SCMN 2150 Brian Gibson test 1
Exam Questions & Answers
What is Supply Chain Management? - -the art of managing the flow of
materials, products, information, and financial resources from source to user.
- Why is SCM important? (4) - -It provides valuable opportunities to create
competitive advantage: 1. develop collaborative, trusting relationships 2.
rationalize product touch points 3. drive out costs and achieve tremendous
efficiencies 4. improve customer satisfaction
- Competitive advantage: - -requires delivering more value and satisfaction
to target consumers than competitors
- Who participates in SCM? (5) - -Suppliers, manufacturers, distributors,
retailers, consumers
- Primary processes of SCM: - -Plan, Buy, Make, Move (purchasing,
production, distribution)
- What are the goals of SCM? - -Customer care, competitiveness, efficiency,
responsiveness and resilience; these goals focus on making BETTER, FASTER,
AND CHEAPER, MORE RESPONSIVE supply chains than your competition.
- Lower Cost + Higher Sales = _________? - -Greater Profits
- 7 Principles of SCM - -1. Segment customers based on service
needs
2. Customize the logistics network
3. Drive operations from demand
4. Differentiate product closer to the
customer
5. Source strategically
6. Develop supply chain-wide technology
strategy
7. Use supply chain spanning performance measures
- How can an organization build competitive advantage via SCM? (6) - -1.
Cost (be low cost provider)
2. Quality (defect free products and services)
3. Speed (fast response time)
4. Reliability (consistent order cycle time)
5. Adaptability (deal with changing demand) 6. Flexibility (able to offer
variety)
, - Node - -a fixed point in a supply chain where goods are processed, mixed,
held, or sold. (plants, warehouses)
- Links - -the transportation method used to connect the nodes in a supply
chain.
- Centralized network - -Management decision making authority is held by a
core group of managers at a single node in the supply chain, as opposed to
multiple nodes. The single node controls customer interaction, the flow of
goods, and other key activities on a national basis.
- Centralized networks create (5): - -lower safety stock,
lower overhead cost (factories, supervisors, managers),
longer lead times,
higher delivery cost,
inefficiencies.
- Decentralized network - -Management decision making authority is given
to the managers at (multiple) individual nodes in the supply chain. Each
node controls customer interaction, the flow of goods, and other key
activities within its region.
- Decentralized networks create (6): - -more safety stock,
high overhead cost,
short lead times,
customer service,
low delivery costs,
few economies of scale
- Centralized vs. Decentralized Characteristics - -Centralized:
Distribution- national
Inventory investment- lower
safety stock- lower
inbound transportation costs- lower
outbound transportation costs- higher
service levels- effective
Decentralized:
Distribution: regional
Inventory investment: greater
Safety stock: higher
Inbound transportation cost: higher
outbound transportation cost: lower
service levels: highly effective
Exam Questions & Answers
What is Supply Chain Management? - -the art of managing the flow of
materials, products, information, and financial resources from source to user.
- Why is SCM important? (4) - -It provides valuable opportunities to create
competitive advantage: 1. develop collaborative, trusting relationships 2.
rationalize product touch points 3. drive out costs and achieve tremendous
efficiencies 4. improve customer satisfaction
- Competitive advantage: - -requires delivering more value and satisfaction
to target consumers than competitors
- Who participates in SCM? (5) - -Suppliers, manufacturers, distributors,
retailers, consumers
- Primary processes of SCM: - -Plan, Buy, Make, Move (purchasing,
production, distribution)
- What are the goals of SCM? - -Customer care, competitiveness, efficiency,
responsiveness and resilience; these goals focus on making BETTER, FASTER,
AND CHEAPER, MORE RESPONSIVE supply chains than your competition.
- Lower Cost + Higher Sales = _________? - -Greater Profits
- 7 Principles of SCM - -1. Segment customers based on service
needs
2. Customize the logistics network
3. Drive operations from demand
4. Differentiate product closer to the
customer
5. Source strategically
6. Develop supply chain-wide technology
strategy
7. Use supply chain spanning performance measures
- How can an organization build competitive advantage via SCM? (6) - -1.
Cost (be low cost provider)
2. Quality (defect free products and services)
3. Speed (fast response time)
4. Reliability (consistent order cycle time)
5. Adaptability (deal with changing demand) 6. Flexibility (able to offer
variety)
, - Node - -a fixed point in a supply chain where goods are processed, mixed,
held, or sold. (plants, warehouses)
- Links - -the transportation method used to connect the nodes in a supply
chain.
- Centralized network - -Management decision making authority is held by a
core group of managers at a single node in the supply chain, as opposed to
multiple nodes. The single node controls customer interaction, the flow of
goods, and other key activities on a national basis.
- Centralized networks create (5): - -lower safety stock,
lower overhead cost (factories, supervisors, managers),
longer lead times,
higher delivery cost,
inefficiencies.
- Decentralized network - -Management decision making authority is given
to the managers at (multiple) individual nodes in the supply chain. Each
node controls customer interaction, the flow of goods, and other key
activities within its region.
- Decentralized networks create (6): - -more safety stock,
high overhead cost,
short lead times,
customer service,
low delivery costs,
few economies of scale
- Centralized vs. Decentralized Characteristics - -Centralized:
Distribution- national
Inventory investment- lower
safety stock- lower
inbound transportation costs- lower
outbound transportation costs- higher
service levels- effective
Decentralized:
Distribution: regional
Inventory investment: greater
Safety stock: higher
Inbound transportation cost: higher
outbound transportation cost: lower
service levels: highly effective
