SCM Final Exam

14.5 - Which of the following shows how many units of inventory can be used to fulfill a new customer order?

"Available to Promise"

2 - T/F: It is more profitable to introduce products six months late, but within budget than to spend extra to get products to market on time.

False

2 - T/F: The term hidden plant was coined to describe the fact that 15-40% of a firm's costs are incurred to deliver products within 48 hours.

False

2 - T/F: You should treat all customers equally. This is simply fair practice and good business.

False

2.3 - T/F: In the Internet age, delivery has been called the most vital factor to long-term competitive success.

False

2.4 - T/F: Consistent repeat business is a clear and unambiguous signal that a customer is loyal.

False

2.4 - T/F: If you deliver to promise, exceed industry standards, and meet customers' a priori expectations, you will definitely impress the customer and entice repeat purchase.

False

2.5 - T/F: To really execute a customer satisfaction strategy, you need to find out how customers both perceive and measure your firm's performance.

False

11.8 - What type of costs might still remain after you outsource an item?

Fixed overhead costs

10.3 - Having good data is critical to building accurate forecasts. But, data availability isn't sufficient. You need to choose the right _______________ to make the most of your data.

Forecasting technique

1.4 - What are examples of Control Decisions?

Forecasting, Inventory Control, Scheduling, and Quality Control

1 - Which of the following innovators/management gurus was responsible for the scientific method?

Frederick Taylor

12.6 - What do Enterprise resource planning (ERP) systems enable you to do?

Get every decision maker across your organization on the same page—using the same data to make decisions.

11 - Which of the following is one of the seven rights of purchasing?

Getting the right material from the right supplier

15.5 - A warehouse management system:

Handles all of your day-to-day transactions and is connected with your ERP system

14.5 - Which of the following is used to compute "Projected On-hand Inventory"?

Higher of "Forecast" or "Customer Orders"

11.6 - Which of the following is not a benefit of early supplier involvement is:

Higher profit margin

16.3 - In SCOM, design decisions concern...

How you use your assets, especially physical assets like equipment and storefronts

15.7 - As the value of a product increases, which of the following is also true from a logistics perspective?

Inventory costs will increase

11.5 - What is the Bid/Negotiate and Contract step of the Strategic Sourcing Execution?

Involves getting the supplier on contract, ready and able to perform.

15 - Key rules in day-to-day warehouse operations include ______.

Minimize wasted space and minimize unnecessary movement

11.4 - What are routine items?

Most of your buys are routine. Office supplies, like the paper clips mentioned above, are an excellent example of a routine item (sometimes called generic) spend item.

15.3 - Logistics creates value through what?

Movement, storage, and processing

15.3 - What are the key activities in logistics?

Movement, storage, and processing

14.3 - ____________ tells you when to produce more of an input.

Requirements Schedules

11.8 - Which of the following statements is correct?

TCO includes landed costs

15.3- Define logistics

That part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.

10.3 - A forecast error is

The difference between what you predict and what actually happens.

12 - T/F: With level strategy, you enjoy workforce stability, but suffer from varying carrying costs.

True

12.3- T/F: Focus on the customer underlies the execution of an organization's strategy.

True

12.4 - T/F: Aggregate planning helps you align your production capacity to market demand.

True

12.5 - T/F: In aggregate planning, you need to consider how your strategy will affect other key dimensions of performance, not only costs.

True

12.5 - T/F: Members of a product family all use the same set of production resources.

True

12.5 - T/F: You measure the capacity of your production process based on the process bottleneck.

True

12.6 - T/F: Keeping the old systems alive in parallel during the transition to a new ERP system can help mitigate the downsides of unpredictability during implementation.

True

12.6 - T/F: Simply applying ERP over existing processes is one of the challenges in implementing an ERP system.

True

15.3 - T/F: Logistics can be a source of strategic advantage

True

15.5 - T/F: Warehousing allows for economies of scale in production

True

15.7 - T/F: Amazon's secret to beating Walmart in market share is its superior logistics service.

True

15.7 - T/F: Improving service always costs more money

True

15.8 - T/F: Breakbulk warehouses receive large-volume truckload shipments that are destined for several customers.

True

15.8 - T/F: Using a breakbulk facility usually reduces shipping time versus LTL direct to customer.

True

1 - For which of the following do you not use from a forecast?

Technology Adoption

15.3 - The biggest transportation mode in terms of spending is:

Trucking

1 - T/F: In facility layout situations, where you position equipment defines the flow of materials and the number of times you must handle each item. The ideal layout minimizes movement and handling, creating a simple and smooth flow of materials through the facility.

True

1 - T/F: Proactive (and effective) scanning requires that you challenge your colleagues' thinking—and invite them to push your own thinking. Otherwise, you are likely to miss out on creative, but robust interpretations of the data.

