BMGT 372 Final
T/F Sustainable supply chain practices can result in financial payoffs including improved relationships with stakeholders and employees
False
T/F The "cost-oriented" approach to environmental management relates to protecting and enhancing business performance and increasing profits.
False
T/F The 'product' category in the 4 Ps of marketing is not overly relevant to SCM.
False
T/F The advantage of CRM is that it facilitates customer standardization
False
T/F The ecological footprint measure of sustainability focuses on the producer, not the consumer.
False
T/F The logistics channel includes distributors and retailers.
False
T/F The marketing function focuses on the "upstream" part of the supply chain.
False
T/F The most important factor in driving relational marketing strategies was the outsourcing trend.
False
T/F The role of product design in the OM function is to define the features and marketing tactics for a company's product.
False
T/F To have environmental integrity in the market place, a company need only to comply with the bare minimum of environmental laws.
False
T/F Today's economy has seen a shift in power from customers to companies.
False
T/F Utilizing environmentally responsible suppliers can impact SCM sustainability, and compliance should be monitored by the supplier
False
T/F When developing a sustainable SCM strategy, it's important to remember that all industries operate under very similar contexts when it comes to sustainable practices and impacts
False
T/F When evaluating supply chain decisions, an organization with a sustainability strategy would focus only on the economic factors of sustainable operations
False
The development of joint objectives is a benefit of power-based relationships.
False
The goal of strategic sourcing is to provide a competitive advantage to an organization and create short-term relationships with suppliers.
False
The greater the criticality of a supplier relationship, the smaller the risk.
False
The most comprehensive buyer-supplier relationship is a partnership.
False
The sourcing process for functional products is easier to manage because of unpredictable demands.
False
The supply side of an organization is related to the marketing function.
False
To reduce errors and complexity, sourcing is the only function that should interact with suppliers.
False
Total cost of ownership (TCO) is the purchase price plus transportation.
False
Transactional relationships require significant relationship management.
False
When considering the negotiator's dilemma, distributive opportunities are mutually beneficial.
False
When selecting a new supplier, competitive bidding is an effective way to develop a longer-term business relationships.
False
Moving Averages
Forecast is made by averaging a specified number, n, of the most recent data: the moving average - appropriate for a level data pattern - forecast becomes more responsive as n decreases
Mean
Forecast is made by taking an average: - appropriate for a level data pattern - forecasts become more stable over time
Forecasting vs. Planning
Forecasting drives all other business decisions Planning requires organizing resources in anticipation of the forecast
T/F For companies to comply with legal aspects of sustainability, they typically must conform to established design and performance standards.
True
T/F From a SCM perspective, a customer can be at any step of the supply chain
True
T/F In the Supply Chain Sustainability Model, SCM processes and structures create both environmental and social impacts.
True
T/F In the evolution of OM, its "back office" role was partially a result of firms' extensive focus on marketing and developing new markets.
True
T/F In the evolution of marketing, the production concept met unfulfilled demand for basic consumer needs.
True
T/F In the evolution of marketing, the selling concept evolved because of increased competition between firms for customers
True
T/F Marketing is the function that links a business to its customers.
True
T/F Niche customer marketing strategies typically correspond to higher product prices
True
T/F Of the three drivers of sustainability initiatives, innovation is internally motivated
True
T/F Operations management (OM) is the function that is responsible for producing goods and services.
True
T/F Option and existence values of sustainability are considered "non-use" values.
True
T/F Process design is important because it ultimately defines the production process.
True
T/F Product design decisions can improve sustainability performance by ensuring that materials and disposal are environmentally friendly
True
T/F Product design decisions will impact almost every other decision the company must make in terms of producing and delivering the product to the customer.
True
T/F Project processes produce products exactly to a particular customer's expectations
True
T/F Relational marketing recognizes the importance of individual customer needs and wants
True
T/F Remanufacturing has become an effective tool in designing sustainable operations.
True
T/F Service design has three elements including the physical, psychological, and sensual
True
T/F Standardizing design seeks to utilize a common set of parts to produce a product.
True
T/F Supply chain management had a significant influence on the development of relational marketing strategies
True
T/F Supply chain management requires a sophisticated understanding of the term, "customer."
True
T/F Supply chain networks can mediate the differences between environmental and social sustainability practices.
True
T/F Sustainability practices impact SCM in the areas of product design and manufacturing.
True
T/F Sustainable supply chains can offer financial benefits to a firm, including lower costs of capital.
True
T/F Sustainable supply chains must focus on inputs and outputs of operations
True
T/F Target marketing is not the most cost-efficient but it fits a segmentation strategy
True
T/F The OM function manages a company's resources, including labor and materials.
True
T/F The best facility layout for producing an automobile would be a product layout.
True
T/F The degree of customer contact is a key differentiator between manufacturing and service operations.
