SCM 300 FINAL EXAM 1 STUDY GUIDE QUESTIONS WITH
VERIFIED ANSWER 2026
Exam 1 Study Guide
MODULE ONE: What is Supply Chain Management? (9 TOAL QUESTIONS)
● Supply Chain Management: effective and efficient integration of suppliers,
manufacturers, transportation organizations and other parties responsible for
bringing products and services to market (doing the least amount of work for
the best product)
● Procurement (purchasing): responsible for acquiring materials, equipment,
products and services
○ Finding supplier that offers the best value
○ Negotiate terms of purchase
○ Create long-term relationships with suppliers
● Operations: responsible for making business processes effective and efficient
○ Making highest quality product with the fewest resources possible
Logistics: responsible for developing transportation itinerary (movement
and storage) to navigate smooth flow of materials
● Reverse Logistics: management of products that flow upstream (toward supplier)
● Global SCM: when supply chain partners span across multiple
countries/continents
● 1st tier suppliers: provides goods and services directly to a company
● 2nd tier supplier: provides goods and services to a company’s 1st tier supplier
● SCM flows: Materials, money, and information
-if these three are not continuously flowing, supply chain will fail
● Business model: a company’s plan for how it will purchase items, transform
them, deliver them, and sell them to product profit
○ Business to Consumer (B2C) - amazon, Starbucks, Nordstrom
○ Business to Business (B2B) - Boeing, consulting/marketing agencies
○ Both B2B and B2C - IBM, dell, Verizon
○ Brick & Mortar - land-based commerce only (ex. Burger King, Circle K)
○ Internet Only Retailer - net commerce only (ex. Amazon.com)
○ Click & Mortar - land-based and internet (ex. Nordstrom, Barnes and noble)
Supply Chain visibility: ability to see what is happening with inventory
upstream (toward supplier) and downstream (toward consumer)
● Profit relationship to SCM: if products are poorly manufactured or are delivered
, later and/or damaged it will affect a company’s ability to generate revenues
● ROI’s relationship to SCM: supply chain managers seek to maximize ROI so that
investment decreases and profit increases
● Competitive priorities: cost, quality, speed, flexibility
○ Cost: material, production, packaging, customer service, organizational, quality
○ Quality: design, material & production, quality level delivered, consistency,
service
○ Time: delivery (lead time), on-time delivery
○ Flexibility: product or customization flexibility (Oregano’s pizza on toppings),
volume flexibility (frozen pizza in volume but not toppings), mass customization
● Core competency: primary advantage over competitors (usually difficult, if not
impossible to replicate)
● Productivity vs. Value Perspectives (organization vs. customers)
○ Productivity: maximizing outputs and minimizing inputs (organizational
perspective)
○ Value: giving a customer more for the same price or the same amount for a lower
price (customer perspective)
,● Primary supply chain goals: effectiveness, efficiency, and adaptability
● Seven types of waste: decreasing one may increase another
○ Defects
○ Overproduction: wastes time, money and effort
○ Transportation (increases possibility of theft, damage, and loss)
○ Motion: too much movement wastes time
○ Waiting: items should not be produced too far in advance
○ Inventory: not providing an immediate return
○ Over-processing: wastes time and resources
● Keys to being a Successful Supply Chain Manager:
○ Satisfy needs of the customer: create value by creating competitive priority mix
○ Satisfy needs of the company: maximize productivity, eliminate waste
○ Be prepared for the future: responsive to change
● Supply Chain Strategy:
○ Understanding the product/service and the market’s desires
○ Developing a business model
○ Organizing the right group of supply chain partners
● Supply Chain Tools
○ Supply chain metrics: identifying successes and failures
○ Information technology tools: collect, organize, and report data
○ Relationship management skills
○ Financial resources: companies need to be willing to invest in their supply chain
○ Organizational integration: effective communication between all departments
List of terms likely to be tested from lectures:
Supply Chain Management - What is SCM?
• Supply Chain Management:
The Efficient Integration of….
-Suppliers and Manufacturers
-Transporters, Distribution centers, warehouses
-Retailers and all other parties associated tasked with the successful
delivery of the final product and/or service.
-Supply chain is…”only as strong as its weakest link”
-Efficiency is very important…how can you be efficient if you are not
integrated?
•Operations Management (key component to the supply chain): sign,
operation, and improvement of the production systems that efficiently
transform INPUTS into Finished Goods & Services, maximizing
productivity.
Ex of “duties”: Process management, Plant management, capacity planning
– resources, speed (How much, how fast?), scheduling jobs/people,
waiting line management, process improvement projects.
, • Logistics: is the COORDINATED Planning and Execution of the following:
o Preparation of Packaged Product
o Movement Itinerary (Transport)
o Storage Itinerary (Warehousing)
o Product Distribution throughout the Supply Chain –
-Who gets what? When? How?
