Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Gross margin equals

Accepted Answer

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

Question 4

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.

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

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

Accepted Answer

First, develop a metrics program that is...

Question 7

Effective order management can have an impact on

Accepted Answer

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

Question 8

Scorecard and key performance indicators (KPIs)  refer to

Accepted Answer

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

Question 9

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.

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

Discuss the Supply Chain Financial Impact on an organization.

Accepted Answer

A major financial objective for any orga...

Question 12

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

Accepted Answer

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

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The purpose of this chapter is to

Accepted Answer

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 15

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

Accepted Answer

Logistics and supply chain managers find...

Question 16

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

Accepted Answer

The order-to-cash cycle includes all of ...

Question 17

An "executive dashboard" is

Accepted Answer

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 18

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

A) True 
 B)False

Question 19

The decision to alter the supply chain process is essentially ___________issue.

Accepted Answer

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

Question 20

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

Accepted Answer

If the cost of a seller's logistics serv...

Exam 5: Supply Chain Performance Measurement and Financial Analysis

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

Correct AnswerverifiedShow Answer

Gross margin equals

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFirst, develop a metrics program that is...View AnswerShow Answer

Effective order management can have an impact on

Correct AnswerverifiedD

Scorecard and key performance indicators (KPIs) refer to

Correct AnswerverifiedB

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Discuss the Supply Chain Financial Impact on an organization.

Correct AnswerverifiedA major financial objective for any orga...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The purpose of this chapter is to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedLogistics and supply chain managers find...View AnswerShow Answer

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

Correct AnswerverifiedThe order-to-cash cycle includes all of ...View AnswerShow Answer

An "executive dashboard" is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The decision to alter the supply chain process is essentially ___________issue.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedIf the cost of a seller's logistics serv...View AnswerShow Answer

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First, develop a metrics program that is...
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B

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A major financial objective for any orga...
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Logistics and supply chain managers find...
View Answer

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The order-to-cash cycle includes all of ...
View Answer

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If the cost of a seller's logistics serv...
View Answer