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Answer true or false. 1 The only aim of logistics network is reduce costs.

___ 2 The best systemwide strategy is global optimization.___ 3 Development and supply chains are to influence each other.____ 4 The production of large batches improves distribution and inventories.___ 5 Having good forecasts is vital for global optimization.___ 6 Logistics costs depend largely on transportation.___ 7 Strategic partnerships produce the bullwhip effect.___ 8 Cost is more important than service levels.____ 9 Improved service and inventory levels can now be achieved simultaneously. ___ 10 Tactical level agreements are updated at least yearly.____ 11 The right balance between production and transportation costs must be done every three months at least.____ 12 Most data received in the supply chain management must be transferred.____ 13 All Meditechs new products are not based on old ones.____ 14 Meditechs products are delivered directly from the central warehouse to the clients._____ 15 Meditechs daily and weekly schedules depend on the monthly production plans.___ 16 The packaging and sterilization are considered one operation at Meditech.____

Vocabulary 1. Various companies, consultants, and academics have developed a variety of


terms and concepts to stress what they believe are the salient issues in supply chain management. The word in bold probably means: a) leaving b) important c) extra

2 In this book, we present and explain concepts, insights, practical tools, and decision support systems important for the effective management of the supply chain. The word in bold probably means: a) knowledge b) interiors c) touristic places

3 Similarly, recent industry trends, including outsourcing, offshoring, and lean manufacturing that focus on reducing supply chain costs, significantly increase the level of risk in the supply chain. The word in bold probably means: a) small quantities b) bend c) thin

4 EMC Corp. said it missed its revenue guidance of $2.66 billion for the second quarter of 2006 by around $100 million, and said the discrepancy was due to higher than expected orders for the new DMX-3 systems over the DMX-2, which resulted in an inventory snafu [C11].

The word in bold probably means: a) goal b) importance c) mistake

5 Finally, in the late 90s, the Internet and the related e-business models led to expectations that many supply chain problems would be solved merely by using these new technologies and business models. The word in bold probably means: a) totally b) simply c) happily

6 Building redundancy into the supply chain so that if one portion fails, for example, a fire at a warehouse or a closed port, the supply chain can still satisfy demand. The word in bold probably means: a) excess b) circle c) alternative

7 Throughout the rest of this book, we endeavor to present these approaches and strategies in detail. The word in bold probably means: a) purpose b) company c) aircraft

8These issues span a large spectrum of a firms activities, from the strategic
through the tactical to the operational level. The word in bold probably means: a) connect b) separate c) twist

9. The current set of warehouses is deemed inappropriate, and management wants to reorganize or redesign the distribution network. The word in bold probably means: a) operated b) very c) considered

10 This pressure stems from both their customers and their supply chain partners. How can integration be achieved successfully?
The word in bold probably means: a) ends b) comes from c) means

11 Unfortunately, the first generation of this technology was not robust or flexible enough to be effectively utilized by industry. The word in bold probably means: a) fat b) small c) strong

12 New product introductions, which were critical to Meditechs strategy of rapid product development, needed to be introduced flawlessly to protect Meditechs reputation and sales of other products. The word in bold probably means: a) with energy b) with accuracy c) with privacy

13 Stocked products range from commodity items, such as surgical gloves and aspirin, to endoscopic surgical instruments. The word in bold probably means: a) unspecialized b) comfortable c) household

14 Some data were expressed in terms of calendar months, other data in terms of weeks, and still other data in terms of the corporate financial calendar (alternating 4-week, 4-week, and 5-week months). Once put together, the information conveyed the following: The word in bold probably means: a) transported b) hid c) revealed

15 This chart assumes that finished goods (FG) inventory is replenished once per week with a lead time of one week. The word in bold probably means: a) restocked b) bought c) sold