Supply Chain Management
Katz reports total revenue of $375,650, cost of goods sold of $267,400 and net income of $48,325. Their total assets are $784,325 and total liabilities are $387,775. What is their return on equity (ROE)?
12.19%
Lisa rented her goats out to anyone interested in clearing underbrush the natural way on their acreage. She received a call from her client Mary on June 21 and delivered her herd of goats to the site on June 24. The goats were done on June 30 and Lisa presented Mary with an invoice the same day. Mary wrote Lisa a check on July 18 and Lisa cashed it on July 21. What was Lisa's days payable outstanding for Mary's job?
18 days
Katz reports total revenue of $245,600, cost of goods sold of $18,950 and net income of $121,000. Their total assets are $585,000 and total liabilities are $250,000. What is their return on equity (ROE)?
36.12%
Which of the following would result in lower return on assets for Katz if all other entries in their selected financial data were held constant?
A reduction in total assets
Blue Nile is an online retailer of diamonds that has used responsive transportation to ship diamonds to customers in the United States, Canada, and several countries in Europe and Asia. Which is the mode of transportation used with this strategy?
Air
Which of the following would result in an improvement in the C2C cycle for Katz if all other entries in their selected financial data were held constant?
An increase weeks payable
A key supply chain difference between Gateway and Apple is that
Apple has always carried product in their stores while at one time Gateway stores carried no inventory.
________ typically measures the cost of bringing product into a facility as a percentage of sales or cost of goods sold (COGS).
Average inbound transportation cost
Which of the following defines the set of customer needs that a company seeks to satisfy through its products and services?
Competitive strategy
The following warehousing methodology is one in which goods are not actually warehoused in a facility. Instead, trucks from suppliers, each carrying a different type of product, deliver goods to a facility. There the inventory is broken into smaller lots and quickly loaded onto store-bound trucks that carry a variety of products, some from each of the supplier trucks.
Cross-docking
Supply chain macro processes include which of the following?
Customer Relationship Management (CRM)
Supply chain surplus involves what two parts?
Customer value and supply chain cost
Which of these statements about Dell's supply chain is best?
Dell's initial success was largely driven by their Assembly→Customer supply chain linkage.
Which statement about supply chains is best?
Flows in a supply chain may be managed by an intermediary.
Which of the following are key components of information that must be analyzed to increase efficiency and improve effectiveness in a supply chain?
Forecasting and aggregate planning
Supply chain responsiveness includes the ability to do which of the following?
Handle supply uncertainty
The ________ strategy results in a peak during the discount week, often followed by a steep drop in demand during the following weeks.
High-low pricing
The value chain consists of direct and indirect activities. Which of the following is an indirect activity for an enterprise?
Human Resources
________ measures the incremental costs that are independent of the size of the order.
Incremental fixed cost per order
Which of these services facilitates the function of the value chain but is not considered a core element of the supply chain?
Information Technology
Which set of supply chain flows is correctly described?
Information and product both flow upstream and downstream in a supply chain.
Which of these has the broader range?
Intercompany scope
Which of the following is a technology that shares and analyzes information in the supply chain?
Internet
The key weakness of the ________ view is that different functions within a firm may have conflicting objectives.
Intrafunctional scope
With the ________ view, firms attempt to align all operations within a function. In this view, all supply chain functions including sourcing, manufacturing, warehousing, and transportation must align their strategy to minimize total functional cost.
Intraoperation scope
Which of the following customer needs will cause implied uncertainty of demand to increase?
Lead time decreases
Although faster transportation is more expensive, a firm receives which benefit as a result of the faster transportation?
Lower inventories
A ________ strategy specifies how the market will be segmented and how the product will be positioned, priced, and promoted.
Marketing and Sales
Supply chain responsiveness includes the ability to do which of the following?
Meet a very high service level
Supply chain responsiveness includes the ability to do which of the following?
Meet short lead times
Amazon uses different prices for the products that are purchased from the company — often for the speed of the shipping. What is the name of this pricing scheme?
Menu pricing
Which of the following are key components of transportation decisions when designing and operating a supply chain?
Mode of transportation
49) Which of these examples ripped from the headlines of business periodicals is most accurate?
Netflix has two content delivery systems that are inexpensive to operate.
Which element in the value chain is responsible for transforming inputs into outputs?
Operations
A ________ strategy specifies the portfolio of new products that a company will try to develop.
Product Development
Which of the following would be a demand and supply characteristic toward the beginning stages of a product's life cycle?
Product availability is crucial to capturing the market.
Which of the following specifies the portfolio of new products that a company will try to develop?
Product development strategy
In the textbook, it mentions that Walmart has mandated the use of a specific technology by its top 100 suppliers at the level of product cases. What is the technology?
RFID
Supply chain macro processes include which of the following?
Supplier Relationship Management (SRM)
Which sequence of stages is typical for product flow in a supply chain?
Supplier → Manufacturer → Distributor
Which component of the supply chain decision-making framework would be used to reach the performance level dictated by the supply chain strategy?
