MGT 302 Exam 1

Risk Management Process

1. identify the sources of potential disruptions 2. assess the potential impact of the risk 3. develop plans to mitigate the risk

Pure Goods, Core Goods, Core Services or Pure Services? Appliances, Automobiles, Data Storage

Core Goods

Pure Goods, Core Goods, Core Services or Pure Services? Hotels, Airlines, IT services

Core Services

True or false: An operations and supply chain strategy is independent of the corporate strategy.

False

True or false: Stakeholders are individuals or companies that legally own a portion of the company and are not influenced by the actions of that company.

False

True or false: A firm can excel simultaneously on all competitive dimensions.

False (Trade-offs)

True or false: An order qualifier today will be an order winner in the future.

False (order winner becomes an order qualifier)

Delivering

Logistics processes used to move products and information.

Strategic operation of a supply chain.

Planning

5 Step Operation and SC Process

Planning, Sourcing, Making, Delivering, Returning

Making

Producing the firm's major product or service.

firm builds service activities into its product offerings for additional value

Product-Service Bundling

Pure Goods, Core Goods, Core Services or Pure Services? Food Products, Chemicals

Pure Goods

Pure Goods, Core Goods, Core Services or Pure Services? Medical, University

Pure Services

Value

Quality divided by the price

Returning

Receiving worn-out, defective, and excess products back from customers.

asset turnover ratio

Revenue (or Sales) / Total Assets

minimize total traveling distance and meet customer's delivery time

Routing / Heuristics "Rule of Thumb"

Sourcing

Selection of suppliers.

True or false: A process is made up of one or more activities that transform inputs into outputs.

True

True or false: An operations strategy must consider the risk throughout the supply chain.

True

True or false: Most product offerings are a combination of goods and services.

True

True or false: Operations and supply chain management is focused on the systems that create and deliver an organization's products and services.

True

True or false: When selecting the period length for a moving average, it should be dependent on how the forecast is going to be used.

True

Which of the following is an example of a service business? a. A call center. b. A computer manufacturer. c. An automobile manufacturer. d. A perfume maker.

a. A call center

The exponential forecasting model uses the following data to calculate a forecast: Multiple Selection a. Actual demand for most recent forecast period b. Smoothing constant delta c. Most recent forecast d. Smoothing constant alpha

a. Actual demand for most recent forecast period c. Most recent forecast d. Smoothing constant alpha

Which of the four basic types of forecasting assumes that demand is related to some underlying factor in the environment? a. Causal Forecasting b. Qualitative Forecasting c. Time Series Analysis d. Simulation Models

a. Causal Forecasting

the most widely used forecasting technique is? a. Exponential Smoothing b. Complex Moving Average c. Linear Regression d. Simple Moving Average

a. Exponential smoothing

Operations and supply chain management includes which of the following activities? Multiple select question. a. Operation of systems that create the firm's primary products. b. Managing the firm's advertising expenditures. c. Design of delivery systems. d. Improvement of systems that create the firm's primary products.

a. Operation of systems that create the firm's primary products. c. Design of delivery systems. d. Improvement of systems that create the firm's primary products.

Which of the following competitive dimensions relates to environmental impact? a. Other Product-Specific Criteria b. Delivery Reliability c. New-Product Introduction Speed d. Cost

a. Other Product-Specific Criteria

The exponential forecasting model uses all the following data EXCEPT: a. Smoothing constant delta b. Smoothing constant alpha c. Most recent forecast d. Actual demand for most recent forecast period

a. Smoothing constant delta

In an exponential smoothing model, what is the function of the smoothing constant alpha (α)? a. To control how quickly the model reacts to differences between the forecast and actual demand. b. To allow for an increase in the forecast to avoid shortages. c. To adjust for trends in the data. d. To determine how much of the historical data to consider for inventory restock.

a. To control how quickly the model reacts to differences between the forecast and actual demand.

