SCM 371 EXAM 2 QUESTIONS WITH VERIFIED
ACCURATE ANSWERS
What are the 7 steps to supplier selection and evaluation process? - Answers - 1)
recognize need for supplier
2) identify key sourcing requirements
3) identify potential supply sources
4) Determine sourcing strategy
5) limit suppliers in selection pool
6) determine method of supplier evaluation and selection
7) select supplier and reach agreement
What are characteristics of single sourcing? - Answers - - can develop closer
relationships
- development of value-adding programs
- leverage and power over supplier
What are characteristics of multiple sourcing? - Answers - - improved assurance of
supply
- check against price increases
- active competition that motivates suppliers to perform efectively
What are characteristics of sole sourcing? - Answers - - supplier holds a patent
- 1 company licensed or holds the IP
- 1 company has the most efficient process
- need to be carefully guard IP
What are primary criteria to evaluating suppliers? - Answers - - cost or price
- quality
- delivery
Who created the Analytic Hierarchy Process (AHP)? - Answers - - Thomas Saaty
What are advantages of AHP? - Answers - - generates ratio data
- mature and generally accepted
What are disadvantages of AHP? - Answers - - labor intensive
- "Black box" calculations
What are the process steps of AHP? - Answers - 1) define goal
2) construct the decision hierarchy
3) determine the relative importance of attributes
4) evaluate the performance of each alternative; consistency check
5) calculate the weighted scores for each alternative
, What are the components of the Time as a Strategy graph? - Answers - - Your
Company, Competitor, Customer
- Your company and Competitor share cost
- Competitor supplies value to customer
Your Company supplies value to customer
Product on a ship for 4 weeks to Japan, value adding or not? - Answers - - Depends on
context
- depends on the type of supply chain
- when product is needed by
-type of product
What are characteristics of an activity that adds value? - Answers - - customer cares
- physically changes
- done right
What percentage of typical manufacturing companies supply chain have value added
processes? - Answers - 5%
What are the 7 deadly wastes? - Answers - - overproduction
- unnecessary inventory
- defects
- unnecessary motion
- inappropriate processing
- waiting
- transport
What are the 4 stages to Time Compression? - Answers - 1) walk the process
2) distinguish between value adding and non-value adding activities and calculate times
3) Draw TBPM
4) Develop solutions and strategies and re-draw maps
Case Study on Altimus Brands: - Answers - - Small percentage to Bangladesh (2%)
- Lower China due to inflation and add this to Vietnam
- Bump Indonesia up a bit - spread portfolio
How have global trade flows changed from 2004 to 2014? - Answers - - Asia becomes a
larger player quickly
- spreads to South America
What has caused an increase in global trade flows? - Answers - - globalization
- outsourcing trends
- geopolitical instability
- faster product and technology lifecycles
- product and process complexity increase
ACCURATE ANSWERS
What are the 7 steps to supplier selection and evaluation process? - Answers - 1)
recognize need for supplier
2) identify key sourcing requirements
3) identify potential supply sources
4) Determine sourcing strategy
5) limit suppliers in selection pool
6) determine method of supplier evaluation and selection
7) select supplier and reach agreement
What are characteristics of single sourcing? - Answers - - can develop closer
relationships
- development of value-adding programs
- leverage and power over supplier
What are characteristics of multiple sourcing? - Answers - - improved assurance of
supply
- check against price increases
- active competition that motivates suppliers to perform efectively
What are characteristics of sole sourcing? - Answers - - supplier holds a patent
- 1 company licensed or holds the IP
- 1 company has the most efficient process
- need to be carefully guard IP
What are primary criteria to evaluating suppliers? - Answers - - cost or price
- quality
- delivery
Who created the Analytic Hierarchy Process (AHP)? - Answers - - Thomas Saaty
What are advantages of AHP? - Answers - - generates ratio data
- mature and generally accepted
What are disadvantages of AHP? - Answers - - labor intensive
- "Black box" calculations
What are the process steps of AHP? - Answers - 1) define goal
2) construct the decision hierarchy
3) determine the relative importance of attributes
4) evaluate the performance of each alternative; consistency check
5) calculate the weighted scores for each alternative
, What are the components of the Time as a Strategy graph? - Answers - - Your
Company, Competitor, Customer
- Your company and Competitor share cost
- Competitor supplies value to customer
Your Company supplies value to customer
Product on a ship for 4 weeks to Japan, value adding or not? - Answers - - Depends on
context
- depends on the type of supply chain
- when product is needed by
-type of product
What are characteristics of an activity that adds value? - Answers - - customer cares
- physically changes
- done right
What percentage of typical manufacturing companies supply chain have value added
processes? - Answers - 5%
What are the 7 deadly wastes? - Answers - - overproduction
- unnecessary inventory
- defects
- unnecessary motion
- inappropriate processing
- waiting
- transport
What are the 4 stages to Time Compression? - Answers - 1) walk the process
2) distinguish between value adding and non-value adding activities and calculate times
3) Draw TBPM
4) Develop solutions and strategies and re-draw maps
Case Study on Altimus Brands: - Answers - - Small percentage to Bangladesh (2%)
- Lower China due to inflation and add this to Vietnam
- Bump Indonesia up a bit - spread portfolio
How have global trade flows changed from 2004 to 2014? - Answers - - Asia becomes a
larger player quickly
- spreads to South America
What has caused an increase in global trade flows? - Answers - - globalization
- outsourcing trends
- geopolitical instability
- faster product and technology lifecycles
- product and process complexity increase
