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e of 36 Page 2 of 2 29 words 868 9 Chapter # 4 Truc/False 1. Supply chain Ans: management provides the company with a sustainable, competitive advantage. 2. Manufacturers typically represent the beginning of a supply chain. os loc ns: 3. A tier Ans: one supplicr is always more important than a tier two supplier 4. The tier one, tier two, and tier three supplier designations are based upon whom the suppliers are providing materials or services to. Ans: 5. Like "ABC inventory analysis," the tier one, tier two, and tier three supplier designations are based upon the annual level of purchases made with the suppliers. Ans 6. Location managers are typically responsible for managing the movement of products between locations. Ans: 7. If supply chain A has more levels than supply chain B, then the bullwhip effect will likely impact supply chain B more than supply chain A. Ans: 8. A possible remedy for the bullwhip effect is to base forecasts on demand coming from the immediate downstream customer. Ans: 9. Order batching replaces lumpy demand with constant product demand. Ans: 10. Rationing and shortage gaming occur when supply exceeds demand. Ans:

Answer 1

1. True

Supply chain management refers to the set of activities that support the production and distribution of goods and services that provides value to the customers. Supply chain management benefits the organisation in following ways.

1. It gives an idea to the company that whether its supply chain is effective enough to generate profit.
2. It tells that whether the supply chain is able to meet the demand of their customer or whether a customer is satisfied with products offered by the company.
3. Company can evaluate that whether its supply chain is advanced enough in terms of technology.
4. It helps the company to understand that how that 5 steps repeat over and over again between the suppliers, customers and company.

However effective use and management of supply chain provides high value to customers which also provides a competitive advanage.