True

1 - T/F: Tangibility of Offerings refers to the fact that you can't hold a service in your hand—i.e., you can only experience it as you consume it.

True

10 - T/F: If you want to catch new trends quickly in your exponential smoothing forecast, your alpha should be larger than .5.

True

10 - T/F: The main goal of the S&OP business review meeting is to align plans and decisions with overall business goals.

True

10.3 - T/F: Almost every decision you make in business is based on a forecast.

True

11 - T/F: The most likely type of item to bid on during strategic sourcing is leverage items.

True

11.3 - T/F: Purchasing savings can have a huge impact on the firm's profit leverage.

True

11.4 - T/F: A routine item can suddenly become a bottleneck item.

True

11.7 - T/F: Multi-criteria analysis is a tool that helps you compare "distinctly different" options.

True

11.7 - T/F: To calculate results you multiply the score for each criterion by the associated weight and add up the results.

True

12 - T/F: Suppose you are a production manager at Zara's manufacturing plant. It would make more sense to put men's t-shirt and women's t-shirt in a product family than to put socks and shoes in a product family.

True

12.6 - T/F: The center of gravity model requires that you place locations on a grid coordinate system.

True

14.4 - T/F: An ERP system is defined as "a single database surrounded by application programs that take data from the database and either conduct analysis or collect additional data for the firm."

True

14.4 - T/F: The popularity of MRP systems has increased as computing power has increased, improving MRP performance.

True

15 - T/F: Breakbulk is the process of unloading large shipments and breaking down the contents to go into smaller shipments.

True

15 - T/F: Companies are beginning to look at logistics as a potential source of competitive advantage.

True

15 - T/F: Most product must be shipped via truck on the front and back ends of the shipment, creating an intermodal shipment.

True

15 - T/F: The reduction in emissions (and fuel use) from slow steaming is significantly greater than the reduction in speed.

True

16.4 - T/F: Information technology sharing and processing is at the heart of all of the significant game-changing SCOM technologies.

True

2 - T/F: Customers should really be at the center of your decision-making world because they are the only entity that puts money into a supply chain.

True

2 - T/F: Satisfied customers are six times more likely to defect than delighted customers.

True

2.5 - T/F: ABC classification relies on the Pareto principle. The Pareto principle observes that 80% of your customers drive 20% of the benefits.

True

2.3 - What is place utility?

primarily the charge of supply chain managers who assure that products and services are where customers expect to find them—when they are needed.

10.4 - In order for a company to win the "first moment of truth" it needs to have the right _______ at the right _______ at the right _______ at the lowest possible _______.

product, place, time, cost

2.5 - Which of the following customer-service strategies focuses on meeting industry standards in key operational areas like product quality, productivity, product availability, on-time delivery, and service reliability?

Customer Service Strategy

1.6 - Which of the following are the two characteristics that distinguish service operations?

Customer contact and tangibility

1 - Which of the following is not a critical control decision?

Facility Location

1 - T/F: Companies have refined their forecasting techniques to the point that forecasts are almost always right. Big data has solved the forecasting dilemma.

False

1.3 - T/F: The industrial revolution marked the beginning of good operations management practice.

False

1.4 - T/F: Toyota's lean production system has documented that there is a single best or perfect way to make things.

False

1.6 - T/F: Although service industries account for about 80% of jobs in the U.S. economy, they only represent about 40% of the U.S. GDP.

False

10 - T/F: In the introduction, the text describes the dogfight between Airbus and Boeing. History show that forecasting gave Airbus the edge in air supremacy.

False

12.3 - T/F: The master production scheduling is updated every semester.

False

12.3- T/F: The aggregate planning contains critical information to guide lower-level scheduling and is the starting point of business planning.

False

12.4 - T/F: Backordering is a good option to match supply and demand because it has no trade-offs.

False

12.4 - T/F: For seasonal products and services, the best option to align supply and demand is to build inventory.

False

12.5 - T/F: You overhear your colleagues in the production area say that, for next month, they need to produce 1,000 products of model A in the color red and 500 in the color blue, and 500 products model B in the color red and another 500 in the color green. Therefore, we can conclude that they are talking about the aggregate planning for next month.

False

12.6 - T/F: An ERP system is a set of distributed databases surrounded by application programs that take data from the database and either conduct analysis or collect additional data for the firm.

False

14.4 - T/F: MRP was a hit from the beginning. Companies quickly and successfully adopted MRP systems.

False

14.7 - T/F: The period order quantity (POQ) lot-sizing rule implies that you order the same amount of inventory every time you place an order.

