SCM 300 Exam 1 Study Guide Latest
Updated
Supply Chain Management (SCM) - ANS-The management of information flows
between and among activities in a supply chain to maximize total supply chain
effectiveness and profitability
procurement - ANS-Purchases inputs such as raw materials, resources, equipment, and
supplies
Operations - ANS-Transforms raw materials or inputs into goods and services
Logistics - ANS-Those activities that focus on getting the right amount of the right
products to the right place at the right time at the lowest possible cost
Reverse Logistics - ANS-A process of reclaiming recyclable and reusable materials,
returns, and reworks from the point of consumption or use for repair, remanufacturing,
redistribution, or disposal
Global SCM - ANS-The distribution of goods and services throughout a trans-national
company
1st Tier Supplier - ANS-Companies direct supplier
2nd Tier Supplier - ANS-A firm that provides goods and/or services to a company's first-
tier supplier.
Upstream vs. Downstream - ANS--Upstream: the direction that points toward the
suppliers.
-Downstream: the direction that points toward the end consumer
Three SCM Flows - ANS-Materials, Money, and Information
Business Model - ANS-Outlines the need the firm will fill, the operations of the business,
its components and functions, as well as the expected revenues and expenses
Business Model - Basic Types - ANS-
Supply Chain Visibility - ANS-The ability of all organizations in a supply chain to access
or view relevant data on purchased materials as these materials move through their
suppliers' production processes.
, Profit and ROI's relationship to SCM - ANS--Profit: SC plays a role in controlling types of
costs that ensure manufacturing and delivery, which can increase profit.
-ROI: SC seek to help maximize ROI, by creating great products and delivering them
quickly, customers may be willing to pay more.
Stakeholders - ANS-All the people who stand to gain or lose by the policies and
activities of a business and whose concerns the business needs to address.
Competitive Priorities - ANS-Cost, Quality, Time/Speed, Flexibility
Core Competencies - ANS-Things a company does extremely well, which sometimes
give it an advantage over its competition
Productivity vs. Value - ANS--Productivity: maximize the amount of outputs that can be
produced and delivered to market while minimizing the required inputs.
-Value: ratio of "output purchased"/ "inputs used to purchase"
Primary Supply Chain Goals - ANS-Sustainable long term profits and/or Maximize
return on investment
Seven Types of Waste - ANS-(1) Defects: poorly manufactured products are garbage
(2) Overproduction: making products no one needs is a waste of time, money, and effort
(3) Transportation: moving products doesn't make the product better, it incr. the
possibility of theft, damage, and loss
(4) Motion: if employees move too much in a SC they could get tired, injured, or be
wasting time
(5) Waiting: Work-in-process waiting to be finished was made too early. Items should
not be produced too far in advance
(6) Inventory: shelf items are not providing an immediate return, could be lost, broken,
or stolen
(7) Over-processing: doing work that is unnecessary or undesired is a waste of time and
resources.
Keys to being a successful SC Manager - ANS-(1) Satisfy the needs of the customer
(2) Satisfy the needs of the company
(3) Be prepared for the future.
SC Strategy - ANS-a. Understanding the product/service and the market's desires
b. Developing a business model
c. Organizing the right group of supply chain partners
SC Tools - ANS-(a) Supply chain metrics
(b) Information technology tools
(c) Relationship management skills
(d) Financial resources
Updated
Supply Chain Management (SCM) - ANS-The management of information flows
between and among activities in a supply chain to maximize total supply chain
effectiveness and profitability
procurement - ANS-Purchases inputs such as raw materials, resources, equipment, and
supplies
Operations - ANS-Transforms raw materials or inputs into goods and services
Logistics - ANS-Those activities that focus on getting the right amount of the right
products to the right place at the right time at the lowest possible cost
Reverse Logistics - ANS-A process of reclaiming recyclable and reusable materials,
returns, and reworks from the point of consumption or use for repair, remanufacturing,
redistribution, or disposal
Global SCM - ANS-The distribution of goods and services throughout a trans-national
company
1st Tier Supplier - ANS-Companies direct supplier
2nd Tier Supplier - ANS-A firm that provides goods and/or services to a company's first-
tier supplier.
Upstream vs. Downstream - ANS--Upstream: the direction that points toward the
suppliers.
-Downstream: the direction that points toward the end consumer
Three SCM Flows - ANS-Materials, Money, and Information
Business Model - ANS-Outlines the need the firm will fill, the operations of the business,
its components and functions, as well as the expected revenues and expenses
Business Model - Basic Types - ANS-
Supply Chain Visibility - ANS-The ability of all organizations in a supply chain to access
or view relevant data on purchased materials as these materials move through their
suppliers' production processes.
, Profit and ROI's relationship to SCM - ANS--Profit: SC plays a role in controlling types of
costs that ensure manufacturing and delivery, which can increase profit.
-ROI: SC seek to help maximize ROI, by creating great products and delivering them
quickly, customers may be willing to pay more.
Stakeholders - ANS-All the people who stand to gain or lose by the policies and
activities of a business and whose concerns the business needs to address.
Competitive Priorities - ANS-Cost, Quality, Time/Speed, Flexibility
Core Competencies - ANS-Things a company does extremely well, which sometimes
give it an advantage over its competition
Productivity vs. Value - ANS--Productivity: maximize the amount of outputs that can be
produced and delivered to market while minimizing the required inputs.
-Value: ratio of "output purchased"/ "inputs used to purchase"
Primary Supply Chain Goals - ANS-Sustainable long term profits and/or Maximize
return on investment
Seven Types of Waste - ANS-(1) Defects: poorly manufactured products are garbage
(2) Overproduction: making products no one needs is a waste of time, money, and effort
(3) Transportation: moving products doesn't make the product better, it incr. the
possibility of theft, damage, and loss
(4) Motion: if employees move too much in a SC they could get tired, injured, or be
wasting time
(5) Waiting: Work-in-process waiting to be finished was made too early. Items should
not be produced too far in advance
(6) Inventory: shelf items are not providing an immediate return, could be lost, broken,
or stolen
(7) Over-processing: doing work that is unnecessary or undesired is a waste of time and
resources.
Keys to being a successful SC Manager - ANS-(1) Satisfy the needs of the customer
(2) Satisfy the needs of the company
(3) Be prepared for the future.
SC Strategy - ANS-a. Understanding the product/service and the market's desires
b. Developing a business model
c. Organizing the right group of supply chain partners
SC Tools - ANS-(a) Supply chain metrics
(b) Information technology tools
(c) Relationship management skills
(d) Financial resources
