Managing Supply Chain And Operations: An Integrative Approach, 2nd Edition Test Bank

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Managing SupplyChain and OperationsAn Integrative ApproachSecond EditionS. Thomas FosterScott SampsonCindy WallinScott WebbTest Bank forManaging Supply Chain andOperationsMahesh Srinivasan

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1Managing Supply Chain and Operations, 2e(Foster)Chapter 1Introduction to Supply Chain and Operations Management1.1 Understand Why You Are Studying Supply Chain and Operations Management1) When a company moves its production to another country it is known asA) nearsourcing.B) insourcing.C) offshoring.D) onboarding.Answer: CDiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge2) The recent development where General Motors moved the production of some cars from Michigan toChina can be described asA) insourcing.B) offshoring.C) onboarding.D) nearsourcing.Answer: BDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Reflective Thinking3) The administration of transformation processes that create value for customers by meeting their needsor enabling them to meet their own needs is known asA) supply chain management.B) operations management.C) change management.D) process management.Answer: BDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge4) The cooperation between different firms to create value for customers is known asA) supply chain management.B) operations management.C) change management.D) process management.Answer: ADiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge

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25) The function in any business that is responsible for managing and investing the resources of the firm isA) accounting and finance.B) supply chain management.C) marketing.D) human resources.Answer: ADiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge6) The function in any business that is responsible for designing, managing, and improving processes thatlead to customer satisfaction and delight isA) accounting and finance.B) supply chain and operations management.C) marketing.D) human resources.Answer: BDiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge7) The act of executing and controlling the productive functions of a firm is known asA) process design.B) process management.C) process control.D) process improvement.Answer: BDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge8) The act of monitoring a process for its efficacy, a process that includes dimensions such as cost,timeliness, or quality is known asA) process design.B) process management.C) process control.D) process improvement.Answer: CDiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge

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39) The sale of the same product with another trademark in different countries is known asA) licensing.B) subsidiary.C) franchising.D) joint venture.Answer: ADiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge10) The mechanism that a U.S. corporation can use to allow foreign firms to sell in restricted marketswhile using the original design isA) franchising.B) joint venture.C) licensing.D) subsidiary.Answer: CDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge11) Geographically moving the production of a component or product to a supplier closer from where itwas originally produced is known asA) nearsourcing.B) insourcing.C) outsourcing.D) onboarding.Answer: ADiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge12) The recent development where Apple announced that it was moving production of some Maccomputers to the United States from China can be described asA) insourcing.B) outsourcing.C) onboarding.D) nearshoring.Answer: DDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Reflective Thinking

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413) The proactive management of resources in an effort to be environmentally friendly is calledA) sustainability.B) environmental management.C) resource management.D) green management.Answer: ADiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge14) The country with the highest index score in the year 2013 for Global Manufacturing CompetitivenesswasA) Germany.B) USA.C) China.D) India.Answer: CDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge15) Supply chain management is the administration of transformation processes that create value forcustomers by meeting their needs or enabling them to meet their own needs.Answer: FALSEDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge16) Operations management is cooperation between different firms to create value for customers.Answer: FALSEDiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge17) Supply chain and operations (SC&O) emphasizes the linkages between firms that tie operationstogether with the goal of satisfying customers.Answer: TRUEDiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge18) The act of monitoring a process for its efficacy, a process that includes dimensions such as cost,timeliness, or quality is known as process design.Answer: FALSEDiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge

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519) ________ is cooperation between different firms to create value for customers.Answer: Supply chain managementDiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge20) ________ is the administration of transformation processes that create value for customers by meetingtheir needs or enabling them to meet their own needs.Answer: Operations managementDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge21) ________ emphasizes the linkages between firms that tie operations together with the goal ofsatisfying customers.Answer:Supply chain and operations (SC&O)Diff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge22) ________ are responsible for managing and investing the resources of the firm.Answer: Accounting and financial managersDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge23) ________ proposes new products, performs market studies, and manages sales.Answer: MarketingDiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge24) ________ are experts in designing, managing, and improving processes that lead to customersatisfaction and delight.Answer: SC&O managersDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge25) ________ consists of configuring inputs and resources in a way that provides value, enhances quality,and is productive.Answer: Process designDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge26) ________ is the act of executing and controlling the productive functions of a firm.Answer: Process managementDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge

