SCMT Exam 4

[Chapter 6] Who set up the CDFR?

Voluntary Interindustry Commerce Standards (VICS)

[Video, week 10] What is the beer game?

a business simulation that allows players to experience managing the complexities of a supply chain. poker chips represent beer cases, players represent 1 of 5 supply chains (retailer, distributer, wholesaler, factory, raw materials)

**[Chapter 6]** What is CDFR?

a committee to investigate collaborative planning, forecasting, and replenishment issues.

[Chapter 6] What is sales and operation planning (S&OP) and what is its purpose?

a further elaboration of the planning process; also shares elements in common with the CPFR process. purpose of S&OP is to routinely review customer demand for different products and the sources of supply for those products, and then re-plan or adjust existing plans to best match supply with demand

**[Chapter 6]** What is the Global Data Synchronization Network (GDSN)?

a network of independently owned and operated databases that can exchange data with each other and the GS1 Global Registry.

[Chapter 6] Who administers the GDSN?

GS1; increasingly being used by companies in consumer goods retail and related areas; allows data about products to be continuously updated as new products are released

**[Chapter 5]** What is the formula for inventory turns?

Turns = Annual Cost of Sales/Annual Average Inventory Value

**[Chapter 5]** What is the bullwhip effect?

a slight change in demand by the end customer or the market can cause wildly escalating product demand forecasts to be sent to companies further down the supply chain; this bullwhip effect results in the production of large quantities of inventory that can then outstrip the real demand in the market

**[Chapter 5]** What is business intelligence (BI)?

a system built by a company in order for the company to keep pace in the relentless world of business

[Chapter 4] What is eXtensible markup language (XML)?

a technology that is being developed to transmit data in flexible formats between computers and between computers and humans.

[Chapter 4] What is electronic data interchange (EDI), and when was it first deployed?

a technology that was developed to transmit common types of data between companies that do business with each other; 1980's

[Chapter 6] What is the GS1 Global Registry?

acts as a central coordinator between all the other databases to provide for timely and traceable distribution of verified product descriptive information between all the databases

**[Chapter 5]** _______ itself is now as important to survival and success as the four performance categories

adaptability

[Chapter 4] What is a database?

an organized grouping of data that is stored in an electronic format

*[Chapter 5]* When it comes to internal efficiency, what are some assets?

anything of value including plant, equipment, inventory, cash

[Video, week 8] What are the 5 biggest technologies that will affect your shopping experience?

beacons, facial recognition, robot assistants, smart mirrors, auto checkout

**[Chapter 6]** Why does order batching occur? How to fix it?

because companies place orders periodically for amounts of product that will minimize their order-processing and transportation costs; to fix it, we find ways to reduce the cost of order-processing and transportation. we can reduce transportation costs by using 3rd party logistics suppliers

*[Chapter 5]* What is the cure for the bullwhip effect?

better sharing of data among all the companies in a supply chain

[Video, week 10] Little wiggles make _______ wiggles (bullwhip effect). Why does this happen?

big; players are not communicating and collaborating with each other throughout the timeline. overreacting creates the bullwhip

[Chapter 4] What is the focus of manufacturing Execution Systems (MES)?

carrying out the production activities in a factory

**[Chapter 6]** What is product pricing? How to respond to it?

causes product prices to fluctuate, resulting in distortions of product demand; to resolve this, companies should revolve around the concept of "everyday low prices"

*[Chapter 4]* What is the key component that is driving the development of all other IT components? Why?

cloud computing, because it is the medium that makes the other components accessible and affordable to customers

*[Chapter 4]* What are the key components of information technology?

cloud computing, data transmission (EDI and XML), databases and business analytics, application systems

**[Chapter 4]** What is the approach of a smart factory?

connected factories with fully digitized production processes and IoT sensors to capture and transmit information

