UTK: BUAD 331 Exam 1 Complete (answers updated fall 2022/23.)
UTK: BUAD 331 Exam 1 Complete (answers updated fall 2022/23.) ____________ the chain facilitates better strategic alignment between supply chain operations. A. Breaking B. Sharing C. Bending D. Spreading A firm is a recognized cost leader but has a strategic goal to become a cost and service leader. What is one initiative that could be planned and implemented to achieve this goal? A.Increase sales calls to all existing customers. B.Increase capacity utilization to gain economies of scale. C.Award larger employee bonuses to encourage more emphasis on selling. D.Offer customized services to key customers. E.Own every step of the supply chain instead of relying on external customers. A firm reports the following data: Sales: $445,000 Accounts Receivable Balance: $50,000 Cost of Goods Sold: $280,000 Inventory Balance: $50,000 Accounts Payable Balance: $42,000 Calculate the following matrics: A/R days Inventory days A/P days Cash-to-Cash days When making your calculations, please follow conventional rules for rounding up or down to arrive at your answer. A/R days = Inventory days = A/P days = Cash-to-Cash days = A first-time buyer purchasing school supplies at Wal-Mart can expect this level of customer service: A.Satisfaction B.Stable C.Basic Service D.Success A reduction in a company's inventory investment will result in a ___________ in cash flow. A. Increase B. Decrease A scorecard that is balanced typically includes which type of measure. A. Financial B. Quality C. Learning and Improvement D. Cycle Time E. All of the above A scorecard that is balanced typically includes which types of measure? A. Financial B. Quality C. Learning and Improvement D. Cycle Time E. All of the above A Wall Street Journal article reports on Delta's recent investment in luggage tracking, switching to baggage tags with radio-frequency ID chips embedded. This will allow the airline to accurately track customers' baggage in real time. Even though the new technology costs a great deal, Delta could save on fewer luggage claims and deliveries. What does this example imply? A. Customer service is everything and companies need to provide the highest service level. B. Companies need to catch up with the newest technologies. C. Companies need to evaluate cost-to-serve versus perceived benefits. D. Companies could gain competitive advantage by providing better service According to an E&Y survey of supply chain professionals, what is the priority of the supply chain organization? A. cutting costs B. reducing inventory C. improving customer service D. improving service quality Among the following examples, which refers most closely to the place utility that supply chains provide? A.Amazon provides overnight warehouse services B.An Australian grocery store provides food in remote towns. C.Chipotle prepares and assembles burritos based on orders. D.Target offers electronics repair service for free. Asset Turnover is an indication of how productive _________________. A. a company's assets are at generating revenue. B. a company's sales team is at generating revenue. C. a company is at controlling costs. D. a company's assets are at reducing costs. Changes in the business _____ and _____ help shift the focus of functional goals in the departments of a business (finance. marketing, etc.) to total value creation for the enterprise. A. Customer service and culture B. Hiring process and culture C. Reward system and vacation days D. Reward system and culture Companies lose money on a significant percentage of active customers because: A. They like to give away product to keep the economy strong B. They cannot identify the actual costs of selling to individual customers C. They believe that all customers will eventually become profitable D. They are required to sell to all customers by fairness of competition laws E. They are afraid to price themselves out of the market Customer service standards should be set based upon: A. Trade publication articles about what customers want B. An accurate understanding of actual customer needs C. Managers' assessment of what is best for the customer D. Industry standard service levels Data visualization involves using software packages to better see trends and patterns in data A. True B. False Data visualization involves using software packages to better see trends and patterns in data. A. True B. False Describe actions that the manufacturing organization can take to reduce product costs. > Describe the benefits of keeping accounts receivable balances low. Discuss actions that a firm can take to improve revenues. Downstream, the priority is to deliver the form, time and ________ for a specific customer order. A.upstream B.fairness C.visibility D.place E.ownership End-to-end supply chain measures are the most important type of supply chain metric. A. True B. False Establishing a segmented customer