SCM 300 Exam 1 ASU Questions and Correct
Answers with Complete Solutions | New Update
2026/27 | Graded A+
3 branches of supply chain - ANSWERS procurement (purchasing), operation,
logistics, reverse
Procurement (purchasing) - ANSWERS the branch of supply chain where deals
happen, negotiations for the best price on materials, equipment, goods, and
services. acquiring materials and placing orders.
Operations - ANSWERS the branch responsible for making business processes
effective and efficient (help create high quality products/services using fewest
resources possible).
Logistics - ANSWERS is concerned with transportation, finding the right
partners or best ways to get the product or service from origin to consumption.
Key variable in elementary inventory calculations - ANSWERS Q - lot size
D - annual demand
C - cost to purchase one unite
H - cost to hold on unit of inventory in one year
S - cost to place a single order
, Annual cost to purchase inventory - ANSWERS DC
Annual Holding Cost (AHC) - ANSWERS (Q/2)*H
Annual Ordering Cost (AOC) - ANSWERS (D/Q)S
Equation for total cost - ANSWERS DC + AHC + AOC
Economic Order Quantity (EOQ) - ANSWERS the lot size that minimizes total
annual inventory holding and ordering costs, making it the optimal lot size
= SQRT (2DS/H)
if a manager is looking to minimize inventory costs and maximize total annual
savings then he would calculate optimal lot size through this formula.
Cycle time - ANSWERS the pace at which product must move through the
assembly line in order for the assembly line to keep pace with demand.
= Operating Time/D
Theoretical Minimum number of workstations calculations (TM) - ANSWERS
total task time / cycle time
3 Supply Chain Flows - ANSWERS Money, material, information
downstream supply chain - ANSWERS the direction that points towards the
end customer
Answers with Complete Solutions | New Update
2026/27 | Graded A+
3 branches of supply chain - ANSWERS procurement (purchasing), operation,
logistics, reverse
Procurement (purchasing) - ANSWERS the branch of supply chain where deals
happen, negotiations for the best price on materials, equipment, goods, and
services. acquiring materials and placing orders.
Operations - ANSWERS the branch responsible for making business processes
effective and efficient (help create high quality products/services using fewest
resources possible).
Logistics - ANSWERS is concerned with transportation, finding the right
partners or best ways to get the product or service from origin to consumption.
Key variable in elementary inventory calculations - ANSWERS Q - lot size
D - annual demand
C - cost to purchase one unite
H - cost to hold on unit of inventory in one year
S - cost to place a single order
, Annual cost to purchase inventory - ANSWERS DC
Annual Holding Cost (AHC) - ANSWERS (Q/2)*H
Annual Ordering Cost (AOC) - ANSWERS (D/Q)S
Equation for total cost - ANSWERS DC + AHC + AOC
Economic Order Quantity (EOQ) - ANSWERS the lot size that minimizes total
annual inventory holding and ordering costs, making it the optimal lot size
= SQRT (2DS/H)
if a manager is looking to minimize inventory costs and maximize total annual
savings then he would calculate optimal lot size through this formula.
Cycle time - ANSWERS the pace at which product must move through the
assembly line in order for the assembly line to keep pace with demand.
= Operating Time/D
Theoretical Minimum number of workstations calculations (TM) - ANSWERS
total task time / cycle time
3 Supply Chain Flows - ANSWERS Money, material, information
downstream supply chain - ANSWERS the direction that points towards the
end customer
