Deck 5: Supply Chain Performance Measurement and Financial Analysis

Question 1

There are four major categories 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

Answer 1

D

Question 2

An index

A) combines two or more metrics into a single indicator.
B) is complex to define, usually involves a calculation and is often in the form of a ratio.
C) is easily defined with no calculations and with simple dimensions
D) is any quantitative output of an activity or process

Answer 2

A

Question 3

A metric is complex to define, usually involves a calculation or a combination of measurements, and is often in the form of a ratio.

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.

Question 5

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 6

A metric could drive inappropriate behavior.

Question 7

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

Question 8

The current logistics management approach is supported by which performance measurement concepts?

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

Question 9

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

Question 10

Four major categories that provide a useful way to examine logistics and supply chain performance are: time, quality, cost, and inventory.

Question 11

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

Question 12

The purpose of this chapter is to

A) discuss how supply chain metrics are developed.
B) develop quantitative tools to show how metrics can be linked to financial performance.
C) offer methods for classifying supply chain metrics.
D) all of these answers

Question 13

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

Question 14

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 15

A metric and a measure are the same.

Question 16

In the SCOR Model there are five major categories of metrics that need to be used to measure the performance of Process D1: reliability, ___________, agility, costs, and asset management.

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

Question 17

Scorecard and key performance indicators (KPIs) refer to

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

Question 18

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

Question 19

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

Question 20

An "executive dashboard" is

A) a small number (usually less than five) of KPIs.
B) used by senior management to track profits.
C) metrics used by an organization's suppliers
D) a trend that has only recently developed.

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 to measure the performance of Process D1: Deliver Stocked Product.

Question 22

What is the best financial metric to show the profit an organization generates in relationship to assets utilized?

A) ROA
B) Profit
C) Return on net worth
D) Stock price

Question 23

There are ten characteristics of a good metric. Name at least five, and pick any two for further discussion.

Question 24

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 25

Gross margin equals

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

Question 26

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 27

Discuss the differences between the terms metric, measure, and index.

Question 28

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

Question 29

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

Question 30

There are four major categories that provide a useful way to classify supply chain performance metrics. Name them, and select one to discuss in more detail.

Question 31

What is the "Order-to-Cash" cycle?

Question 32

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 33

Discuss the Supply Chain Financial Impact on an organization.

Question 34

Discuss the revenue-cost savings connection and include the formula.

Question 35

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

A) reducing stockouts
B) reducing order processing times
C) optimizing mode mix
D) optimizing order fill rate

Question 36

Effective order management can have an impact on

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