Scm Quiz 3modules

7/28/2019 Scm Quiz 3modules

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SCM Quiz

Mod-1 Introduction to Supply Chain Management

1. The Supply Chain Management refers to applying a total systems approach tomanaging the entire flow of information, material, and services from raw

materials suppliers through factories and warehouses to the end customers

2. Supply chain is a sequence of suppliers, transporters, warehouses,manufacturers, wholesalers/distributors, retail outlets and final customers

3. A company can identify its supply chain by first selecting a particular productgroup or family, and trace the flow of materials and information from final

customer backward through the distribution system to the manufacturer and

then to suppliers and the source of raw material

4. The total time for material to travel through the entire supply chain can be6months to an year.5. SCM can reduce waiting time in various stages leading to reduction in inventory,

increased flexibility, reduced costs, reduced cycle time and better deliveries

6. Companies have improved their internal operations and now find it necessary toconsider relations with external customers and suppliers in supply chain to gain

further improvements in operations

7. The goals of SCM is to reduce uncertainty and risks in the supply chain,positively affecting inventory levels, cycle time, processes and ultimately end-

customer service levels.

8. The focus of SCM is on system optimization9. The design, planning and operation of a supply chain have a strong impact on

overall profitability and success

10.SCM has become a hot competitive advantage as companies struggle to get theright stuff to the right place at right time

11.SCM build chain of suppliers that focus on both waste and maximizing value tothe ultimate customer

12.The Objective of SCM is to maximize the overall value generated.13.The valuea supply chain generates is the difference between what the final

product is worth to the customer and the costs the supply chain incurs in filling

the customers request

14.Value is correlated with supply chain profitability the difference between revenuegenerated from customer and the overall cost across the supply chain.

15.There three decision phases of supply chain are: 1. Supply chain strategy ordesign 2. Supply chain planning and 3. Supply chain operation

16.Companys must take into account uncertainty in anticipated market conditionsover next few years before making supply chain design

17.Supply chain planning decisions must consider the uncertainty in demand,exchange rates and competition over the planning horizon

18. Strategic or long-range decisions made by companies include:a. the location and capacities of production and warehousing facilities

b. products to be manufactured or stored at various locations

c. modes of transportation to be made available along different shipping legs andd. type of information system to be utilized


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19.Supply chain planning includes decisions regarding:a. which market to be served from which locations

b. the planned build up of inventories

c. the subcontracting of manufacturing

d. the replenishment and inventory policies to be followede. policies regarding back up locations in case of stock out

f. the timing and size of marketing promotions

20.Activities involved in Supply Chain Operations are:a. allocating individual orders to inventory or productionb. setting dates for fulfilling ordersc. generating pick lists at a warehoused. allocating an order to a particular shipping mode or shipmente. Getting delivery schedules of trucks andf. placing replenishment orders

21.Two different ways of Process overview of a supply chain are:a. cycle view b. the push-pull view

22.Cycle view of supply chain process can be broken down into four processescycles viz., a. customer order cycle, b. replenishment cycle, c. manufacturing

cycle and d. procurement cycle

23.In pull process, execution is initiated in response to a customer order.24.In push process, execution is in anticipation of customer order25.The Supply chain macro process in a firm are: a. CRM b. ISCM c. SRM26.CRM stands for Customer Relations Management27.ISCM stands for Internal Supply Chain Management28.SRM stands for Suppliers Relations Management29.CRM includes marketing, pricing, sales, order management, and call center

management.

30.ISCM includes planning of production, storage, preparation of demand supplyplans and fulfillment of actual orders

31.SRM includes evaluation and selection of suppliers, negotiation of terms andcommunication regarding new products and orders with suppliers

32.A companys competitive strategy defines, relative to its competitors, the set ofcustomer needs that it seeks to satisfy through its products and services.

33.A product development strategy specifies the portfolio of new products that acompany will try to develop34.A marketing and sales strategy specifies how the market will be segmented andhow the product will be positioned, priced and promoted

35.A supply chain strategy determines:a.the nature of procurement of raw materials,

b. transportation of materials to and from the company,

c. manufacture of product or operation to provide the service,

d. distribution of the product to the customer, along with any follow up service,

and

e. a specification of whether these processes will be performed in-house or

outsourced

36.the logistical and cross functional drivers of supply chain performance are:


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i. facilities, ii. inventory, iii. transportation, iv. information, v. sourcing, and vi.

pricing

37.Inventory exists in supply chain in the form of RM, WIP, and FG that suppliers,manufacturers, distributors and retailers hold.