**[Chapter 5]** ______ ______ measures the ability of the supply chain to meet the expectations of its customers

customer service

**[Chapter 5]** What is operational detail?

data consists of the measures labeled "Level 3" in the SCOR model. these measurements help people who are charged with getting a job done to understand what is happening and to find ways to. make improvements where needed to meet the performance targets that have been set

**[Chapter 5]** This category measures the ability to respond to uncertainty in levels of product demand

demand flexibility

**[Chapter 5]** _______ _______ describes a company's ability to be responsive to new demands in the quantity and range of products. and to act quickly.

demand flexibility

**[Chapter 6]** What is demand forecasting?

demand forecasting, based on orders received instead of end-user demand data, will inherently become more and more inaccurate as it moves up the supply chain

**[Chapter 6]** What are performance incentives?

different for different companies/individuals in a supply chain; the company makes incentives that reward its salesforce on sales made each month or quarter

[Video, week 9] A good system of metrics needs to provide information on _____, _____, and _____

effectiveness, efficiency, and adaptability

**[Chapter 4]** What is the goal of a smart factory?

efficient operations optimization, process improvement, and predictive maintenance within the factory by tracking real-time data and taking proactive actions due to intelligence provided by machine learning models

[Chapter 4] What is the most cost effective way for businesses to communicate with each other?

electronic data interchange (EDI)

**[Chapter 4]** What is ERP and what does it do?

enterprise resource planning systems gather data from across multiple functions in a company; they monitor orders, production schedules, raw materials purchases, and finished goods inventory.

**[Chapter 5]** What is tactical detail?

helps middle management decide how to do something. consists of actual, plan, and historical numbers in the four performance categories. includes the performance metrics labeled as "level 2"

**[Chapter 5]** What is strategic detail?

helps top management decide what to do. consists of current actual as well as plan and historical numbers that show the company's standing in the four performance categories. strategic detail is referred to as "Level 1" data

*[Chapter 5]* Customers in some markets expect/will pay for _____ levels of product delivery/availability and quick delivery of _____ purchase quantities; other customers will accept _____ waits for products and will purchase in _____ quantities.

high, small; longer, large

**[Chapter 5]** Steady market: ____ demand and ____ supply. High predictability.

high; high

**[Chapter 5]** Growth market: ____ demand and ____ supply. Supply is often uncertain.

high; low

[Chapter 5] In a risky developing market, the profit margins need to be ______ in order to justify the investment of time and money

higher

[Chapter 4] What are Advanced Planning and Scheduling (APS) systems?

highly analytical applications whose purpose is to assess plant capacity, material availability, and customer demand

*[Chapter 5]* In a BTS environment a customer wants their complete order to be filled _______.

immediately

*[Chapter 5]* Demand flexibility shows how much of an _______ over current levels of demand can be handled by a company or a supply chain.

increase

**[Chapter 4]** _____ ______ is the ability to share relevant information among companies in a supply chain, including data such as sales history, demand forecasts, etc.

information integration

**[Chapter 5]** _______ _______ refers to the ability of a company or a supply chain to operate in such a way as to generate an appropriate level of profitability

internal efficiency

**[Chapter 5]** _______ _______ refers to the ability of a company or a supply chain to use its assets as profitably as possible.

internal efficiency

**[Chapter 5]** _______ _______ is a way to measure the profitability of inventory by tracking the speed with which it is sold or turned over during the course of a year.

inventory turns (turn and earn)

**[Chapter 4]** What is cloud computing?

it is both a model for delivery of business-computing services and a method for managing and operating computing hardware and software infrastructure

**[Chapter 5]** What does the Supply-Chain Council's supply chain operations reference (SCOR) model do?

it suggests the kind of operational data that should be collected; suggests more detailed data that can be collected and analyzed in each of the four supply chain operating areas

**[Chapter 5]** Mature market: ____ demand and ____ supply.

low; high

**[Chapter 5]** Developing market: _____ demand and _____ supply. Unpredictable/uncertain, new market and new products

low; low

[Chapter 5] In a mature market where there is little uncertainty or risk, profit margins can be somewhat _____.

lower

[Video, week 8] What is the mission statement of the Dabbawalas?

