Question 1

Performance benchmarking measures how an organization achieves results.

Accepted Answer

The answer of Performance benchmarking measures how an organization achieves...

Question 2

Industry benchmarking allows an individual company to compare itself to the average and range of performance data for all respondents in the aggregate.

Accepted Answer

Industry benchmarking involves comparing a company's performance data to the average and range of performance data for all respondents in the industry.

Question 3

Efficiency metrics,which emphasize price,may lead to behavior that drives up total cost of ownership.

Accepted Answer

Efficiency metrics that focus solely on price may encourage behaviors such as using low-quality materials, skipping necessary maintenance or cutting corners on safety measures to reduce immediate costs, leading to increased costs in the long run. This is often referred to as the "paradox of efficiency." Therefore, while price is an important factor to consider, it should not be the sole metric for measuring efficiency.

Question 4

In most organizations,current supply performance metrics and evaluation methods are highly effective at validating supply's results and getting supply recognition as a major contributor to organizational success.

Accepted Answer

While supply performance metrics and evaluation methods have improved, they are not always effective at fully capturing and validating supply's contributions to organizational success. There is still room for improvement in recognizing supply's impact on the business.

Question 5

Supplier performance management systems should be designed to capture and communicate supplier performance data to improve future performance and future decisions.

Accepted Answer

Supplier performance management systems are designed to help organizations gather and analyze data to better understand supplier performance, identify areas for improvement, and make informed decisions about future supplier relationships. By capturing and communicating supplier performance data, organizations can work with their suppliers to develop strategies for improving performance and meeting shared goals. Therefore, it is true that supplier performance management systems should be designed to capture and communicate supplier performance data to improve future performance and future decisions.

Question 6

The cost of maintenance supplies are included in the capital budget.

Accepted Answer

The cost of maintenance supplies are typically included in the operating budget, which covers day-to-day expenses. The capital budget is focused on long-term investments in assets such as buildings, equipment, and infrastructure.

Question 7

The supply planning process starts with information derived from the annual sales forecast,production/service delivery forecasts,and general economic forecast.

Accepted Answer

This statement is true. The supply planning process begins with these forecasts and economic data to determine the necessary raw materials, production capacity, and staffing needed to meet demand.

Question 8

Triple bottom line reporting refers to an organization's social,environmental,and political performance.

Accepted Answer

Triple bottom line reporting refers to an organization's social, environmental, and financial (economic) performance, not political.

Question 9

Internal validation of supply's financial contribution is easy to achieve,but unlikely to happen in most organizations because the cost of assessment outweighs the benefits.

Accepted Answer

Internal validation of a supply's financial contribution can be challenging due to the complexity of supply chains and the difficulty in isolating the financial impact of supply-related decisions. It's not necessarily about the cost of assessment outweighing the benefits, but more about the complexity and interdependencies involved.

Question 10

Cost management categories that might be measured include: (1)cost savings, (2)cost reductions, (3)cost avoidance,and (4)process cost savings.

Accepted Answer

These are all common categories for cost management that organizations can use to measure their success in controlling expenses.

Quiz 17: Supply Function Evaluation and Trends