SCM final 13 and 14

Nowadays, successful supply chains are those that in the face of ever changing customer needs can continue to:

Deliver the right combination of cost, quality, and customer service

Manufacturing flow management is the key process that helps balance customer demand and the firm's output capabilities.

False

One of the key supply chain business processes is supplier relationship management, which seeks to forecast demand and coordinate purchasing and distribution in an effort to balance customer demand with the firm's manufacturing capacity.

False

RFID tags, which stands for Radio Frequency Identification tag, is a technology that will be used to gain real-time inventory information about the geographic location of a product in an effort to insure that shelves are full and that supply chains are issuing replenishment orders in a timely fashion.

False

RFID tags, which stands for Resource Forecast Infrared Device tag, is a technology that will be used to gain real-time inventory information and instigate replenishment orders when inventories get low.

False

RFID technology seeks to minimize supply chain visibility.

False

Results from process measurements should be shared and studied by managers across the supply chain so that they may plan changes to improve supply chain effectiveness and efficiency. Nonetheless, it is not recommended to share the results with the other supply chain employees since it may inflate egos or decrease morale.

False

Supply chain cash-to-cash cycle time is a performance measure that provides the average number of days between selling the end product to the customer and receiving full payment for the goods.

False

It is important for all supply chain members to first understand the limitations of the supplier network. This allows the retail companies to manage and limit customer expectations.

False

The development of functional silos within an organization is considered a key component to achieving successful supply chain process integration.

False

The traditional Balanced Scorecard framework consists of four perspectives: financial perspective, human resources perspective, inventory perspective, and the logistics perspective.

False

Using cost as a departmental or business unit performance measure ensures a decrease in costs in those units, but it also will likely raise revenues since those units have likely eliminated non-value added sales practices.

False

Price fluctuations that are the result of special product promotions, quantity discounts, and other special pricing discounts by suppliers result in:

Forward Buying

According to the textbook, Hewlett Packard utilizes a scorecard system to both grade their suppliers and also to communicate to suppliers how they have performed recently.

True

It is important for all supply chain members to first understand the important characteristics upon which the supply chain end product is competing. Once this is understood, the supply chain members should all be using strategies consistent with those competitive characteristics when delivering their product and/or service.

True

A company produces 250 bicycles every day. Each bicycle is worth $200. The inputs used to make those bicycles are labor, materials, and machine costs. The company pays their employees a total of $3,000 per day, the materials to make those bicycles cost $125 per bike, and the cost to operate the machines is $3500 per day. Based only on the data provided, what is this company's total productivity for one day?

1.32

Which of the following is NOT one of the eight key supply chain business processes?

Strategic Management

Using cost as a departmental or business unit performance measure can actually result in actions that raise costs for the organization.

True

A company produces 750 bicycles every day. Each bicycle is worth $250. The inputs used to make those bicycles are labor, materials, and machine costs. The company pays their employees a total of $7500 per day, the materials to make those bicycles cost $75 per bike, and the cost to operate the machines is $2500 per day. Based only on the data provided, what is this company's total productivity for one day?

2.830

A company produces 400 bicycles every day. Each bicycle is worth $250. The inputs used to make those bicycles are labor, materials, and machine costs. The company pays their employees a total of $10,000 per day, the materials to make those bicycles cost $50 per bike, and the cost to operate the machines is $3000 per day. Based only on the data provided, what is this company's total productivity for one day?

3.03

Once the supply chain partner requirements are understood, supply chain members can then:

Audit their capabilities to see if they are consistent with the needs of the end customers

Companies that train the employees of their supply chain partners are engaging in:

Collaborative education

While organizations are constantly trying to manage a number of different things at the micro-level everyday, the focus of the system should be to:

Create value for end customers

Which of the following identifies the key customers, determines their needs, and then develops products and/or services to meet those needs?

Customer Relationship Management

Which of the following models have been added to the SCOR model in an effort to more fully integrate the supply chain with marketing, sales, and design?

DCOR and CCOR

Companies typically like to design scorecards that fit their business and industry. As a result there are now software applications that can help companies design scorecards that fit their individual needs. These web-based scorecard applications are often referred to as:

Dashboards

Which of the following is a problem associated with using costs, revenues, and profits as metrics to gauge performance?

Environmental, political, and/or economic events may skew in these numbers

Which of the following is NOT a vital element in developing a strong supply chain through the practice of process integration?

Establishing acceptable punishments for poorly performing supply chain partners

A model used for integrating supply chains and measuring partner performance is the SCOR model which separates supply chain measures into four categories: Sourcing, Costs, Operations, and Returns.

False

According to the textbook, there are four key supply chain business processes: Purchasing, Manufacturing, Distribution, and Returns.