True
T/F The disposal of equipment or products is a key area for sustainability improvement opportunities in a company's organizational processes
True
T/F The end customer is typically an individual or household
True
T/F The external context of SCM includes government and market-based influences
True
T/F The inclusion or absence of sustainability practices in SCM can have significant financial consequences.
True
T/F The life-cycle assessment measure of sustainability considers the potential impacts associated with a product, process, or service.
True
T/F There are four types of facility layout: fixed position, process, product, cellular.
True
T/F To compete in a global market, a firm must be better than its competitors in meeting customer needs.
True
T/F Transactional marketing strategies fit with a "one size fits all" product strategy
True
T/F Understanding cycle time is critical to the process of line balancing.
True
T/F When assessing the cost of sustainability initiatives, the cost-of-control measure considers the costs of preventative measures to avoid damages
True
T/F With globalization, OM has become a way for companies to gain a competitive advantage
True
The importance of sourcing has grown as companies seek to develop a global supply base.
True
The keiretsu concept is a strategy to diffuse power differentials in a relationship and allows all parties to grow and prosper.
True
The need to coordinate and collaborate across global supply chains makes relationship management one of the most important aspects of SCM.
True
The negotiations approach to supplier selection typically involves multiple criteria in order to select the best supplier.
True
The risk mitigation role that sourcing plays in an organization relates to evaluating suppliers' ethical standards
True
The sourcing function plays a key educational/knowledge role within an organization.
True
Typically an organization should look to its existing supply base before soliciting a new supplier
True
Understanding inventory turnover is critical to evaluating the effectiveness of the sourcing function.
True
When a supply chain member encompasses small scope, the risks of that relationship are small.
True
When designing and assessing a trust-based relationship, equity is a key component.
True
When resolving a conflict through mediation, the parties involved retain significant control of the resolution process.
True
Measuring Forecast Accuracy
Two measures to help determine how our forecasting methods are performing: • Mean Absolute Deviation (MAD) • Mean Square Error (MSE) First measure forecast error: et = Dt - Ft where: et = forecast error for period t Dt = actual demand for period t Ft = forecast for period t
An initial disadvantage of automation for companies is: a) Cost b) Improved quality c) Replacing workers d) Security e) None of the above
a) cost
When automating processes in a service business, a strategic consideration should be: a) Customer expectations and markets b) Costs c) Suppliers d) Product design e) Process design
a) customer expectations and markets
Marketing plays a critical role in driving the actions of a company's supply chain because it: a) Defines how to create customer value b) Customizes products c) Defines a brand d) Works with operations e) None of the above
a) defines how to create customer value
Reduced operating costs and lower capital costs are a _______ payoff of sustainable SCM. a) Financial b) Customer c) Operational d) Organizational e) Societal
a) financial
The _________ stage of the product design process may include early supplier involvement: a) Idea development b) Preliminary design c) Final design d) Break even analysis e) None of the above
a) idea development
Procter and Gamble selling Tide to customers at Walmart is known as which channel: a) Indirect channel b) Retailer channel c) Direct channel d) Marketing channel e) Logistics channel
a) indirect channel
__________ products have short life-cycles and unpredictable demand: a) Innovative b) Standardized c) Functional d) End of life e) Predictable
a) innovative
A __________ process focuses on providing product customization: a) Intermittent b) Repetitive c) Standardized d) Late stage e) None of the above
a) intermittent
Benefits to buyers from utilizing e-auctions include: a) Market transparency b) Increased error rate c) Complex supplier comparisons d) Increased cycle time e) Fewer suppliers in the decision set
a) market transparency
Viewing customer service as an activity relates to : a) Meeting basic customer needs b) Utilizing performance metrics c) Quality management practices d) A competitive strategy e) None of the above
a) meeting basic customer needs
Building longer term supplier relationships is more effective through ________ practices: a) Negotiation b) Early supplier involvement c) Competitive bidding d) Mass customization e) E-auctions
a) negotiation
When scope and criticality are low, the type of relationship would be: a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above
a) non-strategic transactional
The category in the marketing mix that relates most to quality and packaging is: a) Product b) Place c) Price d) Promotion e) None of the above
a) product
Creating successful and multiple exchanges with customers is termed: a) Transactional marketing b) Relational marketing c) Selling concept d) Marketing concept e) None of the above
a) transactional marketing
impact on SCM (forecasts)
affects the plans made by each member of the supply chain independent forecasting among supply chain members -causes a mismatch between supply and demand -gives rise to the bullwhip
Qualitative Forecasting Methods
are useful when identifying customer buying patterns, expectations, and estimating sales of new products
Industry-initiated certification programs are known as _______ drivers of sustainable initiatives. a) Innovation b) Compliance c) Enforcement d) Certification e) None of the above
