UMN SCO 3001 Exam 1 – A+ Graded File | Real Supply
Chain Questions Solved
B2B - ✔✔the process of selling merchandise or services from one business to another
B2C - ✔✔the process in which businesses sell to consumers
supply chain resilience - ✔✔ability to respond to unexpected disruptions in supply or demand that can
be either natural or manmade
Triple Bottom Line - ✔✔recognition of the need for organizations to improve the state of people, the
planet, and profit simultaneously if they are to achieve sustainable, long-term growth
Profit Leverage Effect - ✔✔a term used to describe the effect of $1 in cost savings increasing pretax
profits by $1 and a $1 increase in sales increasing pretax profits only by $1 multiplied by the pretax
profit margin
Goals of Sourcing - ✔✔Access technology & innovation, decrease total costs, minimize the risk of quality
& delivery problems, and require social responsibility and ethical behavior
Core Competence - ✔✔Firm skills that competitors cannot easily match or imitate.
transaction costs - ✔✔the costs that parties incur in the process of agreeing to and following through on
a bargain
Business process outsourcing (BPO) - ✔✔the practice of contracting a specific workprocess or processes
to an external service provider
Reshoring - ✔✔moves services/products back from foreign to domestic locations
Spend Analysis - ✔✔Analyzing what the firm is buying, from whom, in what quantities & at what price
, cross sourcing - ✔✔a firm uses one supplier for one part of the business and another supplier in another
part of the business with similar capabilities
dual sourcing - ✔✔a sourcing strategy in which two suppliers are used for the same purchased product
or service
Preferred suppliers - ✔✔designated based on past performance and low prices. Meets criteria such as
proven quality, on time delivery, competitive pricing, agreeable payment terms, ethical business
practice, and social/community support.
Purchasing Cycle - ✔✔Series of steps that begin with a request for purchase and end with notification of
shipment received in satisfactory condition.
Request for Quotation (RFQ) - ✔✔document that is sent out to potential suppliers specifying the
product, terms of procurement, and asking for a price.
reverse auction - ✔✔Using the internet, the buyer asks selected prequalified suppliers to bid on the
price
Request for Proposal (RFP) - ✔✔document that is sent to potential vendors inviting them to submit a
proposal describing their product/service and how it would meet the company's needs
purchase order - ✔✔a legal contract between the buyer and the supplier
Logistics - ✔✔Implements and controls the forward and reverse flow and storage of goods and related
information between the point of origin and consumption in order to meet customer requirements
Cost - ✔✔weight, bulk, distance, and type of freight being shipped
Service - ✔✔speed, dependability, location flexibility, and capability
Chain Questions Solved
B2B - ✔✔the process of selling merchandise or services from one business to another
B2C - ✔✔the process in which businesses sell to consumers
supply chain resilience - ✔✔ability to respond to unexpected disruptions in supply or demand that can
be either natural or manmade
Triple Bottom Line - ✔✔recognition of the need for organizations to improve the state of people, the
planet, and profit simultaneously if they are to achieve sustainable, long-term growth
Profit Leverage Effect - ✔✔a term used to describe the effect of $1 in cost savings increasing pretax
profits by $1 and a $1 increase in sales increasing pretax profits only by $1 multiplied by the pretax
profit margin
Goals of Sourcing - ✔✔Access technology & innovation, decrease total costs, minimize the risk of quality
& delivery problems, and require social responsibility and ethical behavior
Core Competence - ✔✔Firm skills that competitors cannot easily match or imitate.
transaction costs - ✔✔the costs that parties incur in the process of agreeing to and following through on
a bargain
Business process outsourcing (BPO) - ✔✔the practice of contracting a specific workprocess or processes
to an external service provider
Reshoring - ✔✔moves services/products back from foreign to domestic locations
Spend Analysis - ✔✔Analyzing what the firm is buying, from whom, in what quantities & at what price
, cross sourcing - ✔✔a firm uses one supplier for one part of the business and another supplier in another
part of the business with similar capabilities
dual sourcing - ✔✔a sourcing strategy in which two suppliers are used for the same purchased product
or service
Preferred suppliers - ✔✔designated based on past performance and low prices. Meets criteria such as
proven quality, on time delivery, competitive pricing, agreeable payment terms, ethical business
practice, and social/community support.
Purchasing Cycle - ✔✔Series of steps that begin with a request for purchase and end with notification of
shipment received in satisfactory condition.
Request for Quotation (RFQ) - ✔✔document that is sent out to potential suppliers specifying the
product, terms of procurement, and asking for a price.
reverse auction - ✔✔Using the internet, the buyer asks selected prequalified suppliers to bid on the
price
Request for Proposal (RFP) - ✔✔document that is sent to potential vendors inviting them to submit a
proposal describing their product/service and how it would meet the company's needs
purchase order - ✔✔a legal contract between the buyer and the supplier
Logistics - ✔✔Implements and controls the forward and reverse flow and storage of goods and related
information between the point of origin and consumption in order to meet customer requirements
Cost - ✔✔weight, bulk, distance, and type of freight being shipped
Service - ✔✔speed, dependability, location flexibility, and capability