service policy involves all of the following EXCEPT: A. Determining strategic profitability of customer B. Categorizing customers based upon strategic importance C. Establishing a standardized customer service policy for all customers D. Establishing different customer service policy for varying segments 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 the supply chain. B.Encourages collaboration across the supply chain. C.Creating a production-oriented focus across the supply chain. D.Implementing integrated information systems across the supply chain. High performing companies are able to bend the chain to enable alignment between ___________ and delivery. A. Manufacturing and Purchasing B. Purchasing and Accounting C. Manufacturing and Planning D. Purchasing and Marketing How does controlling inventory levels impact the expenses of an organization? > CORRECT; When a firm has inventory, it has expenses related to handling, storing, and tracking the inventory. It has expenses related to equipment and people to move the inventory. The firm has to secure the inventory, and often will insure the value of the inventory. With greater amounts of inventory, all of these expenses go up. Also, firms incur expenses related to inventory damage, obsolescence and theft. These are harder to control as the amount of inventory rises. Another impact is that when a firm's cash is tied up in inventory, it may have to borrow cash to meet other operating needs, so there is a cost of capital of having excess inventory. How does supply chain management create value? A. Form, time, place, exchange B. Product, price, place, promotion C. Cost, asset, capacity, integration D. Responsiveness, productivity, reliability, delivery How does Zara use its supply chain capabilities to generate competitive advantage? A. Stocking clothing far in advance of sales to ensure in-stock availability. B. Buying new seasonal clothing lines in bulk to take advantage of volume discounts from suppliers. C. Speeding cycle times of new fashions from design to store shelf to ensure the trendiest fashions. D. Cycling seasonal clothinterm-0g trends using long-term predictions of demand to lower costs for customers. If a company chooses to explore how best to employ a crowdsourced model of labor/assets and chooses to benchmark this process with similar processes at other companies, which type of benchmarking are they using? A. Internal B. Vital C. Competitive D. Process If a company chooses to explore how best to employ a crowdsourced model of labor/assets and chooses to benchmark Uber, which type of benchmarking are they using? A. Internal B. Vital C. Competitive D. Process If the goal is maintain steady levels of inventory at 1,000, what should supply chain planning ask the manufacturing facility to produce in Month +1? Current Month Month +1 Starting Inventory 1,000 Production 250 Shipments 300 500 Ending Inventory A. 400 units B. 550 units C. 500 units D. 250 units If we are asking our _______ what they want, we must find a way to bridge the great divide. A.Suppliers B.Customers C.Plant manager D.Sales department In 2017, Apple Computer reported the following results for the 4th quarter of operations: Sales $46,852 million Gross Margin $17,813 million Net Margin $ 9,014 million Current Assets $128,645 million Total Assets $375,319 million Calculate Apple's Asset Turnover for the 4th quarter of 2017. A. 4.7% B. 7.0% C. 12.5% D. 2.4% In 2017, Apple Computer reported the following results for the 4th quarter of operations: Sales $46,852 million Gross Margin $17,813 million Net Margin $ 9,014 million Current Assets $128,645 million Total Assets $375,319 million Calculate Apple's Return on Assets for the 4th quarter of 2017. A. 4.7% B. 7.0% C. 12.5% D. 2.4% In relation to the overall supply chain, ______ place a priority on cost savings while _______ place a priority on doing whatever is necessary to deliver form, time, and place as promised on a specific order. A.downstream operations, upstream operations B.upstream operations, downstream operations C.marginal operations, radical operation D.none of the above In the Fiji water example, what key time and place challenge does Fiji bear compared to Dasani? A.Fiji is spring water and Dasani is tap water. B.Fiji only has one source, while Dasani has many. C.Dasani is a Coca-Cola brand, so it has more marketers to push the product than Fiji. D.Consumers prefer purified water to spring water. Integrating supply chain operations is facilitated by what overall planning process? A. Demand Planning B. Marketing Planning C. Capacity Requirements Planning D. Sales and Operations Planning Internally generated customer service and quality metrics accurately reflect a customer perspective. Do you agree with this statement? A. I agree: Customers are best served when my company serves them all in the same way. B. I agree: Customers are happy when days of supply