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SCM 300 Supply Chain Management Exam 1 Study Guide &
Review 2026 UPDATE
supply chain management scm 300 exam 1 review
Class this is the consolidated study guide for exam 1, 99% of the exam is contained in this study
guide. I will provide formulas for the exam.
SCM 300 – Spring A Exam 1 Study Guide
1. 3 branches of supply chain & what they are responsible for
1. Procurement, (Purchasing): the branch of supply chain where deals happen, negotiations a for
the best price on materials, equipment, goods, and services.
2. Operation: the branch responsible for efficiency, operation help the organization to create and
acquire high quality products or services while using the fewest resources from the
organizations end.
3. Logistics: is concerned with transportation, finding the right partners or best ways to get the
product or service from origin to consumption. 4. Reverse
2. DC, TBO, AHC, AOC, EOQ, total annual savings, minimum inventory levels, cycle time,
theoretical minimum number of workstations calculations & logic (formulas will be provided)
1. Key variable in elementary inventory calculations:
1. Q - Lot size
2. D – annual demand
3. C – Cost to purchase one unite
4. H – Cost to hold one unit of inventory in one year
5. S – Cost to place a single order
2. Annual cost to purchase inventory = DC
3. Annual holding cost (AHC) = (Q/2)*H
4. Annual ordering cost (AOC) = (D/Q)*S
1. TC = DC + AHC + AOC
5. Economic Order Quantity (EOQ): EOQ is the lot size (Q) that will minimize total inventory
cost (TC) , making it the optimal lot size.
1. Calculations: EOQ = SQRT { (2DS) / (H) }
2. So, if a manager is looking to minimize inventory costs and maximize total annual
savings then he would calculate optimal lot size through this formula.
6. Cycle time: is the pace at which products move through the assembly time to meet the
demand for that given product.
1. Cycle Time = Operating time / Demand OR OT / D
7. Theoretical Minimum number of workstation calculations (TM):
1. = Total Task Time/ Cycle Time TM OR t/c
3. Simple moving average & weighted moving average calculations
4. 3 supply chain flows
1. Money, Material, Information.
2. Downstream Supply Chain: the direction that points moving towards the end consumer. 1.
e.g., (finding ways to get goods and services to the consumer efficiently)
2. delivering goods from a manufacturer to a distributer.
3. Main suppliers (S1) working to get parts prepared in time for the manufacturer
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3. Upstream Supply Chain: Going backwards, moving towards the supplier.
1. e.g. (Finding ways to maximize efficiency coming back)
2. see if all the boxes that have arrived at the retailer are empty and not damaged to
send them back for reuse
3. developing relationships with the companies first tier supplier to enhance and better
communication.
5. Supply chain competitive priorities
1. COST, QUALITY, SPEED, FLEXABILITY
1. Cost: Material, energy, waste, transportation
2. Quality: Design, reliability, consistency, materials or fabrics.
3. Speed: Delivery, on time, innovative time.
4. Flexibility: Customization, size of orders, design.
1. It is important to understand how each of these competitive priorities relate
to the context of what your company is offering as well as what their
customers are expecting. For example, a fast food restaurant will customize
these priorities differently from a higher up restaurant.
6. Types of inventory
1. Raw materials: materials that will be used to create an item or a service. Have not yet begun
their manufacture to create them into a god or a service.
2. Work-In-Process (WIP): Items that have gone through the manufacturing but have not been
completed. Example, a partially assembled shovel.
3. Finished goods (FG): items that have completed manufacturing and are ready for shipment.
4. Maintenance, Repair, and Operations (MRO): Items that are not intended for the Finished
goods but are important to the day to day operations of the business. (Examples, Desks,
papers, computers, cleaning material for the office, and so on).
5. Market Inventory: Inventory readily available on the shelfs, like “Ragu Tomato sauce.”
6. Safety stock (Buffer stock): inventory to insure demand is met, if a company ships 100 soccer
balls every Sunday of the week, for Buffer stock they would ship 125, the extra 25 is the
buffer stock.
7. Anticipation Inventory : Inventory created for the purpose of storage to use in the future.
8. Pipeline Inventory : Inventory that is moving from one point in the supply chain to another.
For example, the amount of time it takes a shovel from raw material (Point A) to being on the
shelves (Point B). this is also known as lead time.
1. To calculate Pipeline inventory, you = Periodic Demand* Lead time.
9. Inventory visibility (Supply Chain Visibility): The ability to see or visualize what is
happening with inventory upstream and downstream.
7. Definitions:
1. Drop Shipment: a three-party system made up of, retailer (show casing products),
Manufacturer (creating the goods and services to be sold), and the consumer (the person
ordering). Cutting out the middle man in the process.
2. Dunnage: bubble wrap, Styrofoam popcorn, small inflatable air bags, large inflatable
airbags.
3. ROI: A ratio of Total Profit/ Total Investment.
4. Cross Dock: Distribution of goods from an upstream supplier to a downstream
customer.
5. MRO: Items that are not intended for finished goods but required for a healthy office,
desks, computers, cleaning supplies and so on.
6. Supplier certifications: A list of standards that that is wanted form the buyer buying
from the supplier. The official certification can be done by a supplier or by a third-party
company.
