Which of the following situations is an example of postponement?
Correct Answer: D
Postponement refers to delaying the final assembly or customization of a product until customer orders are received. This strategy allows companies to be more responsive to specific customer demands while reducing inventory costs and risks associated with finished goods. By keeping goods in a partially assembled state and completing the assembly later, companies can quickly adapt to changes in demand and provide customized products without holding large amounts of finished goods inventory. References * Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2012). Supply Chain Logistics Management. McGraw-Hill. * van Hoek, R. I. (2001). The rediscovery of postponement: a literature review and directions for research. Journal of Operations Management, 19(2), 161-184.
Question 92
Requirements for successful application of a demand-driven supply network include:
Correct Answer: A
A demand-driven supply network relies on the synchronization of demand information between all stakeholders in the supply chain. This synchronization ensures that all parties have access to accurate and timely demand data, enabling better alignment of production, inventory, and distribution with actual market needs. Automatic communications from POS terminals, joint safety stock determinations, and single sourcing are important elements but do not capture the full scope of the collaborative alignment required for a demand-driven approach. The core requirement is that demand information is shared and utilized across the supply chain to drive operational decisions. References: * Christopher, M. (2016). Logistics & Supply Chain Management. Pearson. * Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
Question 93
A media company offers a majority of its movies through a specific distributor. The media company is beginning to produce content for a new foreign market to which the distributor has exclusive access. To maximize savings and gain entry to this new market, the media company should:
Correct Answer: C
Section: Fundamentals of Supply Chain Management
Question 94
The six sigma approach to quality focuses on increasing customer satisfaction by:
Correct Answer: B
The correct answer is B. reducing variability. The six sigma approach to quality is a methodology used to improve business processes and reduce defects. It focuses on measuring and analyzing data to identify and eliminate sources of variation in a process. By reducing variability, the process becomes more consistent, reliable, and predictable, which leads to higher customer satisfaction. While increasing efficiency, reducing waste, and simplifying processes are also important goals of the six sigma approach, they are secondary to reducing variability. By reducing variability first, the other goals can be achieved more effectively and efficiently.
Question 95
Which of the following strategies can be used to help manage global risks?
Correct Answer: D
Managing global risks requires strategies that allow a supply chain to adapt quickly to unexpected changes or disruptions. Flexibility in the supply chain can help manage global risks by enabling companies to adjust their operations in response to unforeseen events, such as natural disasters, geopolitical tensions, or changes in market demand. This might involve diversifying suppliers, utilizing multiple transportation modes, or adopting flexible manufacturing systems. * Direct shipment refers to sending products directly from supplier to customer, which might not address broader global risks. * Cross-docking is a logistics practice that involves unloading goods from inbound transport and loading them directly onto outbound transport, without warehousing. It optimizes efficiency but does not inherently manage global risks. * Mass customization is a production strategy that combines elements of mass production and customization but does not directly address global risk management. References: Chopra, S., & Meindl, P. (2016). "Supply Chain Management: Strategy, Planning, and Operation." Sheffi, Y. (2005). "The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage."
