Supply Chain Exam #1

What factors influenced the evolution of operations management?

Technology, globalization, competition, customer expectations, cost pressure

How did these factors impact operations management?

More focus on efficiency, quality, speed, flexibility, and coordination

What is the goal of operations and supply chain management?

Deliver the right product, at the right time, at the lowest cost, with high quality

What is the SCOR model?

A framework for analyzing and improving supply chain performance

How is the SCOR model used?

To measure, compare, and improve supply chains

What are the parts of the SCOR model?

Plan, Source, Make, Deliver, Return

What is an open systems view?

Organizations interact with suppliers, customers, and the environment

Why must design and control decisions be aligned?

Misalignment causes inefficiency and poor performance

What are design decisions?

Long-term decisions about how operations are set up

Why are design decisions important?

They affect cost, quality, and flexibility for years

What is product design?

Deciding product features and functionality

What is process design?

Determining how a product is made

What is facility layout?

Arrangement of equipment and workspaces

What is facility location?

Choosing where operations are located

What are control decisions?

Short-term decisions that manage daily operations

What is forecasting?

Predicting customer demand

What is inventory control?

Managing how much inventory to keep

What is scheduling?

Timing and sequencing of work

What is quality control?

Ensuring products meet standards

What is supply chain management?

Coordinating activities from raw materials to the customer

What is a focal firm?

The main company in a supply chain

What are tiers in a supply chain?

Levels of suppliers or customers

What does upstream mean?

Toward suppliers

What does downstream mean?

Toward customers

What are flows in a supply chain?

Movement of products, information, and money

What is the bullwhip effect?

Small demand changes cause large supply chain disruptions

What is a value chain?

Activities that add value to a product or service

Why is supply chain management important today?

Globalization, e-commerce, cost pressure, customer speed expectations

According to Peter Drucker, what is the purpose of a business?

To create a customer

Who puts money into the supply chain?

The customer

How do customers use the internet to get better deals?

Compare prices, read reviews, find alternatives

What are the four economic utilities?

Form, Time, Place, Possession

What are the dimensions of value?

Cost, quality, speed, flexibility, service

How can companies reduce costs?

Efficiency, automation, outsourcing, better forecasting

How do customers assess quality?

Performance, reliability, durability, consistency

What delivery factors matter most to customers?

Speed, reliability, on-time delivery

What creates an agile, responsive culture?

Fast decisions, empowered employees, flexible processes

What is product innovation?

Creating new or improved products

What is process innovation?

Improving how products are made or delivered

How do companies weight value dimensions?

Based on customer priorities and strategy

What is an order winner?

The reason customers choose a company

What is an order qualifier?

Minimum requirements to compete

What is an order loser?

Failures that cause customers to leave

What are the two types of touchpoints?

Physical and digital

What is resource orchestration?

Coordinating resources to create value

What are value gaps?

Differences between expectations and performance

What is customer delight?

Exceeding customer expectations

What is a weakness of customer satisfaction strategies?

Satisfaction does not guarantee loyalty

What is the goal of a customer success strategy?

Long-term customer value and retention

Should all customers be treated equally?

No, some are more valuable than others

What is customer segmentation?

Grouping customers by value or behavior

What is ABC classification?

Ranking customers by importance (A highest, C lowest)

Why use ABC classification?

To focus resources on high-value customers

Why is customer relationship management important?

Improves loyalty, service, and lifetime value

What are the main parts of CRM?

Data collection, analytics, customer interaction tools

How does measurement help decision-making?

Shows what is working and what needs improvement

What are the four balanced scorecard perspectives?

Financial, Customer, Internal Process, Learning & Growth

What are the benefits of a balanced scorecard?

Aligns strategy with performance measures

What is benchmarking?

Comparing performance to best practices

What are the types of benchmarking?

Internal, competitive, functional

What is the benchmarking process?

Measure → compare → improve

What are benchmarking pitfalls?

Copying without understanding, wrong comparisons

What is productivity?

Output divided by input

What is total cost of ownership?

All costs over a product’s life

What is supply chain orientation?

Treating the supply chain as a strategic asset

Why is supply chain orientation considered new?

Companies used to operate in silos

How do non-supply functions support supply chain activities?

Finance, IT, and marketing enable coordination

How do supplier relationships vary?

From transactional to strategic partnerships

What are key supply chain trade-offs?

Cost vs speed, efficiency vs flexibility

What is a functional product?

Stable demand, low variety

What is an innovative product?

Unpredictable demand, high variety

What are the two key uncertainties?

Demand uncertainty and supply uncertainty

What are the four supply chain strategies?

Efficient, responsive, risk-hedging, agile

What is postponement?

Delaying final customization of a product

What is modular design?

Using standard parts to create variety

How does marketing support mass customization?

Understand customer needs

How does R&D support mass customization?

Design modular products

How do manufacturing and distribution support mass customization?

Flexible production and delivery

How does finance support mass customization?

Manage costs and investments