Topic 2: International Supply Chain Management

A company's supply chain involves the flow of materials and information from suppliers, through production, to the end users.

• True

• False

JIT delivery, i.e. frequent deliveries of small shipments, actually results in an increase in the transportation cost per unit.

• True

• False

The goal of supply chain management is to synchronize supply and demand of all of the organizations that are part of the chain.

• True

• False

Global supply chains make purchasing easier because of more options.

• True

• False

Information technology is the key to success of global supply chains.

• True

• False

Price is the primary determining factor in choosing a vendor since most products are essentially the same.

• True

• False

Logistics includes all of these except:

• the movement of materials within a production facility

• incoming shipments of goods or materials

• outgoing shipments of goods or materials

• customer selection

• returned goods processing

A factor that makes it desirable for business organizations to actively manage their supply chains is

• more potential vendors

• increasing globalization

• downsizing

• the internet

Which of the following is not a benefit of effective supply chain management?

• lower inventory costs

• higher productivity

• shorter lead times

• greater customer loyalty

• larger number of suppliers

Which of the following is a barrier to integration of separate organizations in the supply chain?

(I) conflicting objectives of the companies in the chain.

(II) different level of capacity of the companies in the chain.

(III) reluctance of the organizations in the chain to allow other organizations access to their data.

• I only

• I and II

• II and III

• I and III

• I, II and III