chopra_scm5_tif_ch02.doc

 Supply Chain Management, 5e (Chopra/Meindl) Chapter 2 Supply Chain Performance: Achieving Strategic Fit Fit and Scope

2.1 True/False Questions 1) A company's competitive strategy defines the set of customer needs that it seeks to satisfy through its products and services. Anser! T"#$ %iff! 1 Topic! 2.1 &ompetitive and upply &hain trategies AA&(! Analytic kills 2) The value chain emphasies the close relationship *eteen all the functional strategies ithin a company. Anser! T"#$ %iff! 2 Topic! 2.1 &ompetitive and upply &hain trategies +) A company's product development strategy defines the set of customer needs that it seeks to satisfy through its products and services. Anser! FA,$ %iff! 2 Topic! 2.1 &ompetitive and upply &hain trategies -) A company's product development strategy specifies the portfolio of ne products that it ill try to develop. Anser! T"#$ %iff! 1 Topic! 2.1 &ompetitive and upply &hain trategies ) A company's supply chain strategy determines the nature of procurement and transportation of  materials as ell as the manufacture and distri*ution of the product. Anser! T"#$ %iff! 1 Topic! 2.1 &ompetitive and upply &hain trategies ) The degree of supply chain responsiveness should *e consistent ith the implied uncertainty. Anser! T"#$ %iff! 1 Topic! 2.2 Achieving trategic Fit AA&(! Analytic kills 0) The degree of supply chain responsiveness does not need to *e consistent ith the implied uncertainty. Anser! FA,$ %iff! 2 Topic! 2.2 Achieving trategic Fit 21 &opyright  231+ 4earson $ducation5 6nc. pu*lishing as 4rentice 7all

8) To achieve complete strategic fit5 a firm must ensure that all functions in the value chain have consistent strategies that support the competitive strategy. Anser! T"#$ %iff! 2 Topic! 2.2 Achieving trategic Fit 9) To achieve complete strategic fit5 a firm must ensure that all functions in the value chain have diverse strategies that support functional goals. Anser! FA,$ %iff! 2 Topic! 2.2 Achieving trategic Fit 13) (ecause demand and supply characteristics change5 the supply chain strategy must change over the product life cycle if a company is to continue achieving strategic fit. Anser! T"#$ %iff! 1 Topic! 2.2 Achieving trategic Fit 11) To retain strategic fit5 supply chain strategy must *e a d:usted over the life cycle of a product and as the competitive landscape changes. Anser! T"#$ %iff! 2 Topic! 2.2 Achieving trategic Fit 12) The intercompany scope of strategic fit is no longer relevant today *ecause the competitive  playing field has shifted from company versus company to supply chain versus supply chain. Anser! FA,$ %iff! 1 Topic! 2.2 Achieving trategic Fit 1+) A company ill fail if there is a lack of strategic fit or *ecause its overall supply chain design5 processes5 and resources do not provide the capa*ilities to support the ma;imum strategic fit. Anser! FA,$ %iff! + Topic! 2.2 Achieving trategic Fit AA&(! Analytic kills 1-) The folloing situation ould likely ork ell. A situation in hich marketing is  pu*liciing a company's a*ility to provide a large variety of products very ultiple &hoice Questions 1) A company's competitive strategy A) defines the set of customer needs that it seeks to satisfy through its products and services. () specifies the portfolio of ne products that it ill try to develop. &) specifies ho the market ill *e segmented and ho the product ill *e positioned5 priced5 and promoted. %) determines the nature of procurement and transportation of materials as ell as manufacture and distri*ution of the product. $) determines ho it ill o*tain and maintain the appropriate set of skills and a*ilities to meet customer needs. Anser! A %iff! 2 Topic! 2.1 &ompetitive and upply &hain trategies AA&(! "eflective Thinking kills 2) A company's product development strategy A) defines the set of customer needs that it seeks to satisfy through its products and services. () specifies the portfolio of ne products that it ill try to develop. &) specifies ho the market ill *e segmented and ho the product ill *e positioned5 priced5 and promoted. %) determines the nature of procurement and transportation of materials as ell as manufacture and distri*ution of the product. $) determines ho it ill o*tain and maintain the appropriate set of skills and a*ilities to meet customer needs. Anser! ( %iff! 1 Topic! 2.1 &ompetitive and upply &hain trategies