inventories are kept low and quality yields are low C. I disagree: Customer service metrics should be jointly defined by the supplier and the customer D. I disagree: The customer is more interested in a flexible metric arrangement Ismail's wife recently purchased a new pair of hiking boots. She initially chose the company because of price and availability. Through the purchase and fulfilment process she was also impressed with the level of communication and assistance she received. All of these factors combined to provide a high level of: A.Quality B.The intangible quotient C.The "it" factor D.The "secret sauce" that causes companies to succeed E.Customer Value It is said today that marketing is responsible for identifying profitable demand and creating products to incent customers to buy, while supply chain management's role is to: A. provide opportunities for managers to travel the world and get wined and dined suppliers. B. continuously identify new ways to create economies of scale. C. provide sufficient technology to overcome the great operating divide. D. satisfy demand by putting the product in customers' hands at the right time, right place, right quantity and right price. Keeping all other inputs constant, what is one way that SCM does not increase ROI? A. Lower transportation costs B. Lower warehouse rental costs C. Negotiate 60 day vs. 30 day payment terms with suppliers D. Increase inventory turnover rates E. Receive better terms on loans for capital Logistics/supply chain management is closely tied with marketing as it typically fills which "P"? A.Price B.Place C.Promotion D.Player Metrics provide a complete picture of supply chain performance. A. True B. False On the demand creation side, _____________ is concerned with determining and shaping long term customer need, and innovating offerings to satisfy those needs. A.Operations B.The Great Divide C.Manufacturing D.Finance E.Marketing One way to think about the proper role of the supply chain in the firm is the following: A. Making a promise to customers B. Being on one side of the Great Divide C. Delivering on the promise made to customers D. Achieving the firm's internal metrics E. Increasing sales Planning processes heavily utilized IT systems, but a planner is still vital to ensure a high quality plan. A. True B. False Sales: $460,000 Accounts Receivable Balance: $40,000 Cost of Goods Sold: $300,000 Inventory Balance: $87,000 Accounts Payable Balance: $25,000 Calculate the following metrics: A/R days = Inventory days = A/P days = Cash-to-Cash days = Service segmentation is a customer value process whereby customers are: A.Clustered according to strategic importance to the firm B.Provided uniform levels of service C.Provided the perfect order every time D.Provided differentiated service levels based upon distance from the distribution center > Should all customers receive the same level of customer service? A.Yes B.No Supply chain management must demonstrate how improved value contributes to improvements in financial performance. What are three major ways supply chain management does this? A. Increasing top-line revenue, facilitating exchanges at lower prices, and improving customer service. B. Increasing profitability, provides best-practice customer service to each customer, utilizing technology to make products ubiquitous. C. Improving asset turns, increasing top-line revenues, and increasing profitability through cost reductions and efficiencies D. Improving customer service, reducing working capital, and creating looser credit terms so customers have longer to pay for their purchases. Supply chain management refers to a relatively new business phenomenon: A. The comprehensive management of a networks of suppliers. B. The meaningful integration of service with customer fulfillment. C. The collaboration between operations and suppliers. D. The management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole. E. The procurement, movement, and storage of product and information flows through the organization to maximize profit through cost-effective order fulfillment. Supply Chain Management refers to: A. The comprehensive management of networks of suppliers B. The meaningful integration of service with customer fulfillment C. The collaboration between operations and suppliers D. The management of up and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole E. The procurement, movement, and storage of product and information flows through the organization to maximize profit through cost-effective order fulfillment Supply chain management: A. emphasizes optimized advertising and promotion across the organization. B. requires a high level of corporate input in inventory management and production scheduling decisions. C. extends the linking and coordination of materials management, manufacturing management and distribution upstream to suppliers and downstream to customers. D. uses