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SCM Exam 1 Questions & Answers 2024/2025

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SCM Exam 1 Questions & Answers 2024/2025 Supply Chain - ANSWERSall stages involved, directly or indirectly, in fulfilling a customer/consumer request for a tangible good or service What Does the Supply Chain Include? - ANSWERS- manufacturers - suppliers - transporters - warehouses - ret...

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  • 18 octobre 2024
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  • 2024/2025
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  • SCM
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SCM Exam 1 Questions & Answers
2024/2025

Supply Chain - ANSWERSall stages involved, directly or indirectly, in fulfilling a customer/consumer
request for a tangible good or service



What Does the Supply Chain Include? - ANSWERS- manufacturers

- suppliers

- transporters

- warehouses

- retailers

- customers



3 Inconvenient Truths of SCM - ANSWERS1. Every organization must make a product or provide a service
that has VALUE to someone



2. Most organizations are part of larger supply chains



3. Organizations must carefully manage their operations to prosper can survive



What the Supply Chain Includes Within and Organization - ANSWERSall functions involved in receiving
and filling a customer's request



Characteristics of the Supply Chain - ANSWERS- dynamic

- constant flow of info, product, and money between diff. stages in the chain



Objective of the Supply chain - ANSWERSto maximize overall value generated

,Value - ANSWERSdifference between the value of the final product to the customer and the costs the
supply chain incurs in filling the customer's request



What determines price and what determines value? - ANSWERS- companies determine price

- customers determine value

**happy customers determine revenue**



Supply Chain Profitability - ANSWERSdifference between the revenue generated by the customer and
overall cost across the supply chain



- at the end of every supply chain, you must have a customer who is willing to pay



Customer Surplus - ANSWERSdifference between the value of the product and its price



Supply Chain Surplus Formula - ANSWERSCustomer Value - Supply Chain Cost



Supply Chain Decisions - ANSWERS- critical to business success

- connection between design and management of supply chain flows (product, info, money) and the
success of the supply chain



Failure of Businesses? - ANSWERScan be attributed to an inability to design appropriate supply chains or
effectively manage supply chain flows



Strategic Planning - ANSWERS- planning at the highest levels of an organization to address needs that
might not present themselves until years in the future



> brick and mortar and major process decisions are made at this level

> high risk



Tactical Planning - ANSWERS- shorter-term planning

,- usually projecting 12-24 months out

- planning horizon can be longer than 12-24 months if company is in an industry with very long lead
times



> typically more detailed

> constrained by longer-term strategic decisions

> includes workforce, inventory, subcontracting, and logistics decisions

> planning numbers are somewhat aggregated (monthly)

> moderate risk



Operational Planning (a.k.a. Detailed Planning and Control) - ANSWERS- planning that covers time
periods from hours to weeks out



> limited ability to adjust capacity

> lowest risk



Decision Phases in a Supply Chain - ANSWERS1. Supply Chain Strategy or Design

2. Supply chain planning

3. Supply chain operations



Supply Chain Strategy/Design (Strategic Plan) - ANSWERScompany decides how to structure its supply
chain over the coming several years (long-term), including its main configuration, allocation of resources,
and processes to be performed at each stage



What happens during Strategic Plan stage? - ANSWERS- define objectives and capabilities

- Decision Would Include

> locations of facilities

> products to be made or stored

> outsourcing

> strategic partnerships

, > choice of suppliers

> transportation

> technology usage



Supply Chain Planning (Tactical Plan) - ANSWERS- time frame is 3 months to 1 year (intermediate term)

- establishes constraints in which planning must be done



What happens during Tactical Plan stage? - ANSWERS- configuration in this stage is fixed

- make decisions defining how capacity is used to meet demand

- goal: to maximize the supply chain surplus that can be generated over the planning horizon given
established constraints

- Decisions Would Include

> which markets to supply from which locations

> inventory policies

> timing and size of market promotions

> subcontracting options



Supply Chain Operation (Operational Plan) - ANSWERS- plannes in weekly or daily increments (short-
term)

- companies make decisions regarding individual customer order



What happens during Operational Plan stage? - ANSWERS- configuration is fixed and planning policies
are defined

- goal: to handle incoming orders in the best possible manner

- Decisions Would Include

> allocation of order to inventory or production

> generation of pick lists

> allocation of orders to specific shipments

> order dates and delivery schedules

> placement of replenishment orders

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