Chapter 2 and 4

Question 1

a plan for the company
that clearly defines:
– the company’s long-term
goals
– how it plans to achieve
these goals, and
– the way the company plans
to differentiate itself from its
competitors
can be described as?

Answer 1

The Business Strategy

Question 2

a long-range plan for the
design and ongoing
management of all supply
chain decisions that
support the business
strategy is known as?

Answer 2

Supply Chain Strategy

Question 3

All organizational functions should be designed to support the business strategy (which involve six parts of a company) what are the 6?

Answer 3

• Supply Chain Management (SCM)
  – Marketing
  – Operations
  – Distribution
  – Purchasing
  – Finance

Question 4

A well designed supply chain can provide companies with needed competitive advantage. Two advantages provide a basis of strategy and competitive positioning in the marketplace and they are known as?

Answer 4

• Cost-Productivity Advantage
  – Value Advantage

Question 5

Which competitive advantage comes from offering the lowest cost product or service

Answer 5

Cost-Productivity Advantage

Question 6

What enable the company to spread its fixed costs over a greater volume

Answer 6

Economies of Scale

Question 7

What business feature refers to organizational costs that are reduced due to experience that results from processing a higher volume

Answer 7

Experience Curve

Question 8

What are three examples of a Cost-Productivity Advantage at work

Answer 8

Economies of Scale
Experience Curve
Efficient Supply Chain Network

Question 9

What are two methods to gain a value advantage

Answer 9

-Identify “Value-Segments”
– Service

Question 10

Which competitive advantage comes from providing a product/service with the greatest perceived differential value compare with its competitors

Answer 10

Value Advantage

Question 11

Improving Supply Chain Management can
provide a way for companies to achieve a cost-value advantage over competitors by?

Answer 11

Reduce Supply Chain Costs
– inventory, distribution, coordination
Service Excellence
– shorter lead times, just-in-time deliveries
New Supply Chain Technologies

Question 12

-Determining the design & manufacture of a company’s
manufacturing processes
– The design of internal processes
– Use of equipment & information technology
– Types of employee skills needed
are all apart of *** strategy

Answer 12

Operations Strategy

Question 13

The *** strategy involves decisions about how it will produce goods and services

Answer 13

operations

Question 14

What strategy determines the degree of product customization
offered

Answer 14

Product Positioning Strategy

Question 15

T/F- The operations strategy is a dynamic process that needs to change as the product moves through different life-cycle changes

Answer 15

True

Question 16

What strategy relates to the form in which the company stores its finished products and delivery lead
time

Answer 16

Product Positioning Strategy

Question 17

What are the three options for the product positioning strategy?

Answer 17

• Make to stock
• Assemble to order
• Make to order

Question 18

Which operation strategy produces finished products for immediate sale or delivery, in anticipation of demand can be described as what strategy

Answer 18

Make- to- stock

Question 19

What is the best operation strategy for standardized products that sell in high volume

Answer 19

Make-to-stock

Question 20

Which operations strategy is best for producing these characteristics?
- large production batches
- provides finished products in inventory
- typically assembly line operations
- delivery lead time is shortest
- no customer involvement in product design

Answer 20

Make-to-stock

Question 21

Which operations strategy states that the product is partially completed and kept in a generic form, then finished when an order is received

Answer 21

Assemble-to-order

Question 22

Which operations strategy is best for producing these characteristics?
- provides for many variations of the end product
- standard components held in inventory
- components combined to customer specifications
- shorter lead times than make-to-order
- low finished-goods inventory

Answer 22

Assemble-to-order

Question 23

Which operation strategy am I stating? The product is made to customer specifications after an
order has been received

Answer 23

Make-to-order

Question 24

Which operation strategy is for customized products or products with infrequent demand

Answer 24

Make-to-order

Question 25

Which operations strategy is best for producing these characteristics? - provides for many variations of the end product - low product volumes - longest delivery time

Answer 25

Make-to-order

Question 26

Which operation strategy has the shortest delivery lead time?

Answer 26

Make-to-stock

Question 27

Which operation strategy has the longest delivery lead time?

Answer 27

Make-to-order

Question 28

What strategy determines how the company plans to get its products and services to customers

Answer 28

Distribution Strategy

Question 29

What strategies duties are described by the following characteristics?

Answer 29

- channel intermediaries (distributors) vs. direct sales to customers – market segment analysis – competition analysis – vary strategies by market segment

Question 30

What are the two different types of distribution strategy?