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+) A company's marketing and sales strategy A) defines the set of customer needs that it seeks to satisfy through its products and services. () specifies the portfolio of ne products that it ill try to develop. &) specifies ho the market ill *e segmented and ho the product ill *e positioned5 priced5 and promoted. %) determines the nature of procurement and transportation of materials as ell as manufacture and distri*ution of the product. $) determines ho it ill o*tain and maintain the appropriate set of skills and a*ilities to meet customer needs. Anser! & %iff! 2 Topic! 2.1 &ompetitive and upply &hain trategies -) A company's supply chain strategy A) defines the set of customer needs that it seeks to satisfy through its products and services. () specifies the portfolio of ne products that it ill try to develop. &) specifies ho the market ill *e segmented and ho the product ill *e positioned5 priced5 and promoted. %) determines the nature of procurement and transportation of materials as ell as manufacture and distri*ution of the product. $) determines ho it ill o*tain and maintain the appropriate set of skills and a*ilities to meet customer needs. Anser! % %iff! 1 Topic! 2.1 &ompetitive and upply &hain trategies ) ?hich of the folloing determines the nature of procurement of ra materials5 transportation of materials to and from the company5 manufacture of the product or operation to provide the service5 and distri*ution of the product to the customer along ith folloup service@ A) &ompetitive strategy () 4roduct development strategy &) >arketing and sales strategy %) upply chain strategy $) none of the a*ove Anser! % %iff! 1 Topic! 2.1 &ompetitive and upply &hain trategies

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) ?hich of the folloing defines the set of customer needs that a company seeks to satisfy through its products and services@ A) &ompetitive strategy () 4roduct development strategy &) >arketing and sales strategy %) upply chain strategy $) none of the a*ove Anser! A %iff! 2 Topic! 2.1 &ompetitive and upply &hain trategies 0) ?hich of the folloing specifies the portfolio of ne products that a company ill try to develop@ A) &ompetitive strategy () 4roduct development strategy &) >arketing and sales strategy %) upply chain strategy $) all of the a*ove Anser! ( %iff! 1 Topic! 2.1 &ompetitive and upply &hain trategies 8) A supply chain strategy involves decisions regarding A) inventory. () transportation. &) operating facilities. %) information flos. $) all of the a*ove Anser! $ %iff! 2 Topic! 2.1 &ompetitive and upply &hain trategies 9) A supply chain strategy involves decisions regarding all of the folloing e;cept A) inventory. () transportation. &) ne product development. %) operating facilities. $) information flos. Anser! & %iff! 2 Topic! 2.1 &ompetitive and upply &hain trategies

