(d) Precedence does not matter
7. In making a trade-off between customer service and costs, the optimal decision
is arrived at by:
(a) Enhancing customer service and reducing costs
(b) Reducing customer service and reducing costs
(c) Enhancing customer service and increasing costs
(d) None of the above
CII Institute of Logistics
PGDSCM/DSCM/ADSCM & CERTIFICATE PROGRAMS
Semester-end Examinations- December 2011
SUPPLY CHAIN METRICS
Time: 3 hours
Marks: 100
Part A
Answer all questions
(10 x 1 = 10 Marks)
1. The primary purpose of any vendor performance system is to:
(a) Evaluate their product quality over time
(b) Decide on vendor selection
(c) Evaluate vendor performance
(d) Assess if meeting all buying requirements
2. The ABC analytical tool as applied to inventory management is best aligned to:
(a) Activity-Based Costing
(b) Analytical –Based Costing
(c) Alpha-numeric Based Classification
(d) Pareto’s Analysis
3. The SCOR Model is characterized by the following distinct management
processes:
(a) Plan, Select, Make, Deliver, and Return
(b) Plan, Source, Make, Deliver and Return
(c) Process, Select, Manufacture, Deliver and Recycle
(d) Process, Source, Make, Destroy and Return
4. In the BSC model, each of the four perspectives is to be examined in relation to:
(a) Objectives, Methods. Tools and Initiatives
(b) Objectives, Measures, Targets and Introspection
(c) Objectives, Methods, Targets and Inspection
(d) Objectives, Measures, Targets and Initiatives
5. The Analytical Hierarchy Process decision-making technique links the following
tools:
(a) SCOR model and BSC model
(b) BSC model and Activity-Based Costing
(c) SCOR model and Mission-Objective -Strategy
(d) Mission-Objective- Strategy and Target-based costing
6. While doing Customer Service Analysis for considering making improvements:
(a) Performance- Importance matrix precedes Cost-Time matrix
(b) Cost- Performance matrix precedes Time- Importance matrix
(c) Cost-Time matrix precedes Performance – Importance matrix
8. In the choice of a suitable performance measure, what is most important is that
it
(a) It should be accurate
(b) It should be easy to measure
(c) Its results should be reproducible
(d) Its results should reflect true performance
9. A firm’s innovation success over a given period is best judged by:
(a) Number of new products developed during that period
(b) Contribution of new products to its sales over the same period
(c) Contribution of new products to its profits over the same period.
(d) None of the above
10. Which of these statements represents the best possible situation?
(a) High inventory level and high inventory turnover.
(b) Low inventory level and high inventory turnover.
(c) High inventory level and low inventory turnover.
(d) Low inventory level and low inventory turnover.
Part B
Answer any four
(4x15= 60 marks)
1.
Every organization swears by customer service to satisfy their needs and
even exceed their expectations. But more often than not, they do not
succeed. Why do you think this happens? Choose any specific industry or
product group as an example, and explain how such an organization can
establish suitable and focused metrics on customer satisfaction.
2.
Few organizations know the true length of their end-to end supply
pipeline. One useful overall measure is the cash-to-cash cycle time. What
is its significance considering the various elements of a supply chain?
How does tracking of these individual elements help to monitor and
improve their performance?
3.
Quality is a vital performance measure which has several dimensions and
with internal and external implications. Why do we say so? Elaborate
your answer using the example of a high-class multi-speciality hospital
identifying various key and suitable metrics.
4.
A large nationally dispersed firm wishes to select a new warehousing
services provider amongst several contenders. Prepare a detailed list of
background information and performance indicators/metrics that you
would seek from all prospective service providers to assist in your vendor
assessment and selection.
5.
Modern organizations realize the need to integrate its micro-level
performance measures with macro-level corporate goals and strategies.
How does such a company management bridge this gap to make this
understood at different employee levels?
6.
For each of the following categories develop at least 6 different suitable
performance metrics which will help their managements to evaluate their
overall performance.
(a) Fast food restaurant
(b) Textile manufacturing company
(c) Dairy farm
(d) Computer sales and service agency
more than 300 shoe designs to market each year. However, this punishing rate
of innovation brings with its high and rising levels of inventory if sales
forecasts are not achieved.
In the USA and Europe, primary distribution of Nike products is increasingly
outsourced to specialist third parties (also known as 3PL), who are linked to
their global sales and customer support systems. In Asia and other emerging
markets, their distribution is more carefully managed thro their own
distribution set-ups or thro tie-ups with selective local sales distribution
companies. These links allow all their channel partners to prioritize shipments
and manage order fulfilment cost effectively, while ensuring that product
availability information is readily accessible to all decision makers throughout
the Nike virtual enterprise.
QUESTIONS:
1.
2.
Part C
3.
Case study
(30 marks)
Please read the case and answer the questions given below:
NIKE- THE CHALLENGE OF GLOBAL BUSINESS
In little more than the time needed to raise just one generation of rebellious
youth, US -based sports company Nike Inc. reinvented the concept of shoes. It
transformed the cheapest of mass-market footwear into high-tech, highperformance products.
However, as in any global organization, management of its supply chain is
crucial for success. From its HQ in Beaverton, Oregon, Nike operates a global
spanning virtual enterprise. At its core are a set of business processes, ,
designed to combine its state- of- the- art R&D capabilities with a ruthlessly
low-cost manufacturing strategy. Nike’s” Air Max Penny” basketball shoe, for
example, is designed in Oregon and Tennessee in the USA; jointly developed
by technicians in USA, Taiwan and South Korea. The shoes themselves are
made in South Korea (men’s sizes) and Indonesia (boy’s sizes) from 52
components sourced from Japan, South Korea, Taiwan, Indonesia and the
USA. The complexity of the product itself means that each pair of shoes passes
through more than 120 pairs of hands during the manufacturing process. It
also means that there is a danger of extended lead times.
Tying the whole Nike enterprise together is the vast i9nformation systems that
coordinate each step of these far-flung activities and a logistics infrastructure
capable of bringing the components together precisely at the right time, as
well as managing the supply of finished goods into the global market place.
Significantly, both are flexible enough to cope with constant product,
materials and process changes and innovations, allowing the company to bring
What do you think are the critical success factors for the performance of
the Nike supply chain? ( 5 marks)
Identify and elaborate on the possible and suitable supply chain
performance measures that Nike could be using to monitor its far-flung
supply chain operations?( 10 marks)
Design and map an appropriate supply channel network for the Nike
supply chain focusing on the likely flows of all materials, required
information and necessary fund flows throughout the organization.( 15
marks)
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