Answer 30

- Distributing the product to retailer - distributing the product to the customer

Question 31

What strategy determines which aspects of a company’s business it is going to outsource and which ones it will retain internally

Answer 31

Sourcing Strategy

Question 32

What are two sourcing strategies?

Answer 32

- Outsourcing Advantages - Outsourcing Risks

Question 33

Outsourcing advantages produce?

Answer 33

- Cost savings – Expand into new markets/geographic areas – Achieve technological capability

Question 34

Outsourcing Risks contributes to

Answer 34

- loss of control - dependency

Question 35

What strategy determines how the company is going to meet the demands of its customers

Answer 35

Customer Service Strategy

Question 36

T/F- For customer service strategy, the market is divided by volume and profitability

Answer 36

True

Question 37

Should be based 1st on the overall volume and profitability of market segments * Next, understand what customers in each segment want and decide how to meet customers demands

Answer 37

Customer Service Strategy

Question 38

A high volume and high value market segment is highly or lowly desirable

Answer 38

Highly

Question 39

A low volume and low value market segment is highly or lowly desirable

Answer 39

lowly desirable

Question 40

The way a company competes in the marketplace is called

Answer 40

Competitive Priority

Question 41

T/F- The supply chain strategy must support the competitive priorities identified in the firm’s business strategy.

Answer 41

True

Question 42

What are 5 competitive priorities?

Answer 42

1) Cost 2) Quality 3) Time 4) Innovation 5) Service

Question 43

T/F- Companies that compete on cost offer products the highest price possible

Answer 43

False, Companies that compete on cost offer products do it at the lowest price possible

Question 44

What are four supply chain considerations for companies that compete on cost?

Answer 44

- asset utilization - inventory days of supply - product and supply chain costs - product and process standardization

Question 45

What are three ways companies can utilize competing on time?

Answer 45

- tech to speed processes - flexible workforce for peak demands -system analysis to eliminate/combine processes

Question 46

T/F- Companies that compete on time deliver products in as short a time as possible

Answer 46

True

Question 47

Competing on time is measured by two different types of measures called?

Answer 47

- Rapid Delivery - On-time Delivery

Question 48

T/F- Companies that compete on innovation focus on developing “must have” products

Answer 48

True

Question 49

Companies that use competing on innovation focus on what two details?

Answer 49

Speed and product design collaboration

Question 50

Companies that compete on *** have products and services known for their premium nature. What am I referring to?

Answer 50

Compete on quality

Question 51

Embed quality throughout the supply chain is guaranteed by

Answer 51

TQM and Six Sigma

Question 52

The supply chain has the ability to easily trace a product

Answer 52

Product Traceability

Question 53

Companies that compete on **** tailor their products to meet the specific needs of target customers

Answer 53

Compete on Service

Question 54

Companies that compete on service rely on what three characteristics

Answer 54

Customer Loyalty Consistency Reliability

Question 55

Characteristics that win orders are known as

Answer 55

Order Winners

Question 56

Characteristics that qualify the company to participate in a particular market are known as

Answer 56

Order Qualifiers

Question 57

Successful companies focus on the strategically important dimensions. This is known as competing on?

Answer 57

competing on all dimensions

Question 58

Larger firms have advantages they can offer and receive. What is an advantage of a large firm to customers? to the firm?

Answer 58

- Quantity discounts - high degree of supply chain control

Question 59

T/F-Smaller companies can develop supply chain strategies within a particular market segment

Answer 59

True

Question 60

These characteristics describe supply chain **** - development of a new technology – change in the scope of a company’s business – ANY change in a company’s competitive position

Answer 60

adaptability

Question 61

What is a measure of how well a company uses its resources

Answer 61

productivity

Question 62

The formula for productivity is?

Answer 62

Productivity= Output divided by input

Question 63

A dry cleaning company has a monthly dollar value of outputs worth $18,000 and inputs worth $9,000. Calculate the monthly total productivity.

Answer 63

total productivity = 2.0

Question 64

The machines at the dry cleaning company can clean 32 garments in eight hours. Calculate the machine productivity.

Answer 64

Machine Productivity= 4 garments/hr

Question 65

Productivity is a useful metric for evaluating ****?

