Question 1

Explain the role of each of the major drivers of supply chain performance.

Accepted Answer

Facilities are the where of the supply chain if we think of inventory as what is being passed along the supply chain and transportation as how it is passed along.They are the locations to or from which the inventory is transported.Within a facility,inventory is either processed or transformed into another state (manufacturing)or it is stored before being shipped to the next stage (warehousing).
Inventory exists in the supply chain because of a mismatch between supply and demand.An important role that inventory plays in the supply chain is to increase the amount of demand that can be satisfied by having product ready and available when the customer wants it.Another significant role inventory plays is to reduce cost by exploiting any economies of scale that may exist during both production and distribution.Inventory is spread throughout the supply chain from raw materials to work in process to finished goods that suppliers,manufacturers,distributors,and retailers hold.Inventory is a major source of cost in a supply chain and it has a huge impact on responsiveness.The location and quantity of inventory can move the supply chain from one end of the responsiveness spectrum to the other.Inventory also has a significant impact on the material flow time in a supply chain.Another important area where inventory has a significant impact is throughput.Inventory and flow time are synonymous in a supply chain.Managers should use actions that lower the amount of inventory needed without increasing cost or reducing responsiveness,because reduced flow time can be a significant advantage in a supply chain.
Transportation moves product between different stages in a supply chain.Like the other supply chain drivers,transportation has a large impact on both responsiveness and efficiency.Faster transportation,whether in the form of different modes of transportation or different amounts being transported,allows a supply chain to be more responsive but reduces its efficiency.The type of transportation a company uses also affects the inventory and facility locations in the supply chain.
Information could be overlooked as a major supply chain driver because it does not have a physical presence.Information,however,deeply affects every part of the supply chain.Its impact is easy to underestimate as information affects a supply chain in many different ways.Information serves as the connection between the supply chain's various stages,allowing them to coordinate and bring about many of the benefits of maximizing total supply chain profitability.Information is also crucial to the daily operations of each stage in a supply chain.For instance,a production scheduling system uses information on demand to create a schedule that allows a factory to produce the right products in an efficient manner.A warehouse management system uses information to create visibility of the warehouse's inventory.The company can then use this information to determine whether new orders can be filled.

Question 2

Geoff strolled into his local big box retailer in search of sunflower seeds for the flock of cardinals that graced his property during the cold winter.Much to his (and the cardinals')dismay,the shelf where the 50 pound bags of sunflower seeds were kept was bare.He pirouetted and left the store in disgust,empty-handed and fearing the wrath of an angry flock of cardinals when he returned home.This sad scenario illustrates

Accepted Answer

A) safety inventory. 
B) cycle inventory. 
C) a markdown. 
D) a lost sale. 
A) safety inventory. 
B) cycle inventory. 
C) a markdown. 
D) a lost sale. D

Question 3

Blue Nile is an online retailer of diamonds that has used responsive transportation to ship diamonds to customers in the United States,Canada,and several countries in Europe and Asia.As part of an audit,their logistics manager has been asked to calculate the sum of the fraction transported by mode for all modalities.What should this sum equal?

Accepted Answer

A) 100 
B) It depends on the number of modes used by Blue Nile. 
C) 1 
D) The total value of diamonds shipped in that year. 
A) 100 
B) It depends on the number of modes used by Blue Nile. 
C) 1 
D) The total value of diamonds shipped in that year. D

Question 4

A company using a faster mode of transportation can function as effectively with fewer facilities than a company using a slower mode of transportation.

Accepted Answer

A) True 
 B)False

Question 5

The two major types of facilities are

Accepted Answer

A) distribution sites and storage sites. 
B) production sites and distribution sites. 
C) production sites and storage sites. 
D) retail sites and distribution sites. 
A) distribution sites and storage sites. 
B) production sites and distribution sites. 
C) production sites and storage sites. 
D) retail sites and distribution sites.

Question 6

The average amount of inventory used to satisfy demand between receipt of supplier shipments is referred to as

Accepted Answer

A) cycle inventory. 
B) safety inventory. 
C) seasonal inventory. 
D) sourcing. 
A) cycle inventory. 
B) safety inventory. 
C) seasonal inventory. 
D) sourcing.