False

14.7 - T/F: To select an appropriate lot-sizing rule you should compare the annual carrying costs associated with each lot-sizing rule you are considering.

False

15 - T/F: A warehouse management system is a standard system designed to support cross-docking.

False

15 - T/F: Freight forwarders arrange transportation only by ocean shipping.

False

15.4 - T/F: Amazon has shipping all figured out.

False

15.6 - T/F: Asset-based 3PLs are brokers or intermediaries who utilize the assets of others to provide services

False

15.7 - T/F: The challenge as a logistician is to evaluate and meet customer's needs at the lowest cost.

False

15.8 - T/F: If a breakbulk strategy makes sense, you need to identify the right location to place the breakbulk facility to maximize total costs.

False

2 - T/F: Customer relationship management systems (CRM) can help you develop customer profiles, which is something completely distinct from and unrelated to customer segmentation.

False

1.4 - Which of the following is not a critical design decision?

Inventory Management

15 - As the value of a product increases, which of the following logistics costs also increase?

Inventory costs and transportation costs

2.5 - What is the 80/20 rule?

It observes that 80% of your sales are driven by your most important 20% of customers.

2 - According to relationship-marketing pundits, how much more does it cost to make sales to a new customer than to an existing customer?

More than 500%

15.8 - You currently ship 6 LTL shipments (each weighs about 4,500 pounds) into the region at $400 per shipment. You identify a third-party warehouse operation that is able to unload (and reload) a full truckload for $300. You check with your carrier and discover that the truckload from Las Angeles to Las Vegas is $2,000. LTL delivery from the breakbulk facility to each customer is $150. Your question: Should you change your delivery model?

No

11.4 - What factors define complexity?

Supply Market Competitive Landscape, Risk, and Technological Uniqueness

1.3 - As an operations manager, your job is to create customer value.

True

1.5 - Which of the following activities play a key, but interconnected role in the value chain?

- Operations - Logistics - Marketing - Finance - Human Resources

11 - T/F: During the procure stage of sourcing execution, you start to take deliveries (buy) from the supplier.

True

1.5 - Which of the following accurately describes the bullwhip effect?

- The bullwhip effect argues that variations in supply magnify as they move downstream toward the customer. - The bullwhip effect argues that variations in demand magnify as they move upstream toward suppliers. - The bullwhip effect argues that every company needs to hold ample just-in-case inventory. - The bullwhip effect argues that it is better to stock out than to hold inventory.

1.5 - Which of the following accurately describe a supply chain map?

- To read a supply chain map, you start with the focal firm. - Suppliers are mapped on the left side of the focal firm. - Customers are depicted on the right side of the focal firm. - Suppliers and customers are organized in columns called tiers.

11.3 - What are the seven rights of purchasing?

- obtaining the right material - in the right quantity - with the right service - for delivery to the right place - at the right time - from the right supplier - at the right total cost

12.3 - The strategic business plan answers what questions?

1. Who are your customers? 2. What are their needs? 3. How us your company going to meet their needs better than anyone else?

15 - Regarding fast fashion _____.

-85% of old clothing goes into landfill -Clothing that is recycled is done mainly in developing countries, like India and Africa -It has caused rapid growth in global clothing recycling

15 - Click and collect:

-Accounts for most on-line sales in the U.S. -Is decreasing in popularity -Reduces last-mile costs and invites traffic into stores

1.3 - Which of the following hobbies illustrates a transformation process?

-Art -Cooking -Do-it-yourself projects

11.6 - In its relationship with Gordon Foods, Bob Evans did which of the following?

-Consolidated to a single source -Put together ideation and innovation teams to identify ways of working together -Gave the drivers access to the restaurants at night for delivery when no one else was there.

1.4 - What are the four production-process types?

-Hand Crafted -Assembly Line -Fixed Location -Customer Engagement

10.4 - Which of the following are discussed during the S&OP supply review meeting?

-How to prevent stockouts -Manufacturing capacity -Supply chain inventory -Logistics/DC capacity

2.3 - By changing the manufacturing environment it is possible to achieve higher levels of performance across all value dimensions. Which of the following is a critical aspect of improving the environment?

-Increase process visibility -Better share information -Build a flexible workforce

15 - Cross-docking:

-Is also known as a flow-through warehouse -Moves goods in and assorts shipments and sends them back out with no (or very little) storage -Was perfected by Walmart

11.4 - The strategic sourcing matrix:

-Is used to segment purchases -Is widely used in practice -Considers the importance of the category and the complexity of the market to classify purchases

11 - A bottleneck item (on the strategic sourcing matrix):

-Is usually a situation where the supplier has more power than the buyer -Are also known as unique items -Are usually relatively small areas of spending

11 - General Motors got in trouble with one of its suppliers of trim because:

-It increased volumes so much that the supplier was no longer profitable -It allowed its supplier to become too dependent upon it -The supplier filed bankruptcy and ceased operations

11.8 - The make or buy decision analysis tells us:

-It is not that important to the company's success to outsource items that are not strategic to our success -Do we have the assets to dedicate to improving the process. -Before outsourcing a strategic item, we should seriously consider our own ability to successfully make that item

10 - Which of the following are common causes for stockouts?

