Supply Chain Management

Test I: Multiple Choice (2 points each)

1. The management of flow of products and services which begins from the origin of products and
ends at the product’s consumption:
a. Supply Chain b. Supply Chain Management c. Supply
2. The major breakdown in the production of distribution modes that comprise a supply chain:
a. Supply Chain Redesign b. Disruptions c. Risk Management
3. From the suppliers, manufacturers, distribution centers to the demand markets is what we call:
a. Supply Chain Management b. Supply Chain c. Chain
4. The following are goals of Supply Chain, except one (1):
a. Achieve efficient fulfillment, drive customer value
b. Enhance organizational responsiveness, build network resiliency
c. Delivery of goods and services
5. One of the objectives of supply chain is:
a. Customer relationship management
b. Inventory work
c. Warehousing
6. The fourth major goal of the supply chain is to promote long-run stability:
a. Enhance organizational responsiveness
b. Build network resiliency
c. Drive customer value
7. Lightly organized and most of the systems and processes are followed from the legacy:
a. Ripe Supply Chain
b. Raw Supply Chain
c. Internal Supply Chain
8. The most common types of Supply Chains and can be easily found in organizations, where
Enterprise Resource Planning (ERP) packages and organizational internal operational and well-
coordinated and managed, but not connected to the suppliers or distributors:
a. Ripe Supply Chain
b. Raw Supply Chain
c. Internal Supply Chain
9. It is typically in the form of 3rd party logistics, inbound logistics, relationship, etc.:
a. Self-monitored Supply Chains
b. Outsourced Supply Chains
c. Extended Supply Chains
10. A single objective to make maximum utilization of capacity and labor:
a. Self-monitored Supply Chains
b. Financial-oriented Supply Chains
c. Production-oriented Supply Chains
 11. It pertains to procuring raw materials and other resources that are required to manufacture the
goods:
a. Operations b. Logistics c. Purchasing
12. It is the management of the flow of things between the point of origin and the point of
consumption in order to meet requirements of customers or corporations:
a. Logistics b. Resource Management c. Operations
13. The function of logistics within Supply Chain Management are the following, except one (1):
a. Warehouse design and Management, the formation of packages
b. Transportation of products, working with Customs
c. Resource Management and logistics

Test II: Essay

14. Discuss the six (6) major movements in the evolution of SCM. (10 points)
15. Differentiate Inbound Logistics from Outbound Logistics. (4 points)

Test III: Case Study

16. Starbucks is pretty much a household name. But like many of the most successful worldwide
brands, the coffeeshop giant has been through its periods of supply chain pain. In fact, during
2007 and 2008, Starbucks leadership beganto have serious doubts about the company’s ability
to supply its 16,700 outlets. As in most commercial sectors at thattime, sales were falling. At the
same time though, supply chain costs rose by more than $75 million.

Supply Chain Cost Reduction Challenges: When the supply chain executive team began
investigating the rising costs and supply chain performance issues, they found that service was
indeed falling short of expectations. Findings included the following problems:

 Fewer than 50% of outlet deliveries were arriving on time

If you are the Starbucks’ leader, what would be your objectives in mind to achieve improved
performance and supply chain cost reduction? (30 points)

17. One of the world’s largest manufacturers of computer chips, Intel needs little introduction.
However, the company needed to reduce supply chain expenditure significantly after bringing
its low-cost “Atom” chip to market. Supply chain costs of around $5.50 per chip were bearable
for units selling for $100, but the price of the new chip was a fraction of that, at about $20.

The Supply Chain Cost Reduction Challenge: Somehow, Intel had to reduce the supply chain
costs for the Atom chip, but had only one area of leverage—inventory.
The chip had to work, so Intel could make no service trade-offs. With each Atom product being a
single component, there was also no way to reduce duty payments. Intel had already whittled
packaging down to a minimum, and with a high value-to-weight ratio, the chips’ distribution
costs could not be pared down any further.

The only option was to try to reduce levels of inventory, which, up to that point, had been kept
very high to support a nine-week order cycle. The only way Intel could find to make supply chain
cost reductions was to bring this cycle time down and therefore reduce inventory.

 If you are the operations manager of the company, what improvement initiatives
would you include to attain a better supply chain cost management result?
 Would you consider “make to order” supply chain strategy? (30 points)

Prepared by:

Dr. Ralph C. Pablo