SCMN 2150 UPDATED EXAMS TEST PAPER
QUESTIONS AND ANSWERS SURE A+
✔✔What product flow option best fits each item:
Newspaper
Puppy Chow
Perishable Chicken
Tailgating Tents - ✔✔Newspaper - Direct Delivery
Puppy Chow - Distribution Center
Perishable Chicken - Cross Dock
Tailgating Tents - Distribution Center
✔✔What is the network design process? - ✔✔The objective of the network design is to
set up an optimal and easily maintainable SC configuration and merchandise flow to
enable the SC to best support the business objectives.
1.) Determine problem and model
2.) Collect and validate data
3.) Develop and model scenarios
4.) Evaluate scenario results
5.) Take strategic action
, ✔✔Key challenges to SC network design? - ✔✔Cross chain visibility, product
traceability, collaboration, service quality
✔✔Key principles for the SC network design? - ✔✔to minimize total SC cost
✔✔What types of SC exist? - ✔✔1.) Short-range plans: Job assignment, ordering, job
scheduling, dispatching (Today-3 months).
2.) Intermediate-range plans: Demand planning and forecasting, sales and operations
planing, production, budgeting settling employment, inventory (3 months-couple years).
3.) Long-range plans: R&D (resource and development), new product plans, capital
expenses, facility location, expansion, capacity planning (couple years-few years out).
✔✔What is capacity? - ✔✔The rate at which output can be produced by an operating
unit - machine, process, facility, company, restaurant, movie theater, airplane etc.
✔✔What is capacity planning? - ✔✔Process of establishing the output rate that can be
achieved (throughput)
✔✔What is design capacity? - ✔✔Theoretical or Max output rate or service capacity an
operation, process, or facility is designed for.
(a liter bottle of coke could hold more than it does)
Best operating level
✔✔What is effective capacity? - ✔✔Logical or reasonable expectation of capacity use (a
liter bottle of coke could hold more, but they put the "responsible" amount in)
Normal operating level
✔✔What is capacity utilization? What is the formula? - ✔✔Measures how much of the
available capacity is actually being used; measures effectiveness of operation
Utilization= Actual output/capacity (100%)
✔✔What is the 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 (Ex: Barden giving us more time to take the
quizzes).
✔✔What is the goal of capacity planning and management? What happens if capacity is
greater then demand and vice versa? - ✔✔To match capacity and demand
Capacity > Demand = excess inventory
QUESTIONS AND ANSWERS SURE A+
✔✔What product flow option best fits each item:
Newspaper
Puppy Chow
Perishable Chicken
Tailgating Tents - ✔✔Newspaper - Direct Delivery
Puppy Chow - Distribution Center
Perishable Chicken - Cross Dock
Tailgating Tents - Distribution Center
✔✔What is the network design process? - ✔✔The objective of the network design is to
set up an optimal and easily maintainable SC configuration and merchandise flow to
enable the SC to best support the business objectives.
1.) Determine problem and model
2.) Collect and validate data
3.) Develop and model scenarios
4.) Evaluate scenario results
5.) Take strategic action
, ✔✔Key challenges to SC network design? - ✔✔Cross chain visibility, product
traceability, collaboration, service quality
✔✔Key principles for the SC network design? - ✔✔to minimize total SC cost
✔✔What types of SC exist? - ✔✔1.) Short-range plans: Job assignment, ordering, job
scheduling, dispatching (Today-3 months).
2.) Intermediate-range plans: Demand planning and forecasting, sales and operations
planing, production, budgeting settling employment, inventory (3 months-couple years).
3.) Long-range plans: R&D (resource and development), new product plans, capital
expenses, facility location, expansion, capacity planning (couple years-few years out).
✔✔What is capacity? - ✔✔The rate at which output can be produced by an operating
unit - machine, process, facility, company, restaurant, movie theater, airplane etc.
✔✔What is capacity planning? - ✔✔Process of establishing the output rate that can be
achieved (throughput)
✔✔What is design capacity? - ✔✔Theoretical or Max output rate or service capacity an
operation, process, or facility is designed for.
(a liter bottle of coke could hold more than it does)
Best operating level
✔✔What is effective capacity? - ✔✔Logical or reasonable expectation of capacity use (a
liter bottle of coke could hold more, but they put the "responsible" amount in)
Normal operating level
✔✔What is capacity utilization? What is the formula? - ✔✔Measures how much of the
available capacity is actually being used; measures effectiveness of operation
Utilization= Actual output/capacity (100%)
✔✔What is the 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 (Ex: Barden giving us more time to take the
quizzes).
✔✔What is the goal of capacity planning and management? What happens if capacity is
greater then demand and vice versa? - ✔✔To match capacity and demand
Capacity > Demand = excess inventory
