SCMN 2150 Auburn Final Exam 2025

What is Supply Chain? - Correct Ans-the art of maintaining the flow of materials and products, information, and financial resources from source to user Why is supply chain important ? - Correct Ans-it provides valuable opportunities to create competitive advantage, develop collaborative, trusting relationships, improve customer satisfaction, rationalize product touch points, and drive out cost and achieve efficiencies. (help us be better, faster, and cheaper) What are the five primary groups? - Correct Ans-suppliers, manufacturers, distributors, retailers, and consumers Who is the most important primary participant and why? - Correct Ans-consumers because their demand drives everything we do What are nodes? - Correct Ans-nodes are a fixed point in a supply chain where value added processes take place, goods are transformed, mixed, held, or sold at nodes What are links? - Correct Ans-the transportation method used to connect the nodes (plants, warehouses, stores) in supply chain centralized or decentralized: which has a lower inventory investment? - Correct Ans-centralized centralized or decentralized: which has national distribution? - Correct Ans-centralized centralized or decentralized: which has a higher inbound transportation cost? - Correct Ans-decentralized centralized or decentralized: which has a lower level of safety stock? - Correct Ans-centralized centralized or decentralized: which has a greater inventory investment? - Correct Ans-decentralized centralized or decentralized: which has lower outbound transportation cost? - Correct Ans-decentralized centralized or decentralized: which has a regional distribution? - Correct Ans-decentralized centralized or decentralized: which has higher outbound transportation cost? - Correct Ans-centralized centralized or decentralized: which has a higher level of safety stock? - Correct Ans-decentralized centralized or decentralized: which service level is most effective? - Correct Ans-decentralized What is direct delivery? - Correct Ans-point to point service ( a company gets its product straight to the consumer without using any intermediaries) What is cross dock? - Correct Ans-product mixing service (unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between) What are distribution centers? - Correct Ans-storage fulfillment center (used to receive and temporarily store goods that will be shipped to various destination points after orders are placed for these goods) direct delivery, cross dock, or distribution: which has the highest transportation cost? - Correct Ans-direct delivery direct delivery, cross dock, or distribution: which has the maximum inventory? - Correct Ans-distribution center direct delivery, cross dock, or distribution: which has minimal inventory? - Correct Ans-direct delivery direct delivery, cross dock, or distribution: which has no backup safety stock? - Correct Ans-direct delivery and cross dock direct delivery, cross dock, or distribution: which has protected safety stock? - Correct Ans-distribution center direct delivery, cross dock, or distribution: which has high handling cost? - Correct Ans-distribution center direct delivery, cross dock, or distribution: which has no facility investment? - Correct Ans-direct delivery direct delivery, cross dock, or distribution: which has low facility investment? - Correct Ans-cross dock direct delivery, cross dock, or distribution: which has the lowest handling cost? - Correct Ans-direct delivery direct delivery, cross dock, or distribution: which has very high facility investment? - Correct Ans-distribution center What is capacity planning? Why is it used? - Correct Ans-the process of establishing the output rate that can be achieved. it is used to match capacity and demand, then figure out errors in their plan What is the equation for utilization? - Correct Ans-(actual output / capacity) x 100% What are the two major categories of forecasting? - Correct Ans-qualitative method and quantitative method What is the qualitative method? - Correct Ans-based on human judgement, opinions, subjective and non-mathematical, can incorporate latest changed in the environment and "inside information", can bias the forecast and reduce forecast accuracy. What is the quantitative method? - Correct Ans-based on mathematics; quantitative in nature, consistent and objective; able to consider much information and data at one time. Often quantifiable data are not available and it is only as good as the data on which they are based T/F Data = historical pattern + random variation - Correct Ans-true T/F random variation can be predicted - Correct Ans-false What are the historic patterns to be forecasted? - Correct Ans-level (long term average), trend (data exhibits an increasing or decreasing pattern), seasonality (any pattern that repeats itself and is a constant length), and a cycle (pattern created by economic fluctuations) Level/Horizontal pattern chart - Correct Ans-data follows a horizontal pattern around the mean (continuously going up and down between each period) Trend pattern chart - Correct Ans-data is progressively increasing or decreasing over time Seasonal Pattern chart - Correct Ans-data exhibits a regularly repeating pattern (increasing and decreasing over multiple periods of time) Cycle pattern chart - Correct Ans-data increases or decreasing over time What is the definition for simple moving average? - Correct Ans-the simple moving average model assumes an average is a good estimator of future behavior What is weighted moving average? - Correct Ans-permits an unequal weighing on period time periods