SCM Exam 1

Question 1

Amazon creates value by providing enhanced levels of which of the following utilities

Answer 1

Time & place

Question 2

Best description of supply chain digitalization

Answer 2

The ability to structure and exchange massive amounts of data, to make sense of that data to drive decisions, and even to apply data to deliver products or services

Question 3

Which function of the supply chain is considered to be the most “upstream”?

Answer 3

The identification, acquisition, and management of the goods and services inputs needed to run a business

Question 4

Fiji bottled water emphasizes its unique source as an example of which value utility?

Answer 4

Place

Question 5

Supply chain management contributes to reduced environmental impact in all of the following ways EXCEPT:

Answer 5

Sourcing from global areas to increase transportation miles

Question 6

Which function of the supply chain is considered to be the most “downstream”?

Answer 6

Returns management

Question 7

The optimal way for supply chains management to contribute to competitive advantage is through:

Answer 7

Being the leader in both cost and form/time/place value creation

Question 8

Which of the following organizations competes on exchange value by providing low prices for products?

Answer 8

Walmart

Question 9

The three classifications of supply chain value desired by customers are:

Answer 9

Time form place

Question 10

Supply Chain management contributes to financial performance through:

Answer 10

Growing top line revenue, reducing costs, and improving asset turnover

Question 11

What kinds of things can Kai and Thea do to create greater form, time, and place value for their customers?

Answer 11

Both expanding the range of product offerings and offering a line of customized equipment via a direct-to-consumer model.

Question 12

What kinds of things can Kai and Thea do to create greater form, time, and place value for their customers?

Answer 12

Both expanding the range of product offerings and offering a line of customized equipment via a direct-to-consumer model.

Question 13

How can KT’s Dive Shop integrate sustainability into their supply chain?

Answer 13

Implement a closed-loop supply chain by offering a program for consumers to recycle their used diving gear.

Question 14

What overarching goals should drive the design and execution of KT’s supply chain?

Answer 14

Financial goals (such as net income, return on assets, etc.).
Their customer value goals (i.e., KT’s Wicked Dive Shop value proposition).
Sustainability goals (such as the sale of goods made from recycled ocean plastics).

Question 15

Based on the case prompt, what is one way that Kai and Thea can create customer value?

Answer 15

Identify the form, time, and place utility that their customers value.

Question 16

Which of the following is NOT a component of KT’s Wicked Dive Shop supply chain?

Answer 16

Competitors, such as the “big box” scuba and dive center which has recently opened

Question 17

What level of customer service should Kai and Thea offer to each of their customer segments?

Answer 17

Segment their customer base and set service levels based on the form, time, and place value each segment desires.

Question 18

From a supply chain perspective, how can Kai and Thea concurrently enhance their customer value proposition and the financial performance of their dive shop?

Answer 18

Integrate demand, supply, finance, and strategy to make more effective decisions.

Question 19

What are the implications to KT’s Dive Shop of having the wrong products in stock?

Answer 19

The cost of holding inventories (having too much of the wrong stuff).
The lost sales associated with a stockout (not enough of the right stuff).
Spoilage and obsolescence costs of inventory (stuff held past its expiration date).

Question 20

Which of the following must Kai and Thea do first to ensure their entire internal supply chain is working toward shared organizational goals?

Answer 20

Integrate their plan, source, make, deliver, and return functions.

Question 21

What is one of the key issues that Kai and Thea faced during their first year of operations?

Answer 21

Determining which products to stock, how much to have of each, and how to price/promote them, resulting in lost sales and excessive costs.

Question 22

Total value optimization involves:

Answer 22

Finding the optimal balance between increasing revenue and minimizing cost

Question 23

Forming alliances and encouraging innovation are core aspects of a business competing on what?

Answer 23

Total value optimization

Question 24

Best-practice supply chains strive for supply chain functions to be:

Answer 24

Aligned to minimize total cost

Question 25

To achieve an integrated internal supply chain:

Answer 25

KPIs must include metrics to capture TVO
Senior leadership must champion internal supply chain integration
Reward structures must focus on total value creation
Culture must shift away from sub-optimal functional goals

Question 26

The “Great Divide” is best described as

Answer 26

the lack of communication and coordination between the creation and management of demand and the fulfillment of demand.

Question 27

Traditional supply chain models are not suited to industries facing which of the following?

Answer 27

Increasing complexity and competition

Question 28

Under traditional supply chain management, performance is believed to be maximized by ensuring lowest-cost operations. This is accomplished by:

Answer 28

Using long-term projections for forecasting
Procuring, producing, and positioning in large volumes far in advance of demand
Reducing unit cost to ensure high margins
Achieving economies of scale in each functional area

Question 29

An example of a supply chain activity that may reduce overall cost but be ineffective from a total value optimization perspective is:

Answer 29

Offshoring

Question 30

What functions must be integrated to facilitate a seamless internal supply chain?

Answer 30

Making, sourcing, delivering, planning

Question 31

“Bending the chain” refers to:

Answer 31

A move from a linear supply chain model to an integrated, overlapping one

Question 32

What level of customer service should Kai and Thea offer to each of their customer segments?

Answer 32

Segment their customer base and set service levels based on the form, time, and place value each segment desires.

Question 33

The supply chain operating cycle spans from when _______________to_____________.

Answer 33

production materials are bought; customer payment is received

Question 34

Financial performance metrics are valuable mostly because

Answer 34

they capture the economic consequences of business decisions

Question 35

In reference to revenue generation, place is best described as:

Answer 35

making a product available where the customer wants it.

Question 36

Which of the following supply chain actions negatively impact revenue?

Answer 36

Long lead times
Lead times and quality only
Stock-outs
Poor quality of supplier’s product

Question 37

In reference to revenue generation, time utility is best described as

Answer 37

Making a product available when the customer wants it.

Question 38

Return on Assets is calculated as

Answer 38

Net income / assets

Question 39

Which of the following is an example of a fixed cost in the supply chain?

Answer 39

Equipment costs

Question 40

Value is created for an organization through effectively influencing and managing which of the following components EXCEPT:

Answer 40

Price