Deck 2: Supply Chain Performance: Achieving Strategic Fit and Scope

Question 1

A company's supply chain strategy

A) defines the set of customer needs that it seeks to satisfy through its products and services.
B) specifies the portfolio of new products that it will try to develop.
C) specifies how the market will be segmented and how the product will be positioned, priced, and promoted.
D) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.
E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs.

Answer 1

D

Question 2

A company's competitive strategy defines the set of customer needs that it seeks to satisfy through its products and services.

Answer 2

True

Question 3

Supply chain strategy specifies what the operations,distribution,and service functions,whether performed in-house or outsourced,should do particularly well.

Answer 3

True

Question 4

A company's product development strategy specifies the portfolio of new products that it will try to develop.

Question 5

The value chain emphasizes the close relationship between all the functional strategies within a company.

Question 6

A company's product development strategy defines the set of customer needs that it seeks to satisfy through its products and services.

Question 7

Which of the following determines the nature of procurement of raw materials,transportation of materials to and from the company,manufacture of the product or operation to provide the service,and distribution of the product to the customer along with follow-up service?

A) Competitive strategy
B) Product development strategy
C) Marketing and sales strategy
D) Supply chain strategy
E) none of the above

Question 8

A company's marketing and sales strategy

A) defines the set of customer needs that it seeks to satisfy through its products and services.
B) specifies the portfolio of new products that it will try to develop.
C) specifies how the market will be segmented and how the product will be positioned, priced, and promoted.
D) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.
E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs.

Question 9

A company's supply chain strategy determines the nature of procurement and transportation of materials as well as the manufacture and distribution of the product.

Question 10

To achieve complete strategic fit,a firm must ensure that all functions in the value chain have diverse strategies that support functional goals.

Question 11

To achieve complete strategic fit,a firm must ensure that all functions in the value chain have consistent strategies that support the competitive strategy.

Question 12

The following situation would likely work well.A situation in which marketing is publicizing a company's ability to provide a large variety of products very quickly; simultaneously,distribution is targeting the lowest cost means of transportation.

Question 13

To retain strategic fit,supply chain strategy must be adjusted over the life cycle of a product and as the competitive landscape changes.

Question 14

The intercompany scope of strategic fit is no longer relevant today because the competitive playing field has shifted from company versus company to supply chain versus supply chain.

Question 15

A company will fail if there is a lack of strategic fit or because its overall supply chain design,processes,and resources do not provide the capabilities to support the maximum strategic fit.

Question 16

The degree of supply chain responsiveness should be consistent with the implied uncertainty.

Question 17

A company's product development strategy

A) defines the set of customer needs that it seeks to satisfy through its products and services.
B) specifies the portfolio of new products that it will try to develop.
C) specifies how the market will be segmented and how the product will be positioned, priced, and promoted.
D) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.
E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs.

Question 18

Because demand and supply characteristics change,the supply chain strategy must change over the product life cycle if a company is to continue achieving strategic fit.

Question 19

The degree of supply chain responsiveness does not need to be consistent with the implied uncertainty.

Question 20

A company's competitive strategy

A) defines the set of customer needs that it seeks to satisfy through its products and services.
B) specifies the portfolio of new products that it will try to develop.
C) specifies how the market will be segmented and how the product will be positioned, priced, and promoted.
D) determines the nature of procurement and transportation of materials as well as manufacture and distribution of the product.
E) determines how it will obtain and maintain the appropriate set of skills and abilities to meet customer needs.

Question 21

The second step in achieving strategic fit between competitive and supply chain strategies is to

A) understand the supply chain and map it on the responsiveness spectrum.
B) understand customers and supply chain uncertainty.
C) match supply chain responsiveness with the implied uncertainty of demand.
D) ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness.
E) none of the above

Question 22

The first step in achieving strategic fit between competitive and supply chain strategies is to

A) understand the supply chain and map it on the responsiveness spectrum.
B) understand customers and supply chain uncertainty.
C) match supply chain responsiveness with the implied uncertainty of demand.
D) ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness.
E) none of the above

Question 23

Which of the following defines the set of customer needs that a company seeks to satisfy through its products and services?

A) Competitive strategy
B) Product development strategy
C) Marketing and sales strategy
D) Supply chain strategy
E) none of the above

Question 24

A supply chain strategy involves decisions regarding all of the following except

A) inventory.
B) transportation.
C) new product development.
D) operating facilities.
E) information flows.

