Which of the following benefits of supplier relationship management typically results from collaboration with a few critical suppliers?
Correct Answer: C
Supplier relationship management (SRM) emphasizes collaboration with key suppliers, which can lead to significant inventory reductions. The detailed explanation includes: * Collaborative Planning: Working closely with critical suppliers to synchronize production schedules and inventory levels, aligning them with actual demand. * Improved Forecasting: Sharing accurate demand forecasts and sales data helps suppliers plan their production more effectively, reducing the need for safety stock. * Just-in-Time (JIT) Practices: Implementing JIT practices where materials and components are delivered precisely when needed, minimizing inventory holding costs for both the customer and the supplier. * Vendor-Managed Inventory (VMI): Allowing suppliers to manage inventory levels based on real-time data, ensuring optimal stock levels and reducing excess inventory. * Lean Practices: Adopting lean inventory management techniques to eliminate waste, streamline processes, and enhance overall supply chain efficiency. References * Dyer, J. H., & Singh, H. (1998). The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage. Academy of Management Review, 23(4), 660-679. * Christopher, M. (2016). Logistics & Supply Chain Management. Pearson UK.
Question 157
Qualitative extrinsic data are used with which of the following forecasting techniques?
Correct Answer: C
Qualitative extrinsic data are data that are obtained from external sources and are not based on numerical measurements, but rather on opinions, judgments, or perceptions. Qualitative extrinsic data are used with qualitative forecasting techniques, such as the Delphi method. The Delphi method is a technique that involves a panel of experts who provide their opinions on a topic through a series of questionnaires. The results of each questionnaire are summarized and fed back to the panel, allowing them to revise their opinions based on the feedback. The process is repeated until a consensus is reached or the opinions stabilize . The Delphi method is useful for forecasting long-term trends, new product demand, technological changes, or social and economic issues.
Question 158
A manufacturer of consumer packaged goods with a single plant and nine regional distribution centers is considering reducing the number of distribution centers in its system. Reducing the number of distribution centers most likely will reduce fixed warehousing and the cost of:
Correct Answer: D
Section: Supply Chain Strategy, Design, and Compliance Explanation
Question 159
Inventory parameters established using analytic inventory techniques typically are based on balancing:
Correct Answer: B
Section: Supply Chain Strategy, Design, and Compliance
Question 160
Maintaining a long-term collaborative relationship with a trading partner requires:
Correct Answer: A
* Context: Long-term collaborative relationships in business require various forms of communication and mutual understanding. * Options Breakdown: * A. Formal and informal communication: Essential for building trust, addressing issues promptly, and fostering collaboration. * B. Interconnected information systems: Important for operational efficiency but not sufficient alone for maintaining relationships. * C. One partner regularly exercising power: This could harm collaboration and trust. * D. Standardized terms of agreement: Important for clarity but insufficient alone to maintain long-term relationships. * Correct Answer Justification: Effective long-term relationships depend on both formal (contracts, meetings) and informal (regular check-ins, casual interactions) communication, ensuring transparency, trust, and responsiveness. : Supply chain relationship management literature Case studies on successful long-term business partnerships
