SCMN 3730 CORE EXAM 2026 TEST QUESTIONS AND
SOLUTIONS SCORED A+
✔✔highly consequential - ✔✔when the cost of lawful adherence to an exchange
relationship is greater than the benefits of adherence so parties are incentivized to leave
relationship
✔✔incentives - ✔✔economic incentives to compel exchange
✔✔administrative control - ✔✔ability to compel cooperation without additional need for
incentives.
✔✔adaptation - ✔✔the ability to change in response to disturbances
✔✔contract law - ✔✔the need for formal enforcement of contracts to maintain exchange
relationships
✔✔asset specificity - ✔✔The degree to which an asset can be redeveloped for other
purposes, comes in six forms
✔✔six forms of asset specificity - ✔✔-site
-physical
-human
-brand name capital
-dedicated assets
- temporal
✔✔market - ✔✔purchase of the product in a free market.
-highly adaptive and requires incentives and contract enforcement
✔✔hybrid - ✔✔a combination of market and hierarchy
-contains +/- from both other systems
✔✔hieracrhy - ✔✔vertical integration to control the supply chain
-highly cooperative and ideal for high asset specificity
✔✔dangers of giving supply management to 1st tier suppliers - ✔✔less control and
visibility
✔✔how to decide to have tier 1 suppliers or not - ✔✔consider retaining control of items
with the greatest impact on total costs
see their innovation or information potential
, consider social or environmental impacts
✔✔pestle - ✔✔Political, Economic, Social, Technological, Legal, Environmental
✔✔SWOT - ✔✔strengths, weaknesses, opportunities, threats
✔✔stakeholders - ✔✔know your stakeholders
✔✔5 forces - ✔✔1. threat of entry
2. power of suppliers
3. power of buyers
4. threat of substitutes
5. rivalry among existing competitors
✔✔process mapping and analysis - ✔✔how to achieve our goals
✔✔supply chain match - ✔✔
✔✔Value is managing the supply chain in an - ✔✔intergrated manner to achive
customer satisfaction at the lowest total cost
✔✔efficient vs responsive on choosing suppliers - ✔✔physically efficient - lean
focused on cost and quality
market responsiveness- agile
focused on speed, flexibility and quality
✔✔Manufacturing postponement - ✔✔-one order at a time
-builds model product
-can build ready to customized product
-requires a lot of forethought
✔✔Geographic postponement - ✔✔-Build or stock a full-line inventory at one or a few
strategic locations
-Advantages are manufacturing economies of scale along with responsiveness to
customer
-Often used for critical, high cost parts and assemblies (e.g. engines)
✔✔Combined Postponement - ✔✔Keeping the basic products centralized and
performing the customization at the destination distributor
SOLUTIONS SCORED A+
✔✔highly consequential - ✔✔when the cost of lawful adherence to an exchange
relationship is greater than the benefits of adherence so parties are incentivized to leave
relationship
✔✔incentives - ✔✔economic incentives to compel exchange
✔✔administrative control - ✔✔ability to compel cooperation without additional need for
incentives.
✔✔adaptation - ✔✔the ability to change in response to disturbances
✔✔contract law - ✔✔the need for formal enforcement of contracts to maintain exchange
relationships
✔✔asset specificity - ✔✔The degree to which an asset can be redeveloped for other
purposes, comes in six forms
✔✔six forms of asset specificity - ✔✔-site
-physical
-human
-brand name capital
-dedicated assets
- temporal
✔✔market - ✔✔purchase of the product in a free market.
-highly adaptive and requires incentives and contract enforcement
✔✔hybrid - ✔✔a combination of market and hierarchy
-contains +/- from both other systems
✔✔hieracrhy - ✔✔vertical integration to control the supply chain
-highly cooperative and ideal for high asset specificity
✔✔dangers of giving supply management to 1st tier suppliers - ✔✔less control and
visibility
✔✔how to decide to have tier 1 suppliers or not - ✔✔consider retaining control of items
with the greatest impact on total costs
see their innovation or information potential
, consider social or environmental impacts
✔✔pestle - ✔✔Political, Economic, Social, Technological, Legal, Environmental
✔✔SWOT - ✔✔strengths, weaknesses, opportunities, threats
✔✔stakeholders - ✔✔know your stakeholders
✔✔5 forces - ✔✔1. threat of entry
2. power of suppliers
3. power of buyers
4. threat of substitutes
5. rivalry among existing competitors
✔✔process mapping and analysis - ✔✔how to achieve our goals
✔✔supply chain match - ✔✔
✔✔Value is managing the supply chain in an - ✔✔intergrated manner to achive
customer satisfaction at the lowest total cost
✔✔efficient vs responsive on choosing suppliers - ✔✔physically efficient - lean
focused on cost and quality
market responsiveness- agile
focused on speed, flexibility and quality
✔✔Manufacturing postponement - ✔✔-one order at a time
-builds model product
-can build ready to customized product
-requires a lot of forethought
✔✔Geographic postponement - ✔✔-Build or stock a full-line inventory at one or a few
strategic locations
-Advantages are manufacturing economies of scale along with responsiveness to
customer
-Often used for critical, high cost parts and assemblies (e.g. engines)
✔✔Combined Postponement - ✔✔Keeping the basic products centralized and
performing the customization at the destination distributor
