendor reliability and quality risks
▶ Political and currency risks

Question 21

Risk and Mitigation Tactics

Answer 21

▶ Research and assess possible risks
▶ Innovative planning
▶ Reduce potential disruptions
▶ Prepare responses for negative events
▶ Flexible, secure supply chains
▶ Diversified supplier base

Question 22

Occurs when orders are relayed through the supply chain increasing at each step.

Answer 22

Bullwhip Effect

Question 23

Supplier Certification

Answer 23

Qualification
Education
Certification

Question 24

to obtain efficient operations through the integration of all material acquisition, movement, and storage activities

Answer 24

Logistics Management

Question 25

Allows competitive advantage to be gained through reduced costs and improved customer service

Answer 25

Logistics Management

Question 26

Outsourcing logistics can reduce inventory, costs, and improve delivery reliability and speed

Answer 26

Third-Party Logistics (3PL)