Test Bank for Introduction to Operations and Supply Chain Management, 5th Edition

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Introduction toOperations and SupplyChain ManagementFifth EditionCecil C. BozarthRobert B. HandfieldTest Bank forIntroduction to Operations andSupply Chain ManagementGeoff Willis

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1Introduction to Operations & Supply Chain Management, 5e(Bozarth)Chapter 1 Introduction to Operations and Supply Chain Management1.1 Why Study Operations and Supply Chain Management?1) The collection of people, technology, and systems within an organization that has primaryresponsibility for providing the organization's products or services is called:A) the supply chain.B) the operations function.C) the factory set.D) relationship management.Answer: BDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: operations functionAACSB: Application of KnowledgeLO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.2) Which of these is NOT a component of the operations function in an organization?A) peopleB) technologyC) systemsD) informationAnswer: DDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: operations function, peopleAACSB: Application of KnowledgeLO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.3) ________ is an example of an output of the transformation process.A) MaterialB) InformationC) Satisfied customersD) Intangible needsAnswer: CDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: output, transformation, process, customerAACSB: Application of KnowledgeLO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

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24) Typical inputs to the transformation process include:A) tangible goods.B) satisfied customers.C) intangible needs.D) fulfilled needs.Answer: CDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: intangible needs, inputs, transformation processAACSB: Application of KnowledgeLO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.5) Which of the following statements about the operations function is NOT correct?A) Inputs to operations can take many different forms.B) Nearly all operations activities require coordination with other business functions.C) The outputs of an operations function are always tangible.D) Operations management activities are information and decision intensive.Answer: CDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: operations function, tangible outputsAACSB: Application of KnowledgeLO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.6) Which of the following is NOT a flow typically found in a supply chain?A) physicalB) informationC) monetaryD) riskAnswer: DDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: supply chain, flowAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.7) Which of the following is primarily a supply chain management decision?A) from whom to purchase materialsB) how many of each item should be producedC) the mix of labor skill and automationD) the location of the plantAnswer: ADiff: 3Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: supply chain, decision, supplierAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

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38) Which of these statements about flows in a supply chain is best?A) Information and monetary flows move upstream and downstream, but physical flows movedownstream only.B) Information flows move upstream and downstream, monetary flows move upstream only, andphysical flows move downstream only.C) Information and monetary flows move upstream only and physical flows move downstream only.D) Information, physical and monetary flows move both upstream and downstream.Answer: DDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: information flows, physical flows, monetary flowsAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.9) Which of the following statements regarding the supply chain is TRUE?A) A second-tier supplier is downstream from a first-tier supplier.B) A first-tier supplier is upstream from a second-tier supplier.C) A first-tier supplier is downstream from a second-tier supplier.D) A customer is upstream from a first-tier supplier.Answer: CDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: downstream, upstream, tier, supplier, customerAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.10) In theSweet Action!supply chain, the flowers produce the nectar which is collected by the bees. Thebusy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quartjars and supplies it to the baker. The baker produces a lovely array of confections, which are purchasedby the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consumethem and nag the chef for his recipe. Which of these statements about this supply chain is best?A) The busy bees are a first-tier supplier of the local restaurant.B) The beekeeper is a first-tier supplier of the local restaurant.C) The baker is a first-tier supplier of the local restaurant.D) The local restaurant is a first-tier supplier of the loyal diners.Answer: CDiff: 3Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: downstream, first-tier, supplier, customerAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

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411) In theSweet Action!supply chain, the flowers produce the nectar which is collected by the bees. Thebusy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quartjars and supplies it to the baker. The baker produces a lovely array of confections, which are purchasedby the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consumethem and nag the chef for his recipe. Which of these statements about this supply chain is best?A) The busy bees are a second-tier supplier of the local restaurant.B) The beekeeper is a second-tier supplier of the local restaurant.C) The baker is a second-tier supplier of the local restaurant.D) The local restaurant is a second-tier supplier of the loyal diners.Answer: BDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: downstream, second-tier, supplier, customerAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.12) In theSweet Action!supply chain, the flowers produce the nectar which is collected by the bees. Thebusy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quartjars and supplies it to the baker. The baker produces a lovely array of confections, which are purchasedby the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consumethem and nag the chef for his recipe. Which of these statements about this supply chain is best?A) The busy bees are within the span of the SCOR model of the local restaurant.B) The beekeeper is within the span of the SCOR model of the local restaurant.C) The loyal patrons are within the span of the SCOR model of the beekeeper.D) The loyal patrons are within the span of the SCOR model of the busy bees.Answer: BDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: SCOR model, supply chainAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.13) In theSweet Action!supply chain, the flowers produce the nectar which is collected by the bees. Thebusy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quartjars and supplies it to the baker. The baker produces a lovely array of confections, which are purchasedby the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consumethem and nag the chef for his recipe. Which of these statements about this supply chain is best?A) There is only one first-tier supplier in this supply chain.B) There are only two first-tier suppliers in this supply chain.C) There are only three first-tier suppliers in this supply chain.D) There are four first-tier suppliers in this supply chains.Answer: DDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: downstream, first-tier, supplier, customerAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

