Multiple Choice #10

Question 1

Supply chain coordination

A) improves if all stages of the chain take actions that together increase total supply chain profits.
B) requires each stage of the supply chain to take into account the impact its actions have on other stages.
C) cannot be achieved in real world applications.
D) all of the above
E) A and B only

Answer 1

E) A and B only

Question 2

A lack of coordination occurs either because

A) different stages of the supply chain have objectives that conflict. B) the policies of most firms are contrary to cooperation.
C) information moving between stages gets delayed and distorted.
D) all of the above
E) A and C only

Answer 2

E) A and C only

Question 3

Information is distorted as it moves within the supply chain because

A) complete information is shared between stages.
B) complete information is not shared between stages.
C) firms try to be too accurate.
D) all of the above
E) B and C only

Answer 3

E) B and C only

Question 4

Information distortion is exaggerated by the fact that

A) supply chains today produce a large amount of product variety.
B) supply chains today produce a small amount of product variety.
C) the telephone effect is extreme in situations where technology is in use.
D) different stages of supply chains send excessive data.

Answer 4

A) supply chains today produce a large amount of product variety.

Question 5

The situation in which fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers is known as

A) market fluctuations. 
B) the whiplash effect. 
C) the bullwhip effect.
D) lack of visibility.
E) none of the above

Answer 5

C) the bullwhip effect.

Question 6

The bullwhip effect causes

A) a loss of supply chain coordination.
B) distortion of demand information within the supply chain.
C) different stages of the supply chain to have a very different estimate of what demand looks like.
D) all of the above
E) A and B only

Answer 6

D) all of the above

Question 7

The lack of coordination within a supply chain will result in a decrease in

A) manufacturing cost. 
B) inventory cost. 
C) replenishment lead time. 
D) level of product availability. 
E) transportation cost.

Answer 7

D) level of product availability.

Question 8

The lack of coordination within a supply chain will result in an increase in

A) profitability. 
B) inventory accuracy. 
C) replenishment lead time. 
D) level of product availability. 
E) transportation cost.

Answer 8

C) replenishment lead time.

Question 9

The bullwhip effect

A) positively impacts performance at every stage.
B) hurts the relationships between different stages of the supply chain.
C) enhances the relationships between different stages of the supply chain.
D) none of the above
E) both A and C

Answer 9

B) hurts the relationships between different stages of the supply chain.

Question 10

The bullwhip effect moves a supply chain

A) away from the efficient frontier by increasing cost and decreasing responsiveness.
B) away from the efficient frontier by decreasing cost and increasing responsiveness.
C) toward the efficient frontier by increasing cost and decreasing responsiveness.
D) toward the efficient frontier by increasing cost and increasing responsiveness.

Answer 10

A) away from the efficient frontier by increasing cost and decreasing responsiveness.