b) compliance
Purchasing laundry detergent at a retail store is an example of: a) Commercial sourcing b) Consumer sourcing c) Retail sourcing d) Mass customization e) None of the above
b) consumer sourcing
Target marketing recognizes customer: a) Operations b) Diversity c) Service d) Homogeneity e) All of the above
b) diversity
Marketing focuses on the __________ area of the supply chain: a) Cost b) Downstream c) Productivity d) Logistics e) Upstream
b) downstream
Operations management (OM) is responsible for producing products in a cost-effective and __________ way. a) Complex b) Efficient c) Expensive d) Outsourced e) Cellular
b) efficient
_________ sustainability refers to the preservation of biological systems over time. a) Social b) Environmental c) Market d) Operational e) Organizational
b) environmental
___________ is the facility layout that would best fit with the production of a jumbo jetliner. a) Product b) Fixed position c) Cellular d) Process e) None of the above
b) fixed position
Attributes of companies with the greatest potential for gain or loss from sustainability initiatives include: a) Functional products b) High-profile brands c) Low reliance on natural resources d) Limited regulatory exposure e) b and c
b) high-profile brands
The __________ nature of a service makes product design more complex: a) Standardized b) Intangible c) Intermittent d) Costly e) None of the above
b) intangible
The most important factor that contributed to empowering customers was: a) Customer relationship management b) Internet c) Globalization d) Standardization e) a and b
b) internet
Consumers' tolerance for pollution and their desire for environmentally friendly products relates to ________ influences on a company's sustainability strategy. a) Internal b) Market c) Regulatory d) Global e) Financial
b) market
The place category in the marketing mix relates to: a) Quality and packaging b) Market coverage c) Pricing d) Sourcing e) Product visibility
b) market coverage
The advantages from customized customer strategy are derived from: a) Standardization b) Market segmentation c) Outsourcing d) Cost reduction e) All of the above
b) market segmentation
When the component being supplied is low in scope yet critical to the manufacturing of a product, the relationship would be categorized as: a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above
b) partnership
The aspect of the Supply Chain Sustainability Model that focuses on establishing management systems that align incentives and rewards is known as: a) Sustainability performance b) Processes c) Leadership d) Financial performance e) None of the above
b) processes
An effective product design process should encompass four steps, including: a) Customer relationship management b) Product screening c) Psychological benefit analysis d) Standardization e) a and b
b) product screening
Translating data about customer needs and preferences into technical specifications is known as: a) Value to the customer b) Quality function deployment c) Voice of the customer d) Customer relationship management e) a and b
b) quality function deployment
Because of its overlay across all supply chain functions____________ is the most important aspect of SCM. a) Operations b) Relationship management c) Marketing d) CPFR e) Six Sigma
b) relationship management
In terms of market coverage, ___________ distribution should be used for products with high value, exclusive branding: a) Intensive b) Selective c) Indirect d) Direct e) None of the above
b) selective
A company's supply chain contributes to its success because it can provide more ______ to a customer than a competing supply chain: a) Risk b) Value c) Products d) Transactions e) a and b
b) value
Qualitative Forecasting
based on subjective opinions often called judgemental methods
Distinguishing one market/customer from another is known as: a) Distribution channels b) Supplier relationship management c) Market segmentation d) Bullwhip effect e) Customer relationship management
c) Market Segmentation
__________ supply chains are best utilized for products that have both high demand and supply uncertainty: a) Risk-hedging b) Efficiency-focused c) Agile d) Responsive e) Stable
c) agile
An _______________ is the most comprehensive and customized buyer-supplier relationship. a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above
c) alliance
_______ is an example of an adversarial negotiating tactic. a) Listening b) Inventing c) Anchoring d) Asking e) b and c
c) anchoring
The sustainability metric that measures the carbon dioxide emitted by manufacturing or logistics processes is known as: a) Life-cycle assessment b) Ecological footprint c) Carbon footprint d) Food mile e) Total cost of ownership
c) carbon footprint
Customer service strategy impacts the supply chain on four primary dimensions, including: a) Time, dependability, standardization, transactions b) Dependability, quality, channels, transactions c) Communication, convenience, dependability, time d) Convenience, time, customization, cost e) None of the above
c) communication, convenience, dependability, time
Investment in or developing neighborhoods where a key supplier is located relates to the sustainability principle of: a) Ethics b) Governance c) Community involvement d) Business relationships e) Financial return
c) community involvement
When building trust between supply chain partners, typically the initial step is to establish a: a) Relationship b) Partnership c) Contractual agreement d) Alliance e) None of the above
c) contractual agreement
When a supplier is the only source of a component or service, it would have a high level of ________ to the buyer. a) Scope b) Profitability c) Criticality d) Proximity e) All of the above
c) criticality
