Deck 5: Supply Chain Performance Measurement and Financial Analysis

Question 1

Evaluating current or potential supply chain metrics is not important to a sound metrics program.

Answer 1

False

Question 2

A metric requires

A) definition.
B) competitive analysis.
C) trade association oversight.
D) measures.

Answer 2

A

Question 3

Customers and suppliers should be included in the development of metrics.

Answer 3

True

Question 4

Another metric classification scheme that has been receiving increased attention is that developed by the Supply Chain Council and contained in the Supply Chain Operations and Reference (SCOR)model as it dispenses with conventional metrics for a process named D1.

Question 5

Four major categories that provide supply chain performance are: time,quality,cost,and inventory.

Question 6

Managers should resist sub-optimization of their particular function unless it benefits the corporation as a whole.

Question 7

There are five major categories of metrics that need to be used to measure the performance of Process D1: reliability,____,flexibility,cost,and assets.

A) ROA
B) responsiveness
C) supply chains
D) cash to cash cycle

Question 8

Another driving influence for supply chain reexamination has been the desire of organizations to change their supply chain focus from a ____ to an "investment" center.

A) warehouse system
B) logistics-oriented system
C) cost center
D) value neutral

Question 9

The purpose of this chapter is to

A) discuss metrics.
B) Examine developing metrics.
C) classify metrics.
D) all of these answers

Question 10

An "executive dashboard" is

A) a small number (usually less than five)of KPIs.
B) used by senior management to track profits.
C) a metric used by the Board of Directors.
D) a trend that has only recently developed.

Question 11

Scorecards and key performance indicators (KPIs)are the same thing.

Question 12

The focus on performance measurement is a recent event in industry.

Question 13

A metric and a measurement are the same.

Question 14

Order cycle time (OCT)is another very important logistics service metric.OCT influences product availability,customer inventories,and seller's cash flow and profit.

Question 15

The logistics management approach was supported by

A) metrics.
B) total cost.
C) least cost.
D) the D1 concept developed by the Supply Chain Council.

Question 16

There are four major categories with examples that provide a useful way for examining logistics and supply chain performance: They are time,____,cost,and supporting metrics.

A) delivery
B) KPIs
C) competition
D) quality

Question 17

A metric could drive inappropriate behavior.

Question 18

Scorecard and key performance indicators (KPIs)refer to

A) sporting events.
B) metrics.
C) management's evaluation of supply chain staff.
D) measuring output.

Question 19

Supply chain management involves the control of raw material,in-process,and finished goods inventories and cash flow.

Question 20

A metric requires definition,involves a calculation,or is a combination of measurements,and is often a ratio.

Question 21

Discuss the metric classification scheme that has been developed by the Supply Chain Council and defined in the Supply Chain Operations and Reference (SCOR)model.

Question 22

What is the best financial metric?

A) ROA
B) Profit
C) Sales
D) Stock price

Question 23

Discuss the Supply Chain Financial Impact on the firm.

Question 24

What is the "Order to Cash" cycle?

Question 25

Effective order management can have an impact on

A) reducing supply chain costs.
B) increasing revenues.
C) improving ROA.
D) all of these answers

Question 26

Channel structure management includes decisions regarding the use of outsourcing,channel inventories,____,and channel structure.

A) cash to cash management
B) information systems
C) order cycle
D) KPIs

Question 27

There are ten characteristics of supply chain metrics.Name at least five,and pick any two for further discussion.

Question 28

The decision to alter the supply chain process is essentially ____ issue.

A) a management
B) an optimization
C) a supply chain
D) a customer satisfaction

Question 29

There are seven factors in developing supply chain metrics.Name them,and select any two to discuss in more detail.

Question 30

There are four performance categories.Name them,and select one to discuss in more detail.

Question 31

Discuss the differences between metrics and measure,and why this is important.

Question 32

Gross margin equals

A) sales minus COGS
B) Sales + taxes minus COGS
C) COGS - Sales
D) COGS - taxes

Question 33

Which of the following is NOT an element of Order Management?

A) reducing stockouts
B) improving information
C) optimizing mode mix
D) optimizing order fill rate

Question 34

Discuss how a seller's cost influences a customer's profit and on how a seller's service impacts a customer's revenue.

Question 35

Which of the following is NOT a supply chain decision area regarding ROA improvement?

A) Channel Structure Management
B) Inventory Management
C) Order Management
D) Information Management

Question 36

Discuss the revenue cost connection and include the formula.