SCM 300 Exam 1 | ASU | Professor Davila |
Modules 1-4
200 Practice Questions with Answers &
Rationales | 2026/2027
MODULE 1: INTRODUCTION TO SUPPLY CHAIN MANAGEMENT
Questions 1-50
Q1. Supply Chain Management is defined as:
A) The process of moving finished goods to customers
B) The effective and efficient integration of suppliers, manufacturers, transporters,
warehouses, retailers, and all parties involved in delivering the final product
C) The purchasing function within an organization
D) Managing only the logistics of a company
Answer: B) The effective and efficient integration of suppliers, manufacturers,
transporters, warehouses, retailers, and all parties involved in delivering the
final product
Rationale: SCM involves the efficient integration of ALL parties associated with
delivering the final product, including material, information, and financial flows
from raw material to end consumer. This is broader than just logistics or
purchasing .
Q2. According to Professor Davila, the three key components of SCM are:
A) Buying, Selling, Shipping
B) Procurement, Operations, Logistics
C) Planning, Sourcing, Delivering
D) Make, Move, Store
Answer: B) Procurement, Operations, Logistics
,Rationale: The three core branches of SCM are Procurement (Buy it), Operations
(Make it), and Logistics (Move it). This is the foundational framework of the
course .
Q3. The SCM flow/strategy sequence is:
A) Make it → Buy it → Move it → Sell it → Service it
B) Buy it → Make it → Move it → Sell it → Service it
C) Plan it → Source it → Make it → Deliver it → Return it
D) Buy it → Make it → Sell it → Move it → Service it
Answer: B) Buy it → Make it → Move it → Sell it → Service it
Rationale: This sequence represents the complete supply chain flow. Procurement
(buy it), Operations (make it), Logistics (move it), Sales (sell it), and After-sales
support (service it) .
Q4. The branch of SCM responsible for obtaining services, supplies, and
equipment in conformance with corporate regulations is:
A) Procurement
B) Operations
C) Logistics
D) Reverse Logistics
Answer: A) Procurement
Rationale: Procurement (Buy it) involves finding suppliers, choosing the best value
supplier, negotiating terms, placing orders, and developing long-term relationships
with suppliers .
Q5. The branch of SCM that makes business processes effective and efficient,
helping create high-quality products using the fewest resources is:
A) Procurement
B) Operations
,C) Logistics
D) Marketing
Answer: B) Operations
Rationale: Operations (Make it) oversees the design, operation, and improvement
of production systems that transform inputs into finished goods and services,
maximizing productivity .
Q6. The branch of SCM responsible for developing transportation itineraries
and finding storage partners is:
A) Procurement
B) Operations
C) Logistics
D) Finance
Answer: C) Logistics
Rationale: Logistics (Move it) coordinates the movement of materials from point of
origin to final destination, including packaging, transportation mode selection,
and distribution .
Q7. The three flows that move through a supply chain are:
A) Products, Services, Information
B) Materials, Money, Information
C) Raw Materials, Finished Goods, Services
D) Upstream, Downstream, Lateral
Answer: B) Materials, Money, Information
Rationale: These three flows—materials (physical goods), money (financial
transactions), and information (data and communication)—move both upstream
and downstream through the supply chain .
, Q8. Reverse logistics refers to:
K. K. K. K.
A) Moving products downstream to customers K. K. K. K.
B) All operations related to the reuse of products and materials flowing upstream
K. K. K. K. K. K. K. K. K. K. K.
C) Returning money to suppliers K. K. K.
D) Cancelling orders before shipment K. K. K.
Answer: B) All operations related to the reuse of products and materials
K. K. K. K. K. K. K. K. K. K. K.
flowing upstream
K. K.
Rationale: Reverse logistics involves flow backward in the supply chain, away from
K. K. K. K. K. K. K. K. K. K. K.
consumers and back toward manufacturers (upstream). This includes returns,
K. K. K. K. K. K. K. K. K.
recycling, and disposal .
K. K. K. K.
Q9. According to the course, the four competitive priorities that organizations
K. K. K. K. K. K. K. K. K. K.
must balance are:
K. K. K.
A) People, Process, Technology, Location K. K. K.
B) Cost, Quality, Speed/Time, Flexibility
K. K. K.
C) Price, Promotion, Place, Product
K. K. K.
D) Suppliers, Manufacturers, Distributors, Retailers K. K. K.
Answer: B) Cost, Quality, Speed/Time, Flexibility
K. K. K. K. K.
Rationale: These four priorities represent the key dimensions on which companies
K. K. K. K. K. K. K. K. K. K.
compete. Different customers value different priorities, and supply chains must be
K. K. K. K. K. K. K. K. K. K. K.
designed accordingly .
K. K. K.
Q10. From the customer's perspective, VALUE is defined as:
K. K. K. K. K. K. K. K.
A) What I make / Cost K. K. K. K.
B) What I get / Price K. K. K. K.
C) Price / Quality K. K.
D) Quality / Time K. K.
