SUPPLY CHAIN MANAGEMENT FULL
QUESTIONS AND CORRECT ANSWERS
PROFESSIONAL PREPARATION MATERIAL
●● Supply Chain Management
Answer: A management system that coordinates and integrates all the
activities performed by supply chain members into a seamless process,
from the source to the point of consumption, resulting in enhanced
customer and economic value
Customer-driven management philosophy
●● Supply Chain Agility
Answer: An operational strategy focused on inducing inventory velocity
(the speed at which the inventory is cycled) and operational flexibility
simultaneously in the supply chain
Agile companies synchronize activities through sharing of supply and
demand info, spend more time than competitors on activities that create
direct customer beenfits, partner closely with suppliers and service
providers to reduce customer wait times for products and constantly seek
to reduce supply chain complexity through evaluation and reduction of
nonperforming stock-keeping units (SKUs) Allows for reduced supply
chain costs and better service
,Benefits:
-key means of differentiation for a firm and critical component in
marketing and corporate strategy
-lowers inventory, transportation, warehousing and packaging costs,
greater supply chain flexibility, improved customer service, high
revenues
- relationship between supply chain performance and profitability and
provide better value to customer with only marginal incremental
expenditure on company assets
●● Supply Chain Integration
Answer: When multiple firms or business functions in a supply chain
coordinate their activities and processes so that they are seamlessly
linked to one another in an effort to satisfy the customer
Key principle of supply chain management is that multiple firms and
their functional areas work together to perform tasks as a single, unified
system rather than as several individual companies or business units
acting in isolation
Companies in world class supply chain combine resources, capabilities
and innovations across multiple business functions such that they are
used for best interest of entire supply chain as a whole
, ●● Demand-Supply Integration (DSI)
Answer: A supply chain operational philosophy focused on integrating
the supply management and demand-generating function of an
organization - internal
Functional area in company charged with creating customer demand
(marketing, sales, or R&D) communicate and are synchronized with
other parts of business charged with fulfilling created demand
(purchasing, manufacturing, logistics, etc. )
Different companies act as if single mission and leadership connect them
●● 5 Types of external integration sought by firms interested in
providing top level service
Answer: External 1) Relationship Integration
-ability of two or more companies to develop social connections that
serve to guide their interactions when working together
2) Measurement Integration
-reflects the idea that performance assessments should be transparent
and measurable across borders of different firms and assesses the
performance of supply chain as a whole while holding each individual
firm or business unit accountable for meeting its own goals
3) Technology and Planning Integration
QUESTIONS AND CORRECT ANSWERS
PROFESSIONAL PREPARATION MATERIAL
●● Supply Chain Management
Answer: A management system that coordinates and integrates all the
activities performed by supply chain members into a seamless process,
from the source to the point of consumption, resulting in enhanced
customer and economic value
Customer-driven management philosophy
●● Supply Chain Agility
Answer: An operational strategy focused on inducing inventory velocity
(the speed at which the inventory is cycled) and operational flexibility
simultaneously in the supply chain
Agile companies synchronize activities through sharing of supply and
demand info, spend more time than competitors on activities that create
direct customer beenfits, partner closely with suppliers and service
providers to reduce customer wait times for products and constantly seek
to reduce supply chain complexity through evaluation and reduction of
nonperforming stock-keeping units (SKUs) Allows for reduced supply
chain costs and better service
,Benefits:
-key means of differentiation for a firm and critical component in
marketing and corporate strategy
-lowers inventory, transportation, warehousing and packaging costs,
greater supply chain flexibility, improved customer service, high
revenues
- relationship between supply chain performance and profitability and
provide better value to customer with only marginal incremental
expenditure on company assets
●● Supply Chain Integration
Answer: When multiple firms or business functions in a supply chain
coordinate their activities and processes so that they are seamlessly
linked to one another in an effort to satisfy the customer
Key principle of supply chain management is that multiple firms and
their functional areas work together to perform tasks as a single, unified
system rather than as several individual companies or business units
acting in isolation
Companies in world class supply chain combine resources, capabilities
and innovations across multiple business functions such that they are
used for best interest of entire supply chain as a whole
, ●● Demand-Supply Integration (DSI)
Answer: A supply chain operational philosophy focused on integrating
the supply management and demand-generating function of an
organization - internal
Functional area in company charged with creating customer demand
(marketing, sales, or R&D) communicate and are synchronized with
other parts of business charged with fulfilling created demand
(purchasing, manufacturing, logistics, etc. )
Different companies act as if single mission and leadership connect them
●● 5 Types of external integration sought by firms interested in
providing top level service
Answer: External 1) Relationship Integration
-ability of two or more companies to develop social connections that
serve to guide their interactions when working together
2) Measurement Integration
-reflects the idea that performance assessments should be transparent
and measurable across borders of different firms and assesses the
performance of supply chain as a whole while holding each individual
firm or business unit accountable for meeting its own goals
3) Technology and Planning Integration