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514) Which of the following lists is in correct supply chain order?A) first-tier supplier–manufacturer–distributorB) distributor–manufacturer–retailerC) first-tier supplier–second-tier supplier–third-tier supplierD) customer–retailer–distributorAnswer: ADiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: downstream, tier, supplier, distributor, customerAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.15) Which of these is NOT an element of the SCOR model?A) OperateB) PlanC) SourceD) ReturnAnswer: ADiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: SCOR modelAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.16) Which of these statements is best?A) Supply chains are linked by two types of flows: physical and monetary.B) An operations function contains several supply chains.C) Very few organizations are actually members of a supply chain.D) Every organization has an operations function.Answer: DDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: supply chain, operations functionAACSB: Application of KnowledgeLO: 1.3: Discuss what is meant by operations management and supply chain management.17) Every organization has an operations function.Answer: TRUEDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: organization, operations functionAACSB: Application of KnowledgeLO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.18) Information and materials are two examples of inputs to the transformation process.Answer: TRUEDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: information, materials, input, transformation processAACSB: Application of KnowledgeLO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.

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619) In general, operations management activities are information and decision intensive.Answer: TRUEDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: information, decisions, operations managementAACSB: Application of KnowledgeLO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.20) Most organizations function as part of a larger supply chain.Answer: TRUEDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: organization, supply chainAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.21) The supply chain is a network of manufacturers and service providers that work together to createproducts or services needed by end users.Answer: TRUEDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: organization, supply chain, networkAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.22) To participate in a supply chain, a firm must actually handle the physical goods at some point.Answer: FALSEDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: supply chain, operations functionAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.23) Of the three flows linking organizations in a supply chain, information and monetary flows alwaysmove upstream and physical flows always move downstream.Answer: FALSEDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: information flows, monetary, physical flows, supply chainAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.24) A second-tier supplier is downstream from a first-tier supplier in a supply chain.Answer: FALSEDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: downstream, supply chain, second tierAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

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725) Most of the participants in a supply chain are both suppliers and customers.Answer: TRUEDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: supply chain, supplier, customerAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.26) A supply chain is composed of two or more operations functions.Answer: TRUEDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: supply chain, operations functionAACSB: Application of KnowledgeLO: 1.3: Discuss what is meant by operations management and supply chain management.27) The collection of people, technology, and systems within an organization that has primaryresponsibility for providing the organization's products or services is the ________.Answer: operations functionDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: operations function, product, serviceAACSB: Application of KnowledgeLO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.28) Operations can be considered a transformation process that takes things like labor, and capital, called________, and transforms them into goods or services, called ________.Answer: inputs; outputsDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: operations function, transformation, inputs, outputsAACSB: Application of KnowledgeLO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.29) Most organizations function as part of larger ________ that are linked through physical, monetary,and information flows.Answer: supply chainsDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: supply chainAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.30) An activity or firm that is positioned earlier in the supply chain relative to another activity or firm issaid to be ________.Answer: upstreamDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: upstream, supply chainAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

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831) Printing and binding a book takes place ________ from the conversion of wood to paper pulp in apublishing supply chain.Answer: downstreamDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: downstream, supply chainAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.32) The ________ model is used to define the processes, metrics and relationships in supply chainmanagement.Answer: SCORDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: SCOR model, supply chainAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.33) A(n) ________-tier supplier for Acme sells directly to them.Answer: firstDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: first-tier, supply chain, supplierAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.34) A second-tier supplier is located ________ from a first-tier supplier.Answer: upstreamDiff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: upstream, supply chain, supplierAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.35) A(n) ________ is a network of manufacturers and service providers that collaborate to create aproduct or service.Answer: supply chainDiff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: supply chain, operations functionAACSB: Application of KnowledgeLO: 1.3: Discuss what is meant by operations management and supply chain management.

