SCM 300 Exam 1 Modules 1-4 (Davila)
Questions and Answers
Supply Chain Management - ANS-the management of the chain of supplies
buy it -> make it -> move it -> sell it -> service it - ANS-SCM Flows/Strategy
1. cost
2. quality
3. speed/time
4. flexibility - ANS-Competitive Priorities
value (what i get/price) - ANS-customers perspective
productivity (what i make/cost) - ANS-organization perspective
1. Procurement
2. Operations
3. Logistics - ANS-SCM Key Components
Procurement (buy it) - ANS-process of obtaining services, supplies, and equipment in
conformance with corporate regulations
Operations (make it) - ANS-makes business processes effective and efficient. They help
the organization create high quality products/ services using the fewest resources
Logistics (move it) - ANS-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 - ANS-The Supply Chain
The efficient integration of the Supply Chain - ANS-SCM Def
satisfy the customer, satisfy the company, consider the future - ANS-Successful SC
Manager
sustainable long term profits and maimize ROI - ANS-Corporation Goals
Reverse Logistics - ANS-reuse of production and materials
, 1st Tier Suppliers - ANS-a company's direct supplier. A firm that directly provides goods
and/ or services to a company
2nd Tier Suppliers - ANS-a firm provides goods and/ or services to a company's first-tier
supplier
Downstream - ANS-direction in which products flow towards an end consumer.
Direction is the right.
Storage and consolidation/sorting
picking and packing, labeling
Upstream - ANS-direction from customers to suppliers. Direction is the left
central return center AKA reverse logistics activities
Business model - ANS-planning to purchase, transform, deliver, and sell products with
intent on making a profit
Supply Chain Visibility - ANS-ability to see what is happening with inventory up and
down a supply chain
Profit - ANS-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 - ANS-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 - ANS-ROI Formula
profit= revenue - cost - ANS-Profits Formula
Delivery time - ANS-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) - ANS-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
Questions and Answers
Supply Chain Management - ANS-the management of the chain of supplies
buy it -> make it -> move it -> sell it -> service it - ANS-SCM Flows/Strategy
1. cost
2. quality
3. speed/time
4. flexibility - ANS-Competitive Priorities
value (what i get/price) - ANS-customers perspective
productivity (what i make/cost) - ANS-organization perspective
1. Procurement
2. Operations
3. Logistics - ANS-SCM Key Components
Procurement (buy it) - ANS-process of obtaining services, supplies, and equipment in
conformance with corporate regulations
Operations (make it) - ANS-makes business processes effective and efficient. They help
the organization create high quality products/ services using the fewest resources
Logistics (move it) - ANS-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 - ANS-The Supply Chain
The efficient integration of the Supply Chain - ANS-SCM Def
satisfy the customer, satisfy the company, consider the future - ANS-Successful SC
Manager
sustainable long term profits and maimize ROI - ANS-Corporation Goals
Reverse Logistics - ANS-reuse of production and materials
, 1st Tier Suppliers - ANS-a company's direct supplier. A firm that directly provides goods
and/ or services to a company
2nd Tier Suppliers - ANS-a firm provides goods and/ or services to a company's first-tier
supplier
Downstream - ANS-direction in which products flow towards an end consumer.
Direction is the right.
Storage and consolidation/sorting
picking and packing, labeling
Upstream - ANS-direction from customers to suppliers. Direction is the left
central return center AKA reverse logistics activities
Business model - ANS-planning to purchase, transform, deliver, and sell products with
intent on making a profit
Supply Chain Visibility - ANS-ability to see what is happening with inventory up and
down a supply chain
Profit - ANS-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 - ANS-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 - ANS-ROI Formula
profit= revenue - cost - ANS-Profits Formula
Delivery time - ANS-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) - ANS-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