38.Safety inventory is the inventory which is held to meet the excess demand whendemand exceeds expectation/estimation

39.the key to achieving strategic fit is a companys ability to find a balance betweenresponsiveness and efficiency that best matches the needs to its target customer

Mod-2 Designing supply chain network

1. Distribution refer to steps taken to move and store a product from the supplierstage to a customer stage in the supply chain

2. RM and components are moved from suppliers to manufacturers, and finishedproducts are moved from the manufacturer to the end consumer

3. Distribution is a key driver of overall profitability of a firm because it affectsboth the supply chain cost and the customer experience directly

4. Issues that are influenced by structure of distribution network:i. response time ii. product variety iii. product availability iv. customer

experience, v. time to market , vi. order visibility vii. returnability

5. The two key decisions Managers must make when designing a distributionnetwork are: i. will product be delivered to the customer location or picked up

from a preordained site?, ii. will product flow through an intermediary/

intermediary location?

6. The six distribution network designs are:i. manufacturer storage with direct shipping

ii. manufacturer storage with direct shipping and in-transit mergeiii. distributor storage with package carrier delivery

iv. distributor storage with last-mile delivery

v. manufacturer/distributor storage with customer pick up

vi. retail storage with customer pickup

7. Supply chain network design decisions are classified as follows: i.Facilityrole 2. facility location, iii. capacity allocation, iv. market and supply location

8. Factors influencing network design decisions are:i.Strategic factors, ii.Technological factors, iii.Macroeconomic factors,

iv.Political factors, v.Infrastructure factors, vi.Competitive factors, vii.Customer

response time and local presence, viii. Logistics and facility costs

9. Kasra Fedrows (1977) suggests following classification of possible strategic rolesfor various facilities in global supply chain network:i. offshore facility, ii. Source facility, iii. Server facility,iv. Contributor facility, v. out post facility, vi. Lead facility

10.Macroeconomic factors include taxes, tariffs, exchange rates, and othereconomic factors that are not internal to an individual firm.

11.Companies prefer politically stable countries and where rules of commerce andownership are well defined

12.The key infrastructure include, availability of sites, labor, transportationterminal, rail service, proximity to sea and airports, highway access, and local

utilities

13.Companies must consider competitors strategy, size, location when designingtheir supply chain network


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14.Logistics and facility cost, incurred with in a supply chain change, as thenumber of facilities, their location, and capacity allocation is changed.

15.Inventory and facility costs increase as the number of facilities in a supply chainincrease.

16.Transportation costs decrease as the number of facilities is increased17.If the number of facilities increases to a point where inbound economies of scaleare lost, then transportation cost increases18.Global network design decisions are made in the following four phases:

i. define supply chain strategy/ design

ii.define the regional facility configuration

iii. select a set of desirable potential sites

iv. location choices

Mod-3 Designing and planning transportation networks

1.

Transportation refers to the movement of product from one location to anotheras it makes its way from the beginning of the supply chain to the customer

2. Transportation is an important supply chain driver because products are veryrarely produced and consumed in the Same location

3. The growth in international merchandise trade was more than three times thegrowth of the US economy over the same period

4. Supply chains use responsive transportation to centralize inventories andoperate with fewer facilities

5. A shipper is the party that requires the movement of the product between twopoints of supply chain

6. The carrier is the party that moves or transports the product.7. Two other parties have a significant impact on transportation: ownersandoperatorsof transportation infrastructure such as roads, ports, canals, and

airports; and bodies that set transportation policy worldwide.

8. A carrier makes investment decisions regarding transportation equipment sometimes infrastructure, and makes decisions to maximize return from these assets

9. A shipper uses transportation to minimize total cost while providing anappropriate level of responsiveness to the customer

10.Transportation originates and ends at nodes and travels on links11.For most modes of transportation, infrastructure such as roads, waterways and

airports is required at the nodes and links, and is owned and managed as public

good throughout the world

12.It is important that infrastructure be managed in such a way that monies areavailable for maintenance and investment in further capacity as needed

13.Transportation policy sets direction for the amount of national resources that gointo improving transportation infrastructure

14.Transportation policy aims to prevent monopoly power, promote faircompetition, and balance environmental, energy, and social concerns in

transportation

15.Supply chain uses a combination of following modes of transportation: i. Air ii.Package carriers, iii. Truck, iv. Rail, v. Water, vi. Pipeline, vii. intermodal

16.The carriers primary objective is to ensure good utilization of its assets whileproviding customers with an acceptable level of service

