SCM 300 Final Exam Review

(T/F) A micro-franchise is a type of franchising concept which is seen as a good way for economically disadvantaged people to make a living.

True

(T/F) In general, performance measurement systems vary substantially from company to company.

True

(T/F) The optimal capacity utilization for an organization would be 100%.

False

(T/F) The order fulfillment process relies on forecasting and techniques used to smooth demand variabilities when disparities exist between demand and supply.

False

(T/F) Themed restaurants such as the ESPN zone (sport theme), Rainforest Cafe (jungle theme), and Chuck E. Cheese (kids theme) are all examples of Entertainment facilities.

False

(T/F) Too much information visibility along a supply chain is frequently cited as a common process integration problem.

False

(T/F) External process integration can be an extremely challenging task because it can potentially cause a change in one or more organizational cultures.

True

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

True

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

True

(T/F) Internal process integration between departments is considered the necessary foundation for successful external integration between trading partners.

True

(T/F) Service firms differ from manufacturers in the labor content contained in the end products.

True

First-come-first-served is an example of a(n): a. queue discipline b. unfair waiting policy c. channel queuing arrangement d. single-phase queue design

queue discipline

Which of the following is an obstacle to successful process integration? a. Passive forecasting b. Stockpiling c. Lack of knowledge d. Transaction costs

Lack of knowledge

Higher inventories, higher costs, longer response times, and lost customers can result from: a. Lack of trust between trading partners b. Lack of supply chain visibility c. Lack of vendor managed inventories d. Reactive initiatives

Lack of supply chain visibility

A basic strategy for managing capacity is: a. Differentiation strategy b. Focus strategy c. Level demand strategy d. Queue management strategy

Level demand strategy

(T/F) Typically, quick recovery from service failures can keep customers loyal and coming back.

True

(T/F) In most services, customers are not involved in the production of the service itself.

False

(T/F) Initially, internal and external collaboration create quality, cost, delivery timing, and other customer service problems that are detrimental to supply chains.

False

Countries that shift from a manufacturing-oriented economy to a service-oriented economy sometimes see their productivity growth decline overtime. This phenomenon is called: a. Baumol's Disease b. Deming's Decline c. State Utility d. Service Shrink

Baumol's Disease

Offering only every-day-low-pricing will help to eliminate which of the following obstacles to process integration? a. Risk Pooling b. Lack of trust c. Shortage Gaming d. Bullwhip effect

Bullwhip effect

(T/F) Lengthening supply chains generally has been associated with lower levels of supply risk.

False

Capacity utilization: a. Capacity x Actual customers served per period b. Capacity / Actual customers served per period c. Actual customers served per period x Capacity. d. Actual customers served per period / Capacity

Capacity / Actual customers served per period

(T/F) Managers use a balking technique to manage customers' perceived waiting times.

False

A customer approaches a firm with a question regarding her order status and shipping date; the information the firm provides is an example of which of the eight key supply chain business processes? a. Supply management process b. Demand management process c. Customer service management process d. Order fulfillment process

Customer service management process

(T/F) A retailer with two checkout stands is an example of a single-channel, multiple-phase queuing system.

False

(T/F) According to the text, good queue management consists of managing only what the customer perceives to be as the waiting time.

False

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

False

(T/F) When firms acknowledge receipt of an order via telephone, mail or e-mail, this is an example of starting the service.

True

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

True

According to the text, which of the following is a service strategy characterized by the idea that a service can serve a narrow target market better than a broad market? a. Differentiation strategy b. Demand strategy c. Focus strategy d. Transitional strategy

Focus strategy

The order in which customers are served is called the: a. Input order b. Queue discipline c. Output arrangement d. Service characteristic

Output arrangement.

The coordination and sharing of information and resources to jointly manage a process is referred to as: a. Differentiation b. Process integration c. Simplification d. Reverse logistics

Process integration

Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity? a. Cross-training and sharing employees b. Utilizing technological tools like computers and automated systems c. Utilizing fewer facilitating products d. Using customers to provide services

Utilizing fewer facilitating products.

