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SCMN 3730 EXAM 1 WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST 2024 – 2025 ALREADY GRADED A+
What are the features of the new model of progressive purchasing? - (answers)-
developing closer relationships with important suppliers
-performing due diligence on suppliers before awarding longer term contracts
-conducting worldwide internet searches for the best sources of supply
-inviting key suppliers to participate in product and process development.
What index does ISM issue monthly, and what does a score of 50 represent? -
(answers)A change index report on business
A score of 50 means the market is neither expanding nor contracting
What is a value chain composed of? - (answers)Primary and secondary support
activities that can lead to competitive advantage
What is meant by extended enterprise? - (answers)A company does not operate
in isolation because its success is dependent upon a network of partner
relationships
Direct Materials - (answers)Items provided by suppliers and used directly during
production or service delivery; specific in making a product and its final form
What are all the functional management activities under the Supply Chain
umbrella? - (answers)Purchasing
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Inbound transportation
Quality control
Demand and supply planning
Receiving, materials handling, and storage
Material or inventory control
Order processing
Production planning, scheduling, and control
Shipping/Warehousing/Distribution
Outbound transportation
Customer service
What is the average percentage of purchases to sales in the manufacturing
sector? - (answers)In manufacturing, purchased content is more than 55% of
revenues
Explain the relationship between outsourcing and core competencies. -
(answers)Buyer focuses on core competencies and outsources non-core activities
and materials
What is the difference between Purchasing / Procurement and Supply
Management? - (answers)Supply management is a more broad concept than
purchasing
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What is the difference between a supply chain and a value chain? - (answers)The
value chain is the entire production chain, and the supply chain is just a portion or
subset of the value chain process
What is meant by the term process approach? - (answers)Identifying, evaluating,
selecting, managing, and developing suppliers to improve performance & moving
across functional area boundaries
What is meant by the term cross-functional? - (answers)Sharing information
Suppliers as an extension of the buying company
What is meant by the term 3PL? - (answers)Third party logistics
an independent logistics provider that performs any or all of the functions
required to get a client's product to market
What is meant by maverick spending? - (answers)-User selects different supplier
than supply management has approved
-May be acceptable when there is small chance of risk
-Loss of opportunity to control cost and/or leverage purchase volume
-Exposes firm to greater risk
What are the steps in the purchasing cycle? - (answers)Identify user requirements
Evaluate user needs effectively and efficiently
Identify suppliers to meet that need
SCMN 3730 EXAM 1 WITH CORRECT ACTUAL
QUESTIONS AND CORRECTLY WELL DEFINED
ANSWERS LATEST 2024 – 2025 ALREADY GRADED A+
What are the features of the new model of progressive purchasing? - (answers)-
developing closer relationships with important suppliers
-performing due diligence on suppliers before awarding longer term contracts
-conducting worldwide internet searches for the best sources of supply
-inviting key suppliers to participate in product and process development.
What index does ISM issue monthly, and what does a score of 50 represent? -
(answers)A change index report on business
A score of 50 means the market is neither expanding nor contracting
What is a value chain composed of? - (answers)Primary and secondary support
activities that can lead to competitive advantage
What is meant by extended enterprise? - (answers)A company does not operate
in isolation because its success is dependent upon a network of partner
relationships
Direct Materials - (answers)Items provided by suppliers and used directly during
production or service delivery; specific in making a product and its final form
What are all the functional management activities under the Supply Chain
umbrella? - (answers)Purchasing
,2|Page
Inbound transportation
Quality control
Demand and supply planning
Receiving, materials handling, and storage
Material or inventory control
Order processing
Production planning, scheduling, and control
Shipping/Warehousing/Distribution
Outbound transportation
Customer service
What is the average percentage of purchases to sales in the manufacturing
sector? - (answers)In manufacturing, purchased content is more than 55% of
revenues
Explain the relationship between outsourcing and core competencies. -
(answers)Buyer focuses on core competencies and outsources non-core activities
and materials
What is the difference between Purchasing / Procurement and Supply
Management? - (answers)Supply management is a more broad concept than
purchasing
, 3|Page
What is the difference between a supply chain and a value chain? - (answers)The
value chain is the entire production chain, and the supply chain is just a portion or
subset of the value chain process
What is meant by the term process approach? - (answers)Identifying, evaluating,
selecting, managing, and developing suppliers to improve performance & moving
across functional area boundaries
What is meant by the term cross-functional? - (answers)Sharing information
Suppliers as an extension of the buying company
What is meant by the term 3PL? - (answers)Third party logistics
an independent logistics provider that performs any or all of the functions
required to get a client's product to market
What is meant by maverick spending? - (answers)-User selects different supplier
than supply management has approved
-May be acceptable when there is small chance of risk
-Loss of opportunity to control cost and/or leverage purchase volume
-Exposes firm to greater risk
What are the steps in the purchasing cycle? - (answers)Identify user requirements
Evaluate user needs effectively and efficiently
Identify suppliers to meet that need
