Designing the Distribution Network in a Supply Chain, Papers of Computer Fundamentals

Download Designing the Distribution Network in a Supply Chain and more Papers Computer Fundamentals in PDF only on Docsity! Chapter 2 Supply Chain Performance: Achieving Strategic Fit and Scope True/False 1. A company’s competitive strategy defines the set of customer needs that it seeks to satisfy through its products and services. Answer: True Difficulty: Easy 2. The value chain emphasizes the close relationship between all the functional strategies within a company. Answer: True Difficulty: Moderate 3. A company’s product development strategy defines the set of customer needs that it seeks to satisfy through its products and services. Answer: False Difficulty: Moderate 4. A company’s product development strategy specifies the portfolio of new products that it will try to develop. Answer: True Difficulty: Easy 5. A company’s supply chain strategy specifies how the market will be segmented and how the product will be positioned, priced, and promoted. Answer: False Difficulty: Easy 6. A company’s supply chain strategy determines the nature of procurement and transportation of materials as well as the manufacture and distribution of the product. Answer: True Difficulty: Easy 7. The degree of supply chain responsiveness should be consistent with the implied uncertainty. Answer: True Difficulty: Easy 8. The degree of supply chain responsiveness does not need to be consistent with the implied uncertainty. Answer: False Difficulty: Moderate 9. To achieve complete strategic fit, a firm must ensure that all functions in the value chain have consistent strategies that support the competitive strategy. Answer: True Difficulty: Moderate 10. To achieve complete strategic fit, a firm must ensure that all functions in the value chain have diverse strategies that support functional goals. Answer: False Difficulty: Moderate 11. Because demand and supply characteristics change, the supply chain strategy must change over the product life cycle if a company is to continue achieving strategic fit. Answer: True Difficulty: Easy 12. The supply chain strategy must be established at the beginning of the product life cycle and not changed if a company is to continue achieving strategic fit. Answer: False Difficulty: Easy 13. To retain strategic fit, supply chain strategy must be adjusted over the life cycle of a product and as the competitive landscape changes. Answer: True Difficulty: Moderate 14. The intercompany scope of strategic fit is essential today because the competitive playing field has shifted from company versus company to supply chain versus supply chain. Answer: True Difficulty: Moderate 15. The intercompany scope of strategic fit is no longer relevant today because the competitive playing field has shifted from company versus company to supply chain versus supply chain. Answer: False Difficulty: Easy 16. The intercompany scope of strategic fit requires firms to evaluate every action in the context of the entire supply chain. Answer: True Difficulty: Moderate 17. There is a close connection between the design and management of supply chain flows and the success of a supply chain. Answer: True Difficulty: Easy Multiple Choice 1. A company’s competitive strategy a. defines the set of customer needs that it seeks to satisfy through its products and services. b. specifies the portfolio of new products that it will try to develop. c. specifies how the market will be segmented and how the product will be positioned, priced, and promoted. e. all of the above Answer: e Difficulty: Moderate 11. A supply chain strategy involves decisions regarding all of the following except a. inventory. b. transportation. c. new product development. d. operating facilities. e. information flows. Answer: c Difficulty: Moderate 12. Which of the following is a key to the success or failure of a company? a. The competitive strategy and all functional strategies must fit together to form a coordinated overall strategy. b. Each functional strategy must support other functional strategies and help a firm reach its competitive strategy goal. c. The different functions in a company must appropriately structure their processes and resources to be able to execute strategies successfully. d. All of the above are keys to success. e. None of the above are a key to success. Answer: d Difficulty: Moderate 13. Which of the following is not a key to the success or failure of a company? a. The competitive strategy and all functional strategies must fit together to form a coordinated overall strategy. b. Each functional strategy must support other functional strategies and help a firm reach its competitive strategy goal. c. The different functions in a company must appropriately structure their processes and resources to be able to execute strategies successfully. d. All of the above are keys to success. e. None of the above are a key to success. Answer: d Difficulty: Moderate 14. Which of the following is not a key to the success or failure of a company? a. The competitive strategy and all functional strategies must fit together to form a coordinated overall strategy. b. The competitive strategy and all functional strategies operate independently of each other. c. The different functions in a company must appropriately structure their processes and resources to be able to execute strategies successfully. d. Each functional strategy must support other functional strategies and help a firm reach its competitive strategy goal. e. All of the above are keys to success. Answer: b Difficulty: Moderate 15. Which of the following are basic steps to achieving strategic fit? a. Understanding the customer and supply uncertainty. b. Understanding the supply chain capabilities. c. Achieving strategic fit. d. All of the above are basic steps to achieving strategic fit. e. None of the above are a basic step to achieving strategic fit. Answer: d Difficulty: Moderate 16. Customer demand from different segments varies along which of the following attributes? a. The quantity of product needed in each lot. b. The response time that customers are willing to tolerate. c. The variety of products needed. d. The service level required. e. all of the above Answer: e Difficulty: Easy 17. The uncertainty of customer demand for a product is the a. rate of strategic uncertainty. b. demand uncertainty. c. implied demand uncertainty. d. average forecast error. e. none of the above Answer: b Difficulty: Moderate 18. The uncertainty that exists due to the portion of demand that the supply chain is required to meet is the a. rate of strategic uncertainty. b. demand uncertainty. c. implied demand uncertainty. d. average forecast error. e. none of the above Answer: c Difficulty: Moderate 19. Which of the following customer needs will cause implied uncertainty of demand to increase? a. Range of quantity required increases b. Lead time decreases c. Variety of products required increases d. Required service level increases e. all of the above Answer: e Difficulty: Easy 20. Which of the following customer