SCM 310 EXAM 2 QUESTIONS WITH
100% CORRECT ANSWERS LATEST
VERSION 2025/2026.
APICS Dictionary definition of Supply Chain Management - ANS the global network used to
deliver products and services from raw materials to end customers through an engineered flow
of information, physical distribution, and cash.
Cash to Cash Cycle time - ANS critical to supply chain success. Measure of how long after you
receive payment for the products you sell that you pay your suppliers. Positive cycle means your
company is paying for the products before you receive them and sell them to customers.
Negative cycle means suppliers are paid after your company is paid by your customers.
When did term supply chain management first appear - ANS 1989 in the Financial Times.
Really caught on in the mid 1990s
Supply Chain Council (1995) - ANS partnership between commercial companies and major
consulting firms to establish standards for supply chain. Developed Supply Chain Operations
Reference Model (SCOR) to describe the supply chain.
SCOR - ANS designed to provide a cross-industry standard for supply chain operations and
metrics to improve and benchmark supply chain operations regardless of the industry.
-plan
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,-source
-make
-deliver
-return
-enable
Why is supply chain management important to the operations management chain? -
ANS supply chain expenses account for the majority of expenses of a company. supply chain
can account for 60% of a company's total cost, 100% of inventory, and all of customer service
required to drive sales.From a customer perspective, the supply chain may be all they see of the
company outside of the website.
Friedman's theory on Supply Chain Globalization - ANS internet and supply chain
globalization, to include the outsourcing and off-shoring of operations, is what has leveled the
playing field for all companies.
supply chain uncertainty-forecasting - ANS forecasting. The longer the supply chain is
extended the impacts will be more to the overall forecasts throughout the supply chain. Also
larger chance for distortion of information among the supply chain (bullwhip effect.)
supply chain uncertainty-customer ordering patterns - ANS suppliers get batched orders from
retailers and individual orders from their corporate web sites. The ordering patterns of the
customers, coupled with the batched orders of the retailers impact the ability of the suppliers to
accurately forecast demand patterns. The result is the need to carry insurance in the form of
inventory.
Information in supply chain - ANS flow of information will help to reduce some or all of the
uncertainties associated with supply chains. As supply chains become more complex and global,
the need to pass information digitally and capture information digitally has become more
important.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, tracking items in the supply chain - ANS supply chain info systems have to provide visibility
throughout the entire supply chain and provide the customer the ability to track the item
through the delivery end of the supply chain once an order has been placed. rfid and bar codes
are methods of tracking.
EDI - ANS electronic communication of business transactions, such as orders, confirmations
and invoices, between organizations.
e-commerce and supply chain - ANS theoretically, info systems coupled with globalized
supply chain connected via the internet should reduce prices (because of the ability to increase
competition for the raw materials and products as more suppliers become available) and costs (
because reduction in travel expenses and ability to outsource) and because of automating
previously manual systems and processes. However, if the manual processes weren't actually
necessary, there will be no savings in the supply chain. If the proper system isn't implemented,
there will be no savings. Electronic commerce enables companies to shorten order cycle times,
producing more satisfied customers, thus producing more commerce.
Bar Codes - ANS before bar codes and RFID, items were tracked, inventoried, and ordered
using 80 column punch cards. Bar codes made their appearance in the early 1960s with the us
army. they are a series of vertical lines and spaces. universal product code has 13 digits. First
two digits are country codes, next five digits represent the company code, next five represent
the product or article code, and the last digit is a check digit. Universal Product Code.
RFID - ANS provides benefits of scanning like bar codes but also enables quicker inventories
and more accurate inventories through the use of scanners. The problems are the cost of
tags/infrastructure and that the tags cannot be read through liquids, must be read from close
distances, and aren't compatible with cell phones.
Information benefits - ANS Replacing inventory with information. better flow of info leads to
better collar between supply chain partners and reduced variability in the supply chain. This
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
100% CORRECT ANSWERS LATEST
VERSION 2025/2026.
APICS Dictionary definition of Supply Chain Management - ANS the global network used to
deliver products and services from raw materials to end customers through an engineered flow
of information, physical distribution, and cash.
Cash to Cash Cycle time - ANS critical to supply chain success. Measure of how long after you
receive payment for the products you sell that you pay your suppliers. Positive cycle means your
company is paying for the products before you receive them and sell them to customers.
Negative cycle means suppliers are paid after your company is paid by your customers.
When did term supply chain management first appear - ANS 1989 in the Financial Times.
Really caught on in the mid 1990s
Supply Chain Council (1995) - ANS partnership between commercial companies and major
consulting firms to establish standards for supply chain. Developed Supply Chain Operations
Reference Model (SCOR) to describe the supply chain.
SCOR - ANS designed to provide a cross-industry standard for supply chain operations and
metrics to improve and benchmark supply chain operations regardless of the industry.
-plan
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,-source
-make
-deliver
-return
-enable
Why is supply chain management important to the operations management chain? -
ANS supply chain expenses account for the majority of expenses of a company. supply chain
can account for 60% of a company's total cost, 100% of inventory, and all of customer service
required to drive sales.From a customer perspective, the supply chain may be all they see of the
company outside of the website.
Friedman's theory on Supply Chain Globalization - ANS internet and supply chain
globalization, to include the outsourcing and off-shoring of operations, is what has leveled the
playing field for all companies.
supply chain uncertainty-forecasting - ANS forecasting. The longer the supply chain is
extended the impacts will be more to the overall forecasts throughout the supply chain. Also
larger chance for distortion of information among the supply chain (bullwhip effect.)
supply chain uncertainty-customer ordering patterns - ANS suppliers get batched orders from
retailers and individual orders from their corporate web sites. The ordering patterns of the
customers, coupled with the batched orders of the retailers impact the ability of the suppliers to
accurately forecast demand patterns. The result is the need to carry insurance in the form of
inventory.
Information in supply chain - ANS flow of information will help to reduce some or all of the
uncertainties associated with supply chains. As supply chains become more complex and global,
the need to pass information digitally and capture information digitally has become more
important.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, tracking items in the supply chain - ANS supply chain info systems have to provide visibility
throughout the entire supply chain and provide the customer the ability to track the item
through the delivery end of the supply chain once an order has been placed. rfid and bar codes
are methods of tracking.
EDI - ANS electronic communication of business transactions, such as orders, confirmations
and invoices, between organizations.
e-commerce and supply chain - ANS theoretically, info systems coupled with globalized
supply chain connected via the internet should reduce prices (because of the ability to increase
competition for the raw materials and products as more suppliers become available) and costs (
because reduction in travel expenses and ability to outsource) and because of automating
previously manual systems and processes. However, if the manual processes weren't actually
necessary, there will be no savings in the supply chain. If the proper system isn't implemented,
there will be no savings. Electronic commerce enables companies to shorten order cycle times,
producing more satisfied customers, thus producing more commerce.
Bar Codes - ANS before bar codes and RFID, items were tracked, inventoried, and ordered
using 80 column punch cards. Bar codes made their appearance in the early 1960s with the us
army. they are a series of vertical lines and spaces. universal product code has 13 digits. First
two digits are country codes, next five digits represent the company code, next five represent
the product or article code, and the last digit is a check digit. Universal Product Code.
RFID - ANS provides benefits of scanning like bar codes but also enables quicker inventories
and more accurate inventories through the use of scanners. The problems are the cost of
tags/infrastructure and that the tags cannot be read through liquids, must be read from close
distances, and aren't compatible with cell phones.
Information benefits - ANS Replacing inventory with information. better flow of info leads to
better collar between supply chain partners and reduced variability in the supply chain. This
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