Question 7

Seasonal inventory is inventory that is built up to counter predictable variability in demand.

Accepted Answer

A) True 
 B)False

Question 8

A facility with little excess capacity will likely be no more or less efficient per unit of product it produces than one with a lot of unused capacity.

Accepted Answer

A) True 
 B)False

Question 9

Explain the basic trade-off between responsiveness and efficiency for each of the major drivers of supply chain performance.

Accepted Answer

The fundamental trade-off when making fa

Question 10

On a recent road trip to the Big Easy,the absentee landlord recorded his gasoline purchases in a logbook that he intended to support his rental expenses for the year.The entries are in the table below: $$\begin{array} { | c | c | } 
\hline \text { Gallons } & \text { Total Cost } \
\hline 15 & \$ 44.40 \
\hline 16 & \$ 36.32 \
\hline 13.5 & \$ 34.70 \
\hline 18 & \$ 45.90 \
\hline 8 & \$ 23.36 \
\hline 12 & \$ 30.72 \
\hline
\end{array}$$ What is the range of sale price of the gasoline per gallon?

Accepted Answer

A) 7.51 
B) 10 
C) 0.69 
D) 22.54 
A) 7.51 
B) 10 
C) 0.69 
D) 22.54

Question 11

Which of the following are key components of information that must be analyzed to increase efficiency and improve effectiveness in a supply chain?

Accepted Answer

A) Software selection 
B) Source selection 
C) Warehouse selection 
D) Forecasting and aggregate planning 
A) Software selection 
B) Source selection 
C) Warehouse selection 
D) Forecasting and aggregate planning

Question 12

Safety inventory is held because

Accepted Answer

A) the world is perfectly predictable. 
B) demand is uncertain and may exceed expectations. 
C) it involves making a trade-off between the costs of having too much inventory and the costs of losing sales due to not having enough inventory. 
D) it focuses on processes that are external to the firm. 
A) the world is perfectly predictable. 
B) demand is uncertain and may exceed expectations. 
C) it involves making a trade-off between the costs of having too much inventory and the costs of losing sales due to not having enough inventory. 
D) it focuses on processes that are external to the firm.

Question 13

The major drivers of supply chain performance are customers,facilities,inventory,transportation,and information.

Accepted Answer

A) True 
 B)False

Question 14

The art and science of making projections about what future demand and conditions will be is

Accepted Answer

A) supply chain coordination. 
B) forecasting. 
C) aggregate planning. 
D) revenue management. 
A) supply chain coordination. 
B) forecasting. 
C) aggregate planning. 
D) revenue management.

Question 15

The places in the supply chain network where product is stored,assembled,or fabricated are known as

Accepted Answer

A) facilities. 
B) inventory. 
C) transportation. 
D) information. 
A) facilities. 
B) inventory. 
C) transportation. 
D) information.

Question 16

Cash to case (C2C)is the duration of time from when cash enters the process as cost to when it returns as collected revenue.Best in class performance on this metric is a C2C that is almost zero.

Accepted Answer

A) True 
 B)False

Question 17

The data and analysis concerning facilities,inventory,transportation,and customers throughout the supply chain is known as

Accepted Answer

A) facilities. 
B) inventory. 
C) transportation. 
D) information. 
A) facilities. 
B) inventory. 
C) transportation. 
D) information.

Question 18

Blue Nile is an online retailer of diamonds that has used responsive transportation to ship diamonds to customers in the United States,Canada,and several countries in Europe and Asia.Which is the mode of transportation used with this strategy?

Accepted Answer

A) Sea 
B) Rail 
C) Internet 
D) Air 
A) Sea 
B) Rail 
C) Internet 
D) Air

Question 19

Katz reports total revenue of $375,650,cost of goods sold of $267,400 and net income of $48,325.Their total assets are $784,325 and total liabilities are $387,775.What is their return on equity (ROE)?

Accepted Answer

A) 33.72% 
B) 12.19% 
C) 6.16% 
D) 21.38% 
A) 33.72% 
B) 12.19% 
C) 6.16% 
D) 21.38%

Question 20

Which of the following would result in lower return on assets for Katz if all other entries in their selected financial data were held constant?

