TCU JORDAN SUPPLY CHAIN FINAL
EXAM QUESTIONS AND ANSWERS
What is Supply Chain Management? - Correct Answers -The design and execution of
relationships and flows that connect the parties and processes across a supply chain
Drivers of SCM: - Correct Answers --Competition
-Consumer Behavior
-Visibility
-Speed
What is a supply chain and its components? (Upstream, Downstream, tier suppliers) -
Correct Answers -A Supply Chain is the global network of organizations and activities
involved in (1) designing a set of goods and services and their related processes, (2)
transforming inputs into goods and services, (3) consuming these goods and services,
and (4) disposing of these goods and services
-Upstream product suppliers typically provide raw materials, components, and services
directly related to manufacturing or service production processes
-Downstream product suppliers typically provide enhancements to finished goods such
as assembly, packaging, storage, and transportation services
-Resource and Technology suppliers provide equipment, labor, product, and process
designs, and other resources needed to support a firm's processes
-Aftermarket Suppliers provide product service and support such as maintenance,
repair, disposal, or recycling
The Differences Between Goods and Services: - Correct Answers -Goods=Tangible,
can be inventoried, little customer contact, long lead times, often capital-intensive,
quality easily assessed, and material is transformed
Services=Intangible, cannot be inventoried, extensive customer contact, short lead
times, often labor-intensive, quality more difficult to assess, information or the customer
is transformed
Why are companies focusing on the supply chain today? - Correct Answers -
Organizations are quickly realizing the tremendous value they can gain from having
visibility throughout their supply chain
,According to ISM, what is the operational importance of SCM? - Correct Answers --
Provide an uninterrupted flow of material and services to the operating systems
-Keep inventory investment at the minimum
-Maximize quality
-Find and develop competent sources of supply
-Standardize requirements for product and services
-Purchase materials and services at the lowest total cost of ownership
-Foster cross-functional relationships
Customer Value and The Value Proposition - Correct Answers -Value
Proposition=Tangible and intangibles that customers expect from a firm/firm's offerings
that are valued by customers and different from competitors,
Set of benefits or values that a company promises to deliver to customers to satisfy their
needs
How can you create value for a customer and capture value for your organization? -
Correct Answers --Create features that a company will pay for
-Create a difficult to imitate source of differentiation
-Satisfy financial and strategic firm objectives
-Use the firm's capabilities and supply chain
-Know how to solve customer problems
-Profit Margin is the Value created by a company minus the Cost of Creating that value
Value Created-Cost of Creating Value=Profit Margin
What is the difference between customer satisfaction and perceived customer value? -
Correct Answers -Customer satisfaction is when you have met or exceeded the
customer's expectations or the extent to which a product's perceived performance
matches a buyer's expectations. Perceived customer value is the difference between
total customer value and total customer cost.
Perceived Customer Value= Total Customer Value- Total Customer Cost
Digital Darwinism - Correct Answers -The phenomenon when technology and society
evolve faster than an organization can adapt, implies that organizations which cannot
adapt to the new demands placed on them for surviving in the information age are
doomed to extinction
How has technology impacted the supply chain? - Correct Answers -Advances in
communications, computers, and transportation techniques have enabled extensive
connectivity and the growth of supply chain partnerships. With easier information
transactions, there is less of a need to include all operations at one location or within
one organizational boundary. Constant information sharing between supply chain
partners improves efficiencies in planning, material movements, and the transfer of
funds. At the same time, growing transportation technologies and infrastructures have
made the shipping of goods and the transport of people faster, more reliable, and more
, economical than in decades past. Transportation infrastructure continues to be built in
developing countries.
