SCMN TEST 3 QUESTIONS
WITH CORRECT
ANSWERS (GRADED A+)
How is global SCM different from domestic SCM? - Answer-Global SCM focuses on
planning, implementing, and controlling the cross-border flows of materials, money and
information between companies in different countries.
T/F With increased global competition and pressure to reduce costs, become more
competitive and innovative, many companies are turning to off-shore, and near shore
based outsourcing vendors. - Answer-True
T/F You do not need to evaluate and analyze the rewards and risks of global sourcing,
outsourcing, and vendor management. - Answer-False
What do "landed costs" include? - Answer-per-unit cost of a product, freight, taxes,
import and export duties, insurance, payment processing and handling fees, exchange
rates and storage fees
What is the purpose of global sourcing? - Answer-Lowering supply chain costs
What risks must be considered for global sourcing? - Answer-Lead time, Expenses,
Damage, and Theft, Visibility
What are the drivers of global production? - Answer-1. Access to lower wage rates
2. Access to customers in emerging markets
3. Reduction in transport and communication costs
4. Reduction in trade barriers
5. Availability of resources
6. Diversification to mitigate risks
T/F Successful global sourcing requires that a companyanalyze the pros and cons of
going international,following a logical sourcing process, and establishingcross-border
capabilities. - Answer-True
, What are your global production alternatives in managing risk, investment and control? -
Answer-1. Damage Protection- Proper packaging, international markings, waterproofing
2. Limit Theft Opportunities- Avoid high risk routes, congested ports, unknown carriers,
and blatant marketing on cartons
3. Manage Financial Risk- Use appropriate INCOTERMS and purchase insurance,
otherwise you are at high risk and must self-insure
Know how to calculate an Exchange rate. - Answer-Given totals.
What are INCOTERMS? - Answer-International Commercial Terms
Created by International Chamber of Commerce
What do INCOTERMS do for organizations? - Answer-Specify risks and responsibilities
for international transport
What are key supply chain data requirements? - Answer-1. Accurate
2. Accesible
3. Relevant
4. Timely
5. Transferable
6. Reliable
7. usable
Automatic Identification System (AIS) - Answer-methods of automatically identifying
objects, collecting data about them, and entering that data directly into computer
systems (i.e. without human involvement). Technologies include bar codes, Radio
Frequency Identification (RFID), biometrics, magnetic stripes, Optical Character
Recognition (OCR), smart cards, and voice recognition.
Customer Relationship Management (CRM) - Answer-system for managing a
company's interactions with current and future customers. It often involves using
technology to organize, automate, and synchronize sales, marketing, customer service,
and technical support.
Supplier Relationship Management (SRM) - Answer-software enables businesses to
manage the relationship between buyers and suppliers. Procurement personnel use
SRM software to define replenishment strategies, manage contracts, evaluate supplier
performance, and establish strategic sourcing relationships. Event management tools
such as alerts and notifications help minimize inventory stock-outs and stockpiles.
Enterprise Resource Planning (ERP) - Answer-business process management software
that allows an organization to use a system of integrated applications to manage the
business and automate many back office functions related to technology, services and
human resources.
WITH CORRECT
ANSWERS (GRADED A+)
How is global SCM different from domestic SCM? - Answer-Global SCM focuses on
planning, implementing, and controlling the cross-border flows of materials, money and
information between companies in different countries.
T/F With increased global competition and pressure to reduce costs, become more
competitive and innovative, many companies are turning to off-shore, and near shore
based outsourcing vendors. - Answer-True
T/F You do not need to evaluate and analyze the rewards and risks of global sourcing,
outsourcing, and vendor management. - Answer-False
What do "landed costs" include? - Answer-per-unit cost of a product, freight, taxes,
import and export duties, insurance, payment processing and handling fees, exchange
rates and storage fees
What is the purpose of global sourcing? - Answer-Lowering supply chain costs
What risks must be considered for global sourcing? - Answer-Lead time, Expenses,
Damage, and Theft, Visibility
What are the drivers of global production? - Answer-1. Access to lower wage rates
2. Access to customers in emerging markets
3. Reduction in transport and communication costs
4. Reduction in trade barriers
5. Availability of resources
6. Diversification to mitigate risks
T/F Successful global sourcing requires that a companyanalyze the pros and cons of
going international,following a logical sourcing process, and establishingcross-border
capabilities. - Answer-True
, What are your global production alternatives in managing risk, investment and control? -
Answer-1. Damage Protection- Proper packaging, international markings, waterproofing
2. Limit Theft Opportunities- Avoid high risk routes, congested ports, unknown carriers,
and blatant marketing on cartons
3. Manage Financial Risk- Use appropriate INCOTERMS and purchase insurance,
otherwise you are at high risk and must self-insure
Know how to calculate an Exchange rate. - Answer-Given totals.
What are INCOTERMS? - Answer-International Commercial Terms
Created by International Chamber of Commerce
What do INCOTERMS do for organizations? - Answer-Specify risks and responsibilities
for international transport
What are key supply chain data requirements? - Answer-1. Accurate
2. Accesible
3. Relevant
4. Timely
5. Transferable
6. Reliable
7. usable
Automatic Identification System (AIS) - Answer-methods of automatically identifying
objects, collecting data about them, and entering that data directly into computer
systems (i.e. without human involvement). Technologies include bar codes, Radio
Frequency Identification (RFID), biometrics, magnetic stripes, Optical Character
Recognition (OCR), smart cards, and voice recognition.
Customer Relationship Management (CRM) - Answer-system for managing a
company's interactions with current and future customers. It often involves using
technology to organize, automate, and synchronize sales, marketing, customer service,
and technical support.
Supplier Relationship Management (SRM) - Answer-software enables businesses to
manage the relationship between buyers and suppliers. Procurement personnel use
SRM software to define replenishment strategies, manage contracts, evaluate supplier
performance, and establish strategic sourcing relationships. Event management tools
such as alerts and notifications help minimize inventory stock-outs and stockpiles.
Enterprise Resource Planning (ERP) - Answer-business process management software
that allows an organization to use a system of integrated applications to manage the
business and automate many back office functions related to technology, services and
human resources.
