Question 1

Total productivity is considered a single-factor productivity measure.

Accepted Answer

Total productivity is a multiple-factor productivity measure as it considers the ratio of total output to multiple inputs such as labor, capital, energy, and materials.

Question 2

Supply chains that are flexible enough to quickly respond to changes in the marketplace are called demand-driven supply networks.

Accepted Answer

This is because demand-driven supply networks prioritize meeting customer demand and are designed to be adaptable and responsive to changes in the market.

Question 3

Supply chain strategies must consider the trade-offs between the cost, quality, sustainability, and service requirements.

Accepted Answer

Trade-offs between cost, quality, sustainability, and service requirements are essential in determining effective supply chain strategies. Business owners and decision-makers must weigh these factors to optimize the supply chain's performance, reduce costs, and increase profitability. Failure to consider these trade-offs could lead to suboptimal supply chain operations and reduce the company's competitiveness.

Question 4

Using cost as a departmental or business unit performance measure can actually result in actions that raise costs for the organization.

Accepted Answer

Focusing solely on cost as a performance measure can incentivize departments or units to cut corners and sacrifice quality, leading to increased costs in the long run. Additionally, departments may hoard resources or engage in other behaviors to keep their costs artificially low, which can harm the overall organization. It's important to consider a variety of performance measures, including quality, efficiency, customer satisfaction, and innovation, to ensure that all aspects of the organization are being properly evaluated and incentivized.

Question 5

Companies can now acquire software that will aid in analyzing the present carbon footprint of their supply chains, which can in turn show how improvements to supply chain might lower their carbon footprint.

Accepted Answer

This statement is true as there are several software solutions available in the market that can help companies analyze their supply chain's carbon footprint and identify opportunities for improvement.

Question 6

A model used for integrating supply chains and measuring partner performance is the SCOR model which separates supply chain operations into four categories: Sourcing, Costs, Operations, and Returns.

Accepted Answer

The SCOR model stands for Supply Chain Operations Reference model, and it categorizes supply chain operations into five processes: Plan, Source, Make, Deliver, and Return, not Sourcing, Costs, Operations, and Returns.

Question 7

In general, Wal-Mart has very little interest in green supply chain management.

Accepted Answer

Wal-Mart has made significant commitments to green supply chain management, including goals to use 100% renewable energy, eliminate waste, and sell sustainable products.

Question 8

Some researchers have indicated that the Balanced Scorecard approach can problematic and costly to implement, and even after implementation may be unsuccessful in achieving the overall objectives.

Accepted Answer

While the Balanced Scorecard approach can be effective in achieving strategic objectives, there are potential issues and costs associated with implementation. Some research suggests that the approach may not always lead to successful outcomes.

Question 9

While profit, revenue, and cost related metrics would seem to be useful in moving a company in the right direction, they are often difficult to tie to the good or poor behaviors of individual functional units or individual organizational processes.

Accepted Answer

This is because profit, revenue, and cost related metrics are affected by a wide range of factors, including market conditions, competition, and external events, making it difficult to isolate the impact of specific functional units or processes.

Question 10

To control and enhance the capabilities of companies across the supply chain, well-designed performance measurement systems must be implemented.

Accepted Answer

Performance measurement systems help companies track their progress, identify areas for improvement, and make data-driven decisions. By implementing such systems across the supply chain, companies can achieve greater efficiency, reduce costs, and improve their overall performance.

Question 11

Supply chain perfect order fulfillment performance measures the average percentage of orders that are filled on or before the requested delivery date.

Accepted Answer

The answer of Supply chain perfect order fulfillment performance measures...

Question 12

The traditional Balanced Scorecard framework consists of four perspectives: financial perspective, human resources perspective, inventory perspective, and the logistics perspective.

Accepted Answer

The traditional Balanced Scorecard framework consists of four perspectives: financial perspective, customer perspective, internal process perspective, and learning and growth perspective. There is no inventory perspective or logistics perspective in the traditional framework.

Question 13

In general, performance measurements systems are identical from company to company.

Accepted Answer

Performance measurement systems vary from company to company depending on their goals, objectives, and strategies.

Question 14

The Balanced Scorecard approach to performance measurement seeks in to improve managerial decision-making by aligning an organization's performance measures with its strategic plan and goals.

Accepted Answer

The statement is true. The Balanced Scorecard approach is designed to promote strategic alignment and better decision-making by linking performance metrics to an organization's mission, vision, and strategic objectives. This approach considers not only financial measures, but also non-financial measures such as customer satisfaction, internal processes, and learning and growth.

Question 15

Web-based balanced scorecard applications are sometimes referred to as dashboards.

Accepted Answer

This is true. Web-based balanced scorecard applications are often designed to display key performance data in a visual format, similar to dashboard gauges on a car.

Question 16

A company has 5 employees that work an 8 hour shift.During those eight hours they make 80 units.The labor productivity would be 10.0.

Accepted Answer

The answer of A company has 5 employees that work...

Question 17

Supply chain cash-to-cash cycle time is a performance measure that provides the average number of days between selling the end product to the customer and receiving full payment for the goods.

Accepted Answer

The supply chain cash-to-cash cycle time is the average number of days between paying for the inputs and receiving payment for the output. It is the time it takes for the organization to generate cash from its investments in inventory and other resources.

Question 18

SCORmark allows Supply Chain Council (SCC) members to benchmark performance against selected peer companies using a benchmarking portal at SCC's website.

Accepted Answer

SCORmark is a benchmarking tool provided by SCC for its members to compare performance with peer companies using a portal on SCC's website.

Question 19

One of the primary steps in developing world-class performance measures is to identify the firm's strategic objectives.

Accepted Answer

Identifying the firm's strategic objectives is a crucial first step in developing world-class performance measures as it ensures that the measures are aligned with the organization's overall goals and vision.

Question 20

There are 4 standardized levels of process detail in the SCOR Model.

Accepted Answer

The answer of There are 4 standardized levels of process...

Quiz 14: Performance Measurement Along the Supply Chain