Question

1. Incorrect inventory levels, longer response times, and poor customer service can result from which of the following supply chain integration issues?

a. Lack of vendor managed inventories

b. Reactive initiatives

c. Lack of RFID technology

d. Lack of supply chain visibility

2. The coordination and sharing of information and resources to jointly manage a process is referred to which of the following concepts?

a. Differentiation

b. Process integration

c. Simplification

d. Reverse logistics

Answer 1

Answer: d. Lack of supply chain visibility

Explanation:

Lack of supply chain visibility is a common integration problem that results into incorrect inventory levels, longer response times, and poor customer service. Supply chain visibility is the ability of the system to share data in real time to manage the flow of goods between customers and suppliers. When there is lack of supply chain visibility, the trading partners will have to take the data, send the data to each other and upload in the systems which would require extra time. This extra time would lead to extra inventories, poor customer service and longer response time. Hence the answer is option d. Reactive initiatives are used as part of supply chain security system. RFID is used to track inventory in the supply chain system and helps in managing the inventory better. But lack of RFID need not result into incorrect inventory levels, longer response times, and poor customer service. Vendor managed inventories allow the vendor to manage the inventories and help to increase the speed of operations and cost. But this is also not a supply chain integration issue.

2. Answer: b. Process integration

Explanation:

The coordination and sharing of information and resources to jointly manage a process is referred to as process integration. Reverse logistics refers to the backward flow of goods from customer and simplification refers to the reduction of components, supplies or materials used in a process. Differentiation refers to creation of unique service. Hence these options are wrong.