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936) Describe the operations function's transformation process and provide an example for each element.Answer: The transformation process view of operations management holds that inputs are transformedinto outputs. Examples of inputs are raw materials, labor, capital, equipment, information, and intangibleneeds. The transformation process is the conversion of these inputs using either manufacturing or serviceoperations (and sometimes both). Manufacturing operations might be painting, welding, machining, orassembling. Outputs of the transformation process are tangible goods, services, fulfilled needs, andsatisfied customers. Specific examples may vary depending on the company chosen.Diff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: transformation process, operations function, input, outputAACSB: Application of KnowledgeLO: 1.1: Describe what the operations function is and why it is critical to an organization's survival.37) Distinguish between upstream and downstream firms in a supply chain and provide an example.Answer: Upstream and downstream are relative terms that describe the position of a supply chainmember from one point of reference. A supply chain member that is upstream from a firm is sendingtheir output to the firm for use as an input. A supply chain member that is downstream from a firm istaking the firm's output and using it as an input to their own processes. It is possible for a single memberof a supply chain to be both upstream and downstream from one or more members of their supply chain.Examples may vary.Diff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: upstream, downstream, supply chain, input, outputAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.38) Distinguish between first-tier and second-tier suppliers in a supply chain and provide an example.Answer: First-tier, second-tier, and any subsequent steps are measured relative to their position from acommon point in the supply chain. All companies at a level (call it A) receive inputs from their first-tiersuppliers (level B). These first-tier suppliers (at level B) in turn receive their inputs from their own first-tier suppliers (level C). These companies (level C) are considered second-tier suppliers of the companiesat level A. Both tiers are upstream from level A, but level B is downstream from level C. Examples willvary.Diff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: first-tier, second-tier, upstream, downstream, supply chain, input, outputAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.

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1039) Supply chains have been in existence for over a century. What is different about supply chains in the21st century from those in existence 100 years ago?Answer: The active management of supply chain activities is the big difference between supply chains inexistence today and those of decades ago. Active management includes relationship management and anexamination of the supply chain as a whole to optimize it from a global perspective. In the past, theproduction managers of each company in the supply chain were more concerned with the operation andfinancial well-being of their own companies, often to the detriment of other members of the supply chain.Diff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: supply chainAACSB: Application of KnowledgeLO: 1.2: Describe what a supply chain is and how it relates to a particular organization's operations function.40) Offer definitions of the operations function and the supply chain. What is the relationship betweenoperations and supply chain?Answer: The operations function is the collection of people, technology, and systems within anorganization that has primary responsibility for providing the organization's products or services. Thesupply chain is a network of manufacturers and service providers that work together to create productsor services needed by end users. These manufacturers and service providers are linked together throughphysical flows, information flows, and monetary flows. The supply chain has multiple actors, each ofwhich has their own operations function—the output of one operations function is the input to thedownstream partner's operations function, and so on across the breadth of the supply chain.Diff: 2Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: supply chain, operations functionAACSB: Application of KnowledgeLO: 1.3: Discuss what is meant by operations management and supply chain management.41) What are three reasons that the study of operations and supply chain management is important?Answer: One reason that the study of operations management is important is that every organizationmust make a product or provide a service that someone values. Without this, there is no reason for theexistence of the organization. The study of supply chain management is important because mostorganizations function as part of a larger supply chain. Finally, organizations must carefully manage theiroperations and supply chains in order to prosper. The better the supply chain and operations functionsare coordinated, the greater chance for success of all members.Diff: 1Reference: 1.1 Why Study Operations and Supply Chain Management?Keywords: organization, operations, supply chainAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.

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111.2 Important Trends1) An electronic commerce system:A) is used to transmit information upstream only.B) uses computers and telecommunications equipment to conduct business electronically.C) is used to transmit information downstream only.D) links everyone in the supply chain except customers.Answer: BDiff: 2Reference: 1.2 Important TrendsKeywords: e-commerce, business, communications, electronic commerceAACSB: Information TechnologyLO: 1.5: Make a case for studying both operations management and supply chain management.2) Efforts to improve cooperation among firms in the supply chain can be characterized as:A) globalization.B) domestic focus.C) relationship management.D) electronic commerce.Answer: CDiff: 2Reference: 1.2 Important TrendsKeywords: relationship management, supply chainAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.3) Among all supply chain functions, ________ is the most susceptible to breakdown.A) productionB) logisticsC) supplier selectionD) relationship managementAnswer: DDiff: 2Reference: 1.2 Important TrendsKeywords: relationship management, supply chainAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.4) The greatest impact on business in the last quarter century has been made by information technology.Answer: TRUEDiff: 1Reference: 1.2 Important TrendsKeywords: information technologyAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.

