M&L 4383 Supply Chain Management: Sample

Exam Questions
Sample Short-Answer Questions
1. Name the 8 processes in the GSCF framework. Extra credit if you mention the exact names
of the processes as defined in the textbook
Customer Relationship management
Supplier relationship management
Customer service management
Demand management
Order fulfillment
Manufacturing flow management
Product development and commercialization
Returns management
2. Provide 3 examples of criteria a company might use to segment their customers. Pp.29
Profitability combine with growth potential
Market share goals
Volume
3. Explain the drawbacks of using a full costing approach (based on the
allocation of overhead costs to customers and/or customer
segments) to determine customer profitability.
Many problems encountered by manufacturing companies are
the result of using a full cost approach whereby indirect
costs are allocated to each customer or product.
Many managers use control mechanism that focus on the
wrong targets: direct manufacturing labor or sales volume.
Set up simplistic goals that represent only a small fraction of
total cost or single-minded sales efforts.
Cause the manager to ignore more effective way to compete,
such as product-quality, on-time delivery, short lead times
4. Name three things that managers can do to improve a supply
chains flexibility to respond to unforeseen demand. Pp 103
Work with the manufacturing flow management team to find
ways to introduce postponement into the manufacturing
process, or find way to multi-source.
Work with customer relationship management team to satisfy
customers so that the firm can be most responsive to a small
set of key customers
Work with the order fulfillment team to make changes to the
network, such as reducing lead-times or increasing capacity at
buffers.

5. What is the difference between the customer service management

process and the traditional customer service function?
The customer service management process enables
management to find ways to improve both the internal and
external coordination that needs to take place in order to
deliver on the promise made to customers.
Implementation of the process increases operational flexibility
and facilitates the development of an effective system and
infrastructure so that management can proactively respond to
events before they impact the customer
Interact with other functions.
Have substantial impact on EVA: increased revenue; lower
expenses; reduce inventory levels; improved product
availability.
6. Name and describe 3 types of drivers that can exist in a supply chain relationship. Extra
credit if you mention the exact name of the driver categories as defined in the Partnership
Model or the Collaboration Framework.
Asset/cost efficiencies
Service improvement
Marketing advantage
Profit growth/stability
7. Explain the limitations of using cash-to-cash cycle as a supply chain metric. What approach
would you recommend for measuring supply chain performance?
Cash-to-cash cycle refers the funds available for use in financing the day-to-day activities of a
business. It tells you whether you are operating lean with regard to cash.
It measures the financial performance of the manufacture. However, the internal focus does
not capture how the firm drives value or profitability in the supply chain, which eventually
decreases the value of the entire supply chain.
The use of customer and supplier contribution reports avoids this situation. The combined
analysis reflects whether the costs associated with process improvement increased
profitability through a larger share of the customers business or increased supply chain
competitiveness. By maximizing profitability at each link, supply chain performance migrates
toward managements objectives and maximized performance for the whole.

8. What are the supply chain management process assessment tools? How are they used?
9. What is the goal of the synchronization sub-process within the demand management process?

The output of synchronization will be an execution plan that will balance the needs and costs
of manufacturing, logistics, sales and the suppliers to meet anticipated demand. This
execution plan will provide the basis for the detailed manufacturing and sourcing plan that is
developed within the manufacturing flow management process. (MRP, Distribution
requirement planning)

10. What are the Decision Business Units in industrial purchasing? Why is it important to have
a good understanding of each of these decision units for a successful implementation of the
CRM process? Assume I would give you the figure below.

Sample Essay Questions

11. According to the EVA charts, management of a firm can affect the firms EVA through (1)
increasing sales, (2) reducing cost of goods sold, (3) reducing total expenses, (4) reducing
inventory, (5) reducing other current assets, or (6) reducing fixed assets. For each of these
categories, give an example of how the order fulfillment management process affects the
category and explain how it impacts each.
Supply chain metrics ppt
12. As with all GSCF processes, the demand management process needs to be implemented
cross-functionally and cross-firm. Describe which steps of this process you believe need to
be cross-functional? Describe the role of at least three functions in the process. Describe
where the input of key suppliers or customers might be helpful in implementing the process.
(Assume I will give you the process chart).
Marketing: Competitors initiatives
Sales: Competing programs in Customer space
Logistic: Forecast
13. GSCF defines demand management as the process that balances the customers requirements
with the capabilities of the supply chain. The sub-processes are as follows:

