Guide Questions with Detailed Answers
2026-2027 set.
Supply Chain Management - Answer the management of the chain of supplies
buy it -> make it -> move it -> sell it -> service it - Answer SCM Flows/Strategy
1. cost
2. quality
3. speed/time
4. flexibility - Answer Competitive Priorities
value (what i get/price) - Answer customers perspective
productivity (what i make/cost) - Answer organization perspective
1. Procurement
2. Operations
3. Logistics - Answer SCM Key Components
Procurement (buy it) - Answer process of obtaining services, supplies, and equipment in
conformance with corporate regulations
Operations (make it) - Answer makes business processes effective and efficient. They help the
organization create high quality products/ services using the fewest resources
Logistics (move it) - Answer developing the transportation itinerary and finding reliable
transportation and storage partners, to be able to navigate the flow of materials to the final
destination
purchasing -> production -> distribution -> retail sales - Answer The Supply Chain
The efficient integration of the Supply Chain - Answer SCM Def
satisfy the customer, satisfy the company, consider the future - Answer Successful SC Manager
, sustainable long term profits and maimize ROI - Answer Corporation Goals
Reverse Logistics - Answer reuse of production and materials
1st Tier Suppliers - Answer a company's direct supplier. A firm that directly provides goods
and/ or services to a company
2nd Tier Suppliers - Answer a firm provides goods and/ or services to a company's first-tier
supplier
Downstream - Answer direction in which products flow towards an end consumer. Direction is
the right.
Storage and consolidation/sorting
picking and packing, labeling
Upstream - Answer direction from customers to suppliers. Direction is the left
central return center AKA reverse logistics activities
Business model - Answer planning to purchase, transform, deliver, and sell products with
intent on making a profit
Supply Chain Visibility - Answer ability to see what is happening with inventory up and down a
supply chain
Profit - Answer Formula: profit = revenue - cost. If supply chain creates a damaged product no
one will buy it for a premium price, that's why it's important for the supply chain to deliver the
best products
ROI - Answer Formula: total profit/ total invest money. Return on investment- an economic
measure that helps evaluate the return of money. Scenario 1: 10/1,000 = 0.01 Scenario 2: 10/1
= 10 (good investment).
total profit/ total invest money - Answer ROI Formula
profit= revenue - cost - Answer Profits Formula
Delivery time - Answer from order placement to order fulfillment