SCMN 2150 EXAM QUESTIONS AND
ANSWERS
=What is SCM and why is it important? - ANSWER>>managing the flow of
information, products, and services across a network of customers, enterprises,
and suppliers
SCM is important to maintain and improve the efficiency of a company
Who are the key participants and the primary processes in a supply chain? -
ANSWER>>- Suppliers
- Manufacturers
- Distributors
- Retailers
- Consumers (most important)
What are the goals of SCM? - ANSWER>>helps companies outpace the
competition by managing their materials, product, and information flows (better,
faster, cheaper)
How can organizations build competitive advantage via SCM? -
ANSWER>>Develop relationships, improve customer satisfaction, rationalize
product touch points, drive out costs and achieve efficiencies
Understand the differences between: Centralized and decentralized networks. -
ANSWER>>Centralized network :One factory that distributes nationally
Decentralized network:
Many smaller factories all over the country
Compare and contrast: Direct distribution, cross docks, and distribution centers. -
ANSWER>>Direct delivery - Package is delivered directly from the warehouse to
your house
, Cross Docks- Is made in a factory and put in a grocery store for quick purchase
and consumption
Distribution Centers- Warehouse makes the product and stores it in a distribution
center until it is purchased
the steps in a network configuration process. - ANSWER>>1. determine problem
and model
2. collect and validate data
3. develop and model scenarios
4. evaluate scenario results
5. take strategic action
why companies spend so much time and effort on supply chain planning -
ANSWER>>being proactive builds capabilities, capacity, and control in advance of
needs resulting in stabilized processes and limited excess capacity & inventory
What is capacity planning and why do companies engage in it? - ANSWER>>-the
process of establishing the output rate that can be achieved
-it impacts their ability to meet demand, influences operating costs, and affects
competitiveness
What are the two major categories of forecasting and when they are best used. -
ANSWER>>1) qualitative methods - expert judgement; best used for a new
product with no past history
2) quantitative methods - numbers and technology; best used for products with
historical data
What is S&OP? Why are companies focusing on it and what are they trying to
accomplish? - ANSWER>>a cross-functional planning process that reconciles
conflicting business plans, links strategic planning and operational planning, and
aligns company resources to create and leverage a single plan; organized common
sense
ANSWERS
=What is SCM and why is it important? - ANSWER>>managing the flow of
information, products, and services across a network of customers, enterprises,
and suppliers
SCM is important to maintain and improve the efficiency of a company
Who are the key participants and the primary processes in a supply chain? -
ANSWER>>- Suppliers
- Manufacturers
- Distributors
- Retailers
- Consumers (most important)
What are the goals of SCM? - ANSWER>>helps companies outpace the
competition by managing their materials, product, and information flows (better,
faster, cheaper)
How can organizations build competitive advantage via SCM? -
ANSWER>>Develop relationships, improve customer satisfaction, rationalize
product touch points, drive out costs and achieve efficiencies
Understand the differences between: Centralized and decentralized networks. -
ANSWER>>Centralized network :One factory that distributes nationally
Decentralized network:
Many smaller factories all over the country
Compare and contrast: Direct distribution, cross docks, and distribution centers. -
ANSWER>>Direct delivery - Package is delivered directly from the warehouse to
your house
, Cross Docks- Is made in a factory and put in a grocery store for quick purchase
and consumption
Distribution Centers- Warehouse makes the product and stores it in a distribution
center until it is purchased
the steps in a network configuration process. - ANSWER>>1. determine problem
and model
2. collect and validate data
3. develop and model scenarios
4. evaluate scenario results
5. take strategic action
why companies spend so much time and effort on supply chain planning -
ANSWER>>being proactive builds capabilities, capacity, and control in advance of
needs resulting in stabilized processes and limited excess capacity & inventory
What is capacity planning and why do companies engage in it? - ANSWER>>-the
process of establishing the output rate that can be achieved
-it impacts their ability to meet demand, influences operating costs, and affects
competitiveness
What are the two major categories of forecasting and when they are best used. -
ANSWER>>1) qualitative methods - expert judgement; best used for a new
product with no past history
2) quantitative methods - numbers and technology; best used for products with
historical data
What is S&OP? Why are companies focusing on it and what are they trying to
accomplish? - ANSWER>>a cross-functional planning process that reconciles
conflicting business plans, links strategic planning and operational planning, and
aligns company resources to create and leverage a single plan; organized common
sense
