BMGT372 Exam 1 || Possible Questions Accurately Answered.
Define SCM correct answers consists of firms collaborating to leverage strategic positioning and
to improve operating efficiency.
What is the primary goal of supply chains today? correct answers Primary goal: customer service
OR efficiency and effectiveness
Enabler of SC: information technology
What does a SC consist of? correct answers •Maintaining product flow in the face of disruption
or disaster
•Sourcing goods in a cost-effective manner without exploitation
•Managing your firm's reputation when your channel partners fail
•Adapting to change in global market
•Learning how to compete in foreign markets
•Maintaining competitive advantage
What is the overarching goals of SCM correct answers efficiency and effectiveness.
concept of flows correct answers What flows: financial, physical, information
Nature of flows: bi-directional (processes, communication), interrelated, constant
What is the significance of dependency in chains?
or what does " "Supply chains are a strategic choice" mean? correct answers SC represents a
strategic choice by those participating in it. It is a group effort and every party is working
together for a common purpose.
,Therefore, we would like to have as much cooperation, coordination, and communication as
possible
What is the proper level of optimality when considering the elements and components of a
supply chain? correct answers Proper level of optimality: doesn't matter if you optimize a level
of the SC if you fail to optimize the entire supply chain
Focus on more than just the focal firm
What are the primary types of utility provided by an efficient and effective supply chain? correct
answers 1. Locational utility: Decisions on location have a direct impact on the movement of
products, distances traveled, cost of transportation, the ability to quickly respond to markets, and
ultimately customer satisfaction
2. Time/Place utility: transportation enables logistics to provide place utility
*form utility is created in manufacturing- SC is responsible to maintain the form, not create it
What are the components or functional elements of supply chains. correct answers suppliers -
manufacturers - distributors - retailers - customers
Components of logistics: order management, inventory, transportation, warehousing, materials
handling, packaging
Define systems approach to studying supply chain management. correct answers Systems
approach: systems that exist within firm, the enterprise and the channel aka the entire SC
ex. Functional areas- production, finance, HR, marketing
Systems integration:
•Decision making and activities are coordinated
, •Communications is effective and constant
•Coordination is maximized
•Cooperation is achieved
What are the primary concerns or goals of the systems approach? correct answers 1. Focus on
total cost: want to have a SC that is designed to operate at the lowest possible cost given a
particular level of CS
2. Take advantage of trade-offs: if trying to create some level of optimality, focus on the entire
SC not just the focal firm
3. Avoid sub-optimization: overachieving in one area may be detrimental to the SC as a whole
Know the benefits of an integrated supply chain correct answers Integration facilitates efficiency
and effectiveness. Integration within the channel of distribution should result in lower costs,
higher profits, higher levels of customer service because it:
1. Eliminates duplicate or non-productive work
2. Creates specialization of activities by firms within channel
3. Synergies and system cooperation
Understand why integration is difficult to achieve. correct answers 1. Firms revert to a "me first"
attitude - focus on own goals, not channel goals
2. Not confident that all members would profit equally- mistrust
Define "functional shiftability." correct answers functional shiftability: you can shift the function
but you can't eliminate the function
ex. You can't eliminate the middleman if they add value to the SC process
Define the bullwhip effect. correct answers Bullwhip effect characteristics: distortion of
information about true customer demand- inaccurate information moves up the SC
Define SCM correct answers consists of firms collaborating to leverage strategic positioning and
to improve operating efficiency.
What is the primary goal of supply chains today? correct answers Primary goal: customer service
OR efficiency and effectiveness
Enabler of SC: information technology
What does a SC consist of? correct answers •Maintaining product flow in the face of disruption
or disaster
•Sourcing goods in a cost-effective manner without exploitation
•Managing your firm's reputation when your channel partners fail
•Adapting to change in global market
•Learning how to compete in foreign markets
•Maintaining competitive advantage
What is the overarching goals of SCM correct answers efficiency and effectiveness.
concept of flows correct answers What flows: financial, physical, information
Nature of flows: bi-directional (processes, communication), interrelated, constant
What is the significance of dependency in chains?
or what does " "Supply chains are a strategic choice" mean? correct answers SC represents a
strategic choice by those participating in it. It is a group effort and every party is working
together for a common purpose.
,Therefore, we would like to have as much cooperation, coordination, and communication as
possible
What is the proper level of optimality when considering the elements and components of a
supply chain? correct answers Proper level of optimality: doesn't matter if you optimize a level
of the SC if you fail to optimize the entire supply chain
Focus on more than just the focal firm
What are the primary types of utility provided by an efficient and effective supply chain? correct
answers 1. Locational utility: Decisions on location have a direct impact on the movement of
products, distances traveled, cost of transportation, the ability to quickly respond to markets, and
ultimately customer satisfaction
2. Time/Place utility: transportation enables logistics to provide place utility
*form utility is created in manufacturing- SC is responsible to maintain the form, not create it
What are the components or functional elements of supply chains. correct answers suppliers -
manufacturers - distributors - retailers - customers
Components of logistics: order management, inventory, transportation, warehousing, materials
handling, packaging
Define systems approach to studying supply chain management. correct answers Systems
approach: systems that exist within firm, the enterprise and the channel aka the entire SC
ex. Functional areas- production, finance, HR, marketing
Systems integration:
•Decision making and activities are coordinated
, •Communications is effective and constant
•Coordination is maximized
•Cooperation is achieved
What are the primary concerns or goals of the systems approach? correct answers 1. Focus on
total cost: want to have a SC that is designed to operate at the lowest possible cost given a
particular level of CS
2. Take advantage of trade-offs: if trying to create some level of optimality, focus on the entire
SC not just the focal firm
3. Avoid sub-optimization: overachieving in one area may be detrimental to the SC as a whole
Know the benefits of an integrated supply chain correct answers Integration facilitates efficiency
and effectiveness. Integration within the channel of distribution should result in lower costs,
higher profits, higher levels of customer service because it:
1. Eliminates duplicate or non-productive work
2. Creates specialization of activities by firms within channel
3. Synergies and system cooperation
Understand why integration is difficult to achieve. correct answers 1. Firms revert to a "me first"
attitude - focus on own goals, not channel goals
2. Not confident that all members would profit equally- mistrust
Define "functional shiftability." correct answers functional shiftability: you can shift the function
but you can't eliminate the function
ex. You can't eliminate the middleman if they add value to the SC process
Define the bullwhip effect. correct answers Bullwhip effect characteristics: distortion of
information about true customer demand- inaccurate information moves up the SC
