1. A goal of supply chain managers is to use technology and teamwork to build efficient and effective processes that create _______ for the end customer. A. value C. inventory B. profit D. processes 2. _______ management creates value for customers by transforming capital, technology, labor, and materials into more highly valued products and services. A. Development C. Logistics B. Customer service D. Operations 3. Relationship management, as a part of the purchasing process, includes which of the following tasks? A. Placement of the purchase order B. Communication C. Performance monitoring D. Supplier payment 4. Managers must consider each of the following areas in developing effective supply chain strategies to satisfy customers except A. environment. C. feedback. B. core competencies. D. resources. 5. The function of _______ is to transport and store goods, assuring that inbound materials are available for operations and that outbound finished products are available to the customer. A. logistics C. purchasing B. material planning D. production 6. Before SC processes can be managed effectively up and down the supply chain, they must be A. documented as a value chain process. B. supported adequately with supply chain expert staffing. C. managed well within the focal firm. D. evaluated for efficiency and effectiveness. 7. Motorola established its 6-sigma quality improvement program more than a decade ago. The performance goal of 6-sigma is A. 99.98% defect free. C. 6 PPM. B. 3.4 PPM. D. 1000 PPM. 8. Which three operation functions are responsible for the order fulfillment process? A. Purchasing, production, quality assurance B. Material control, production, quality assurance C. Material control, production, logistics D. Purchasing, production, logistics 9. Which of the following are the top four causes of customer fulfillment dissatisfaction? A. Employee training, budget constraints, policies, and customer expectations B. Employee training, measurement, empowerment, and policies C. Employee training, measurement, policies, and customer expectations D. Employee training, budget constraints, customer expectations, and policies 10. One responsibility of the marketing department is to identify current and emerging A. competitors. C. core competencies. B. products. D. employees. 11. All of the following are steps critical to creating a flexibility culture except A. making cycle time a priority throughout the organization. B. benchmarking against customer requirements and competitors” capabilities. C. building learning loops into every process throughout the organization. D. training workers for few but selective tasks and organizing work in single-function teams. 12. _______ represents how much money a company makes from the ongoing business of selling its goods and services. A. Financing cash flow C. Operating profit B. Working capital D. Total profit 13. A _______ is defined as the grouping of resources into specific departments, such as research and development, purchasing, production, logistics, and marketing. A. business unit C. value stream B. matrix D. functional organization 14. Decisions made in one function area of a company often affect performance in other areas of a company. This situation requires business teams to perform a _______ to figure out what decision is best for a company. A. strategic plan C. gap analysis B. trade-off analysis D. value stream map analysis 15. The use of new product development teams reduces the risk that comes from poor A. communication. C. customers. B. suppliers. D. processes. 16. What is the first question a process reengineering team should ask before improving a process? A. What is the desired outcome/end goal of the team”s effort? B. Why is the process performed? C. Are there real opportunities to improve process performance? D. What are the operating costs of the current process? 17. Supply chain members experience the bullwhip effect A. as a direct result of inadequate communications up and down the supply chain. B. when members of the supply chain initiate a collaborative forecast. C. when demand forecasts are stable, quantified, and communicated throughout the chain. D. typically during a new product introduction when the rate of increase in demand occurs. 18. _______ is the radical redesign of business processes made possible by systems thinking and improved information technology. A. Product design C. Project management B. Process reengineering D. Development engineering 19. Assessing the cost and quality of a new product in the _______ phase of development enables a more accurate prediction of customer acceptability of the product or service. A. production C. marketing B. sales D. design 20. When managers emphasize efficient operations over appropriate customer satisfaction requirements, discrepancies in service quality can lead to A. higher operating costs. C. service gaps. B. customer feedback. D. higher fill rate targets.