Which term defines when activities are incompatible so that more of one thing necessitates less of another activity? a. Trade-off b. Balanced approach c. straddling d. productivity

a. Trade-off

Activity-system maps are useful for? (select all that apply) a. Understanding the fit between system activities and company strategy. b. Identifying strategic themes. c. Identifying weak links in the supply chain. d. Assigning strategic projects to employees.

a. Understanding the fit between system activities and company strategy. b. Identifying strategic themes.

A tool that shows how a company's strategy is delivered through a set of tailored activities is called a(n) a. activity-system maps. b. process map. c. flowchart. d. activity-system framework.

a. activity-system maps

A moving average forecast is based on a. average past demand. b. minimum past demand. c. future demand. d. maximum past demand.

a. average past demand

If an error cannot be explained by the forecast model being used, it is called ________ error. a. random b. unexplained c. forecast d. mysterious

a. random

Which of the following is true of services? (Check all that apply) Multiple select question. a. They are perishable. b. They do not involve customer interaction. c. They are homogeneous. d. They are intangible.

a. they are perishable d. they are intangible

Supply chain disruptions are a. unplanned and unanticipated. b. deliberate and difficult to predict. c. random and predictable. d. deliberate and predictable.

a. unplanned and unanticipated.

receivables turnover ratio

annual credit sales / average accounts receivable

Which of the following is NOT a type of process in the supply chain? a. Making b. Evaluating c. Sourcing d. Planning

b. Evaluating

When the most recent occurrences are more indicative of the future than those in the distant past, one should use which time series model? a. Simple Moving Average b. Exponential c. Linear Regression d. Complex Moving Average

b. Exponential

The feature that actually differentiates one product from the other candidates and is purchased is known as the? a. Order difference b. Order winner c. Order purchase d. Order qualifier

b. Order winner

What tool involves assessing the probability or relative frequency of an event against the aggregate severity of the loss? a. Risk strategy b. Risk mapping c. Risk forecasting d. Risk planning

b. Risk mapping

All of the following are reasons why exponential smoothing has become well accepted EXCEPT: a. Formulating the model is easy b. Tests for accuracy are difficult c. Models are surprisingly accurate d. Low computer storage requirements

b. Tests for accuracy are difficult

The competitive dimension that deals with getting the product to the customer when promised is called a. flexibility. b. delivery reliability. c. after-sale support. d. delivery speed.

b. delivery reliability.

Tactical forecasts are typically used to estimate demand for the next __________. a. long-term contract renewal b. few weeks or months c. few hours d. few years

b. few weeks or months

All of the following are competitive dimensions that help to form a firm's competitive position except a. cost. b. retail store. c. flexibility. d. delivery speed.

b. retail store

Operations and supply chain management is primarily concerned with systems that create and deliver a. the firm's payments to vendors. b. the firm's primary products and services. c. information to customers.

b. the firm's primary products and services.

one company studies processes of another's best practices

benchmarking

retailer with physical stores in which consumers are able to immediately purchase goods

brick-and-mortar retailer

Which of the following is an example of a goods producing business? a. A call center. b. A college or university. c. An automobile manufacturer. d. A hospital.

c. An automobile manufacturer.

Which time series forecasting model uses weights that decrease at a rate of (1 - α) for each past period? a. Delta b. Linear Regression c. Exponential smoothing d. Simple moving average

c. Exponential smoothing

Straddling is defined as a. avoiding trade-offs by dropping unneeded features. b. increasing sustainability of a process by decreasing its costs. c. adding new features, services, or technologies to existing products to match a competitor. d. avoiding trade-offs by reducing the cost of a product.

c. adding new features, services, or technologies to existing products to match a competitor.

The main disadvantage of the moving average is that a. it drops the most current data point. b. it is difficult to calculate. c. all individual data elements must be carried as data. d. it is time consuming to calculate.

c. all individual data elements must be carried as data.

When a consistent mistake is made in a forecast, this is classified as ___________ error. a. calculated b. forecast c. bias d. random

c. bias

Doing something at the lowest possible cost is known as a. efficiency. b. value. c. effectiveness. d. quality.

c. efficiency

A process that cannot be weighed or measured is known as a. perishable. b. tangible. c. intangible. d. time-dependent.

c. intangible

Shareholders are individuals or organizations that a. own products manufactured by the company. b. are not influenced by the actions of the firm. c. own one or more shares of stock in the company. d. are on the company's board of directors.

c. own one or more shares of stock in the company.

