SCMN 2150 STUDY GUIDE 2025/2026 QUESTIONS WITH
SOLUTIONS MARKED A+
✔✔What are the three C's - ✔✔competent, confident, and care
✔✔What does MAD stand for & mean? - ✔✔Mean Absolute Deviation; it is the
difference in our forecast value and what actually occurred
✔✔What is the ideal MAD (mean absolute deviation) - ✔✔0 - that would mean there is
no forecasting error
✔✔T/F the larger the MAD, the more accurate the resulting model - ✔✔false, the larger
MAD the less accurate the resulting model
✔✔What does BOM stand for & mean? - ✔✔Bill of Materials ; a list of the raw materials,
sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of
each needed to manufacture an end product.
✔✔What does JIT stand for / mean? - ✔✔Just in Time ; a management strategy that
aligns raw-material orders from suppliers directly with production schedules
✔✔What are the seven rights? - ✔✔right product, right customer, right time, right place,
right condition, right quantity, right cost
✔✔direct distribution, cross dock, or distribution: which production flow best fits
Newspaper? - ✔✔direct delivery
✔✔direct distribution, cross dock, or distribution: which production flow best fits Dog
food? - ✔✔distribution center
✔✔direct distribution, cross dock, or distribution: which production flow best fits chicken
breast? - ✔✔cross dock
✔✔direct distribution, cross dock, or distribution: which production flow best fits auburn
tent? - ✔✔distribution center
✔✔What is the network design process? - ✔✔determine problem & model -> collect and
validate data -> develop model & scenarios -> evaluate scenario results -> take
strategic action
✔✔What is the objective of network design? - ✔✔to set-up an optimal and easily
maintainable supply chain configuration and merchandise flows to enable the supply
chain to best support the business objectives
, ✔✔Who is responsible for short-range plans? - ✔✔operations managers & supervisors
✔✔What are short-range plans? - ✔✔job assignments, ordering, job scheduling,
dispatching
✔✔Who is responsible for intermediate-range plans? - ✔✔operations managers
✔✔What is intermediate-range plans? - ✔✔demand planning & forecasting, sales &
operations planning, production planning & budgeting, setting employment, inventory,
subcontracting levels, analyzing operating plans
✔✔Who is responsible for long-range plans? - ✔✔top executives
✔✔What is capacity planning? - ✔✔the process of establishing the output rate that can
be achieved
✔✔What is design capacity? - ✔✔theoretical or maximum output rate to service
capacity an operation, process, or facility is designed for. it is the best operating level
✔✔What is effective capacity? - ✔✔logical or reasonable expectation of capacity use, it
is design capacity minus typical allowances such as personal time,maintenance, and
scrap. it is normal operating level.
✔✔What does capacity utilization measure? - ✔✔how much of the available capacity is
actually being used
measures the effectiveness of operation
✔✔What is capacity cushion? - ✔✔an additional amount of capacity added onto the
expected demand to allow for greater then expected demand and demand during peak
demand seasons.
created flexibility
✔✔if capacity is > than demand then risk = - ✔✔excess inventory
✔✔if capacity is < than demand then risk = - ✔✔inventory search
✔✔What are some ways you can match capacity to demand? - ✔✔-Make staffing
changes
-Adjust equipment levels
-Improve processes, make them flexible
-Redesign products for ease of production
-Add/close facilities
✔✔What are three things we forecast or predict? - ✔✔-weather
SOLUTIONS MARKED A+
✔✔What are the three C's - ✔✔competent, confident, and care
✔✔What does MAD stand for & mean? - ✔✔Mean Absolute Deviation; it is the
difference in our forecast value and what actually occurred
✔✔What is the ideal MAD (mean absolute deviation) - ✔✔0 - that would mean there is
no forecasting error
✔✔T/F the larger the MAD, the more accurate the resulting model - ✔✔false, the larger
MAD the less accurate the resulting model
✔✔What does BOM stand for & mean? - ✔✔Bill of Materials ; a list of the raw materials,
sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of
each needed to manufacture an end product.
✔✔What does JIT stand for / mean? - ✔✔Just in Time ; a management strategy that
aligns raw-material orders from suppliers directly with production schedules
✔✔What are the seven rights? - ✔✔right product, right customer, right time, right place,
right condition, right quantity, right cost
✔✔direct distribution, cross dock, or distribution: which production flow best fits
Newspaper? - ✔✔direct delivery
✔✔direct distribution, cross dock, or distribution: which production flow best fits Dog
food? - ✔✔distribution center
✔✔direct distribution, cross dock, or distribution: which production flow best fits chicken
breast? - ✔✔cross dock
✔✔direct distribution, cross dock, or distribution: which production flow best fits auburn
tent? - ✔✔distribution center
✔✔What is the network design process? - ✔✔determine problem & model -> collect and
validate data -> develop model & scenarios -> evaluate scenario results -> take
strategic action
✔✔What is the objective of network design? - ✔✔to set-up an optimal and easily
maintainable supply chain configuration and merchandise flows to enable the supply
chain to best support the business objectives
, ✔✔Who is responsible for short-range plans? - ✔✔operations managers & supervisors
✔✔What are short-range plans? - ✔✔job assignments, ordering, job scheduling,
dispatching
✔✔Who is responsible for intermediate-range plans? - ✔✔operations managers
✔✔What is intermediate-range plans? - ✔✔demand planning & forecasting, sales &
operations planning, production planning & budgeting, setting employment, inventory,
subcontracting levels, analyzing operating plans
✔✔Who is responsible for long-range plans? - ✔✔top executives
✔✔What is capacity planning? - ✔✔the process of establishing the output rate that can
be achieved
✔✔What is design capacity? - ✔✔theoretical or maximum output rate to service
capacity an operation, process, or facility is designed for. it is the best operating level
✔✔What is effective capacity? - ✔✔logical or reasonable expectation of capacity use, it
is design capacity minus typical allowances such as personal time,maintenance, and
scrap. it is normal operating level.
✔✔What does capacity utilization measure? - ✔✔how much of the available capacity is
actually being used
measures the effectiveness of operation
✔✔What is capacity cushion? - ✔✔an additional amount of capacity added onto the
expected demand to allow for greater then expected demand and demand during peak
demand seasons.
created flexibility
✔✔if capacity is > than demand then risk = - ✔✔excess inventory
✔✔if capacity is < than demand then risk = - ✔✔inventory search
✔✔What are some ways you can match capacity to demand? - ✔✔-Make staffing
changes
-Adjust equipment levels
-Improve processes, make them flexible
-Redesign products for ease of production
-Add/close facilities
✔✔What are three things we forecast or predict? - ✔✔-weather