Levels of Planning in Supply Chain and the type of decision to apply to each: - Correct
Answers --Strategic Planning=A type of planning that addresses long-term decisions
that define the operations objectives and capabilities for the firm and its partners,
includes high-level product and resource design decisions that define the overall
operations objectives and capabilities for the firm and its partners (what products to
develop, where to locate plants)
-Tactical Planning=A type of planning that addresses intermediate-term decisions to
target aggregate product demands and establish how operational capacities will be
used to meet them, seeks to identify and target customer demands for aggregate
product families and to establish inventory and capacity plans needed to satisfy these
demands (Spans Months)
-Operational Planning=A type of planning that establishes short-term priorities and
schedules to guide operational resource allocations, inventory and requirements
planning activities address demands, materials, and capacities at the individual product
level (Spans weeks or days)
Critical Customer and The Order Needs Assessment of Order Winners, Losers, and
Qualifiers - Correct Answers --Critical Customer=critical to a firm's success and receives
a firm's focus
-Order Winner=why customers choose your firm (flexibility and customization)
-Order Loser=why customers avoid your firm
-Order Qualifier=Minimum standards to be met (affordable price and high quality)
What is Corporate Strategic Planning? - Correct Answers -Corporate Strategic Planning
determines the overall mission of the firm and the types of business that the firm wants
to be in. For a large, multidivisional firm, key decisions in corporate strategy address
what businesses to acquire and what businesses to divest. Corporate Strategy typically
covers a long time horizon, setting the overall values, direction, and goals of the firm as
a whole. It also establishes how business performance will be measured and how risks
will be managed. (Broadest in scope and least constrained)
SWOT, SCOR, Balanced Scorecard, and Strategic Profit Models (and when to apply
them) - Correct Answers --SWOT=Stands for strengths, weaknesses, opportunities, and
threats. A strategic planning technique that helps firms identify opportunities where they
can develop a sustainable competitive advantage and areas where the firm is
significantly at risk, also helps managers match strategies with strengths and
opportunities while also reducing risks associated with weaknesses and threats. SWOT
can be used in various ways-to kick off strategic thinking or as a serious detailed
strategic assessment/planning tool
-SCOR=Stands for Supply Chain Operational Reference Model. A model for assessing,
charting, and describing, supply chain processes and their performance. Addresses 5
dimensions of performance
EXAM QUESTIONS AND ANSWERS
What is Supply Chain Management? - Correct Answers -The design and execution of
relationships and flows that connect the parties and processes across a supply chain
Drivers of SCM: - Correct Answers --Competition
-Consumer Behavior
-Visibility
-Speed
What is a supply chain and its components? (Upstream, Downstream, tier suppliers) -
Correct Answers -A Supply Chain is the global network of organizations and activities
involved in (1) designing a set of goods and services and their related processes, (2)
transforming inputs into goods and services, (3) consuming these goods and services,
and (4) disposing of these goods and services
-Upstream product suppliers typically provide raw materials, components, and services
directly related to manufacturing or service production processes
-Downstream product suppliers typically provide enhancements to finished goods such
as assembly, packaging, storage, and transportation services
-Resource and Technology suppliers provide equipment, labor, product, and process
designs, and other resources needed to support a firm's processes
-Aftermarket Suppliers provide product service and support such as maintenance,
repair, disposal, or recycling
The Differences Between Goods and Services: - Correct Answers -Goods=Tangible,
can be inventoried, little customer contact, long lead times, often capital-intensive,
quality easily assessed, and material is transformed
Services=Intangible, cannot be inventoried, extensive customer contact, short lead
times, often labor-intensive, quality more difficult to assess, information or the customer
is transformed
Why are companies focusing on the supply chain today? - Correct Answers -
Organizations are quickly realizing the tremendous value they can gain from having
visibility throughout their supply chain
,According to ISM, what is the operational importance of SCM? - Correct Answers --
Provide an uninterrupted flow of material and services to the operating systems
-Keep inventory investment at the minimum
-Maximize quality
-Find and develop competent sources of supply
-Standardize requirements for product and services
-Purchase materials and services at the lowest total cost of ownership
-Foster cross-functional relationships
Customer Value and The Value Proposition - Correct Answers -Value
Proposition=Tangible and intangibles that customers expect from a firm/firm's offerings
that are valued by customers and different from competitors,
Set of benefits or values that a company promises to deliver to customers to satisfy their
needs
How can you create value for a customer and capture value for your organization? -
Correct Answers --Create features that a company will pay for
-Create a difficult to imitate source of differentiation
-Satisfy financial and strategic firm objectives
-Use the firm's capabilities and supply chain
-Know how to solve customer problems
-Profit Margin is the Value created by a company minus the Cost of Creating that value
Value Created-Cost of Creating Value=Profit Margin
What is the difference between customer satisfaction and perceived customer value? -
Correct Answers -Customer satisfaction is when you have met or exceeded the
customer's expectations or the extent to which a product's perceived performance
matches a buyer's expectations. Perceived customer value is the difference between
total customer value and total customer cost.
