Chapter 2 SCM 352

Question 1

A _______ is a network of facilities and processs that describes the flow of materials, finished goods, services, and those that deliver them to the customer.

Answer 1

VALUE CHAIN

Question 2

A ____ is the portion of the value chai that focuses primarily on the physicalmovement of goods and materials, and supporting flows of information and financial transactions throught the supply, production, and distribution processes.

Answer 2

SUPPLY CHAIN

Question 3

_______ is the perception of the benefits associated wih a good, service, r bundle of goods and services in relation to what buyers are willing to pay for them.

Answer 3

VALUE

Question 4

Perceived benefits/ Price (cost) to the customer =

Answer 4

VALUE

Question 5

A competitively dominant customer experience is ofter called a _________.

Answer 5

VALUE PROPOSITION

Question 6

The ____ of a valuechain is the configuration of resource, such assuppliers, factories, warehouses, distributors, technical support centers, engineering design and sales offices, and communication links.

Answer 6

OPERATIONAL STRUCTURE

Question 7

________ refers to the processof acquiring and consolidating elements of a value chain to achieve more control.

Answer 7

VERTICAL INTEGRATION

Question 8

________ refers to acquiring capabilities toward suppliers.

Answer 8

BACKWARD INTERGRATION

Question 9

______ refers to acquiring capabilities toward distribution or even customers.

Answer 9

FORWARD INTERGRATION

Question 10

______ is the process of having suppliers provide goods and services that were previously provided internally.

Answer 10

OUTSOURCING

Question 11

VC1=

Answer 11

VARIABLE COST/ UNIT IF PRODUED

Question 12

_____ = VARIABLECOST/ UNIT (I.E. PURCHASE PRICE/ UNIT) IF OUTSOURCED

Answer 12

VC2

Question 13

______ = FIXED COSTS ASSOCIATED WITH PRODUCING THE PART

Answer 13

FC

Question 14

_____= QUANTITY PRODUCED(VOLUME)

Answer 14

Q

Question 15

Total cost of production =

Answer 15

(VC1)Q+FC

Question 16

Totalcost of outsourcing=

Answer 16

(VC2)Q

Question 17

_____ = FC/ VC2- VC1

Answer 17

Q

Question 18

Wheneverthe anticipated value is greater than Q the firm should_______; otherwise it is best to outsource.

Answer 18

PRODUCE THE PART IN-HOUSE

Question 19

_______ is the processof managing information, physical goods,and services to ensure theiravailability at the right qauntity, and withthe highest attention to quality.

Answer 19

VALUE CHAIN INTERGRATION

Question 20

_______ is the building, acquiring, or moving of pocess capabilities from a domestic location to another ountry location while mainting ownership and control.

Answer 20

OFFSHORING

Question 21

A_______ is an oganzation that sources, markets, and producs its goods and services in severalcountries to minimizcosts, and to maximize profit, customer satisfaction, and social welfare.

Answer 21

MULTINATIONAL ENTERPRISE

Question 22

_____: capable of decomposing naturally within a relatively short period of time.

Answer 22

BIODEGRADABLE