S & OP Final Exam Study Quide

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

True

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

True

T/F 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

Facility location has ____________on the supply chain.

A long-term impact

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

Association of Indian Markets (AIM)

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

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

Milan, Wall Street, and Detroit are examples of ____________.

Business clusters

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

Community safety

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

T/F 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

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

False

T/F A list of quality-of-life factors would most likely include proximity to customers, proximity to suppliers, tariff rates, and currency stability.

False

T/F 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

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

Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the 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

According to the SCOR model, which of the following is NOT one of the five supply chain operation process categories?

Market

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 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

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 balanced scorecard applications are often referred to as:

Performance dashboards

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

Proximity to markets

Cost-based performance measures _____ reflect the underlying performance of the productive systems of an organization.

Rarely

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

Reliability

Which 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

A company is considering Denver, Seattle, and Portland as candidate locations for a new facility. For the weighted-factor rating technique, the company is evaluating each location on three factors (distance to customers, labor costs, and utility costs). The factors are weighted 0.5, 0.3, and 0.2, respectively. Denver received scores of 90, 77, and 65 for the three factors. Seattle received scores of 87, 82, and 70. Portland received scores of 84, 86, and 75. Which of the three cities is ranked second by the weighted-factor rating technique?

Seattle

According to the text, which of the following would be an example of Coca-Cola's international bottling plants, each serving a small geographic region?

Server factory

Which of the following is NOT a reason for locating in a business cluster?

Sophisticated retailers

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

Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different location considered for a new manufacturing facility. Site A $25,000, $11 Site B $20,000 $19

The breakeven point for these two locations is 625 units per year

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

T/F A weakness of the labor productivity measure is that managers might be tempted to lay off workers to improve labor productivity.

True

T/F An effective performance measurement system consists of the traditional financial information for external reporting purposes along with tactical-level performance criteria used to assess the firm's competitive capabilities.

True

T/F Business clusters provide the competitive environment that promotes increasing innovation and profitability.

True

T/F 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

T/F 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

T/F Global location decisions are made to optimize the performance of supply chains and to be consistent with the firm's competitive strategy.

True

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

True

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

True

T/F 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

T/F Many multinational corporations are moving their facilities into China to have access to the local markets rather than for export reasons.

True

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

Varied relationships, trust and interactions

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

False

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

False

T/F One of the primary steps in developing world-class performance measures is to define a product's functions and attributes.

False

T/F Outputs/costs of (labor + materials + energy + capital), would be classified as a complete productivity measure.

False

T/F 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

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

False

T/F 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

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

False

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

False

T/F Traditional performance measures tend to link current operating characteristics to long-term strategies and objectives.

False

T/F Two models that utilize quantitative data, which can help determine the attractiveness of one location versus another, are the Break-Even Model and the Extrapolated Average Cost Model.

False

T/F Using the weighted-factor rating model, the location with the lowest total weighted score is the recommended location.

False

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

False

T/F 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 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

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

False

Regional trade agreements assist with which of the following? A. Monitor national trade policies B. Provide technical assistance for developing countries C. Handle trade disputes D. All of the above

D. 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. A. Employees are driven to work so fast they may make defects B. Employees and managers may falsify production records C. Once performance goals are reached, incentives to improve may disappear D. All of the above

D. All of the above

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities? A. The stability in the location considered B. Environmental issues regulated by domestic laws or international trade agreements C. Access to suppliers from the location considered D. All of the above

D. All of the above

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)? A. Quality B. Cost C. Customer Service D. All of the above

D. All of the above

Performance measurements: A. Assist in pricing of products B. Help to eliminate non-value-creating activities C. Help identify new customer requirements D. Both B & C

D. Both B & C

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

T/F Access to global markets and corporate networks makes the role of location less important as a source of competitive advantage.

False

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

False

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

False

T/F Facility location has a short-term impact on the firm's supply chains.

False

T/F 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

T/F 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

T/F 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

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

True

T/F The Balanced Scorecard approach to performance measurement seeks to improve managerial decision-making by aligning an organization's performance measures with its strategic plan and goals.

True

T/F The European Union (EU) is considered a regional trade agreement.

True

T/F The SCOR model's newest process category is called Enable.

True

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

True

T/F The development of cleaner, more fuel-efficient and affordable energy technologies will have a direct impact on the cost of production of goods and delivery of services.

True

T/F 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 the financial performance.

True

T/F World class performance measurement systems today include assessments of environmental performance.

True