Demand
Managem
ent

1. Determine Demand
Management Goals and
Strategy
2. Determine Forecasting Procedures
3. Plan Information Flow
4. Determine
Synchronization
Procedures
5. Develop Contingency
Management System

1. Collect Data/Information
2. Forecast
3. Synchronize
4. Reduce Variability and
Increase Flexibility
5. Measure Performance

SCOR defines the plan process to include activities related to balancing aggregate
demand and supply to develop a course of action which best meets sourcing, production,
and delivery requirements. The sub-processes are as follows:
Plan

Demand/Supply Planning and Management

Balance resources with requirements and establish/communicate plans for

the whole supply chain, including Return, and the execution processes of
Source, Make, and Deliver.
Management of business rules, supply chain performance, data collection,
inventory, capital assets, transportation, planning configuration, and
regulatory requirements and compliance.
Align the supply chain unit plan with the financial plan.

In some ways, these two processes are similar and in other ways they are quite different.
In class we compared SCOR and GSCF using five criteria: focus, strategic alignment,
breadth of activities, cross-functional integration, and drivers of value generation.

Evaluate these two processes using each of the criteria and explain how, for each
criterion, the differences in the two frameworks would impact the implementation and
effectiveness of these two processes. Be sure to focus on the Demand Management and
Plan processes specifically.
Focus:
GSCF: focus on relationship management and increasing long-term shareholder value.
SCOR: focus on transactional efficiency and identifying area of improvement to achieve
quick pay-back opportunities to achieve cost reductions and asset efficiency.
Demand management: GSCF will corporate with customer relationship management
team and customer service management team to make forecast. And solve the problem
before it occurs. It might be costly in a short-term, but it will benefit the firm in a longterm. However, SCOR will focus on short-term benefit and reduce the manufacturing
costs based on the market. However, a quick-pay back might hurt the customer
relationship in a long-run.
Strategic alignment:
GSCF: each of the GSCF process is aligned with the corporate strategy and the
appropriate functional strategies either directly or indirectly through the CRM and SRM.
SCOR: based on operational strategy. Doesn't consider the connection, which will hurt
the organization-wide alignment of resource. Firms should focus on positioning SCOP
within the overall corporate strategy.
Demand management: GSCF will allow the demand management team manage the
material and manufacture activities based on the overall corporate strategy. A aligned
strategy will give the demand management team a good insight with the demand of their
customer and suppliers. Since SCOR has no connection between functions, it is hard for
them to manage the customer demand accurately, which might cause customer unsatisfaction.
Breadth of activities:
GSCF: the framework is broad in scope, which almost includes everything. The breadth
is intentional. It provide a structure to maintain stable relationships in the supply chain,
which means it provides directions on all activities that interact with customer and
supplier.
SCOR: the framework is limited. It doesn't include marketing, sales, production
development and technology development. The only activities that are includes are those
related to the forward and backward movement of the products, and planning required to
efficiently manage those flow.
Demand management: It is easier for GSCF to make adjustment according to the
directions that interact with customer and supplier. Although it increase the opportunities
of the demand management team to provide value, it is difficult to implement. SCOR

will provide an efficient method about managing the movement of the products, but loss
the flexibility of change based on the customers further demand fluctuation.
Cross-functional integration:
GSCF: touches all aspects of the business, it is critical that each process team includes
representation from all incumbent functions including, but not limited to, marketing,
production, finance, purchasing, etc. Working in cross-functional teams can be difficult
to accomplish.
SCOR: just three functions: logistic, production and purchasing. Easier to implement
and the tradeoff is the management is attempting to manage the supply chain without
critical input from marketing, finance and research and development. Failure to
undermine the initiatives and the failure can be a cost.
Demand management: GSCF: All functions are involved in the planning and implement
of the initiative allow the demand management team to meet the demand that based on
the overall performance of the firm. However, it is difficult to accomplish. SCOR:
effective management of the three functions, but lack of other information may decrease
the manufacturing and sourcing capabilities.
Drivers of value generation:
GSCF: intended not only to measure cost reduction and increased assets utilization, but
also to identify the revenue implications from closely managing relationships with ley
supplier and customer.
SCOR: focus on cost reductions and improvement in utilization, which emphasize the
operational efficiency.
Demand management: GSCF: not only benefit the financial performance in the shortrun ,but also build long-term relationship with customer and supplier. This will
definitely help the firm build competitive advantage during the production activities, and
guide them to manufacture efficiently. SCOR: lower efficiency of demand management
process may benefit from SCOR since the improvements tend to be greater.