Juan Said

Class : C 2
UNDERSTANDING THE MAIN POINTS
Review questions.
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What does the term supply chain refer to?

What is the goal of any supply chain?
What does the term distribution channel imply?
Why is the supply chain regarded as an essential component of success for most companies?
Is the supply chain an important link with the companys customers?
What elements is a simple supply chain made up of?
What is the function of the Sales Department?
What is the function of the Planning Department?
What is the function of the Purchasing Department?
What is the function of the Production Department?
What is the function of the Shipping Department?

Answer.
1. A supply chain can be defined as a system of organizations, people, technology, activities,
information and resources involved in moving a product or service from supplier to customer.
2. The supply chain goal is to reduce the total cost, where as providing the desired level of
responsiveness to customers.
3. The supply chain segment involved with getting the finished product from the manufacturer to the
consumer
4. Because the supply chain is a key determinant of a companys responsiveness to emerging
opportunities.
5. Yes, the supply chain is an important link with the companys customers
6. A typical supply chain is made up of a number of elements that are connected by the movement of
goods along it.
7. The customer contacts the Sales Department of the company, which enters the sales order for a
specific quantity to be delivered on a specific date.
8. The Planning Department creates a production plan to make the products to complete the customers
orders.
9. The Purchasing Department receives a list of raw materials and services required by the Production
Department to fulfil the customers orders. The Purchasing Department sends purchase orders to
selected suppliers asking for the necessary raw materials to be delivered to the manufacturing site.
10. Production Department tested and then they are stored in the warehouse prior to delivery to the
customer.
11. The Shipping Department determines the most efficient method to ship the products to the customer
so that they are delivered on time.

Juan Said
Class : C 2

2. Decide whether the following statements are true or false.

1. A supply chain is a system of organizations, people, technology involved in moving a product or
service from customer to provider.
Answer : False
2. Supply chain activities transform natural resources, raw materials and components into a finished
product that is delivered to the end customer.
Answer : True
3. The supply chain starts and ends with the provider.
Answer : False
4. A simple supply chain links a company that manufactures or assembles a product with its suppliers
and distributors and customers.
Answer : True
5. The customer contacts the Shipping Department of the company, which enters the sales order for a
specific quantity to be delivered on a specific date.
Answer : True
6. The requirements activated by the customers sales order are combined with other orders.
Answer : True
7. The Sales Department will create a production plan to produce the products to fulfil the customers
orders.
Answer : False
8. The Purchasing Department receives a list of finished products required by the production department
to complete the customers orders.
Answer : False
9. The Purchasing Department sends purchase orders to selected suppliers to deliver the necessary raw
materials to the manufacturing site on the required date.
Answer : False
10. The raw materials are received from the customers, checked for quality and accuracy and moved into
the warehouse.
Answer : False
11. The raw materials are stored until they are required by the production department.
Answer : False
12. The finished products ordered by the customer are manufactured using the raw materials purchased
from suppliers.
Answer : True
13. After the items have been completed and tested, they are stored in the main office prior to delivery to
the customer.
Answer : False
14. When the finished product arrives in the warehouse, the Sales Department determines the most
efficient method to ship the products.
Answer : False
15. When the goods are received by the customer, the company will send the customer an invitation to a
business meeting.
Answer : False