Introduction to Operations and Supply Chain Management 5th Edition by Cecil B. Bozarth Test bank

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Copyright © 2019 Pearson Education, Inc.
11) ________ is the use of information technology solutions to conduct business via electronic transfer of
data and documents.
Answer: Electronic commerce
Diff: 1
Reference: 1.2 Important Trends
Keywords: electronic commerce, e-commerce
AACSB: Information Technology
LO: 1.5: Make a case for studying both operations management and supply chain management.
12) ________ is the term that describes efforts to improve operations by increasing supply chain members'
willingness to cooperate.
Answer: Relationship management
Diff: 2
Reference: 1.2 Important Trends
Keywords: relationship, relationship management, supply chain
AACSB: Application of Knowledge
LO: 1.5: Make a case for studying both operations management and supply chain management.
13) What is the meaning of agility to the operations and supply chain function?
Answer: Agility is the ability to recalculate plans in the face of market, demand, and supply volatility
and deliver the same or comparable cost, quality and customer service.
Diff: 1
Reference: 1.2 Important Trends
Keywords: agility
AACSB: Application of Knowledge
LO: 1.5: Make a case for studying both operations management and supply chain management.
14) What are some examples of agility for the operations and supply chain function?
Answer: Examples will vary. Some say that quickly adjusting production levels is one example of agility.
Agility can also include the ability to quickly respond to interruptions in the supply chain, reconfigure
the supply chain to include new partners, or even the ability to launch new products and services based
on changing market conditions, all while simultaneously minimizing negative impacts on operational
and financial performance.
Diff: 2
Reference: 1.2 Important Trends
Keywords: agility
AACSB: Application of Knowledge
LO: 1.5: Make a case for studying both operations management and supply chain management.
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Copyright © 2019 Pearson Education, Inc.
15) Briefly discuss the three important trends in business that have focused attention on operations and
supply chain management.
Answer: The three trends are agility, information technologies, and people. Agility is the ability to
recalculate plans in the face of market, demand, and supply volatility and deliver the same or comparable
cost, quality and customer service. Electronic commerce is the use of information technology, e.g.,
computer and telecommunications technologies, to conduct business via electronic transfer of data and
documents. People refers specifically to the shortage of talented operations and supply chain
professionals and the importance of relationship management.
Diff: 2
Reference: 1.2 Important Trends
Keywords: e-commerce, agility
AACSB: Application of Knowledge
LO: 1.5: Make a case for studying both operations management and supply chain management.
16) What is the most impactful trend in supply chain management over the last quarter century? Justify
your choice.
Answer: The authors name electronic commerce as the greatest influence on business. Electronic
commerce is the use of information technology solutions to automate business transactions. E-commerce
promises to improve the speed, quality, and cost of business communications and can be used to
coordinate a supply chain. Entire industries and countless business have developed thanks to the Internet
and e-commerce. In the entertainment industry alone, Netflix has moved from a distributor of DVDs to a
streaming service and the music industry has undergone a sea change in how new music is marketed and
distributed. Answers may vary.
Diff: 2
Reference: 1.2 Important Trends
Keywords: e-commerce, supply chain
AACSB: Reflective Thinking
LO: 1.5: Make a case for studying both operations management and supply chain management.
17) Of all the activities of supply chain management, which poses the greatest challenge and why? Cite
examples in popular media.
Answer: The authors indicate that relationship management is the most difficult and therefore the most
susceptible to breakdown. Poor relationships with any link in the supply chain can have disastrous
consequences for all other supply chain members. An unreliable supplier can starve a plant, leading to
inflated lead times and resulting in problems across the chain, all the way to the final customer. If
organizations do not manage relationships with both upstream supply chain members as well as with
their customers, they run this risk. If supply chain partners are separated geographically or culturally, or
both, it is easy to have misunderstandings. In some cases, many components can be purchased only