"To always deliver on time"

[Chapter 4] What are the three main building blocks that create our cloud infrastructure?

1) information management and storage 2) machine learning and advanced analytics 3) dashboards and visualizations

[Chapter 6] What are the 2 steps of the Collaborative Planning aspect of CDFR?

1) negotiate a front-end agreement that defines the responsibilities of the companies that will collaborate with each other 2) build a joint business plan that shows how the companies will work together to meet demand

*[Chapter 5]* What are the 4 business operations according to the SCOR model?

1) plan 2) source 3) make 4) deliver

**[Chapter 4]** What are the 3 components of the big-data learning feedback loop?

1) plan (develop and maintain) 2) build (define, design, build) 3) run (run, manage, improve)

[Video, week 9] The 4 areas of supply chain you can focus on to measure supply chain performance is _______, _______, ________, and ________.

1) planning 2) operations 3) delivery of products and services to customers 4) post-delivery performance

*[Chapter 4]* What are the three characteristics that everyone accepts when it comes to describing cloud computing?

1) practically unlimited computing resources 2) no long-term commitments 3) pay-as-you-go cost structure

*[Chapter 5]* What are the 5 popular metrics for a build-to-order situation?

1) quoted customer response time and on-time completion rate 2) on-time delivery rate 3) value of late orders and number of late orders 4) frequency and duration of late orders 5) number of warranty returns and repairs

**[Chapter 5]** What are the three levels of detail when it comes to business intelligence (BI)?

1) strategic 2) tactical 3) operational

*[Chapter 4]* What are the three different levels of planning, and what are the time horizons for each?

1) strategic (1 to 5 years) 2) tactical (1 month to 1 year) 3) operational (1 day to 1 month)

[Chapter 5] What 3 developments cause a market to change over time?

1) technical innovations 2) social change 3) economic developments

[Chapter 6] What are the 3 steps of the Collaborative Forecasting aspect of the CDFR?

1) create sales forecasts for all the collaborating companies 2) identify any exceptions or differences between companies 3) resolve the exceptions to provide a common sales forecast

[Chapter 5] What are the 4 performance categories?

1) customer service 2) internal efficiency 3) demand flexibility 4) product development

[Chapter 6] What are the 5 major factors that cause the bullwhip effect?

1) demand forecasting 2) order batching 3) product rationing 4) product pricing 5) performance incentives

**[Chapter 5]** What are the 4 basic market types?

1) developing 2) growth 3) steady 4) mature

**[Chapter 4]** What are the 7 technologies driving new changes in supply chains?

1) industrial robots 2) drones and driverless vehicles 3) artificial intelligence (AI) 4) internet ofThings (IoT) and big data 5) real-time product information 6) 3D printing and additive manufacturing 7) simulation modeling

**[Chapter 5]** What is the formula for cash-to-cash cycle time?

Cash-to-cash- cycle time = inventory days of supply + days sales outstanding - average payment period on purchases

[Video, week 8] What is the technology behind beacons?

Bluetooth Low Energy

[Video, week 8] What are the 5 must have supply chain technologies?

1) ERP (enterprise resource planning) 2) WMS (warehouse management system) 3) YMS (yard management system) 4) TMS (transportation management system) 5)Integrations & APIs

*[Chapter 4]* What are the 2 major things that CRM systems do?

1) TRACK buying patterns and histories of customers, and 2) CONSOLIDATE a company's customer-related data in a single place where it is quickly accessible by customer service and sales people who use the data to better respond to customer requests

*[Chapter 5]* What are 4 measures of demand flexibility?

1) activity cycle time 2) upside flexibility 3) outside flexibility 4) activity cycle time

*[Chapter 6]* What are the three activities that the CPFR is divided into?