17.Airlines have a high fixed cost in infrastructure and equipment


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Labour and fuel costs are largely trip related and independent of the number of

passengers or amount of cargo carried on a flight

18.An airline goal is to maximize the daily flying time of a plane and revenuegenerated per trip

19.Given the large fixed costs and relatively low variable costs, revenuemanagement is done by varying seat prices and allocation of seats to differentprice classes

20.Presently airlines practice revenue management for passengers and much lessfor cargo

21.Air carriers normally move shipments under 500 pounds including high-valuebut light weight high-tech products

22.Key issues that air carriers face include identifying the location and number ofhubs, assigning planes to routes, setting up maintenance schedules for planes,

scheduling crews, and managing prices and availability at different prices

23.Package carriers use air, truck, and rail to transport time-critical smallerpackages.

24.Package carriers are expensive and cannot compete on price for large shipments25.With increase in JIT deliveries and focus on inventory reduction, demand for

package carriers has grown

26.Package carriers are preferred mode of transport for e-business such asAmazon.com, Dell etc., to send small packages to customers

27.Companies use air-cargo carriers for larger shipments and package carriers forsmaller and time-sensitive shipments

28.Package carriers have trucks that make local deliveries and pick up packages29.Key issues in Package Carrier industry include the location and capacity of

transfer points as well as information capability to facilitate and track package

flow

30.Truck is more expensive than rail but door to door shipment and shorterdelivery time is possible

31.TL have relatively low fixed costs and owning a few trucks is sufficient to enterbusiness

32.TL pricing displays economies of scale with respect to the distance traveled33.TL shipping is suitable for transportation between manufacturing facilities and

warehouses or between suppliers and manufacturers

34.LTL operations are priced to encourage shipments in small lots, usually less thanhalf a truck as it tends to be cheaper for larger shipments

35.A key to reducing LTL costs is the degree of consolidation that carriers canachieve for the loads carried36.Key issues for the LTL industry include location of consolidation centers,assigning of loads of trucks and scheduling and routing of pickup and delivery.

37.Rail carriers incur a high fixed cost in terms rails, locomotives, cars, and yards38.Any idle time, once a train is powered is very expensive because labor and fuel

costs are incurred even though trains are not moving

39.Idle time occurs when trains exchange cars for different destinations and it alsooccurs because of track congestion

40.Labor and fuel together account for over 60% of railroad expense41.Rail is suitable for very heavy, low value shipments that are not time sensitive.42.water transport is ideally suited for carrying very large loads at low cost.43.Trend in maritime trade world wide has been growth in containerization.


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44.Delays at ports, customs, security and the management of containers used aremajor issues in global shipping

45.pipeline is primarily used for transport of crude petroleum, refined petroleumproducts and natural gas

46.Pipeline operations are optimized at about 80 to 90% pipeline capacity47.Pipeline pricing usually consists of a fixed component related to shippers peakusage and a second charge relating to actual quantity transported48.Intermodal transportation is the use of more than one mode of transport to move

a shipment to its destination

49.Intermodal traffic has gown considerably with increased use of containers forshipping and rise in global trade. Containerized freight often uses truck/ water/

rail combination particularly for global freight

50.Key issues in intermodal transport involve exchange of information to facilitateshipment transfers between different modes because these transfers often involve

considerable delay, hurting delivery time performance

51.Roads, seaports, airports, rail and canals are some of the major infrastructureelements that exist along nodes and links of a transportation network

52.Economists have argued for public ownership of transportation infrastructureassets but setting quasi-market prices to improve overall efficiency

53.It may be most effective to charge a congestion toll and use the money generatedto improve the effectiveness of transportation infrastructure

54.Design options for transportation network include: i. Direct shipment network,ii.Direct shipping with milk runs, iii. All shipments via central DC withinventory storage, iv. All shipments via central DC with cross-dock, v. Allshipments via central DC using milk runs, vi. Tailored network

55.All transportation decisions made by supplier in a supply chain network musttake into account their impact on inventory costs, facility and processing cost, thecost of coordinating operations and level of responsiveness provided to customers

Name:--------------------------------------------------- Reg. no.-----------------------

SCM Quiz paper 13.4.121. The Supply Chain Management refers to applying a total systems approach to

managing the entire flow of ________, ________, and_______ from ____

________ _________ through _________and _________to the end customers.

2. A company can identify its supply chain by first selecting a particular________group or_______, and trace the flow of materials and information fromfinal customer backward through the_______ _______to the ___________and

then to_________ and the source of____ ________

3. The total time for material to travel through the entire supply chain can be__________ to an_______.

4. SCM can reduce_________ time in various stages leading to reductionin_________, _______ ________, ______ ______, _______ ______ time and

better deliveries

5. Companies have improved their _______ ________and now find it necessary toconsider relations with ________ _________and ________in supply chain to gain

further improvements in operations


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6. The goals of SCM is to reduce _________and ______in the supply chain,positively affecting_________ ______, _____ _____, _______and ultimately end-

customer service levels.

