SCM Exam 3 Prep

SCOR model Separates supply chain operations into six process categories:

1. Plan 2. Source 3. Make 4. Deliver 5. Return 6. Enable PSMDRE

Location strategy is important in that it can provide barriers to entry, and competitive positioning, as well as generating additional demand.

True

One of the primary steps in developing world-class performance measures is to identify the firm's strategic objectives.

True

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

False

Dominant companies within a supply chain can use their buying power to: a. Leverage demands for supplier conformance to its supply chain requirements b. Eliminate the need for performance metrics c. Increase organizational productivity d. Motivate customers to change their buying preferences

a. Leverage demands for supplier conformance to its supply chain requirements

Which of the following is one of the most basic and important activities of CRM? a. Segmenting customers b. Cross-selling customers c. Increasing churn d. Finding customers

a. Segmenting customers

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 the above

b. External process integration

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

b. Queue discipline

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

c. Lack of trust

Influencing and increasing the capabilities of a firms own employees, as well as those of their trading partners, will help to eliminate which of the following obstacles to process integration? a. Risk Pooling b. Lack of trust c. Shortage Gaming d. Lack of Knowledge

c. Shortage Gaming

When utilizing performance standards, the difference between the standard and the actual performance is called the: a. Productivity Gap b. Organizational Variance c. Certified Variance d. Performance Variance

d. Performance Variance

Server Factory:

Definition: A facility primarily set up to leverage government incentives, minimize exchange risk, avoid tariff barriers, and reduce taxes and logistics costs. Key Characteristics: Government incentives, risk minimization; Unique Feature: Focus on leveraging external factors for efficiency.

Source Factory:

Definition: A facility with a broader strategic role, involving plant management in supplier selection and production planning. Key Characteristics: Strategic role, active involvement; Unique Feature: Key role in supplier selection and strategic planning.

Offshore Factory:

Definition: A manufacturing facility established in a low-cost location with minimal investment in technology and managerial resources. Key Characteristics: Low-cost production, minimal investment; Unique Feature: Primarily focused on cost efficiency.

Lead Factory:

Definition: The source of product and process innovation, serving as a competitive advantage for the entire organization. Key Characteristics: Innovation hub, competitive advantage; Unique Feature: Central role in driving innovation for the entire organization.

Bull Whip Effect

Distortion of information about the demand for a product as it passes from one entity to the next across the supply chain

Failing to see the big picture and acting only in regard to single firm in the supply chain can be referred to as: a. Silo mentality b. Balking c. Shortage gaming d. Cross-selling

a. Silo mentality

Which of the following customer service elements can be classified as an example of post transaction elements? a. Salesperson politeness b. Customer complaint resolution c. Customer service policies d. The company's choice of organizational structure

b. Customer complaint resolution

The element of a CRM program involved with the use of data-mining software and customer behavior analytics is: a. Segmenting customers b. Predicting customer behaviors c. Customer value determination d. Customer preference determination

b. Predicating customer behaviors

Coordination and sharing of information and resources to jointly manage a process is referred to as :a. Rationing b. Process Integration c. Gaming d EDLP

b. Process Integration

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

d. All of the above

Why do so many CRM programs fail? a. They are so expensive that it is hard to recover the investment b. They take the firm away from concentrating on their key suppliers c. Because of incompatible information and communication systems d. Firms concentrate more on the CRM software instead of taking care of customers

d. Firms concentrate more on the CRM software instead of taking care of customers

Seven R's to satisfy a Perfect Order

having the right product, in the right quantity, in the right condition, at the right place, at the right time, for the right customer, at the right cost

Outpost Factory:

Definition: A facility established in a location with advanced suppliers, competitors, research facilities, and knowledge centers to access the most current information on materials, components, technologies, and products. Key Characteristics: Access to advanced resources, competitors; Unique Feature: Positioned strategically for access to the latest industry information.

The development of functional silos within an organization is considered a key component to achieving successful supply chain process integration.

False

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

a. Baumol's Disease

The following facility location technique uses fixed and variable costs to analyze potential locations: a. Break-even model b. Business cluster analysis model c. Weighted-factor rating model d. Mean absolute deviation model

a. Break-even model

Traditional performance measures include: a. Cost and Revenue b. SCOR and DCOR c. Profit and Perfect Order Fulfillment d. All of the above

a. Cost and Revenue

Companies work very hard to reduce the number of customers who don't return. This customer defection is often referred to as: a. Customer churn b. Clickstream defection c. Balking d. Revenue Exodus

a. Customer churn

Choosing to manufacture in China to sell to Chinese customers would likely involve which location decision consideration? a. Proximity to markets b. Environmental issues c. Land availability and cost d. Utility availability and cost

a. Proximity to markets

The average transaction at a single channel, single phase automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes. On average, what is the server utilization? (Choose the closest answer.)a. 0.167 b. 0.75 c. 0.125 d. 1.33

b. 0.75

Once a decision on locating a facility is made, it is ________ to move or shut down that facility. a. Easy b. Costly c. Cheap d. None of the above

b. Costly

Which of the following are required elements of an effective CRM initiative? a. Sending out promotional materials via e-mails and traditional mail to a large random group of a potential customers b. Cross-selling customers after an initial purchase c. Preserving a traditional sales force that communicates with the supply-chain members d. All of these

b. Cross-selling customers after an initial purchase

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

b. Hiding the wait time

The Wal-Mart effect is best described by which of the following? a. As large retailers locate in communities, the put smaller companies our of business b. Information technologies have allowed large retailers to maintain good productivity growth rates c. Wal-Mart's use of supplier capacity has made it difficult for other companies to find Suppliers d. The growth of large retailers has had a negative impact on the environment

b. Information technologies have allowed large retailers to maintain good productivity growth rates

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

b. Lack of supply chain visibility

Your company allows customers to "opt-out" of receiving email advertisements. This is referred to as :a. Event-based marketing b. Permission marketing c. Customer churn d. Customer preference marketing

b. Permission marketing

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? a. Offshore factory b. Server factory c. Source factory d. Outpost factory

b. Server factory

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

b. Services cannot be inventoried

According to the text, when the location of a factory is dictated by low production costs, fairly developed infrastructure and availability of skilled workers the factory is referred to as a(n): a. Offshore factory b. Source factory c. Server factory d. Lead factory

b. Source factory

The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on: a. Southeast Asian Nations b. Tariffs c. Innovation d. Relationship marketing

b. Tariffs

In well-managed supply chains, performance measurement systems become much larger and are complicated by: a. Push supply chains b. Varied relationships, trust and interactions c. Demand-driven supply networks d. SCOR supply chains

b. Varied relationships, trust and interactions

Once the supply chain partner requirements are understood, supply chain members can then: a. Develop an appropriate information technology system b. Develop their organizational skill sets c. Audit their capabilities to see if they are consistent with the needs of the end customers d. Implement a quality development program for the employees

c. Audit their capabilities to see if they are consistent with the needs of the end customers

Which of the following is a critical issue in sustainable development? a. Labor and legal problems b. Countertrade c. Climate change d. Supply base optimization

c. Climate change

Supply 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 the above

d. All of the above

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 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

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

d. Ease of access to parking lot

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. Warehouse Management

d. Warehouse Management

Contributor Factory:

Definition: A facility with a significant strategic role, involved in product development, engineering, production planning, and critical procurement decisions. Key Characteristics: Strategic role, involvement in critical decisions; Unique Feature: Active participation in product development and critical procurement.