SCMN 3730 Exam 1 Study Guide Questions and Answers Graded A 2024
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Course
SCMN 3730
Institution
SCMN 3730
What are the features of the new model of progressive purchasing? -Answer- -developing closer relationships with important suppliers
-performing due diligence on suppliers before awarding longer term contracts
-conducting worldwide internet searches for the best sources of supply
-inviting key s...
SCMN 3730 Exam 1 Study Guide
Questions and Answers Graded A 2024
What are the features of the new model of progressive purchasing? -Answer- ✔-
developing closer relationships with important suppliers
-performing due diligence on suppliers before awarding longer term contracts
-conducting worldwide internet searches for the best sources of supply
-inviting key suppliers to participate in product and process development.
What index does ISM issue monthly, and what does a score of 50 represent? -Answer-
✔A change index report on business
A score of 50 means the market is neither expanding nor contracting
What is a value chain composed of? -Answer- ✔Primary and secondary support
activities that can lead to competitive advantage
What is meant by extended enterprise? -Answer- ✔A company does not operate in
isolation because its success is dependent upon a network of partner relationships
Direct Materials -Answer- ✔Items provided by suppliers and used directly during
production or service delivery; specific in making a product and its final form
What are all the functional management activities under the Supply Chain umbrella? -
Answer- ✔Purchasing
Inbound transportation
Quality control
Demand and supply planning
Receiving, materials handling, and storage
Material or inventory control
Order processing
Production planning, scheduling, and control
Shipping/Warehousing/Distribution
Outbound transportation
Customer service
What is the average percentage of purchases to sales in the manufacturing sector? -
Answer- ✔In manufacturing, purchased content is more than 55% of revenues
Explain the relationship between outsourcing and core competencies. -Answer- ✔Buyer
focuses on core competencies and outsources non-core activities and materials
What is the difference between Purchasing / Procurement and Supply Management? -
Answer- ✔Supply management is a more broad concept than purchasing
SCMN 3730 Exam 1
, SCMN 3730 Exam 1
What is the difference between a supply chain and a value chain? -Answer- ✔The value
chain is the entire production chain, and the supply chain is just a portion or subset of
the value chain process
What is meant by the term process approach? -Answer- ✔Identifying, evaluating,
selecting, managing, and developing suppliers to improve performance & moving
across functional area boundaries
What is meant by the term cross-functional? -Answer- ✔Sharing information
Suppliers as an extension of the buying company
What is meant by the term 3PL? -Answer- ✔Third party logistics
an independent logistics provider that performs any or all of the functions required to get
a client's product to market
What is meant by maverick spending? -Answer- ✔-User selects different supplier than
supply management has approved
-May be acceptable when there is small chance of risk
-Loss of opportunity to control cost and/or leverage purchase volume
-Exposes firm to greater risk
What are the steps in the purchasing cycle? -Answer- ✔Identify user requirements
Evaluate user needs effectively and efficiently
Identify suppliers to meet that need
Develop agreements with suppliers
Develop ordering mechanism
Ensure payment occurs promptly
Ascertain that need was effectively met
Drive continuous improvement
Under what circumstances would a spot buy be appropriate? -Answer- ✔when an
internal customer has a need that comes up suddenly, which is not planned for and for
which there is no preexisting supplier identified to provide the product or service
required.
What are the required elements of a purchase requisition? -Answer- ✔Description of
required material or service
Quantity required
Estimated unit cost
Operating account to be charged
Date of requisition
Date required
Authorized signature
SCMN 3730 Exam 1
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