mergers and acquisitions across the supply chain integration to better manage materials flow from suppliers and distribution of end products to the customer. Supply chain measurement is important for all the reasons below except: A. To provide important information to others in the supply chain B. To build the income statement C. To drive employee incentives and alignment D. To identify where improvement is needed Supply chain measurements are often called all of the below except: A. Key performance indicators B. Performance measures C. Metrics D. Critical points Supply chains that consistently deliver the strongest business results have effective IT and work processes that enable superior results by providing _____________ teams the proper tools and information. A.Highly specified B.Close-knit C.Multifunctional D.Highly paid Supply chains that consistently deliver the strongest business results have fully integrated end-to-end organization with common ________. A.Metrics B.Friends C.Manufacturing processes D.Budgets Supply chains that consistently deliver the strongest business results have talented organizations that reward people for both in-depth mastery and _________ leadership. A.Middle-to-end B.End-to-end C.Channel D.Exceptional Suppose that a company called Futuristics, Inc hires you to work in Supply Chain Management. Your new manager sets up a meeting to discuss the Surfers, Inc. account. The meeting opens with the manager stating, "I just reviewed the financial report on Surfers, Inc. It really doesn't cost much to serve them, does it?" Which of the following would be an appropriate response to the manager's statement? A. Traditional accounting methods are perfect to help us make decisions about serving the Surfers, Inc. account B. Activity-based costing would be better to report the Surfers, Inc. results to the financial community C. Traditional cost accounting gives us a good measure for comparing by customer D. Activity-based costing could better show us how much it really costs to serve Surfers, Inc. E. Activity-based costing takes depreciation into account to enable us to know when to replace machinery Ted's analysis leads him to divide his customers into 3 categories based on profitability. "A"- these are his top 20% of products and customers. "B" - these are the next 50% of products and customers. "C" - these are the bottom 30% of products and customers. What was the purpose of completing the activity? A. To enable him to serve his best customers at a higher level and promote his best products B. To help convince his creditors that Ted's Wicked Dive Shop is profitable and able to meet loan expectations for capital equipment expenditures C. To expand his marketing budget D. To reduce cycle time and carry more inventory E. To utilize his truck capacity more efficiently The "Great Divide" in supply chain management occurs between: A. suppliers and manufacturers B. demand-generating activities and demand-fulfilling activities C. sales and marketing activities D. organizations and their customers The Acme Company reports the following data: Sales80,000 Gross Margin 8,000 Operating Margin 3,000 Current Assets 300,000 Total Assets 450,000 What is Acme Company's Operating Income percentage? A. 0.7% B. 2.8% C. 3.8% D. 10.0% The Highline Company reports the following partial set of income statement data: Sales 200,000 Depreciation & Amortization Expense 18,000 Gross Margin 68,000 Interest and Tax Expenses 4,000 Net Margin 15,000 Calculate Highline's EBITDA. (Earnings Before Interest Tax Depreciation and Amortization) A. 19,000 B. 37,000 C. 46,000 D. 50,000 The metric used as a proxy for a company's cash flow is ______________. A. Revenue Growth B. EBITDA C. Operating Income D. Gross Margin The perfect order concept is best measured by the following: A. the customer believes this is a perfect gift B. the order arrived in perfect condition C. the order shipped in perfect condition D. the order was received in good condition when expected The process that determines how much inventory to carry and where to place it is: A. Demand Planning B. Supply Planning C. Manufacturing and Capacity Planning D. Logistics and Distribution Planning The process which takes the demand forecast and plans what material is required to be purchased from suppliers over upcoming periods is: A. Demand Planning B. Supply Planning C. Manufacturing and Capacity Planning D. Logistics and Distribution Planning The separation between demand-focused activities and supply-focused activities is sometimes referred to as: A. suppliers and manufacturers B. retailers and consumers C. suppliers competing with each other materials management and manufacturing D. The Great Divide The Strategic Profit Model can be used to illustrate the impact of logistics and supply chain on ROA (Return on Assets) by: A. Illustrating how increased promotional activity can improve a company's ROA