SCMN 2150 TEST 1 Questions with Detailed
Verified Answers
What is a supply chain? Ans: A supply chain is the network of organizations, people,
activities, information, and resources that move a product from raw material
extraction → supplier → manufacturer → distributor → retailer → final consumer.
Supply Chain Management Ans: planning & managing sourcing, procurement,
conversion, and logistics + coordinating with partners (suppliers, 3PLs, customers).
Integrates supply & demand across companies.
Why SCM matters to companies Ans: manage material, product, and information
flows better, faster, cheaper than competitors → competitive advantage
What value does SCM provide? Ans: Time utility - get it when I want.
Place utility - get it where I want.
Form utility - get it how I want (tailored products).
"7 rights" (right product, place, time, etc.).
What are the essential activities in a supply chain? Ans: Plan, Buy (procurement), Make
(production), Move (logistics), Service (returns/support).
What are the challenges of SCM? Ans: coordination across partners, global
complexity, disruptions
Why is SCM important to customers? Ans: The customer is the most important
What are the three key flows of a supply chain? Ans: Product, Information, Money.
, What is the logistics network? Ans: integrated collection of orgs/people/resources,
linked by nodes & links.
What are nodes and links? Ans: Nodes = fixed points where value is added (plants,
DCs, retail stores).
Links = transportation & info connections (truck, train, ship, air, pipelines)
What are the benefits and challenges of a Centralized supply chain network? Ans:
Benefits: low inventory, visibility, economies of scale, lower labor/overhead.
Challenges: longer lead times, higher delivery costs, regional inefficiencies.
Example: L.L. Bean, pharmaceuticals.
What are the benefits and challenges of a Decentralized supply chain network? Ans:
Benefits: close to customers, shorter lead times, lower delivery cost, better
responsiveness.
Challenges: higher safety stock, higher overhead, less economies of scale.
Example: Kroger, Publix
What are the key takeaways of Network Design? Ans: Network design = strategic,
costly, long-term.
Must balance cost & service.
No single "best" design → often a hybrid.
What is supply chain planning? Ans: Forward-looking coordination of assets to balance
supply & demand
© Get it right 2025 Getaway - Stuvia US All rights reserved
Verified Answers
What is a supply chain? Ans: A supply chain is the network of organizations, people,
activities, information, and resources that move a product from raw material
extraction → supplier → manufacturer → distributor → retailer → final consumer.
Supply Chain Management Ans: planning & managing sourcing, procurement,
conversion, and logistics + coordinating with partners (suppliers, 3PLs, customers).
Integrates supply & demand across companies.
Why SCM matters to companies Ans: manage material, product, and information
flows better, faster, cheaper than competitors → competitive advantage
What value does SCM provide? Ans: Time utility - get it when I want.
Place utility - get it where I want.
Form utility - get it how I want (tailored products).
"7 rights" (right product, place, time, etc.).
What are the essential activities in a supply chain? Ans: Plan, Buy (procurement), Make
(production), Move (logistics), Service (returns/support).
What are the challenges of SCM? Ans: coordination across partners, global
complexity, disruptions
Why is SCM important to customers? Ans: The customer is the most important
What are the three key flows of a supply chain? Ans: Product, Information, Money.
, What is the logistics network? Ans: integrated collection of orgs/people/resources,
linked by nodes & links.
What are nodes and links? Ans: Nodes = fixed points where value is added (plants,
DCs, retail stores).
Links = transportation & info connections (truck, train, ship, air, pipelines)
What are the benefits and challenges of a Centralized supply chain network? Ans:
Benefits: low inventory, visibility, economies of scale, lower labor/overhead.
Challenges: longer lead times, higher delivery costs, regional inefficiencies.
Example: L.L. Bean, pharmaceuticals.
What are the benefits and challenges of a Decentralized supply chain network? Ans:
Benefits: close to customers, shorter lead times, lower delivery cost, better
responsiveness.
Challenges: higher safety stock, higher overhead, less economies of scale.
Example: Kroger, Publix
What are the key takeaways of Network Design? Ans: Network design = strategic,
costly, long-term.
Must balance cost & service.
No single "best" design → often a hybrid.
What is supply chain planning? Ans: Forward-looking coordination of assets to balance
supply & demand
© Get it right 2025 Getaway - Stuvia US All rights reserved