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125) Currently, there is a shortage of talented operations and supply chain professionals.Answer: TRUEDiff: 1Reference: 1.2 Important TrendsKeywords: peopleAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.6) Electronic commerce refers to the use of information technology solutions to automate businesstransactions.Answer: TRUEDiff: 1Reference: 1.2 Important TrendsKeywords: electronic commerce, e-commerce, information, technologyAACSB: Information TechnologyLO: 1.5: Make a case for studying both operations management and supply chain management.7) The drive for efficiency has decreased the level of globalization in the world economy.Answer: FALSEDiff: 2Reference: 1.2 Important TrendsKeywords: globalizationAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.8) E-commerce is the component of a supply chain that is the most susceptible to breakdown.Answer: FALSEDiff: 2Reference: 1.2 Important TrendsKeywords: e-commerce, electronic commerce, supply chain, relationship managementAACSB: Information TechnologyLO: 1.5: Make a case for studying both operations management and supply chain management.9) To avoid supply chain problems, firms must manage relationships with theirdownstreamsuppliers aswell as theirupstreamcustomers.Answer: FALSEDiff: 2Reference: 1.2 Important TrendsKeywords: customer, relationship management, downstream, upstreamAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.10) ________ is the ability to recalculate plans in the face of market, demand, and supply volatility anddeliver the same or comparable cost, quality and customer service.Answer: AgilityDiff: 2Reference: 1.2 Important TrendsKeywords: agilityAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.

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1311) ________ is the use of information technology solutions to conduct business via electronic transfer ofdata and documents.Answer: Electronic commerceDiff: 1Reference: 1.2 Important TrendsKeywords: electronic commerce, e-commerceAACSB: Information TechnologyLO: 1.5: Make a case for studying both operations management and supply chain management.12) ________ is the term that describes efforts to improve operations by increasing supply chain members'willingness to cooperate.Answer: Relationship managementDiff: 2Reference: 1.2 Important TrendsKeywords: relationship, relationship management, supply chainAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.13) What is the meaning ofagilityto the operations and supply chain function?Answer: Agility is the ability to recalculate plans in the face of market, demand, and supply volatilityand deliver the same or comparable cost, quality and customer service.Diff: 1Reference: 1.2 Important TrendsKeywords: agilityAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.14) What are some examples of agility for the operations and supply chain function?Answer: Examples will vary. Some say that quickly adjusting production levels is one example of agility.Agility can also include the ability to quickly respond to interruptions in the supply chain, reconfigurethe supply chain to include new partners, or even the ability to launch new products and services basedon changing market conditions, all while simultaneously minimizing negative impacts on operationaland financial performance.Diff: 2Reference: 1.2 Important TrendsKeywords: agilityAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.

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1415) Briefly discuss the three important trends in business that have focused attention on operations andsupply chain management.Answer: The three trends are agility, information technologies, and people. Agility is the ability torecalculate plans in the face of market, demand, and supply volatility and deliver the same or comparablecost, quality and customer service. Electronic commerce is the use of information technology, e.g.,computer and telecommunications technologies, to conduct business via electronic transfer of data anddocuments. People refers specifically to the shortage of talented operations and supply chainprofessionals and the importance of relationship management.Diff: 2Reference: 1.2 Important TrendsKeywords: e-commerce, agilityAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.16) What is the most impactful trend in supply chain management over the last quarter century? Justifyyour choice.Answer: The authors name electronic commerce as the greatest influence on business. Electroniccommerce is the use of information technology solutions to automate business transactions. E-commercepromises to improve the speed, quality, and cost of business communications and can be used tocoordinate a supply chain. Entire industries and countless business have developed thanks to the Internetand e-commerce. In the entertainment industry alone, Netflix has moved from a distributor of DVDs to astreaming service and the music industry has undergone a sea change in how new music is marketed anddistributed. Answers may vary.Diff: 2Reference: 1.2 Important TrendsKeywords: e-commerce, supply chainAACSB: Reflective ThinkingLO: 1.5: Make a case for studying both operations management and supply chain management.17) Of all the activities of supply chain management, which poses the greatest challenge and why? Citeexamples in popular media.Answer: The authors indicate that relationship management is the most difficult and therefore the mostsusceptible to breakdown. Poor relationships with any link in the supply chain can have disastrousconsequences for all other supply chain members. An unreliable supplier can starve a plant, leading toinflated lead times and resulting in problems across the chain, all the way to the final customer. Iforganizations do not manage relationships with both upstream supply chain members as well as withtheir customers, they run this risk. If supply chain partners are separated geographically or culturally, orboth, it is easy to have misunderstandings. In some cases, many components can be purchased onlythrough foreign suppliers with proprietary knowledge. Examples will vary as time passes.Diff: 2Reference: 1.2 Important TrendsKeywords: relationship management, supply chainAACSB: Application of KnowledgeLO: 1.5: Make a case for studying both operations management and supply chain management.

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