B. Illustrating how varying components of Net Profit Margin and Asset Turnover can lead to different values of the Return on Assets ratio C. Illustrating how variations in Inventory Costs can lead to different values of the cash-to-cash cycle D. Describing different ways to manipulate variables related to a company's accounting philosophy The Supply Chain value proposition framework represents the interactions between: A. Revenues cash and costs B. Revenues, costs and assets C. Cash, cost of goods sold and inventory D. Operational value, profitability and inventory The UT College of Business Administration creates a list of classes offered each semester. However, the options do not always meet student want and needs. This is an example of A.Customer (Student) Segmentation B.The Great Divide C.Supply Chain/Marketing Interface D.Core Product E.Time and Place Utility Traditional cost accounting procedures allocate costs to customers based upon: A. The percent of total sales represented by each customer B. The lifetime value of each customer C. The customer service segment to which each customer is assigned D. The actual cost associated with activities performed to serve each customer Two kinds of customers walk into the Grizzly Fly-Fishing Shop: college freshmen taking a first-time class and high-end professional executives with fishing experience. In order to deliver the most value to each of these customers, John (the store owner) should: A. focus on creating a supply chain that delivers the best average form, time and place value at the lowest average cost. B. 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. C. focus on building enough inventory of both high- and low-end gear, so that he can satisfy either kind of customer who walks through the door. D. focus on lowering per unit costs by purchasing his full range of gear at high volumes. > What are the three types of benchmarking discussed? A. Competitive, Collaborative, Comprehensive B. Process, Collaborative, Internal C. Competitive, Process, Collaborative D. Competitive, Process, Internal What did Caterpillar do in 2013 that led to a better integration of its supply chain functions? A.Implemented a completely digital supply chain B.Formed an integrated supply chain group to manage it's supply chain C.Hired a BCG consultant, who fixed most of its problems D.Hired a marketing company What is a company's optimal service level? A. 95% B. The point where the cost and revenue curves are farthest apart C. 100% D. Standard industry service levels What is Apple's Return on Assets for the 4th Quarter of 2016? A. 4.7% B. 7.0% C. 12.5% D. 2.4% What is the main problem with the traditional order process, as depicted in this figure? A. Activities are parallel and integrated through many functions. B. Activities are sequential and thrown "over the wall" to the downstream functional area. C. Activities are hard to complete. D. Activities are circular and have to be repeated. E. Activities create a positive physical work environment for employees What is the major advantage of Dell's ordering and payment policies? A. Negative cash-to-cash cycle B. Low total cost of ownership C. Decreased maintenance cost D. Ownership of the complete supply chain E. Decreased landed cost What megatrend will greatly challenge supply chain managers? A.Disruptive technology B.Talent/skills requirements C.Social changes D.All of the above E.None of the above What negative can result from large lot, long lead time operations? A.Customers are overjoyed B.The items are in place and at times customers don't want them C.The company's sales increase too much D.The company's profits increase too much What negative outcomes can result from large lot-sized, long lead-time operations? A.Customers don't want the items. B.The items are in places and at times customers don't want them. C.Unsold products are sold at reduced prices or scrapped altogether. D.All of the above What part of the Supply Chain Operations Reference (SCOR) model involves turning the raw material into a finished product? A.Plan B.Make C.Source D.Deliver What planning approach is critically important for a planner to be successful in their role? A. Plan driven B. Exception based C. Fine tuned D. Algorithm specific When benchmarking, ______ comparisons should be used if we are trying to determine if our process can be performed better than we have before, while ______ comparisons should be used if we are trying to determine industry competitiveness. A. extensive, internal B. external, crisis C. internal, external D. neutral, critical Which activity area in the supply chain is generally focused on productivity or "up time" and usually has no visibility of customer service or inventory metrics? A. Make B. Design C. Marketing D. Delivery Which activity area in the supply chain is generally focused on the short term planning horizon and is often measured by reduction in cost of