SCM Fundamentals Exam 1 Questions
and Answers
Supply Chain Management - ANS-the understanding of integrating and managing key
business processes across the supply chain
Logistics - ANS-plans, implements, and controls the efficient, effective flows and
storage of goods, services, and related info from point-of-origin to the point-of-
consumption in order to met customers requirements
SCM Framework - ANS-1) Supply chain network structure
2) Supply chain business process
3) Supply chain management components
Supply Chain Network Structure - ANS-member firms, and links between these firm
Supply Chain business process - ANS-activities that produce output of value for
customers
Supply Chain Management Components - ANS-Managerial variables by which business
processes are integrated and managed across the supply chain
Primary Members - ANS-companies/ business units who carry out value-adding
activities designed to produce a specific output for a particular customer or market
Supporting members - ANS-companies that provide resources, knowledge, utilities, or
assets for primary members of supply chain
Horizontal Structure - ANS-the number of tiers across the supply chain
Vertical Structure - ANS-the number of suppliers/ customers represented within each
tier
Horizontal Position - ANS-a firm can be positioned at or near the initial source of supply,
customer, or inbetween
Biased - ANS-a biased forecast will lead to excessive inventories or stockouts
The Supply Chain look - ANS-suppliers to manufacturers to distributors to retailers to
consumers
, CRM - ANS-segment customers into groups varying degrees of strategic importance
and develop a plan describing the type of relationship to establish
CSM (customer service management) - ANS-key point of contact for administering
product/service agreement
Demand Management - ANS-mutual modification or creation of demand across firms in
the supply chain for the purposes of improving the long-term performance of the
individual companies and the supply chain as a whole
Derived Demand - ANS-demand resulting from what companies further upstream in the
supply chain do to meet demand from their immediate customers
Collaborative Forecasting - ANS-purposive exchange of specific and timely information
between trading partners to develop a single shared projection of demand
Demand Planning - ANS-coordination of the flow of derived demand through companies
in the supply chain for the purposes of improving the long-term performance of the
individual companies and the supply chain as a whole
Key Supply Chain Processes - ANS--customer relationship management
-customer service management
-demand management
-order fulfillment
-manufacturing flow management
-procurement
-product development
-returns
Bullwhip Effect Common Symptoms - ANS--excessive inventory
-poor product forecasts
-insufficient or excessive capacities
-poor customer service
-uncertain production planning
-high cost for corrections
Major Causes of the Bullwhip Effect - ANS-1)Demand Forecast updating
2) Order Batching
3)Price Fluctuation
4)Rationing and shortage gaming
Two Forms of order batching - ANS-1)periodic ordering
2)push ordering
Forward Buy - ANS-arrangement in which items are bought in advance due to
manufacturers' attractive price offer such as price discount, coupons, rabates
and Answers
Supply Chain Management - ANS-the understanding of integrating and managing key
business processes across the supply chain
Logistics - ANS-plans, implements, and controls the efficient, effective flows and
storage of goods, services, and related info from point-of-origin to the point-of-
consumption in order to met customers requirements
SCM Framework - ANS-1) Supply chain network structure
2) Supply chain business process
3) Supply chain management components
Supply Chain Network Structure - ANS-member firms, and links between these firm
Supply Chain business process - ANS-activities that produce output of value for
customers
Supply Chain Management Components - ANS-Managerial variables by which business
processes are integrated and managed across the supply chain
Primary Members - ANS-companies/ business units who carry out value-adding
activities designed to produce a specific output for a particular customer or market
Supporting members - ANS-companies that provide resources, knowledge, utilities, or
assets for primary members of supply chain
Horizontal Structure - ANS-the number of tiers across the supply chain
Vertical Structure - ANS-the number of suppliers/ customers represented within each
tier
Horizontal Position - ANS-a firm can be positioned at or near the initial source of supply,
customer, or inbetween
Biased - ANS-a biased forecast will lead to excessive inventories or stockouts
The Supply Chain look - ANS-suppliers to manufacturers to distributors to retailers to
consumers
, CRM - ANS-segment customers into groups varying degrees of strategic importance
and develop a plan describing the type of relationship to establish
CSM (customer service management) - ANS-key point of contact for administering
product/service agreement
Demand Management - ANS-mutual modification or creation of demand across firms in
the supply chain for the purposes of improving the long-term performance of the
individual companies and the supply chain as a whole
Derived Demand - ANS-demand resulting from what companies further upstream in the
supply chain do to meet demand from their immediate customers
Collaborative Forecasting - ANS-purposive exchange of specific and timely information
between trading partners to develop a single shared projection of demand
Demand Planning - ANS-coordination of the flow of derived demand through companies
in the supply chain for the purposes of improving the long-term performance of the
individual companies and the supply chain as a whole
Key Supply Chain Processes - ANS--customer relationship management
-customer service management
-demand management
-order fulfillment
-manufacturing flow management
-procurement
-product development
-returns
Bullwhip Effect Common Symptoms - ANS--excessive inventory
-poor product forecasts
-insufficient or excessive capacities
-poor customer service
-uncertain production planning
-high cost for corrections
Major Causes of the Bullwhip Effect - ANS-1)Demand Forecast updating
2) Order Batching
3)Price Fluctuation
4)Rationing and shortage gaming
Two Forms of order batching - ANS-1)periodic ordering
2)push ordering
Forward Buy - ANS-arrangement in which items are bought in advance due to
manufacturers' attractive price offer such as price discount, coupons, rabates
