Quiz 5 & 6

Demand forecast updating

Access to market demand information (use of Point of Sale data) is a remedial strategy for which one of the four major causes of the Bullwhip Effect?

Adjust supply chain's design to meet structural shifts in markets; modify supply network to strategies, products, and technologies

According to the 2004 article "The Triple-A Supply Chain", Haul Lee states that only companies that build supply chains that are Agile, Adaptable, and Aligned get ahead of their rivals. Supply Chain ADAPTABILITY has as its primary objective:

Respond to short-term changes in demand or supply quickly; handle external disruptions smoothly

According to the 2004 article "The Triple-A Supply Chain", Haul Lee states that only companies that build supply chains that are Agile, Adaptable, and Aligned get ahead of their rivals. Supply Chain AGILITY has as its primary objective:

Create incentives for better performance across the supply chain

According to the 2004 article "The Triple-A Supply Chain", Haul Lee states that only companies that build supply chains that are Agile, Adaptable, and Aligned get ahead of their rivals. Supply Chain ALIGNMENT has as its primary objective:

monitoring controlling directing

Effective measurement systems must be constructed to accomplish three objectives: (I) ____________________ is accomplished by the establishment of appropriate metrics to track system performance for reporting to management. (II) _____________________ is accomplished by having appropriate standards of performance relative to the established metrics to indicate when the logistics system requires modifications or attention. The third objective, (III) _____________________ , is related to employee motivation and reward for performance.

They direct improvements at the functional level

Logistics executives must be positioned to demonstrate how supply chain practices and processes affect the overall health of the organization. Indicate from the statements below, which IS NOT a deficiency of traditional functional assessment reports:

Modularization and postponement?

Product design often plays an important role in supply chain management. Many products come in different varieties; meeting global demand by holding multiple Stock Keeping Units (SKUs) of similar products can require vast inventories. By redesigning the product so that more inventories can be held in a customizable, "lowest common denominator" form, inventory can be reduced. This strategy is known as:

Price fluctuations

Reduce frequency and magnitude of special trade deals and consumer promotions (EDLP Everyday Low Price) is a remedial strategy for which one of the four major causes of the Bullwhip Effect?

upstream; demand distortion; increases, variance propagation

Supply chain activities involve from design, purchasing, manufacturing, logistics, distribution, and transportation to marketing. Frequently, different firms own the various links in the supply chain structure. The Bullwhip Effect refers to the phenomenon where orders to the _______________ member in a supply chain exhibit higher variance than actual orders at the point of retail sale (_________________________), and the variance of orders _________________ as one moves upstream in the supply chain (_______________________).

Balance Scorecard (BSC)

The _________________ is a strategy performance management tool - a semi-standard structured report, supported by design methods and automation tools that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions. It considers a "4 perspectives" approach namely Financial, Consumer, Internal business processes, and Learning and growth.

Supply Chain Operations Reference Model (SCOR Model)

The ____________________, developed by the Supply Chain Council (SCC), is a standard supply-chain process framework that enables effective communication among the supply chain partners, by using standard terminology to better communicate and learn the supply chain issues and standard metrics to compare and measure their performances.

Cash-to-Cash cycle

The contemporary focus on overall supply chain performance and effectiveness demands metrics that provide an integrated perspective. The __________________ is the time it takes an investment made to flow back into a company after it has been spent for raw materials. For services, this represents the time from the point where a company pays for the resources consumed in the performance of a service to the time that the company received payment from the customer for those services.

Perfect Order

The contemporary focus on overall supply chain performance and effectiveness demands metrics that provide an integrated perspective. The ______________________ is the percentage of orders meeting delivery performance with complete and accurate documentation and no delivery damage. Components include all items and quantities on-time using the customer's definition of on-time, and documentation - packing slips, bills of lading, invoices, etc.

Cost of Goods Sold

The temporary focus on overall supply chain performance and effectiveness demands metrics that provide an integrated perspective. The __________________ is the cost associated with buying raw materials and producing finished goods. This cost includes direct costs (labor, materials) and indirect costs (overhead).

Increase the number of promotion events and price discounts?

Uncertainty is the base of operations. No matter in what form (uncertain demand, uncertain supply, or uncertain quality), performance never benefits from the presence of uncertainty. There are managerial strategies for reducing and hedging operational uncertainty. Identify from the list below which IS NOT considered one of these strategies.