SCM 300 EXAM 3 QUESTIONS &
ANSWERS(RATED A+)
Supply Chain Management - ANSWERmanaging upstream and downstream value-
added flows of materials, final goods, and related information among suppliers, the
company, resellers, and final consumers
1st Tier Supplier - ANSWERa supplier that provides products or services directly to a
firm
3 SCM Flows - ANSWERMaterials, Money, and Information
2nd tier suppliers - ANSWERA firm that provides goods and/or services to a company's
first-tier supplier.
Competitive Priorities - ANSWERcost, quality, time, flexibility
Productivity vs. Value - ANSWER-Productivity: maximize the amount of outputs that can
be produced and delivered to market while minimizing the required inputs.
-Value: ratio of "output purchased"/ "inputs used to purchase"
intermodal transportation - ANSWERtwo or more transportation modes used in
combination
Packaging and Labeling - ANSWERA product's outer wrapping and the other
information distributed with it, such as package inserts. Packaging and labeling, like
other forms of advertising, are designed to appeal to the target audience.
distribution center - ANSWERa large, highly automated warehouse designed to receive
goods from various plants and suppliers, take orders, fill them efficiently, and deliver
goods to customers as quickly as possible
click and mortar - ANSWERa business that operates in a physical store and on the
internet
Parts of a waiting line system - ANSWER1) Input Source - This is the population of
people that might want service
2) Waiting Line - The area in which customers wait for service
3) Service Facility - The area in which customers actually receive service
Balking - ANSWERstopping short and refusing to go on
Reneging - ANSWERbacking out of a contract after it is accepted
, Planogram - ANSWERa diagram that shows how and where specific SKUs should be
placed on retail shelves or displays to increase customer purchases
CPFR - ANSWERCollaborative Planning, Forecasting, and Replenishment
VMI - ANSWERvendor-managed inventory
Omnichannel - ANSWERa multichannel selling approach where a single retailer
provides a seamless customer shopping experience from desktop computer, mobile
device, telephone, or brick-and-mortar store
brick-and-mortar - ANSWERactual buildings, such as stores and warehouses
JIT - ANSWERJust in Time. A system that eliminates work-in-process (WIP) inventory
by scheduling arrival of parts and assemblies for an operation at the time they are
needed and not before.
bullwhip effect - ANSWERoccurs when distorted product-demand information ripples
from one partner to the next throughout the supply chain
Push vs. Pull Strategy - ANSWER-Push -- increase demand by motivating vendors to
highlight a product over competition & push onto consumers (pushy salesman, personal
selling, B2B)
- Pull -- goal to get consumers to pull product through marketing channel by demanding
it & forcing vendors to take notice
Rocks and Water Analogy - ANSWER- Rock represented a different supply chain
weakness: poor forecasting, high defect rates, unreliable suppliers, theft, unreliable
shippers, etc. In each case more inventory might help hide these weaknesses.
- Imagine if instead a company decided to remove the rock instead of hiding it with more
water. In other words, imagine if they fixed the problem instead of hiding it with
inventory. This is what companies that embrace lean systems try and do everyday."
postponement - ANSWERa hybrid production method whereby basic units of a finished
good are manufactured in advance of actual demand and held in strategic form or
location until demand occurs, when final customization takes place
CTPAT (custom's trade partnership against terrorism) - ANSWER
Incoterms - ANSWERUniversal trade terminology developed by the International
Chamber of Commerce
Free Trade Zone (FTZ) - ANSWERa duty-free and tax-exempt industrial park created to
attract foreign corporations and create industrial jobs
ANSWERS(RATED A+)
Supply Chain Management - ANSWERmanaging upstream and downstream value-
added flows of materials, final goods, and related information among suppliers, the
company, resellers, and final consumers
1st Tier Supplier - ANSWERa supplier that provides products or services directly to a
firm
3 SCM Flows - ANSWERMaterials, Money, and Information
2nd tier suppliers - ANSWERA firm that provides goods and/or services to a company's
first-tier supplier.
Competitive Priorities - ANSWERcost, quality, time, flexibility
Productivity vs. Value - ANSWER-Productivity: maximize the amount of outputs that can
be produced and delivered to market while minimizing the required inputs.
-Value: ratio of "output purchased"/ "inputs used to purchase"
intermodal transportation - ANSWERtwo or more transportation modes used in
combination
Packaging and Labeling - ANSWERA product's outer wrapping and the other
information distributed with it, such as package inserts. Packaging and labeling, like
other forms of advertising, are designed to appeal to the target audience.
distribution center - ANSWERa large, highly automated warehouse designed to receive
goods from various plants and suppliers, take orders, fill them efficiently, and deliver
goods to customers as quickly as possible
click and mortar - ANSWERa business that operates in a physical store and on the
internet
Parts of a waiting line system - ANSWER1) Input Source - This is the population of
people that might want service
2) Waiting Line - The area in which customers wait for service
3) Service Facility - The area in which customers actually receive service
Balking - ANSWERstopping short and refusing to go on
Reneging - ANSWERbacking out of a contract after it is accepted
, Planogram - ANSWERa diagram that shows how and where specific SKUs should be
placed on retail shelves or displays to increase customer purchases
CPFR - ANSWERCollaborative Planning, Forecasting, and Replenishment
VMI - ANSWERvendor-managed inventory
Omnichannel - ANSWERa multichannel selling approach where a single retailer
provides a seamless customer shopping experience from desktop computer, mobile
device, telephone, or brick-and-mortar store
brick-and-mortar - ANSWERactual buildings, such as stores and warehouses
JIT - ANSWERJust in Time. A system that eliminates work-in-process (WIP) inventory
by scheduling arrival of parts and assemblies for an operation at the time they are
needed and not before.
bullwhip effect - ANSWERoccurs when distorted product-demand information ripples
from one partner to the next throughout the supply chain
Push vs. Pull Strategy - ANSWER-Push -- increase demand by motivating vendors to
highlight a product over competition & push onto consumers (pushy salesman, personal
selling, B2B)
- Pull -- goal to get consumers to pull product through marketing channel by demanding
it & forcing vendors to take notice
Rocks and Water Analogy - ANSWER- Rock represented a different supply chain
weakness: poor forecasting, high defect rates, unreliable suppliers, theft, unreliable
shippers, etc. In each case more inventory might help hide these weaknesses.
- Imagine if instead a company decided to remove the rock instead of hiding it with more
water. In other words, imagine if they fixed the problem instead of hiding it with
inventory. This is what companies that embrace lean systems try and do everyday."
postponement - ANSWERa hybrid production method whereby basic units of a finished
good are manufactured in advance of actual demand and held in strategic form or
location until demand occurs, when final customization takes place
CTPAT (custom's trade partnership against terrorism) - ANSWER
Incoterms - ANSWERUniversal trade terminology developed by the International
Chamber of Commerce
Free Trade Zone (FTZ) - ANSWERa duty-free and tax-exempt industrial park created to
attract foreign corporations and create industrial jobs