needs will cause implied uncertainty of demand to decrease? a. Range of quantity required increases b. Lead time decreases c. Variety of products required increases d. Required service level increases e. none of the above Answer: e Difficulty: Moderate 21. Which of the following customer needs will cause implied uncertainty of demand to increase? a. Product margin b. Lead time decreases c. Average stockout rate d. Average forced season end markdown e. none of the above Answer: b Difficulty: Moderate 22. Which of the following characteristics of customer demand have a correlation with implied uncertainty? a. Product margin b. Average forecast error c. Average stockout rate d. Average forced season end markdown e. all of the above Answer: e Difficulty: Moderate 23. Which of the following is not a characteristic of customer demand correlated with implied uncertainty? a. Product margin b. Unpredictable and low yields c. Average stockout rate d. Average forced season end markdown e. None of the above are correlated with implied uncertainty Answer: b Difficulty: Moderate 24. Which of the following supply chain capabilities will cause supply uncertainty to increase? a. Frequent breakdowns b. Unpredictable and low yields c. Poor quality d. Limited supply capacity e. all of the above Answer: e Difficulty: Easy 25. Which of the following supply chain capabilities will cause supply uncertainty to increase? a. Evolving production process b. Inflexible supply capacity c. Limited supply capacity d. Ensure that all functional strategies within the supply chain support the supply chain’s level of responsiveness e. all of the above Answer: c Difficulty: Moderate 36. The cost of making and delivering a product to the customer is referred to as a. supply chain responsiveness. b. supply chain efficiency. c. cost-responsiveness efficient frontier. d. implied uncertainty. e. none of the above Answer: b Difficulty: Easy 37. The curve that shows the lowest possible cost for a given level of responsiveness is referred to as the a. supply chain responsiveness curve. b. supply chain efficiency curve. c. cost-responsiveness efficient frontier. d. responsiveness spectrum. e. none of the above Answer: c Difficulty: Moderate 38. A firm that is not on the cost-responsiveness efficient frontier can improve a. both responsiveness and cost performance. b. only responsiveness. c. only cost performance. d. responsiveness, but not cost performance. e. neither responsiveness nor cost performance. Answer: a Difficulty: Easy 39. A firm that is on the cost-responsiveness efficient frontier can improve a. responsiveness only by increasing cost and becoming less efficient. b. cost performance only by reducing responsiveness. c. both responsiveness and cost performance by improving processes and changing technology to shift the efficient frontier. d. all of the above e. neither responsiveness nor cost performance. Answer: d Difficulty: Moderate 40. A graph with two axes with implied uncertainty along the horizontal axis and responsiveness along the vertical axis is referred to as the a. implied uncertainty spectrum. b. responsiveness spectrum. c. uncertainty/responsiveness map. d. zone of strategic fit. e. none of the above Answer: c Difficulty: Moderate 41. The relationship where increasing implied uncertainty from customers and supply sources is best served by increasing responsiveness from the supply chain is known as the a. implied uncertainty spectrum. b. responsiveness spectrum. c. uncertainty/responsiveness map. d. zone of strategic fit. e. none of the above Answer: d Difficulty: Moderate 42. To achieve complete strategic fit, a firm must a. consider all functional strategies within the value chain. b. ensure that all functions in the value chain have consistent strategies that support the competitive strategy. c. ensure that all substrategies within the supply chain such as manufacturing, inventory, and purchasing be consistent with the supply chain’s level of responsiveness. d. all of the above e. none of the above Answer: d Difficulty: Hard 43. The drive for strategic fit should come from a. the supply chain manager. b. the strategic planning department. c. the highest levels of the organization, such as the CEO. d. middle management. e. sales and marketing. Answer: c Difficulty: Hard 44. The important points to remember about achieving strategic fit are a. there is one best supply chain strategy for all competitive strategies. b. there is no right supply chain strategy independent of the competitive strategy. c. there is a right supply chain strategy for a given competitive strategy. d. all of the above e. b and c only Answer: e Difficulty: Hard 45. The preferable supply chain strategy for a firm that sells multiple products and serves customer segments with very different needs is to a. set up independent supply chains for each different product or customer segment. b. set up a supply chain that meets the needs of the highest volume product or customer segment. c. tailor the supply chain to best meet the needs of each product’s demand. d. set up a supply chain that meets the needs of the customer segment with the highest implied uncertainty. e. set up a supply chain that meets the needs of product with the highest implied uncertainty. Answer: c Difficulty: Hard 46. Which of the following would not be a demand and supply characteristic toward the beginning stages of a product’s life cycle? a. Demand is very uncertain and supply may be unpredictable. b. Demand has become more certain and supply is predictable. c. Margins are often high and time is crucial to gaining sales. d. Product availability is crucial to capturing the market. e. Cost is often of secondary consideration. Answer: b Difficulty: Moderate 47. Which of the following would be a demand and supply characteristic toward the beginning stages of a product’s life cycle? a. Demand has become more certain and supply is predictable. b. Margins are lower due to an increase in competitive pressure. c. Product availability is crucial to capturing the market. d. Price becomes a significant factor in customer choice. e. none of the above Answer: c Difficulty: Moderate 48. Which of the following would not be a demand and supply characteristic in the later stages of a product’s life cycle? a. Demand has become more certain and supply is predictable. b. Margins are lower due to an increase in competitive pressure. c. Product availability is crucial to capturing the market. d. Price becomes a significant factor in customer choice. e. All of the above are characteristics of the later stages. Answer: c Difficulty: Moderate 49. The functions and stages that devise an integrated strategy with a shared objective are referred to as a. competitive strategy. b. supply chain strategy. c. scope of strategic fit. d. scope of marketing strategy. e. scope of product development strategy. Answer: c Difficulty: Moderate 50. The most limited scope over which strategic fit is considered is one operation within a functional area in a company. This is referred to as a. intracompany intraoperational scope.