-Poor forecast accuracy; i.e., underestimate demand -Shipping issues that delay product arrival -Parts shortages that limit production

11.6 - Potential supplier contributions from ESI include:

-Providing feedback on feasibility of materials and processes -Suggesting alternatives -Improve cost -Improve lead time

10.4 - Which of the following are intangible benefits of collaborative planning?

-Quicker implementation of new ideas -More time for strategic planning -More trust -Better working relationship

15 - Third-party logistics providers might perform which of the following services?

-Repairs -Final assembly -Transportation

10.4 - To make CPFR successful, companies should engage in which of the following collaborative activities?

-Strategy & planning -Demand & supply management -Execution -Analysis

15.4 - Modal choice affects:

-The type of vehicle used to ship your product -Meeting customer transport expectations at the lowest cost -Transportation service characteristics -Costs of the transportation system

11.6 - What are the two supplier-relationships?

-Transactional Relationship -Strategic Alliance

15.6 - Third-party logistics providers may help with the following activities:

-Transportation planning -Electronic Data -Interchange -Visibility -Warehousing

11.8 - When considering outsourcing, you should evaluate which of the following factors?

-Whether the item is strategically important to you -How good you are at making the item versus how good suppliers are at making it -The total cost of ownership of the item compared to the cost to make the item internally

11.6 - As part of supplier integration:

-You provide feedback on technical feasibility -You share information on your plans with the supplier -You communicate seamlessly -You provide adequate capacity to support successful launch

10 - If you are using exponential smoothing, which of the following is true? ​

-Your smoothing factor helps you balance stability and responsiveness -A large alpha helps you chase trends more aggressively -A small alpha helps you take a wait-and-see approach

16.5 - What are the three core phases of the scenario-planning process?

1. Identify Drivers 2. Create Scenarios 3. Define the Issues

12.4 - What are the demand-focused options to match supply and demand?

1. Back orders 2. Price 3. Lead time 4. Counter-seasonal Products

12.4 - What are the 2 Aggregate Planning Options?

1. Capacity-Focused Tools 2. Demand-Focused Tools

12.4 - What are the 3 Aggregate Planning Strategies?

1. Chase Strategy 2. Level Strategy 3. Hybrid Strategy

2.5 - What is the three-step process of the "ABC" classification?

1. Classify Companies by sales 2. Modify Classifications Based on Strategic Issues 3. Periodically Re-evaluate

11.7 - What are the multi-criteria analysis' five essential steps?

1. Decide on Criteria 2. Set Weights 3. Define Scoring System 4. Evaluate Options 5. Calculate Results

10.3 - What are the steps of the forecasting process?

1. Decide what to forecast 2. Evaluate Your Data 3. Select the Forecasting Method 4. Create the Forecast 5. Assess Forecast Accuracy

12 - An ERP system could touch upon which of the following business functions?

1. Financial management 2. Customer relationship management 3. Cost, planning, and control 4. E-commerce 5. Business analytics & intelligence

2.3 - You need to manage operations to create or contribute to what four utilities?

1. Form utility 2. Possessions utility 3. Time utility 4. Place utility

10 - Simpler forecasting methods don't require _______________. Sophisticated models are _______________.

A lot of data, data intensive

12.4 - What are the capacity-focused options to match supply and demand?

1. Laying off 2. Inventory 3. Hours worked 4. Temporary Labor

12 - When choosing between a chase strategy and a level strategy, you also need to consider which of the following when evaluating the strategy's performance?

1. The hard to quantify stock-out costs 2. Employee morale related to layoffs 3. Production quality issues due to over-time

11 - T/F: As a purchasing manager, you should spend the same amount of time and effort on each purchasing decision.

False

15 - What are the logistics costs in terms of percentage of GDP in the US currently (approximate)?

8%

1.5 - What is the bullwhip effect?

A distribution channel phenomenon. Simply put, as a company responds to shifts in customer demand, the initial response is amplified as one moves up the supply chain.

16.3 - Caring for the triple bottom-line by doing the right thing for the environment and the organization's stakeholders in an example of...

A good general business principle

11.4 - What are critical items?

A purchased input of relatively high importance / spend volume, and relatively high supply market complexity

11.4 - What are leverage items?

