BUAD 331 EXAM 3 QUESTIONS AND ANSWERS LATEST UPDATED 2024/2025 | 100% SOLVED

What is the process around the interface between the customer demand creation and supply creation of form, time, and place value to fulfill that demand? - ANSWER Order Cycle The difference between the customer's desired order cycle time and the total supply chain order cycle time is known as a.) order cycle time b.) logistics lead time c.) customer delivery cycle d.) lead time gap - ANSWER d.) lead time gap What is the total elapsed time from when the customer first recognizes need to when that need is ultimately fulfilled? - ANSWER order cycle time What is is the technique based on anticipating the form, time, and place characteristics of demand in advance of actual orders? - ANSWER anticipatory or efficient technique What does EOQ stand for? - ANSWER Economic Order Quantity What 2 competing costs curves associated with order fulfillment does the EOQ model seek to balance? - ANSWER 1.) order or setup costs 2.) costs of carrying inventory As order quantity increases, order or setup costs ______________. - ANSWER decrease. Are the costs below part of the a.) order or setup costs, or b.) costs of carrying inventory? These costs are incurred every time an order is placed, or production is set up. Includes the administrative costs associated with locating sources of supply and moving supplies to the location they are needed and/or the operating costs brought with setting up equipment to build the appropriate product. The cost is BUAD 331 EXAM 3 QUESTIONS AND ANSWERS LATEST UPDATED 2024/2025 | 100% SOLVED calculated per order; it varies with the quantity of product ordered at any one point. - ANSWER a.) order or setup costs Are the costs below part of the a.) order or setup costs, or b.) costs of carrying inventory? These costs include the cost of handling inventory, the costs of the facility where it is held, utility costs to keep it cool/warm, insure it, pay taxes on it, and incur the cost of the time value of money actually tied up in the investment. ___________ _________ are greatest when ordering a large quantity at any one time since it all arrives at the same time and must be handled in advance of demand. - ANSWER b.) costs of carrying inventory (2 blanks are "carrying costs") What does ROP stand for? - ANSWER Reorder Point "So, another component of the EOQ model is determining when we need to reorder inventory to avoid stocking out. This is called the ___________ ________." - ANSWER Reorder Point How is ROP calculated? - ANSWER (Average time it takes suppliers to replenish our orders) * (Average number of inventory sold each day) What is the stock that we hold just in case demand or lead time exceeds our average? - ANSWER Safety stock The greater the uncertainty of demand and lead time, the _________ (greater, lesser) the variance, hence the __________ (more, less) safety stock we have to hold. - ANSWER greater, more When calculating average inventory, we take 1/2 of our EOQ cycle stock plus a full unit value of ________ stock. - ANSWER safety From an accounting standpoint, ___________ (safety/cycle) stock is twice as expensive as ____________ (safety/cycle) stock. - ANSWER safety, cycle This model aims to calculate the optimal amount of inventory to be reordered by balancing ordering costs with carrying costs. - ANSWER EOQ (Economic Order Quantity) model Safety stock keeps us "safe" from stock-outs, at least to the level we are willing to pay for based on our __________ policy. - ANSWER service _________ involves applying a set of process improvement techniques to improve a system's efficiency by reducing systematic waste often found in accumulated inventory. - ANSWER Lean A ________ supply chain value creation system starts with the creation of a short-term horizon plan for the demand that has been created in collaboration with input from all elements of the end-to-end supply chain. This includes internal functions involved with demand creations/fulfillment as well as external goods/services. This short-term can be far greater than that of long-term plans that do not leverage information across the supply chain. - ANSWER lean Lean techniques aim to reduce the costs of ordering or setup, thus pushing the order/setup cost curve to the ________ (right/left) and reducing EOQ to a much lower quantity ordered __________ frequently. - ANSWER left, more With lean techniques used at their extreme, order/setup costs can be pushed to near zero. When this happens, it becomes most efficient to order small volumes frequently, even once or more per day. Such small-volume, frequent ordering is referred to as ___________ _____ ________. - ANSWER Just-in-Time (JIT) If average daily demand for a product is 5 units and average lead time for an order to arrive is 7 days, what is the reorder point (ROP) for the product? - ANSWER 35 units This type of supply chain value creation system responds to actual demand rather than anticipating it--it also requires a high unit cost of operations in procurement, manufacturing, and logistics. However, there is no forecasted inventory in this system, meaning there is perfect accuracy of form, time, and place value creation. - ANSWER Responsive Value Creation What is the main difference between lean systems and responsive systems? - ANSWER lean systems seek to provide form, time, and place SHORTLY in advance of demand, while responsive systems wait until after demand is created to activate supply chain operations. The move to lean and then responsive value creation requires a paradigm shift from a _________ mentality to a customer __________ mentality. - ANSWER product-focused push, demand-focused pull In high-end restaurants, steaks are generally cooked after the wait staff places the order to the kitchen with the customers' preference. Which of the following techniques best describes the fulfillment of steak orders to the final customer? a.) anticipatory b.) responsive c.) postpone d.) lean - ANSWER b.) responsive True/False: Procurement, conversion, and logistics are activities that must be done to fulfill a company's exchange commitments. - ANSWER True Key modules in most __ __ __ solutions are: -Production Operations/Manufacturing Planning and Execution Human Capital Management -Finance and Accounting -Procurement -Sales and Distribution -Warehouse Management -Business Intelligence and Analytics - ANSWER An __ __ __ is a transaction processing and reporting system that leverages a centralized repository, which contains relevant master, organizational, and transaction data. - ANSWER ERP What does ERP stand for? - ANSWER Enterprise Resource Planning What does SRM stand for? - ANSWER Supplier Relationship Management What are the 4 enterprise PLANNING systems are we focusing on for this