1) collaborative planning 2) collaborative forecasting 3) collaborative replenishment

*[Chapter 5]* What are the 5 popular metrics for a build-to-stock (BTS) situation?

1) complete order fill rate and order line item fill rate 2) on-time delivery rate 3) value of total backorders and number of backorders 4) frequency and duration of backorders 5) line item return rate

[Chapter 6] What are the 4 steps of the Collaborative Replenishment aspect of the CDFR?

1) create order forecasts for all the collaborating companies 2) identify exceptions between companies 3) resolve the exceptions to provide an efficient production and delivery schedule 4) generate actual orders to meet customer demand

[Video, week 8] How many reference points does the iPhone use in facial recognition

16,000

[Video, week 9] What is the perfect order probability industry average?

68%

[Video, week 9] What percentage of The Fishin' Company's trucks need to be on time? What percent needs to be in full?

87%, 97.5%

[Video, week 9] What is the most common KPI?

DIFOT (delivery in full on time)

[Video, week 8] What is the name of the Indian delivery system that delivers home cooked meals to people every day?

Dabbawalas

[Chapter 4] In the longer term, ________ will be wholly consumed by __________

EDI; XML

*[Chapter 4]* SCM systems rely on _________ or other relevant systems to provide them with data to support the analysis and planning that they do

ERP

[Video, week 9] What is a KPI?

Key Performance Indicator

[Video, week 9] What is the main metric that The Fishin' Company uses?

OTIF

[Video, week 8] How to the Dabawalas deliver their lunches?

On bike, train, and on their head. They paint numbers and letters on the lunchboxes to determine where they will bring the lunchbox

[Video, week 9] What are the 2 segments of OTIF?

On-time and in full

[Video, week 8] What are beacons?

Small wireless devices that transmit a continuous radio. signal; the ID is detected by smart phones that send the ID to a cloud server that can then push targeted content to the device.

**[Chapter 4]** What is the impact of a smart factory?

The internet of things (IoT- sensors, digitized tools, cloud, and machine intelligence) will empower factories to remotely track, monitor, and adjust machinery based on sensor data flowing from the factory

[Video, week 9] Modern managers, especially supply chain managers, must marry ________ _______, ______ _______, and _____ ______ to develop the right performance measurement tools

quantitative skill, psychological understanding, operational knowledge

*[Chapter 4]* Innovation = Evolution through _____ _____

rapid iteration

[Chapter 4] _________ __________ focus on the procurement activities that take place between a company and its suppliers. The streamline the procurement process and make it more efficient

procurement systems

**[Chapter 5]** This type of development encompasses a company's supply chain's ability to continue to evolve along with the markets they serve. It also measures the ability to develop and deliver new products in a timely manner.

product development

*[Chapter 4]* ERP systems come in _________ that can be installed on their own or in combination with other modules.

modules

**[Chapter 4]** What are application systems? 3 examples?

normally consist of a user interface, business logic and a database of some sort; Microsoft Word, Oracle, Microsoft Excel

*[Chapter 5]* In a BTO environment it is important to track both the quoted customer response time and the __________ completion rate

on-time

**[Chapter 5]** What is a build-to-order (BTO) situation? Examples?

one where a customized product is ordered by a customer; any situation where a product is built based on a specific customer order and is configured to meet a unique set of requirements defined by the customer. Eg; airplanes, custom PC's

**[Chapter 5]** What is a build-to-stock (BTS) situation? Examples?

one where common commodity products are supplied to a large market or customer base. Eg; office supplies, cleaning supplies, etc.