7. The______, ________and _________of a supply chain have a strong impact onoverall _________and ________

8. SCM has become a hot competitive advantage as companies struggle to get the_____ ______to the ______ _______at _____ ______9. The Objective of SCM is to _______the overall value generated.10.The valuea supply chain generates is the difference between what the final

product is _______to the customer and the ______the supply chain incurs in

filling the customers request

11.The three decision phases of supply chain are: 1. ______ ______ ______or_______2. _______ _______ ______and 3._______ ________ ________

12.Supply chain planning decisions must consider the uncertainty in_______,_________ ______and __________over the planning horizon

13. Strategic or long-range decisions made by companies include:a. the ________and _________of production and warehousing facilitiesb. products to be__________ or ________at various locations

c. modes of ___________to be made available along different_________ legs and d.

type of__________ system to be utilized

14.Activities involved in Supply Chain Operations are:a. allocating individual orders to ________or ___________b. setting dates for _________ ________c. generating pick lists at a ________d. allocating an order to a particular _______ _____or _______e. Getting delivery schedules of _______andf. placing _____________orders

15.Cycle view of supply chain process can be broken down into four processescycles viz., a.________ _______ _______, b._______ ________, c. _______

___________and d. _________ _________

16.In pull process, execution is initiated in ________to a customer order.17.In push process, execution is in ____________of customer order18.CRM includes________, _______, ______, ______ _________, and _____

_______ ______________.

19.ISCM includes_______ __ _________, ________, _______ ___ ________ _____________and ________ ___ ______ ________

20.A companys competitive strategy defines, ______ __ ___ __________, the set ofcustomer needs that it seeks to _______through its________ and_______.

21.A _______ _________strategy specifies the portfolio of new products that acompany will try to develop

22.A ________and _______strategy specifies how the market will be segmented andhow the product will be positioned, priced and promoted

23.A supply chain strategy determines:a.the nature of ___________of raw materials,

b. ____________of materials to and from the company,

c. ________________of product or___________ to provide the service,

d. ____________of the product to the customer, along with any follow up service,

and e. ____________of whether these processes will be performed in-house oroutsourced


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24.the logistical and cross functional drivers of supply chain performance are:i._______, ii.________, iii._________, iv.__________, v.________, and vi._______

25.Inventory exists in supply chain in the form of___, ____, and___ that________,_____________, ___________and __________hold.

26.Safety inventory is the inventory which is held to meet the ______demand whendemand exceeds _________/_________

27.The key to achieving strategic fit is a companys ability to find a balance between____________and __________that best matches the needs to its target customer

26.Distribution refer to steps taken to _____and _____a product from the________ ______to a_______ ________ in the supply chain

27.Issues that are influenced by structure of distribution network:i. ______ _______ ii. _______ ________ iii. _______ ________ iv. __________

___________, v. ____ to ______, vi._____ ________ vii. _____________

28.The two key decisions Managers must make when designing adistribution network are: i. will _______ ___ _______to the customer

location or ______ ____from a preordained site?, ii. will product flow

through an_________/________ _________?29.The six distribution network designs are:

i. manufacturer storage with________ _______ ii. manufacturer storagewith ________ _______and_________ ________

iii. distributor storage with ________ _________ ___________

iv. distributor storage with _______ ___________

v. manufacturer/distributor storage with _______ _________ ___

vi. retail storage with _________ _________

30.Macroeconomic factors include_____, ______, ______ _____, and other_______ _______that are not internal to an individual firm.

31.The key infrastructure include,_______ ___ _______ , ______,__________ ________,_______ _______ , proximity to sea and airports,

highway access, and local utilities

32.Companies must consider________ ________,_____ ,________ whendesigning their supply chain network

33.Inventory and facility costs ________as the number of facilities in asupply chain increase.

34.Transportation costs _________as the number of facilities is increased35.Transportation is an important supply chain driver because products are

very rarely _______and _________in the same location

36.The growth in international merchandise trade was more than_____times the growth of the US economy over the same period37.A ________is the party that requires the movement of the productbetween two points of supply chain

38.The ________is the party that moves or transports the product.39.Two other parties have a significant impact on transportation:________

and ____________of transportation infrastructure such as roads, ports,canals, and airports; and bodies that set transportation policy worldwide.

