MBA 6205 Supply Chain - Chapter 1 & 2
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Supply Chain Management (SCM) - CORRECT ANSWER - Efforts to align goals, shares
resources, and collaborate across company boundaries are the essence of supply chain
management.
SCM Goal - - CORRECT ANSWER - SCM allows a company to do a few things very
well for which it has unique skills. Build a corporate "team" consisting of suppliers, finished
goods producers, service providers, and/or retailers.
Focal Firm - CORRECT ANSWER - The company that is depicting the relationships
among its suppliers and customers
Supply Chain Flow - CORRECT ANSWER - Purchased goods and services flow from
upstream suppliers, through the focal firm, to downstream customers. However, information
flows in both directions as supply chain members plan and coordinate their efforts.
Value Chain - CORRECT ANSWER - Interconnected nature of internal functions that has
responsibility for making decision that will determine how much value is created
Just-in-case inventory (Safety Stock) - CORRECT ANSWER - Kept on hand to
compensate for poor information sharing and possible transportation delays
Bullwhip Effect - CORRECT ANSWER - Says that demand variations are likely to be
exaggerated as decisions are made up the chain. The end result is that small changes in retail-
level demand get magnified as they ripple through the supply chain like a bullwhip
Internal process integration - CORRECT ANSWER - The goal is to increase collaboration
among the company's functional groups
UPDATED ACTUAL Exam Questions and
CORRECT Answers
Supply Chain Management (SCM) - CORRECT ANSWER - Efforts to align goals, shares
resources, and collaborate across company boundaries are the essence of supply chain
management.
SCM Goal - - CORRECT ANSWER - SCM allows a company to do a few things very
well for which it has unique skills. Build a corporate "team" consisting of suppliers, finished
goods producers, service providers, and/or retailers.
Focal Firm - CORRECT ANSWER - The company that is depicting the relationships
among its suppliers and customers
Supply Chain Flow - CORRECT ANSWER - Purchased goods and services flow from
upstream suppliers, through the focal firm, to downstream customers. However, information
flows in both directions as supply chain members plan and coordinate their efforts.
Value Chain - CORRECT ANSWER - Interconnected nature of internal functions that has
responsibility for making decision that will determine how much value is created
Just-in-case inventory (Safety Stock) - CORRECT ANSWER - Kept on hand to
compensate for poor information sharing and possible transportation delays
Bullwhip Effect - CORRECT ANSWER - Says that demand variations are likely to be
exaggerated as decisions are made up the chain. The end result is that small changes in retail-
level demand get magnified as they ripple through the supply chain like a bullwhip
Internal process integration - CORRECT ANSWER - The goal is to increase collaboration
among the company's functional groups
