OPERATIONS AND SUPPLY CHAIN
MANAGEMENT 2026 FINAL REVIEW EXAM
◉ Supply Chain Operations Reference (SCOR) Model. Answer: A
model developed by the Supply Chain Council (SCC) to divide all
supply chain activities into five groups: plan, source, make (how a
product will be made, in what quantities, and where), deliver
(through each supply chain stage), and return (such as warranty
costs, repairs, customer satisfaction, disposal, etc.); SCOR is used as
a framework in development supply chain performance
management systems.
◉ Cash-to-Cash Cycle. Answer: The time between when a company
owes money to suppliers when it receives money from customers.
◉ Days of Supply (DoS). Answer: Finished Goods Inventory /
Average Sales per Day; when there are more sales, DoS will decrease,
and vice versa.
◉ Virtual Corporation. Answer: Companies that exist as an
administrative shell that outsources all other functions.
◉ Primary Constraints in a System. Answer: Market (demand),
process (throughput), and product (supply).
,◉ Constraint. Answer: When a resource's capacity to less than or
equal to demand for that resource.
◉ Bottleneck. Answer: The most limiting constraint on the system,
whereby requiring the longest time or slowest rate.
◉ Process Bottleneck. Answer: Occurs when the production
process's capacity, flexibility, or activities is its own biggest
limitation.
◉ Physical Bottleneck. Answer: Caused by under-investment, under-
utilization, weather, road construction, physical location, or
geographical limits.
◉ Product Bottleneck. Answer: When there are insufficient
materials to make a product.
◉ Throughout. Answer: The rate of flow; the process that allows the
supply chain to flow.
◉ Supplier Development. Answer: The practice of helping suppliers
improve their production capabilities.
, ◉ Strategic Alliances. Answer: A partnership with mutual benefits
that can be realized through supply chain collaboration so that there
is more time to focus on core competencies.
◉ Cross-Docking. Answer: The logistical practice of unloading
materials from one truck and loading them into another vehicle with
minimal storage in between.
◉ Third-Party Logistics (3PL). Answer: Outsourcing logistics to
third-parties.
◉ Radio-Frequency Identification. Answer: Using electromagnetic
fields to identify and track tags attached to objects.
◉ Capacity. Answer: A measure of an organization's ability to
provide customers with goods in the amount requested and in a
timely manner, given current resources; the maximum sustainable
rate of production.
◉ Capacity Planning. Answer: Planning an organization's ability to
deliver at capacity; significant capital is usually involved to build
facilities and purchase equipment; require careful consideration of
long-term objectives, current demand, and long-term demand.
MANAGEMENT 2026 FINAL REVIEW EXAM
◉ Supply Chain Operations Reference (SCOR) Model. Answer: A
model developed by the Supply Chain Council (SCC) to divide all
supply chain activities into five groups: plan, source, make (how a
product will be made, in what quantities, and where), deliver
(through each supply chain stage), and return (such as warranty
costs, repairs, customer satisfaction, disposal, etc.); SCOR is used as
a framework in development supply chain performance
management systems.
◉ Cash-to-Cash Cycle. Answer: The time between when a company
owes money to suppliers when it receives money from customers.
◉ Days of Supply (DoS). Answer: Finished Goods Inventory /
Average Sales per Day; when there are more sales, DoS will decrease,
and vice versa.
◉ Virtual Corporation. Answer: Companies that exist as an
administrative shell that outsources all other functions.
◉ Primary Constraints in a System. Answer: Market (demand),
process (throughput), and product (supply).
,◉ Constraint. Answer: When a resource's capacity to less than or
equal to demand for that resource.
◉ Bottleneck. Answer: The most limiting constraint on the system,
whereby requiring the longest time or slowest rate.
◉ Process Bottleneck. Answer: Occurs when the production
process's capacity, flexibility, or activities is its own biggest
limitation.
◉ Physical Bottleneck. Answer: Caused by under-investment, under-
utilization, weather, road construction, physical location, or
geographical limits.
◉ Product Bottleneck. Answer: When there are insufficient
materials to make a product.
◉ Throughout. Answer: The rate of flow; the process that allows the
supply chain to flow.
◉ Supplier Development. Answer: The practice of helping suppliers
improve their production capabilities.
, ◉ Strategic Alliances. Answer: A partnership with mutual benefits
that can be realized through supply chain collaboration so that there
is more time to focus on core competencies.
◉ Cross-Docking. Answer: The logistical practice of unloading
materials from one truck and loading them into another vehicle with
minimal storage in between.
◉ Third-Party Logistics (3PL). Answer: Outsourcing logistics to
third-parties.
◉ Radio-Frequency Identification. Answer: Using electromagnetic
fields to identify and track tags attached to objects.
◉ Capacity. Answer: A measure of an organization's ability to
provide customers with goods in the amount requested and in a
timely manner, given current resources; the maximum sustainable
rate of production.
◉ Capacity Planning. Answer: Planning an organization's ability to
deliver at capacity; significant capital is usually involved to build
facilities and purchase equipment; require careful consideration of
long-term objectives, current demand, and long-term demand.
