©Jason McConnel 2025 ALL RIGHTS RESERVED.
SCMN Exam 1 Questions With Correct
Answers A+
Supply Chain management - Answer✔the art of managing the flow of materials and products,
information, and financial resources from source to user
5 primary groups of supply chain management - Answer✔suppliers, manufacturers, distributors,
retailers, consumers
Who is the most important participant in the supply chain - Answer✔the consumer
What does SCM involve? - Answer✔All activities that take place to get a product in your hands-
from raw material extraction to the minute you pull out your credit card and take the final
product home
Supply chain management is important because - Answer✔it provides valuable opportunities to
create competitive advantage, develop collaborative, trusting relationships, improve customer
satisfaction, rationalize product touch points, and drive out costs and achieve efficiencies
Why is SCM important to customers? - Answer✔Product availability (time utility and place
utility) and fulfillment accuracy (the seven rights)
What are the seven rights? - Answer✔Right product, right customer, right time, right place, right
condition, right quantity, and right cost
Why is SCM important to companies? - Answer✔It helps companies outpace the competition by
managing their materials, products, and information flows (better, faster, cheaper)
Key goals of SCM - Answer✔customer car, competitiveness, efficiency, responsiveness,
resiliency
What does SCM focus on? - Answer✔Planning and forecasting, supply management and
procurement, operations managements and production, and logistics and transportation
Three flows of supply chain - Answer✔share the information (create visibility), deliver the
product (drive utility), and show me the money (release funds)
What are the challenges of SCM? - Answer✔Product life cycles are shrinking, customers are
demanding customized products, competition is intensifying, and companies need to be much
more efficient
, ©Jason McConnel 2025 ALL RIGHTS RESERVED.
7 principles of SCM - Answer✔segment customers based on service needs, customize the
logistics network, drive operations from demand, differentiate product closer to the customer,
source strategically, develop supply chain wide technology strategy, and use supply chain
spanning performance measures
Node - Answer✔a fixed point in a supply chain where valued added processes take place. Goods
are processed, transformed, mixed, held, or sold at nodes
Link - Answer✔the transformation method used to connect the nodes (plants, warehouses,
stores) in a supply chain
Centralized network design - Answer✔activities are concentrated at a single node. The network
is designed around it (LL Bean)
Decentralized network design - Answer✔similar activities tale place at multiple regional nodes
that make up the overall network (kroger)
Characteristics of a centralized network design - Answer✔national distribution, lower inventory
investment, lower level safety stock, lower cost of inbound transportation, higher cost of
outbound transportation, and effective service levels
Characteristics of a decentralized network design - Answer✔regional distribution, greater
inventory investment, higher safety stock, higher cost of inbound transportation, lower cost of
outbound transportation, highly effective service levels
Direct delivery - Answer✔point-to-point service, higher transportation cost, minimal inventory,
no backup stock, very low handling costs, no facility investment (newspaper)
Cross-dock delivery - Answer✔product mixing service, lower transportation costs, moderate
inventory, no backup stock, low handling costs, low facility investment (meats)
Distribution center delivery - Answer✔storage and fulfillment service, lower transportation
costs, maximum inventory, protected safety stock, high handling costs, very high facility
investment (dog food, auburn tents)
What is the network design process? - Answer✔Determine problem and model, collect and
validate data, develop and model scenarios, evaluate scenario results, take strategic action
What is the objective of network design? - Answer✔To set up an optimal and easily
maintainable supply chain configuration and merchandise flows to enable the supply chain to
best support the business objectives
Key challenges of network design - Answer✔cross- chain visibility, product traceability,
collaboration, and service quality
Key principles of network design - Answer✔customize the logistics network to the service
requirements and profitability of customer segments, seek to minimize TOTAL SUPPLY
CHAIN COST
