Question 1

Scorecards are literally nothing more than devices used to evaluate the performance of operations and organizations within supply chains.

Accepted Answer

A) True 
 B)False

Question 2

"Dock-to-stock cycle time"is calculated as total cycle time in hours to process all supplier receipts in a time period divided by the total number of supplier receipts for the time period.

Accepted Answer

A) True 
 B)False

Question 3

Economic value-added (EVA) is an estimate of a firm's profit, or simply, the cost of capital has to have a greater benefit than invested capital.

Accepted Answer

A) True 
 B)False

Question 4

The most well-known and classic example of a firm who managed their cash-to-cash cycle better than almost everyone else, is:

Accepted Answer

A)  Dell Computers. 
B)  Ford Motor. 
C)  General Motors. 
D)  Ikea. 
E)  Walmart.

Question 5

The Supply Chain Consortium has conducted research into the key metrics and benchmarks utilized within supply chain management. They have developed several core benchmark areas. Which of the following was not one of those core areas identified by the Supply Chain Consortium?

Accepted Answer

A)  Customer service. 
B)  Sourcing. 
C)  Supply chain planning. 
D)  Technology. 
E)  Transportation.

Question 6

Supply chain metrics must be understandable to senior executives such as the CEO, COO, and others. There are four major metrics that are the most relevant to senior executives and they include all of the following EXCEPT:

Accepted Answer

A)  Cash-to-cash cycle. 
B)  Economic value-added (EV
A) . 
C)  Perfect order percentage. 
D)  Supply chain cost as a percentage of revenues. 
E)  Working capital.

Question 7

The APQC Process Classification Framework (PCF) includes operating processes, and management and support services. Which of the following would be an example of an operating process?

Accepted Answer

A)  Develop and manage business capabilities. 
B)  Develop and manage human capital. 
C)  Develop vision and strategy. 
D)  Manage financial resources. 
E)  Manage information technology.

Question 8

The objective of a perfect order approach is to attempt to eliminate all mistakes or errors except for the very few that occur from time to time.

Accepted Answer

A) True 
 B)False

Question 9

High-quality data can have a significant impact on improving employee productivity.

Accepted Answer

A) True 
 B)False

Question 10

In a study of warehousing metrics conducted for the Warehouse Education and Research Council (WERC) for more than 10 years, one metric has remained one of the "top 2" metrics in every study reported on since 2007. That metric was:

Accepted Answer

A)  On-time shipments. 
B)  Order picking accuracy. 
C)  Overtime hours to total hours. 
D)  Peak warehouse capacity used. 
E)  Percentage of supplier orders received damage-free.

Question 11

Which of the following would not be considered an obstacle to a firm having high-quality data available to them?

Accepted Answer

A)  Bad data. 
B)  Cost. 
C)  Fast-changing markets. 
D)  Globalization. 
E)  Lack of standards.

Question 12

High-quality data exhibit certain characteristics which are important in supply chain decision making. Which of the following is not one of those characteristics?

Accepted Answer

A)  Accuracy. 
B)  Completeness. 
C)  Consistency. 
D)  Cost. 
E)  Timeliness.

Question 13

Which of the following would not be an example of a service metric?

Accepted Answer

A)  Costs of claims handling. 
B)  Dock-to-stock cycle time. 
C)  Order fill rate. 
D)  Timeliness of order status updates provided to customers. 
E)  Time taken to answer customer inquiries.

Question 14

A majority of firms are satisfied with the state of their current efforts in developing and implementing supply chain metrics.

Accepted Answer

A) True 
 B)False

Question 15

The calculation of the cash-to-cash (C2C) cycle would be: C2C = DOI + DOR + DOP.

Accepted Answer

A) True 
 B)False

Question 16

The "Voice of the Customer (VOC)"can be defined as the process of capturing a customer's expectations, preferences, and aversions.

