6) When using a vendor-managed inventory system to enhance the features of supply chain management, a challenging issue is:

A) problems of communication and trust

B) the sharing of accurate, timely, and relevant information about sales forecasts

C) potentially incompatible information systems

D) all of the above

7) Just-in-time purchasing is guided solely by the economic order quantity.

8) Companies that implement JIT purchasing will switch their suppliers when another supplier offers a lower price.

9) Just-in-time purchasing describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations.

10) The manufacturing manager of New Technology Company is concerned about the company's newest plant. When the plant began operations three years ago, it had the best of everything. It had modern equipment, well-trained employees, engineered work and assembly stations, and a controlled environment. During the first two years, the evaluation results were very good with almost all cost variances being favorable. However, recently, things have turned negative.

In recent months, everything seems to be operating in a crisis management mode. Although most cost variances remain favorable, the plant's segment contribution is declining and customers are complaining about poor quality and slow delivery. Several customers have suggested that they may take their business elsewhere if things do not improve.

The shop floor is in continual turmoil. In-process inventory is everywhere, production employees have difficulty finding jobs that need to be worked on, and scheduling has requested a larger computer to keep track of work in process.

The vice president of sales does not know where to begin with solving the customers' problems. It seems that everyone is working very hard and the plant has the best facilities and trained employees in the industry.

Required:

What is the nature of the plant's problems? What recommendation would you make to help improve the situation?

11) What is a supply chain, and what are the benefits of a supply chain analysis? Provide an example of these benefits.