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627) ________ is the act of monitoring a process for its efficacy, a process that includes dimensions such ascost, timeliness, or quality.Answer: Process controlDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge28) A proactive effort to enhance process performance is known as ________.Answer: process improvementDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge29) ________ is the sale of the same product with another trademark in different countries.Answer: LicensingDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge30) The process of moving the production of an item to another firm or producer is known as ________.Answer: outsourcingDiff: EasyLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge31) Geographically moving the production of a component or product closer to where it was originallyproduced is known as ________.Answer: nearshoringDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge32) Proactively managing to save resources and to "green" production is known as ________.Answer: sustainabilityDiff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Application of Knowledge33) What is supply chain management? How is it different from operations management? How do theycome together to create value for a business?Answer: Supply chain management is cooperation between different firms to create value for customers.Operations management is the administration of transformation processes that create value for customersby meeting their needs or enabling them to meet their own needs. Supply chain and operations (SC&O)emphasizes the linkages between firms that tie operations together with the goal of satisfying customers.The move to SC&O management from just operations management externalizes the view of a productivefirm in a way that is healthy for the world, individual firms, and their global competitiveness.Diff: ModerateLearning Obj.: LO 1.1: Understand Why You Are Studying Supply Chain and Operations ManagementAACSB: Reflective Thinking

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71.2 Define, Understand, and Apply the Components of Supply Chain and OperationsManagement1) Supply Chain and Operations (SC&O) Management encompasses fields such asA) purchasing.B) logistics.C) accounting.D) All of the aboveE) Only A and B aboveAnswer: EDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge2) Critical thinking skillsA) involves purposeful and goal-directed thinking.B) are used to define and solve problems.C) are used to make decisions related to a particular situation.D) All of the aboveE) Only A and C aboveAnswer: DDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge3) Critical thinking skillsA) involves cognitive and metacognitive components.B) involves dispositional components.C) may manifest (or be applied) the same way only in the present context.D) All of the aboveE) Only A and B aboveAnswer: EDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge

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84) Knowledge application and analysisA) is defined as the ability to learn a concept.B) is the application of that knowledge appropriately in another setting.C) helps achieve a higher level of understanding.D) All of the aboveE) Only A and C aboveAnswer: DDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge5) Corporate Social Responsibility (CSR) isA) a form of ethical behavior.B) guides organizations to eliminate unethical economic behaviors.C) guides organizations to eliminate unethical environmental behaviors.D) guides organizations to eliminate unethical social behaviors.E) All of the aboveAnswer: EDiff: EasyLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge6) Information technology application and computing skillsA) are defined as the ability to select an appropriate technology to accomplish a given task.B) are defined as the ability to use that technology to accomplish a given task.C) requires the individual to apply computing skills to solve problems.D) requires the individual to show proficiency with computer software programs.E) All of the aboveAnswer: EDiff: EasyLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge7) The core activities any firm performs are calledA) value chain management.B) supply chain management.C) operations management.D) process management.Answer: ADiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge

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98) Supplier management is an activity which would fall within the domain ofA) value chain management.B) supply chain management.C) operations management.D) process management.E) All of the aboveAnswer: EDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Reflective Thinking9) Which primary supply chain flow is always bidirectional?A) Product flowB) Monetary flowC) Information flowD) Process flowAnswer: CDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge10) Which primary supply chain flow is always unidirectional?A) Product flowB) Monetary flowC) Information flowD) Process flowAnswer: BDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge11) Supply Chain and Operations (SC&O) encompasses fields such as purchasing and logistics.Answer: TRUEDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge12) Critical thinking involves purposeful and goal-directed thinking used to define and solve problems.Answer: TRUEDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge

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1013) Critical thinking involves cognitive, metacognitive, and dispositional components, which are alwaysapplied the same way in specific contexts.Answer: FALSEDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge14) Knowledge application and analysis is defined as the ability to learn a concept and then apply thatknowledge appropriately in always the same setting only.Answer: FALSEDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge15) Business ethics are sets of guiding principles that influence the way individuals and organizationsbehave within the society in which they operate.Answer: TRUEDiff: EasyLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge16) Corporate social responsibility (CSR) is a form of ethical behavior that requires that organizationsunderstand, identify, and eliminate only unethical social behaviors.Answer: FALSEDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge17) Applying the principles of Corporate Social Responsibility (CSR), business can make the world abetter place by alleviating poverty and improving environmental performance.Answer: TRUEDiff: EasyLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge18) Information technology application and computing skills are defined as the ability to select and useappropriate technology to accomplish a given task.Answer: TRUEDiff: EasyLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge

