SCMT 2103 MARC SCOTT EXAM 2
QUESTIONS WITH CORRECT
ANSWERS
Process: Issuance of Purchase orders. Decision Making - Correct Answers -How much
to purchase? How much and when?
Process: Issuance of Purchase orders. Vendor Communication - Correct Answers -PO's
generated. Orders Transmittal (technology). Example: Electronic data interchange
Process: Issuance of Purchase orders. Order Specifics - Correct Answers -Requires
supply chain objective considered. Qty, price, delivery dates, payment returns
Purchasing: goods and services are either - Correct Answers -direct or indirect goods
Goods that are required to produce, Purchasing raw materials that go into final good or
service - Correct Answers -Direct
Goods that are required to operate smoothly, goods that help the sale of goods and
services - Correct Answers -Indirect
3 types of Buys - Correct Answers -1. Capital Goods 2. Rebuy (standard or modified) 3.
Maintenance, Repair, operation (MRO)
Capital good - Correct Answers -purchasing of a long term asset usually a plant, land,
equipment (a plane for an airline company)
Making: Production Scheduling- What is it? - Correct Answers -"production scheduling
allocates availability capacity (equipment, labor, and facilities) to the work that needs to
be done. The goal is to use available capacity in the most efficient an profitable manner"
Hugos
Making: Production Scheduling- One product per facility: - Correct Answers -run facility
efficiently and produce to level of demand
Making: Production Scheduling- Numerous Products per facility: - Correct Answers -
complexity introduced. each product produced for a period and then switching occurs to
next product
, Rebuy Standard - Correct Answers -doesn't change the type of product or quantity of
product that the company buys on a continual basis
Rebuy Modified - Correct Answers -occurs when the company changes the type or
quantity of goods or services based on seasonal or consumer demand changes
Maintenance, repair, and operating (MRO) - Correct Answers -Necessary to keep
machinery and processes productive, goods that help keep parts of production working
and functioning (air conditioner parts of fulfillment centers
Application of Quadrant technique - Correct Answers -managers asses the importance
of each item being purchased. Categorizes items based on the measure of value and
risk
Value (Profit Potential) - Correct Answers -product features that lead to profits or
competitive advantage
Risk - Correct Answers -the cost associated with not having the item
Item procurement importance Matrix: Distinctives - Correct Answers -High risk- low
value. Engineered items (nuts and bolts on equipment)
Item Procurement Importance Matrix: Generics - Correct Answers -Low risk- low value.
Office supplies. MRO items
Item Procurement Importance Matrix: Critical - Correct Answers -High risk- high value.
Unique Items. Items that are critical to final product
Item Procurement Importance Matrix: Commodities - Correct Answers -Low risk- high
value. Basic production items. Basic packaging. Logistics services
Consumption Management: How much are we using? - Correct Answers -Determine
what and where? Set Expectations.
Consumption management: Determine what and where? - Correct Answers -How much
in each product category type is being bough across an entire organization?
Consumption management: Set Expectations - Correct Answers -Set expected levels of
consumption. Compare against actual levels of consumption.
Consumption management: Principle (consumption above Expectation) - Correct
Answers -consumption above expectations is either a problem or reflects inaccurate
expectations
QUESTIONS WITH CORRECT
ANSWERS
Process: Issuance of Purchase orders. Decision Making - Correct Answers -How much
to purchase? How much and when?
Process: Issuance of Purchase orders. Vendor Communication - Correct Answers -PO's
generated. Orders Transmittal (technology). Example: Electronic data interchange
Process: Issuance of Purchase orders. Order Specifics - Correct Answers -Requires
supply chain objective considered. Qty, price, delivery dates, payment returns
Purchasing: goods and services are either - Correct Answers -direct or indirect goods
Goods that are required to produce, Purchasing raw materials that go into final good or
service - Correct Answers -Direct
Goods that are required to operate smoothly, goods that help the sale of goods and
services - Correct Answers -Indirect
3 types of Buys - Correct Answers -1. Capital Goods 2. Rebuy (standard or modified) 3.
Maintenance, Repair, operation (MRO)
Capital good - Correct Answers -purchasing of a long term asset usually a plant, land,
equipment (a plane for an airline company)
Making: Production Scheduling- What is it? - Correct Answers -"production scheduling
allocates availability capacity (equipment, labor, and facilities) to the work that needs to
be done. The goal is to use available capacity in the most efficient an profitable manner"
Hugos
Making: Production Scheduling- One product per facility: - Correct Answers -run facility
efficiently and produce to level of demand
Making: Production Scheduling- Numerous Products per facility: - Correct Answers -
complexity introduced. each product produced for a period and then switching occurs to
next product
, Rebuy Standard - Correct Answers -doesn't change the type of product or quantity of
product that the company buys on a continual basis
Rebuy Modified - Correct Answers -occurs when the company changes the type or
quantity of goods or services based on seasonal or consumer demand changes
Maintenance, repair, and operating (MRO) - Correct Answers -Necessary to keep
machinery and processes productive, goods that help keep parts of production working
and functioning (air conditioner parts of fulfillment centers
Application of Quadrant technique - Correct Answers -managers asses the importance
of each item being purchased. Categorizes items based on the measure of value and
risk
Value (Profit Potential) - Correct Answers -product features that lead to profits or
competitive advantage
Risk - Correct Answers -the cost associated with not having the item
Item procurement importance Matrix: Distinctives - Correct Answers -High risk- low
value. Engineered items (nuts and bolts on equipment)
Item Procurement Importance Matrix: Generics - Correct Answers -Low risk- low value.
Office supplies. MRO items
Item Procurement Importance Matrix: Critical - Correct Answers -High risk- high value.
Unique Items. Items that are critical to final product
Item Procurement Importance Matrix: Commodities - Correct Answers -Low risk- high
value. Basic production items. Basic packaging. Logistics services
Consumption Management: How much are we using? - Correct Answers -Determine
what and where? Set Expectations.
Consumption management: Determine what and where? - Correct Answers -How much
in each product category type is being bough across an entire organization?
Consumption management: Set Expectations - Correct Answers -Set expected levels of
consumption. Compare against actual levels of consumption.
Consumption management: Principle (consumption above Expectation) - Correct
Answers -consumption above expectations is either a problem or reflects inaccurate
expectations
