SCMN 2150 Test 2 Auburn University Questions and Answers 100% Pass

SCMN 2150 Test 2 Auburn University Questions and Answers 100% Pass What is procurement? process of actually purchasing goods and services How does procurement differ from strategic sourcing? Procurement operations support tactical day-to-day transactions such as issuing purchase orders to suppliers, whereas strategic sourcing represents to strategic planning, supplier development, contract negotiation, supply chain infrastructure, and outsourcing models. What is outsourcing? obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source. What costs and challenges are involved in outsourcing? slower turnaround time. lack of business or domain knowledge. language and cultural barriers. time zone differences. lack of control. What is production? The process by which inputs are combined, transformed, and turned into outputs. We can produce both goods and services What are the three key components of production? 1. input 2. transformation 3. output What is the focus of lean production? focus is to eliminate waste What's the focus of mass customization? focuses on providing customers with good value for their money and increasing company profits. When buyers get custom products, they focus more on the benefits and less on price. What production processes are available for companies to use? Job production batch production continuous production What issues and factors drive the production layout decision? production variety and volume. What is the purpose of break-even analysis? main purpose is to determine the minimum output that must be exceeded for a business to profit. It also is a rough indicator of the earnings impact of a marketing activity. What is logistics? Logistics is planning and executing of the movement and support of forces. What are the key performance metrics in logistics (hint: they are much the same as the supplier evaluation metrics)? Shipping Time Accuracy Delivery Time Transportation Costs Warehousing Costs Number of Shipments