SCM 410 Exam
supply chain correct answersA set of three or more entities (organizations or individuals) directly
involved in the upstream and downstream flows of products, services, finances, and/or information from
a source to a customer.
Supply Chain Orientation correct answersThe recognition by an organization of the systemic, strategic
implications of the tactical activities involved in managing the various flows in a supply chain
Supply Chain Management correct answersincludes all of the logistics management activities noted
above, as well as manufacturing operations, and it drives coordination of processes and activities with
and across marketing, sales, product design, finance and information technology. includes coordination
and collaboration with channel partners, which can be suppliers, intermediaries, 3PLs, and customers.
Encompasses the planning and management of all activities involved in sourcing and procurement,
conversion, and all logistics management activities and also includes coordination and collaboration with
channel partners, which can be suppliers, intermediaries, 3PLs, and customers.
Logistics correct answersIn its simplest form, includes inbound logistics of materials management as well
as the outbound logistics of physical distribution.
Materials Management correct answersThe movement and management of materials and products from
procurement (suppliers) through the production process.
Physical Distribution correct answersThe movement and storage functions associated with finished
goods from manufacturing plants to warehouses and to customers.
Supply Chain Network correct answersNetwork facilities (plants, DCs, terminals, etc.) and the supporting
transportation services have always been considered important.
Complexity correct answersSupply chain have become increasingly complex for firms in terms of number
of SKUs, customer/supplier locations, transporting, trade regulations, and taxes.
,Postponement correct answersA strategy that minimizes risk by delaying further investment into a
product until the least possible moment (time, place, and/or form)
Inventory deployment correct answersan important consideration for supply chains because of the
associated costs and related opportunities for increased efficiency.
Information correct answersThe technology and communication system that are available to supply
chain organizations today lead to the collection and storage of vast amounts of data.
Cost and Value correct answersIn today's environment, it is no longer "companies competing against
companies" instead it is "supply chains competing against supply chains."
Organizational Relationship correct answersSCM requires eliminating traditional functional silos within
organizations and necessitates collaboration with external suppliers, customers, and 3PLs.
Performance Measurement correct answersMost companies have adopted performance metrics or
measures in order to analyze and evaluate their efficiency/progress over different time periods.
Technology correct answersThe necessary approach is analyze and adjust/change processes, educate
involved people, then select and implement technology to facilitate the process changes.
Transportation Management correct answersthe "glue" that makes the supply chain model function.
Transportation plays a large role in making all the SC "rights" happen.
Supply Chain Security correct answersThe safe, reliable delivery of products is expected of supply chains;
however, globalization has increased risk of interruptions or shutdowns of supply chains.
Seven R correct answersGetting the right product to the right customer, in the right quantity, in the right
condition, at the right place, at the right time, and the right cost.
Customer Perspective
, CSCMP correct answersThat part of the supply chain process that plans, implements, and controls the
efficient, effective flow and storage of goods, services, and related information from the point-of-origin
to the point-of-consumption in order to meet customers' requirements
Transportation correct answersImportant component of the overall supply chain since it serves as a
physical link among the various supply chain companies (i.e., "glue" for the supply chain).
Storage correct answersInvolves two separate, but closely related activities: inventory management and
warehousing.
Warehousing correct answersWhat functions will be performed, how many warehouses are needed,
where to locate these warehouses, and what size of warehouses.
Materials Handling correct answers_______ is important in warehouse design and efficient warehouse
operations and equipment
Inventory Control correct answersInventory can be found in manufacturing facilities and warehouses.
Inventory control has two dimensions:
Assuring Adequate Inventory Levels correct answersRequires monitoring current inventory levels and
placing replenishment orders or scheduling production to bring inventory levels up to a predetermined
level.
Order Fulfillment correct answersCritical to logistics because of lead time (i.e., elapsed time from when a
customer places an order until they receives satisfactory fulfillment of that order) The four basic
processes/activities of order fulfillment (that also affect lead time) are order transmittal, order
processing, order preparation, and order delivery.
Forecasting correct answersLogistics personnel should develop inventory forecasts in conjunction with
marketing forecasts of demand to assure that proper inventory levels are maintained.
Production Planning correct answersExcess inputs/outputs create unnecessary inventory, while excess
capacity leads to higher than necessary production costs. Shortages of inputs will reduce the outputs
and capacity shortages lead to overworking.
