SCM 4350 Midterm 1 Exam Questions with Correct Answers Latest Update 2025/2026
Sourcing impact on pretax bottom line - Answers Profit leverage effect ($1 saved= $1 earned)
SCM relationship to cost structure, relationship of spend to financials, how much you are
spending - Answers Spend visibility: we do not have 100% visibility. Good to get 80%.
Concurrent Engineering - Answers Concurrent Engineering is collaboration in the design phase
ESI - Answers Early Supplier Involvement can create a 20%+ improvement on cost of materials
How supply chain management Impacts sales - Answers deliver the promises that are made by
marketing and allow companies to link the sources together to increase revenues and maximize
profits.
P to P cycle steps - Answers 1. Requisition, 2. RFX, 3. Contract Award, 4. Purchase Order, 5.
Approval, 6. Receipt and Payment
Documents Needed for Accounts Payable to Pay Invoice - Answers 1. Purchase Order, 2.
Receiving Document, 3. Invoice
Key Documents in P to P Cycle and their definitions - Answers Purchase Order- Legal document,
terms, and conditions buying how many and what we're buying.
A requisition that says where do we deliver the product that we ordered (where does it end up)
Quality - Answers 80% of Quality problems come from suppliers
What is SSQDC - Answers Safety, Sustainability, Quality, Delivery, Cost
First 5 Steps of Strategic Sourcing - Answers 1. Spend Analysis, 2. Supply Market Assessment, 3.
Cost Analysis, 4. Supplier Evaluation, 5. Sourcing Strategy
Sole Source vs. Single Source - Answers Sole Source is the only option and single source is a
choice to source from only one supplier
Contract Manufacturing - Answers Third-party manufacturer of components or products for a
company. Form of outsourcing.
Outsourcing - Answers Outsourcing: cost-cutting measure by hiring outside of the company to
create goods & services
What is vertical integration? - Answers Making components/parts instead of buying
Specifications vs. SOWs - Answers Specifications are the characteristics of a product and SOW
(Statement of Work) is the description of work for a service
Why should we estimate the cost of suppliers to make a product? (cost structure) - Answers
Sourcing impact on pretax bottom line - Answers Profit leverage effect ($1 saved= $1 earned)
SCM relationship to cost structure, relationship of spend to financials, how much you are
spending - Answers Spend visibility: we do not have 100% visibility. Good to get 80%.
Concurrent Engineering - Answers Concurrent Engineering is collaboration in the design phase
ESI - Answers Early Supplier Involvement can create a 20%+ improvement on cost of materials
How supply chain management Impacts sales - Answers deliver the promises that are made by
marketing and allow companies to link the sources together to increase revenues and maximize
profits.
P to P cycle steps - Answers 1. Requisition, 2. RFX, 3. Contract Award, 4. Purchase Order, 5.
Approval, 6. Receipt and Payment
Documents Needed for Accounts Payable to Pay Invoice - Answers 1. Purchase Order, 2.
Receiving Document, 3. Invoice
Key Documents in P to P Cycle and their definitions - Answers Purchase Order- Legal document,
terms, and conditions buying how many and what we're buying.
A requisition that says where do we deliver the product that we ordered (where does it end up)
Quality - Answers 80% of Quality problems come from suppliers
What is SSQDC - Answers Safety, Sustainability, Quality, Delivery, Cost
First 5 Steps of Strategic Sourcing - Answers 1. Spend Analysis, 2. Supply Market Assessment, 3.
Cost Analysis, 4. Supplier Evaluation, 5. Sourcing Strategy
Sole Source vs. Single Source - Answers Sole Source is the only option and single source is a
choice to source from only one supplier
Contract Manufacturing - Answers Third-party manufacturer of components or products for a
company. Form of outsourcing.
Outsourcing - Answers Outsourcing: cost-cutting measure by hiring outside of the company to
create goods & services
What is vertical integration? - Answers Making components/parts instead of buying
Specifications vs. SOWs - Answers Specifications are the characteristics of a product and SOW
(Statement of Work) is the description of work for a service
Why should we estimate the cost of suppliers to make a product? (cost structure) - Answers