Power-based relationships between buyer and supplier can result in: a) Shared objectives b) Information sharing c) Decreased profitability d) Greater coordination e) None of the above
c) decreased profitability
A factor that typically determines the scope of a buyer-supplier relationship is: a) Cost b) Quality c) Degree of customization d) Lead time e) Profitability
c) degree of customization
The channel structure that delivers a product immediately to the end customer is knows as: a) Indirect channel b) Retailer channel c) Direct channel d) Marketing channel e) Logistics channel
c) direct channel
An individual who purchases a product for individual needs is known as: a) Supplier b) Retailer c) End customer/consumer d) Wholesaler e) Manufacturer
c) end customer/consumer
Of the three drivers of sustainable initiatives, ________ relates to laws and government regulation. a) Innovation b) Compliance c) Enforcement d) Certification e) None of the above
c) enforcement
In the Supply Chain Sustainability Model, _________ context refers to inputs that pertain to government and market-based influences. a) Local b) Strategic c) External d) Internal e) Business
c) external
The fact that an organization invests significant amounts of cash in the sourcing function relates to which impact of the sourcing function: a) Risk mitigation b) Strategic c) Finance d) Operational e) Information
c) finance
If a company outsources all of its manufacturing to a supplier, that relationship would have a ______ level of scope. a) Low b) Medium c) High
c) high
In the evolution of marketing, the selling concept emerged because of: a) Improved coordination between supply chain partners b) Reducing inventory across the supply chain c) Increased competition in the marketplace d) Segmenting customers/markets e) All of the above
c) increased competition in the marketplace
In the ______ costing system, present and future costs and benefits of SCM activities are monetized. a) Damage costing b) Activity-based costing c) Life-cycle costing d) Cost of control e) Total cost of ownership
c) life-cycle costing
Defining logical sequence and speed of the production process relates to: a) Early supplier involvement b) Market segmentation c) Line balancing d) Cellular manufacturing e) Process design
c) line balancing
A consumer who purchases a Dell computer would be a customer of which type of operation: a) Cellular b) Service c) Manufacturing d) Intermittent e) All of the above
c) manufacturing
Ensuring consumers are accurately informed about a product's sustainable features is primarily the responsibility of the _________ function. a) Operations b) Risk management c) Marketing d) Sourcing e) Logistics
c) marketing
The _______ customer strategy should be used when meeting very specific customer needs: a) Standardization b) Customization c) Niche d) Outsourcing e) Market segmentation
c) niche
SCM relationships that do not require significant management are: a) Alliances b) Partnerships c) Non-strategic Transactions d) Strategic e) None of the above
c) non-strategic transactions
The design of service processes should include the following elements: a) Physical, psychological, relational b) Psychological, relational, marketing c) Physical, sensual, psychological d) Sensual, relational, operations e) None of the above
c) physical, sensual, psychological
A strategy utilized when delaying product differentiation until later in the supply chain is: a) Standardization b) Customization c) Postponement d) Early supplier involvement e) None of the above
c) postponement
The OM decision about ____________ relates to how the product or service will be produced: a) Product design b) Facility layout c) Process design d) Scheduling e) Inventory management
c) process design
CPFR is an example of __________ interdependence in a relationship. a) Sequential b) Mutual c) Reciprocal d) Transactional e) Contractual
c) reciprocal
__________ interdependence in a trust-based relationship is more likely to result in greater profitability for all SCM partners. a) Sequential b) Mutual c) Reciprocal d) Transactional e) Contractual
c) reciprocal
In the evolution of marketing, the marketing concept focuses on: a) Standardization b) Selling c) Relationships with customers d) Costs e) None of the above
c) relationships with customers
Industries/Products that typically need a high inventory turn measure include: a) Commodities b) Stable demand c) Short life-cycle d) Functional e) Machinery
c) short life-cycle
__________ is responsible for all activities related to purchasing goods and services. a) Manufacturing b) Marketing c) Sourcing d) Logistics e) Finance
c) sourcing
A __________ customer strategy focuses on minimal product customization: a) Customized b) Niche c) Standardized d) One-to-one e) None of the above
c) standardized
Sourcing addresses the __________ part of the supply chain: a) Channels of distribution b) Market segmentation c) Upstream d) Downstream e) None of the above
c) upstream
___________ is the process by which companies capture customer needs and preferences: a) Value to the customer b) Quality function deployment c) Voice of the customer d) Customer relationship management e) a and b
c) voice of the customer
The variable cost of a new computer keyboard is $25 per unit, and the fixed costs to produce the keyboard are $20,000 per year. If the selling price of the keyboard is $45, how many units must the company sell to break even? a) 800 units b) 445 units c) 2000 units d) 1000 units e) None of the above
d) 1000 units
Product and process design together can impact: a) Quality b) Cost c) Customer satisfaction d) All of the above e) None of the above
d) all of the above
The history of marketing involves three major perspectives, including: a) Production b) Selling c) Marketing d) All of the above e) None of the above
d) all of the above
