SCM 300 Exam 1 Modules 1-4 Davila
productivity (what i make/cost) - CORRECT ANSWER-organization perspective
1. Procurement
2. Operations
3. Logistics - CORRECT ANSWER-SCM Key Components
Procurement (buy it) - CORRECT ANSWER-process of obtaining services, supplies,
and equipment in conformance with corporate regulations
Operations (make it) - CORRECT ANSWER-makes business processes effective and
efficient. They help the organization create high quality products/ services using the
fewest resources
Logistics (move it) - CORRECT ANSWER-developing the transportation itinerary and
finding reliable transportation and storage partners, to be able to navigate the flow of
materials to the final destination
purchasing -> production -> distribution -> retail sales - CORRECT ANSWER-The
Supply Chain
Supply Chain Management - CORRECT ANSWER-the management of the chain of
supplies
buy it -> make it -> move it -> sell it -> service it - CORRECT ANSWER-SCM
Flows/Strategy
1. cost
2. quality
3. speed/time
4. flexibility - CORRECT ANSWER-Competitive Priorities
value (what i get/price) - CORRECT ANSWER-customers perspective
The efficient integration of the Supply Chain - CORRECT ANSWER-SCM Def
satisfy the customer, satisfy the company, consider the future - CORRECT ANSWER-
Successful SC Manager
, sustainable long term profits and maimize ROI - CORRECT ANSWER-Corporation
Goals
Reverse Logistics - CORRECT ANSWER-reuse of production and materials
1st Tier Suppliers - CORRECT ANSWER-a company's direct supplier. A firm that
directly provides goods and/ or services to a company
2nd Tier Suppliers - CORRECT ANSWER-a firm provides goods and/ or services to a
company's first-tier supplier
Downstream - CORRECT ANSWER-direction in which products flow towards an end
consumer. Direction is the right.
Storage and consolidation/sorting
picking and packing, labeling
Upstream - CORRECT ANSWER-direction from customers to suppliers. Direction is the
left
central return center AKA reverse logistics activities
Business model - CORRECT ANSWER-planning to purchase, transform, deliver, and
sell products with intent on making a profit
Supply Chain Visibility - CORRECT ANSWER-ability to see what is happening with
inventory up and down a supply chain
Profit - CORRECT ANSWER-Formula: profit = revenue - cost. If supply chain creates a
damaged product no one will buy it for a premium price, that's why it's important for the
supply chain to deliver the best products
ROI - CORRECT ANSWER-Formula: total profit/ total invest money. Return on
investment- an economic measure that helps evaluate the return of money. Scenario 1:
10/1,000 = 0.01 Scenario 2: 10/1 = 10 (good investment).
total profit/ total invest money - CORRECT ANSWER-ROI Formula
profit= revenue - cost - CORRECT ANSWER-Profits Formula
Delivery time - CORRECT ANSWER-from order placement to order fulfillment
1. defaults
2. overproduction
3. transportation (moving products may involve damage or theft)
4. motion (employees get tired thus get injured)
5. waiting (work in process finished to soon and is waiting to be finished)
6. inventory (not providing return)
productivity (what i make/cost) - CORRECT ANSWER-organization perspective
1. Procurement
2. Operations
3. Logistics - CORRECT ANSWER-SCM Key Components
Procurement (buy it) - CORRECT ANSWER-process of obtaining services, supplies,
and equipment in conformance with corporate regulations
Operations (make it) - CORRECT ANSWER-makes business processes effective and
efficient. They help the organization create high quality products/ services using the
fewest resources
Logistics (move it) - CORRECT ANSWER-developing the transportation itinerary and
finding reliable transportation and storage partners, to be able to navigate the flow of
materials to the final destination
purchasing -> production -> distribution -> retail sales - CORRECT ANSWER-The
Supply Chain
Supply Chain Management - CORRECT ANSWER-the management of the chain of
supplies
buy it -> make it -> move it -> sell it -> service it - CORRECT ANSWER-SCM
Flows/Strategy
1. cost
2. quality
3. speed/time
4. flexibility - CORRECT ANSWER-Competitive Priorities
value (what i get/price) - CORRECT ANSWER-customers perspective
The efficient integration of the Supply Chain - CORRECT ANSWER-SCM Def
satisfy the customer, satisfy the company, consider the future - CORRECT ANSWER-
Successful SC Manager
, sustainable long term profits and maimize ROI - CORRECT ANSWER-Corporation
Goals
Reverse Logistics - CORRECT ANSWER-reuse of production and materials
1st Tier Suppliers - CORRECT ANSWER-a company's direct supplier. A firm that
directly provides goods and/ or services to a company
2nd Tier Suppliers - CORRECT ANSWER-a firm provides goods and/ or services to a
company's first-tier supplier
Downstream - CORRECT ANSWER-direction in which products flow towards an end
consumer. Direction is the right.
Storage and consolidation/sorting
picking and packing, labeling
Upstream - CORRECT ANSWER-direction from customers to suppliers. Direction is the
left
central return center AKA reverse logistics activities
Business model - CORRECT ANSWER-planning to purchase, transform, deliver, and
sell products with intent on making a profit
Supply Chain Visibility - CORRECT ANSWER-ability to see what is happening with
inventory up and down a supply chain
Profit - CORRECT ANSWER-Formula: profit = revenue - cost. If supply chain creates a
damaged product no one will buy it for a premium price, that's why it's important for the
supply chain to deliver the best products
ROI - CORRECT ANSWER-Formula: total profit/ total invest money. Return on
investment- an economic measure that helps evaluate the return of money. Scenario 1:
10/1,000 = 0.01 Scenario 2: 10/1 = 10 (good investment).
total profit/ total invest money - CORRECT ANSWER-ROI Formula
profit= revenue - cost - CORRECT ANSWER-Profits Formula
Delivery time - CORRECT ANSWER-from order placement to order fulfillment
1. defaults
2. overproduction
3. transportation (moving products may involve damage or theft)
4. motion (employees get tired thus get injured)
5. waiting (work in process finished to soon and is waiting to be finished)
6. inventory (not providing return)
