SCMN 2150 Test 2 Auburn University Exam
Questions and Answers
What is procurement? - -process of actually purchasing goods and services
-How does procurement differ from strategic sourcing? - -Procurement operations
support tactical day-to-day transactions such as issuing purchase orders to suppliers,
whereas strategic sourcing represents to strategic planning, supplier development,
contract negotiation, supply chain infrastructure, and outsourcing models.
-What is outsourcing? - -obtain (goods or a service) from an outside or foreign supplier,
especially in place of an internal source.
-What costs and challenges are involved in outsourcing? - -slower turnaround time.
lack of business or domain knowledge.
language and cultural barriers.
time zone differences.
lack of control.
-What is production? - -The process by which inputs are combined, transformed, and
turned into outputs. We can produce both goods and services
-What are the three key components of production? - -1. input
2. transformation
3. output
-What is the focus of lean production? - -focus is to eliminate waste
-What's the focus of mass customization? - -focuses on providing customers with good
value for their money and increasing company profits. When buyers get custom products,
they focus more on the benefits and less on price.
-What production processes are available for companies to use? - -Job production
batch production
continuous production
-What issues and factors drive the production layout decision? - -production variety and
volume.
-What is the purpose of break-even analysis? - -main purpose is to determine the
minimum output that must be exceeded for a business to profit. It also is a rough indicator
of the earnings impact of a marketing activity.
Questions and Answers
What is procurement? - -process of actually purchasing goods and services
-How does procurement differ from strategic sourcing? - -Procurement operations
support tactical day-to-day transactions such as issuing purchase orders to suppliers,
whereas strategic sourcing represents to strategic planning, supplier development,
contract negotiation, supply chain infrastructure, and outsourcing models.
-What is outsourcing? - -obtain (goods or a service) from an outside or foreign supplier,
especially in place of an internal source.
-What costs and challenges are involved in outsourcing? - -slower turnaround time.
lack of business or domain knowledge.
language and cultural barriers.
time zone differences.
lack of control.
-What is production? - -The process by which inputs are combined, transformed, and
turned into outputs. We can produce both goods and services
-What are the three key components of production? - -1. input
2. transformation
3. output
-What is the focus of lean production? - -focus is to eliminate waste
-What's the focus of mass customization? - -focuses on providing customers with good
value for their money and increasing company profits. When buyers get custom products,
they focus more on the benefits and less on price.
-What production processes are available for companies to use? - -Job production
batch production
continuous production
-What issues and factors drive the production layout decision? - -production variety and
volume.
-What is the purpose of break-even analysis? - -main purpose is to determine the
minimum output that must be exceeded for a business to profit. It also is a rough indicator
of the earnings impact of a marketing activity.
