Comprehensive SCM 300 Exam 1 study
guide
Supply Chain Management (SCM) -Correct Answer-the effective and efficient integration of the suppliers,
manufacturers, transportation organizations, and any other party responsible for collectively bringing
products to market
Procurement -Correct Answer-This is known as the purchasing branch of a company. They're responsible
for getting materials, equipment, products, and services for their company. They have to find suppliers,
choose the one that gives the best value, negotiate purchase terms, place orders, and develop a long
term relationship with supplier so that consistent quality can be expected from the supplier over a long
period of time
Operations -Correct Answer-Branch of the supply chain responsible for making business processes
effective and efficient. They seek to help the company create high quality products/services while using
the fewest resources possible.
They have to try to do things faster with as few workers and machines as possible and they need to have
things done right before the customer needs them
Logistics -Correct Answer-branch responsible for finding the right transportation and storage partners to
successfully navigate the flow of materials from the point of origin to the final destination
Reverse Logistics -Correct Answer-the management of products that flow backward in the supply chain,
away from the consumer and back in the direction of manufacturers. (the management of materials
moving upstream in the supply chain)
Global SCM -Correct Answer-Effective and efficient management of supply chain partners across multiple
countries
1st-tier suppliers -Correct Answer-a company's direct suppliers. A firm that directly provides
goods/services to a company.
Downstream supply chain -Correct Answer-the direction that points toward the end consumer in a
supply chain. (it goes to the right in the chain)
,In order for supply chains to function and develop, three things must continuously flow: ____________,
_____________, and _________________. -Correct Answer-Materials, Money, and Information
Business Model -Correct Answer-a company's plan for how it will purchase items, transform them,
deliver them, and sell them in an effort to produce a profit
Supply Chain visibility -Correct Answer-the ability to see what is happening with inventory upstream and
downstream in a supply chain.
You want to be able to predict and account for the demand before you need it and how much will get
there by a certain time. the ability to do this is inventory/supply chain visibility
Profit's relationship to SCM -Correct Answer-Profit = Revenue - Cost
Costs involved in Supply chain include: materials, labor, energy, transportation, packaging, storage,
defects, insurance...
Competitive priorities -Correct Answer-Cost, Quality, Speed, and Flexibility
Tracking performance in cost, quality, speed, and flexibility is vital to knowing whether the company is
meeting its goals in the present and working towards better performance in the future.
Each industry has different competitive priorities.
For example fast food places focus on low cost, average but consistent quality, quick delivery, and
flexibility regarding what you put on a burger.
While sit down restaurants focus on high quality burgers, reasonable delivery times, specialty burger,
and charge a higher price
Core competencies -Correct Answer-primary advantages a company has over its competitors. Typically a
core competency is extremely difficult or near impossible to replicate
,Productivity vs. Value -Correct Answer-Value= output purchased / inputs used to purchase the products
or service.
Value can be increased by giving the customer more for the same price, or by giving them the same
amount at a lower price.
Ex: amt of soup / $ paid for the soup
Productivity= The ratio of outputs to inputs. From a manufacturing perspective companies seek to
maximize the amount of outputs that can be produced and delivered to market while minimizing the
required inputs. Productivity is a relative term, so typically it can only be compared to the productivity of
periods that precede the present productivity.
Ex: if you make 200 of something and each one of it valued at $10 and the material cost were $1000
total to create them all the productivity would be the {amt (200) * the value ($10)} / the total cost to
make them ($1000) = 2000/1000= Productivity = 2
Primary Supply Chain Goals -Correct Answer-goal is effectiveness, efficiency, and adaptability. To make
high quality products in a timely fashion while meeting the needs of a customer.
Seven types of waste -Correct Answer-Defects, overproduction, transportation, motion, waiting,
inventory, overprocessing
Keys to being a successful SC Manager -Correct Answer-Satisfy the needs of the customer, satisfy the
needs of the company, be prepared for the future
SC Strategy -Correct Answer-Understand the product/service and the market desires, develop a business
model, organize the right group of supply chain partners
SC Tools -Correct Answer-supply chain metrics, information technology tools, relationship management
skills, financial resources, organizational integration
, Anatomy story: -Correct Answer-The human body is a system where each part of the body functions
interdependently. The body is strong, lean, and flexible. By understanding the anatomy of the human
body scientist have been able to prolong human life and increase athletic performance.
Supply chain is just like this because the supply chain focuses on getting thins, making, things, and
moving things and to understand how to build a better chain you also need to know and understand the
parts and how they interact with each other.
For sandwich factors to consider= -Correct Answer-Purchasing: where will we buy stuff for it
Manufacturing and Operations: if we have all of the ingredients, how will we make the sandwich, what
will it take, how will we clean it up, will we save some for tomorrow
Transportation and Logistics: Now we need to prep that sandwich to travel. what will we use, how will
we keep it cool etc.
Supply chain management is a place where what matters? -Correct Answer-purchasing, operations, and
logistics are what matters.
Supply chain managers think about what? -Correct Answer-buying things, making things, moving things
making them better, making them faster, and doing it with minimal waste.
2nd-tier suppliers -Correct Answer-A firm that provides goods/services to a company's first-tier supplier
____ tier suppliers get the stuff first then transport that to ____ tier suppliers -Correct Answer-2nd; 1st
Upstream supply chain -Correct Answer-the direction that points toward the suppliers in a supply chain
(the left/backwards)
ROI's relationship to SCM: -Correct Answer-ROI= An economic measure that helps evaluate the return of
an investment.
