SCMN 2150 END OF COURSE 2025/2026 QUESTIONS WITH
SOLUTIONS MARKED A+
✔✔Effective capacity - ✔✔Logical or reasonable expectation of capacity use
• Design capacity minus typical allowances such as personal time, maintenance, and
scrap (normal operating level)
✔✔Capacity Utilization - ✔✔Measures how much of the available capacity is actually
being used
✔✔capacity cushion - ✔✔an additional amount of capacity added onto the expected
demand to allow for greater than expected demand and demand during peak demand
seasons. Creates flexibility.
✔✔Capacity Planning and Management - ✔✔• Goal is to match capacity and demand
✔✔If capacity > demand - ✔✔then risk = excess inventory
✔✔If capacity < demand - ✔✔then risk = inventory shortage
✔✔How to match capacity to demand - ✔✔Make staffing changes
• Adjust equipment levels
• Improve processes, make them flexible
• Redesign products for ease of production • Add/close facilities
✔✔things we forecast or predict - ✔✔weather, demand, sports, stock market
✔✔two forecasting methods - ✔✔qualitative and quantitative
✔✔scheduling - ✔✔Allocation of resources to activities over time so that demands are
met in a timely and cost-effective manner
✔✔sequencing - ✔✔Order of occurrence; process of following a specific order to ensure
quality
✔✔Materials Requirements Planning - ✔✔a tool to deal with over/under purchasing of
key input items (materials and subassemblies).
✔✔gross requirements - ✔✔Total expected demand for end item or component in a
time period.
✔✔Projected on hand - ✔✔expected amount of inventory that will be on hand at the
beginning of each time period
, ✔✔net requirement - ✔✔The actual amount that we need to
purchase in each time period:
✔✔planned order release - ✔✔the amount of an item that is planned to be ordered in a
period
✔✔If an end good has a one week production time and a customer requires the order to
be ready in Week 7, when should the key components (lead time = 3 weeks) be
ordered? - ✔✔week 3
✔✔Which of the following is the planned-order release using an MRP program if the
gross requirement is 5,000 and the inventory on hand is 1,200? - ✔✔3,800
✔✔Sales and Operations Planning (S&OP) - ✔✔the heart of balancing supply and
demand, and aligning the company around a common financial, demand and supply
plan. The overall result of the S&OP process is that a single operating plan is created
that identifies the allocation of company resources, including time, money and
employees.
✔✔What is the most tangible, basic flow in a supply chain? - ✔✔product flow
✔✔Supply chain management mainly focuses on the creation, movement, and storage
of products. However, it is also important to think about SCM strategy, people issues,
and information. T or F - ✔✔true
✔✔Which supply chain process focuses on the transformation of inputs into outputs? -
✔✔production
✔✔According to the first Episode 1 reading, what benefit will be created if a supply
chain reduces its inventory carrying costs? - ✔✔reduced variable costs
✔✔The primary benefit of a decentralized supply chain network is customer proximity
and the main drawback is a need for larger inventory safety stock. t or f - ✔✔true
✔✔How are nodes in a supply chain physically connected? - ✔✔by transportation links
✔✔What company's supply chain network is featured in the Industry in Action video
segment? - ✔✔noble group
✔✔A fixed point in a supply chain where goods are processed, mixed, held, or sold is
called a: - ✔✔node
SOLUTIONS MARKED A+
✔✔Effective capacity - ✔✔Logical or reasonable expectation of capacity use
• Design capacity minus typical allowances such as personal time, maintenance, and
scrap (normal operating level)
✔✔Capacity Utilization - ✔✔Measures how much of the available capacity is actually
being used
✔✔capacity cushion - ✔✔an additional amount of capacity added onto the expected
demand to allow for greater than expected demand and demand during peak demand
seasons. Creates flexibility.
✔✔Capacity Planning and Management - ✔✔• Goal is to match capacity and demand
✔✔If capacity > demand - ✔✔then risk = excess inventory
✔✔If capacity < demand - ✔✔then risk = inventory shortage
✔✔How to match capacity to demand - ✔✔Make staffing changes
• Adjust equipment levels
• Improve processes, make them flexible
• Redesign products for ease of production • Add/close facilities
✔✔things we forecast or predict - ✔✔weather, demand, sports, stock market
✔✔two forecasting methods - ✔✔qualitative and quantitative
✔✔scheduling - ✔✔Allocation of resources to activities over time so that demands are
met in a timely and cost-effective manner
✔✔sequencing - ✔✔Order of occurrence; process of following a specific order to ensure
quality
✔✔Materials Requirements Planning - ✔✔a tool to deal with over/under purchasing of
key input items (materials and subassemblies).
✔✔gross requirements - ✔✔Total expected demand for end item or component in a
time period.
✔✔Projected on hand - ✔✔expected amount of inventory that will be on hand at the
beginning of each time period
, ✔✔net requirement - ✔✔The actual amount that we need to
purchase in each time period:
✔✔planned order release - ✔✔the amount of an item that is planned to be ordered in a
period
✔✔If an end good has a one week production time and a customer requires the order to
be ready in Week 7, when should the key components (lead time = 3 weeks) be
ordered? - ✔✔week 3
✔✔Which of the following is the planned-order release using an MRP program if the
gross requirement is 5,000 and the inventory on hand is 1,200? - ✔✔3,800
✔✔Sales and Operations Planning (S&OP) - ✔✔the heart of balancing supply and
demand, and aligning the company around a common financial, demand and supply
plan. The overall result of the S&OP process is that a single operating plan is created
that identifies the allocation of company resources, including time, money and
employees.
✔✔What is the most tangible, basic flow in a supply chain? - ✔✔product flow
✔✔Supply chain management mainly focuses on the creation, movement, and storage
of products. However, it is also important to think about SCM strategy, people issues,
and information. T or F - ✔✔true
✔✔Which supply chain process focuses on the transformation of inputs into outputs? -
✔✔production
✔✔According to the first Episode 1 reading, what benefit will be created if a supply
chain reduces its inventory carrying costs? - ✔✔reduced variable costs
✔✔The primary benefit of a decentralized supply chain network is customer proximity
and the main drawback is a need for larger inventory safety stock. t or f - ✔✔true
✔✔How are nodes in a supply chain physically connected? - ✔✔by transportation links
✔✔What company's supply chain network is featured in the Industry in Action video
segment? - ✔✔noble group
✔✔A fixed point in a supply chain where goods are processed, mixed, held, or sold is
called a: - ✔✔node
