What is SCM and why is it important? correct answers art of managing the flow of materials, products, information, & financial resources from source to user
important to maintain & improve the efficiency of a company
BETTER, FASTER, CHEAPER and provides valuable opportunities to create compet...
SCMN 3150 Exam 1 || with Accurate Answers 100%.
What is SCM and why is it important? correct answers art of managing the flow of materials,
products, information, & financial resources from source to user
important to maintain & improve the efficiency of a company
BETTER, FASTER, CHEAPER and provides valuable opportunities to create competitive
advantage (main driving force of SCM)
Who are the key participants in SCM? correct answers Suppliers, manufacturers, distributors,
retailers, consumers
What are the primary processes of SCM? correct answers planning, procurement, production,
distribution, customer interface
Who is the most important participant in SCM? correct answers Consumers
_________________ demand drives everything we do
What does SCM involve? correct answers All the activities that take place to get a product in
your hands - from the time of raw materials extraction to the minute you pull out your credit card
and take the final product home.
Why is SCM important to customers? correct answers Product Availability
Fulfillment Accuracy
Why is SCM important to companies? correct answers SCM helps companies outperform
competition by managing their materials, product, and information flows.
(All flows can be the most important depending on the situation)
What are the goals of SCM? correct answers Customer care, competitiveness, efficiency,
responsiveness, resiliency.
How can organizations build competitive advantage via SCM? correct answers Develop
collaborative, trusting relationships. Improve customer satisfaction. Rationalize product touch
points. Drive out costs and achieve tremendous efficiencies.
Link correct answers transportation method used to connect nodes (plants, warehouses, stores) in
a supply chain
Node correct answers fixed point in a supply chain where valued added processes take place
goods are processed, transformed, mixed, held, or sold at ________s
, What value-adding process takes place at supply chain nodes? correct answers Incoming
materials are converted into a more valuable state (quantity, assortment, form) to meet
downstream customer needs.
Centralized networks correct answers single node controls customer interaction, flow of goods &
other key activities on a national basis & the network is designed around it
ex: L.L. Bean
National Distribution
- Lower inventory investment
- Lower safety stock levels
- Lower inbound transportation cost
- Higher outbound transportation cost
- effective service levels
Decentralized networks correct answers Regional distribution: each node controls customer
interaction, flow of goods & other key activities within its region
similar activities take place at multiple regional nodes that make up the overall network
Direct Distribution correct answers A channel of distribution in which goods and services move
directly from the producer to the consumer or industrial user
Higher transport cost
Minimal Inventory (higher risk of items being out of stock)
No backup
Very low handling costs
No facility investment
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