A purchased input of relatively high importance / spend volume, and relatively low supply market complexity

11.4 - What are bottleneck items?

A purchased input of relatively low importance / spend volume, and relatively high supply market complexity

12.3 - What is Manufacturing and Control?

A set of business processes that determine how you are gong to use resources to produce what your customers want when the want it

11.5 - What are the steps of the Strategic Sourcing Execution?

Analyze, Source, Bid/Negotiate & Contract, Procure, Reconcile & Pay

11 - T/F: During the source stage of strategic sourcing, you select the source.

False

1 - Which of the following is not a synthesis tool commonly used in scanning initiatives?

ABC Classification

2.4 - What are the two types of touch points?

Acquisition; Utilization

1.4 - Which of the following is not a process in the SCOR model/methodology?

Activate

12 - Questions like "Will we produce everything as needed?" and "Do we need to increase capacity over time?" are part of which of the following planning activity?

Aggregate Planning

12 - When KFC tested the market's reaction to the plant-based meat burgers at a franchise store in Atlanta, they sold out in 5 hours. If you were the CEO, you should consider using which of the following processes to communicate your constraints to the entire organization, so that your marketing team doesn't make promises to customers that your company can't deliver?

Aggregate Planning

12.3 - What has a planning horizon within 6-18 months?

Aggregate Planning

15 - The fastest transportation mode is _______.

Air

15.4 - The most polluting mode of transportation is:

Air

11.4 - Critical items (on the strategic sourcing matrix) are:

Also called strategic items

10.3 - Business forecasting is the process of using _____________, _____________, ____________, and experience to make predictions and respond to various business needs.

Analytics, data, insights

11.5 - Supplier segmentation using the strategic sourcing matrix occurs during which step of the strategic sourcing process?

Analyze

11.4 - Bottleneck buys:

Are difficult to manage because there are few options

15.6 - What is the difference between Non-asset-based 3PLs and asset-based 3PLs?

Asset-based 3PLs own their own trucks and warehouses. Non-asset-based 3PLs do not.

12.4 - What is a Chase Strategy?

Attempting to maintain output rates that match what the market demands by changing how you employ your workforce.

14.3 - Which of the following is the "recipe" in an MRP system?

Bill of Materials

15 - Logistics creates value through which of the following activities?

Both storage and processing

1 - Which of the following are ways to manage the fact that services are perishable—i.e., they cannot be inventoried?

Build capacity for peak demand and live with excess capacity during off-peak demand

10.3 - What is business forecasting?

Business Forecasting is the process of using analytics, data, insights, and experience to make predictions and respond to various business needs.

1.6 - Which of the following in not an option to manage the fact that services are perishable—i.e., they cannot be inventoried?

Buy a bigger warehouse

12.5 - How should you begin the aggregate planning process?

By selecting a group of products that share similar characteristics, manufacturing processes, and materials

12.5 - In the __________ strategy, you can manipulate _________ to match supply and demand.

Chase; workforce size

2.4 - _______________ processes influence how you deal with information; ________________ processes influence how you react to experiences.

Cognitive; Affective

10 - What does CPFR stand for?

Collaborative Planning, Forecasting, and Replenishment

11.8 - T/F: Outsourcing just means that you are buying something instead of making it.

False

1.3 - No matter how good you are, you can't afford to become ______.

Complacent

10.5 - What are some of the biggest challenges to effective order management?

Complexity, ownership and uncertainty

11.7 - Which of the following is not one of the four reasons to include a multi-criteria analysis in your toolkit?

Comprehensiveness

1.4 - What are Control Decisions?

Control decisions are the day-to-day decisions you make that define how you make things.

15.6 - What type of 3PL relationships are win-win, driven by scale, and characterized by joint planning and value-added services?

Cooperative

15 - Which of the following are win-win relationships?

Cooperative and strategic collaboration

15 - A common logistics trade-off is:

Cost of lost sales versus inventory cost

12.3 - What are the goals that drive strategy and execution?

Creating customers, satisfying their needs, and helping them succeed

11.6 - A strategic alliance is most likely in which spend category?

Critical

2.3 - What does DMAIC stand for?

Define, Measure, Analyze, Improve, and Control

1.5 - What are Design Decisions?

Design decisions determine where and how you deploy your assets—especially plant and equipment (i.e., your infrastructure)—to create value over the long haul.

12.3 - What is Materials Requirements Planning?

Determines the period-by-period plans for producing or buying all the components you need to produce the end items in your MPS

12 - T/F: According to the theory of constraints, the bottleneck is the resource with the highest level of capacity.

False

16.3 - The SCOM foundational principle "the customer rules" deals with...