goods sold? A. Make B. Design C. Source D. Delivery Which economic reason is NOT a reason for students to buy textbooks on A? A.Form B.Time C.Place D.Exchange Which economic utilities are associated with supply chain management? A.Form, Time and Place B.Exchange, Time and Place C.Exchange, Time and Place D.Form, Exchange and Time E.Exchange, Time and Value Which emerging megatrends will greatly challenge supply chain managers? A. Disruptive technology, talent requirements and international terrorism B. Talent requirements and drop-shipping C. Social changes and credit restrictions D. Disruptive technology, talent requirements and social changes Which of the following actions is most likely to have the largest impact on profitability? A. reduce operating costs B. reduce operating margin C. reduce product costs D. increase revenues Which of the following actions will most directly will lead to more cash availability? A. Increase sales B. Collect account receivable more quickly C. Reduce obsolete inventory D. Increase profits Which of the following are not one of the ways a supply chain creates value for its customer: A.Plan B.Listen C.Make D.Deliver Which of the following areas are not impacted by Supply Chain: A. Revenue Generation B. Total Cost Management C. Asset Utilization D. All of the items above are impacted by Supply Chain Which of the following is an example of an end-to-end supply chain measure? A. Overall cycle time from order to customer delivery B. Order shipment time C. Manufacturing time D. Shipping time Which of the following is NOT a primary purpose of a company's cash: A. Day to day operations B. Precautionary balances C. Management bonuses D. Strategic initiatives Which of the following is NOT a way that supply chain management impacts ROI? A. Lowering transportation costs B. Reducing inventory levels C. Increasing sales through improved service levels D. Reducing the amount of warehouses needed to hold inventory E. Increasing advertising spend to increase demand Which of the following is not an element of the integrated supply chain for General Mills' Honey Nut Cheerios? A.Dairy cow farmers B.Oat farmers in Iowa C.Union Pacific railroad that moves oats to distributors D.General Mills manufacturing plants E.Ted, who eats Honey Nut Cheerios every morning Which of the following is willing to do things for the customer that may lose money for the firm? A.Procurement B.Operations C.Logistics D.R&D Team Which of the following supply chain functions should be focused on customer service because of its timely delivering of products to consumers: A.Logistics B.Procurement C.Operations D.Management Which of the following utility does General Mills provide when it uses food ingredients to make Honey Nut Cheerios? A.Time B.Place C.Form D.Financial asset Which of the following would be a metric for a senior level supply chain manager? A.3.4 defects per opportunity B.Cash-to-cash cycle C.Stock price D.Marketing's forecast accuracy Which of these is an example of a "tax haven"? A. a legal entity of corporation B. a branch of a corporation that reports losses C. a country or jurisdiction with very low corporate taxes D. a country without a tax treaty with the US Which one of the types of planning was not introduced in this module? A. Date Planning B. Supply Planning C. Production Planning D. Distribution Planning E. New Product Introduction Which part in supply chain misalignment is focused on "up time" and has no visibility of customer service or inventory metrics? A.Make B.Design C.Source D.Delivery Which planning approach was discussed in this module? A. Plan driven B. Exception based C. Fine tuned D. Algorithm specific You've finally graduated and are in the job market. In an interview with Widget Production Company, you start discussing supply chain management with the hiring manager. He tells you that at WPC, logistics and supply chain management basically mean the same thing. This should indicate to you that: A. WPC probably does not have a clear conception of supply chain management, because SCM is about systematic integration across multiple functions, including purchasing, manufacturing and logistics. B. WPC has a solid grasp of what supply chain management means, because SCM is all about delivering products to customers when they want them (time utility). C. A supply chain manager at WPC would have responsibility for purchasing and manufacturing functions in addition to logistics. D. Your performance, should you take the job, will be based on total cost of ownership and return on asset measures, instead of functionally specific measures like product delivery at the lowest unit cost.
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utk buad 331 exam 1
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supply chain management refers to a the comprehensive management of networks of suppliers b the meaningful integration of service