Perceived Customer Value= Total Customer Value- Total Customer Cost
Digital Darwinism - Correct Answers -The phenomenon when technology and society
evolve faster than an organization can adapt, implies that organizations which cannot
adapt to the new demands placed on them for surviving in the information age are
doomed to extinction
How has technology impacted the supply chain? - Correct Answers -Advances in
communications, computers, and transportation techniques have enabled extensive
connectivity and the growth of supply chain partnerships. With easier information
transactions, there is less of a need to include all operations at one location or within
one organizational boundary. Constant information sharing between supply chain
partners improves efficiencies in planning, material movements, and the transfer of
funds. At the same time, growing transportation technologies and infrastructures have
made the shipping of goods and the transport of people faster, more reliable, and more
, economical than in decades past. Transportation infrastructure continues to be built in
developing countries.
Levels of Planning in Supply Chain and the type of decision to apply to each: - Correct
Answers --Strategic Planning=A type of planning that addresses long-term decisions
that define the operations objectives and capabilities for the firm and its partners,
includes high-level product and resource design decisions that define the overall
operations objectives and capabilities for the firm and its partners (what products to
develop, where to locate plants)
-Tactical Planning=A type of planning that addresses intermediate-term decisions to
target aggregate product demands and establish how operational capacities will be
used to meet them, seeks to identify and target customer demands for aggregate
product families and to establish inventory and capacity plans needed to satisfy these
demands (Spans Months)
-Operational Planning=A type of planning that establishes short-term priorities and
schedules to guide operational resource allocations, inventory and requirements
planning activities address demands, materials, and capacities at the individual product
level (Spans weeks or days)
Critical Customer and The Order Needs Assessment of Order Winners, Losers, and
Qualifiers - Correct Answers --Critical Customer=critical to a firm's success and receives
a firm's focus
-Order Winner=why customers choose your firm (flexibility and customization)
-Order Loser=why customers avoid your firm
-Order Qualifier=Minimum standards to be met (affordable price and high quality)
What is Corporate Strategic Planning? - Correct Answers -Corporate Strategic Planning
determines the overall mission of the firm and the types of business that the firm wants
to be in. For a large, multidivisional firm, key decisions in corporate strategy address
what businesses to acquire and what businesses to divest. Corporate Strategy typically
covers a long time horizon, setting the overall values, direction, and goals of the firm as
a whole. It also establishes how business performance will be measured and how risks
will be managed. (Broadest in scope and least constrained)
SWOT, SCOR, Balanced Scorecard, and Strategic Profit Models (and when to apply
them) - Correct Answers --SWOT=Stands for strengths, weaknesses, opportunities, and
threats. A strategic planning technique that helps firms identify opportunities where they
can develop a sustainable competitive advantage and areas where the firm is
significantly at risk, also helps managers match strategies with strengths and
opportunities while also reducing risks associated with weaknesses and threats. SWOT
can be used in various ways-to kick off strategic thinking or as a serious detailed
strategic assessment/planning tool
-SCOR=Stands for Supply Chain Operational Reference Model. A model for assessing,
charting, and describing, supply chain processes and their performance. Addresses 5
dimensions of performance
