SUPPLY CHAIN MANAGEMENT STUDY GUIDE TEST PAPER QUESTIONS WITH THOROUGH ANSWER EXPLANATIONS

SUPPLY CHAIN MANAGEMENT STUDY
GUIDE TEST PAPER QUESTIONS WITH
THOROUGH ANSWER EXPLANATIONS

●● supply chain network structure
Answer: who are the key supply chain members with whom to link
processes?


●● supply chain management processes
Answer: what processes should be linked with each of these key supply
chain members


●● supply chain management components
Answer: what level of integration and management should be applied for
each process link?


●● how are customer relationships managed?
Answer: by customer teams which negotiate mutually beneficial product
/ service agreements with large, strategivall significant customers


●● what do customer teams do?
Answer: develop and implement customer partnering programs

,●● how are relationships with major suppliers managed?
Answer: corporately managed as partnerships


●● who developes and manages the product / service agreements?
Answer: with key suppliers and segments of non-key suppliers


●● teams work with suppliers to
Answer: reduce cost and improve service


●● what is the goal of supplier relationship management
Answer: to improve the profitability of both the focus firm and the
suppliers


●● why are purchase order transactions integrated with the supply
process?
Answer: to improve productivity and all areas of supplier performance


●● internal motivation for supply chain management
Answer: realization that systems concept applies to multiple-
organization channels;
movement toward partnering with "choice" suppliers and customers;
this is the way business will dominatly be conducted in the future

, ●● external motivation for supply chain management
Answer: changing consumers, technology, critcality of speed and time,
emphasis on asset productivity and inventory reduction / turnover,
customer satisfaction


●● is logistics a part of supply chain management?
Answer: YES


●● network complexity
Answer: growing numbers of nodes and links;
outsourcing driving increased complexity;
lack of visibility, particularly beyond tier 1;
more susceptible to risk


●● process complexity
Answer: haphazard development of processes;
additions and modifications over time add to complexity;
changing requirements


●● range complexity
Answer: SKU proliferation;
product introductions, new sizes or variants, and brand extensions >
elimination of products;