The operations and supply chain strategy is a part of the a. competitive process. b. design process. c. planning process. d. management process.

c. planning process.

Operations and supply chain processes are the activities that... a. create inputs and outputs. b. transform outputs into inputs. c. transform inputs into outputs.

c. transform inputs to outputs

inventory turnover ratio

cost of goods sold / average inventory value

Which of the following is NOT a reason why exponential smoothing has been well accepted? a. Users can understand how the model works. b. Little computation is required to use the model. c. Models are surprisingly accurate. d. Formulating the model is relatively difficult.

d. Formulating the model is relatively difficult.

Which of the following is not a component of demand? a. Random b. Trend c. Seasonal d. Planned

d. Planned

When a firm seeks to match the benefits of a successful position while maintaining its existing position (for example, an automobile manufacturer wants to occupy both the luxury-car segment and the performance-car segment at the same time). This is an example of a. Sustainability. b. Trade-offs. c. Order qualifiers. d. Straddling.

d. Straddling

Bias errors occur when _____. a. a forecast is neither too high nor too low. b. a forecast alternates between too high and too low. c. a forecast is incorrect. d. a forecast is consistently too high (or too low).

d. a forecast is consistently too high (or too low).

Doing the things that will create the most value for the customer is known as a. quality. b. value. c. effectiveness. d. efficiency.

d. effectiveness

A forecast based on average past demand is a a. linear regression forecast. b. quantitative forecast. c. static average forecast. d. moving average forecast.

d. moving average forecast.

What type of forecast should be used for strategy, sourcing, and location decisions? a. Independent b. Tactical c. Operational d. Strategic

d. strategic

In the exponential smoothing forecast, At-1 represents a. the desired response rate. b. the exponentially smoothed forecast for the prior period. c. the exponentially smoothed forecast for time period t. d. the actual demand in the prior period.

d. the actual demand in the prior period.

strategic

decisions that have long-term implications

tactical

decisions that impact short-term performance

part of logistics process. carriers move product to warehouses and customers and the supply network

delivering (4)

tier 1 supplier

design and assemble of component systems

tier 2 supplier

design and manufacture of specialized components

building used to receive products from suppliers and then redistribute them to retail stores or send packages to consumers (fulfillment center)

distribution center

most value for customer

effectiveness

lowest possible cost

efficiency

quick sales, high demand (good), could lead to shortages

high inventory turnover ratio

distributor

inventory storage, break-bulk, transportation

reason why Amazon bought whole foods because groceries are perishable goods

last-mile-problem

moving product from warehouse to final destination of customers

last-mile-problem (delivery)

retailers that merchandize their goods via a print catalog and sell to consumers by shipping them goods via a third-party/catalog retailers

mail-order retailers

major product is produced or service is provided (scheduling, coordinating material, equipment), metrics: speed, quality, and worker productivity

making (3)

design and assembly of final product

manufacture

labor productivity

net income per employee

retailers merchandize their goods via online website (or app) and ship via third party (e-commerce, e-tailers)

online retailers

In time series analysis, ____________ demand is used to predict __________ demand.

past; future

processes needed to run existing supply chain strategically with efficiency (how to meet demand)

planning (1)

retailers

product assortment, consumer-support and services

operations

provide/produce service/product

receiving worn-out, excess, and/or defective products back from customers and giving support to customers with delivered products

returning (5)

selection of suppliers that will deliver the goods and services needed to create the firms product (pricing, delivery, payment)

sourcing (2)

Qualitative forecasts are ____________ while quantitative forecasts are __________________.

subjective; numerical

movement of information and material to and from firm

supply chain

3 decision making styles

tactical, strategic, operational

Triple Bottom Line

the social, economic and environmental performance of a business

5 levels of supply chain

tier 2 suppliers tier 1 suppliers manufacturers distributors retailers

lead time

time to receive an order

attractiveness of a product relative to price

value