Comprehensive SCM 300 Study Guide
Latest Updated
Supply Chain Management (SCM) - correct Answer-the effective and efficient
integration of the suppliers, manufacturers, transportation organizations, and any other
party responsible for collectively bringing products to market
Procurement - correct Answer-This is known as the purchasing branch of a company.
They're responsible for getting materials, equipment, products, and services for their
company. They have to find suppliers, choose the one that gives the best value,
negotiate purchase terms, place orders, and develop a long term relationship with
supplier so that consistent quality can be expected from the supplier over a long period
of time
Operations - correct Answer-Branch of the supply chain responsible for making
business processes effective and efficient. They seek to help the company create high
quality products/services while using the fewest resources possible.
They have to try to do things faster with as few workers and machines as possible and
they need to have things done right before the customer needs them
Logistics - correct Answer-branch responsible for finding the right transportation and
storage partners to successfully navigate the flow of materials from the point of origin to
the final destination
Reverse Logistics - correct Answer-the management of products that flow backward in
the supply chain, away from the consumer and back in the direction of manufacturers.
(the management of materials moving upstream in the supply chain)
Global SCM - correct Answer-Effective and efficient management of supply chain
partners across multiple countries
1st-tier suppliers - correct Answer-a company's direct suppliers. A firm that directly
provides goods/services to a company.
Downstream supply chain - correct Answer-the direction that points toward the end
consumer in a supply chain. (it goes to the right in the chain)
In order for supply chains to function and develop, three things must continuously flow:
____________, _____________, and _________________. - correct Answer-Materials,
Money, and Information
,Business Model - correct Answer-a company's plan for how it will purchase items,
transform them, deliver them, and sell them in an effort to produce a profit
Supply Chain visibility - correct Answer-the ability to see what is happening with
inventory upstream and downstream in a supply chain.
You want to be able to predict and account for the demand before you need it and how
much will get there by a certain time. the ability to do this is inventory/supply chain
visibility
Profit's relationship to SCM - correct Answer-Profit = Revenue - Cost
Costs involved in Supply chain include: materials, labor, energy, transportation,
packaging, storage, defects, insurance...
Competitive priorities - correct Answer-Cost, Quality, Speed, and Flexibility
Tracking performance in cost, quality, speed, and flexibility is vital to knowing whether
the company is meeting its goals in the present and working towards better
performance in the future.
Each industry has different competitive priorities.
For example fast food places focus on low cost, average but consistent quality, quick
delivery, and flexibility regarding what you put on a burger.
While sit down restaurants focus on high quality burgers, reasonable delivery times,
specialty burger, and charge a higher price
Core competencies - correct Answer-primary advantages a company has over its
competitors. Typically a core competency is extremely difficult or near impossible to
replicate
Productivity vs. Value - correct Answer-Value= output purchased / inputs used to
purchase the products or service.
Value can be increased by giving the customer more for the same price, or by giving
them the same amount at a lower price.
Ex: amt of soup / $ paid for the soup
Productivity= The ratio of outputs to inputs. From a manufacturing perspective
companies seek to maximize the amount of outputs that can be produced and delivered
to market while minimizing the required inputs. Productivity is a relative term, so
typically it can only be compared to the productivity of periods that precede the present
productivity.
,Ex: if you make 200 of something and each one of it valued at $10 and the material cost
were $1000 total to create them all the productivity would be the {amt (200) * the value
($10)} / the total cost to make them ($1000) = 2000/1000= Productivity = 2
Primary Supply Chain Goals - correct Answer-goal is effectiveness, efficiency, and
adaptability. To make high quality products in a timely fashion while meeting the needs
of a customer.
Seven types of waste - correct Answer-Defects, overproduction, transportation, motion,
waiting, inventory, overprocessing
Keys to being a successful SC Manager - correct Answer-Satisfy the needs of the
customer, satisfy the needs of the company, be prepared for the future
SC Strategy - correct Answer-Understand the product/service and the market desires,
develop a business model, organize the right group of supply chain partners
SC Tools - correct Answer-supply chain metrics, information technology tools,
relationship management skills, financial resources, organizational integration
Anatomy story: - correct Answer-The human body is a system where each part of the
body functions interdependently. The body is strong, lean, and flexible. By
understanding the anatomy of the human body scientist have been able to prolong
human life and increase athletic performance.