exam? - ANSWER 1.) ERP (Enterprise Resource Planning) 2.) SCM (Supplier Relationship Management) 3.) CRM (Customer Relationship Management) 4.) PLM (Product Lifestyle Management) __________ __________ Management enables you to optimize your procurement strategy, to work more effectively with your supplier pool, and thus gain long-term benefits from all your supplier relationships. - ANSWER Supply Relationship What does CRM stand for? - ANSWER Customer Relationship Management The overarching goal of a __ __ __ system is to help personnel identify and nurture leads, convert leads to customers, and retain new and existing customers. __ __ __ has the ability to provide real time access to information about leads and customers to help sales forces entice former customers back into the fold and reduce the costs of marketing to leads. - ANSWER CRM x 2 What does PLM stand for? - ANSWER Product Lifestyle Management __ __ __ planning systems facilitate a shared understanding of product ideation, development, and launch by storing product data and history. The goal of __ __ __ is to enable organizations to work in a more collaborative manner to be more efficient and effective in their product development efforts. - ANSWER PLM x 2 What does TMS stand for? - ANSWER Transportation Management System What does WMS stand for? - ANSWER Warehouse Management System Enterprise systems are primarily designed to address which of the following issues? a.) Business process standardization b.) Information fragmentation c.) Lack of control over personnel work tasks d.) None of the above - ANSWER b.) Information fragmentation Which ERP vendor entered the enterprise system market nearly 30 years after the first solution was introduced? - ANSWER Oracle Which type of enterprise system facilitates an organization to work more effectively with its supplier pool? a.) CRM b.) ERM c.) PLM d.) SRM - ANSWER d.) SRM What is the physical integration that includes the -architecture -data flows -communications interfaces -security apparatus -frequency and diversity among suppliers -controlled sequence of events -track data and link interdependencies -ensurance of data compliance - ANSWER B2B integration, or B2Bi What does EDI stand for? - ANSWER Electronic Data Interchange __ __ __ communications are computer-to-computer communications that enable large and small/medium businesses to have a thriving, symbiotic relationship. - ANSWER EDI What does API stand for? - ANSWER Application Programming Interface __ __ __ is a web-based alternative to EDI. It is leveraging web services or some other form of service that acts as a messenger between businesses. - ANSWER API __ __ __ is the physical integration of disparate systems among supply chain ecosystem members to exchange information in a timely and qualitative manner. - ANSWER Business-to-business integration, or B2Bi (Technologies/Innovations/Advancements) What is the use of a network architecture of remote Internet servers to host, store, manage, and process data and applications rather than a local server or computer? - ANSWER Cloud computing and storage (Technologies/Innovations/Advancements) What are technologies to automatically identify, locate and profile supply chain objects and to capture and communicate associated data and information across the supply chain? - ANSWER Sensors and automatic identification (Technologies/Innovations/Advancements) What are models and tools to help companies design networks to produce, store, and distribute efficiently and effectively to serve customers? - ANSWER Inventory and network optimization tools (Technologies/Innovations/Advancements) What is the design and use of computer-controlled machines to automatically perform a series of actions or tasks traditionally performed by humans? - ANSWER Robotics and Automation (Technologies/Innovations/Advancements) What is the use of the internet to connect sensors and computers embedded in a growing range of objects, enabling them to send and receive data in real time? - ANSWER Internet of Things (IoT) (Technologies/Innovations/Advancements) What are technology devices that can be worn or carried, either as external accessories or as part of clothing, having the capability to exchange data between the devices and a network? - ANSWER Wearable and mobile technology (Technologies/Innovations/Advancements) What are a group of technologies that can manufacture products through the construction of layers from a three-dimensional digital blueprint? - ANSWER 3D printing (Technologies/Innovations/Advancements) What is a computer-guided device that can move about without a human being in control, either on the ground (a vehicle) or in the air (a drone)? - ANSWER Driverless/autonomous vehicles and drones (Technologies/Innovations/Advancements) What is technology that enables machines to learn problem-solving patterns and perform tasks that typically require human intelligence, such as decision-making, speech recognition, visual perception, and language translation? - ANSWER Artificial Intelligence (Technologies/Innovations/Advancements) What is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network? - ANSWER Blockchain What does OMS stand for? - ANSWER Order Management System What are the 3 execution systems we are focusing on for this exam? - ANSWER 1.) TMS (Transportation Management System) 2.) WMS (Warehouse Management System) 3.) OMS (Order Management System) __ __ __ helps organizations control and track the transfer and interim and final storage of goods/raw materials in and between warehouses. - ANSWER WMS The goal of __ __ __ is to facilitate the movement of goods and raw materials from origin to destination in an efficient, reliable, and cost-effective manner. - ANSWER TMS How can the interdependencies of these planning/execution systems improve supply chain performance? - ANSWER The textbook recommends that you "standardize the execution of the processes, especially where multiple systems complete the same tasks, in addition to integrating data from disparate systems as well as consolidating the data in a centralized repository." The purpose of a __________ is to observe and document everything he/she sees. a.) business process owner b.) project manager c.) supply chain IT liaison d.) watcher e.) none of the above - ANSWER Watcher What are the 4 reasons organizations invest in IT (Information Technology)? - ANSWER 1.) Heavy reliance on IT platforms for day-to-day operations 2.) IT is viewed as the "silver bullet" 3.) Desire or need to automate manual processes 4.) Digitization of business models What are the 3 common IT adoption approaches? - ANSWER 1.) Best of breed / best in class 2.) Single vendor solution 3.) Best of suite (hybrid approach) What is the IT approach that matches the following: