SCMN 3730: Exam 1 (Cole) Study Guide Latest 2026 Updated
Questions and Verified 100% Solutions (2026/2027) Grade:
A+|Status: Guaranteed Pass
dangers of giving supply management to 1st tier suppliers - Answers -less control, less visibility if
not interacting with lower-tier suppliers
two examples of less control - Answers -costs, sustainability
two examples of less visibility - Answers -technology developments, market information
only incurred if something is actively produced - Answers -variable costs
not influenced by volume or production - Answers -fixed costs
type of cost analysis: used for new products, or major changes in products - Answers -target
cost
type of cost analysis: estimated based off what the customer will pay or is already paying, less
required margin if not already losing money - Answers -target cost
1|Page
,type of cost analysis: costs are allocated to categories and suppliers are asked to meet or beat
targets - Answers -target cost
type of cost analysis: used as the base for supplier negotiation and development - Answers -
should cost
type of cost analysis: various approaches to estimate - Answers -should cost
type of cost analysis: results are compared to suppliers' current practices to identify
opportunities for improvement - Answers -should cost
type of cost analysis: ask suppliers for a cost breakdown - Answers -supplier cost disclosure
type of cost analysis: should be used to identify areas for improvement - Answers -supplier cost
disclosure
type of cost analysis: suppliers fear it can be used to negotiate leaner margins - Answers -
supplier cost disclosure
2|Page
, all costs associated with the acquisition, use and maintenance of a good or service - Answers -
total cost of ownership
pre-transaction components of total cost of ownership - Answers -investigating sources
qualifying sources
training/education
transaction components of total cost of ownership - Answers -price
order placement
transportation
tariffs/duties
billing/payment
inspection
return of parts
follow-up and correction
post-transaction components of total cost of ownership - Answers -warranty issues
outbound logistics
person whom the action affects - Answers -principal
3|Page
Questions and Verified 100% Solutions (2026/2027) Grade:
A+|Status: Guaranteed Pass
dangers of giving supply management to 1st tier suppliers - Answers -less control, less visibility if
not interacting with lower-tier suppliers
two examples of less control - Answers -costs, sustainability
two examples of less visibility - Answers -technology developments, market information
only incurred if something is actively produced - Answers -variable costs
not influenced by volume or production - Answers -fixed costs
type of cost analysis: used for new products, or major changes in products - Answers -target
cost
type of cost analysis: estimated based off what the customer will pay or is already paying, less
required margin if not already losing money - Answers -target cost
1|Page
,type of cost analysis: costs are allocated to categories and suppliers are asked to meet or beat
targets - Answers -target cost
type of cost analysis: used as the base for supplier negotiation and development - Answers -
should cost
type of cost analysis: various approaches to estimate - Answers -should cost
type of cost analysis: results are compared to suppliers' current practices to identify
opportunities for improvement - Answers -should cost
type of cost analysis: ask suppliers for a cost breakdown - Answers -supplier cost disclosure
type of cost analysis: should be used to identify areas for improvement - Answers -supplier cost
disclosure
type of cost analysis: suppliers fear it can be used to negotiate leaner margins - Answers -
supplier cost disclosure
2|Page
, all costs associated with the acquisition, use and maintenance of a good or service - Answers -
total cost of ownership
pre-transaction components of total cost of ownership - Answers -investigating sources
qualifying sources
training/education
transaction components of total cost of ownership - Answers -price
order placement
transportation
tariffs/duties
billing/payment
inspection
return of parts
follow-up and correction
post-transaction components of total cost of ownership - Answers -warranty issues
outbound logistics
person whom the action affects - Answers -principal
3|Page
