SCMN 3710 Exam 1 Study Guide, Practice Questions and Complete Review 2026
What external change drivers have had the most impact on the development of global supply
chains in the 21st century? - ✔✔Technology
Describe the evolution from the physical distribution concept of the 1960s to the integrated
logistics concept of the 1980s to the supply chain concept of today. - ✔✔Supply chains are
extended enterprises which require managing four flows- products, information, financials
(cash), & demand on a collaborative basis.
What is meant by extended enterprise? - ✔✔A loosely coupled, self-organizing network of
firms that combine their economic output to provide products & services offerings to the
market.
What are the 3 two-ways supply chain flows (not demand)? - ✔✔- Production/Service Flow
- Information Flow
- Finance/Cash Flow
Which retailer was #1 in sales in 2018 (as well as 2000 & 2010)? - ✔✔Walmart
Explain how absolute advantage & comparative advantage provide a rationale for global trade. -
✔✔- Absolute Advantage: Lower cost &/or access to items not available locally.
- Comparative Advantage: Differences in the cost of producing products in different countries.
What is the most populous country in the world & which one is expected to be the most
populous by 2050? - ✔✔China & then India
What is a megacity? - ✔✔A very large city, typically one with over a population of over 10
million people.
,What % of the world's population is projected to be living in urban areas by 2030? - ✔✔60%
What is the USA's trade deficit overall & how much of it is with China? - ✔✔The US goods &
services trade deficit with China was $335.4 billion in 2017. China is currently our largest goods
trading partner with $635.4 billion in total (two way) goods trade during 2017. Goods exports
totaled $129.9 billion; goods imports totaled $505.5 billion.
Which countries are the top US trading partners from both an import & export perspective? -
✔✔- China
- Canada
- Mexico
Explain the balancing act of maintaining security without shutting down global trade flows in
the face of the risk of terrorism. - ✔✔Not every import/export can be checked for harmful
materials, random sampling checks are made in order to maintain security, without shutting
down trade flows.
What is NAFTA, and what is its current state? - ✔✔North America Free Trade Agreement;
Established free trade among Canada, Mexico, & United States. NAFTA's goals involve making
structural changes to operate a borderless logistics network in North America. It is still in place
today.
What is the definition of logistics from a business perspective and how does this fit into the
supply chain concept? - ✔✔Business Logistics: Part of the supply chain that plans, implements,
& controls the flow & storage of goods, services, & related information.
What are the utilities of time, place, quantity, form, & possession, & how do they fit with
logistics, manufacturing, & marketing? - ✔✔- Production/Manufacturing activities credited
with providing form utility.
- Logistics activities credited with time. place, & quantity utilities.
, - Marketing activities credited with possession utility.
What is the magnitude of logistics spending in the US, & how much of it is for transportation? -
✔✔1,449 billion & 702 billion is spent on transportation
What level are logistics costs relative to GDP? - ✔✔8-10% of GDP
Explain the interface of logistics with Manufacturing: - ✔✔- Length of production run
- Available quantity of raw material & component
- Industrial packaging
Explain the interface of logistics with Marketing: - ✔✔- Price
- Product
- Promotion
- Place
Explain the interface of logistics with Accounting: - ✔✔- Cost information for analysis of
alternative logistics operations
- Supply chain tradeoffs & performance measurement
Explain the interface of logistics with Finance: - ✔✔- Inventory
- Warehouses & transportation fleet owned &/or outsourced
- Customer service
Explain the Inventory Effect: - ✔✔Increasing inventory costs can reduce the cost of lost sales
What external change drivers have had the most impact on the development of global supply
chains in the 21st century? - ✔✔Technology
Describe the evolution from the physical distribution concept of the 1960s to the integrated
logistics concept of the 1980s to the supply chain concept of today. - ✔✔Supply chains are
extended enterprises which require managing four flows- products, information, financials
(cash), & demand on a collaborative basis.
What is meant by extended enterprise? - ✔✔A loosely coupled, self-organizing network of
firms that combine their economic output to provide products & services offerings to the
market.
What are the 3 two-ways supply chain flows (not demand)? - ✔✔- Production/Service Flow
- Information Flow
- Finance/Cash Flow
Which retailer was #1 in sales in 2018 (as well as 2000 & 2010)? - ✔✔Walmart
Explain how absolute advantage & comparative advantage provide a rationale for global trade. -
✔✔- Absolute Advantage: Lower cost &/or access to items not available locally.
- Comparative Advantage: Differences in the cost of producing products in different countries.
What is the most populous country in the world & which one is expected to be the most
populous by 2050? - ✔✔China & then India
What is a megacity? - ✔✔A very large city, typically one with over a population of over 10
million people.
,What % of the world's population is projected to be living in urban areas by 2030? - ✔✔60%
What is the USA's trade deficit overall & how much of it is with China? - ✔✔The US goods &
services trade deficit with China was $335.4 billion in 2017. China is currently our largest goods
trading partner with $635.4 billion in total (two way) goods trade during 2017. Goods exports
totaled $129.9 billion; goods imports totaled $505.5 billion.
Which countries are the top US trading partners from both an import & export perspective? -
✔✔- China
- Canada
- Mexico
Explain the balancing act of maintaining security without shutting down global trade flows in
the face of the risk of terrorism. - ✔✔Not every import/export can be checked for harmful
materials, random sampling checks are made in order to maintain security, without shutting
down trade flows.
What is NAFTA, and what is its current state? - ✔✔North America Free Trade Agreement;
Established free trade among Canada, Mexico, & United States. NAFTA's goals involve making
structural changes to operate a borderless logistics network in North America. It is still in place
today.
What is the definition of logistics from a business perspective and how does this fit into the
supply chain concept? - ✔✔Business Logistics: Part of the supply chain that plans, implements,
& controls the flow & storage of goods, services, & related information.
What are the utilities of time, place, quantity, form, & possession, & how do they fit with
logistics, manufacturing, & marketing? - ✔✔- Production/Manufacturing activities credited
with providing form utility.
- Logistics activities credited with time. place, & quantity utilities.
, - Marketing activities credited with possession utility.
What is the magnitude of logistics spending in the US, & how much of it is for transportation? -
✔✔1,449 billion & 702 billion is spent on transportation
What level are logistics costs relative to GDP? - ✔✔8-10% of GDP
Explain the interface of logistics with Manufacturing: - ✔✔- Length of production run
- Available quantity of raw material & component
- Industrial packaging
Explain the interface of logistics with Marketing: - ✔✔- Price
- Product
- Promotion
- Place
Explain the interface of logistics with Accounting: - ✔✔- Cost information for analysis of
alternative logistics operations
- Supply chain tradeoffs & performance measurement
Explain the interface of logistics with Finance: - ✔✔- Inventory
- Warehouses & transportation fleet owned &/or outsourced
- Customer service
Explain the Inventory Effect: - ✔✔Increasing inventory costs can reduce the cost of lost sales