Distinguishing between order winners and order qualifiers

11 - During the analyze stage of strategic sourcing, you:

Do your up-front homework to learn about the market, opportunities, and more

11.5 - What is the Source step of the Strategic Sourcing Execution?

During the source stage, you identify potential suppliers, consider the type of relationship you need to establish with selected suppliers, and understand the total costs associated with buying the item, including the underlying cost drivers.

14.7 - Which of the following is an approach companies use to establish a well-reasoned fixed order quantity (FOQ)?

Economic order quantity, quantity discount, and machine capacity

2 - Time utility involves which of the following?

Effectively managing all value-added processes that influence when a product is available for purchase.

11.7 - Which step in the process asks you to fill in your comparison matrix?

Evaluate options

1.3 - T/F: Henry Ford invented the assembly line

FALSE

15 - Once it appears that breakbulk is a good option, the next step is _____.

Identify the right location for the breakbulk facility

12 - When implementing an ERP system for your company, you should:

Implement it in small steps with end-user involvement throughout the process

14.4 - Besides cost, which of the following are challenges that have hindered the performance of MRP systems?

Information accuracy and integrity and operating discipline

15 - In logistics, processing deals with which of the following?

Information flow and visibility of inventory

12.3 - What are the 5 key processes that comprise an effective manufacturing planning and control system?

Integrated Business Planning, Aggregate Planning, Master Production Scheduling, Materials Requirements Planning, Production and Purchasing Control

15 - Speeding up transport to improve service _____

Is expensive

15 - One consideration improving customer services levels is that _____

It costs money

15 - Which of the following is true about the economic benefits of warehousing?

It decouples production and consumption, enabling you to take advantage of economies of scale in transportation

15.5 - Which of the following is true about breakbulk warehousing?

It entails unloading large shipments and breaking down the contents to go into smaller shipments

16.3 - Aldi is able to keep prices low because...

It has a relatively low number of stock-keeping units

12.4 - Aggregate planning helps you what?

It helps you align your production capacity to market demand.

12.3 - What is Aggregate Planning?

It identifies the resources needed to support the sales and marketing plan over the next 6 to 18 months

15 - An example of how product characteristics influence transportation is that if a product is high density ________.

It is heavy for the space it takes up, and will maximize the weight allowed when the trailer is not very full by volume

2 - Which value gap refers to a company's failure to accurately assess what customers really want?

Knowledge Gap

11.5 - When it comes to negotiations, it is important to know that:

Knowledge is power

11.4 - A purchase where there are a large number of competitive suppliers and you buy a fairly large amount relative to the market would most likely be classified as:

Leverage

1.6 - Because services can't be shipped, you lose decision-making flexibility. ___________________ and _____________________ are everything.

Location; Timing

12.3 - Your company's strategic plan defines your what?

Long-term focus, expectations for sales growth, profitability, and return on investment

10.3 - If your product is relatively new and your data is limited, your best option is to...

Look at sales history of a similar product and use qualitative data

10.5 - When measuring forecast error, which forecasting error expresses the forecast error as a percentage from the mean?

MAPE

11.4 - What is Market Complexity?

Market complexity measures how difficult it is for you to guarantee a reliable, uninterrupted flow of supply at an affordable price.

14.3 - Which of the following are inputs into an MRP system?

Master Production Schedules and Inventory Records

12.3 - What is Master Production Scheduling?

Master production scheduling breaks down the aggregate plan to create a schedule for producing individual end items (aka SKUs)

11.3 - During WWII, ___________ increased the emphasis on purchasing.

Materials shortages

11 - T/F: Suppliers may bring ideas, resources and skills to help make your company more competitive.

True

12.6 - The core benefit of an ERP system is that it:

Offers a single source of truth because it stores all data in one place

16.4 - Artificial intelligence is...

One of the ways that places like Amazon (Alexa) and Netflix develop suggestions for you

2.3 - _______________ and _______________ are primarily responsible for creating form utility.

Operations; Purchasing

14.7 - When should you use the lot-for-lot (LFL) lot-sizing rule?

Ordering or set-up costs are low and item value is high

2.5 - What are "B" Customers?

Other key accounts that receive very high levels of service.

16.4 - Which of the following factors contributes to a shrinking workforce?

People having fewer children and many are reaching retirement age

2 - What are your viable options when a key customer does not value your distinctive competencies?

Persuade the customer to think differently—i.e., to value your competencies; Abandon the customer and dedicate resources to other customers

15.4 - The slowest transportation mode is:

Pipeline

11.5 - Which of the following is not a step in the strategic sourcing process?

Plan

11.3 - What are the five activities of the SCOR model?

Plan, Source, Make, Deliver, Return

2.3 - Which of the following is not one of the core value dimensions?

Process Improvement

15.3 - Visibility is a critical aspect in which of the following key logistics activities?

