SUPPLY CHAIN EXAM 1 QUESTIONS
AND ANSWERS
The most effective supply chain managers have the following traits to some degree or
other (probs dont need to know this) - POCCC - Correct Answers -- Excellent
communication skills, both oral and written
- Strong critical thinking skills
- Strong problem solving skills
- Excellent organizational skills
- Great customer service skills
Ethics definition - Correct Answers -the principles of conduct governing an individual or
a group
"Doing well over the long term requires more than bright people working hard. It
requires intuition, effort, determination, and flexibility, and few people have those
qualities in agreeable portions. Above all it requires ethics"
Importance of ethical behavior - Correct Answers -individuals and businesses develop
reputations based on their actions and decisions that they make
Once you develop a reputation for unethical behavior, others will be reluctant to trust
you or work with you
Without trust it is virtually impossible for you to succeed in the long run
What is Supply Chain? - Correct Answers -Another way of thinking about it is the chain
of supplies
That said, let's say we are getting into the beer business
What do we need to make beer? (probs dont need this) - Correct Answers -A. Hops
B. Water
C. Alcohol
D. Sodium Hydroxide
Brewery with 5 recipes - Correct Answers -- 25 different ingredients
- 5 different yeasts
- 15 different hops
- Multiple processes (different processing times)
- Different packing modes (bottles, cans, etc)
,PROCESS COMPLEXITY!!
supply chain is all about managing complexity
Supply Chain Considerations (MMM LRC) - Correct Answers -- Raw materials
- Customer preferences (variety, pricing, packaging)
- Managing demand variations
- Logistics costs (Trucking, shipping)
- Managing inventory
- Managing the production process
Process starts early and gets very complex; theres many things that you may think will
happen that don't actually happen
What is a Supply Chain? - Correct Answers -A supply chain is the network of all the
individuals, organizations, resources, activities, and technology involved in the creation
and sale of a product (or service), from the delivery of source materials from the
supplier to the manufacturer, through to its eventual delivery to the end user
- includes manufacturers, suppliers, transporters, warehouses, retailers, and customers
- Basically just all people involved in the fulfillment of the product
Supply Chain Within a Company - Correct Answers -- Supply chain includes all
functions involved in fulfilling a customer request
- Product development, sales marketing, operations, distribution, finance, customer
service
A supply chain consists of (on exam 1 review deck) - Correct Answers
-upstream/downstream has to do with where you are located in the model
Supply chain aims to (on exam 1 review deck) - Correct Answers -match supply and
demand, profitability for products and services
- balance supply and demand
A supply chain achieves (PPT SQC) (on exam 1 review deck) - Correct Answers -
everything needs to work just right
Detergent Supply Chain - Correct Answers -DC = distribution center
Cisco: Cisco built up its components inventory. What were they trying to do?
A. Plan for new growth
B. Get the lowest cost by bulk ordering
C. Reduce wait time - Correct Answers -C. Reduce wait time
- Reduce wait time for customers
- Create inventory reserves so manufacturers of Cisco products wouldn't run out
,Demand Patterns: Trend (on exam 1 review deck) - Correct Answers -Data consistently
increase or decrease over time
- increasing OR decreasing
Cisco: Why wasn't Cisco worried about this huge commit? - Correct Answers -Virtual
Close told them the demand would be there.
