SUPPLY CHAIN EXAM 1 QUESTIONS
AND ANSWERS
Supply Chain Management - Correct Answers -Encompasses the planning and
management of all activities involved in sourcing and procurement, conversion, and all
logistics management activities. Importantly, it also includes coordination and
collaboration with channel partners, which can be suppliers, intermediaries, third party
service providers, and customers. In essence, supply chain management integrates
supply and demand management within and across companies.
supply chain management - Correct Answers -includes all the activities that it takes to
get the product from the supplier to the retail store, so consumers can buy it
supply chain management - Correct Answers -the art of managing the flow of materials
and products, information, and financial resources from source to user
essential activities - Correct Answers -planning, procurement, production, distribution,
and customer interface
key participants - Correct Answers -suppliers, manufacturers, distributors, retailers, and
consumers
most important part of the supply chain - Correct Answers -the consumer because
consumer demand drives everything we do
Goals of SCM - Correct Answers -focus on better, faster, cheaper, and more responsive
supply chains; greater financial success means higher profitability for the company
customer care (goal) - Correct Answers -drive outstanding value for customers so that
they'll come back in the future
competitiveness (goal) - Correct Answers -company must be able to meet or exceed the
service/product levels provided by their competitors
efficiency (goal) - Correct Answers -can't overspend or over-complicate the supply chain
responsiveness and resilience (goal) - Correct Answers -the supply chain must quickly
adapt to all conditions
, nodes - Correct Answers -a fixed point in the supply chain where goods are processed,
mixed, held, or sold (ex. warehouses, plants, stores)
links - Correct Answers -the transportation method used to connect nodes in the supply
chain (ex. plane, train, ship, truck, pipeline, internet)
value added processes - Correct Answers -incoming materials are converted into a
more valuable state to meet downstream customer needs
centralized - Correct Answers -focuses on all the activities that take place at a single
node, the network is designed around that single node
benefits of centralized networks - Correct Answers -lower inventory and safety stock
levels
single location creates better visibility
lower overhead stock
less labor
smaller management team
economies of scale
challenges of centralized networks - Correct Answers -longer lead times
higher delivery costs
potential inefficiencies as single facility grows
potential issues with regional customers
decentralized - Correct Answers -multiple regional nodes that make up the overall
network; each site is the focus of its own inbound flows and transportation
benefits of decentralized network - Correct Answers -primary benefit is customer
proximity
shorter lead times
lower delivery costs
responsive to demand
challenges of decentralized networks - Correct Answers -more safety stock in system
because there is extra inventory at each location
higher overhead costs
more managers
no economies of scale
direct distribution - Correct Answers -move products directly from out facility to customer
location with no stopping along the way
benefits of direct delivery - Correct Answers -point to point service
eliminates need for intermediate facilities
inventory not idled
AND ANSWERS
Supply Chain Management - Correct Answers -Encompasses the planning and
management of all activities involved in sourcing and procurement, conversion, and all
logistics management activities. Importantly, it also includes coordination and
collaboration with channel partners, which can be suppliers, intermediaries, third party
service providers, and customers. In essence, supply chain management integrates
supply and demand management within and across companies.
supply chain management - Correct Answers -includes all the activities that it takes to
get the product from the supplier to the retail store, so consumers can buy it
supply chain management - Correct Answers -the art of managing the flow of materials
and products, information, and financial resources from source to user
essential activities - Correct Answers -planning, procurement, production, distribution,
and customer interface
key participants - Correct Answers -suppliers, manufacturers, distributors, retailers, and
consumers
most important part of the supply chain - Correct Answers -the consumer because
consumer demand drives everything we do
Goals of SCM - Correct Answers -focus on better, faster, cheaper, and more responsive
supply chains; greater financial success means higher profitability for the company
customer care (goal) - Correct Answers -drive outstanding value for customers so that
they'll come back in the future
competitiveness (goal) - Correct Answers -company must be able to meet or exceed the
service/product levels provided by their competitors
efficiency (goal) - Correct Answers -can't overspend or over-complicate the supply chain
responsiveness and resilience (goal) - Correct Answers -the supply chain must quickly
adapt to all conditions
, nodes - Correct Answers -a fixed point in the supply chain where goods are processed,
mixed, held, or sold (ex. warehouses, plants, stores)
links - Correct Answers -the transportation method used to connect nodes in the supply
chain (ex. plane, train, ship, truck, pipeline, internet)
value added processes - Correct Answers -incoming materials are converted into a
more valuable state to meet downstream customer needs
centralized - Correct Answers -focuses on all the activities that take place at a single
node, the network is designed around that single node
benefits of centralized networks - Correct Answers -lower inventory and safety stock
levels
single location creates better visibility
lower overhead stock
less labor
smaller management team
economies of scale
challenges of centralized networks - Correct Answers -longer lead times
higher delivery costs
potential inefficiencies as single facility grows
potential issues with regional customers
decentralized - Correct Answers -multiple regional nodes that make up the overall
network; each site is the focus of its own inbound flows and transportation
benefits of decentralized network - Correct Answers -primary benefit is customer
proximity
shorter lead times
lower delivery costs
responsive to demand
challenges of decentralized networks - Correct Answers -more safety stock in system
because there is extra inventory at each location
higher overhead costs
more managers
no economies of scale
direct distribution - Correct Answers -move products directly from out facility to customer
location with no stopping along the way
benefits of direct delivery - Correct Answers -point to point service
eliminates need for intermediate facilities
inventory not idled