**[Chapter 5]** What are dashboards?

one-page displays of the key operating or financial measures that people in a company are responsible for achieving; they show a person at a glance the data that is most important to them

[Chapter 5] _______ _______ is the ability to quickly provide the customer with additional products outside the bundle of products normally provided

outside flexibility

[Video, week 9] _______ ______ can motivate the behaviors of athletes, students, and business partners

performance metrics

*[Chapter 4]* Warehouse Management Systems (WMS) support the activities needed to _____, _____, and _____ products to fill customer orders

pick; pack; ship

**[Chapter 4]** ________ ________ refers to the joint participation of companies in a supply chain in demand forecasting and inventory replenishment scheduling.

planning synchronization

**[Chapter5]** _______ _______ measures a company or a supply chain's ability to design, build, and deliver new products to serve its markets as those markets evolve over time.

product development

[Chapter 4] What is the most common way to store and organize data?

relational database technology

[Chapter 4] What are transportation scheduling systems?

similar to ERP and MES; they are less analytical and focused on daily operational issues

**[Chapter 4]** _________ is a highly useful tool for calculating the effect of possible variations

simulation

*[Chapter 4]* _________ ________ ________ allows people to create models of things such as a factory or a delivery vehicle or a whole supply chain network

simulation modeling software

*[Chapter 4]* By using ________, companies can make better decisions more quickly

simulations

*[Chapter 4]* ________ help managers to measure the consequences of different sources of uncertainty in the supply chain operation

simulators

**[Chapter 6]** What is the bullwhip effect?

small changes in product demand by the consumer at the front of the supply chain translate into wider and wider swings in demand experienced by companies further back in the supply chain

[Chapter 4] What do relational databases do?

store related groups of data in individual tables and provide for retrieval of data with the use of standard language called structured query language (QSL)

[Chapter 4] The purpose of ______ ______ is to minimize the total cost of the supply chain under capacity restraints

strategic design

[Chapter 4] What is a supply chain management (SCM) system?

suites of different supply chain applications that are tightly integrated with each other; it could be an integrated suite that contains advanced planning and scheduling, transportation planning, demand planning, and inventory planning.

[Chapter 5] A market is characterized by its combination of _____ and ______

supply, demand

**[Chapter 4]** What is Customer Relationship Management (CRM)?

systems of this type automate many of the tasks related to servicing existing customers and finding new customers

[Chapter 4] What are transportation planning ststems?

systems that calculate what quantity of materials should be brought to what locations at what time

*[Chapter 4]* Which system keeps track of inventory levels and stocking locations within a warehouse?

warehouse management systems (WMS)

[Chapter 4] What are inventory management systems?

systems that support activities that that are part of inventory management; these activities could be tracking demand patterns, monitoring inventory levels, etc.

[Video, week 9] According to the narrator, what is the best KPI?

the probability of a perfect order

**[Chapter 4]** What is simulation modeling?

the process of creating and analyzing a digital prototype of a physical model to predict its performance in the real world

**[Chapter 6]** What is product rationing? How to respond to it?

the response that manufacturers take when they are faced with more demand than they can meet; to respond, manufacturers can base their rationing decisions on the historical ordering patterns of a given distributor or retailer and not on their present order sizes

**[Chapter 5]** What is cash-to-cash cycle time?

the time it takes from when a company pays its suppliers for materials to when it gets paid by its customers

**[Chapter 6]** What is a boom-to-bust business cycle?

the upward and downward movement of product around its long-term growth trend; it affects industries that serve developing and growth markets where demand can suddenly grow; essentially a large-scale bullwhip effect

[Chapter 4] What is Sales Force Automation (SFA)?

these systems allow a company to better coordinate and monitor the activities of its sales force

**[Chapter 4]** What are warehouse management systems?

these systems support daily warehouse operations; they provide capabilities to efficiently run the ongoing operations of a warehouse

[Chapter 4] What is demand planning?

these systems use special techniques and algorithms to help a company forecast their demand; the systems use data to predict future sales

*[Chapter 4]* What is the main purpose of ERP modules?

to carry out and monitor daily transactions

[Video, week 10] What is the objective of the beer game?

to minimize the amount of beer that any player is holding at one time

[Chapter 5] _______ _______ is the ability of a company or supply chain to respond quickly to additional order volume for the products it carries

upside flexibility