CHAIN MANAGEMENT EXAM SCRIPT 2026
PROCUREMENT AND DISTRIBUTION
COMPLETE SOLUTION VIEW
◉ Operations and Supply Chain Management
Answer: concerned with the management of the entire system that
produces a product or delivers a service
◉ operations
Answer: manufacturing and service processes that are used to
transform the resources employed by a firm into products desired
by customers
◉ manufacturing process
Answer: produces some type of physical product such as an
automobile or a computer
◉ service process
Answer: produces an intangible product, such as a call center that
provides information to customers stranded on the highway or a
hospital that treats accident victims in an emergency room
,◉ supply chain
Answer: refers to processes that move information and material to
and from the manufacturing and service process of the firm;
includes the logistics process that physically move product and the
warehousing and storage processes that position products
◉ planning
Answer: consists of processes needed to operate an existing supply
chain strategically; a firm must anticipate demand and how it will be
met with available resources
◉ sourcing
Answer: involves the selection of suppliers that will deliver the
goods and services needed to create the firm's product; a set of
pricing, delivery, and payment processes are needed together with
metrics for monitoring and improving the relations between
partners of the firm
◉ making
Answer: this is where the product is produced or the service
provided; requires scheduling processes for workers and the
coordination of material and other critical resources such as
equipment to support producing or providing the service
, ◉ delivering
Answer: referred to as logistics processes; carriers are picked to
move products to warehouses and customers, coordinate and
schedule the movement of goods and information through the
supply network
◉ returning
Answer: involves processes for receiving worn-out, defective, and
excess products back from customers
◉ service
Answer: this is an intangible process that cannot be weighed or
measured; require some degree of interaction with the customer;
vary from day to day; are perishable and time dependent; and are
evaluated as a package of features that affect the five senses
◉ good
Answer: a tangible output of a process that has physical dimensions
◉ product-service bundling
Answer: refers to a company building service activities into its
product offerings for its customers; example: maintenance, spare
part provisioning, training, etc.