Functions of a Supply Chain (on exam 1 review deck) - Correct Answers -1. Market
Mediation
- Ensuring the variety of products reaching the marketplace matches what the customer
desires
2. Physical Function
- Transforming raw materials into finished goods and transportation between points in
the supply chain (and getting it into the hands of the consumer)
- dont confuse these with types of supply chain (physically efficient and market
responsiveness)
What is the value created by SCM? - Correct Answers -Minimizing supply chain costs
While keeping a reasonable service level
Ensuring customer satisfaction (quality, on time delivery, etc)
Growth in Technological Innovation - Correct Answers -Tech trying to improve the
supply chain
Flying Warehouse - Correct Answers -
Delivery Innovation - Correct Answers -ex. self driving pizza delivery car
Promise of RFID - Correct Answers -Storing info about a product on a tag/ keeping track
of what is where
Ex. drones that locate items and take inventory so things don't get lost
Innovation: Kiva Robot for Pickers - Correct Answers -Picks Amazon items for
packaging to minimize the workload on people
Artificial Intelligence in SCM (not memorizing this idk if I need to) - Correct Answers
-"What Needs to Be Improved in Supply Chains right now"/ how do we minimize these
things?:
- Hard to plan for demand
- Excessive safety stocks and bullwhip effect
- Supplier unreliability
, - Transport network unpredictability
- Demand by customers and partners for access to a "real person" (or a very good
imitation)
- Seeing the real bottom line impact of supply chain decisions
Supply Chain Decisions - Correct Answers -Focus of this course = learning how to
make decisions off of uncertain conditions
Big data and analytics in SCM (not really memorizing this either) - Correct Answers --
How do we get orders to customers most efficiently?
- Where should we make particular products?
- How many products should we make?
- Where should inventory be?
- From whom do we purchase raw materials?
- What's the most efficient transportation mode to use?
- What if demand increases x percent?
It's all about SC Decisions (not memorizing this either) - Correct Answers -- Facilities
location
- Transportation
- Demand forecasting
- Inventory management
- Aggregate planning
- SC Risk pooling
- SC Revenue management
- SC Integration
- SC Sourcing & contracting
- Sustainable SC's
There are countless different decisions you could make
Creating a supply chain: 2 costs - Correct Answers -There are two basic types of costs
a company incurs:
- Variable costs
- Fixed costs
Variable Costs - Correct Answers -are costs that change with changes in volume
- Costs of materials used in the production of the goods,
- Tons transported, number of trips, etc
Fixed Costs - Correct Answers -remain roughly the same regardless of volume levels.
- Examples include: Rent, Insurance and Wages, Set-up costs, etc.
Total Costs - Correct Answers -is simply Fixed Costs and Variable Costs added
together
AND ANSWERS
The most effective supply chain managers have the following traits to some degree or
other (probs dont need to know this) - POCCC - Correct Answers -- Excellent
communication skills, both oral and written
- Strong critical thinking skills
- Strong problem solving skills
- Excellent organizational skills
- Great customer service skills
Ethics definition - Correct Answers -the principles of conduct governing an individual or
a group
"Doing well over the long term requires more than bright people working hard. It
requires intuition, effort, determination, and flexibility, and few people have those
qualities in agreeable portions. Above all it requires ethics"
Importance of ethical behavior - Correct Answers -individuals and businesses develop
reputations based on their actions and decisions that they make
Once you develop a reputation for unethical behavior, others will be reluctant to trust
you or work with you
Without trust it is virtually impossible for you to succeed in the long run
What is Supply Chain? - Correct Answers -Another way of thinking about it is the chain
of supplies
That said, let's say we are getting into the beer business
What do we need to make beer? (probs dont need this) - Correct Answers -A. Hops
B. Water
C. Alcohol
D. Sodium Hydroxide
Brewery with 5 recipes - Correct Answers -- 25 different ingredients
- 5 different yeasts
- 15 different hops
- Multiple processes (different processing times)
- Different packing modes (bottles, cans, etc)
,PROCESS COMPLEXITY!!
