SCMN-2150 Exam 1 Questions with Correct
Answers
Supply Chain Management Correct Answer creates strong end to end supply chain from
the upstream supplier to the downstream consumer.
An integrated collected of organizations, people, activities, information, and resources
Includes all the activities that its takes to get products from the supplier to the
consumer, involves everything from raw material extraction, to component fabrication, to
production and distribution of tangible goods, so the finished product is available to
meet consumer demand
The 7 "Rights" of supply chain management - how to succeed Correct Answer In the
right product
In the right quantity
To the right customer
At the right time
At the right place
In the right condition
At the right cost
Supply Chain Goals Correct Answer *Customer care, industry competitiveness,
efficient, responsive and resilient
*Better, faster, cheaper and more responsive
*Drive revenue, lower cost
Essential Activities Correct Answer - Planning and forecasting (build, buy and sell)
- Procurement (buy/make it)
- Operations (transforming input into output)
- Logistics and transportation
Key Participants Correct Answer - Suppliers, manufacturers, retailers, customers
Back and Forth Flows
- Flows of product, information and money
- Create visibility, drive utility, release funds
Essential Processes Correct Answer - Supply chain planning (PLAN), purchasing
(BUY), production (MAKE),
fulfillment (MOVE), post sales report (SERVICE)
Supply Chain Strategy Correct Answer segment customers based on service needs,
customize the logistics network, drive operations from demand, differentiate product
, closer to the customer, source strategically, develop strong supply-chain technology,
use supply chain spanning performance measures
Supply Chain Strategy: Create greater utility for customers Correct Answer - time utility,
place utility, form utility
- Creates high customer expectations
Pursue cross-chain alignment Correct Answer simple system to a fully synchronized
system
M2- Supply Chain Network Design Correct Answer Network design influences ability to
meet demand, capacity you have, costs of customer service, and kind of service you
give
Nodes: Correct Answer fixed points in a supply chain where goods are processed,
mixed, held, or sold
Links: Correct Answer the transportation method used to connect the nodes in the
supply chain
- Trucks, trains, ocean ships, airplanes, pipelines
- Intermodal transportation: 2 or more modes are used
Geographic scopes & number of nodes: Decision factors Correct Answer product value,
weight and dimensions, demand, shelf life
Geographic scopes & number of nodes: Centralized (efficiency) Correct Answer -
Control: decision making, authority at a single node in supply chain
- Benefits: lower inventory & safety stock levels, single location creates
better visibility, lower overhead stock, less labor, smaller management
team, economies of scale
- Challenge: longer lead times, higher delivery costs, potential inefficiencies
as single facility grows, potential issues w/ regional customers
Geographic scopes & number of nodes:Decentralized (effectiveness) Correct Answer
multiple factories & distribution centers that serve
a particular market
- Move shorter distances to stores, less money spent on transportation
- Control: customer interaction, flow of goods, local decision making
authority
- Benefits: customer proximity which creates shorter lead times, lower
delivery costs, and more responsiveness to demand
- Challenges: more safety stock in the system, higher overhead costs b/c of
more managers and no economies of scale
- Risk: lack of control and coordination
Answers
Supply Chain Management Correct Answer creates strong end to end supply chain from
the upstream supplier to the downstream consumer.
An integrated collected of organizations, people, activities, information, and resources
Includes all the activities that its takes to get products from the supplier to the
consumer, involves everything from raw material extraction, to component fabrication, to
production and distribution of tangible goods, so the finished product is available to
meet consumer demand
The 7 "Rights" of supply chain management - how to succeed Correct Answer In the
right product
In the right quantity
To the right customer
At the right time
At the right place
In the right condition
At the right cost
Supply Chain Goals Correct Answer *Customer care, industry competitiveness,
efficient, responsive and resilient
*Better, faster, cheaper and more responsive
*Drive revenue, lower cost
Essential Activities Correct Answer - Planning and forecasting (build, buy and sell)
- Procurement (buy/make it)
- Operations (transforming input into output)
- Logistics and transportation
Key Participants Correct Answer - Suppliers, manufacturers, retailers, customers
Back and Forth Flows
- Flows of product, information and money
- Create visibility, drive utility, release funds
Essential Processes Correct Answer - Supply chain planning (PLAN), purchasing
(BUY), production (MAKE),
fulfillment (MOVE), post sales report (SERVICE)
Supply Chain Strategy Correct Answer segment customers based on service needs,
customize the logistics network, drive operations from demand, differentiate product
, closer to the customer, source strategically, develop strong supply-chain technology,
use supply chain spanning performance measures
Supply Chain Strategy: Create greater utility for customers Correct Answer - time utility,
place utility, form utility
- Creates high customer expectations
Pursue cross-chain alignment Correct Answer simple system to a fully synchronized
system
M2- Supply Chain Network Design Correct Answer Network design influences ability to
meet demand, capacity you have, costs of customer service, and kind of service you
give
Nodes: Correct Answer fixed points in a supply chain where goods are processed,
mixed, held, or sold
Links: Correct Answer the transportation method used to connect the nodes in the
supply chain
- Trucks, trains, ocean ships, airplanes, pipelines
- Intermodal transportation: 2 or more modes are used
Geographic scopes & number of nodes: Decision factors Correct Answer product value,
weight and dimensions, demand, shelf life
Geographic scopes & number of nodes: Centralized (efficiency) Correct Answer -
Control: decision making, authority at a single node in supply chain
- Benefits: lower inventory & safety stock levels, single location creates
better visibility, lower overhead stock, less labor, smaller management
team, economies of scale
- Challenge: longer lead times, higher delivery costs, potential inefficiencies
as single facility grows, potential issues w/ regional customers
Geographic scopes & number of nodes:Decentralized (effectiveness) Correct Answer
multiple factories & distribution centers that serve
a particular market
- Move shorter distances to stores, less money spent on transportation
- Control: customer interaction, flow of goods, local decision making
authority
- Benefits: customer proximity which creates shorter lead times, lower
delivery costs, and more responsiveness to demand
- Challenges: more safety stock in the system, higher overhead costs b/c of
more managers and no economies of scale
- Risk: lack of control and coordination
