SCM 3123 Final Exam Q questions And Answers

what is supply chain management - ANS Efficient integration of suppliers, manufacturers, transporters, warehouses, retailers and all other parties associated with delivery of the final product what are key steps in supply chain - ANS procurement, operations, logistics procurement/purchasing (buy it) - ANS process of obtaining services, supplies and equipment in conformance with corporate regulation operations (make it) - ANS design, operation and improvements of production systems that efficiently transform inputs into finished goods and services and maximizing productivity logistics (move it) - ANS the coordinated planning and execution of product distribution, preparation of packaged product, transportation and warehousing buy it examples - ANS make vs buy, supplier selection, negotiating, contracting, maintaining suppler relationships make it examples - ANS capacity planning, scheduling, inventory management move it examples - ANS distribution, warehousing, packaging, transportation, documentation, containerization, infrastructure management, third party management and communication traditional supply chain - ANS buy it, make it, move it supply chain process - ANS gathering raw materials, acquiring materials from suppliers, manufacture goods (assembly), distribution (delivery), selling to end user (customer and consumers) procurement according to bailey et al 1994 - ANS the purchase of products or services at the right price, at the right time, of the right quality, in the right quantity, from the right source procurement process - ANS the process starts with identifying a need for a product or service, then to the sourcing and appointment of service/product provider, then the management of those products what are the rights of procurement - ANS right price, right time, right quality, right quantity, right place and source what are the four competitive priorities of supply chain - ANS cost, quality, speed, flexibility why use four competitive priorities - ANS they contribute to improving and sustaining the competitive advantage of a firm Besides reducing operating expenses, please identify two other means to improve the bottom line - ANS increasing sales, reducing cogs gross profit formula - ANS Sales - COGS operating income formula - ANS gross profit - operating expenses hoe to calculate 'normalized' on the income statement - ANS divide amount by sales ex: (COGS/Sales)X100% % increase in operating income formula - ANS (new operating income - previous operating income)/previous operating income profit margin formula - ANS (operating income/sales) X 100% total asset formula - ANS sum of all items in the balance sheet cogs formula (for reduction purposes) - ANS old COGS - savings amount associated with percent savings reduction ROA formula - ANS (net profit/total assets) X 100% Where does Procurement and Strategic Sourcing fit into major SCM steps? (buy it, make it, move it, sell it and service it) - ANS buy it According to the instructor, which of the following is responsible for the distribution of inventory? - ANS logistics What is the term used to describe the closely knitted intertwining relationships among Japanese buyers and suppliers where they cross-share each other's stocks? - ANS keiretsu What does Muda refer to? - ANS waste We talked about the "bottom line" in our prior lecture on profit leverage effect. In this context, what does the bottom line refer to? Choose the best answer. operating income net profit last line of entry in an income statement - ANS all of the above True or False: A reduction of procurement cost will increase the book value of the inventory. - ANS false True or False: A reduction of procurement cost will increase total assets. - ANS false T/F: it is more doable to reduce costs rather than to increase sales - ANS true kaizen - ANS continuous improvement kanban - ANS A Japanese word meaning "card" or "visible record" that refers to cards used to control the flow of production through a factory 7 types of muda (TIMWOOD) - ANS transportation, inventory, motion, waiting, over processing, over production, defective best describe the "profit leverage effect"? - ANS It measures the impact of a change in purchase spent on a firm's profit in relation to the impact of additional sales on a firm's profit If we could achieve a 3% reduction in COGS, what is the impact on total assets? - ANS total assets will go down According to the lecture slide on supply chain volatility index, which of the following statements is (are) correct regarding supply chain volatility prior to year 2008? Choose the best answer. we have experienced a relatively stable supply chain environment in general, disturbance in supply chain has been isolated to a single business parameter after a disturbance, the supply chain can bounce back relatively easy - ANS all of the answers are correct According to the instructor, which of the following is an example of "servitization"? JCPenny closes most of its stores amazon bought whole foods to provide easy return service to its customers many IT firms moved their customer support services to offshore locations xerox bundles its product offerings with maintenance services - ANS xerox bundles its product offerings with maintenance services Which of the following characteristics best describes a Black Swan Event? Choose the best answer. its a type of unknown event it is beyond what is normally expected of a situation it has potentially severe consequences - ANS all of the above Which of the folloiwng is an advantage associated with decentralized purchasing? suboptimization faster response speed pay for talent job boredom - ANS faster response speed Which of the following is a disadvantage associated with decentralized purchasing? complicated reporting line lack of standardization broad job definition speed of response - ANS lack of standardization