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1119) A key part of a firm's value chain is collaboration with and management of the key suppliers.Answer: TRUEDiff: ChallengingLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge20) In a supply chain for paper products, farmers that harvest fiber and wood chips are known asdownstream members of the supply chain.Answer: FALSEDiff: EasyLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge21) Consumers are downstream in a supply chain as compared to manufacturers.Answer: TRUEDiff: EasyLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge22) The value chain comprises the core activities any firm performs.Answer: TRUEDiff: EasyLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge23) The accounting function in any firm performs a key value-added activity for the customer.Answer: FALSEDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Reflective Thinking24) Operations management involves the firm's value-added activities.Answer: TRUEDiff: EasyLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Reflective Thinking25) Product flows in a supply chain could sometimes be bidirectional.Answer: TRUEDiff: ChallengingLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Reflective Thinking

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1226) Monetary flows in a supply chain are always bidirectional.Answer: FALSEDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge27) Information flows in a supply chain are always bidirectional.Answer: TRUEDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge28) Service supply chains have lower customer-created variation as compared to product supply chains.Answer: FALSEDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge29) Henry Ford pioneered the use of mass production and standardization.Answer: TRUEDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge30) Manufacturers in a supply chain are ________ to the consumers in the supply chain.Answer: upstreamDiff: EasyLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge31) In a supply chain for paper products, wholesalers and retailers are ________ to the pulp and papermills.Answer: downstreamDiff: EasyLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge32) In today's economy, supply chains compete against other ________.Answer: supply chainsDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge

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1333) The process steps that enhance products in a way that makes them more valuable to customers areknown as ________.Answer: value-added activitiesDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge34) The core activities any firm performs are known as ________.Answer: value chainDiff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge35) Discuss why Business Ethics and Social Responsibility should be important guiding principles fororganizations.Answer: Business ethics are sets of guiding principles that influence the way individuals andorganizations behave within the society in which they operate. Corporate social responsibility (CSR) is aform of ethical behavior that requires that organizations understand, identify, and eliminate unethicaleconomic, environmental, and social behaviors. Using Business Ethics and Social Responsibility asguiding principles, business can make the world a better place by alleviating poverty and improvingenvironmental performance.Diff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge36) List and discuss the primary flows in a supply chain.Answer: Supply chains involve three primary flows. Thethree primary flows of a supply chainare (1)product flows, (2)monetary flows, and (3)information flows.Product flowsmove from upstream todownstream and are generally unidirectional. Firms bring in raw materials, transform them, and shipthem to customers.Reverse logistics, however, occurs when products move up the supply chain (inspecial cases such as product returns). One of the current trends in managing product flows is leanproduction.Monetary flowsare unidirectional but move from downstream to upstream. Customers pay retailers,who pay wholesalers, who pay producers, who pay suppliers, and so forth. The final customer pays forall the economic activity in the supply chain. Understanding this fact will help you understand theimportance of adding value. Essentially, if the customer is willing to pay more for a core activity, thatactivity adds value. It is unlikely that a consumer will be willing to pay more for a purse because theproducer has an excellent legal department.Information flowsare data flows and are bidirectional.Bidirectional flowsmove both upstream anddownstream in the normal conduct of supply chain commerce. For example, order information comesfrom customers or flows upstream. Delivery information flows downstream from suppliers to customersat each stage of the supply chain. Many other types of information flow as well.Diff: ModerateLearning Obj.: LO 1.2: Define, Understand, and Apply the Components of Supply Chain and OperationsManagementAACSB: Application of Knowledge

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141.3 Explain the Integrative Model for Supply Chain and Operations Management1) The entire supply chain is optimized byA) logistics.B) analytics.C) quality management.D) All of the aboveE) Only A and B aboveAnswer: DDiff: EasyLearning Obj.: LO 1.3: Explain the Integrative Model for Supply Chain and Operations ManagementAACSB: Application of Knowledge2) Which component of the integrative SC&O management model involves the transformation ofmaterials to finished goods?A) Operating coreB) Upstream collaborationC) Downstream collaborationD) None of the aboveAnswer: ADiff: EasyLearning Obj.: LO 1.3: Explain the Integrative Model for Supply Chain and Operations ManagementAACSB: Application of Knowledge3) In the integrative SC&O management model, downstream collaboration involves which of thefollowing?A) Collaboration with operationsB) Collaboration with suppliersC) Collaboration with customersD) Process collaborationAnswer: CDiff: EasyLearning Obj.: LO 1.3: Explain the Integrative Model for Supply Chain and Operations ManagementAACSB: Application of Knowledge4) Logisticians manage only the sourcing of materials throughout the supply chain.Answer: FALSEDiff: ChallengingLearning Obj.: LO 1.3: Explain the Integrative Model for Supply Chain and Operations ManagementAACSB: Application of Knowledge5) Quality management helps to improve performance and quality.Answer: TRUEDiff: EasyLearning Obj.: LO 1.3: Explain the Integrative Model for Supply Chain and Operations ManagementAACSB: Application of Knowledge

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