BUAD 331 Test Quiz Test Exam Guide Questions/Answer
GUARANTEE A+ 2025/2026
Service strategy - customer and/or product segments get different levels of
service
- stronger franchise with best customers
- lower logistics costs
- higher inventory turns
- reduced expediting
How do you create financial value in an organization? - Return on Asset
improvement
The Perfect Order - = # of orders perfect on all elements / total orders
"if you ain't perfect, you've failed"
Walmart elements examples: -
Capital costs - investment ($) in inventory
interest/financing expenses
Service costs - insurance on inventory
taxes on inventory
Storage Space costs - manufacturing plant warehouses
company owned warehouses
rented warehouses
public warehouses
Inventory Risk costs - obsolescence
damage
shrinkage (theft)
relocation
What is the Cost of Inventory? - capital costs
service costs
storage space costs
inventory risk costs
,ABC and ABM are... - allocation techniques that make it possible to more
precisely assess the segment profitability
Allocations are more... - realistic than traditional cost accounting which
relies on sales volume or direct labor hours to allocate "overhead"
Shape your demand to... - match your supply
A (BLANK) must be taken when maximizing overall company
competitiveness - holistic financial perspective
Benchmarking - the comparison of metrics and processes with externally
focused best practice performance to introduce change and aspire to
superior performance standards
Purpose of benchmarking - - to answer the question of "are we
competitive?"
- to establish the ground for creative breakthroughs and move away from
tradition
- to provide externally-oriented performance input that is forward looking
Conventional change processes present... - solutions for a better future
without thoroughly diagnosing the present problem
- as a result, personnel recognize the risk of change instead of the risk of
not changing
Industry comparision - are we competitive?
Internal comparision - can we do it better?
"Best in Class" comparision - can we do it differently?
Apply the right... - resources (get support from top management)
Involve management from the (BLANK) under review - functional areas
Budget sufficient (BLANK) and (BLANK) to collect the necessary data -
time
, money
Analysis must be (BLANK) to relevant strategic issues - related
Analysis must drive what 3 things? - concrete actions
concrete plans
performance targets
Benchmarking must be viewed as both... - 1) a way to improve existing
processes and internal operations
2) learn new ways to do things
The using the supply chain implications of time, what can you predict most
accurately? - where you will be next week at this time
Planning Horizon and Uncertainty - - too much results in inventory
- too little results in customer service
The time it takes to procure, make and deliver the finished product to a
customer is often... - longer than the time the customer is prepared to wait
Lead Time Gap = - SC Lead Time - Customer's Order Cycle Time
Supply Chain Lead Time - procurement, manufacturing, and delivery of
order
Customer's Order Cycle Time - time that the customer is prepared to wait
on an order
In conventional organizations, the only way to close Lead Time Gap is to...
- attempt to forecast the market's requirements and carry just-in-case
inventory
Ideally, a reduction in the gap can be achieved by... - shortening the SC
Lead Time (pipeline time) while simultaneously trying to gain earlier
warning of requirements through improved visibility of demand
Cash-to-cash Cycle = - Days of Inventory + Days Accounts Receivable -
Days Accounts Payable
GUARANTEE A+ 2025/2026
Service strategy - customer and/or product segments get different levels of
service
- stronger franchise with best customers
- lower logistics costs
- higher inventory turns
- reduced expediting
How do you create financial value in an organization? - Return on Asset
improvement
The Perfect Order - = # of orders perfect on all elements / total orders
"if you ain't perfect, you've failed"
Walmart elements examples: -
Capital costs - investment ($) in inventory
interest/financing expenses
Service costs - insurance on inventory
taxes on inventory
Storage Space costs - manufacturing plant warehouses
company owned warehouses
rented warehouses
public warehouses
Inventory Risk costs - obsolescence
damage
shrinkage (theft)
relocation
What is the Cost of Inventory? - capital costs
service costs
storage space costs
inventory risk costs
,ABC and ABM are... - allocation techniques that make it possible to more
precisely assess the segment profitability
Allocations are more... - realistic than traditional cost accounting which
relies on sales volume or direct labor hours to allocate "overhead"
Shape your demand to... - match your supply
A (BLANK) must be taken when maximizing overall company
competitiveness - holistic financial perspective
Benchmarking - the comparison of metrics and processes with externally
focused best practice performance to introduce change and aspire to
superior performance standards
Purpose of benchmarking - - to answer the question of "are we
competitive?"
- to establish the ground for creative breakthroughs and move away from
tradition
- to provide externally-oriented performance input that is forward looking
Conventional change processes present... - solutions for a better future
without thoroughly diagnosing the present problem
- as a result, personnel recognize the risk of change instead of the risk of
not changing
Industry comparision - are we competitive?
Internal comparision - can we do it better?
"Best in Class" comparision - can we do it differently?
Apply the right... - resources (get support from top management)
Involve management from the (BLANK) under review - functional areas
Budget sufficient (BLANK) and (BLANK) to collect the necessary data -
time
, money
Analysis must be (BLANK) to relevant strategic issues - related
Analysis must drive what 3 things? - concrete actions
concrete plans
performance targets
Benchmarking must be viewed as both... - 1) a way to improve existing
processes and internal operations
2) learn new ways to do things
The using the supply chain implications of time, what can you predict most
accurately? - where you will be next week at this time
Planning Horizon and Uncertainty - - too much results in inventory
- too little results in customer service
The time it takes to procure, make and deliver the finished product to a
customer is often... - longer than the time the customer is prepared to wait
Lead Time Gap = - SC Lead Time - Customer's Order Cycle Time
Supply Chain Lead Time - procurement, manufacturing, and delivery of
order
Customer's Order Cycle Time - time that the customer is prepared to wait
on an order
In conventional organizations, the only way to close Lead Time Gap is to...
- attempt to forecast the market's requirements and carry just-in-case
inventory
Ideally, a reduction in the gap can be achieved by... - shortening the SC
Lead Time (pipeline time) while simultaneously trying to gain earlier
warning of requirements through improved visibility of demand
Cash-to-cash Cycle = - Days of Inventory + Days Accounts Receivable -
Days Accounts Payable