Accepted Answer

A) True 
 B)False

Question 17

Metrics are required to evaluate performance and establish diagnostics for all phases of the SCOR Model. Order fill rates, delivery lead times, and transportation delivery costs would be examples of metrics utilized in the __________ phase of the SCOR Model.

Accepted Answer

A)  Deliver. 
B)  Make. 
C)  Plan. 
D)  Return. 
E)  Source.

Question 18

"Order fill rate"is calculated by taking the total orders shipped and dividing that number by total orders, resulting in a percentage that could reach 100 percent if every order was always shipped correctly.

Accepted Answer

A) True 
 B)False

Question 19

When organizations select metrics to assist them in achieving optimal supply chain efficiency and effectiveness, the measures selected must possess certain characteristics. Which of the following would not be one of those characteristics?

Accepted Answer

A)  Action-oriented-once causes are found, share them with all groups. 
B)  Objective-tied to the work being done. 
C)  Results oriented-employees being measured should be involved in collecting performance numbers. 
D)  Tied to individual personal goals-an employee can't be good at everything. 
E)  Tied to root causes-why didn't we reach this goal? This shows where to focus efforts.

Question 20

Having high-quality data can result in several benefits. Examples of __________ benefits would be better asset utilization, planning and forecast accuracy, and on-time delivery of products.

Accepted Answer

A)  Customer. 
B)  Financial. 
C)  Operational. 
D)  Productivity. 
E)  Workflow.

Exam 16: Supply Chain Performance Measurement and Metrics

Scorecards are literally nothing more than devices used to evaluate the performance of operations and organizations within supply chains.

"Dock-to-stock cycle time"is calculated as total cycle time in hours to process all supplier receipts in a time period divided by the total number of supplier receipts for the time period.

Economic value-added (EVA) is an estimate of a firm's profit, or simply, the cost of capital has to have a greater benefit than invested capital.

The most well-known and classic example of a firm who managed their cash-to-cash cycle better than almost everyone else, is:

The Supply Chain Consortium has conducted research into the key metrics and benchmarks utilized within supply chain management. They have developed several core benchmark areas. Which of the following was not one of those core areas identified by the Supply Chain Consortium?

Supply chain metrics must be understandable to senior executives such as the CEO, COO, and others. There are four major metrics that are the most relevant to senior executives and they include all of the following EXCEPT:

The APQC Process Classification Framework (PCF) includes operating processes, and management and support services. Which of the following would be an example of an operating process?

The objective of a perfect order approach is to attempt to eliminate all mistakes or errors except for the very few that occur from time to time.

High-quality data can have a significant impact on improving employee productivity.

In a study of warehousing metrics conducted for the Warehouse Education and Research Council (WERC) for more than 10 years, one metric has remained one of the "top 2" metrics in every study reported on since 2007. That metric was:

Which of the following would not be considered an obstacle to a firm having high-quality data available to them?

High-quality data exhibit certain characteristics which are important in supply chain decision making. Which of the following is not one of those characteristics?

Which of the following would not be an example of a service metric?

A majority of firms are satisfied with the state of their current efforts in developing and implementing supply chain metrics.

The calculation of the cash-to-cash (C2C) cycle would be: C2C = DOI + DOR + DOP.

The "Voice of the Customer (VOC)"can be defined as the process of capturing a customer's expectations, preferences, and aversions.

Metrics are required to evaluate performance and establish diagnostics for all phases of the SCOR Model. Order fill rates, delivery lead times, and transportation delivery costs would be examples of metrics utilized in the __________ phase of the SCOR Model.

"Order fill rate"is calculated by taking the total orders shipped and dividing that number by total orders, resulting in a percentage that could reach 100 percent if every order was always shipped correctly.

When organizations select metrics to assist them in achieving optimal supply chain efficiency and effectiveness, the measures selected must possess certain characteristics. Which of the following would not be one of those characteristics?

Having high-quality data can result in several benefits. Examples of __________ benefits would be better asset utilization, planning and forecast accuracy, and on-time delivery of products.