LOGISTICS AND SUPPLY CHAIN
MANAGEMENT EXAM 1 WITH ALL CORRECT
& VERIFIED ANSWERS (UPDATED TO PASS)
What is a supply chain? Correct answer-the flow of materials, information, money, and services
from raw material supplies, through factories, and warehouses to the end customers. Includes the
organizations and processes that create and deliver products, information, and services to end
customers.
Product Flow Correct answer-usually involves movement of products from a supplier to a
customer, and also the back end process such as any customer returns or service needs.
Information Flow Correct answer-involves the flow of information on orders and updating the
status of delivery.
Cash Flow (Financial Flow) Correct answer-consists of credit terms, payment schedules, and
consignment and title ownership arrangements. The faster cash-to cash cycle, which just means
customers receive orders sooner and are billed faster is huge in companies.
Demand Flow Correct answer-provides organizations the ability to better synchronize supply and
demand by detecting and understanding demand "signals" and making appropriate adjustments to
demand changes more effectively.
Supply Chain Management Correct answer-Supply chain management is the efficient and effective
flow of products/materials, services, information, and financials from the supplier's suppliers
through various intermediate entities out to the end user.
Supply Chain Operational Reference Model- SCOR Correct answer-A process reference model
developed and endorsed by the Supply Chain Council as the cross-industry, standard diagnostic tool
for supply chain management. The SCOR model describes the business activities associated with
satisfying a customer's demand, which include plan, source, make, deliver, and return. Use of the
model includes analyzing the current state of a company's processes and goals, quantifying
operational performance, and comparing company performance to benchmark data. SCOR has
developed a set of metrics for supply chain performance, and Supply Chain Council members have
formed industry groups to collect best practices information that companies can use to evaluate their
supply chain performance.
What are the 5 supply chain enabling functions? Correct answer-1. Demand planning & sales
forecasting
2. SCM Manufacturing & Operations
3. Purchase & supply management
4. Logistics
5. Reverse business
Describe the evolution of Logistics from the 60's to the 2000's? Correct answer-*1960's:* the
development of the physical distribution management concept that focused on the outbound side of
a firm's logistics system. A fragmentation...
*1980's:* the development of logistics management through the deregulation of transportation
provided an opportunity to coordinate inbound and outbound transportation movements (Inbound
logistics refers to the transport, storage and delivery of goods coming into a business. Outbound
, logistics refers to the same, for goods going out of a business). Coordination between the two
systems increased efficiency & improved customer service. Evolving Integration...
*1990's to today:* then the supply chain management came on in 1990. A system of connected
networks between the original vendors and the ultimate final customer. 2000 brought Total
Integration (connecting companies for increased efficiency & effectiveness)....
What are the objectives of supply chain management? Correct answer-to improve the overall
organization performance and customer satisfaction by improving product or service delivery (using
information flows) to meet consumers needs while being as effective and efficient as possible to
reduce overall supply chain costs.
What are the 5 driving forces behind the changing economic and political landscape? Correct
answer-1. Globalization:
2. Technology:
3. Organizational consolidation:
4. The empowered consumer:
5. Government policy and regulation:
What are the 9 major supply chain issues? Correct answer-1. supply chain networks
2. inventory deployments
3. information
4. cost and value
5. organizational relationships
6. performance measurement
7. technology
8. transportation management
9. supply chain security
Describe the major supply chain issues Correct answer-1. Supply chain networks: need a network
system that is capable & flexible to respond & change with the dynamics of the marketplace.
2. Inventory deployments: The bullwhip effect is an exaggeration in the supply chain that occurs
when suppliers up the supply chain order more goods based on forecasted consumer demand rather
than actual consumer demand. This results in an excess of inventory in the supply chain. Inventory is
also being duplicated because consumers get excited and place the same order with multiple
suppliers and then the first one that arrives they keep and return the rest creating an overage in
supply.
3. Information: its a challenge to share info along the supply chain and ensure the integrity of the
date thats being collected but if done properly it can be a substitute for inventory b/c it reduces
uncertainty.
4. cost and value: Efficiency (cost) and effectiveness (value), the challenge is the prevention of sub-
optimization (focusing on one component of a total and making changes intended to improve that
one component and ignoring the effects on the other components.)
5. organizational relationships: internal and external collaboration and cooperation are key.
Communication is important in order to explain opp. for system tradeoffs that make the SC more
competitive.
6. performance measurement: measures of performance or metrics in place to evaluate their
efficiency & progress over diff. time periods. For example, orders filled and shipped per day.
7. Technology: challenge to evaluate and successfully implement the technology to make
improvements. Analysis, planning and educating are key.