40.A ________makes investment decisions regarding transportationequipment some times infrastructure, and makes decisions to maximize

return from these assets

41.A ________uses transportation to minimize total cost while providing anappropriate level of responsiveness to the customer

42.Transportation originates and ends at ______and travels on ______


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43.For most modes of transportation, infrastructure such as roads,waterways and airports is required at the______ and_______, and is

owned and managed as ______ ______throughout the world

44.It is important that infrastructure be managed in such a waythat________ are available for __________and ___________in further

capacity as needed45._____________ ________sets direction for the amount of national

resources that go into improving transportation infrastructure

46.Transportation policy aims to______ _____ ________, _______________________, and_________ _______ ,_________ , and social

concerns in transportation

47.Supply chain uses a combination of following modes of transportation: i.___ii._______ ______, iii._______, iv._____, v._____, vi. Pipeline, vii.

intermodal

48.The carriers primary objective is to ensure good________of its assetswhile providing customers with an __________level of service

49.Airlines have a high _____ _______in infrastructure and equipment________and _____ ______are largely trip related and independent of the

number of passengers or amount of cargo carried on a flight

50.Given the large fixed costs and relatively low variable costs, revenuemanagement is done by ______ ______ _______and allocation of seats to

different______ ________

51.Presently airlines practice revenue management for _________and muchless for________

52.Air carriers normally move shipments under______ pounds includinghigh-value but_______ ______ high-tech products

53.Key issues that air carriers face include identifying the_______and_______ ___ ________, assigning planes to_______, setting up

_________ _______for planes,________ ________ , and________

________ and availability at different prices

54.Package carriers use____, ______, and _____to transport time-criticalsmaller packages.

55.Package carriers are _______and ________compete on price for largeshipments

56.Package carriers are preferred mode of transport for_________ such asAmazon.com, Dell etc., to send to customers

57.Companies use air-cargo carriers for _______ ___________and packagecarriers for_______ and _________________shipments58.Package carriers have_______ that make local deliveries and _____

___packages

59.Key issues in Package Carrier industry include the _______and________of transfer points as well as __________ __________ to facilitate

and track package flow

60.Truck is more expensive than rail but _____to______ shipmentand________ delivery time is possible

61.TL have relatively_____ fixed costs and owning a_____ trucks issufficient to enter business

62.TL pricing displays______ ___ ______ with respect to the distancetraveled


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63.LTL operations are priced to encourage shipments in_____ ____, usuallyless than _____ __ _____as it tends to be cheaper for larger shipments

64.Key issues for the LTL industry include_______ __ _________ ______,assigning of loads of trucks and ________and ________of pickup and

delivery.

65.Rail carriers incur a high _____ ______in terms rails, locomotives, cars,and yards66.Any idle time, once a train is powered is very________ because______

and _____ ______are incurred even though trains are not moving

67.Idle time occurs when trains________ cars for different destinations andit also occurs because of track________

68.Rail is suitable for very______, low _____shipments that are not______sensitive.

69.Water transport is ideally suited for carrying very ____ _____at____cost.

70.Trend in maritime trade world wide has been growth in _____________.71.pipeline is primarily used for transport of_______ ___________,

________ __________products and _______ ____

72.Pipeline pricing usually consists of a fixed component related to____________ ________ and a second charge relating to actual

________transported

73.Intermodal traffic has grown considerably with increased use ofcontainers for shipping and rise in______ _______. Containerized freight

often uses _______/______/______combination particularly for global

freight

74.Economists have argued for __________ _________of transportationinfrastructure assets but setting____________ prices to improve overall

efficiency

75.It may be most effective to charge a_______ _____ and use the moneygenerated to improve the effectiveness of transportation infrastructure

76.All transportation decisions made by supplier in a supply chain networkmust take into account their impact on_______ _______,

______and_______ _______, the cost of________ ________ and level of

______________provided to customers

77.Outsourcing results in the supply chain function being performed by a______ ________

78.A firm________ a supply chain if it maintains ownership but moves theproduction facility offshore

79.A firm_________if the firm hires an outside firm to perform anoperation rather than executing the operation with in the firm

Supply chain surplus is the difference between the______ __ ________ to the customer

and the total cost of all supply chain activities involved in bringing the product to the

customer

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Scm Quiz 3modules