Updated SCMN 3150 Brian Gibson test 1 || A+ Verified
Solutions.
What is Supply Chain Management? correct answers the art of managing the flow of materials,
products, information, and financial resources from source to user.
Why is SCM important? (4) correct answers 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
Why is SCM important to customers? correct answers it enhances product availability, promotes
customer satisfaction, and encourages retention
How does SCMN facilitate utility? correct answers time utility, place utility, and form utility
What are the seven rights to fulfillment accuracy (customers expectations? correct answers right
product
right customer
right time
right place
right condition
right quantity
right cost
Competitive advantage: correct answers requires delivering more value and satisfaction to target
consumers than competitors
Who participates in SCM? (5) correct answers Suppliers, manufacturers, distributors, retailers,
consumers
Primary processes of SCM: correct answers Plan, Buy, Make, Move (purchasing, production,
distribution)
What are the goals of SCM? correct answers 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 = _________? correct answers Greater Profits
7 Principles of SCM correct answers 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
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) correct answers How can an organization build competitive
advantage via SCM? (6)
Node correct answers a fixed point in a supply chain where goods are processed, mixed, held, or
sold. (plants, warehouses)
Links correct answers the transportation method used to connect the nodes in a supply chain.
Value-added process in Supply Chain nodes correct answers Inbound materials and labor and
other resources are moved into the system. Manufacturers use materials, equipment, labor,
capacity, and other inputs to transfer parts and components into a more valuable output (a
product, like a computer)
Centralized network correct answers 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): correct answers lower safety stock, lower overhead cost
(factories, supervisors, managers), longer lead times, higher delivery cost, inefficiencies.
Decentralized network correct answers Management decision making authority is given to the
managers at (multiple) individual nodes in the supply chain. Each node controls customer
interaction, the flow of goods, and other key activities within its region.
Decentralized networks create (6): correct answers more safety stock, high overhead cost, short
lead times, customer service, low delivery costs, few economies of scale
Centralized vs. Decentralized Characteristics correct answers Centralized:
Distribution- national
Inventory investment- lower
safety stock- lower
inbound transportation costs- lower
