©Jason McConnel 2025 ALL RIGHTS RESERVED.
SCMN- Exam 2 Questions With Correct
Answers A+
Procurement - Answer✔the purchase of merchandise or services at the optimum possible total
cost in the correct amount and quality.
How does Procurement differ from strategic sourcing? - Answer✔Procurement is no longer
hammering down prices only. What's needed is a different attitude to external partnering--
understanding the market environment, your vendors, their strategies, & what makes them tick
Outsourcing - Answer✔-purchasing a product, part, or component from an outside supplier vs.
manufacturing it in-house
-the act of moving a firm's internal activities and decision responsibility to outside providers
-requires a "make or buy" analysis
What costs and challenges are involved in outsourcing? - Answer✔-Internal costs vs. external
price
-Poor quality supply
-Expensive supply
-Long lead-time of supply
-Reliability
Basic procurement performance metrics - Answer✔-Fill rate
-Damage rate
-On time
Production - Answer✔the process by which inputs are combined, transformed, and turned into
outputs.
3 key components of Production - Answer✔1.) Inputs
2.) Transformation
3.) Outputs
What's the focus of lean production? - Answer✔focuses on eliminating muda - eliminating
"waste" while delivering quality products at the least cost to the manufacturer and customers.
, ©Jason McConnel 2025 ALL RIGHTS RESERVED.
What's the focus of mass customization? - Answer✔postponement/ delayed differentation
What production processes are available for companies to use? - Answer✔-Project
-Work centers
-Manufacturing cells
-Assembly line
-Continuous process
What issues and factors drive the production layout decision? - Answer✔-Facility size
-Process flow
-Speed
-Labor content
-Skill level
-Material requirements
-Scheduling
Purpose of break-even analysis - Answer✔- allows a comparison of total costs for different
processes. -This technique takes the fixed costs and variable costs and finds the break-even point
for which the cost of two or more processes are equal in cost.
Purpose of assembly line balancing - Answer✔-manufacturing process in which interchangeable
parts are added to a product in a sequential manner to create a finished product
Logistics - Answer✔-part of the supply chain process that plans, implements, and controls the
efficient, effective flow and storage of goods, services, and related info from point of origin to
point of consumption in order to meet customers' requirements.
Why has logistics grown in importance? - Answer✔-Promotes activity and strategic integration
-Boosts demand
-Promotes efficiency and profitability
-Supports the creation of utility
What are the key performance metrics in logistics? - Answer✔-Customer service level
-Customer delivery quality
-Customer delivery speed
-Perfect order analysis
Why is transportation a critical logistics function? - Answer✔-Focuses on the procurement and
management of a unique service offering
SCMN- Exam 2 Questions With Correct
Answers A+
Procurement - Answer✔the purchase of merchandise or services at the optimum possible total
cost in the correct amount and quality.
How does Procurement differ from strategic sourcing? - Answer✔Procurement is no longer
hammering down prices only. What's needed is a different attitude to external partnering--
understanding the market environment, your vendors, their strategies, & what makes them tick
Outsourcing - Answer✔-purchasing a product, part, or component from an outside supplier vs.
manufacturing it in-house
-the act of moving a firm's internal activities and decision responsibility to outside providers
-requires a "make or buy" analysis
What costs and challenges are involved in outsourcing? - Answer✔-Internal costs vs. external
price
-Poor quality supply
-Expensive supply
-Long lead-time of supply
-Reliability
Basic procurement performance metrics - Answer✔-Fill rate
-Damage rate
-On time
Production - Answer✔the process by which inputs are combined, transformed, and turned into
outputs.
3 key components of Production - Answer✔1.) Inputs
2.) Transformation
3.) Outputs
What's the focus of lean production? - Answer✔focuses on eliminating muda - eliminating
"waste" while delivering quality products at the least cost to the manufacturer and customers.
, ©Jason McConnel 2025 ALL RIGHTS RESERVED.
What's the focus of mass customization? - Answer✔postponement/ delayed differentation
What production processes are available for companies to use? - Answer✔-Project
-Work centers
-Manufacturing cells
-Assembly line
-Continuous process
What issues and factors drive the production layout decision? - Answer✔-Facility size
-Process flow
-Speed
-Labor content
-Skill level
-Material requirements
-Scheduling
Purpose of break-even analysis - Answer✔- allows a comparison of total costs for different
processes. -This technique takes the fixed costs and variable costs and finds the break-even point
for which the cost of two or more processes are equal in cost.
Purpose of assembly line balancing - Answer✔-manufacturing process in which interchangeable
parts are added to a product in a sequential manner to create a finished product
Logistics - Answer✔-part of the supply chain process that plans, implements, and controls the
efficient, effective flow and storage of goods, services, and related info from point of origin to
point of consumption in order to meet customers' requirements.
Why has logistics grown in importance? - Answer✔-Promotes activity and strategic integration
-Boosts demand
-Promotes efficiency and profitability
-Supports the creation of utility
What are the key performance metrics in logistics? - Answer✔-Customer service level
-Customer delivery quality
-Customer delivery speed
-Perfect order analysis
Why is transportation a critical logistics function? - Answer✔-Focuses on the procurement and
management of a unique service offering
