BMGT 322 Exam 4 questions and
answers graded A+
Functional Product - correct answer ✔✔satisfy basic needs, which don't change much overtime,
they have stable, predictable demand and long life cycles. But their stability invites competition,
which often leads to low profit margins
Innovative Product - correct answer ✔✔give customers an additional reason to buy their
offerings; Although innovation can enable a company to achieve higher profit margins, the very
newness of innovative products makes demand for them un-predictable. In addition, their life
cycle is short-usually just a few months
Physically Efficient Supply Chain - correct answer ✔✔-supply predictable demand efficiently at
the lowest possible cost
-maintain high average utilization rate
-generate high turns and minimize inventory throughout the chain
-shorten lead time as long as it doesn't increase cost
-Approach to choosing suppliers: select primarily for cost and quality
-Product-design strategy: maximize performance and minimize cost
Market-Responsive Supply Chain - correct answer ✔✔-respond quickly to unpredictable
demand in order to minimize stock outs, forced markdowns, and obsolete inventory
-deploy excess buffer capacity
-deploy significant buffer stocks of parts or finished goods
-invest aggressively in ways to reduce lead time
-Approach to choosing suppliers: select primarily for speed, flexibility, and quality
, -Product-design strategy: use modular design in order to postpone product differentiation for as
long as possible
Supply chain - correct answer ✔✔chain of activities that provide supplies and services needed
to produce goods and services
Supply Chain Risk - correct answer ✔✔1. Processes- raw material and component availability,
quality, logistics
2. Controls- management metrics & reliable secure communication for financial transaction,
product designs, & logistics scheduling
3. Environment- customs duties, tariffs, security screening, natural disaster, currency
fluctuations, terrorist attacks, & political issues
make-or-buy decision - correct answer ✔✔choice b/n producing a component or service in
house or purchasing from an outside source
outsourcing - correct answer ✔✔transferring a firm's activities that have traditionally been
internal to external suppliers
vertical integration - correct answer ✔✔developing ability to produce goods or services
previously purchased or actually buying a supplier or distributor
Keiretsu - correct answer ✔✔describes suppliers who become part of a company coalition
virtual companies - correct answer ✔✔companies that rely on a variety of supplier relationships
to provide services on demand aka corporations or network companies
bullwhip effect - correct answer ✔✔increasing fluctuation in orders that often occurs as orders
move through the supply chain
answers graded A+
Functional Product - correct answer ✔✔satisfy basic needs, which don't change much overtime,
they have stable, predictable demand and long life cycles. But their stability invites competition,
which often leads to low profit margins
Innovative Product - correct answer ✔✔give customers an additional reason to buy their
offerings; Although innovation can enable a company to achieve higher profit margins, the very
newness of innovative products makes demand for them un-predictable. In addition, their life
cycle is short-usually just a few months
Physically Efficient Supply Chain - correct answer ✔✔-supply predictable demand efficiently at
the lowest possible cost
-maintain high average utilization rate
-generate high turns and minimize inventory throughout the chain
-shorten lead time as long as it doesn't increase cost
-Approach to choosing suppliers: select primarily for cost and quality
-Product-design strategy: maximize performance and minimize cost
Market-Responsive Supply Chain - correct answer ✔✔-respond quickly to unpredictable
demand in order to minimize stock outs, forced markdowns, and obsolete inventory
-deploy excess buffer capacity
-deploy significant buffer stocks of parts or finished goods
-invest aggressively in ways to reduce lead time
-Approach to choosing suppliers: select primarily for speed, flexibility, and quality
, -Product-design strategy: use modular design in order to postpone product differentiation for as
long as possible
Supply chain - correct answer ✔✔chain of activities that provide supplies and services needed
to produce goods and services
Supply Chain Risk - correct answer ✔✔1. Processes- raw material and component availability,
quality, logistics
2. Controls- management metrics & reliable secure communication for financial transaction,
product designs, & logistics scheduling
3. Environment- customs duties, tariffs, security screening, natural disaster, currency
fluctuations, terrorist attacks, & political issues
make-or-buy decision - correct answer ✔✔choice b/n producing a component or service in
house or purchasing from an outside source
outsourcing - correct answer ✔✔transferring a firm's activities that have traditionally been
internal to external suppliers
vertical integration - correct answer ✔✔developing ability to produce goods or services
previously purchased or actually buying a supplier or distributor
Keiretsu - correct answer ✔✔describes suppliers who become part of a company coalition
virtual companies - correct answer ✔✔companies that rely on a variety of supplier relationships
to provide services on demand aka corporations or network companies
bullwhip effect - correct answer ✔✔increasing fluctuation in orders that often occurs as orders
move through the supply chain