The sourcing function impacts an organization in many ways including: a) Operational b) Financial c) Strategic d) All of the above e) None of the above
d) all of the above
Trust-based relationships can improve performance for the following reasons: a) Sharing joint objectives b) Coordination is easier to implement c) Elimination of duplicate efforts d) All of the above e) None of the above
d) all of the above
The first step in developing a trust-based relationship between buyer and supplier is: a) Identify operational roles b) Create a contract c) Design a conflict resolution process d) Assess the relationship e) None of the above
d) assess the relationship
_________ processes produce small quantities of products in groups based on particular specifications or customers: a) Project b) Line c) Continuous d) Batch e) None of the above
d) batch
________ is the sustainability principle related most directly to the fair treatment of suppliers, distributors and other partners is: a) Ethics b) Governance c) Transparency d) Business relationships e) Financial return
d) business relationships
Attributes of a commercial sourcing include: a) Multiple suppliers of common products b) Buyers are final consumers of products c) Buyer does not negotiate purchase price d) Buyers have specialized purchasing needs e) All of the above
d) buyers have specialized purchasing needs
Features of a repetitive process include: a) High work in process inventory b) Early stage of product life cycle c) Large product variety d) Capital-intensive resources e) Long throughput time
d) capital-intensive resources
Effective IT systems enable which customer service dimension. a) Time b) Dependability c) Transactions d) Communication e) Quality
d) communication
One of the biggest problems that arises in SCM relationship management is: a) Profit sharing b) Visibility c) Coordination d) Conflict management e) Contract management
d) conflict management
In a relationship where scope is high but criticality is low, the relationship would be categorized as: a) Non-strategic transactional b) Partnership c) Alliance d) Contractual e) None of the above
d) contractual
A large cope of tasks provided by a SCM partner can be beneficial because it allows a company to focus on its ___________: a) Profitability b) Customers c) Suppliers d) Core competencies e) None of the above
d) core competencies
When monetizing the environmental and social impacts of a supply chain, ______ relates to the costs of avoiding damages before they occur. a) Damage costing b) Total cost of ownership c) Life-cycle assessment d) Cost-of-control e) Activity-based costing
d) cost-of-control
An example of a product with a stable supply process would be: a) Tablet computer b) Electric car c) Solar panels d) Diapers e) None of the above
d) diapers
The two types of sustainable practices that are mediated by supply chain networks are: a) Social and customer b) Packaging and marketing c) Sourcing and logistics d) Environmental and social e) None of the above
d) environmental and social
When evaluating the sustainability of a supply chain, mangers must focus on both ________ and _______ of each supply chain stage. a) Logistics and transportation b) Marketing and customers c) Packaging and suppliers d) Inputs and outputs e) None of the above
d) inputs and outputs
Designing a sustainability framework that seeks only to avoid liability is a known as a/an_________ ethic. a) Reasonable care b) Good works c) Compliance d) Minimalist e) Avoidance
d) minimalist
The most informal and inexpensive dispute resolution procedure is: a) Litigation b) Arbitration c) Mediation d) Negotiation e) Segmentation
d) negotiation
Employee satisfaction and reduced risk are examples of _______ payoffs of sustainable SCM: a) Financial b) Customer c) Operational d) Organizational e) Societal
d) organizational
Attributes of functional product sourcing include: a) Unstable demand b) Complex products c) Customized products d) Predictable demand e) Short life-cycles
d) predictable demand
When designing facility layout, the _______ layout fits best with intermittent processes: a) Product b) Fixed position c) Cellular d) Process e) None of the above
d) process
_________ is the area of SCM that can greatly impact sustainability initiatives through evaluating the use of materials, sourcing, and disposal. a) Logistics b) Sourcing c) Packaging d) Product design e) Marketing
d) product design
As the level of criticality increases, the relationship between buyer and supplier becomes more: a) Transactional b) Contractual c) Unbalanced d) Relational e) a and d
d) relational
__________ supply chains are best utilized for products that are innovative and have a stable supply base: a) Risk-hedging b) Efficiency-focused c) Agile d) Responsive e) Stable
d) responsive
Sustainability problems may occur infrequently and take years to manifest, but responsible companies include these possibilities in their ___________ assessment activities. a) Market b) Financial c) Operational d) Risk e) Business
d) risk
______________ is the degree of responsibility assigned to a supplier. a) Criticality b) Visibility c) Dependency d) Scope e) a and b
d) scope
______ and _______ are key dimensions for the sourcing function to consider when evaluating an outsourcing or off-shoring strategy: a) Cost and channels b) Innovative and functional c) Standardization and customization d) Scope and criticality e) None of the above
d) scope and criticality
Design for manufacturing (DFM) guidelines focus on ________ and ________: a) Risk and return b) Features and benefits c) Cost and service d) Simplification and standardization e) None of the above
d) simplification and standardization
Unequal power and authority in SCM relationships can be a source of _________ conflict. a) Relational b) Data c) Interest d) Structural e) Value
d) structural