Supply chain is just like this because the supply chain focuses on getting thins, making,
things, and moving things and to understand how to build a better chain you also need
to know and understand the parts and how they interact with each other.
For sandwich factors to consider= - correct Answer-Purchasing: where will we buy stuff
for it
Manufacturing and Operations: if we have all of the ingredients, how will we make the
sandwich, what will it take, how will we clean it up, will we save some for tomorrow
Transportation and Logistics: Now we need to prep that sandwich to travel. what will we
use, how will we keep it cool etc.
Supply chain management is a place where what matters? - correct Answer-purchasing,
operations, and logistics are what matters.
Supply chain managers think about what? - correct Answer-buying things, making
things, moving things making them better, making them faster, and doing it with minimal
waste.
, 2nd-tier suppliers - correct Answer-A firm that provides goods/services to a company's
first-tier supplier
____ tier suppliers get the stuff first then transport that to ____ tier suppliers - correct
Answer-2nd; 1st
Upstream supply chain - correct Answer-the direction that points toward the suppliers in
a supply chain (the left/backwards)
ROI's relationship to SCM: - correct Answer-ROI= An economic measure that helps
evaluate the return of an investment.
ROI = Total profit/ Total investment
SCM involves the costs aspects of a product (the investment side of the equation) as
well as the delivery/quality aspect of a product in that people will be willing to pay more
for a better made product (this involves the profit side of the equation)
4 competitive priorities:
1. _______: materials, energy, wages, transportation, rent...
2. ________: Design, reliability, consistency, materials and fabrics...
3. _________: Delivery, on-time, innovation time...
4. ___________: customization, size of order, design... - correct Answer-1. Cost
2. Quality
3. Speed
4. Flexibility
Efficient Integration of:
• Suppliers and Manufacturers
• Transporters, Distribution Centers, Warehouses
• Retailers and all other parties associated tasked with the
successful delivery of the final product and/or service. - correct Answer-Supply chain
management
Operations management= - correct Answer-Design, operations, and improvement of the
production systems that efficiently transform INPUTS into Finished Goods & Services,
maximizing productivity.
Logistics - correct Answer-is the COORDINATED Planning and Execution of the
following:
-Preparation of Packaged Product
-Movement Itinerary (Transport)
Latest Updated
Supply Chain Management (SCM) - correct Answer-the effective and efficient
integration of the suppliers, manufacturers, transportation organizations, and any other
party responsible for collectively bringing products to market
Procurement - correct Answer-This is known as the purchasing branch of a company.
They're responsible for getting materials, equipment, products, and services for their
company. They have to find suppliers, choose the one that gives the best value,
negotiate purchase terms, place orders, and develop a long term relationship with
supplier so that consistent quality can be expected from the supplier over a long period
of time
Operations - correct Answer-Branch of the supply chain responsible for making
business processes effective and efficient. They seek to help the company create high
quality products/services while using the fewest resources possible.
They have to try to do things faster with as few workers and machines as possible and
they need to have things done right before the customer needs them
Logistics - correct Answer-branch responsible for finding the right transportation and
storage partners to successfully navigate the flow of materials from the point of origin to
the final destination
Reverse Logistics - correct Answer-the management of products that flow backward in
the supply chain, away from the consumer and back in the direction of manufacturers.
(the management of materials moving upstream in the supply chain)
Global SCM - correct Answer-Effective and efficient management of supply chain
partners across multiple countries
1st-tier suppliers - correct Answer-a company's direct suppliers. A firm that directly
provides goods/services to a company.
Downstream supply chain - correct Answer-the direction that points toward the end
consumer in a supply chain. (it goes to the right in the chain)
In order for supply chains to function and develop, three things must continuously flow:
____________, _____________, and _________________. - correct Answer-Materials,
Money, and Information
,Business Model - correct Answer-a company's plan for how it will purchase items,
transform them, deliver them, and sell them in an effort to produce a profit
Supply Chain visibility - correct Answer-the ability to see what is happening with
inventory upstream and downstream in a supply chain.
You want to be able to predict and account for the demand before you need it and how
much will get there by a certain time. the ability to do this is inventory/supply chain
visibility
Profit's relationship to SCM - correct Answer-Profit = Revenue - Cost
Costs involved in Supply chain include: materials, labor, energy, transportation,
packaging, storage, defects, insurance...
