©Jason McConnel 2025 ALL RIGHTS RESERVED.
SCMN Test 1 Study Guide Questions With
Correct Answers A+
What is SCM and why is it important? - Answer✔includes all the activities that take place to get
a
product in your hands - from the time of raw materials
extraction to the minute you pull out your credit card and
take the final product home. . BETTER FASTER CHEAPER and provides valuable
opportunities to create competitive advantage.
Who are the key participants in SCM? - Answer✔Suppliers --> manufacturers --> distributors --
> retailers --> consumers
What are the primary processes in SCM? - Answer✔planning, procurement, production,
distribution, customer interface
What are the goals of SMN? - Answer✔Customer care, competitiveness, efficiency,
responsiveness, resiliency.
How can organizations build competitive advantages via SCM - Answer✔Develop collaborative,
trusting relationships. Improve customer satisfaction. Rationalize product touch points. Drive out
costs and achieve tremendous efficiencies.
What are links? - Answer✔The transportation method used to connect
the nodes (plants, warehouses) in a supply chain
What are nodes? - Answer✔A fixed point in a supply chain where goods
are processed, mixed, held, or sold
What value-adding process takes place at supply chain nodes? - Answer✔Incoming materials are
converted into a more valuable state (quantity, assortment, form) to meet downstream customer
needs.
Centralized network - Answer✔the single node controls customer interaction, the
flow of goods, and other key activities on a national basis
ex: L.L. Bean
, ©Jason McConnel 2025 ALL RIGHTS RESERVED.
- National Distribution
- Lower inventory investment
- Lower safety stock levels
- Lower inbound transportation cost
-Higher outbound transportation cost
- effective service levels
Decentralized network - Answer✔each node controls customer interaction, the flow of
goods, and other key activities within its region
ex: Kroger
-Regional Distribution
-Greater Inventory Investment
-Higher level safety stock
-Higher Inbound Transportation cost
-Lower Outbound Transportation cost
-Highly effective service levels
direct distribution - Answer✔supplier to store (point-to-point service)
- Higher transport cost
- minimal inventory
-no backup safety
-very lost handling cost
-no facility investment
cross docks - Answer✔suppliers to dock, dock to truck. preorganized (product mixing service)
-lower transport cost
-moderate inventory
-no backup safety stock
-low handling cost
-low facility investment
distribution centers - Answer✔items held in inventory at middle warehouse (storage &
fulfillment service)
-lower transport cost
SCMN Test 1 Study Guide Questions With
Correct Answers A+
What is SCM and why is it important? - Answer✔includes all the activities that take place to get
a
product in your hands - from the time of raw materials
extraction to the minute you pull out your credit card and
take the final product home. . BETTER FASTER CHEAPER and provides valuable
opportunities to create competitive advantage.
Who are the key participants in SCM? - Answer✔Suppliers --> manufacturers --> distributors --
> retailers --> consumers
What are the primary processes in SCM? - Answer✔planning, procurement, production,
distribution, customer interface
What are the goals of SMN? - Answer✔Customer care, competitiveness, efficiency,
responsiveness, resiliency.
How can organizations build competitive advantages via SCM - Answer✔Develop collaborative,
trusting relationships. Improve customer satisfaction. Rationalize product touch points. Drive out
costs and achieve tremendous efficiencies.
What are links? - Answer✔The transportation method used to connect
the nodes (plants, warehouses) in a supply chain
What are nodes? - Answer✔A fixed point in a supply chain where goods
are processed, mixed, held, or sold
What value-adding process takes place at supply chain nodes? - Answer✔Incoming materials are
converted into a more valuable state (quantity, assortment, form) to meet downstream customer
needs.
Centralized network - Answer✔the single node controls customer interaction, the
flow of goods, and other key activities on a national basis
ex: L.L. Bean
, ©Jason McConnel 2025 ALL RIGHTS RESERVED.
- National Distribution
- Lower inventory investment
- Lower safety stock levels
- Lower inbound transportation cost
-Higher outbound transportation cost
- effective service levels
Decentralized network - Answer✔each node controls customer interaction, the flow of
goods, and other key activities within its region
ex: Kroger
-Regional Distribution
-Greater Inventory Investment
-Higher level safety stock
-Higher Inbound Transportation cost
-Lower Outbound Transportation cost
-Highly effective service levels
direct distribution - Answer✔supplier to store (point-to-point service)
- Higher transport cost
- minimal inventory
-no backup safety
-very lost handling cost
-no facility investment
cross docks - Answer✔suppliers to dock, dock to truck. preorganized (product mixing service)
-lower transport cost
-moderate inventory
-no backup safety stock
-low handling cost
-low facility investment
distribution centers - Answer✔items held in inventory at middle warehouse (storage &
fulfillment service)
-lower transport cost