Supply Chain structure
Which of the following determines the nature of procurement of raw materials, transportation of materials to and from the company, manufacture of the product or operation to provide the service, and distribution of the product to the customer along with follow-up service?
Supply chain strategy
________ measures the average time between when an order is placed and the product arrives.
Supply lead time
For a company to achieve strategic fit, it must accomplish the following keys:
The overall supply chain must operate at the lowest cost possible to achieve success.
Which of the following statements about pull processes is accurate?
They may also be referred to as reactive processes.
Which of the following statements about push processes is accurate?
They may also be referred to as speculative processes.
________ identifies the difference between the planned production/inventories and the actual values.
Variance from plan
Which of the following would be a characteristic of a facility with little excess capacity?
Will likely be more efficient per unit of product it produces
Which of the following is a characteristic of a facility with excess capacity?
Will likely be more efficient per unit of product it produces than one with a lot of unused capacity
Seasonal inventory should be used when
a company can rapidly change the rate of its production system at a very low cost.
Geoff strolled into his local big box retailer in search of sunflower seeds for the flock of cardinals that graced his property during the cold winter. Much to his (and the cardinals') dismay, the shelf where the 50 pound bags of sunflower seeds were kept was bare. He pirouetted and left the store in disgust, empty-handed and fearing the wrath of an angry flock of cardinals when he returned home. This sad scenario illustrates
a lost sale.
Economies of scale are illustrated by
a supplier waiting until enough demand has built up to send a full truckload shipment to their customer.
Transforming forecasts into plans of activity to satisfy the projected demand is known as
aggregate planning.
Concerns related to the environment and sustainability
are sometimes dictated by regulations and sometimes by perception.
Between 1993 and 2006, Dell's competitive strategy was to provide a large variety of customizable products at a reasonable price. Given the focus on customization, Dell's supply chain was designed to
be responsive.
Seven-Eleven in Japan's operations and distribution strategy focuses on
being responsive and having an excellent information infrastructure.
A firm that is not on the cost-responsiveness efficient frontier can improve
both responsiveness and cost performance.
Which component of the supply chain decision-making framework would be established first?
competitive strategy
The value that potential customers place on product cost and delivery time determines a company's
competitive strategy.
Retailing in the United States is largely
consolidated.
The curve that shows the lowest possible cost for a given level of responsiveness is referred to as the
cost-responsiveness efficient frontier.
The customer order cycle occurs at the
customer/retailer interface.
The average amount of inventory used to satisfy demand between receipt of supplier shipments is referred to as
cycle inventory.
A company's competitive strategy
defines the set of customer needs that it seeks to satisfy through its products and services.
Cycle inventory is used because
demand is uncertain and may exceed expectations.
The uncertainty of customer demand for a product is the
demand uncertainty.
A key issue facing Toyota is
design of its global production and distribution network.
A company would decide whether to outsource or perform a supply chain function in-house during the
design phase.
The profitability of a supply chain is impacted primarily by the
design, planning and operation categories of decisions.
A company's supply chain strategy
determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.
The relationship between the manufacturer and supplier during the procurement cycle is very similar to the relationship between
distributor and manufacturer.
The manufacturing cycle occurs at the
distributor/manufacturer interface.
Zara sources basic products such as white t-shirts from low cost countries because demand is predictable. For trendy products for which demand is unpredictable, Zara sources from company-owned higher cost factories in Europe. For the predictable demand, Zara strives for ________ and for the unpredictable demand, Zara hopes to achieve ________.
efficiency, flexibility
The objective of customer order entry is to
ensure that orders are quickly and accurately entered and communicated to other affected supply chain processes.
The places in the supply chain network where product is stored, assembled, or fabricated are known as
facilities.
The art and science of making projections about what future demand and conditions will be is
forecasting.
Walmart's supply chain features clusters of stores around distribution centers, which facilitates
frequent but inexpensive replenishment at the stores.
Scope of strategic fit refers to both the
function within the firm and stages across the supply chain.
The objective of customer order fulfillment is to
get the correct orders to customers by the promised due date at the lowest possible cost.
Webvan designed a supply chain with large warehouses in several major cities in the United States, from which groceries were delivered to customer homes. They failed partly because of
higher labor costs for picking orders.
The supply chain strategy category would include a decision about
how large the warehouse in Kokomo should be.
The uncertainty that exists due to the portion of demand that the supply chain is required to meet is the
implied demand uncertainty.
The authors cite IKEA as achieving an intercompany scope of strategic fit which serves to
increase the supply chain surplus.
Risks and opportunities have increased for supply chains due to
increasing globalization.
A supply chain features a constant flow of
information, product and funds.
The data and analysis concerning facilities, inventory, transportation, and customers throughout the supply chain is known as
information.
Company A and Company B of the same supply chain rely on market responsiveness to attract customers. Each company has access to the other company's designs, production schedules, and goals, and if Company A needs product overnight, Company B gladly ships it, knowing that in the long run it works to the benefit of both. Such an arrangement is an example of
intercompany scope.
All raw materials, work in process, and finished goods within a supply chain are known as
inventory
The push/pull view of the supply chain is useful when considering strategic decisions relating to supply chain design, because
it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.
