SCM 300 Exam 1 Modules 1-4 (Davila)
Supply Chain Management - CORRECT ANSWER-the management of the chain of supplies
buy it -> make it -> move it -> sell it -> service it - CORRECT ANSWER-SCM Flows/Strategy
1. cost
2. quality
3. speed/time
4. flexibility - CORRECT ANSWER-Competitive Priorities
value (what i get/price) - CORRECT ANSWER-customers perspective
productivity (what i make/cost) - CORRECT ANSWER-organization perspective
1. Procurement
2. Operations
3. Logistics - CORRECT ANSWER-SCM Key Components
Procurement (buy it) - CORRECT ANSWER-process of obtaining services, supplies, and
equipment in conformance with corporate regulations
Operations (make it) - CORRECT ANSWER-makes business processes effective and efficient.
They help the organization create high quality products/ services using the fewest resources
Logistics (move it) - CORRECT ANSWER-developing the transportation itinerary and finding
reliable transportation and storage partners, to be able to navigate the flow of materials to the
final destination
purchasing -> production -> distribution -> retail sales - CORRECT ANSWER-The Supply Chain
The efficient integration of the Supply Chain - CORRECT ANSWER-SCM Def
satisfy the customer, satisfy the company, consider the future - CORRECT
ANSWER-Successful SC Manager
sustainable long term profits and maimize ROI - CORRECT ANSWER-Corporation Goals
Reverse Logistics - CORRECT ANSWER-reuse of production and materials
1st Tier Suppliers - CORRECT ANSWER-a company's direct supplier. A firm that directly
provides goods and/ or services to a company
, 2nd Tier Suppliers - CORRECT ANSWER-a firm provides goods and/ or services to a
company's first-tier supplier
Downstream - CORRECT ANSWER-direction in which products flow towards an end consumer.
Direction is the right.
Storage and consolidation/sorting
picking and packing, labeling
Upstream - CORRECT ANSWER-direction from customers to suppliers. Direction is the left
central return center AKA reverse logistics activities
Business model - CORRECT ANSWER-planning to purchase, transform, deliver, and sell
products with intent on making a profit
Supply Chain Visibility - CORRECT ANSWER-ability to see what is happening with inventory up
and down a supply chain
Profit - CORRECT ANSWER-Formula: profit = revenue - cost. If supply chain creates a
damaged product no one will buy it for a premium price, that's why it's important for the supply
chain to deliver the best products
ROI - CORRECT ANSWER-Formula: total profit/ total invest money. Return on investment- an
economic measure that helps evaluate the return of money. Scenario 1: 10/1,000 = 0.01
Scenario 2: 10/1 = 10 (good investment).
total profit/ total invest money - CORRECT ANSWER-ROI Formula
profit= revenue - cost - CORRECT ANSWER-Profits Formula
Delivery time - CORRECT ANSWER-from order placement to order fulfillment
1. defaults
2. overproduction
3. transportation (moving products may involve damage or theft)
4. motion (employees get tired thus get injured)
5. waiting (work in process finished to soon and is waiting to be finished)
6. inventory (not providing return)
7. over processing (doing unnecessary work) - CORRECT ANSWER-7 types of waste
a. supply chain metrics: be able to report success or failure.
b. info technology tools: knowing what's happening in global supply chain
c. relationship management skills: being able to work with executives and employees at other
companies
d. financial resources: company needs to be willing to invest in supply chains.
Supply Chain Management - CORRECT ANSWER-the management of the chain of supplies
buy it -> make it -> move it -> sell it -> service it - CORRECT ANSWER-SCM Flows/Strategy
1. cost
2. quality
3. speed/time
4. flexibility - CORRECT ANSWER-Competitive Priorities
value (what i get/price) - CORRECT ANSWER-customers perspective
productivity (what i make/cost) - CORRECT ANSWER-organization perspective
1. Procurement
2. Operations
3. Logistics - CORRECT ANSWER-SCM Key Components
Procurement (buy it) - CORRECT ANSWER-process of obtaining services, supplies, and
equipment in conformance with corporate regulations
Operations (make it) - CORRECT ANSWER-makes business processes effective and efficient.
They help the organization create high quality products/ services using the fewest resources
Logistics (move it) - CORRECT ANSWER-developing the transportation itinerary and finding
reliable transportation and storage partners, to be able to navigate the flow of materials to the
final destination
purchasing -> production -> distribution -> retail sales - CORRECT ANSWER-The Supply Chain
The efficient integration of the Supply Chain - CORRECT ANSWER-SCM Def
satisfy the customer, satisfy the company, consider the future - CORRECT
ANSWER-Successful SC Manager
sustainable long term profits and maimize ROI - CORRECT ANSWER-Corporation Goals
Reverse Logistics - CORRECT ANSWER-reuse of production and materials
1st Tier Suppliers - CORRECT ANSWER-a company's direct supplier. A firm that directly
provides goods and/ or services to a company
, 2nd Tier Suppliers - CORRECT ANSWER-a firm provides goods and/ or services to a
company's first-tier supplier
Downstream - CORRECT ANSWER-direction in which products flow towards an end consumer.
Direction is the right.
Storage and consolidation/sorting
picking and packing, labeling
Upstream - CORRECT ANSWER-direction from customers to suppliers. Direction is the left
central return center AKA reverse logistics activities
Business model - CORRECT ANSWER-planning to purchase, transform, deliver, and sell
products with intent on making a profit
Supply Chain Visibility - CORRECT ANSWER-ability to see what is happening with inventory up
and down a supply chain
Profit - CORRECT ANSWER-Formula: profit = revenue - cost. If supply chain creates a
damaged product no one will buy it for a premium price, that's why it's important for the supply
chain to deliver the best products
ROI - CORRECT ANSWER-Formula: total profit/ total invest money. Return on investment- an
economic measure that helps evaluate the return of money. Scenario 1: 10/1,000 = 0.01
Scenario 2: 10/1 = 10 (good investment).
total profit/ total invest money - CORRECT ANSWER-ROI Formula
profit= revenue - cost - CORRECT ANSWER-Profits Formula
Delivery time - CORRECT ANSWER-from order placement to order fulfillment
1. defaults
2. overproduction
3. transportation (moving products may involve damage or theft)
4. motion (employees get tired thus get injured)
5. waiting (work in process finished to soon and is waiting to be finished)
6. inventory (not providing return)
7. over processing (doing unnecessary work) - CORRECT ANSWER-7 types of waste
a. supply chain metrics: be able to report success or failure.
b. info technology tools: knowing what's happening in global supply chain
c. relationship management skills: being able to work with executives and employees at other
companies
d. financial resources: company needs to be willing to invest in supply chains.
