GSCM EXAM 1 QUESTIONS AND ANSWERS
Supply Chain Management (SCM) - CORRECT ANSWER✅✅The integration of key business processes
from end user through original suppliers that provides products, services, and information that add
value for customers and other stakeholders.
Eight Key Business Processes - CORRECT ANSWER✅✅CRM, CSM, DM, OF, MFM, SRM, PD&C, RM
Returns Management (RM) - CORRECT ANSWER✅✅Includes all activities related to returns, reverse
logistics, gatekeeping, & avoidance.
Product Development and Commercialization (PD&C) - CORRECT ANSWER✅✅Provides the structure for
developing and bringing to market new products jointly with customers and suppliers.
Supplier Relationship Management (SRM) - CORRECT ANSWER✅✅Provides the structure for how
relationships with suppliers are developed & maintained, including the PSAs between the firm & its
suppliers.
Manufacturing Flow Management (MFM) - CORRECT ANSWER✅✅Includes all activities necessary to
move products through the plants & to obtain & manage manufacturing flexibility in the supply chain.
Order Fulfillment (OF) - CORRECT ANSWER✅✅Includes all activities necessary to define customer
requirements, design the logistics network, and fill customer orders.
Demand Management (DM) - CORRECT ANSWER✅✅Provides the structure for balancing the
customers' requirements with supply chain capabilities.
Customer Service Management (CSM) - CORRECT ANSWER✅✅Provides the firm's face to the customer,
including management of the PSAs, and provides a single source of customer information.
Customer Relationship Management (CRM) - CORRECT ANSWER✅✅Provides the structure for how
relationships with customers are developed & maintained, including the PSAs between the firm & its
customers.
,What functions are involved in managing a single company? - CORRECT ANSWER✅✅Marketing,
logistics, R&D, finance, production, purchasing, etc.
Cross-Functional SCM - CORRECT ANSWER✅✅All functional areas in the firm will be involved in
managing the supply chain.
The Elements of the Supply Chain Management Framework - CORRECT ANSWER✅✅1. Supply Chain
Business Processes
2. Supply Chain Network Structure
3. Supply Chain Management Components
Managed Links - CORRECT ANSWER✅✅Links that the focal company finds important to integrate and
manage.
Monitored Links - CORRECT ANSWER✅✅Links that are not as critical to the focal company, but they
should be integrated and managed between the other members of the supply chain.
Not Managed Links - CORRECT ANSWER✅✅Links that the focal company is not actively involved in
managing, nor are they critical enough to use resources for monitoring.
Non-Member Links - CORRECT ANSWER✅✅Links that are not part of the focal company's supply chain
structure, but they can and often will affect the performance of the focal company and its supply chain.
The Work Structure - CORRECT ANSWER✅✅Indicates how the firm performs its tasks and activities.
Level of integration of processes across the supply chain - CORRECT ANSWER✅✅A measure of
organizational structure.
Organizational Structure - CORRECT ANSWER✅✅The individual firm and the supply chain
, Product Flow Structure - CORRECT ANSWER✅✅The network structure for sourcing, manufacturing, and
distribution across the supply chain.
Planning and control of operations - CORRECT ANSWER✅✅Keys to moving an organization or supply
chain in a desired direction.
Management Methods - CORRECT ANSWER✅✅Corporate philosophy and management techniques.
CRM Goal - CORRECT ANSWER✅✅Increase customer loyalty by providing customized products and
services, as appropriate.
CRM - CORRECT ANSWER✅✅It provides the critical link with the customers in the supply chain.
The Strategic CRM Process - CORRECT ANSWER✅✅1. Review Corporate and Marketing Strategy
2. Identify Criteria for Categorizing Customers
3. Provide Guidelines for the Degree of Differentiation in the Product/Service Agreement
4. Develop Framework of Metrics
5. Develop Guidelines for Sharing Process Improvement Benefits with Customers
Review Corporate and Marketing Strategy - CORRECT ANSWER✅✅Identify customer segments that are
key to the organization's success now and in the future
Identify Criteria for Categorizing Customers - CORRECT ANSWER✅✅Profitability
Growth
Volume
Competitive positioning
Market knowledge
Market share goals/ penetration
Margin
Technology
Supply Chain Management (SCM) - CORRECT ANSWER✅✅The integration of key business processes
from end user through original suppliers that provides products, services, and information that add
value for customers and other stakeholders.
