SCMN 2150 Brian Gibson test 1 Questions and Answers Already Passed

SCMN 2150 Brian Gibson test 1 Questions and Answers Already Passed What is Supply Chain Management? the art of managing the flow of materials, products, information, and financial resources from source to user. Why is SCM important? (4) It provides valuable opportunities to create competitive advantage: 1. develop collaborative, trusting relationships 2. rationalize product touch points 3. drive out costs and achieve tremendous efficiencies 4. improve customer satisfaction Competitive advantage: requires delivering more value and satisfaction to target consumers than competitors Who participates in SCM? (5) Suppliers, manufacturers, distributors, retailers, consumers Primary processes of SCM: Plan, Buy, Make, Move (purchasing, production, distribution) What are the goals of SCM? Customer care, competitiveness, efficiency, responsiveness and resilience; these goals focus on making BETTER, FASTER, AND CHEAPER, MORE RESPONSIVE supply chains than your competition. Lower Cost + Higher Sales = _________? Greater Profits 7 Principles of SCM 1. Segment customers based on service needs 2. Customize the logistics network 3. Drive operations from demand 4. Differentiate product closer to the customer 5. Source strategically 6. Develop supply chain-wide technology strategy 7. Use supply chain spanning performance measures How can an organization build competitive advantage via SCM? (6) 1. Cost (be low cost provider) 2. Quality (defect free products and services) 3. Speed (fast response time) 4. Reliability (consistent order cycle time) 5. Adaptability (deal with changing demand) 6. Flexibility (able to offer variety) Node a fixed point in a supply chain where goods are processed, mixed, held, or sold. (plants, warehouses) Links the transportation method used to connect the nodes in a supply chain. Centralized network Management decision making authority is held by a core group of managers at a single node in the supply chain, as opposed to multiple nodes. The single node controls customer interaction, the flow of goods, and other key activities on a national basis. Centralized networks create (5): lower