Answer 65

competitiveness

Question 66

This term can be evaluated overtime and may be benchmarked against a standard

Answer 66

Productivity

Question 67

The dry cleaning company chose to track machine productivity on a monthly basis and had purchased new machines in the third month: Month 1- 3.8; Month 2- 4.0; Month 3 5.3; Month 4-6.4; Month 5-6.9

Answer 67

Current period- previous period / previous period multiples by 100% will = % productivity improvement =5.26%

Question 68

Who purchases are made by an individual or household to satisfy personal needs

Answer 68

End Customer

Question 69

Who makes purchases for an organization in order for employees to perform their jobs

Answer 69

Organizational End User

Question 70

What does the customer-driven supply chain look like

Answer 70

Supplier then manufacturer then distributor/wholesaler then retailer and the the customer which could be an individual or organization

Question 71

What does CRM stand for?

Answer 71

Customer Relationship Management

Question 72

An information industry term for methodologies, software, and internet capabilities that help an enterprise to manage its customer relationships in an organized way.

Answer 72

Customer Relationship Management

Question 73

A marketing philosophy based on putting the customer first is known as

Answer 73

Customer Relationship Management

Question 74

Enabling marketing departments to identify and target their best customers, manage marketing campaigns, and generate quality leads for the sales team. This is an example of?

Answer 74

Customer Relationship Management

Question 75

Allowing the formation of individualized relationships with customers, in order to improve customer satisfaction and maximize profits by identifying the most profitable customers and providing them with the highest level of service. Is an example of what?

Answer 75

Customer Relationship Management

Question 76

Who provides employees with the information and processes necessary to know their customers; understand and identify customer needs; and effectively build relationships among the company, its customer base, and distribution partners

Answer 76

CRM

Question 77

Who assists the organization in order to improve sales management by optimizing information shared by multiple employees, preparing metrics on sales effectiveness, and monitoring social media sites as a vehicle for crowd-sourcing solutions to client-support problems.

Answer 77

CRM

Question 78

CRM uses automated customer transactions to gather data captured by what kind of software modules

Answer 78

ERP Software modules

Question 79

After the data is collected from the modules provides insights in to?

Answer 79

Market Segmentation

Question 80

After collecting data and receiving insight about the market segmentation what does CRM do for the customer?

Answer 80

It will then create customized customer communication

Question 81

T/F- The CRM method is expected to grow up to 35 billion dollars by 2023 and its growth is part fueled by the integration of AI.

Answer 81

TRUE

Question 82

What is the central focus of SCM?

Answer 82

Bring value to customers

Question 83

T/F- Responsibility of marketing to understand what the customer perceives as value

Answer 83

True

Question 84

the process of capturing customer needs and preferences is known as

Answer 84

Voice of the customer

Question 85

Customer needs can be divided into three categories. What are the 3?

Answer 85

Basic Needs - minimum customer expectations Performance Needs - differentiate one product from another Excitement Needs -elicit delight over the product

Question 86

What are the three categories for the VOC process

Answer 86

1- Divide Customers into Market Segments 2- Conduct Market Research 3- Utilize Quality Function Deployment (QFD)

Question 87

What is an example of VOC process step 1: Divide Customers into Market Segments

Answer 87

A woman may value price and the other may be willing to pay a higher premium for higher quality therefore they are in separate segments

Question 88

What is an example of VOC process step 2: Conduct market research

Answer 88

Do this by conducting surveys or interviewing customers to shift through feedback to identify key drivers of value for each market segment

Question 89

What is an example of VOC process step 3: Utilize Quality Function Deployment (QFD)

Answer 89

the company will take back key drivers of value and relate them back to product or service characteristics by employing the QFD tool

Question 90

T/F- Effective customer service performance measures focus on the viewpoint of the supplier rather than the customer

Answer 90

False, Effective customer service performance measures focus on the viewpoint of the customer rather than the supplier

Question 91

T/F-The measures companies use to measure customer service permit the company to benchmark their performance against others in their industry

Answer 91

True

Question 92

T/F- Most companies rely on very few measures of customer service

Answer 92

False- Most companies rely on multiple measures of customer service

Question 93

T/F- If a company wishes to be effective at customer service performance, they must shift their focus to a customer-oriented type standard

Answer 93

TRUE

Question 94

What does the customer oriented standard look like?

Answer 94

- order received on time - order received and completed -order received damage free - and was received on time

Question 95

Customer service impacts the supply chain on four dimensions

Answer 95

Time – speed at which the company responds Dependability – consistency in meeting promises to customers Communications – providing real time order status Convenience – providing more customization to customers