Ex. of “duties”: Distribution/Warehousing, Infrastructure Management,
Packaging, containerization, transportation, documentation, Third party
management and communication
VERIFIED ANSWER 2026
Exam 1 Study Guide
MODULE ONE: What is Supply Chain Management? (9 TOAL QUESTIONS)
● Supply Chain Management: effective and efficient integration of suppliers,
manufacturers, transportation organizations and other parties responsible for
bringing products and services to market (doing the least amount of work for
the best product)
● Procurement (purchasing): responsible for acquiring materials, equipment,
products and services
○ Finding supplier that offers the best value
○ Negotiate terms of purchase
○ Create long-term relationships with suppliers
● Operations: responsible for making business processes effective and efficient
○ Making highest quality product with the fewest resources possible
Logistics: responsible for developing transportation itinerary (movement
and storage) to navigate smooth flow of materials
● Reverse Logistics: management of products that flow upstream (toward supplier)
● Global SCM: when supply chain partners span across multiple
countries/continents
● 1st tier suppliers: provides goods and services directly to a company
● 2nd tier supplier: provides goods and services to a company’s 1st tier supplier
● SCM flows: Materials, money, and information
-if these three are not continuously flowing, supply chain will fail
● Business model: a company’s plan for how it will purchase items, transform
them, deliver them, and sell them to product profit
○ Business to Consumer (B2C) - amazon, Starbucks, Nordstrom
○ Business to Business (B2B) - Boeing, consulting/marketing agencies
○ Both B2B and B2C - IBM, dell, Verizon
○ Brick & Mortar - land-based commerce only (ex. Burger King, Circle K)
○ Internet Only Retailer - net commerce only (ex. Amazon.com)
○ Click & Mortar - land-based and internet (ex. Nordstrom, Barnes and noble)
Supply Chain visibility: ability to see what is happening with inventory
upstream (toward supplier) and downstream (toward consumer)
● Profit relationship to SCM: if products are poorly manufactured or are delivered
, later and/or damaged it will affect a company’s ability to generate revenues
● ROI’s relationship to SCM: supply chain managers seek to maximize ROI so that
investment decreases and profit increases
● Competitive priorities: cost, quality, speed, flexibility
○ Cost: material, production, packaging, customer service, organizational, quality
○ Quality: design, material & production, quality level delivered, consistency,
service
○ Time: delivery (lead time), on-time delivery
○ Flexibility: product or customization flexibility (Oregano’s pizza on toppings),
volume flexibility (frozen pizza in volume but not toppings), mass customization
● Core competency: primary advantage over competitors (usually difficult, if not
impossible to replicate)
● Productivity vs. Value Perspectives (organization vs. customers)
○ Productivity: maximizing outputs and minimizing inputs (organizational
perspective)
○ Value: giving a customer more for the same price or the same amount for a lower
price (customer perspective)
,● Primary supply chain goals: effectiveness, efficiency, and adaptability
● Seven types of waste: decreasing one may increase another
○ Defects
○ Overproduction: wastes time, money and effort
○ Transportation (increases possibility of theft, damage, and loss)
○ Motion: too much movement wastes time
○ Waiting: items should not be produced too far in advance
○ Inventory: not providing an immediate return
○ Over-processing: wastes time and resources
● Keys to being a Successful Supply Chain Manager:
○ Satisfy needs of the customer: create value by creating competitive priority mix
○ Satisfy needs of the company: maximize productivity, eliminate waste
○ Be prepared for the future: responsive to change
● Supply Chain Strategy:
○ Understanding the product/service and the market’s desires
○ Developing a business model
○ Organizing the right group of supply chain partners
● Supply Chain Tools
○ Supply chain metrics: identifying successes and failures
○ Information technology tools: collect, organize, and report data
○ Relationship management skills
○ Financial resources: companies need to be willing to invest in their supply chain
○ Organizational integration: effective communication between all departments
List of terms likely to be tested from lectures:
Supply Chain Management - What is SCM?
• Supply Chain Management:
The Efficient Integration of….
-Suppliers and Manufacturers
-Transporters, Distribution centers, warehouses
-Retailers and all other parties associated tasked with the successful
delivery of the final product and/or service.
-Supply chain is…”only as strong as its weakest link”
-Efficiency is very important…how can you be efficient if you are not
integrated?
•Operations Management (key component to the supply chain): sign,
operation, and improvement of the production systems that efficiently
transform INPUTS into Finished Goods & Services, maximizing
productivity.
Ex of “duties”: Process management, Plant management, capacity planning
– resources, speed (How much, how fast?), scheduling jobs/people,
waiting line management, process improvement projects.
, • Logistics: is the COORDINATED Planning and Execution of the following:
o Preparation of Packaged Product
o Movement Itinerary (Transport)
o Storage Itinerary (Warehousing)
o Product Distribution throughout the Supply Chain –
-Who gets what? When? How?
Ex. of “duties”: Distribution/Warehousing, Infrastructure Management,
Packaging, containerization, transportation, documentation, Third party
management and communication