Accepted Answer

A) A reduction in earnings before interest and taxes 
B) An increase in asset turnover 
C) A reduction in total assets 
D) An increase in profit margin 
A) A reduction in earnings before interest and taxes 
B) An increase in asset turnover 
C) A reduction in total assets 
D) An increase in profit margin

Explain the role of each of the major drivers of supply chain performance.

A company using a faster mode of transportation can function as effectively with fewer facilities than a company using a slower mode of transportation.

The two major types of facilities are

The average amount of inventory used to satisfy demand between receipt of supplier shipments is referred to as

Seasonal inventory is inventory that is built up to counter predictable variability in demand.

A facility with little excess capacity will likely be no more or less efficient per unit of product it produces than one with a lot of unused capacity.

Explain the basic trade-off between responsiveness and efficiency for each of the major drivers of supply chain performance.

Which of the following are key components of information that must be analyzed to increase efficiency and improve effectiveness in a supply chain?

Safety inventory is held because

The major drivers of supply chain performance are customers,facilities,inventory,transportation,and information.

The art and science of making projections about what future demand and conditions will be is

The places in the supply chain network where product is stored,assembled,or fabricated are known as

Cash to case (C2C)is the duration of time from when cash enters the process as cost to when it returns as collected revenue.Best in class performance on this metric is a C2C that is almost zero.

The data and analysis concerning facilities,inventory,transportation,and customers throughout the supply chain is known as

Blue Nile is an online retailer of diamonds that has used responsive transportation to ship diamonds to customers in the United States,Canada,and several countries in Europe and Asia.Which is the mode of transportation used with this strategy?

Katz reports total revenue of $375,650,cost of goods sold of $267,400 and net income of $48,325.Their total assets are $784,325 and total liabilities are $387,775.What is their return on equity (ROE)?

Which of the following would result in lower return on assets for Katz if all other entries in their selected financial data were held constant?

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters

Exam 3: Supply Chain Drivers and Metrics

Explain the role of each of the major drivers of supply chain performance.

A company using a faster mode of transportation can function as effectively with fewer facilities than a company using a slower mode of transportation.

The two major types of facilities are

The average amount of inventory used to satisfy demand between receipt of supplier shipments is referred to as

Seasonal inventory is inventory that is built up to counter predictable variability in demand.

A facility with little excess capacity will likely be no more or less efficient per unit of product it produces than one with a lot of unused capacity.

Explain the basic trade-off between responsiveness and efficiency for each of the major drivers of supply chain performance.

Which of the following are key components of information that must be analyzed to increase efficiency and improve effectiveness in a supply chain?

Safety inventory is held because

The major drivers of supply chain performance are customers,facilities,inventory,transportation,and information.

The art and science of making projections about what future demand and conditions will be is

The places in the supply chain network where product is stored,assembled,or fabricated are known as

Cash to case (C2C)is the duration of time from when cash enters the process as cost to when it returns as collected revenue.Best in class performance on this metric is a C2C that is almost zero.

The data and analysis concerning facilities,inventory,transportation,and customers throughout the supply chain is known as

Blue Nile is an online retailer of diamonds that has used responsive transportation to ship diamonds to customers in the United States,Canada,and several countries in Europe and Asia.Which is the mode of transportation used with this strategy?

Katz reports total revenue of $375,650,cost of goods sold of $267,400 and net income of $48,325.Their total assets are $784,325 and total liabilities are $387,775.What is their return on equity (ROE)?

Which of the following would result in lower return on assets for Katz if all other entries in their selected financial data were held constant?

Understanding the Supply Chain

Achieving Strategic Fit in a Supply Chain

Designing Distribution Networks and Applications to E-Business

Network Design in the Supply Chain

Designing Global Supply Chain Networks

Demand Forecasting in a Supply Chain

Aggregate Planning in a Supply Chain

Sales and Operations Planning: Planning Supply and Demand

Coordination in a Supply Chain

Managing Economies of Scale in a Supply Chain: Cycle Inventory

Managing Uncertainty in a Supply Chain: Safety Inventory

Linking Product Availability to Profits

Transportation in a Supply Chain

Sourcing Decisions in a Supply Chain

Pricing and Revenue Management in a Supply Chain

Sustainability and the Supply Chain

Filters