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13) ?hich of the folloing is not a key to the success or failure of a company@ A) The competitive strategy and all functional strategies must fit together to form a coordinated overall strategy. () The competitive strategy and all functional strategies operate independently of each other. &) The different functions in a company must appropriately structure their processes and resources to *e a*le to e;ecute strategies successfully. %) $ach functional strategy must support other functional strategies and help a firm reach its competitive strategy goal. $) All of the a*ove are keys to success. Anser! ( %iff! 2 Topic! 2.2 Achieving trategic Fit 11) ?hich of the folloing are *asic steps to achieving strategic fit@ A) #nderstanding the customer and supply uncertainty. () #nderstanding the supply chain capa*ilities. &) Achieving strategic fit. %) All of the a*ove are *asic steps to achieving strategic fit. $) one of the a*ove are a *asic step to achieving strategic fit. Anser! % %iff! 2 Topic! 2.2 Achieving trategic Fit AA&(! Analytic kills 12) The uncertainty of customer demand for a product is the A) rate of strategic uncertainty. () demand uncertainty. &) implied demand uncertainty. %) average forecast error. $) none of the a*ove Anser! ( %iff! 2 Topic! 2.2 Achieving trategic Fit AA&(! Analytic kills 1+) The uncertainty that e;ists due to the portion of demand that the supply chain is reatch supply chain responsiveness ith the implied uncertainty of demand &) >eet short lead times %) $nsure that all functional strategies ithin the supply chain support the supply chain's level of  responsiveness $) all of the a*ove Anser! & %iff! 2 Topic! 2.2 Achieving trategic Fit 2-) The cost of making and delivering a product to the customer is referred to as A) supply chain responsiveness. () supply chain efficiency. &) costresponsiveness efficient frontier. %) implied uncertainty. $) none of the a*ove Anser! ( %iff! 1 Topic! 2.2 Achieving trategic Fit 2) The curve that shos the loest possi*le cost for a given level of responsiveness is referred to as the A) supply chain responsiveness curve. () supply chain efficiency curve. &) costresponsiveness efficient frontier. %) responsiveness spectrum. $) none of the a*ove Anser! & %iff! 2 Topic! 2.2 Achieving trategic Fit

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2) A firm that is not on the costresponsiveness efficient frontier can improve A) *oth responsiveness and cost performance. () only responsiveness. &) only cost performance. %) responsiveness5 *ut not cost performance. $) neither responsiveness nor cost performance. Anser! A %iff! 1 Topic! 2.2 Achieving trategic Fit AA&(! Analytic kills 20) A graph ith to a;es ith implied uncertainty along the horiontal a;is and responsiveness along the vertical a;is is referred to as the A) implied uncertainty spectrum. () responsiveness spectrum. &) uncertainty/responsiveness map. %) one of strategic fit. $) none of the a*ove Anser! & %iff! 2 Topic! 2.2 Achieving trategic Fit 28) The relationship here increasing implied uncertainty from customers and supply sources is  *est served *y increasing responsiveness from the supply chain is knon as the A) implied uncertainty spectrum. () responsiveness spectrum. &) uncertainty/responsiveness map. %) one of strategic fit. $) none of the a*ove Anser! % %iff! 2 Topic! 2.2 Achieving trategic Fit AA&(! Analytic kills 29) The drive for strategic fit should come from A) the supply chain manager. () the strategic planning department. &) the highest levels of the organiation5 such as the &$C. %) middle management. $) sales and marketing. Anser! & %iff! + Topic! 2.2 Achieving trategic Fit

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+3) The important points to remem*er a*out achieving strategic fit are A) there is one *est supply chain strategy for all competitive strategies. () there is no right supply chain strategy independent of the competitive strategy. &) there is a right supply chain strategy for a given competitive strategy. %) all of the a*ove $) ( and & only Anser! $ %iff! + Topic! 2.2 Achieving trategic Fit +1) The prefera*le supply chain strategy for a firm that sells multiple products and serves customer segments ith very different needs is to A) set up independent supply chains for each different product or customer segment. () set up a supply chain that meets the needs of the highest volume product or customer segment. &) tailor the supply chain to *est meet the needs of each product's demand. %) set up a supply chain that meets the needs of the customer segment ith the highest implied uncertainty. $) set up a supply chain that meets the needs of product ith the highest implied uncertainty. Anser! & %iff! + Topic! 2.2 Achieving trategic Fit +2) ?hich of the folloing ould not *e a demand and supply characteristic toard the  *eginning stages of a product's life cycle@ A) %emand is very uncertain and supply may *e unpredicta*le. () %emand has *ecome more certain and supply is predicta*le. &) >argins are often high and time is crucial to gaining sales. %) 4roduct availa*ility is crucial to capturing the market. $) &ost is often of secondary consideration. Anser! ( %iff! 2 Topic! 2.2 Achieving trategic Fit ++) ?hich of the folloing ould *e a demand and supply characteristic toard the *eginning stages of a product's life cycle@ A) %emand has *ecome more certain and supply is predicta*le. () >argins are loer due to an increase in competitive pressure. &) 4roduct availa*ility is crucial to capturing the market. %) 4rice *ecomes a significant factor in customer choice. $) none of the a*ove Anser! & %iff! 2 Topic! 2.2 Achieving trategic Fit