Question 25

A supply chain strategy involves decisions regarding

A) inventory.
B) transportation.
C) operating facilities.
D) information flows.
E) all of the above

Question 26

The cost of making and delivering a product to the customer is referred to as

A) supply chain responsiveness.
B) supply chain efficiency.
C) cost-responsiveness efficient frontier.
D) implied uncertainty.
E) none of the above

Question 27

Which of the following is not a characteristic of customer demand correlated with implied uncertainty?

A) Product margin
B) Unpredictable and low yields
C) Average stockout rate
D) Average forced season end markdown
E) None of the above are correlated with implied uncertainty.

Question 28

Which of the following specifies the portfolio of new products that a company will try to develop?

A) Competitive strategy
B) Product development strategy
C) Marketing and sales strategy
D) Supply chain strategy
E) all of the above

Question 29

Which of the following customer needs will cause implied uncertainty of demand to decrease?

A) Range of quantity required increases
B) Lead time decreases
C) Variety of products required increases
D) Required service level increases
E) none of the above

Question 30

Which of the following is not a supply chain capability that will impact supply uncertainty?

A) Evolving production process
B) Inflexible supply capacity
C) Limited supply capacity
D) Product margin
E) Unpredictable and low yields

Question 31

Which of the following customer needs will cause implied uncertainty of demand to increase?

A) Product margin
B) Lead time decreases
C) Average stockout rate
D) Average forced season end markdown
E) none of the above

Question 32

Supply chain responsiveness includes the ability to do which of the following?

A) Understand customers and supply chain
B) Meet a very high service level
C) Match supply chain responsiveness with the implied uncertainty of demand
D) Ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness
E) none of the above

Question 33

Which of the following is not a key to the success or failure of a company?

A) The competitive strategy and all functional strategies must fit together to form a coordinated overall strategy.
B) The competitive strategy and all functional strategies operate independently of each other.
C) The different functions in a company must appropriately structure their processes and resources to be able to execute strategies successfully.
D) Each functional strategy must support other functional strategies and help a firm reach its competitive strategy goal.
E) All of the above are keys to success.

Question 34

The uncertainty that exists due to the portion of demand that the supply chain is required to meet is the

A) rate of strategic uncertainty.
B) demand uncertainty.
C) implied demand uncertainty.
D) average forecast error.
E) none of the above

Question 35

Supply chain responsiveness includes the ability to do which of the following?

A) Handle supply uncertainty
B) Understand customers and supply chain uncertainty
C) Match supply chain responsiveness with the implied uncertainty of demand
D) Ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness
E) none of the above

Question 36

Which of the following are basic steps to achieving strategic fit?

A) Understanding the customer and supply uncertainty.
B) Understanding the supply chain capabilities.
C) Achieving strategic fit.
D) All of the above are basic steps to achieving strategic fit.
E) None of the above are a basic step to achieving strategic fit.

Question 37

The final step in achieving strategic fit between competitive and supply chain strategies is to

A) understand the supply chain and map it on the responsiveness spectrum.
B) understand customers and supply chain uncertainty.
C) match supply chain responsiveness with the implied uncertainty of demand.
D) combine customer and supply chain uncertainty and map it on the implied uncertainty spectrum.
E) all of the above

Question 38

Supply chain responsiveness includes the ability to do which of the following?

A) Understand customers and supply chain
B) Match supply chain responsiveness with the implied uncertainty of demand
C) Meet short lead times
D) Ensure that all functional strategies within the supply chain support the supply chain's level of responsiveness
E) all of the above

Question 39

The uncertainty of customer demand for a product is the

A) rate of strategic uncertainty.
B) demand uncertainty.
C) implied demand uncertainty.
D) average forecast error.
E) none of the above

Question 40

The curve that shows the lowest possible cost for a given level of responsiveness is referred to as the

A) supply chain responsiveness curve.
B) supply chain efficiency curve.
C) cost-responsiveness efficient frontier.
D) responsiveness spectrum.
E) none of the above

Question 41

Which of the following would not be a demand and supply characteristic toward the beginning stages of a product's life cycle?

A) Demand is very uncertain and supply may be unpredictable.
B) Demand has become more certain and supply is predictable.
C) Margins are often high and time is crucial to gaining sales.
D) Product availability is crucial to capturing the market.
E) Cost is often of secondary consideration.

Question 42

Discuss the two keys to the success or failure of a company.

Question 43

The important points to remember about achieving strategic fit are

A) there is one best supply chain strategy for all competitive strategies.
B) there is no right supply chain strategy independent of the competitive strategy.
C) there is a right supply chain strategy for a given competitive strategy.
D) all of the above
E) B and C only

Question 44

A ________ strategy specifies how the market will be segmented and how the product will be positioned,priced,and promoted.

