UTK BUAD 331 EXAM 1 QUESTIONS
WITH CORRECT DETAILED
ANSWERS GRADED A
Demand Planning - Answer-is the process by which customer demand for upcoming
time periods is estimated at appropriate levels of detail to allow the business to make
necessary preparations.
supply planning - Answer-process takes the demand forecast and plans what materials
need to be purchased from suppliers over the coming periods. This process normally
has multiple levels.
manufacturing and capacity planning - Answer-function within supply chains also needs
to have robust plans in place to operate efficiently and effectively.
logistics and distribution planning - Answer-develops the plan for how much inventory to
maintain and where to store it as well as the movement of this inventory to the customer
at the appropriate time and cost.
Balanced Scorecard - Answer-a combination of performance measures directed toward
the company's long and short term goals and used as the basis for awarding incentive
pay (finance, internal processes, learning and growth, customer)
Perfect Order Concept - Answer-An order that is received, processed, picked, packed,
shipped, documented, and delivered on time without damage
Benchmarking - Answer-is simply the comparison of a process, goal, or area with a
similar feature somewhere else.
Internal Benchmarking - Answer-involves comparing a process or area with similar
processes within the same firm.
competitive benchmarking - Answer-involves comparing a process or area with similar
processes at competitor firms. (advantage/disadvantage)
process/best-in-class benchmarking - Answer-companies search for other organizations
that are known across industries for their prowess in a particular area.
Data Visualization - Answer-is a general term that refers to using charts, graphs, or
more typically specialized software to visually display data and help identify insights.
, control towers - Answer-are IT systems and organizations of people who manage them
that are focused on a particular process or area across the end-to-end supply chain.
dashboard - Answer-is a single source for all relevant metrics that a management team
or its stakeholders can access in real-time
capital costs - Answer-Investment in inventory, Interest/Financing Expenses.
service costs - Answer-insurance on inventory and taxes on inventory
Storage Space Cost - Answer-raw materials warehouse, finished goods warehouse,
utilities, security fees
Inventory Risk Cost - Answer-obsolescence, damage, shrinkage (theft), relocation
revenue - Answer-Represents the products and services sold to customers during a
period of time
costs - Answer-Represent the expenses incurred to generate the revenues earned
during a period of time
assets - Answer-Typically consist of cash and investment accounts; inventory; accounts
receivable; and property, plant, and equipment
Return on Assets - Answer-is a commonly used financial measurement of a company's
ability to turn assets into profits
profit margin - Answer-Net Income/Sales
Asset Turnover - Answer-Sales/Total Assets
most important supply chain priority - Answer-improving product/service quality
cost of sales (COGS) - Answer-represents the cost of products sold. these costs are a
combination of direct labor, direct material, and production support costs. The supply
chain impacts....... more than any other cost type.
Research and development costs - Answer-This cost captures the resources the firm
uses to research new products and new processes and to develop potential products
into market viability.
Selling, general, and administrative (SG&A) costs - Answer-This category captures the
costs associated with the sales and marketing functions, as well as distribution of the
product to customers. It also includes the general costs of running the business, such
as finance, human resources, and administration.
WITH CORRECT DETAILED
ANSWERS GRADED A
Demand Planning - Answer-is the process by which customer demand for upcoming
time periods is estimated at appropriate levels of detail to allow the business to make
necessary preparations.
supply planning - Answer-process takes the demand forecast and plans what materials
need to be purchased from suppliers over the coming periods. This process normally
has multiple levels.
manufacturing and capacity planning - Answer-function within supply chains also needs
to have robust plans in place to operate efficiently and effectively.
logistics and distribution planning - Answer-develops the plan for how much inventory to
maintain and where to store it as well as the movement of this inventory to the customer
at the appropriate time and cost.
Balanced Scorecard - Answer-a combination of performance measures directed toward
the company's long and short term goals and used as the basis for awarding incentive
pay (finance, internal processes, learning and growth, customer)
Perfect Order Concept - Answer-An order that is received, processed, picked, packed,
shipped, documented, and delivered on time without damage
Benchmarking - Answer-is simply the comparison of a process, goal, or area with a
similar feature somewhere else.
Internal Benchmarking - Answer-involves comparing a process or area with similar
processes within the same firm.
competitive benchmarking - Answer-involves comparing a process or area with similar
processes at competitor firms. (advantage/disadvantage)
process/best-in-class benchmarking - Answer-companies search for other organizations
that are known across industries for their prowess in a particular area.
Data Visualization - Answer-is a general term that refers to using charts, graphs, or
more typically specialized software to visually display data and help identify insights.
, control towers - Answer-are IT systems and organizations of people who manage them
that are focused on a particular process or area across the end-to-end supply chain.
dashboard - Answer-is a single source for all relevant metrics that a management team
or its stakeholders can access in real-time
capital costs - Answer-Investment in inventory, Interest/Financing Expenses.
service costs - Answer-insurance on inventory and taxes on inventory
Storage Space Cost - Answer-raw materials warehouse, finished goods warehouse,
utilities, security fees
Inventory Risk Cost - Answer-obsolescence, damage, shrinkage (theft), relocation
revenue - Answer-Represents the products and services sold to customers during a
period of time
costs - Answer-Represent the expenses incurred to generate the revenues earned
during a period of time
assets - Answer-Typically consist of cash and investment accounts; inventory; accounts
receivable; and property, plant, and equipment
Return on Assets - Answer-is a commonly used financial measurement of a company's
ability to turn assets into profits
profit margin - Answer-Net Income/Sales
Asset Turnover - Answer-Sales/Total Assets
most important supply chain priority - Answer-improving product/service quality
cost of sales (COGS) - Answer-represents the cost of products sold. these costs are a
combination of direct labor, direct material, and production support costs. The supply
chain impacts....... more than any other cost type.
Research and development costs - Answer-This cost captures the resources the firm
uses to research new products and new processes and to develop potential products
into market viability.
Selling, general, and administrative (SG&A) costs - Answer-This category captures the
costs associated with the sales and marketing functions, as well as distribution of the
product to customers. It also includes the general costs of running the business, such
as finance, human resources, and administration.
