Exam 1 Review(Above) The curves represent the cost Benefit of Logistics Customer Service.To maximize the profit, the service level should be set at65%Which of the following is NOT a way that supply chain management impacts ROA/ROI?Increasing advertising spend to increase demandSince the ultimate values of a firm may be represented by the net present value of its future cash flow (Warren Buffet), firms should seek to implement logistics and supply chain practices that:All of the aboveIn today’s competitive business environment, the most successful firms maintain satisfaction by:Improving how they deliver value to different customer segmentsTwo kinds of customers walk into Grizzly Fly-Fishing Shop: college freshmen taking a first-time class, and high-end professional executives with fishing experience. In order to deliver the most value to each of these customers, John should: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 payAmong the following examples, which refers mostly to the place utility that supply chain provides?Australian grocery store provides food in remote towns(Use Image) Companies located in the commodity market quadrant (C) should try to do all of the following EXCEPT:Stay the sameIn the past, Ford Motor Company relied on vertical integration and tight control over from the upstream part suppliers to the downstream customers. Now they have changed outsourced components to suppliers, as most of the automobile manufacturers do. What does this indicate?Firms should focus more on their core competenciesIn the first class for Chapter 1, we had a video describing how a woman manages the supply chain for hershoe store iin St. Louis. Which of the following was NOT a point in the video?As long as businesses have inexpensive products on the shelf, they can please customersChuck from the Sales Department wants to increase the volume of sales for a product. To do this, he wants to service a client in a new market that is three times as far from your current distribution center as current markets. Although Chuck might be happy because his sales numbers go up, total overall profitmight not improve because:Transportation and other distribution costs would likely increaseOne of the WSJ articles we read mentions a possible slave and child labor lawsuit against Nestle. What’s the supply chain implication of such legal action?Visibility and transparency are keys to successful supply chain managementSupply Chain Management:Is the systematic coordination of purchasing, manufacturing management, and distribution upstream with suppliers and downstream to customersIn order to minimize the leadtime gap, firms use the concept of Postponement, which is described as:The delay of the final steps of manufacturing to more closely match demandGiven the Pareto chart above, approximately how many of the customers are generating profit from sales?87%A firm decides to outsource its warehousing to a third party logistics provider. What financial componentdoes this decision have the biggest impact on?Fixed asset costThe Strategic Profit Model (DuPont Model) can be used to illustrate the impact of logistics and supply chain management on ROA (Return on Assets) by:Illustrating how supply chain activities impact the components of the income statement and balance sheet that lead to the Return on Assets ratio When a company in the electronics industry benchmarks the online ordering processes used at Amazon, they are using:Best-In-Class benchmarkingWhat is the key of the video about Starbucks’ supply chain?Supply Chain Management creates value beyond cost reductionIn a conventional organization, the only way to close the leadtime gap is to attempt to forecast and carry just-in-case inventory to protect against uncertainty. What is true about the relationship between this uncertainty in forecasting and the related inventory?Uncertainty makes this forecasting very difficult and all forecasting errors result in some kinf of inventory problem(Above) Grizzly Fly-Fishing Shop believes that H. S. Sponge is a key profitable customer. Using the traditional accounting technique, that is the cost-to-serve for H. S. Sponge that the shop’s accounting department would report to the financial community?$50,000(Above) What is a more accurate cost-to-serve measure using activity based costs?$80,000Fill in the blanks with the appropriate combination of words:As the time horizon for planning supply chain activities _______, the accuracy of the planning _______.Is pulled closer to actual time (shortens), improvesCompanies lose money on a significant percentage of active customers because:They cannot identify the actual costs of selling to individual customersIn class, Dr. Bell gave an example of Lowes and Whirlpool coordinating to match suppliers for appliances. Which of the following implications is not relevant for this example?Vendors have the most power over retailersIf Grizzly FF Shop divides their products and customers into 3 categories based on profitability:“A” – these are the top 20% of products and customers“B” – these are the next 50% of products and customers“C” – these are the bottom 30% of products and customersWhat is the purpose of this activity?To enable John to serve his best customers at a higher level and promote his best productsAccording to the “Pareto” or 80/20 rule, shown above:The top 20% of products and customers by sales or profitability are considered the ***** category, and should be given the highest levels of customer serviceEstablishing a segmented customer service policy involves all of the following EXCEPT:Establishing a standard customer service policy for all customersThe Lead Time Gap in an expression of the difference between the amount of time it takes for the supplychain to deliver the product/service and:The amount of time the customer is willing to waitAccording to our textbook author, in order to create supply chain responsiveness to customer demands afirm should focus on what two primary capabilities?Visibility and VelocityIt is said today that marketing is responsible for identifying needs and creating demand, while supply chain management’s role is to:Satisfy demand by putting the right product in the customers’ hands at the right time, right place, rightquantity, and right priceBased on the video of FedEx, which of the
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