Processing

11.5 - During which step of the strategic sourcing process do you actual purchase items you have contracted for?

Procure

12.4 - What is Level Strategy?

Producing the same output each period to maintain a stable production rate and a constant workforce

1.4 - What are Examples of Design Decisions?

Product Design, Process Design, Facility Layout, and Facility Location

1.5 - As you look at a supply chain map, you can be confident you are looking at a winning supply chain if it depicts the right ______________ and the right _________________.

Products; Price

11.7 - Which step in the process helps you determine how important each criterion is?

Set weights

10.5 - What are qualitative forecasts?

Qualitative approaches rely on experts' opinions. Your task is to identify the right "key" informants and to ask them the right questions.

10.5 - What are quantitative forecasts?

Quantitative approaches are data—rather than experience—driven.

2.4 - What is are utilization touch points?

Refers to the process of actually using a produce - After you have purchased it

1.4 - T/F: An open systems view reiterates that companies operate in a dynamic, ever-changing environment, requiring managers to constantly adapt in order to remain competitive.

True

15.3 - What are reverse logistics?

Returning a product to the point it can be reused or recycled

11.4 - What are the four types of buys?

Routine, leverage, bottleneck, and critical

12.3 - What is used to align plans within your company?

S&OP (used within your firm to align sales and marketing plans with production and supply chain resources)

14.7 - Which of the following is an appropriate tool or mechanism for dealing with supply and demand uncertainty?

Safety Stock and safety lead time

2.4 - Which of the following is not one of the fundamental steps in resource orchestration?

Scan the environment

12 - During the Monday meeting, your boss asked which machine would have some idle time this week and who was responsible for the maintenance process. To his disappointment, you didn't have the answers right away. After the meeting, you decide to keep track of all the resources and personnel on a weekly basis from now on. Which of the following tools can best assist you?

Scheduling Gantt charts

1.6 - Why should you care about needing to learn how to effectively manage services?

Services are very different from manufacturing operations and productivity growth and innovation are critical to future prosperity.

15.4 - The last mile shipping is:

Shipping directly to the customer's door

14.4 - Which of the following are reasons that MRP software is so important to the time-phased requirements process?

Some products are too complex and companies produce too many products to manage manually

11.5 - During which step of the strategic sourcing process would you identify potential suppliers?

Source

1.5 - T/F: Supply chain management involves working closely with key suppliers (and customers) to co-create customer value.

True

11 - A "routine buy" on the strategic sourcing matrix has which of the following characteristics?

Straight forward competitive marketplaces

12 - Which of the following activities answer these 3 questions: who are your customers, what are their needs, and how is your company going to meet their needs better than anyone else?

Strategic Business Plan

11.3 - During which era did outsourcing make purchasing strategic?

Strategic era

2.5 - What are "A" Customers?

Strategic key accounts—the most important 5-10% of your customers—typically make up a huge share of sales, profits, and growth. You do everything possible to make sure their experiences are remarkable.

12.3 - Business planning begins with what?

Strategy

2.5 - What is the 80/20 rule also called?

The Pareto principle

1 - Which of the following accurately describe the bullwhip effect?

The bullwhip effect argues that small changes in retail-level demand get magnified as they ripple upstream toward suppliers.

15.4 - The fastest transportation modes are also

The most polluting and the most expensive

10.4 - S&OP is used to bring the customer-facing and supply-facing sides of your company together to get everyone to agree to which of the following?

The nature of the business environment and a single forecast

12.3 - What is Production and Purchasing Control?

The operations group plans and controls the flow of work in the production process. This is often called shop-floor scheduling

11.5 - What is the Procure step of the Strategic Sourcing Execution?

The procure stage begins as the contract is finalized and you begin to take delivery of the purchased goods or services. Your goal is to effectively manage and measure the supplier, ensuring continuous improvement for ongoing buys.

2.5 - What are "C" Customers

The remaining 80% of your customers. You provide them high levels of standardized service.

1.5 - What should you look for when you evaluate a supply chain map to determine whether or not a focal firm is positioned to compete and win?

The right players and the right relationships

16.4 - One potential issue with the Internet of Things (IoT) is that...

There are some serious security issues

12.4 - What are Capacity-Focused Options?

These options involve managing your workforce. Such as hours worked, temporary workers, hiring/firing, and inventory

10 - If you want to catch new trends quickly and you are using exponential smoothing, your alpha should be larger than .5.

True

10 - Quantitative forecasts are data rather than experience driven.

True

12.3 - Why do companies exist?

To create a customer - Peter Drucker

12.3 - What is Integrated Business Planning?

To make decisions using a single shared, agreed upon forecast

15.6 - What is a Strategic Collaboration relationship?

