SCM 300 Exam 1 | ASU | Professor Davila | Modules 1-4 | Actual Questions with Answers & Explanations| Arizona State University with Professor Davila

SCM 300 Exam 1 | ASU | Professor Davila | Modules 1-4 | Actual
Questions with Answers & Explanations| Arizona State
University with Professor Davila


Here is a comprehensive exam bank for SCM 300 Exam 1 at Arizona State
University with Professor Davila. Based on the latest 2026 course materials, this
covers Modules 1 through 4 including the required Harvard cases: Building Deep
Supplier Relationships (Liker & Choi) and Rapid Fire Fulfillment (Ferdows, Lewis,
Machuca).
Module 1: Introduction to Supply Chain Management (Questions 1-25)
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
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.
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
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 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
Procurement (Buy it) involves finding suppliers, choosing the best value supplier,
negotiating terms, placing orders, and developing long-term relationships with
suppliers.
Q4. 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
Operations (Make it) oversees the design, operation, and improvement of
production systems that transform inputs into finished goods and services,
maximizing productivity.
Q5. The branch of SCM responsible for developing transportation itineraries and
finding storage partners is:
 A) Procurement
 B) Operations
 C) Logistics
 D) Finance
Logistics (Move it) coordinates the movement of materials from point of origin
to final destination, including packaging, transportation mode selection, and
distribution.

,Q6. The flow of materials, money, and information through the supply chain is
important because:
 A) Only materials matter for success
 B) If any flow stops, the supply chain cannot function properly
 C) Money is the only critical flow
 D) Information flows are optional
For supply chains to function, materials, money, and information must
continuously flow. If materials stop, nothing gets made; if money stops,
companies can't buy; if information stops, poor decisions are made.
Q7. The primary goals of any corporation, as tied to SCM, are:
 A) Maximize market share and growth
 B) Sustainable long-term profits AND maximize return on investment
(ROI)
 C) Minimize costs and maximize employees
 D) Global expansion and brand recognition
Corporations exist to generate sustainable long-term profits and maximize ROI
for shareholders. Effective SCM directly impacts both profit (revenue - cost) and
ROI (profit / investment).
Q8. The formula for Return on Investment (ROI) is:
 A) Revenue - Cost
 B) Total Profit / Total Invested Money
 C) (Revenue - Cost) / Revenue
 D) Total Assets / Total Liabilities
*ROI measures the return generated on money invested. A high ROI indicates
efficient use of investment capital. For example, 10profiton10profiton1
investment (ROI = 10) is much better than 10profiton10profiton1,000 investment
(ROI = 0.01).*

, Q9. According to the course, the four competitive priorities that organizations
must balance are:
 A) People, Process, Technology, Location
 B) Cost, Quality, Speed/Time, Flexibility
 C) Price, Promotion, Place, Product
 D) Suppliers, Manufacturers, Distributors, Retailers
These four priorities represent the key dimensions on which companies compete.
Different customers value different priorities, and supply chains must be
designed accordingly.
Q10. From the customer's perspective, VALUE is defined as:
 A) What I make / Cost
 B) What I get / Price
 C) Price / Quality
 D) Quality / Time
Value from the customer perspective includes quantity, quality, size (what I get)
relative to money, waiting time, and warranty (price). This is different from
productivity (organization's perspective).
Q11. From the organization's perspective, PRODUCTIVITY is defined as:
 A) What I get / Price
 B) What I make / Cost
 C) Revenue / Employees
 D) Output / Time
Productivity focuses on organizational efficiency—what outputs are produced
relative to inputs (cost of materials, labor, energy, real estate, etc.). This is the
internal measure of efficiency.
Q12. Which of the following is NOT one of the 7 Types of Organizational Waste
discussed in class?