Which sourcing strategy strikes a balance between economies of scale and risk mitigation: a) Early supplier involvement b) Single sourcing c) Multiple sourcing d) Supplier "portfolio" e) Outsourcing
d) supplier "portfolio"
Utilizing a request for quotation (RFQ) is part of the ___________ process: a) Supplier evaluation b) Risk mitigation c) Request for proposal d) Supplier selection e) a and b
d) supplier selection
A weeks of supply measure that is high relative to industry standards may indicate: a) Too much inventory is being held b) Too much cash invested in inventory c) Greater chance of a stock-out d) a and b e) All of the above
d) too much inventory is being held and too much cash invested in inventory
When determining the value of a natural resource, _____ value relates to the benefit derived from consuming the resources: a) Option b) Existence c) Market d) Use e) Profit
d) use
A segment of a logistics channel might include: a) Wholesalers b) Retailers c) Manufacturers d) Warehouses e) Suppliers
d) warehouses
The _______ process type should be used when producing to very specific customer needs: a) Standardization b) Customization c) Line d) Continuous e) Project
e) project
__________ sourcing focuses on more than just price when selecting suppliers. a) Innovative b) Supply side c) Tactical d) Functional e) Strategic
e) strategic
Measuring the effectiveness of sustainability initiatives by estimating the sum of all costs of a product is known as: a) Life-cycle assessment b) Ecological footprint c) Carbon footprint d) Food mile e) Total cost of ownership
e) total cost of ownership
The best way to evaluate price in the sourcing process is: a) Fair price b) Purchase price c) Cost d) Break even analysis e) Total cost of ownership
e) total cost of ownership
The global nature of SCM relationships, with different cultures, can create _______ conflict between SCM partners. a) Relational b) Data c) Interest d) Structural e) Value
e) value
Types of Forecasting Methods
qualitative and quantitative
Executive Opinion
qualitative forecasting method a group decision-making process, subject to bias
the delphi method
qualitative forecasting methods a consensus is developed from anonymously contributed expert information
market research
qualitative forecasting methods surveys and interviews used to collect preferences
T/F Sustainability is important but it is a minor theme in supply chain management.
False
Quantitative Forecasting
- based on mathematical modeling - objective and consistent - can handle large amounts of data and uncover complex relationships
T/F Supply chains must work to achieve the highest level of customer service with cost as a secondary consideration
False
T/F Early supplier involvement (ESI) is the process by which suppliers negotiate early contractual terms with customers
False
T/F In OM decisions, an example of a product design decision is defining an inventory strategy.
False
T/F In the evolution of OM, quality and competitiveness became crucial in the 1950s.
False
T/F Individual customer needs should be met in all situations and will have no impact on the supply chain
False
T/F Intermittent processes produce high volumes of standardized products
False
T/F It is not necessary for the marketing function to be involved in sustainability strategy development, because marketing does not directly implement the strategy.
False
T/F Market segmentation relates to a mass marketing strategy
False
T/F Marketing is an important function, but it is not the function that drives a firm's supply chain.
False
Principles of Forecasting
-Forecasts are rarely perfect -Forecasts are more accurate for groups than for individual items -Forecasts are more accurate for shorter than longer time horizons
Steps in the Forecasting Process
1. Decide what to forecast 2. Analyze appropriate data -common patterns include -trend -seasonality -cycles -in addition to patterns, data contain random variation 3. Select the forecasting model -select the model best suited for the identified data pattern 4. Generate the forecast 5. Monitor forecast accuracy -measure forecast error -use to improve the forecast process
T/F Mass marketing reduces costs by selling more products to fewer customers
False
T/F Not all companies have an OM function
False
Quantitative Forecasting strengths
-can consider many variables -objective -consistent -can process large amount of information
Qualitative Forecasting weaknesses
-cannot consider many variables -influenced by short term memory -difficulty in understanding relationships -biased (optimism, wishful thinking, political manipulation, lack of consistency)
Qualitative Forecasting strengths
-highly responsive to latest changes in environment -can include inside and soft info that is difficult to quantify -can compensate for one-time for unusual events -provide user with a sense of ownership
Forcasts
-how much to carry of each individual product at each location -how much to produce -what supplies to order for production
Quantitative Forecasting weaknesses
-only as good as the data and model -slow to react to changing environments -costly and time consuming to model soft info -requires technical understanding
Linear Regression Steps
1. Compute parameter b 2. Compute parameter a 3. Substitute values for a and b in the y = a + bx 4. generate a forecast for the dependent variable (y)
factors in method selection
1. amount and type of available data 2. degree of accuracy required 3. length of forecast horizon 4. patterns in the data
T/F OM plays a transformative role in an organization because it is independent of other functions.
False
Exponential Smoothing
A weighted average procedure is used to obtain a forecast: - higher values of alpha are more responsive to latest demand changes - must set forecast for initial period
T/F Of the nine sustainability principles, governance relates to promoting a truthful and fair corporate culture.
