Which of the following is NOT an objective of performance monitoring and control?

Increase lead time in operations

Enable effective provision of logistics services

Achieve future business objectives

Support planning and control of operations

What is one of the primary reasons organizations choose to outsource logistics operations?

To focus on core business or competence

To eliminate supply chain risks

What is critical for maintaining a good third-party logistics (3PL) and client relationship?

High degree of trust and collaboration

Use of mobile data communication

What are the four principal elements of inventory-holding cost?

Capital financing cost, Service cost, Storage cost, Risk cost

Explain the bullwhip effect in supply chain management.

The bullwhip effect refers to the amplification of small changes in demand as they move back through the supply chain, resulting in larger fluctuations in orders at each level of the supply chain.

What is the difference between cycle stock and safety stock?

Cycle stock is the inventory that a company uses to fulfill regular demand. Safety stock (or buffer stock) is the extra inventory kept to prevent stockouts due to uncertainties in supply and demand.

How can excess inventory be minimized using the ABC analysis method?

The ABC analysis method classifies inventory into three categories: 'A' lines are fast-moving items (~20%). 'B' lines are medium-moving items (~30%). 'C' lines are slow-moving or obsolete items (~50%). Focusing on controlling high-value 'A' items and reducing slow-moving 'C' items helps minimize excess inventory.

What is a push system, and how does it differ from a pull system in inventory management?

A push system anticipates future demand and produces goods to stock in advance. A pull system is demand-driven, meaning products are only made or ordered when a customer places an order.

What are the four perspectives of the balanced scorecard?

Financial perspective, Customer perspective, Internal process perspective, Innovation and learning perspective

Explain the SCOR® model and its role in performance monitoring.

The SCOR® (Supply Chain Operations Reference) model is used to measure performance in a supply chain by focusing on categories such as assets, cost, flexibility, and time. It helps align supply chain management with business objectives.

What is activity-based costing (ABC), and why is it important in logistics?

Activity-based costing (ABC) is an accounting method that assigns costs to products and services based on the activities required to produce them. It helps logistics operations accurately track the true cost of activities and improve cost efficiency.

How does the cost-to-serve® method differ from activity-based costing?

Cost-to-serve® is similar to activity-based costing but less resource-intensive. It focuses specifically on how costs are consumed throughout the supply chain, making it a practical tool for distribution and logistics analysis.

List two common methods for forecasting demand in logistics.

Moving Average/Weighted Moving Average Exponential Smoothing

What are the key factors that influence an organization's decision to outsource logistics?

Organizational factors, Financial factors, Service factors, Physical factors, Partnership and collaboration

Why is trust important in a third-party logistics (3PL) and client relationship?

Trust is essential because a 3PL and client relationship involves close collaboration and sharing of information. A high degree of trust ensures smoother communication, problem-solving, and a stronger partnership to meet business objectives.

What are the main methods used to monitor and control a 3PL operation?

Monitoring against the contract, Service level agreements (SLAs), Budgetary control, Key Performance Indicators (KPIs), Regular review meetings, Activity forecasts, Open book audits

What is the role of Key Performance Indicators (KPIs) in logistics management?

KPIs are used to measure the performance and efficiency of logistics operations. They help managers track progress toward goals, identify areas for improvement, and ensure that operations align with strategic objectives.

Describe one major difference between a dedicated operation and a multi-user distribution operation.

A dedicated operation serves a single client exclusively. A multi-user distribution operation is shared by multiple clients, optimizing costs and resources through shared services.

D470 Competency 3

Authored by Winnie Phung

Other

University

Used 1+ times

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View

Student View

27 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might a company choose to hold stock?

To avoid paying taxes

To minimize production costs and accommodate variations in demand

To reduce customer service needs

To increase lead times

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a type of stock typically held by companies in supply chains?

Raw material stocks

Seasonal stock

Finished products

Environmental stock

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does ABC analysis help companies minimize?

Labor costs

Excess inventory

Capital investment

Safety stock

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which system involves centralized inventory from which customers are supplied directly?

Echelon system

Direct system

Mixed system

Push system

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the term used to describe the amplification of small changes in demand as they move back through the supply chain?

Demand surge

Bullwhip effect

Supply chain ripple

Forecast fluctuation

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The balanced scorecard translates a company’s strategic mission into tangible objectives and measures in which four perspectives?

Assets, Cost, Time, Inventory

Financial, Customer, Internal, Innovation & Learning

Profit, Cost, Operations, Forecasting

Productivity, Lead time, Flexibility, Orders

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the purpose of the SCOR® model in supply chain management?

To set logistics KPIs

To enable flexible budgeting

To monitor cost and performance

To provide variance analysis

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Classlink

Continue with Clever

or continue with

Microsoft

Apple

Others

Already have an account?

Similar Resources on Wayground

25 questions

Cash Vs Accrual Accounting and Income Statement

Quiz

•

University

22 questions

El juego del calamar

Quiz

•

1st Grade - University

25 questions

Sales of Goods Law

Quiz

•

12th Grade - University

24 questions

The U.S. and the Global Economy

Quiz

•

8th Grade - University

24 questions

Manufacturing Account

Quiz

•

University

25 questions

LEA I

Quiz

•

University - Professi...

25 questions

FINANCIAL MARKET

Quiz

•

University

25 questions

Soft Skill-Quantitative Aptitude

Quiz

•

University

Popular Resources on Wayground

15 questions

Fractions on a Number Line

Quiz

•

3rd Grade

20 questions

Equivalent Fractions

Quiz

•

3rd Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

54 questions

Analyzing Line Graphs & Tables

Quiz

•

4th Grade

$fractions$

22 questions

fractions

Quiz

•

3rd Grade

20 questions

Main Idea and Details

Quiz

•

5th Grade

20 questions

Context Clues

Quiz

•

6th Grade

15 questions

Equivalent Fractions

Quiz

•

4th Grade

Discover more resources for Other

7 questions

How James Brown Invented Funk

Interactive video

•

10th Grade - University

5 questions

Helping Build the Internet: Valerie Thomas | Great Minds

Interactive video

•

11th Grade - University

12 questions

IREAD Week 4 - Review

Quiz

•

3rd Grade - University

23 questions

Subject Verb Agreement

Quiz

•

9th Grade - University

7 questions

Renewable and Nonrenewable Resources

Interactive video

•

4th Grade - University

19 questions

Review2-TEACHER

Quiz

•

University

15 questions

Pre2_STUDENT

Quiz

•

University

20 questions

Ch. 7 Quadrilateral Quiz Review

Quiz

•

KG - University

D470 Competency 3

Why might a company choose to hold stock?

Which of the following is NOT a type of stock typically held by companies in supply chains?

What does ABC analysis help companies minimize?

Which system involves centralized inventory from which customers are supplied directly?

What is the term used to describe the amplification of small changes in demand as they move back through the supply chain?

The balanced scorecard translates a company’s strategic mission into tangible objectives and measures in which four perspectives?

What is the purpose of the SCOR® model in supply chain management?

Which of the following is NOT an objective of performance monitoring and control?

Which accounting method addresses problems like the inability to identify cost implications for specific markets?

What is one of the primary reasons organizations choose to outsource logistics operations?

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Other