SCM 300: Final Exam Study Guide
Questions and Rationales 2026/2027
Update.
Performance metric (PM) - Answer a single performance measurement used to evaluate,
motivate, and improve performance.
System of metrics - Answer A group of metrics that collectively attempt to provide a multi-
dimensional view of a resource or outcome.
Reasons organizations use PMs - Answer (a) Helps to establish and support standards,
(b) Motivate good behavior,
(c) Identify trends,
(d) Managing large numbers of resources,
(e) Performance data can facilitate decision making and planning
Importance of Goals and Stakeholders - Answer key to developing metrics that meet
stakeholder goals is first recognizing all the stakeholders and then understanding their individual
goals.
Consequences of poor metrics - Answer ill-conceived metrics can motivate bad behavior: (ex)
SC goals are not met, poor output, waste, undesirable employee behaviors, managers may
make poor decisions, employee victimization, undeserved winners, lack of contentment.
Requirements of a good metric - Answer measureable, easily understood, attainable,
strategically oriented, easy to measure, provides value, provides guidance, cheater proof
SMART metrics - Answer a metric that is Specific, Measurable, Attainable, Relevant, and
Timely. A helpful device that can guide managers in the development of useful managerial
metrics.
3 Key measurement system attributes - Answer (1) Effective: were the desired goals met?
(2) Efficient: A measure of the resources used in the process.
(3) Adaptable: measure of the conditions under which the tasks were completed.
Keys to designing a system of metrics - Answer Stakeholders and goals, Good metrics,
Simplicity, Completeness, Redundancy (avoid), Continuous improvement, Leadership
, KPIs (Key Performance Indicators) - Answer Individual performance metrics identified by the
company as being imperative to achieving the organization's most important goals.
Executive dashboards - Answer computer-generated visual representation of a company's
performance that is often available to executives on any of their digital devices. Often include
KPIs, real-time and historical data, and color-coded performances centers that helps them
quickly identify positive, negative, and neutral output.
Managerial paralysis - Answer situation where managers are inundated with data. This slows
decision-making and may result in managers stalling or avoiding decision-making.
Common measurement pitfalls - Answer Managers fail to use the data, Blind belief in
institutional metrics, incomplete measurements, Utilizing too many metrics, Driving toward
perfection may waste resources, What do those numbers really mean?
Shared metrics - Answer A metric that impacted by two related parties.
Balanced scorecard (BSC) - Answer performance management tool that focuses on strategic
activity and outcomes. (tracks 4 different traditional output areas.)
(1) Financial results
(2) Customer-related results
(3) Internal business process results,
(4) Learning and growth results.
-All of these are used to locate problems before they impact financial results.
SCOR Model (Supply Chain Operations Reference Model) - Answer Measurement tool that
allows SC partners to track performance, communicate progress, and develop opportunities for
improvement. (5 primary SC processes: Plan, Source, Make, Deliver, Return) This is a tool used
to integrate the SC.
Total SCM Costs - Answer cost of every process, material, fee, defect, etc. that runs through
the SC.
Cash-to-cash cycle - Answer measure of the number of days b/t the time a company pays their
supplier for inventory and the time that same company is paid for the same inventory by their
customer.
-Formula: (Days of Inventory on hand) + (Days of A/R owed to your company by your customer)
- (Days of A/P your company owes to suppliers).
Questions and Rationales 2026/2027
Update.
Performance metric (PM) - Answer a single performance measurement used to evaluate,
motivate, and improve performance.
System of metrics - Answer A group of metrics that collectively attempt to provide a multi-
dimensional view of a resource or outcome.
Reasons organizations use PMs - Answer (a) Helps to establish and support standards,
(b) Motivate good behavior,
(c) Identify trends,
(d) Managing large numbers of resources,
(e) Performance data can facilitate decision making and planning
Importance of Goals and Stakeholders - Answer key to developing metrics that meet
stakeholder goals is first recognizing all the stakeholders and then understanding their individual
goals.
Consequences of poor metrics - Answer ill-conceived metrics can motivate bad behavior: (ex)
SC goals are not met, poor output, waste, undesirable employee behaviors, managers may
make poor decisions, employee victimization, undeserved winners, lack of contentment.
Requirements of a good metric - Answer measureable, easily understood, attainable,
strategically oriented, easy to measure, provides value, provides guidance, cheater proof
SMART metrics - Answer a metric that is Specific, Measurable, Attainable, Relevant, and
Timely. A helpful device that can guide managers in the development of useful managerial
metrics.
3 Key measurement system attributes - Answer (1) Effective: were the desired goals met?
(2) Efficient: A measure of the resources used in the process.
(3) Adaptable: measure of the conditions under which the tasks were completed.
Keys to designing a system of metrics - Answer Stakeholders and goals, Good metrics,
Simplicity, Completeness, Redundancy (avoid), Continuous improvement, Leadership
, KPIs (Key Performance Indicators) - Answer Individual performance metrics identified by the
company as being imperative to achieving the organization's most important goals.
Executive dashboards - Answer computer-generated visual representation of a company's
performance that is often available to executives on any of their digital devices. Often include
KPIs, real-time and historical data, and color-coded performances centers that helps them
quickly identify positive, negative, and neutral output.
Managerial paralysis - Answer situation where managers are inundated with data. This slows
decision-making and may result in managers stalling or avoiding decision-making.
Common measurement pitfalls - Answer Managers fail to use the data, Blind belief in
institutional metrics, incomplete measurements, Utilizing too many metrics, Driving toward
perfection may waste resources, What do those numbers really mean?
Shared metrics - Answer A metric that impacted by two related parties.
Balanced scorecard (BSC) - Answer performance management tool that focuses on strategic
activity and outcomes. (tracks 4 different traditional output areas.)
(1) Financial results
(2) Customer-related results
(3) Internal business process results,
(4) Learning and growth results.
-All of these are used to locate problems before they impact financial results.
SCOR Model (Supply Chain Operations Reference Model) - Answer Measurement tool that
allows SC partners to track performance, communicate progress, and develop opportunities for
improvement. (5 primary SC processes: Plan, Source, Make, Deliver, Return) This is a tool used
to integrate the SC.
Total SCM Costs - Answer cost of every process, material, fee, defect, etc. that runs through
the SC.
Cash-to-cash cycle - Answer measure of the number of days b/t the time a company pays their
supplier for inventory and the time that same company is paid for the same inventory by their
customer.
-Formula: (Days of Inventory on hand) + (Days of A/R owed to your company by your customer)
- (Days of A/P your company owes to suppliers).
