Exam 1 Version C1. Which value represents the total cost of this product from sourcing to sale A 33600 (Direct COGS 20000 + Gross contribution 7000 + Distribution costs 4600 + other customer related costs 2000)2. According to the Pareto or 80/20 rule shown above, B the top 20% of products and customers by sales or profitability are considered the A category and should receive the highest levels of customer service3. Concept of customer retention and lifetime value customer B understanding the value of keeping existing customers happy and making them loyal customers4. Total cost of inventory includes which of the following E. all above- capital costs, service costs, storage space costs, inventory risk costs5. Purpose of dividing products and customers into 3 categories based on profitability B to enable him to serve his best customers at a higher level and promote his best products6. A deficiency of traditional supply chain performance measurements D all above- bias toward heavy use of cost metrics, ignores customer perceptions of value received, focus on internal definitions of customer service7. Companies lose money on a significant percentage of active customers because They cannot identify the actual costs of selling to individual customers8. This metric focuses on total performance of a firms supply chain rather than on the performance of one function C cash to cash 9. Total cost mgmt. D identifies and minimize total supply chain costs rather than the costs of individual activities10. Ted starts to see some patterns, trends, and variation in customer service expectations, he should A develop a set of service criteria that is meaningful to key customers11. Maintenance, disposal, returns mgmt., and training when calculating the true cost of a product/service, you are employing the concept of A total cost of ownership12. Supply chain mgmt. role is to B satisfy demand by putting the product in customers hands at right time, right place, right quantity, and right price13. College freshman taking first time diving class and high end pro diver come in to store. In order to deliver the most value to each of these customers D focus on creating supply chains that deliver the specific form time and place utility that each customer segment is looking for, at a price that each segment is willing to pay14. As time horizon for planning supply chain activities ____, the accuracy of the planning ____ A is pulled closer to actual time (shortens), improves15. Using traditional accounting tech, cost to serve that would report to financial community E 70,000 (20% of total sales volume)16. Using activity based costs, what is more accurate cost to serve measure D 85,000 (25% of take orders + 30% of fill orders + 10% of collections)17. Internally generated customer service and quality metrics accurately reflect the customerstrue perspective: Do you agree? D disagree: customer servicer metrics should be jointly defined by the supplier and thecustomer18. In todays competitive business environment, the most successful firms focus mainly on improving customer satisfaction by D passing on the lowest possible price to all customers19. If ted realized he always lost money when selling to one segment of his current customer base, what is the best thing he could do regarding those customers in the future A either provide lower levels of service to reduce their cost to serve, or raise the price at which he sells them20. To this day, Stank continues to buy from LL bean. This represents a use of supply chain service to secure B lifetime value of customer21. Given pareto chart, how many of teds WDS customers cost ted more money to serve thanthey generate in sales 14% (subtract end of line from the point where it starts to decline, 100-68=14)22. Traditional cost accounting procedures allocate costs to customers based upon A the percent of total sales represented by each customer23. The time that it takes to convert a payment for raw materials into collection of revenue for the finished goods into which those raw materials were built is known as D cash to cash24. Companies located in the commodity market quadrant (C) should try to do any of the following except stay the same25. Which economic utility is not the main reason why students buy textbooks on amazon C form26. The strategic profit model is discussed in class demonstrates the following principle D small improvements in supply chain activities can yield large improvements in ROA27. Interviewing at WPC, he tells you that logistics and SCM mean the same thing. This indicates A WPC probably does not have a clear conception of SCM, because SCM is about systematic integration across multiple functions including purchasing, manufacturing, and logistics28. This is NOT a way that SCM impacts ROI C increasing ads spend to increase demand29. Of 1000 deliveries from P&G to Wal-Mart, 600 fulfilled all 12 requirements of perfect order, 200 fulfilled 11 out of 12, 50 fulfilled 10 out of 12, and 150 fulfilled 9 out of 12. What was P&G’s perfect order score E 60% (600/1000= 60%; only consider perfect order!!)30. What is the major advantage of dells ordering and payment policies E negative cash to cash cycle31. What are two components that will soon need to be added to the total supply chain cost equation due to changing political and corporate environments D sustainability cost and risk mgmt. cost32. Walk in to ted shop, order custom diving mask, and expect delivery in 10 days. Two weeks later you call ted and ask where your mask is. Turns out order was shipped in 9 days but to wrong customer with same name in Nashville. What kind of value did ted fail to provide D place33. The strategic profit model can be used to illustrate the impact of logistics and supply chain mgmt. on ROA by A illustrating how supply chain activities impact the components of net profit margin and asset turnover that lead to ROA ratio34. Two red flags that signal a mismatch between supply and demand. One of those red flags is C the company uses performance measure that focus on the reduction of per unit cost and cost variance within each separate activity area in the supply chain35. Establishing a segmented customer service policy involves all of the following except B establishing a standard customer service policy for all customers36. To increase the volume of sales for a product,
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