False
T/F Process design is distinct from product design in the OM function.
False
T/F Repetitive processes typically occur in the early stages of a product's life cycle
False
T/F Service organizations produce products that can be made prior to customer purchase.
False
T/F Standardized customer marketing strategies should never be utilized such strategies are not effective.
False
A CPFR program is a good example of sequential operational roles and processes.
False
A consumer purchasing a t-shirt at a retail store is an example of commercial sourcing.
False
All SCM relationships should be treated in a similar manner.
False
As criticality of the supplier relationship increases, the relationship becomes more contractual.
False
Companies should strive to establish multiple alliances because close relationships are always beneficial.
False
Criticality refers to the degree of responsibility assigned to a supplier.
False
E-auctions have allowed organizations to develop longer-term relationships with suppliers.
False
For companies in an alliance relationship, it is not necessary to have dispute resolution procedures in place.
False
In SCM relationships, the most effective and fair division of power is an equal 50-50 split.
False
In trust-based relationships, competition between companies typically exists.
False
Litigation is the most inexpensive, quick, and amicable conflict resolution strategy.
False
Purchasing is a strategic function within an organization.
False
SCM is primarily about the management of suppliers across complex networks of companies.
False
Single sourcing is no longer a risky strategy due to technological advances in purchasing.
False
Sourcing is responsible for the "downstream" part of an organization.
False
T/F A sustainability framework that seeks to avoid liability is known as a reasonable care ethic.
False
T/F All customers would prefer a customized marketing strategy if possible
False
T/F Batch and line processes are similar.
False
T/F Community relations are a minor aspect of sustainability practices, as they have a smaller impact on supply chains than cost and revenue.
False
T/F Customers are only driven by basic product and service needs
False
T/F Customized customer marketing strategies focus on viewing all customers as having the same product and service needs
False
T/F During product screening, the finance department would primarily be concerned with whether sources of supply are available
False
T/F Supply chains have few environmental and social impacts.
False
T/F Effective decisions about SCM sustainability should monetize and consider social, political, and environmental risks.
True
Casual Models
Quantitative Forecasting methods assume that the variable being forecast is related to other variables in the environment
Time Series Models
Quantitative Forecasting methods generate the forecast from an analysis of a "time series" of the data A time series is a listing of data points of the variable being forecast over time Models include: • Mean • Moving Averages • Exponential Smoothing • Trend Adjusted Exponential Smoothing
T/F Companies can create a competitive advantage through customer service even when its products are easily copied by competitors
True
T/F Customized customer marketing strategies are enabled through market segmentation.
True
T/F Decisions about the best location for a factory or warehouse relate to OM.
True
T/F Design for manufacturing (DFM) considers the ease at which a product can be produced
True
T/F Design simplification seeks to utilize fewer parts that are required to produce a product.
True
T/F E-commerce had added complexity to distribution channels primarily because of shipping costs and transportation.
True
A biotechnology/medical product would be an example of a risk-hedging supply chain with significant focus on supplier stability.
True
A key concept for sourcing managers to understand is the difference between cost and price.
True
Achieving greater economies of scale is one advantage of single sourcing.
True
Agile supply chains are the most difficult to manage due to supply and demand uncertainty.
True
Alliances typically involve products that are highly customized and processes that require flexibility to business needs of the client/customer.
True
Chicken soup would be an example of a stable supply process with an efficiency-focused supply chain.
True
Companies should segment relationships across the supply chain to determine necessary levels of management.
True
Competitive bidding is most effective when there are multiple suppliers in the marketplace.
True
Customer Relationship Management (CRM) is an effective tool for managing diverse customer needs and relationships.
True
Electric car technology would be an example of an evolving supply process
True
For a supplier that provides a commodity product, relationship management can be minimal.
True
In a contractual relationship, scope is high and criticality is low.
True
In consumer purchasing, there are many suppliers of common goods and services.
True
In effective negotiations, both adversarial and problem-solving tactics may be appropriate and effective.
True
Innovative products have higher profit margins but they are more difficult for the sourcing function to manage.
True
Just-in-time relationships are often characterized as partnerships.
True
Leverage refers to the amount of bargaining power in a negotiation strategy.
True
Poor communication has the potential to cause failure in a supply chain.
True
Scope and criticality are important when considering an outsourcing or off-shoring strategy.
True
Scope and criticality are the two defining dimensions of supply chain relationships.
True
Sourcing has a significant financial impact on an organization because large amounts of cash are spent on materials and services
True
Sourcing is the function that is responsible for activities related to purchasing goods and services.
True
Supplier selection typically begins with an organization soliciting a request for quotation (RFQ).
True
T/F A company that discloses all relevant financial or operating information to stakeholders would be following a principle of transparency
True
T/F A key component of an effective SCM sustainability strategy is having effective metrics to evaluate performance
True
T/F At the breakeven point, total costs of the product equal the revenue generated from sales of the product.
