SCMN 2150 LATEST 2026 EXAM QUESTIONS AND
ANSWERS SCORED A+
✔✔distribution center - ✔✔items held in inventory at middle warehouse
- high inventory held at warehouse
- high handling costs
- high facility investment
✔✔newspaper - ✔✔direct delivery
✔✔dog food or tents - ✔✔distribution center
✔✔chicken - ✔✔cross dock
✔✔What is the network design process? - ✔✔to set-up an optimal and easily
maintainable supply chain configuration and merchandise flows to enable the supply
chain to best support the business objectives.
✔✔Centralized Distribution has an advantage in - ✔✔lower overall inventory
✔✔handling cost are the highest for the following network fulfillment method -
✔✔distribution center
✔✔auburn has an RFID lab that work on Supply chain solutions like product tracking
and visibility - ✔✔true
✔✔Short-range planning - ✔✔Job assignments
Ordering
Job scheduling Dispatching
✔✔intermediate range plans - ✔✔Demand planning & forecasting
Sales & operations planning
Production planning & budgeting Setting employment, inventory,
subcontracting levels Analyzing operating plans
✔✔long range capacity - ✔✔R&D
New product plans
Capital expenses
Facility location, expansion Capacity planning
✔✔capacity - ✔✔the rate at which output can be produced by an operating unit -
machine, process, facility, company, restaurant, movie theater, airplane, etc.
✔✔design capacity - ✔✔Theoretical or maximum output rate or service capacity an
, operation, process, or facility is designed for (best operating level)
✔✔Effective capacity - ✔✔Logical or reasonable expectation of capacity use
• Design capacity minus typical allowances such as personal time, maintenance, and
scrap (normal operating level)
✔✔Capacity Utilization - ✔✔Measures how much of the available capacity is actually
being used
✔✔capacity cushion - ✔✔an additional amount of capacity added onto the expected
demand to allow for greater than expected demand and demand during peak demand
seasons. Creates flexibility.
✔✔Capacity Planning and Management - ✔✔• Goal is to match capacity and demand
✔✔If capacity > demand - ✔✔then risk = excess inventory
✔✔If capacity < demand - ✔✔then risk = inventory shortage
✔✔How to match capacity to demand - ✔✔Make staffing changes
• Adjust equipment levels
• Improve processes, make them flexible
• Redesign products for ease of production • Add/close facilities
✔✔things we forecast or predict - ✔✔weather, demand, sports, stock market
✔✔two forecasting methods - ✔✔qualitative and quantitative
✔✔scheduling - ✔✔Allocation of resources to activities over time so that demands are
met in a timely and cost-effective manner
✔✔sequencing - ✔✔Order of occurrence; process of following a specific order to ensure
quality
✔✔Materials Requirements Planning - ✔✔a tool to deal with over/under purchasing of
key input items (materials and subassemblies).
✔✔gross requirements - ✔✔Total expected demand for end item or component in a
time period.
✔✔Projected on hand - ✔✔expected amount of inventory that will be on hand at the
beginning of each time period
✔✔net requirement - ✔✔The actual amount that we need to
ANSWERS SCORED A+
✔✔distribution center - ✔✔items held in inventory at middle warehouse
- high inventory held at warehouse
- high handling costs
- high facility investment
✔✔newspaper - ✔✔direct delivery
✔✔dog food or tents - ✔✔distribution center
✔✔chicken - ✔✔cross dock
✔✔What is the network design process? - ✔✔to set-up an optimal and easily
maintainable supply chain configuration and merchandise flows to enable the supply
chain to best support the business objectives.
✔✔Centralized Distribution has an advantage in - ✔✔lower overall inventory
✔✔handling cost are the highest for the following network fulfillment method -
✔✔distribution center
✔✔auburn has an RFID lab that work on Supply chain solutions like product tracking
and visibility - ✔✔true
✔✔Short-range planning - ✔✔Job assignments
Ordering
Job scheduling Dispatching
✔✔intermediate range plans - ✔✔Demand planning & forecasting
Sales & operations planning
Production planning & budgeting Setting employment, inventory,
subcontracting levels Analyzing operating plans
✔✔long range capacity - ✔✔R&D
New product plans
Capital expenses
Facility location, expansion Capacity planning
✔✔capacity - ✔✔the rate at which output can be produced by an operating unit -
machine, process, facility, company, restaurant, movie theater, airplane, etc.
✔✔design capacity - ✔✔Theoretical or maximum output rate or service capacity an
, operation, process, or facility is designed for (best operating level)
✔✔Effective capacity - ✔✔Logical or reasonable expectation of capacity use
• Design capacity minus typical allowances such as personal time, maintenance, and
scrap (normal operating level)
✔✔Capacity Utilization - ✔✔Measures how much of the available capacity is actually
being used
✔✔capacity cushion - ✔✔an additional amount of capacity added onto the expected
demand to allow for greater than expected demand and demand during peak demand
seasons. Creates flexibility.
✔✔Capacity Planning and Management - ✔✔• Goal is to match capacity and demand
✔✔If capacity > demand - ✔✔then risk = excess inventory
✔✔If capacity < demand - ✔✔then risk = inventory shortage
✔✔How to match capacity to demand - ✔✔Make staffing changes
• Adjust equipment levels
• Improve processes, make them flexible
• Redesign products for ease of production • Add/close facilities
✔✔things we forecast or predict - ✔✔weather, demand, sports, stock market
✔✔two forecasting methods - ✔✔qualitative and quantitative
✔✔scheduling - ✔✔Allocation of resources to activities over time so that demands are
met in a timely and cost-effective manner
✔✔sequencing - ✔✔Order of occurrence; process of following a specific order to ensure
quality
✔✔Materials Requirements Planning - ✔✔a tool to deal with over/under purchasing of
key input items (materials and subassemblies).
✔✔gross requirements - ✔✔Total expected demand for end item or component in a
time period.
✔✔Projected on hand - ✔✔expected amount of inventory that will be on hand at the
beginning of each time period
✔✔net requirement - ✔✔The actual amount that we need to