MANAGEMENT EXAM 1 WITH ALL CORRECT
& VERIFIED ANSWERS (UPDATED TO PASS)
What is a supply chain? Correct answer-the flow of materials, information, money, and services
from raw material supplies, through factories, and warehouses to the end customers. Includes the
organizations and processes that create and deliver products, information, and services to end
customers.
Product Flow Correct answer-usually involves movement of products from a supplier to a
customer, and also the back end process such as any customer returns or service needs.
Information Flow Correct answer-involves the flow of information on orders and updating the
status of delivery.
Cash Flow (Financial Flow) Correct answer-consists of credit terms, payment schedules, and
consignment and title ownership arrangements. The faster cash-to cash cycle, which just means
customers receive orders sooner and are billed faster is huge in companies.
Demand Flow Correct answer-provides organizations the ability to better synchronize supply and
demand by detecting and understanding demand "signals" and making appropriate adjustments to
demand changes more effectively.
Supply Chain Management Correct answer-Supply chain management is the efficient and effective
flow of products/materials, services, information, and financials from the supplier's suppliers
through various intermediate entities out to the end user.
Supply Chain Operational Reference Model- SCOR Correct answer-A process reference model
developed and endorsed by the Supply Chain Council as the cross-industry, standard diagnostic tool
for supply chain management. The SCOR model describes the business activities associated with
satisfying a customer's demand, which include plan, source, make, deliver, and return. Use of the
model includes analyzing the current state of a company's processes and goals, quantifying
operational performance, and comparing company performance to benchmark data. SCOR has
developed a set of metrics for supply chain performance, and Supply Chain Council members have
formed industry groups to collect best practices information that companies can use to evaluate their
supply chain performance.
What are the 5 supply chain enabling functions? Correct answer-1. Demand planning & sales
forecasting
2. SCM Manufacturing & Operations
3. Purchase & supply management
4. Logistics
5. Reverse business
Describe the evolution of Logistics from the 60's to the 2000's? Correct answer-*1960's:* the
development of the physical distribution management concept that focused on the outbound side of
a firm's logistics system. A fragmentation...
*1980's:* the development of logistics management through the deregulation of transportation
provided an opportunity to coordinate inbound and outbound transportation movements (Inbound
logistics refers to the transport, storage and delivery of goods coming into a business. Outbound
, logistics refers to the same, for goods going out of a business). Coordination between the two
systems increased efficiency & improved customer service. Evolving Integration...
*1990's to today:* then the supply chain management came on in 1990. A system of connected
networks between the original vendors and the ultimate final customer. 2000 brought Total
Integration (connecting companies for increased efficiency & effectiveness)....
What are the objectives of supply chain management? Correct answer-to improve the overall
organization performance and customer satisfaction by improving product or service delivery (using
information flows) to meet consumers needs while being as effective and efficient as possible to
reduce overall supply chain costs.
What are the 5 driving forces behind the changing economic and political landscape? Correct
answer-1. Globalization:
2. Technology:
3. Organizational consolidation:
4. The empowered consumer:
5. Government policy and regulation:
What are the 9 major supply chain issues? Correct answer-1. supply chain networks
2. inventory deployments
3. information
4. cost and value
5. organizational relationships
6. performance measurement
7. technology
8. transportation management
9. supply chain security
Describe the major supply chain issues Correct answer-1. Supply chain networks: need a network
system that is capable & flexible to respond & change with the dynamics of the marketplace.
2. Inventory deployments: The bullwhip effect is an exaggeration in the supply chain that occurs
when suppliers up the supply chain order more goods based on forecasted consumer demand rather
than actual consumer demand. This results in an excess of inventory in the supply chain. Inventory is
also being duplicated because consumers get excited and place the same order with multiple
suppliers and then the first one that arrives they keep and return the rest creating an overage in
supply.
3. Information: its a challenge to share info along the supply chain and ensure the integrity of the
date thats being collected but if done properly it can be a substitute for inventory b/c it reduces
uncertainty.
4. cost and value: Efficiency (cost) and effectiveness (value), the challenge is the prevention of sub-
optimization (focusing on one component of a total and making changes intended to improve that
one component and ignoring the effects on the other components.)
5. organizational relationships: internal and external collaboration and cooperation are key.
Communication is important in order to explain opp. for system tradeoffs that make the SC more
competitive.
6. performance measurement: measures of performance or metrics in place to evaluate their
efficiency & progress over diff. time periods. For example, orders filled and shipped per day.
7. Technology: challenge to evaluate and successfully implement the technology to make
improvements. Analysis, planning and educating are key.