supply chain is all about managing complexity
Supply Chain Considerations (MMM LRC) - Correct Answers -- Raw materials
- Customer preferences (variety, pricing, packaging)
- Managing demand variations
- Logistics costs (Trucking, shipping)
- Managing inventory
- Managing the production process
Process starts early and gets very complex; theres many things that you may think will
happen that don't actually happen
What is a Supply Chain? - Correct Answers -A supply chain is the network of all the
individuals, organizations, resources, activities, and technology involved in the creation
and sale of a product (or service), from the delivery of source materials from the
supplier to the manufacturer, through to its eventual delivery to the end user
- includes manufacturers, suppliers, transporters, warehouses, retailers, and customers
- Basically just all people involved in the fulfillment of the product
Supply Chain Within a Company - Correct Answers -- Supply chain includes all
functions involved in fulfilling a customer request
- Product development, sales marketing, operations, distribution, finance, customer
service
A supply chain consists of (on exam 1 review deck) - Correct Answers
-upstream/downstream has to do with where you are located in the model
Supply chain aims to (on exam 1 review deck) - Correct Answers -match supply and
demand, profitability for products and services
- balance supply and demand
A supply chain achieves (PPT SQC) (on exam 1 review deck) - Correct Answers -
everything needs to work just right
Detergent Supply Chain - Correct Answers -DC = distribution center
Cisco: Cisco built up its components inventory. What were they trying to do?
A. Plan for new growth
B. Get the lowest cost by bulk ordering
C. Reduce wait time - Correct Answers -C. Reduce wait time
- Reduce wait time for customers
- Create inventory reserves so manufacturers of Cisco products wouldn't run out
,Demand Patterns: Trend (on exam 1 review deck) - Correct Answers -Data consistently
increase or decrease over time
- increasing OR decreasing
Cisco: Why wasn't Cisco worried about this huge commit? - Correct Answers -Virtual
Close told them the demand would be there.
Functions of a Supply Chain (on exam 1 review deck) - Correct Answers -1. Market
Mediation
- Ensuring the variety of products reaching the marketplace matches what the customer
desires
2. Physical Function
- Transforming raw materials into finished goods and transportation between points in
the supply chain (and getting it into the hands of the consumer)
- dont confuse these with types of supply chain (physically efficient and market
responsiveness)
What is the value created by SCM? - Correct Answers -Minimizing supply chain costs
While keeping a reasonable service level
Ensuring customer satisfaction (quality, on time delivery, etc)
Growth in Technological Innovation - Correct Answers -Tech trying to improve the
supply chain
Flying Warehouse - Correct Answers -
Delivery Innovation - Correct Answers -ex. self driving pizza delivery car
Promise of RFID - Correct Answers -Storing info about a product on a tag/ keeping track
of what is where
Ex. drones that locate items and take inventory so things don't get lost
Innovation: Kiva Robot for Pickers - Correct Answers -Picks Amazon items for
packaging to minimize the workload on people
Artificial Intelligence in SCM (not memorizing this idk if I need to) - Correct Answers
-"What Needs to Be Improved in Supply Chains right now"/ how do we minimize these
things?:
- Hard to plan for demand
- Excessive safety stocks and bullwhip effect
- Supplier unreliability
, - Transport network unpredictability
- Demand by customers and partners for access to a "real person" (or a very good
imitation)
- Seeing the real bottom line impact of supply chain decisions
Supply Chain Decisions - Correct Answers -Focus of this course = learning how to
make decisions off of uncertain conditions
Big data and analytics in SCM (not really memorizing this either) - Correct Answers --
How do we get orders to customers most efficiently?
- Where should we make particular products?
- How many products should we make?
- Where should inventory be?
- From whom do we purchase raw materials?
- What's the most efficient transportation mode to use?
- What if demand increases x percent?
It's all about SC Decisions (not memorizing this either) - Correct Answers -- Facilities
location
- Transportation
- Demand forecasting
- Inventory management
- Aggregate planning
- SC Risk pooling
- SC Revenue management
- SC Integration
- SC Sourcing & contracting
- Sustainable SC's
There are countless different decisions you could make
Creating a supply chain: 2 costs - Correct Answers -There are two basic types of costs
a company incurs:
- Variable costs
- Fixed costs
Variable Costs - Correct Answers -are costs that change with changes in volume
- Costs of materials used in the production of the goods,
- Tons transported, number of trips, etc
Fixed Costs - Correct Answers -remain roughly the same regardless of volume levels.
- Examples include: Rent, Insurance and Wages, Set-up costs, etc.
Total Costs - Correct Answers -is simply Fixed Costs and Variable Costs added
together
