LOG Ch. 5 – Flashcards
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A metric and a measure are the same
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false
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A metric is complex to define, usually involves a calculation or a combination of measurements, and is often in the form of a ratio.
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true
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A metric could drive inappropriate behavior
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true
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Scorecards and key performance indicators (KPIs) are the same thing
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true
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Evaluating current or potential supply chain performance metrics is not important to a sound logistics program.
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false
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The focus on performance measurement is a recent event in industry
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false
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Customers and suppliers should be included in the development of metrics
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true
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Managers should resist sub-optimization of their particular function unless it benefits the organization as a whole
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true
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Four major categories that provide a useful way to examine logistics and supply chain performance are: time, quality, cost, and inventory.
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false
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Another metric classification scheme that has been receiving increased attention is that developed by the Supply Chain Council and contained in the Supply Chain Operations and Reference (SCOR) model.
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true
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order cycle time (OCT) is another very important logistics service metric.OCTinfluencesproduct availability, customer inventories, and seller's cash flow and profit
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true
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Supply chain management involves the control of raw material, in-process, and finished goods inventories.
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true
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The purpose of this chapter is to
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all of these answers
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An index
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combines two or more metrics into a single indicator
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Scorecard and key performance indicators (KPIs) refer to
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metrics to manage logistics operations
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The current logistics management approach is supported by which performance measurement concepts?
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least total cost
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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
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cost center
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An "executive dashboard" is
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a small number (usually less than five) of KPIs
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here are four major categories that provide a useful way for examining logistics and supply chain performance: They are: time, ______, cost, and supporting metrics.
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quality
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In the SCOR Model there are five majorcategoriesofmetricsthatneedtobeusedtomeasurethe performance of Process D1: reliability, ___________, agility, costs, and asset management
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responsiveness
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The decision to alter the supply chain process is essentially ___________issue
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an optimization
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What is the best financial metric to show the profit an organization generates in relationship to assets utilized?
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ROA
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Channel structure management includes decisions regarding the use of outsourcing, channel inventories, ____________, and channel structure
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information systems
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Effective order management can have an impact on
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all of these answers
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Which of the following is NOT an element of Order Management?
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optimizing mode mix
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Which of the following is NOT a supply chain decision area regarding ROA
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Information Management
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Gross margin equals
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sales minus COGS
