Supply Chain Final

One of the primary steps in developing world-class performance measures is to define a product's functions and attributes.

False

Supply chain perfect order fulfillment performance measures the average percentage of orders that are filled on or before the requested delivery date.

False

The Americas have two primary regional trade agreements, NAFTA, an agreement between the United States, Canada, and Mexico, and COMESA, an agreement between all of the South American countries.

False

Which of the following was designed by Kaplan and Norton in an effort to align performance measures with strategic plans and goals?

Balanced Scorecard

The following facility location technique uses fixed and variable costs to analyze potential locations:

Break-even model

Interconnected companies and institutions from a particular field which are located in a single geographic location, are referred to is a(n):

Business cluster

The weighted-factor rating model, is a useful location analysis technique when fixed and variable costs can be determined for each potential location.

False

Volatile currency exchange rates do not have an impact on location decisions.

False

While the development and proliferation of the Internet and web-based commerce has not completely eliminated the relevancy of facility locations, because of the Internet, the speed of delivery and cost in serving the customer are no longer factors in determining the strategic location of an organization's facilities.

False

A firm wanting to import items duty free and then use the component for local production of a product that is then exported would most likely utilize a(n):

Foreign Trade Zone

Which of the following is focused on promoting the sharing of environmental responsibility along the supply chain?

GSCM

Regional trade agreements assist with which of the following?

All of the above

Which of the following is a problem with a company establishing standards for performance? For example: production rates of 10 units per hour.

All of the above

Traditional performance measures include:

Cost and Revenue

Once a decision on locating a facility is made, it is ________ to move or shut down that facility.

Costly

Which of the following is a factor in choosing a location?

Currency stability

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

A company has 5 employees that work an 8 hour shift. During those eight hours they make 80 units. The labor productivity would be 10 units/hr.

False

A country that imposes high tariffs encourages foreign-based companies to import goods.

False

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

False

Performance measurements:

Help to eliminate non-value-creating activities Help identify new customer requirements Answer: B&C

Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination?

Hub and spoke

The first step in the weighted-factor rating technique is to:

Identify all factors considered important to the facility location decision

According to the textbook, the initial step in creating an effective performance measurement system is to:

Identify the firm's strategic objectives

A company produces 750 bicycles in one week. The labor used to make the bicycles was 400 hours. The next week, output was 710 bicycles using 360 hours. What was the change in labor productivity?

Increased by 5.2%

Which of the following BSC framework perspectives deals with new product development, innovative elements of processes, and time-based measures?

Internal Business Process

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 strategic foreign facilities is set up in a location with an abundance of advanced suppliers, competitors, research facilities, and knowledge centers to get access to the most current information on materials, components, technologies, and products?

Outpost factory

Which of the following is a traditional performance measure?

Overall total productivity

Which of the following would be considered a way to measure 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 the:

Performance Variance

Choosing to manufacture in China to sell to Chinese customers would likely involve which location decision consideration?

Proximity to markets

Which of the following secures the right of employees to decide whether to join or financially support a union?

Right-to-work laws

According to the textbook, which of the following zoos audited their waste recycling performance?

San Diego Zoo

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

Which of the following supply chain performance metrics measures the average percentage of orders that arrive on time, complete and damage-free?

Supply chain perfect order fulfillment performance

________________ is important because what we do today will affect future generations.

Sustainable Development

The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on:

Tariffs

Which of the following is NOT a problem with using cost, revenues or profits as performance measures?

They are difficult to compare with other firms

Business clusters provide the competitive environment that promotes increasing innovation and profitability

True

Establishing output or productivity standards creates a goal that can drive employees and managers to do whatever it takes to reach these goals, even if it means damaging the company

True

Facility location decisions can affect the efficiency and effectiveness of managing supply chains, the level of service provided to customers, and a firm's overall competitive advantage

True

High tariffs encourage multinational corporations to set up factories to produce locally.

True

In the U.S. there is a trend to locate manufacturing facilities in the sunny, incentive-friendly, nonunionized South.

True

Locating research and development, component manufacturing, assembly operations, marketing, and other associated businesses in one area can improve the supply chain, technology sharing, and information sharing.

True

SCORmark allows APICS Supply Chain Council (SCC) members to benchmark performance against selected peer companies using a benchmarking portal at the SCC's website.

True

Supply chain strategies must consider the trade-offs between the cost, quality, sustainability, and service requirements.

True

The critical issues in sustainable development are energy consumption/production, air pollution and climate change.

True

To control and enhance the capabilities of companies within a supply chain, well-designed performance measurement systems must be implemented.

True

While many developing countries are attractive to companies seeking out low labor costs, there are other factors such as productivity levels, employee skill and education levels, turnover rates, and employment trends that certain industries find just as important, if not more important, in determining facility locations.

True

While profit, revenue, and cost related performance metrics would seem to be useful in moving a company in the right direction, they often give no indication of the underlying causes of financial performance.

True

World class performance measurement systems today include assessments of environmental performance.

True

In well-managed supply chains, performance measurement systems become much larger and are complicated by:

Varied relationships, trust and interactions

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

False

A company produces 300 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 each bicycle cost $50, 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?

2.68

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities?

All of the above

Examples of regional trade agreements include all of the following EXCEPT:

Association of Indian Markets (AIM)

Which of the following would be considered a quality of life factor?

Community safety

Currently there is no software that will aid in analyzing the present carbon footprint of firms.

False

Due to the advances in technology, less business clusters are being created globally.

False

In general, firms aim toward first achieving adequate performance, and then continually improving on those measures.

False

In general, performance measurement systems are mostly identical from company to company.

False

In well-managed supply chains, performance measurement systems become smaller and less complicated due to the closer relationships, trust, and interactions.

False

Which of the following trade agreements created the world's largest free trade area, currently with over 450 million people and GDP of more than US$20 trillion?

North American Free Trade Agreement (NAFTA)

Which of the following is NOT one of the four perspectives of the BSC framework?

Reliability

Regional trade agreements and the World Trade Organization provide a framework for managers in terms of investigating important facility location elements like tariffs, costs, and the free flow of goods and services in different regions of the world.

True

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

True