A) Product Development
B) Marketing and Sales
C) Supply Chain
D) Finance

Question 45

For a company to achieve strategic fit,it must accomplish the following keys:

A) All functional strategies must fit together to form a coordinated overall strategy.
B) The different functions in a company must appropriately structure their processes and resources to be able to execute these strategies successfully
C) The overall supply chain must operate at the lowest cost possible to achieve success.
D) The design of the overall supply chain and the role of each stage must be aligned to support the supply chain strategy.

Question 46

The preferable supply chain strategy for a firm that sells multiple products and serves customer segments with very different needs is to

A) set up independent supply chains for each different product or customer segment.
B) set up a supply chain that meets the needs of the highest volume product or customer segment.
C) tailor the supply chain to best meet the needs of each product's demand.
D) set up a supply chain that meets the needs of the customer segment with the highest implied uncertainty.
E) set up a supply chain that meets the needs of product with the highest implied uncertainty.

Question 47

Which of the following would not be a demand and supply characteristic in the later stages of a product's life cycle?

A) Demand has become more certain and supply is predictable.
B) Margins are lower due to an increase in competitive pressure.
C) Product availability is crucial to capturing the market.
D) Price becomes a significant factor in customer choice.
E) All of the above are characteristics of the later stages.

Question 48

The drive for strategic fit should come from

A) the supply chain manager.
B) the strategic planning department.
C) the highest levels of the organization, such as the CEO.
D) middle management.
E) sales and marketing.

Question 49

The value chain consists of direct and indirect activities.Which of the following is an indirect activity for an enterprise?

A) Marketing
B) Distribution
C) Human Resources
D) Service

Question 50

Which of the following is NOT a challenge that makes it increasingly difficult for supply chains to achieve strategic fit?

A) Globalization
B) Changing Technology
C) Shorter Life Cycles
D) Decreasing Product Variety

Question 51

The functions and stages that devise an integrated strategy with a shared objective are referred to as

A) competitive strategy.
B) supply chain strategy.
C) scope of strategic fit.
D) scope of marketing strategy.
E) scope of product development strategy.

Question 52

Between 1993 and 2006,Dell's competitive strategy was to provide a large variety of customizable products at a reasonable price.Given the focus on customization,Dell's supply chain was designed to

A) be responsive.
B) provide a different product.
C) operate on a low-cost basis.
D) provide sustainable products.

Question 53

The key weakness of the ________ view is that different functions within a firm may have conflicting objectives.

A) Intrafunctional scope
B) Intraoperation scope
C) Interfunctional scope
D) Intercompany scope

Question 54

The relationship where increasing implied uncertainty from customers and supply sources is best served by increasing responsiveness from the supply chain is known as the

A) implied uncertainty spectrum.
B) responsiveness spectrum.
C) uncertainty/responsiveness map.
D) zone of strategic fit.
E) none of the above

Question 55

With the ________ view firms attempt to align all operations within a function.In this view all supply chain functions including sourcing,manufacturing,warehousing,and transportation must align their strategy to minimize total functional cost.

A) Intrafunctional scope
B) Intraoperation scope
C) Interfunctional scope
D) Intercompany scope

Question 56

Efficient supply chains

A) respond quickly to demand.
B) have higher margins because price is not a prime customer driver.
C) maintain buffer inventory to deal with demand/supply uncertainty.
D) maximize performance at a minimum cost.

Question 57

A ________ strategy specifies the portfolio of new products that a company will try to develop.

A) Product Development
B) Marketing and Sales
C) Supply Chain
D) Finance

Question 58

Which of the following would be a demand and supply characteristic toward the beginning stages of a product's life cycle?

A) Demand has become more certain and supply is predictable.
B) Margins are lower due to an increase in competitive pressure.
C) Product availability is crucial to capturing the market.
D) Price becomes a significant factor in customer choice.
E) none of the above

Question 59

A graph with two axes with implied uncertainty along the horizontal axis and responsiveness along the vertical axis is referred to as the

A) implied uncertainty spectrum.
B) responsiveness spectrum.
C) uncertainty/responsiveness map.
D) zone of strategic fit.
E) none of the above

Question 60

A firm that is not on the cost-responsiveness efficient frontier can improve

A) both responsiveness and cost performance.
B) only responsiveness.
C) only cost performance.
D) responsiveness, but not cost performance.
E) neither responsiveness nor cost performance.

Question 61

Discuss the impact of the product life cycle on strategic fit between implied demand uncertainty and supply chain responsiveness.

Question 62

List the abilities included in supply chain responsiveness.

Question 63

List and explain the three basic steps to achieving strategic fit.

Question 64

Explain scope of strategic fit.

Question 65

List the attributes along which customer demand from different segments can vary.