SCM 300 Exam 3 ASU Davila 2026–2027 Complete Practice Questions with
Answers Exam Review Guide for Arizona State University Students |
INSTANT PDF DOWNLOAD
Overview
The SCM 300 Exam 3 (Davila) practice set is a comprehensive preparation resource designed for students at
Arizona State University. It focuses on high-yield supply chain concepts commonly tested in the 2026–2027 exam
cycle.
This guide includes 100 multiple-choice questions with answers and explanations, reflecting real exam difficulty
and application-based scenarios rather than memorization.
Coverage Summary Forecasting
Moving average, exponential smoothing
Forecast error (MAD, MAPE, MSE)
Trend and seasonal demand patterns
Inventory Management
EOQ model and cost trade-offs
Safety stock and reorder point
Lead time and demand variability
Supply Chain Systems
Push vs pull systems
Just-in-time (JIT)
Bullwhip effect causes and solutions
Lean & Operations
Waste elimination (Lean principles)
Bottlenecks and throughput
Cycle time vs capacity
Strategy & Quality
Six Sigma and process improvement
Global supply chain risks
Supplier coordination and visibility
,1.
In a supply chain, what is the primary purpose of demand forecasting models?
A. Increase production speed
B. Reduce uncertainty in planning
C. Eliminate all inventory costs
D. Maximize supplier profit
Answer: B. Reduce uncertainty in planning
Explanation: Forecasting helps firms anticipate demand to improve planning
accuracy.
2.
Which inventory system triggers replenishment when stock falls below a set
level?
A. EOQ system
B. Reorder point system
C. Push system
D. Batch system
Answer: B. Reorder point system
Explanation: Orders are placed when inventory hits a predefined threshold.
3.
What is the main disadvantage of using a simple moving average forecasting
method?
A. Requires complex computation
B. Reacts slowly to demand changes
C. Always overestimates demand
D. Cannot use historical data
Answer: B. Reacts slowly to demand changes
Explanation: It gives equal weight to past data, reducing responsiveness.
4.
,In EOQ models, which two cost components are primarily balanced against each
other?
A. Production and labor costs
B. Holding and ordering costs
C. Shipping and tax costs
D. Fixed and variable costs
Answer: B. Holding and ordering costs
Explanation: EOQ minimizes total inventory-related costs.
5.
What typically causes the bullwhip effect in supply chain systems across multiple
tiers?
A. Stable customer demand
B. Information sharing
C. Demand distortion and delays
D. Excess supplier capacity
Answer: C. Demand distortion and delays
Explanation: Small demand changes amplify upstream.
6.
Which forecasting method places more emphasis on recent demand data than
older data?
A. Naive forecasting
B. Moving average
C. Exponential smoothing
D. Linear regression
Answer: C. Exponential smoothing
Explanation: Recent data is weighted more heavily.
7.
, What is the main objective of lean supply chain management systems overall?
A. Increase inventory levels
B. Eliminate waste and inefficiency
C. Maximize safety stock
D. Increase forecasting error
Answer: B. Eliminate waste and inefficiency
Explanation: Lean focuses on removing non-value-added activities.
8.
Which inventory concept refers to stock that is currently being transported
between locations?
A. Cycle stock
B. Safety stock
C. Pipeline inventory
D. Excess stock
Answer: C. Pipeline inventory
Explanation: It is inventory in transit.
9.
What does a high Mean Absolute Deviation (MAD) value indicate in forecasting
performance?
A. High accuracy
B. Low variability
C. Poor forecasting accuracy
D. Perfect prediction
Answer: C. Poor forecasting accuracy
Explanation: MAD measures average absolute errors.
10.
Which supply chain strategy focuses on producing goods only in response to
actual demand?
Answers Exam Review Guide for Arizona State University Students |
INSTANT PDF DOWNLOAD
Overview
The SCM 300 Exam 3 (Davila) practice set is a comprehensive preparation resource designed for students at
Arizona State University. It focuses on high-yield supply chain concepts commonly tested in the 2026–2027 exam
cycle.
This guide includes 100 multiple-choice questions with answers and explanations, reflecting real exam difficulty
and application-based scenarios rather than memorization.
Coverage Summary Forecasting
Moving average, exponential smoothing
Forecast error (MAD, MAPE, MSE)
Trend and seasonal demand patterns
Inventory Management
EOQ model and cost trade-offs
Safety stock and reorder point
Lead time and demand variability
Supply Chain Systems
Push vs pull systems
Just-in-time (JIT)
Bullwhip effect causes and solutions
Lean & Operations
Waste elimination (Lean principles)
Bottlenecks and throughput
Cycle time vs capacity
Strategy & Quality
Six Sigma and process improvement
Global supply chain risks
Supplier coordination and visibility
,1.
In a supply chain, what is the primary purpose of demand forecasting models?
A. Increase production speed
B. Reduce uncertainty in planning
C. Eliminate all inventory costs
D. Maximize supplier profit
Answer: B. Reduce uncertainty in planning
Explanation: Forecasting helps firms anticipate demand to improve planning
accuracy.
2.
Which inventory system triggers replenishment when stock falls below a set
level?
A. EOQ system
B. Reorder point system
C. Push system
D. Batch system
Answer: B. Reorder point system
Explanation: Orders are placed when inventory hits a predefined threshold.
3.
What is the main disadvantage of using a simple moving average forecasting
method?
A. Requires complex computation
B. Reacts slowly to demand changes
C. Always overestimates demand
D. Cannot use historical data
Answer: B. Reacts slowly to demand changes
Explanation: It gives equal weight to past data, reducing responsiveness.
4.
,In EOQ models, which two cost components are primarily balanced against each
other?
A. Production and labor costs
B. Holding and ordering costs
C. Shipping and tax costs
D. Fixed and variable costs
Answer: B. Holding and ordering costs
Explanation: EOQ minimizes total inventory-related costs.
5.
What typically causes the bullwhip effect in supply chain systems across multiple
tiers?
A. Stable customer demand
B. Information sharing
C. Demand distortion and delays
D. Excess supplier capacity
Answer: C. Demand distortion and delays
Explanation: Small demand changes amplify upstream.
6.
Which forecasting method places more emphasis on recent demand data than
older data?
A. Naive forecasting
B. Moving average
C. Exponential smoothing
D. Linear regression
Answer: C. Exponential smoothing
Explanation: Recent data is weighted more heavily.
7.
, What is the main objective of lean supply chain management systems overall?
A. Increase inventory levels
B. Eliminate waste and inefficiency
C. Maximize safety stock
D. Increase forecasting error
Answer: B. Eliminate waste and inefficiency
Explanation: Lean focuses on removing non-value-added activities.
8.
Which inventory concept refers to stock that is currently being transported
between locations?
A. Cycle stock
B. Safety stock
C. Pipeline inventory
D. Excess stock
Answer: C. Pipeline inventory
Explanation: It is inventory in transit.
9.
What does a high Mean Absolute Deviation (MAD) value indicate in forecasting
performance?
A. High accuracy
B. Low variability
C. Poor forecasting accuracy
D. Perfect prediction
Answer: C. Poor forecasting accuracy
Explanation: MAD measures average absolute errors.
10.
Which supply chain strategy focuses on producing goods only in response to
actual demand?
