SCMT 364 Chapter 1

Receivable Turnover =

(Annual Credit Sales) / (Average Account Receivable)

Inventory Turnover =

(Cost of Goods Sold) / (Average Inventory Value)

Asset Turnover =

(Revenue[or Sales]) / (Total Assets)

Current issues in operations management include:

*Coordinating mutually supportive but separate organizations *Management of global supplier, production and distribution networks *Managing customer touch points (all 3)

Differences between products and services are: 1. Product innovations can be patented but service innovations cannot be patented. 2. Service may be inventoried while product cannot be. 3. Product is useful while service may not be.

1 and 2 only

Operations and SC processes generally involve: 1. Planning and sourcing 2. Championing by top management 3. Making, delivering and returning 4. Operational planning and control

1 and 3 only

There are __ supply chain processes

5

Triple bottom line

A business strategy that includes social, economic, and environmental criteria.

The most appropriate definition for Product-Service bundling is:

Building service activities into product offerings to create additional value

Careers in operations and supply chain management include all of the following except:

Business analyst

The radical change paradigm, introduced by Michael Hammer and major consulting firms, is referred to as:

Business process re engineering

Efficiency

Doing something at the lowest possible cost.

Effectiveness

Doing the things that will create the most value for the customer.

___________ means doing the right things to create the most benefit for the company.

Effectiveness

Process

One or more activities that transform inputs into outputs.

The process that is not a part of the supply chain process is:

Servicing

Efficiently scheduling material and labor is an example of ______ decisions.

Tactical

Sustainability

The ability to meet current resource needs without compromising the ability of future generations to meet their needs.

Mass customization

The ability to produce a unique product exactly to a particular customer's requirements.

Value

The attractiveness of a product relative to its price.

Operations and supply chain management (OSCM)

The design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

Business analytics

The use of current business data to solve business problems using mathematical analysis.

Product-service bundling

When a firm builds service activities into its product offerings to create additional value for the customer.

Bench-marking

When one company studies the processes of another company to identify best practices.

Goods-Service continuum is best described as follows:

pure goods - core goods - core service - pure service