Supply Chain Final Exam (old test questions)100% Correct !!!

1. Two kinds of customers walk into grizzly fly fishing shop: college freshman taking a first time class and high end professionals with fishing experience, in order to deliver most value to each of these customers, john should: - ANS a. Focus on creating supply chains that deliver the specific form, time and place utility that each customer segment is looking for, at a price that each segment is willing to pay 1. Among the following examples, which refers mostly to the place utility that SC provides? a. Amazon provides overnight warehouse services b. Australian grocery store provides food in remote towns c. Chipotle prepares and assemble burritos based on orders d. Target offers electronics repair service for free - ANS b. Australian grocery store provides food in remote towns 1. Chuck from sales department wants to increase volume of sales for a product. To do this, he wants to service a client in a new market that is three times as far from your current DC as current markets. although chuck might be happy because his sales numbers go up, total overall profit might not improve because: a. COGS would likely increase b. Net sales would likely decrease c. Transportation and other Distribution costs would likely increase d. Merchandizing costs would likely increase - ANS c. Transportation and other Distribution costs would likely increase 1. A WSJ article discussed in class regards DHLs decision to locate/expand an operation in Cincinnati/north Kentucky (CVG airport) what does this example imply about the DHL Greenfield/brownfield site location decision? - ANS Distance to other DHL operations is important since they do not operate in isolation 1. The safety management process is important to Supply chain professionals because: a. OHSA RECORDS about 100,000 deaths a year in warehouses relates accidents b. Employees should expect safe working environment, and companies should take the steps to maintain one c. Safety is not important to SC professionals, but it is to mining and manufacturing d. OHSA will shut down facilities with incident rates higher than the industry average - ANS Employees should expect safe working environment, and companies should take the steps to maintain one 1. In today's competitive business environment, the most successful firms focus mainly on improving customer satisfaction by: a. Delivering the highest quality products to all customers b. Improving how they deliver value to different customer segments c. Passing on the lowest possible price to each customer d. Delivering the highest possible level of service to all customers - ANS b. Improving how they deliver value to different customer segments 1. Recall that firms may seek to gain comp adv through superior SC mgmt. refer to the value adv/productivity adv matrix (figure 1) to answer question below CHART: QUESTION: COMPANIES LOCATED IN THE COMMMODITY AMRKET QUADRANT C SHOULD TRY TO DO ANY OF THE FOLLOWING EXCEPT a. Become a cost leader b. Become a service leader c. Become a cost and service leader d. Reduce costs through more efficient logistics e. Stay the same - ANS e. Stay the same Supply chain management: - ANS The systematic coordination of purchasing, manufacturing management and distribution upstream with suppliers and downstream to customers 1. As the time horizon for planning SC activities ____ the accuracy of the planning ___ a. Is pushed further into the future (Lengthens), improves b. Is pulled closer to actual time (Shortens), improves c. Is pulled closer to actual terms (Shortens), decreases d. Is pushed further into the future (Lengthens), does not change - ANS b. Is pulled closer to actual time (Shortens), improves 1. Firms have been talking about the GREAT DIVIDE as one of their biggest challenges, among the following approaches, which would NOT help a business deal with the great divide? a. Promoting integrated performance metrics across SC b. Encouraging collaboration across the SC c. Creating a production- oriented focus across SC d. Implementing integrates info system across SC - ANS c. Creating a production- oriented focus across SC 1. According to the Pareto or 80/20 rule shown above: - ANS The top 20% of products and customers by sales or profitability are considered the A category and should receive the highest levels of customer service 1. Establishing a segmented customer service policy involves all of the following EXCEPT: a. Determining the long-term profitability of customers b. Categorizing customers based on strategic importance c. Establishing a standard customer service policy for all customers d. Establishing different customer service policies for different segments - ANS c. Establishing a standard customer service policy for all customers 1. In GRIZZLY FF shop divides their products and customers into 3 categories based on profitability: "A"- these are the top 20 % of products and customers "B"- these are the next 50% of products and customers "C" these are the bottom 40% of products and customers WHAT WAS THE PURPOSE OF THIS ACTIVITY? - ANS To enable john to serve his best customers at a higher level and promote his best products 1. According to the textbook author, in order to create SC responsiveness to customer demands a firm should focus on what two primary capabilities? a. Postponement and carrier management b. Collaboration and carrier management c. Visibility and velocity d. Simplification and sourcing - ANS c. Visibility and velocity Of 2000 deliveries from proctor and gamble to Walmart last year, 1500 fulfilled all 12 requirements of the perfect order, 300 fulfilled 11 out of 12 and 100 filled 10 out of 12 and 100 filled 9 out of 12. What was p and gs perfect order score - ANS 75% = 1500/2000 1. The strategic profit Model (Dupont model) can be used to illustrate the impact of logistics and supply chain management on ROA by: a. illustrating how increased promotional activity can improve a company's ROA b. illustrating how SC activities impact the components of the income statement and balance sheet that lead to the ROA ratio c. illustrating how variations in inventory costs can lead to different values of the cash-to-cash cycle - ANS b. illustrating how SC activities impact the components of the income statement and balance sheet that lead to the ROA ratio 1. The time it takes to convert a payment from raw materials into collection of revenue for the finished goods into which those raw materials where built is known as: a. total cost timeline b. cash-to-cash cycle time c. dwell time d. value added time e. supply chain response time - ANS b. cash-to-cash cycle time 1. Companies that do not benchmark their processes and companies that use limited SC benchmarking have been shown to? a. Overestimate their competitive abilities b. Underestimate their competitive abilities c. Find and implement groundbreaking changes based on d. Effectively share their best practices from one area of the company to another - ANS a. Overestimate their competitive abilities