To promote strategic collaboration—i.e., where your 3PL partner develops solutions to make your business better—you need more than just an enduring relationship. You need trust. You also need to share resources like engineering talent—and maybe even capital to finance an innovation project. Further, you need to share results—good or bad. Your goal: Become partners in profit.

15.8 - To determine whether to use breakbulk warehousing, you compare

Total cost of direct shipping versus using a breakbulk warehouse

1.3 - Which of the following companies invented the lean six sigma paradigm shift?

Toyota

15 - Which type of 3PL relationship is characterized by a cost/price focus and minimal interactions?

Transactional

15.6 - If you need help handling occasional shipping to certain areas, what would be a good type of relationship to have with a 3PL?

Transactional

15.6 - What are the 3 key shipper/3PL relationships?

Transactional, cooperative, and strategic collaboration

15 - The biggest area of spending in logistics is ____.

Transportation

15.7 - As transportation speeds up

Transportation cost increases and lost sales will decrease

10 - If you look at a plot of your data and see an upward or downward pattern, your data is revealing a ____________.

Trend

15.4 - You can reach more suppliers/customers by _____ more than any other mode.

Truck

15 - When it comes to selecting a warehouse location _____.

Use a total cost of ownership analysis

15 - Inco terms are ____

Used for both domestic and international shipping

11.5 - What is the Reconcile and Pay step of the Strategic Sourcing Execution?

Verifying the order and paying

16.4 - The most critical scarce resource today is...

Water

14.5 - What does the "MPS" row tell you?

When and how much to produce

14.3 - Which of the following does the MPS tell you?

When to produce more of an end item

15.6 - What is a cooperative relationship?

When you need an ongoing relationship that improves value-added capabilities, both you and your 3PL partners need to change your timeframe. The stability of a long-term relationship is necessary for 3PLs to invest in building the skills you need.

12.4 - What are Demand-Focused Options?

Work with marketing to persuade customers to shift their demand. Look at things such as price, lead time, back orders, and counter-seasonal products

11.5 - What is the Analyze step of the Strategic Sourcing Execution?

You develop a deep understanding of what you are buying, the market, the opportunities, and how you will manage the purchase.

16.3 - The Grainger example reminds us...

You may have to redesign your supply chain to continually meet customer needs

15.6 - What is a Transactional relationship?

You may simply need help handling an occasional transportation overload. An arms-length relationship will get the job done.

11.4 - Leverage purchases:

Your best opportunity to really save money and a buyer's dream

12.6 - What is an Enterprise Resource Planning System (ERP)?

Your company's central nervous system

2.3 - What are five criteria are common across most scorecards for defining customer value?

cost, quality, delivery, agility, and innovation

2.3 - What is time utility?

emerges from effective management of all value-added processes that influence when a product is available for purchase.

2.4 - What are affective processes?

emotions drive the process, leading to a "gut" reaction to what you are experiencing.

2.3 - What is possession utility?

falls within marketing's domain and consists of efforts to communicate (i.e., promote) a product's value and then facilitate the exchange process.

15.3 - What are the seven rights of logistics?

getting the right product to the right customer at the right time in the right condition in the right quantity at the right place for the right cost.

15.3 - What is your job as a logistics professional?

manage movement, storage, and the coordination of goods in the supply chain

2.4 - What is an acquisition touch points?

occur as customers learn about and make purchase decisions.

15.7. - The closer you get to 100% perfection, the more quickly the costs of ____ rise.

service improvements

2.3 - What is Form utility?

the primary responsibility of purchasing and operations managers who acquire inputs and transform them into products or services of greater customer value.

1.4 - In OSCM what is your goal?

use inputs—e.g., labor, plant and equipment, component parts, and services—to "make" something customers want and are willing to pay for.

10.5 - Since we know our forecast is going to be __________, we _______________.

wrong, should frequently update it with the most current information

2.4 - What are cognitive processes?

your mind processes information—e.g., advertising and memories—for each experience, creating a learned expectation

1.4 - Which of the following practices/techniques helps to eliminate poorly designed jobs that alienate workers, reduce productivity, and stifle learning?

-Job Enrichment -Job Enlargement -Employee Involvement

15.6 - Objectives of using a 3PL include which of the following?

-Minimize costs -Deliver maximum service to customers -Reduce the hassle of dealing with repetitive detailed activities

11.3 - Which of the following is a "right" in the less formal definition of purchasing?

-Obtaining the right material -In the right quantity -At the right time -For delivery to the right place

2.5 - Which of the following initiatives represents a true customer-success strategy?

-At the customer, for the customer -We turn our customers into winners. -Their success is cash in our bank. -Six sigma at the customer