UTK BUAD 331 - EXAM 1 SUPPLY CHAIN ANAGEMENT
(UNIT 1,2,3) - T. STANK QUESTIONS WITH VERIFIED
ACCURATE ANSWERS
What is supply chain management? - Answers -The management of up and down
relationships, with suppliers and customers, to deliver superior customer value, at less
cost to the supply chain as a whole.
What are the four ways supply chain management creates value? - Answers -Through
exchange, form, time & place.
(1)____________ value forms the heart of the business discipline we know today as
(2)______________. - Answers -1. Exchange
2. Marketing
What is marketing? - Answers -The activities and processes involved in determining
and generating customer demand.
Once demand is generated (step 1)... how does a business deliver on the promise it has
made during the "EXCHANGE" value?
Aka... what are the next 3 ways businesses continue to make customer value? -
Answers -By fulfilling a customer need...
(1) with the right FORM...
(2) at the right TIME...
(3) and at the right PLACE.
(this is essentially the role played by supply chain management)
What is the most basic explanation for what a business does? - Answers -A business
makes a promise to customers that it will fulfill a need by providing a good or service,
and then it delivers on that promise.
When do businesses provide customer value? - Answers -Business organizations
provide value only when they identify customer demand first... and then fulfill the
demand by providing a good or service.
List and describe the first of the four ways organizations can create customer value. -
Answers -Exchange: where a business identifies a market need and makes a promise
to customers that it will serve this market for an agreed-upon price.
(Exchange value forms the heart of the business discipline we know today as
marketing)
, Define form value. - Answers -The procurement of raw materials and subcomponents,
manufacturing/assembling them into a finished configuration, and then using logistics
and distribution to get this configuration where and when it is needed for consumption.
(ex: the honey nut cheerio example in etext)
Why are businesses always looking to provide the best exchange value for their
customers? - Answers -Because markets are competitive!
Competition forces businesses to create and manage form, time, and place in such a
way that provides better exchange value in comparison to competitors to generate
business.
The "Great Divide" in supply chains refers to the separation of processes, activities and
metrics that exist between: - Answers -demand focused activities and supply focused
activities
In what 3 ways can supply chain management positively impact the financial
performance of a business? - Answers -1. Enhance revenue- by making improvements
in form, time, or place value
2. Reduce costs- resulting from efficiencies made in cost of goods sold
3. Improve asset management- "produce more profit with less assets" by operating with
less inventory and improving the productivity of the fixed assets used
What are the two competitive advantages businesses use in Supply Chain
Management? - Answers -1. Increasing Value Advantage
2. Increasing Productivity Advantage
What tactics would a company exhibit to gain an "increasing value advantage"? -
Answers -Having tailored service, reliability, and responsiveness.
(ex: your local grocery store gains competitive advantage by increasing their customer's
basic form, time & place value)
What tactics would a company exhibit to gain an "increasing productivity advantage"? -
Answers -Capacity utilization, asset turns, integration.
(ex: Walmart gains a competitive advantage by increasing their productivity by being a
cost leader)
What describes a business who has "optimal customer value"? - Answers -The optimal
strategy is to provide superior levels of form, time, and place AND to do so at a lower
price.
What megatrends will greatly challenge supply chain managers today? - Answers -
Disruptive technology, social changes, and talent/skills requirements.
Define Total Value Optimization (TVO) - Answers -Total value optimization (TVO)
involves finding the optimal balance between increasing revenue or market share and
minimizing total cost.
(UNIT 1,2,3) - T. STANK QUESTIONS WITH VERIFIED
ACCURATE ANSWERS
What is supply chain management? - Answers -The management of up and down
relationships, with suppliers and customers, to deliver superior customer value, at less
cost to the supply chain as a whole.
What are the four ways supply chain management creates value? - Answers -Through
exchange, form, time & place.
(1)____________ value forms the heart of the business discipline we know today as
(2)______________. - Answers -1. Exchange
2. Marketing
What is marketing? - Answers -The activities and processes involved in determining
and generating customer demand.
Once demand is generated (step 1)... how does a business deliver on the promise it has
made during the "EXCHANGE" value?
Aka... what are the next 3 ways businesses continue to make customer value? -
Answers -By fulfilling a customer need...
(1) with the right FORM...
(2) at the right TIME...
(3) and at the right PLACE.
(this is essentially the role played by supply chain management)
What is the most basic explanation for what a business does? - Answers -A business
makes a promise to customers that it will fulfill a need by providing a good or service,
and then it delivers on that promise.
When do businesses provide customer value? - Answers -Business organizations
provide value only when they identify customer demand first... and then fulfill the
demand by providing a good or service.
List and describe the first of the four ways organizations can create customer value. -
Answers -Exchange: where a business identifies a market need and makes a promise
to customers that it will serve this market for an agreed-upon price.
(Exchange value forms the heart of the business discipline we know today as
marketing)
, Define form value. - Answers -The procurement of raw materials and subcomponents,
manufacturing/assembling them into a finished configuration, and then using logistics
and distribution to get this configuration where and when it is needed for consumption.
(ex: the honey nut cheerio example in etext)
Why are businesses always looking to provide the best exchange value for their
customers? - Answers -Because markets are competitive!
Competition forces businesses to create and manage form, time, and place in such a
way that provides better exchange value in comparison to competitors to generate
business.
The "Great Divide" in supply chains refers to the separation of processes, activities and
metrics that exist between: - Answers -demand focused activities and supply focused
activities
In what 3 ways can supply chain management positively impact the financial
performance of a business? - Answers -1. Enhance revenue- by making improvements
in form, time, or place value
2. Reduce costs- resulting from efficiencies made in cost of goods sold
3. Improve asset management- "produce more profit with less assets" by operating with
less inventory and improving the productivity of the fixed assets used
What are the two competitive advantages businesses use in Supply Chain
Management? - Answers -1. Increasing Value Advantage
2. Increasing Productivity Advantage
What tactics would a company exhibit to gain an "increasing value advantage"? -
Answers -Having tailored service, reliability, and responsiveness.
(ex: your local grocery store gains competitive advantage by increasing their customer's
basic form, time & place value)
What tactics would a company exhibit to gain an "increasing productivity advantage"? -
Answers -Capacity utilization, asset turns, integration.
(ex: Walmart gains a competitive advantage by increasing their productivity by being a
cost leader)
What describes a business who has "optimal customer value"? - Answers -The optimal
strategy is to provide superior levels of form, time, and place AND to do so at a lower
price.
What megatrends will greatly challenge supply chain managers today? - Answers -
Disruptive technology, social changes, and talent/skills requirements.
Define Total Value Optimization (TVO) - Answers -Total value optimization (TVO)
involves finding the optimal balance between increasing revenue or market share and
minimizing total cost.