Answer: B) What I get / Price
K. K. K. K. K. K.
Modules 1-4
200 Practice Questions with Answers &
Rationales | 2026/2027
MODULE 1: INTRODUCTION TO SUPPLY CHAIN MANAGEMENT
Questions 1-50
Q1. Supply Chain Management is defined as:
A) The process of moving finished goods to customers
B) The effective and efficient integration of suppliers, manufacturers, transporters,
warehouses, retailers, and all parties involved in delivering the final product
C) The purchasing function within an organization
D) Managing only the logistics of a company
Answer: B) The effective and efficient integration of suppliers, manufacturers,
transporters, warehouses, retailers, and all parties involved in delivering the
final product
Rationale: SCM involves the efficient integration of ALL parties associated with
delivering the final product, including material, information, and financial flows
from raw material to end consumer. This is broader than just logistics or
purchasing .
Q2. According to Professor Davila, the three key components of SCM are:
A) Buying, Selling, Shipping
B) Procurement, Operations, Logistics
C) Planning, Sourcing, Delivering
D) Make, Move, Store
Answer: B) Procurement, Operations, Logistics
,Rationale: The three core branches of SCM are Procurement (Buy it), Operations
(Make it), and Logistics (Move it). This is the foundational framework of the
course .
Q3. The SCM flow/strategy sequence is:
A) Make it → Buy it → Move it → Sell it → Service it
B) Buy it → Make it → Move it → Sell it → Service it
C) Plan it → Source it → Make it → Deliver it → Return it
D) Buy it → Make it → Sell it → Move it → Service it
Answer: B) Buy it → Make it → Move it → Sell it → Service it
Rationale: This sequence represents the complete supply chain flow. Procurement
(buy it), Operations (make it), Logistics (move it), Sales (sell it), and After-sales
support (service it) .
Q4. The branch of SCM responsible for obtaining services, supplies, and
equipment in conformance with corporate regulations is:
A) Procurement
B) Operations
C) Logistics
D) Reverse Logistics
Answer: A) Procurement
Rationale: Procurement (Buy it) involves finding suppliers, choosing the best value
supplier, negotiating terms, placing orders, and developing long-term relationships
with suppliers .
Q5. The branch of SCM that makes business processes effective and efficient,
helping create high-quality products using the fewest resources is:
A) Procurement
B) Operations
,C) Logistics
D) Marketing
Answer: B) Operations
Rationale: Operations (Make it) oversees the design, operation, and improvement
of production systems that transform inputs into finished goods and services,
maximizing productivity .
Q6. The branch of SCM responsible for developing transportation itineraries
and finding storage partners is:
A) Procurement
B) Operations
C) Logistics
D) Finance
Answer: C) Logistics
Rationale: Logistics (Move it) coordinates the movement of materials from point of
origin to final destination, including packaging, transportation mode selection,
and distribution .
Q7. The three flows that move through a supply chain are:
A) Products, Services, Information
B) Materials, Money, Information
C) Raw Materials, Finished Goods, Services
D) Upstream, Downstream, Lateral
Answer: B) Materials, Money, Information
Rationale: These three flows—materials (physical goods), money (financial
transactions), and information (data and communication)—move both upstream
and downstream through the supply chain .
, Q8. Reverse logistics refers to:
K. K. K. K.
A) Moving products downstream to customers K. K. K. K.
B) All operations related to the reuse of products and materials flowing upstream
K. K. K. K. K. K. K. K. K. K. K.
C) Returning money to suppliers K. K. K.
D) Cancelling orders before shipment K. K. K.
Answer: B) All operations related to the reuse of products and materials
K. K. K. K. K. K. K. K. K. K. K.
flowing upstream
K. K.
Rationale: Reverse logistics involves flow backward in the supply chain, away from
K. K. K. K. K. K. K. K. K. K. K.
consumers and back toward manufacturers (upstream). This includes returns,
K. K. K. K. K. K. K. K. K.
recycling, and disposal .
K. K. K. K.
Q9. According to the course, the four competitive priorities that organizations
K. K. K. K. K. K. K. K. K. K.
must balance are:
K. K. K.
A) People, Process, Technology, Location K. K. K.
B) Cost, Quality, Speed/Time, Flexibility
K. K. K.
C) Price, Promotion, Place, Product
K. K. K.
D) Suppliers, Manufacturers, Distributors, Retailers K. K. K.
Answer: B) Cost, Quality, Speed/Time, Flexibility
K. K. K. K. K.
Rationale: These four priorities represent the key dimensions on which companies
K. K. K. K. K. K. K. K. K. K.
compete. Different customers value different priorities, and supply chains must be
K. K. K. K. K. K. K. K. K. K. K.
designed accordingly .
K. K. K.
Q10. From the customer's perspective, VALUE is defined as:
K. K. K. K. K. K. K. K.
A) What I make / Cost K. K. K. K.
B) What I get / Price K. K. K. K.
C) Price / Quality K. K.
D) Quality / Time K. K.
Answer: B) What I get / Price
K. K. K. K. K. K.