False

An important initial step in the supply chain integration model is for a firm to list all of it business partners so the firm can communicate their mission and vision to all those tied to their supply chain, this includes key trading partners and marginal trading partners.

False

Which of the following questions needs to be answered before designing the appropriate product/service to fulfill customer service expectations:

How much is the customer willing to pay? What level of variety is required to satisfy the customer? How often will customers place orders and how many units will they want? All of these

Which of the following would be considered a Supply Chain Risk Management activity?

Increasing safety stock, Diversify the supply base, Utilize a supply chain IT system, All of these

Which of the following is considered an obstacle to supply chain integration?

Lack of Supply Chain Visibility

Dominant companies within a supply chain can use their buying power to:

Leverage demands for supplier conformance to its supply chain requirements

Which of the following would be considered a way to measure the Supply Chain Environmental Performance?

Percentage of partners that have created a director of environmental sustainability position in their company

When utilizing performance standards, the difference between the standard and the actual performance is called:

Performance Variance

The following supply chain security activities, creating a director of security position, hiring personnel with military and/or government experience, and performing a formal security risk assessment, would be classified as:

Proactive Initiatives

A set of activities designed to produce a product or service for an internal or external customer is called a(n):

Process

The coordination and sharing of information and resources to jointly manage a process is referred to as:

Process Integration

Supply relationship management personnel routinely communicate with:

Production personnel to obtain feedback on supplier and purchased item performance, Marketing personnel for customer feedback, Suppliers for new product development and performance feedback, All of these

World-class performance measures can be used in different functional areas of a firm to satisfy objectives, enhance the value of the firm's products and services, and increase customer satisfaction by providing measures in which of the following capability area(s)?

Quality, Dependability, Innovation, All of these

What is RFID technology and how will it aid in management of the supply chain?

RFID stands for radio-frequency identification. In the near future, RFID is expected to be able to access real-time inventory information and allow companies to immediately replenish inventories when they are running low. This type of technology will allow supply chain managers to track inventory throughout the supply chain, collect information concerning demand, aid in keeping store shelves filled with product, and potentially decrease theft.

Which of the following is a contributor to the bullwhip effect?

Rationing

Which of the following supply chain performance metrics measures the average percentage of orders that are filled on or before the requested delivery date?

Supply chain delivery performance

A model used for integrating supply chains and measuring partner performance is the SCOR model which separates supply chain operations into five categories: Plan, Source, Make, Deliver, and Return.

True

An important initial step in the supply chain integration model is for a firm to identify the primary trading partners so the firm can concentrate its time and resources on managing the important process links with these companies.

True

Companies can now acquire software that will aid in analyzing the present carbon footprint of their supply chains, which can in turn show how improvements to supply chain might lower their carbon footprint.

True

Fear, uncertainty, and doubt between people and organizations are some primary obstacles preventing organizations from sharing information with supply-chain partners, as well as among coworkers.

True

Once an organization and its supply chain partners understand the end customer's needs, the supply chain partners must determine how to best satisfy those needs while managing the trade-offs that exist between cost, quality, quantity, and service requirements.

True

One of the key supply chain business processes is returns management, which seeks to manage used product disposition, product recalls, and packaging requirements, as well as minimizing future returns.

True

Passive RFID Tags, which are mandated by Wal-Mart, are less expensive than active RFID tags, which have been used for healthcare and military applications.

True

Some researchers have indicated that the Balanced Scorecard approach can problematic and costly to implement, and even after implementation may be unsuccessful in achieving the overall objectives.

True

Successful supply chain management requires the development of inter-organizational performance metrics and supply-chain performance metrics to maintain and continuously improve the effectiveness of key internal and external processes.

True

Supply chain cash-to-cash cycle time is a performance measure that provides the average number of days between paying for the raw materials of your end product and receiving full payment for the products after they have been sold.

True

The Balanced Scorecard approach to performance measurement seeks in to improve managerial decision-making by aligning an organization's performance measures with its strategic plan and goals.

True

The most basic security system should include procedures and policies for securing facilities, personnel, computer systems, and freight shipments.

True

The traditional Balanced Scorecard framework consists of four perspectives: financial perspective, internal business process perspective, customer perspective, and the learning and growth perspective

True

When demand exceeds a supplier's finished goods available, a supplier may allocate product in proportion to what buyers ordered. This rationing often results in shortage gaming by the suppliers customers.

True

While measurement of an organization's cost performance, quality output, and customer service performance is important, it is not enough to just measure. The company should use these measurements to gauge progress within a corporate program of continuous improvement.

True

While profit, revenue, and cost related metrics would seem to be useful in moving a company in the right direction, they are often difficult to tie to the good or poor behaviors of individual functional units or individual organizational processes.

True

The practice of buyers allowing suppliers to observe their demand, create a forecast, and determine their resupply schedules in the hopes of reducing inventories is called:

Vendor Managed Inventory