SCMN 3710 EXAM 1 (Strickland)
QUESTIONS AND ANSWERS
What external change drivers have had the most impact on the development of
global supply chains in the 21st century? - Answer- a. Technology
Describe the evolution from the physical distribution concept of the 1960s to the
integrated logistics concept of the 1980s to the supply chain concept of today -
Answer- a. Supply chains are extended enterprises which require managing four
flows—products, information, financials (cash), and demand on a collaborative basis.
What is meant by extended enterprise? - Answer- is a loosely coupled, self-
organizing network of firms that combine their economic output to provide products
and services offerings to the market
What are the 3 two-way supply chain flows (not demand)? - Answer- a. PRODUCT
FLOW
i. Physical movement of goods and materials
b. INFORMATION FLOW
i. Enabling physical flow of products
ii. Decision making
iii. Supply chain collaborations
c. CASH FLOW
i. Management of working capital
Which retailer was #1 in sales in 2017 (as well as 2000 & 2010)? - Answer- a.
Walmart
Explain how absolute advantage and comparative advantage provide a rationale for
global trade. - Answer- a. Absolute advantage
i. Lower cost and/or access to items not available locally
b. Comparative advantage
i. Differences in the cost of producing products in different countries
Explain how population size and distribution, urbanization, land and resources,
technology and information, and the globalized economy affect global trade. -
Answer-
What is the most populous country in the world and which one is expected to be the
most populous by 2050? - Answer- a. China is the most populated country, but India
will be more populated by 2050
What is a megacity? - Answer- a. A very large city, typically one with a population of
over ten million people.
What % of the world's population is projected to be living in urban areas by 2030? -
Answer- a. 60% will live in urban areas
, What is the USA's trade deficit overall and how much of it is with China? - Answer-
The U.S. goods and services trade deficit with China was $335.4 billion in 2017.
China is currently our largest goods trading partner with $635.4 billion in total (two
way) goods trade during 2017. Goods exports totaled $129.9 billion; goods imports
totaled $505.5 billion.
Which countries are the top U.S. trading partners from both an import and export
perspective? - Answer- a. China, Canada, and Mexico
Explain the balancing act of maintaining security without shutting down global trade
flows in the face of the risk of terrorism. - Answer-
What is NAFTA, and what is its current state? - Answer- a. NAFTA establishes free
trade among Canada, the United States, and Mexico.
b. NAFTA's goals involve making structural changes to operate a borderless logistics
network in North America.
What is the definition of logistics from a business perspective and how does this fit in
to the supply chain concept? - Answer- a. Part of supply chain that plans,
implements, and controls the flow and storage of goods, services, and related
information. In order for the supply chain to operate smoothly, you have to each part
in line.
What are the utilities of time, place, quantity, form, and possession, and how do they
fit with logistics, manufacturing, and marketing? - Answer- a. Generally,
production/manufacturing activities are credited with providing form utility; logistics
activities with time, place, and quantity utilities; and marketing activities with
possession utility.
What is the magnitude of logistics spending in the U.S., and how much of it is for
transportation? - Answer- a. 1,449 billion and 702 billion is spent on transportation
What level are logistics costs relative to GDP? - Answer- a. 8-10 percent GDP
Explain the interface of logistics with manufacturing, marketing, accounting and
finance. - Answer- a. Manufacturing
i. Length of the production run
ii. Available quantity of raw material and component
iii. Industrial packaging
b. Marketing (4 Ps Marketing Mix)
i. Price e.g. purchase quantity discounts
ii. Product e.g. size, shape, weight, packaging
iii. Promotion
iv. Place (distribution channel selection)
c. Accounting
i. Cost information for analysis of alternative logistics options
ii. Supply chain tradeoffs and performance measurement
d. Finance
i. Inventory
QUESTIONS AND ANSWERS
What external change drivers have had the most impact on the development of
global supply chains in the 21st century? - Answer- a. Technology
Describe the evolution from the physical distribution concept of the 1960s to the
integrated logistics concept of the 1980s to the supply chain concept of today -
Answer- a. Supply chains are extended enterprises which require managing four
flows—products, information, financials (cash), and demand on a collaborative basis.
What is meant by extended enterprise? - Answer- is a loosely coupled, self-
organizing network of firms that combine their economic output to provide products
and services offerings to the market
What are the 3 two-way supply chain flows (not demand)? - Answer- a. PRODUCT
FLOW
i. Physical movement of goods and materials
b. INFORMATION FLOW
i. Enabling physical flow of products
ii. Decision making
iii. Supply chain collaborations
c. CASH FLOW
i. Management of working capital
Which retailer was #1 in sales in 2017 (as well as 2000 & 2010)? - Answer- a.
Walmart
Explain how absolute advantage and comparative advantage provide a rationale for
global trade. - Answer- a. Absolute advantage
i. Lower cost and/or access to items not available locally
b. Comparative advantage
i. Differences in the cost of producing products in different countries
Explain how population size and distribution, urbanization, land and resources,
technology and information, and the globalized economy affect global trade. -
Answer-
What is the most populous country in the world and which one is expected to be the
most populous by 2050? - Answer- a. China is the most populated country, but India
will be more populated by 2050
What is a megacity? - Answer- a. A very large city, typically one with a population of
over ten million people.
What % of the world's population is projected to be living in urban areas by 2030? -
Answer- a. 60% will live in urban areas
, What is the USA's trade deficit overall and how much of it is with China? - Answer-
The U.S. goods and services trade deficit with China was $335.4 billion in 2017.
China is currently our largest goods trading partner with $635.4 billion in total (two
way) goods trade during 2017. Goods exports totaled $129.9 billion; goods imports
totaled $505.5 billion.
Which countries are the top U.S. trading partners from both an import and export
perspective? - Answer- a. China, Canada, and Mexico
Explain the balancing act of maintaining security without shutting down global trade
flows in the face of the risk of terrorism. - Answer-
What is NAFTA, and what is its current state? - Answer- a. NAFTA establishes free
trade among Canada, the United States, and Mexico.
b. NAFTA's goals involve making structural changes to operate a borderless logistics
network in North America.
What is the definition of logistics from a business perspective and how does this fit in
to the supply chain concept? - Answer- a. Part of supply chain that plans,
implements, and controls the flow and storage of goods, services, and related
information. In order for the supply chain to operate smoothly, you have to each part
in line.
What are the utilities of time, place, quantity, form, and possession, and how do they
fit with logistics, manufacturing, and marketing? - Answer- a. Generally,
production/manufacturing activities are credited with providing form utility; logistics
activities with time, place, and quantity utilities; and marketing activities with
possession utility.
What is the magnitude of logistics spending in the U.S., and how much of it is for
transportation? - Answer- a. 1,449 billion and 702 billion is spent on transportation
What level are logistics costs relative to GDP? - Answer- a. 8-10 percent GDP
Explain the interface of logistics with manufacturing, marketing, accounting and
finance. - Answer- a. Manufacturing
i. Length of the production run
ii. Available quantity of raw material and component
iii. Industrial packaging
b. Marketing (4 Ps Marketing Mix)
i. Price e.g. purchase quantity discounts
ii. Product e.g. size, shape, weight, packaging
iii. Promotion
iv. Place (distribution channel selection)
c. Accounting
i. Cost information for analysis of alternative logistics options
ii. Supply chain tradeoffs and performance measurement
d. Finance
i. Inventory