Having connectivity and visibility to all partners in a firm's supply chain can be accomplished through the use of: a. Legacy MRP systems b. Score-carding systems c. Cloud-based communication systems d. Mobile marketing systems

Cloud-based communication systems

Which of the following develops objectives and policies to adequately respond to product and delivery failures and complaints, and to utilize the most effective means of communication? a. Collaborative Management b. Customer Relationship Management c. Customer Service Management d. Demand Management

Collaborative Management

What is defined as the likelihood of an internal or external event that disrupts supply chain operations? a. Shortage gaming b. Cyber attacks c. Supply chain risk d. Bullwhip effect

Supply chain risk

(T/F) A primary enabler of integration is the firm's ERP system.

True

(T/F) Amazon.com is an example of a firm which uses the Pure Internet Distribution Strategy.

True

(T/F) Information visibility is critical for importers, shippers, and logistics providers.

True

(T/F) An integration problem known as collaborative education can result in less successful supply chains and lower partner returns.

False

(T/F) Cloud systems provide less visibility for global supply chains.

False

(T/F) Financial performance measures can adequately capture a firm's ability to excel in various process areas.

False

(T/F) Frequent demand forecast updating has been shown to reduce the bullwhip effect.

False

(T/F) Implementing the SCOR model is a simple task.

False

(T/F) Manufacturing flow management is the key process that helps balance customer demand and the firm's output capabilities.

False

(T/F) Pure services, offer few, if any tangible products to customers.

True

(T/F) Traditional cost-based performance measures are used today by potential investors and shareholders to make stock transaction decisions and forms the basis for many managers' performance bonuses

True

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

True

(T/F) Using the SCOR software, any supply chain can be configured, evaluated, and benchmarked against best practices.

True

(T/F) When a level demand strategy is used for managing capacity, the firm is required to use a demand management or queue management tactic to deal with excess customers.

True

(T/F) The five dimensions of service quality include: reliability, durability, performance, aesthetics, and availability.

False

(T/F) The goal of an efficient queuing system is that customers never have to wait in a queue.

False

(T/F) Traditional performance measures tend to be long-term oriented.

False

Which of the following is a difference between goods and services? a. Goods are often unique b. Services cannot be inventoried c. Goods have high customer-service interaction. d. All of the above.

All of the above.

Which of the following is important for external process integration to be successful? a. Successful internal process integration b. Willing and competent trading partners c. Compatible information systems d. All of these are correct

All of these are correct

Which of the following would be considered a Supply Chain Risk Management activity? a. Increasing safety stock b. Diversifying the supply base c. Developing a formal risk management program d. All of these are correct

All of these are correct

Supplier relationship management personnel routinely communicate with: a. Production personnel to obtain feedback on supplier and purchased item performance. b. Marketing personnel for customer feedback. c. Suppliers for new product development and performance feedback. d. All of these are correct.

All of these are correct.

The dimension of service quality concerned with using knowledgeable, competent, courteous employees who convey trust and confidence to customers is referred to as: a. Reliability b. Responsiveness c. Reasonability d. Assurance

Assurance

(T/F) When customer expectations are met or exceeded, the service is deemed to posses low quality.

False

(T/F) When demand exceeds a supplier's finished coods available, a supplier may allocate product in proportion to what buyers ordered. This rationing often results in order batching by the suppliers' customers.

False

Building, maintaining, and strengthening beneficial relationships with suppliers and customers is accomplished through the use of: a. Data warehouses b. External process integration c. Expediting d. All of these are correct

External process integration

(T/F) In today's world to meet customer service requirements, the strategy is for trading partners to load their retail shelves, warehouses, and factories with large quantities of finished goods, while hiring lots of service personnel.

False

(T/F) One important step in the supply chain integration model is for a firm to extend process integration to 4th tier supply chain partners and beyond.

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) Passive RFID Tags are more expensive than active RFID tags, which have been used for healthcare and military applications.

False

(T/F) Profit, revenue, and cost related performance metrics are useful in moving a company in the right direction, and often give an indication of the underlying causes of the financial performance.

False

(T/F) Service organizations need to consider the fact that the services they provide are NOT consumed by the immediate customer, rather, services are typically passed on to customers farther down a distribution channel.

False

(T/F) Service response logistics is the management and coordination of the organization's activities that occur after the service has been performed.

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

Layout strategies help firms maximize all of the following EXCEPT: a. Service efficiencies b. Four Ms c. Customer service d. Server productivity

Four Ms

The difference between customer expectations and customer perceptions of what was actually received during the service encounter is referred to as service quality a. Blips b. Bloops c. Breakeven point d. Gaps

Gaps

Which of the following is NOT a technique for managing customers' perceived waiting times: a. Grouping customers b. Hiding the wait time c. Keeping customers occupied d. Starting the service quickly

Hiding the wait time.

