MGT340 : Midterm Revision Exam

[CH1] According to the core definition, supply chain management integrates suppliers, manufacturers, distribution centers, distributors and retailers in order to minimize system-wide costs while achieving the consumer's desired value proposition.

[CH1] In the supply chain value proposition, Service Excellence is linked to efficiency, while Cost Minimization and Avoidance is linked to effectiveness.

[CH1] The CSCMP definition states that supply chain management integrates supply and demand management within and across companies.

[CH3] Logistics management focuses on designing and administering a system to control the timing and geographical positioning of raw materials, work-in-process, and finished inventories at the lowest total cost.

[CH3] Within the logistics service benefits, operational performance refers to how consistent the quality of logistics performance is over time.

[CH3] The echelon logistical arrangement is designed to ship products directly to the customer's destination from one or a limited number of centrally located inventories, using premium transportation.

[CH3] In supply chain synchronization, dwell time is the ratio of the time inventory sits idle compared to the time it is being moved to a desired location.

[CH5] Independent demand is under significant control of the firm because it is driven by the firm's own production schedule.

[CH5] Multi-echelon demand is more difficult to forecast than single-echelon demand because forecasts are needed for both the local and the regional distribution centers.

[CH5] The moving average technique is most useful when demand has significant seasonality or trend.

[CH5] To make S&OP work, the process should be executed every month and its focus should be on the next 3 to 12 months.

[CH6] Bottleneck purchases have low value to the firm but a high level of supply risk, so the recommended strategy is to use multiple suppliers.

[CH6] A job shop process is characterized by very high product variety, very low volume, and a very short customer lead time.

[CH6] Durability is the likelihood that a product will perform throughout its expected life.

[CH6] In assemble-to-order manufacturing, base components are made and stocked to forecast, and manufacturing postponement is practiced because final assembly waits for the customer order.

[CH1] A retailer's supply chain starts offering products in new locations, a wider product mix, and customized solutions for key customers. Which supply chain value-add does this represent?

[CH1] In the supply chain value proposition, Continuous Improvement is paired with which theme?

[CH1] The notes warn that 'firms can be fast alone; it's called hurry up and wait.' What do they present as the goal instead?

[CH1] An online grocer is pressured by shoppers who 'want it now', expect personalized orders, and buy across store, app and website. Which type of industry disruptor is this?

[CH3] A medical supplier measures how often the products a hospital orders are actually in stock and meet the hospital's requirements when the order arrives. Which logistics service element is being measured?

[CH3] To protect against unexpected disruptions, a distributor holds additional safety inventory and uses expedited transportation when shipments are late. Which logistical integration objective is this?

[CH3] A fashion company uses information technology to move away from forecast-based stocking towards rapid order-to-shipment, satisfying customers in a timely manner. Which logistical integration objective is it pursuing?

[CH3] An industrial customer is deliberately served from two similarly adjacent warehouses so that its orders can be filled from either one as a preplanned contingency. Which logistical operating arrangement is this?

[CH3] Which area of logistical operations includes resource planning, supply sourcing, negotiation, inbound transportation, and receiving and inspection?

[CH3] According to the notes, what is the key and main goal of performance cycle synchronization?

[CH3] How do the notes distinguish logistics from supply chain management?

[CH5] A bicycle manufacturer's need for wheels is calculated directly from its own weekly assembly schedule. What type of demand do the wheels have?

[CH5] An airline gives a much higher service level to spare parts that are critical to keeping its aircraft flying than to non-critical parts. Which demand type is the airline planning for?

[CH5] A firm can obtain a product very quickly and has limited economies of scale. According to the notes, where should its planning focus be?

[CH5] A company must maintain forecasts for thousands of items, each with its own trend and seasonality, and wants recent demand weighted more heavily. Which forecasting technique fits best?

[CH5] An ice-cream producer predicts weekly sales using its planned prices and promotion schedule as the explanatory variables. Which forecasting technique is it using?

[CH5] In the sample APS situation, requirements are 200, 200, 200, 600 and 200 units over five periods, and capacity is 300 units per period. Under the build-ahead alternative, how much inventory is carried into period 4?

[CH5] When a customer and supplier start CPFR, which step comes first according to the notes?

[CH5] Which of the following is a barrier to an effective S&OP process rather than a benefit of it?

[CH6] A chemical plant buys a specialized catalyst that is high in value and available from only one or two suppliers worldwide, so supply risk is high. Which procurement portfolio strategy is recommended?

[CH6] A buyer focuses on getting the lowest price for acceptable quality in today's deal, never looks beyond first-tier suppliers, and simply responds to production's demands. Which perspective does this reflect?

[CH6] Moving from the traditional TQM three-sigma level to six-sigma quality reduces defects per million from approximately:

[CH6] A firm with annual revenue of $200 million applies the notes' volume-consolidation assumptions: purchases are 55% of sales and consolidation saves 10% of purchases. What is the annual saving?

[CH6] A paint maker produces a small quantity of a special colour in a single production run before switching the line to another colour. Which manufacturing process is this?

[CH6] A computer maker stocks processors, cases and memory to forecast but assembles each computer only after a customer order is received. Which manufacturing strategy is this?

[CH1] Define supply chain management and explain the four elements of the supply chain value proposition, stating the theme each one is linked to.

[CH3] Explain the logistics value proposition, covering the three service benefits and the cost minimization side.

[CH3] List and explain the six operational objectives that must be achieved simultaneously for logistical integration.

[CH5] Compare the four pairs of demand types discussed in the notes, giving an example or characteristic for each.

[CH5] Define Sales and Operations Planning (S&OP) and list the main steps of the S&OP process.

[CH5] Explain four forecasting techniques from the notes, stating for each its description, when it is useful, and its main limitation.

[CH6] List and define the eight dimensions of product quality.

[CH6] Explain the concept of total cost of ownership (TCO) and describe its three major categories of cost components with examples.

[CH5] Identify the planning problem at Gulf Breeze and explain how a Sales and Operations Planning process would address it.

[CH6] Classify the inverter compressor and the cardboard cartons in the procurement strategy portfolio and recommend the strategy for each.

[CH6] Which manufacturing strategy is Gulf Breeze now using for its units? Explain your answer and how it affects what the company must forecast.

[CH3] Identify the logistical operating arrangements Dilmun uses for pharmacy items and for hospital drugs, and name the overall arrangement.

[CH3] For each of the three complaints, identify the logistics concept involved and suggest an improvement.

[CH1] Explain how fixing these problems would strengthen Dilmun's supply chain value proposition, as the CEO requests.