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Business English Exercises
 

The Physical Supply Chain

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Home > Teaching Business English > Business English Lessons, Advanced Level # 438
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The reduction of uncertainty in the physical supply chain requires cooperation between trading partners; this uncertainty is reduced incrementally but requires adequate investment from both of the partners.

Correct answer: (b) incrementally

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During the initial development of integrated supply chains, the more powerful of the partners dictated their requirements.

Correct answer: (c) dictated

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With, for example, a just-in-time system, timely delivery of components lowered the working capital needed by a powerful customer, while the supplier had to investment heavily to adapt their system.

Correct answer: (a) a just-in-time

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The system is uncertain for the supplier because the payment receipt date is unknown, yet powerful customers are reluctant to invest in providing a more certain system because it is the supplier that receives the benefit.

Correct answer: (d) reluctant

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Instead of cooperating in the removal of costs from their supply chain, the customer's finance functions may take an opportunistic approach: payments may be delayed in order to match cash flows or operational processes.

Correct answer: (b) an opportunistic

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A smaller supplier may also incur higher charges for foreign exchange transactions and cash management services.

Correct answer: (d) incur

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With regard to the financial supply chain, it has been proving problematic to implement a sure system for invoice input and generation of payment orders.

Correct answer: (c) generation

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However, in the long run, the process of iterative improvements in the supply chain demands close cooperation.

Correct answer: (c) iterative

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Instead of apportioning savings to each partner for every investment, the focus is shifted to a more general form of reciprocation.

Correct answer: (a) reciprocation

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The thrust of the trading relationship can then shift from competition between partners and focus instead upon cooperation within the supply chain and adversarial competition between chains.

Correct answer: (d) adversarial

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