All of the following are considerations used in designing service layouts EXCEPT: a. Reduction of time to restock b. Impulse purchasing c. Speed up customer throughput d. Ease of access to parking lot

Impulse purchasing

A basic strategy for managing capacity when the firm utilizes a constant amount of capacity regardless of demand variations is: a. Level demand strategy b. Differentiation demand strategy c. Chase demand strategy d. Baumol's demand strategy

Level demand strategy

Which of the following is a contributor to the bullwhip effect? a. The inability to easily share or retrieve trading partner information in real time b. Acting only in regard to a single department within a firm c. Making large orders for goods from suppliers on an infrequent basis d. Vendor managed inventories

Making large orders for goods from suppliers on an infrequent basis.

Which of the following is an example of a person that would be considered to provide a Pure Service? a. Attorney/Lawyer b. Management Consultant c. Musical Entertainer d. All of the above

Management Consultant

Which of the following statement is false? a. Services cannot be inventoried. b. Service have high customer-service interaction. c. Both A & B. d. None of the above.

None of the above.

When salespeople need to fill end-of-quarter or end-of-year sales quotas, they might use _______, which creates greater use of safety stock causing the bullwhip effect. a. Stockpiling b. Balloon ordering c. Order fulfillment d. Order batching which creates

Order fulfillment

Which of the following has made external integration more difficult to achieve? a. Problems with internal integration efforts b. Identifying key trading partners c. Lack of software applications to coordinate the effort d. Increased number of franchise operators

Problems with internal integration efforts

Which of the following is NOT one of the Eight Key Supply Chain Business Processes? a. Order Fulfillment b. Customer Relationship Management c. Returns Management d. Purchasing Management

Purchasing Management

According to the text, all of the following are considered key supply chain business processes EXCEPT: a. Manufacturing flow management process b. Purchasing management process c. Supplier relationship management process d. Product development and commercialization

Purchasing management process

All of the following are included in the five dimensions of service quality EXCEPT: a. Reliability b. Responsiveness c. Reasonability d. Assurance

Reasonability

Substance disposal and recycling are part of which supply chain business process? a. Customer relationship management process b. Returns management c. Customer service management process d. Product development and commercialization process

Returns management

The four primary activities of concern in service response logistics are the management of: a. Distribution channels, service quality, reputation and waiting times. b. Service capacity, waiting times, distribution channels and service quality. c. Labor standards, distribution channels, waiting times and service quality d. Service capacity, visual workplace, waiting times and distribution channels

Service capacity, waiting times, distribution channels and service quality.

As capacity utilization approaches 1.0, which of the following tends to happen? a. Services become more congested b. Service times decrease c. Wait times decrease d. Perceived quality of service improves

Services become more congested.

To overcome ______________, internal functional decisions must be made while considering the impact on the firm's overall profits and those of the supply chain members. a. Silo mentalities b. Lack of supplier trust c. Forward integration problems d. All of these are correct

Silo mentalities

Using the cheapest suppliers, paying little attention to the needs of customers, and assigning few resources to new goods and services designs can be referred to as: a. Silo mentality b. Balking c. Shortage gaming d. Cross-selling

Silo metality

(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) An office setting could be an example of a departmental layout that maximizes closeness desirability.

True

(T/F) As a firm integrates processes among second- and third-tier suppliers and customers, trading partner numbers increase dramatically, which can greatly complicate integration efforts.

True

(T/F) Customer satisfaction with the service depends not only on the ability of the firm to deliver what customers want, but on the customers' perceptions of the quality of service received

True

(T/F) Departmental layouts that reduce distances traveled are designed to reduce the travel times of customers and servers when moving from one area to another.

True

(T/F) Service capacity is the number of customers per day the firm's service delivery systems are designed to serve.

True

(T/F) 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

(T/F) Supply chain security management is concerned with reducing the risk and impacts of intentionally created disruptions in supply chain operations.

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 is widely used in helping organizations track performance and identify areas of weakness.

True

(T/F) The development of functional silos within an organization is considered a stumbling block to achieving successful supply chain process integration.

True

(T/F) The ultimate goal in supply chain management is to create value for the services and products provided to end customers, which, in turn, will benefit the firms in the supply chain network.

True

(T/F) When demand exceeds capacity, a typical management technique to cross-train workers.

True