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+-) ?hich of the folloing ould not *e a demand and supply characteristic in the later stages of  a product's life cycle@ A) %emand has *ecome more certain and supply is predicta*le. () >argins are loer due to an increase in competitive pressure. &) 4roduct availa*ility is crucial to capturing the market. %) 4rice *ecomes a significant factor in customer choice. $) All of the a*ove are characteristics of the later stages. Anser! & %iff! 2 Topic! 2.2 Achieving trategic Fit +) The functions and stages that devise an integrated strategy ith a shared o*:ective are referred to as A) competitive strategy. () supply chain strategy. &) scope of strategic fit. %) scope of marketing strategy. $) scope of product development strategy. Anser! & %iff! 2 Topic! 2.+ $;panding trategic cope +) The value chain consists of direct and indirect activities. ?hich of the folloing is an indirect activity for an enterprise@ A) >arketing () %istri*ution &) 7uman "esources %) ervice Anser! & %iff! + Topic! 2.1 &ompetitive and upply &hain trategies +0) A DDDDDDDD strategy specifies the portfolio of ne produ cts that a company ill try to develop. A) 4roduct %evelopment () >arketing and ales &) upply &hain %) Finance Anser! A %iff! 2 Topic! 2.1 &ompetitive and upply &hain trategies

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+8) A DDDDDDDD strategy specifies ho the market ill *e segmented and ho the product ill  *e positioned5 priced5 and promoted. A) 4roduct %evelopment () >arketing and ales &) upply &hain %) Finance Anser! ( %iff! 2 Topic! 2.1 &ompetitive and upply &hain trategies +9) (eteen 199+ and 2335 %ell's competitive strategy as to provide a large variety of customia*le products at a reasona*le price. Eiven the focus on customiation5 %ell's supply chain as designed to A) *e responsive. () provide a different product. &) operate on a locost *asis. %) provide sustaina*le products. Anser! A %iff! + Topic! 2.2 Achieving trategic Fit AA&(! "eflective Thinking kills -3) For a company to achieve strategic fit5 it must accomplish the folloing keys! A) All functional strategies must fit together to form a coordinated overall strategy. () The different functions in a company must appropriately structure their processes and resources to *e a*le to e;ecute these strategies successfully &) The overall supply chain must operate at the loest cost possi*le to achieve success. %) The design of the overall supply chain and the role of each stage must *e aligned to support the supply chain strategy. Anser! & %iff! 2 Topic! 2.2 Achieving trategic Fit AA&(! Analytic kills -1) $fficient supply chains A) respond aintaining trategic Fit AA&(! Analytic kills

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2.+ $ssay Questions 1) %iscuss the to keys to the success or failure of a company. Anser! A company's success or failure is thus closely linked to the folloing keys! 1. The competitive strategy and all functional strategies must fit together to form a coordinated overall strategy. $ach functional strategy must support other functional strategies and help a firm reach its competitive strategy goal. 2. The different functions in a company must appropriately structure their processes and resources to *e a*le to e;ecute these strategies successfully. %iff! + Topic! 2.2 Achieving trategic Fit 2) ,ist and e;plain the three *asic steps to achieving strategic fit. Anser! There are three *asic steps to achieving strategic fit! 1. #nderstanding the customer and supply chain uncertainty. First a company must understand the customer needs for each targeted segment and the uncertainty the supply chain faces in satisfying these needs. These needs help the company define the desired cost and service re