SCMN Exam 2 Questions and Answers With Verified Solutions 2025
Procurement - ✔✔the purchase of merchandise or services at the optimum possible total cost in the
correct amount and quality.
How does Procurement differ from strategic sourcing? - ✔✔Procurement is no longer hammering down
prices only. What's needed is a different attitude to external partnering-- understanding the market
environment, your vendors, their strategies, & what makes them tick
Outsourcing - ✔✔-purchasing a product, part, or component from an outside supplier vs. manufacturing
it in-house
-the act of moving a firm's internal activities and decision responsibility to outside providers
-requires a "make or buy" analysis
What costs and challenges are involved in outsourcing? - ✔✔-Internal costs vs. external price
-Poor quality supply
-Expensive supply
-Long lead-time of supply
-Reliability
Basic procurement performance metrics - ✔✔-Fill rate
-Damage rate
-On time
Production - ✔✔the process by which inputs are combined, transformed, and turned into outputs.
3 key components of Production - ✔✔1.) Inputs
2.) Transformation
3.) Outputs
, What's the focus of lean production? - ✔✔focuses on eliminating muda - eliminating "waste" while
delivering quality products at the least cost to the manufacturer and customers.
What's the focus of mass customization? - ✔✔postponement/ delayed differentation
What production processes are available for companies to use? - ✔✔-Project
-Work centers
-Manufacturing cells
-Assembly line
-Continuous process
What issues and factors drive the production layout decision? - ✔✔-Facility size
-Process flow
-Speed
-Labor content
-Skill level
-Material requirements
-Scheduling
Purpose of break-even analysis - ✔✔- allows a comparison of total costs for different processes. -This
technique takes the fixed costs and variable costs and finds the break-even point for which the cost of
two or more processes are equal in cost.
Purpose of assembly line balancing - ✔✔-manufacturing process in which interchangeable parts are
added to a product in a sequential manner to create a finished product
Logistics - ✔✔-part of the supply chain process that plans, implements, and controls the efficient,
effective flow and storage of goods, services, and related info from point of origin to point of
consumption in order to meet customers' requirements.
Why has logistics grown in importance? - ✔✔-Promotes activity and strategic integration
Procurement - ✔✔the purchase of merchandise or services at the optimum possible total cost in the
correct amount and quality.
How does Procurement differ from strategic sourcing? - ✔✔Procurement is no longer hammering down
prices only. What's needed is a different attitude to external partnering-- understanding the market
environment, your vendors, their strategies, & what makes them tick
Outsourcing - ✔✔-purchasing a product, part, or component from an outside supplier vs. manufacturing
it in-house
-the act of moving a firm's internal activities and decision responsibility to outside providers
-requires a "make or buy" analysis
What costs and challenges are involved in outsourcing? - ✔✔-Internal costs vs. external price
-Poor quality supply
-Expensive supply
-Long lead-time of supply
-Reliability
Basic procurement performance metrics - ✔✔-Fill rate
-Damage rate
-On time
Production - ✔✔the process by which inputs are combined, transformed, and turned into outputs.
3 key components of Production - ✔✔1.) Inputs
2.) Transformation
3.) Outputs
, What's the focus of lean production? - ✔✔focuses on eliminating muda - eliminating "waste" while
delivering quality products at the least cost to the manufacturer and customers.
What's the focus of mass customization? - ✔✔postponement/ delayed differentation
What production processes are available for companies to use? - ✔✔-Project
-Work centers
-Manufacturing cells
-Assembly line
-Continuous process
What issues and factors drive the production layout decision? - ✔✔-Facility size
-Process flow
-Speed
-Labor content
-Skill level
-Material requirements
-Scheduling
Purpose of break-even analysis - ✔✔- allows a comparison of total costs for different processes. -This
technique takes the fixed costs and variable costs and finds the break-even point for which the cost of
two or more processes are equal in cost.
Purpose of assembly line balancing - ✔✔-manufacturing process in which interchangeable parts are
added to a product in a sequential manner to create a finished product
Logistics - ✔✔-part of the supply chain process that plans, implements, and controls the efficient,
effective flow and storage of goods, services, and related info from point of origin to point of
consumption in order to meet customers' requirements.
Why has logistics grown in importance? - ✔✔-Promotes activity and strategic integration
