BUAD 331 Exam 4 |269 Questions with
Detailed Answers
Logistics Management - -is the part of SCM that plans, implements, and
controls the efficient, effective, forward and reverse flow and storage of
goods, services, and related information between the point of origin and the
point of consumption in order to meet customer requirements
- Supply Chain Management - -the management of upstream and
downstream relationships with suppliers and customers in order to deliver
superior customer value at less cost to the supply chain as a whole
- Customer Value - -= perception of benefits / total cost of ownership
- What overarching goal should drive the design and execution of any
company's supply chain? - -achieving customer value
- Customer Service - -actions that provide the time and place utility in the
transfer of goods and services
- What are the 3 components of customer service? - -1) pre-transactional
2) transactional
3) post transactional
- Default Customer Service strategy - -everyone gets the same level of
service
- "average" supplier to key accounts
- superior supplier to other customers
- high inventories
- excessive expediting
- Tailored Customer 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
Detailed Answers
Logistics Management - -is the part of SCM that plans, implements, and
controls the efficient, effective, forward and reverse flow and storage of
goods, services, and related information between the point of origin and the
point of consumption in order to meet customer requirements
- Supply Chain Management - -the management of upstream and
downstream relationships with suppliers and customers in order to deliver
superior customer value at less cost to the supply chain as a whole
- Customer Value - -= perception of benefits / total cost of ownership
- What overarching goal should drive the design and execution of any
company's supply chain? - -achieving customer value
- Customer Service - -actions that provide the time and place utility in the
transfer of goods and services
- What are the 3 components of customer service? - -1) pre-transactional
2) transactional
3) post transactional
- Default Customer Service strategy - -everyone gets the same level of
service
- "average" supplier to key accounts
- superior supplier to other customers
- high inventories
- excessive expediting
- Tailored Customer 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