Eight Key Business Processes - CORRECT ANSWER✅✅CRM, CSM, DM, OF, MFM, SRM, PD&C, RM
Returns Management (RM) - CORRECT ANSWER✅✅Includes all activities related to returns, reverse
logistics, gatekeeping, & avoidance.
Product Development and Commercialization (PD&C) - CORRECT ANSWER✅✅Provides the structure for
developing and bringing to market new products jointly with customers and suppliers.
Supplier Relationship Management (SRM) - CORRECT ANSWER✅✅Provides the structure for how
relationships with suppliers are developed & maintained, including the PSAs between the firm & its
suppliers.
Manufacturing Flow Management (MFM) - CORRECT ANSWER✅✅Includes all activities necessary to
move products through the plants & to obtain & manage manufacturing flexibility in the supply chain.
Order Fulfillment (OF) - CORRECT ANSWER✅✅Includes all activities necessary to define customer
requirements, design the logistics network, and fill customer orders.
Demand Management (DM) - CORRECT ANSWER✅✅Provides the structure for balancing the
customers' requirements with supply chain capabilities.
Customer Service Management (CSM) - CORRECT ANSWER✅✅Provides the firm's face to the customer,
including management of the PSAs, and provides a single source of customer information.
Customer Relationship Management (CRM) - CORRECT ANSWER✅✅Provides the structure for how
relationships with customers are developed & maintained, including the PSAs between the firm & its
customers.
,What functions are involved in managing a single company? - CORRECT ANSWER✅✅Marketing,
logistics, R&D, finance, production, purchasing, etc.
Cross-Functional SCM - CORRECT ANSWER✅✅All functional areas in the firm will be involved in
managing the supply chain.
The Elements of the Supply Chain Management Framework - CORRECT ANSWER✅✅1. Supply Chain
Business Processes
2. Supply Chain Network Structure
3. Supply Chain Management Components
Managed Links - CORRECT ANSWER✅✅Links that the focal company finds important to integrate and
manage.
Monitored Links - CORRECT ANSWER✅✅Links that are not as critical to the focal company, but they
should be integrated and managed between the other members of the supply chain.
Not Managed Links - CORRECT ANSWER✅✅Links that the focal company is not actively involved in
managing, nor are they critical enough to use resources for monitoring.
Non-Member Links - CORRECT ANSWER✅✅Links that are not part of the focal company's supply chain
structure, but they can and often will affect the performance of the focal company and its supply chain.
The Work Structure - CORRECT ANSWER✅✅Indicates how the firm performs its tasks and activities.
Level of integration of processes across the supply chain - CORRECT ANSWER✅✅A measure of
organizational structure.
Organizational Structure - CORRECT ANSWER✅✅The individual firm and the supply chain
, Product Flow Structure - CORRECT ANSWER✅✅The network structure for sourcing, manufacturing, and
distribution across the supply chain.
Planning and control of operations - CORRECT ANSWER✅✅Keys to moving an organization or supply
chain in a desired direction.
Management Methods - CORRECT ANSWER✅✅Corporate philosophy and management techniques.
CRM Goal - CORRECT ANSWER✅✅Increase customer loyalty by providing customized products and
services, as appropriate.
CRM - CORRECT ANSWER✅✅It provides the critical link with the customers in the supply chain.
The Strategic CRM Process - CORRECT ANSWER✅✅1. Review Corporate and Marketing Strategy
2. Identify Criteria for Categorizing Customers
3. Provide Guidelines for the Degree of Differentiation in the Product/Service Agreement
4. Develop Framework of Metrics
5. Develop Guidelines for Sharing Process Improvement Benefits with Customers
Review Corporate and Marketing Strategy - CORRECT ANSWER✅✅Identify customer segments that are
key to the organization's success now and in the future
Identify Criteria for Categorizing Customers - CORRECT ANSWER✅✅Profitability
Growth
Volume
Competitive positioning
Market knowledge
Market share goals/ penetration
Margin
Technology