Competitive priorities - correct Answer-Cost, Quality, Speed, and Flexibility
Tracking performance in cost, quality, speed, and flexibility is vital to knowing whether
the company is meeting its goals in the present and working towards better
performance in the future.
Each industry has different competitive priorities.
For example fast food places focus on low cost, average but consistent quality, quick
delivery, and flexibility regarding what you put on a burger.
While sit down restaurants focus on high quality burgers, reasonable delivery times,
specialty burger, and charge a higher price
Core competencies - correct Answer-primary advantages a company has over its
competitors. Typically a core competency is extremely difficult or near impossible to
replicate
Productivity vs. Value - correct Answer-Value= output purchased / inputs used to
purchase the products or service.
Value can be increased by giving the customer more for the same price, or by giving
them the same amount at a lower price.
Ex: amt of soup / $ paid for the soup
Productivity= The ratio of outputs to inputs. From a manufacturing perspective
companies seek to maximize the amount of outputs that can be produced and delivered
to market while minimizing the required inputs. Productivity is a relative term, so
typically it can only be compared to the productivity of periods that precede the present
productivity.
,Ex: if you make 200 of something and each one of it valued at $10 and the material cost
were $1000 total to create them all the productivity would be the {amt (200) * the value
($10)} / the total cost to make them ($1000) = 2000/1000= Productivity = 2
Primary Supply Chain Goals - correct Answer-goal is effectiveness, efficiency, and
adaptability. To make high quality products in a timely fashion while meeting the needs
of a customer.
Seven types of waste - correct Answer-Defects, overproduction, transportation, motion,
waiting, inventory, overprocessing
Keys to being a successful SC Manager - correct Answer-Satisfy the needs of the
customer, satisfy the needs of the company, be prepared for the future
SC Strategy - correct Answer-Understand the product/service and the market desires,
develop a business model, organize the right group of supply chain partners
SC Tools - correct Answer-supply chain metrics, information technology tools,
relationship management skills, financial resources, organizational integration
Anatomy story: - correct Answer-The human body is a system where each part of the
body functions interdependently. The body is strong, lean, and flexible. By
understanding the anatomy of the human body scientist have been able to prolong
human life and increase athletic performance.
Supply chain is just like this because the supply chain focuses on getting thins, making,
things, and moving things and to understand how to build a better chain you also need
to know and understand the parts and how they interact with each other.
For sandwich factors to consider= - correct Answer-Purchasing: where will we buy stuff
for it
Manufacturing and Operations: if we have all of the ingredients, how will we make the
sandwich, what will it take, how will we clean it up, will we save some for tomorrow
Transportation and Logistics: Now we need to prep that sandwich to travel. what will we
use, how will we keep it cool etc.
Supply chain management is a place where what matters? - correct Answer-purchasing,
operations, and logistics are what matters.
Supply chain managers think about what? - correct Answer-buying things, making
things, moving things making them better, making them faster, and doing it with minimal
waste.
, 2nd-tier suppliers - correct Answer-A firm that provides goods/services to a company's
first-tier supplier
____ tier suppliers get the stuff first then transport that to ____ tier suppliers - correct
Answer-2nd; 1st
Upstream supply chain - correct Answer-the direction that points toward the suppliers in
a supply chain (the left/backwards)
ROI's relationship to SCM: - correct Answer-ROI= An economic measure that helps
evaluate the return of an investment.
ROI = Total profit/ Total investment
SCM involves the costs aspects of a product (the investment side of the equation) as
well as the delivery/quality aspect of a product in that people will be willing to pay more
for a better made product (this involves the profit side of the equation)
4 competitive priorities:
1. _______: materials, energy, wages, transportation, rent...
2. ________: Design, reliability, consistency, materials and fabrics...
3. _________: Delivery, on-time, innovation time...
4. ___________: customization, size of order, design... - correct Answer-1. Cost
2. Quality
3. Speed
4. Flexibility
Efficient Integration of:
• Suppliers and Manufacturers
• Transporters, Distribution Centers, Warehouses
• Retailers and all other parties associated tasked with the
successful delivery of the final product and/or service. - correct Answer-Supply chain
management
Operations management= - correct Answer-Design, operations, and improvement of the
production systems that efficiently transform INPUTS into Finished Goods & Services,
maximizing productivity.
Logistics - correct Answer-is the COORDINATED Planning and Execution of the
following:
-Preparation of Packaged Product
-Movement Itinerary (Transport)
