SCMN 2150 EXAM 1 REVIEW - STRAW QUESTIONS
AND ANSWERS 2026
What is supply chain? - Answers - An integrated collection of organizations, people,
activities, information, and resources. It includes customers, retailers, manufacturers,
and suppliers.
What is Supply Chain Management - Answers - The "art" of managing the flow of
materials and products, information, and financial resources from the source to user
Strategies to achieve BETTER, FASTER, and CHEAPER - Answers - SCM help
companies outpace the competition by managing their materials, product, and
information flows
What are the challenges of supply chain management? - Answers - 1. Product life
cycles are shrinking
2. Customers are demanding customized products
3. Competition is intensifying
4. Companies need to be much more efficient
Essential activities of Supply Chain - Answers - 1. Planning and forecasting
2. Supply management and procurement
3. Operations management and production
4. Logistics and transportation
Why is SCMN important to customers? - Answers - Product Availability (Time utility and
Place utility) and Fulfillment Accuracy
Who us the most important participant in Supply Chain? - Answers - Consumer
Seven Rights of Fulfillment Accuracy - Answers - Right Product
Right Customer
Right Time
Right Place
Right Condition
Right Quantity
Right Cost
Best Supply Chains: Gartner Rating of Supply Chain (reading one) - Answers - Highlight
the top companies that excel in supply chain management with agile strategies that
allow organization and flexibility. Cisco, Colgate-Palmolive, Johnson and Johnson are
, the top three. Amazon, Apple, Macdonalds, P&G, and Unilever are part of the master
group achieving top five scores in 7 of the last 10 years.
What are the three key flows of Supply Chain? - Answers - Product, Information, and
Money (financial resources)
What is the logistics network? - Answers - The sequence or system of organizations or
operations that work together to design, produce, and deliver a product or service to a
market, extending from the extraction of raw materials to the distribution of finished
products or services.
What us a Link? - Answers - The transportation method used to connect the nodes
(plants, warehouses, stores) in a supply chain
What is a Node - Answers - A fixed point in a supply chain where valued added
processes take place. Goods are processed, transformed, mixed, held, or sold at
nodes.
What are the advantages a centralized network design - Answers - - Lower inventory
and safety stock levels
- Single location creates better visibility
- Lower of head stock
- Less labor
- Smaller management team
- Economies of scale
What are the challenges a centralized network design - Answers - - Longer lead times
- Higher delivery costs
- Potential inefficiencies as single facility grows
- Potential issues with regional customers
What are the advantages a decentralized network design - Answers - - CUSTOMER
PROXIMITY
- Shorter lead times
- Lower delivery costs
- Responsive to demand
What are the challenges a decentralized network design - Answers - - More safety in
stock in system
- Higher overhead costs
- more managers
-No economies of scale
RISK: Lack of control and coordination
Centralized vs. Decentralized network design characteristics - Answers - See image for
compare and contrast
AND ANSWERS 2026
What is supply chain? - Answers - An integrated collection of organizations, people,
activities, information, and resources. It includes customers, retailers, manufacturers,
and suppliers.
What is Supply Chain Management - Answers - The "art" of managing the flow of
materials and products, information, and financial resources from the source to user
Strategies to achieve BETTER, FASTER, and CHEAPER - Answers - SCM help
companies outpace the competition by managing their materials, product, and
information flows
What are the challenges of supply chain management? - Answers - 1. Product life
cycles are shrinking
2. Customers are demanding customized products
3. Competition is intensifying
4. Companies need to be much more efficient
Essential activities of Supply Chain - Answers - 1. Planning and forecasting
2. Supply management and procurement
3. Operations management and production
4. Logistics and transportation
Why is SCMN important to customers? - Answers - Product Availability (Time utility and
Place utility) and Fulfillment Accuracy
Who us the most important participant in Supply Chain? - Answers - Consumer
Seven Rights of Fulfillment Accuracy - Answers - Right Product
Right Customer
Right Time
Right Place
Right Condition
Right Quantity
Right Cost
Best Supply Chains: Gartner Rating of Supply Chain (reading one) - Answers - Highlight
the top companies that excel in supply chain management with agile strategies that
allow organization and flexibility. Cisco, Colgate-Palmolive, Johnson and Johnson are
, the top three. Amazon, Apple, Macdonalds, P&G, and Unilever are part of the master
group achieving top five scores in 7 of the last 10 years.
What are the three key flows of Supply Chain? - Answers - Product, Information, and
Money (financial resources)
What is the logistics network? - Answers - The sequence or system of organizations or
operations that work together to design, produce, and deliver a product or service to a
market, extending from the extraction of raw materials to the distribution of finished
products or services.
What us a Link? - Answers - The transportation method used to connect the nodes
(plants, warehouses, stores) in a supply chain
What is a Node - Answers - A fixed point in a supply chain where valued added
processes take place. Goods are processed, transformed, mixed, held, or sold at
nodes.
What are the advantages a centralized network design - Answers - - Lower inventory
and safety stock levels
- Single location creates better visibility
- Lower of head stock
- Less labor
- Smaller management team
- Economies of scale
What are the challenges a centralized network design - Answers - - Longer lead times
- Higher delivery costs
- Potential inefficiencies as single facility grows
- Potential issues with regional customers
What are the advantages a decentralized network design - Answers - - CUSTOMER
PROXIMITY
- Shorter lead times
- Lower delivery costs
- Responsive to demand
What are the challenges a decentralized network design - Answers - - More safety in
stock in system
- Higher overhead costs
- more managers
-No economies of scale
RISK: Lack of control and coordination
Centralized vs. Decentralized network design characteristics - Answers - See image for
compare and contrast