The cycle view of the supply chain is useful when considering operational decisions, because
it specifies the roles and responsibilities of each member of the supply chain.
The warehousing methodology in which all the different types of products needed to perform a particular job or satisfy a particular type of customer are stored together is
job lot storage.
Toyota's global complementation strategy
mandates that plants can produce vehicles for export to markets that remain strong when the local market weakens.
The procurement cycle occurs at the
manufacturer/supplier interface.
Why would anyone in their right mind buy a brand new car in the spring when they know that new car models will appear in late summer and early fall and the dealers will use
markdowns to move that old inventory?
Activities involved in the Customer Relationship Management (CRM) macro process include
marketing.
The final step in achieving strategic fit between competitive and supply chain strategies is to
match supply chain responsiveness with the implied uncertainty of demand.
Efficient supply chains
maximize performance at a minimum cost.
The objective of the customer arrival process is to
maximize the conversion of customer arrivals to customer orders.
The objective of every supply chain is to
maximize the overall value generated.
A supply chain strategy involves decisions regarding all of the following except
new product development.
The value chain in a company begins with
new product development.
Each stage in a supply chain is connected through the flow of products, information, and funds. These flows often occur in both directions and are usually managed by
one of the stages.
The production scheduling process in the manufacturing cycle is similar to the
order entry process in the replenishment cycle.
The manufacturing and shipping process in the manufacturing cycle is equivalent to the
order fulfillment process in the replenishment cycle.
Activities involved in the Internal Supply Chain Management (ISCM) macro process include
order fulfillment.
The process by which a firm decides how much to charge customers for its goods and services is
pricing.
The processes involved in the manufacturing cycle include
production scheduling.
The two major types of facilities are
production sites and storage sites.
Zara's supply chain strategy
results in supply more closely matching customer demand.
The processes included in the replenishment cycle include
retail trigger.
The replenishment cycle occurs at the
retailer/distributor interface.
The use of differential pricing over time or customer segments to maximize profits from a limited set of supply chain assets is
revenue management.
The inventory held in case demand exceeds expectation in order to counter uncertainty is called
safety inventory.
The functions and stages that devise an integrated strategy with a shared objective are referred to as
scope of strategic fit.
The inventory that is built up to counter predictable variability in demand is called
seasonal inventory.
The set of business processes required to purchase goods and services is known as
sourcing.
A company's marketing and sales strategy
specifies how the market will be segmented and how the product will be positioned, priced, and promoted.
A company's product development strategy
specifies the portfolio of new products that it will try to develop.
The warehousing methodology that uses a traditional warehouse to store all of one type of product together is
stock keeping unit (SKU) storage.
Activities involved in the Supplier Relationship Management (SRM) macro process include
supplier evaluation and selection.
When all the different stages of a supply chain work toward the objective of maximizing total supply chain profitability, rather than each stage devoting itself to its own profitability without considering total supply chain profit, it is known as
supply chain coordination.
The cost of making and delivering a product to the customer is referred to as
supply chain efficiency.
The decision phases in a supply chain include
supply chain operation.
The preferable supply chain strategy for a firm that sells multiple products and serves customer segments with very different needs is to
tailor the supply chain to best meet the needs of each product's demand.
One motivation for companies to shed noncore functions to their supply chains has been to
take advantage of supplier and customer competencies that they did not possess.
A company's partners in the supply chain determine
the company's success.
Customer order entry is
the customer informing the retailer of what they want to purchase and the retailer allocating product to the customer.
For any supply chain, the source of revenue is generated by
the customer.
Increased product variety and shrinking product life cycles usually result in
the deliberate phase-out of older products.
The drive for strategic fit should come from
the highest levels of the organization, such as the CEO.
Over the past several decades
the number of owners per supply chain has increased.
Customer arrival refers to
the point in time when the customer has access to choices and makes a decision regarding a purchase.
Customer order fulfillment refers to
the process where product is prepared and sent to the customer.
Customer order receiving is
the process where the customer receives the product and takes ownership.
The push/pull view of a supply chain holds that
the processes in a supply chain are divided into 2 categories depending on whether they are initiated in response to or in anticipation of customer orders.
The cycle view of a supply chain holds that
the processes in a supply chain are divided into a series of activities performed at the interface between successive stages.
Customer value is
the sum of the supply chain surplus and supply chain cost.
For any supply chain,
there is only one source of revenue, the customer.
Moving inventory from point to point in the supply is known as
transportation.
A graph with two axes with implied uncertainty along the horizontal axis and responsiveness along the vertical axis is referred to as the
uncertainty/responsiveness map.
The first step in achieving strategic fit between competitive and supply chain strategies is to
understand customers and supply chain uncertainty.
The second step in achieving strategic fit between competitive and supply chain strategies is to
understand the supply chain and map it on the responsiveness spectrum.
The time horizon of the operation phase is typically
weekly or daily.
The most significant sourcing decision for a firm is
whether to perform a task in-house or outsource it to a third party.
The relationship where increasing implied uncertainty from customers and supply sources is best served by increasing responsiveness from the supply chain is known as the
zone of strategic fit.