SCM 300 Supply Chain Management Exam 1 Study Guide &
Review 2026 UPDATE
supply chain management scm 300 exam 1 review
Class this is the consolidated study guide for exam 1, 99% of the exam is contained in this study
guide. I will provide formulas for the exam.
SCM 300 – Spring A Exam 1 Study Guide
1. 3 branches of supply chain & what they are responsible for
1. Procurement, (Purchasing): the branch of supply chain where deals happen, negotiations a for
the best price on materials, equipment, goods, and services.
2. Operation: the branch responsible for efficiency, operation help the organization to create and
acquire high quality products or services while using the fewest resources from the
organizations end.
3. Logistics: is concerned with transportation, finding the right partners or best ways to get the
product or service from origin to consumption. 4. Reverse
2. DC, TBO, AHC, AOC, EOQ, total annual savings, minimum inventory levels, cycle time,
theoretical minimum number of workstations calculations & logic (formulas will be provided)
1. Key variable in elementary inventory calculations:
1. Q - Lot size
2. D – annual demand
3. C – Cost to purchase one unite
4. H – Cost to hold one unit of inventory in one year
5. S – Cost to place a single order
2. Annual cost to purchase inventory = DC
3. Annual holding cost (AHC) = (Q/2)*H
4. Annual ordering cost (AOC) = (D/Q)*S
1. TC = DC + AHC + AOC
5. Economic Order Quantity (EOQ): EOQ is the lot size (Q) that will minimize total inventory
cost (TC) , making it the optimal lot size.
1. Calculations: EOQ = SQRT { (2DS) / (H) }
2. So, if a manager is looking to minimize inventory costs and maximize total annual
savings then he would calculate optimal lot size through this formula.
6. Cycle time: is the pace at which products move through the assembly time to meet the
demand for that given product.
1. Cycle Time = Operating time / Demand OR OT / D
7. Theoretical Minimum number of workstation calculations (TM):
1. = Total Task Time/ Cycle Time TM OR t/c
3. Simple moving average & weighted moving average calculations
4. 3 supply chain flows
1. Money, Material, Information.
2. Downstream Supply Chain: the direction that points moving towards the end consumer. 1.
e.g., (finding ways to get goods and services to the consumer efficiently)
2. delivering goods from a manufacturer to a distributer.
3. Main suppliers (S1) working to get parts prepared in time for the manufacturer
, lOMoARcPSD| 63525276
3. Upstream Supply Chain: Going backwards, moving towards the supplier.
1. e.g. (Finding ways to maximize efficiency coming back)
2. see if all the boxes that have arrived at the retailer are empty and not damaged to
send them back for reuse
3. developing relationships with the companies first tier supplier to enhance and better
communication.
5. Supply chain competitive priorities
1. COST, QUALITY, SPEED, FLEXABILITY
1. Cost: Material, energy, waste, transportation
2. Quality: Design, reliability, consistency, materials or fabrics.
3. Speed: Delivery, on time, innovative time.
4. Flexibility: Customization, size of orders, design.
1. It is important to understand how each of these competitive priorities relate
to the context of what your company is offering as well as what their
customers are expecting. For example, a fast food restaurant will customize
these priorities differently from a higher up restaurant.
6. Types of inventory
1. Raw materials: materials that will be used to create an item or a service. Have not yet begun
their manufacture to create them into a god or a service.
2. Work-In-Process (WIP): Items that have gone through the manufacturing but have not been
completed. Example, a partially assembled shovel.
3. Finished goods (FG): items that have completed manufacturing and are ready for shipment.
4. Maintenance, Repair, and Operations (MRO): Items that are not intended for the Finished
goods but are important to the day to day operations of the business. (Examples, Desks,
papers, computers, cleaning material for the office, and so on).
5. Market Inventory: Inventory readily available on the shelfs, like “Ragu Tomato sauce.”
6. Safety stock (Buffer stock): inventory to insure demand is met, if a company ships 100 soccer
balls every Sunday of the week, for Buffer stock they would ship 125, the extra 25 is the
buffer stock.
7. Anticipation Inventory : Inventory created for the purpose of storage to use in the future.
8. Pipeline Inventory : Inventory that is moving from one point in the supply chain to another.
For example, the amount of time it takes a shovel from raw material (Point A) to being on the
shelves (Point B). this is also known as lead time.
1. To calculate Pipeline inventory, you = Periodic Demand* Lead time.
9. Inventory visibility (Supply Chain Visibility): The ability to see or visualize what is
happening with inventory upstream and downstream.
7. Definitions:
1. Drop Shipment: a three-party system made up of, retailer (show casing products),
Manufacturer (creating the goods and services to be sold), and the consumer (the person
ordering). Cutting out the middle man in the process.
2. Dunnage: bubble wrap, Styrofoam popcorn, small inflatable air bags, large inflatable
airbags.
3. ROI: A ratio of Total Profit/ Total Investment.
4. Cross Dock: Distribution of goods from an upstream supplier to a downstream
customer.
5. MRO: Items that are not intended for finished goods but required for a healthy office,
desks, computers, cleaning supplies and so on.
6. Supplier certifications: A list of standards that that is wanted form the buyer buying
from the supplier. The official certification can be done by a supplier or by a third-party
company.