True
T/F Channels of distribution define the path by which a product gets to the final customer.
True
linear regression
a casual model a forecasting model that assumes a straight line relationship between an independent variable and a single dependent variable
multiple regression
a casual model extends linear regression by looking at a relationship between multiple independent variables and a dependent variable
OM plays a critical role in a company's supply chain because it: a) Produces/delivers the product or service b) Customizes products c) Defines location of facilities d) Works with marketing e) None of the above
a) Produces/delivers the product or service
Viewing customer service as _____________ might include utilizing quality management practices. a) A philosophy b) A set of performance metrics c) An activity d) Billing and invoicing e) None of the above
a) a philosophy
One factor that influences a company's distribution channel structure is: a) Market coverage objectives b) Customer relationship management c) Product characteristics d) Suppliers e) a and c
e) a and c
A primary advantage of automation for a variety of reasons is: a) Replaces workers with machines b) Economic improvements c) Product quality and consistency d) Improved worker security e) All of the above
e) all of the above
Criteria for utilizing competitive bidding practices include: a) Purchasing high volumes b) Clear specifications for product purchased c) Standardized products to be purchased d) None of the above e) All of the above
e) all of the above
Customer Relationship Management (CRM) can be an effective tool because it: a) Captures detailed customer information b) Customizes communications c) Aids/Contributes to market segmentation d) Can be added to larger ERP systems e) All of the above
e) all of the above
E-commerce has impacted distribution channels in a variety of ways, including: a) Cost structures b) Customer service requirements c) Shipping quantities d) Asset utilization e) All of the above
e) all of the above
Methods for companies to monitor and improve their suppliers' compliance with sustainability practices include: a) Inspections b) Contracts c) Third-party audits d) Training programs e) All of the above
e) all of the above
Reasons for implementing sustainable measures in SCM include: a) Compliance with regulations b) Positive community relations c) Increasing revenues d) Moral/Ethical obligations e) All of the above
e) all of the above
Supply chains can have adverse environmental and business consequences including: a) Monetary costs b) Health risks c) Safety risks d) Environmental costs e) All of the above
e) all of the above
An example of an OM decision would be: a) Which distribution channels to utilize b) Where to locate a factory c) How to schedule workers d) Market segmentation strategy e) b and c
e) b and c
From a total SCM perspective, a __________ can be at any step of the supply chain. a) Supplier b) Retailer c) Channel partner d) Wholesaler e) Customer
e) customer
The maximum amount of time each station on an assembly line has to complete a task is known as: a) Line balancing b) Process design c) Intermittent processes d) Product design e) Cycle time
e) cycle time
The following attributes are important to the success of a trust-based relationship between parties: a) Low visibility b) Equity c) Commitment d) Limited information sharing e) b and c
e) equity, commitment
A tablet computer would have a ________ type of supply process. a) Project b) Continuous c) Stable d) Innovative e) Evolving
e) evolving
Which factor helped create a greater and critical focus on the OM function: a) Reduced product cycle times b) Global competition c) Supply chain management d) Early supplier involvement e) b and c
e) global competition and supply chain management
Keeping the organization at the forefront of new technologies and suppliers relates to which impact of the sourcing function: a) Risk mitigation b) Strategic c) Finance d) Operational e) Information
e) information
Factors in the marketplace that elevated sourcing from a clerical-oriented function include: a) Internet technology b) Global competition c) Growth of consumer sourcing d) Multiple distribution channels e) a and b
e) internet technology and global competition
An example of a problem solving tactic used in negotiations is: a) Inventing b) Referencing c) Anchoring d) Recipricity e) a and b
e) inventing, referencing
The customer service dimension of time is enabled by effective: a) Benchmarking b) Supplier management c) Manufacturing d) Marketing e) Logistics
e) logistics
____________ looks at an entire market as having the same characteristics: a) Value marketing b) Segment marketing c) Service marketing d) One-on-one marketing e) Mass marketing
e) mass marketing
Understanding a the evolution of a product, from introduction to maturity, is known as: a) Cycle time management b) Concurrent engineering c) Remanufacturing d) Design for manufacturing e) Product life cycle management
e) product life cycle management
Mean Square Error (MSE)
is the average of the squared errors: for both measures, select the forecasting method that provides the lowest value
multiple regression
looks at the relationship between the dependent variable and multiple independent variables
Impact on the Organization (forecasting)
marketing (estimates of demand, future trends) finance (set budgets, predict stock prices) Operations (Capacity planning, scheduling, inventory levels) Sourcing (make purchasing decisions, select suppliers)
planning involves the following decisions:
scheduling existing resource determining future resource needs acquiring new resources
Mean Absolute Deviation (MAD)
the average of the sum of the absolute errors:
Demand Management
the process of influencing demand ex: promotional campaigns, advertising
Scope refers to the degree of responsibility assigned to a supplier.
true
