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

Accepted Answer

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

Accepted Answer

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.

Accepted Answer

A metric is typically not a simple measurement, but rather involves some sort of calculation or combination of measurements. It is also often expressed as a ratio or percentage.

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.

Accepted Answer

The statement is correct, the Supply Chain Council has developed the SCOR model as a classification scheme for supply chain metrics.

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.

Accepted Answer

Order cycle time (OCT) is an important logistics service metric as it affects various aspects such as product availability, customer inventories, seller's cash flow, and profit.

Question 6

A metric could drive inappropriate behavior.

Accepted Answer

Metrics can sometimes incentivize people to focus solely on achieving the metric, even if it means neglecting other important factors or engaging in unethical behavior. For example, if a sales team is solely measured on the number of sales generated, they may engage in high-pressure tactics or make false promises to customers to meet their targets. Therefore, it is important to carefully consider how metrics are designed and used to avoid unintended consequences.

Question 7

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

Accepted Answer

Including customers and suppliers in the development of metrics ensures that the metrics are relevant and meaningful to both parties, and can help to improve the overall quality and effectiveness of the metric system.

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.

Accepted Answer

The answer of The current logistics management approach is supported...

Question 9

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

Accepted Answer

Supply chain management includes managing inventory levels of raw materials, in-process goods, and finished goods to ensure optimal efficiency and effectiveness of the supply chain.

Question 10

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

Accepted Answer

The answer of Four major categories that provide a useful...

Question 11

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

Accepted Answer

The answer of Scorecards and key performance indicators (KPIs) are...

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

Accepted Answer

This chapter covers all three topics of discussing how supply chain metrics are developed, developing quantitative tools to show how metrics can be linked to financial performance, and offering methods for classifying supply chain metrics. Therefore, the correct answer is D - all of these answers.

Question 13

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

Accepted Answer

Evaluating current or potential supply chain performance metrics is important to a sound logistics program as it helps in identifying areas of improvement and enhancing efficiency in the supply chain.

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

Accepted Answer

Organizations are shifting their focus from viewing the supply chain as a cost center to viewing it as an "investment" center. This means that they are willing to invest in their supply chain to make it a source of competitive advantage rather than viewing it as solely a source of cost.

Question 15

A metric and a measure are the same.

Accepted Answer

A metric is a standard of measurement while a measure is the specific value that is obtained through the use of a metric. In other words, a metric is the tool used to obtain a measure.

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

Accepted Answer

The five major categories of metrics that need to be used to measure the performance of Process D1 are reliability, responsiveness, agility, costs, and asset management. While ROA is a useful metric for measuring asset management, it is not one of the five major categories. Supply chains are relevant to the overall SCOR Model, but not specifically to Process D1. The cash-to-cash cycle is a metric for measuring financial performance, but not one of the five major categories for Process D1. On the other hand, responsiveness is a crucial metric for measuring the speed of a process, and is directly relevant to the performance of Process D1.

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.

Accepted Answer

Scorecard and key performance indicators (KPIs) are metrics used to manage logistics operations by measuring output and evaluating the success of logistics-related activities. They are not specifically related to sporting events or evaluating supply chain staff.

Question 18

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

Accepted Answer

Performance measurement has been a fundamental aspect of industry for many years, and it has gained increasing importance in recent times due to its potential to improve organizational efficiency and effectiveness.

Question 19

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

Accepted Answer

Sub-optimization means optimizing a function at the cost of other functions. Managers should avoid this unless it provides benefits to the organization as a whole, as the ultimate goal of any organization is to achieve overall success and not just subjective success of one function.

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.

Accepted Answer

An "executive dashboard" typically displays a small number of key performance indicators (KPIs) that are important for senior management to track in order to make strategic decisions. The focus is on high-level insights and trends, rather than detailed metrics.

Quiz 5: Supply Chain Performance Measurement and Financial Analysis

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

An index

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

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.

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

A metric could drive inappropriate behavior.

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

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

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

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

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

The purpose of this chapter is to

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

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 metric and a measure are the same.

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.

Scorecard and key performance indicators (KPIs) refer to

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

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

An "executive dashboard" is