ASU SCM 300- Davila ASU Study Guide
Exam with Detailed Answers 2026-2027
Update.
Cost - Answer Materials, Energy, Wages, Transportation, Rent
Quality - Answer Design, Reliability, Consistency, Materials, Fabrics
Speed - Answer Delivery, On-Time, Innovation Time
Flexibility - Answer Customization, Size of Order, Design
Competitive Priorities - Answer Cost, Quality, Speed, Flexibility
Productivity: - Answer The ratio of outputs [What did I make?] to inputs [What was the cost?].
(Organizational Perspective)
Value: - Answer The ratio of "output purchased" divided by "inputs used to purchased" the
product or service. [What do I get?/What is the price?] (Customer Perspective)
SCM: - Answer The effective and efficient integration of the suppliers, manufacturers,
transportation organizations as well as the other parties responsible for collectively bringing
products and services to the market.
Operations Management: - Answer The branch of the supply chain responsible for making
business processes effective and efficient. Operations seeks to help the organization create high
quality products and/or services using the fewest resources possible.
Logistics: - Answer The branch of the supply chain responsible for developing the
transportation itinerary and finding the appropriate transportation and storage partners to
successfully navigate the flow of materials from the point of origin to the final destination.
Procurement: - Answer The branch of an organization responsible for acquiring materials,
equipment, products, and services. This would entail finding suppliers, choosing the supplier
that offers the best value, negotiating the terms of the purchase, placing orders, and developing
long-term relationships with suppliers so that consistent and improved quality can be expected
from their supplier.
, Upstream: - Answer In a supply chain, the direction that points toward the suppliers. (i.e.
ensuring empty boxes at the retail level are returned to the distributor for reuse, developing
relationships with a company's first-tier suppliers in order to better communicate the needs of
the present and the future.
Downstream: - Answer In a supply chain, the direction that points toward the end consumer.
Downstream activities might include - delivering goods from a manufacturer to a distributor,
suppliers (S1) working to get parts prepared in time for manufacturers, distributors developing
relationships with retailers so they can better understand the retailer's supply chain needs.
Reverse Logistics: - Answer The management of products that flow backward in the supply
chain, away from the consumer and back in the direction of manufacturers. (The management
of materials moving upstream in the supply chain.)
1st Tier Suppliers: - Answer A company's direct suppliers. A firm that directly provides goods
and/or services to a company.
2nd Tier Suppliers: - Answer A firm that provides goods and/or services to a company's first-
tier suppliers.
Safety Stock - Answer Protects against uncertainty in demand, lead time, supply; not intended
to be used. Cushion, Insurance.
Pipeline Inventory - Answer Inventory in transit, between two points. Those two points
establish the pipeline. Orders that have been placed but not yet received nor paid for by
customer. Inventory "on its way" to the customer.
Vertical Integration - Answer The act of a company taking on additional supply chain
responsibilities that were formerly done by outside parties
Forward Integration - Answer Taking over supply chain responsibilities formerly performed by
downstream supply chain partners
Backward Integration - Answer Taking over supply chain responsibilities formerly performed
by upstream supply chain partners
Benefits of High and Low Inventory Levels/Purchases. - Answer High Inventory (Opposite for
Low Inventory)
Pros -
BUYING: Quantity Discounts, STOCKING OUT: Poor Customer Service level,
Exam with Detailed Answers 2026-2027
Update.
Cost - Answer Materials, Energy, Wages, Transportation, Rent
Quality - Answer Design, Reliability, Consistency, Materials, Fabrics
Speed - Answer Delivery, On-Time, Innovation Time
Flexibility - Answer Customization, Size of Order, Design
Competitive Priorities - Answer Cost, Quality, Speed, Flexibility
Productivity: - Answer The ratio of outputs [What did I make?] to inputs [What was the cost?].
(Organizational Perspective)
Value: - Answer The ratio of "output purchased" divided by "inputs used to purchased" the
product or service. [What do I get?/What is the price?] (Customer Perspective)
SCM: - Answer The effective and efficient integration of the suppliers, manufacturers,
transportation organizations as well as the other parties responsible for collectively bringing
products and services to the market.
Operations Management: - Answer The branch of the supply chain responsible for making
business processes effective and efficient. Operations seeks to help the organization create high
quality products and/or services using the fewest resources possible.
Logistics: - Answer The branch of the supply chain responsible for developing the
transportation itinerary and finding the appropriate transportation and storage partners to
successfully navigate the flow of materials from the point of origin to the final destination.
Procurement: - Answer The branch of an organization responsible for acquiring materials,
equipment, products, and services. This would entail finding suppliers, choosing the supplier
that offers the best value, negotiating the terms of the purchase, placing orders, and developing
long-term relationships with suppliers so that consistent and improved quality can be expected
from their supplier.
, Upstream: - Answer In a supply chain, the direction that points toward the suppliers. (i.e.
ensuring empty boxes at the retail level are returned to the distributor for reuse, developing
relationships with a company's first-tier suppliers in order to better communicate the needs of
the present and the future.
Downstream: - Answer In a supply chain, the direction that points toward the end consumer.
Downstream activities might include - delivering goods from a manufacturer to a distributor,
suppliers (S1) working to get parts prepared in time for manufacturers, distributors developing
relationships with retailers so they can better understand the retailer's supply chain needs.
Reverse Logistics: - Answer The management of products that flow backward in the supply
chain, away from the consumer and back in the direction of manufacturers. (The management
of materials moving upstream in the supply chain.)
1st Tier Suppliers: - Answer A company's direct suppliers. A firm that directly provides goods
and/or services to a company.
2nd Tier Suppliers: - Answer A firm that provides goods and/or services to a company's first-
tier suppliers.
Safety Stock - Answer Protects against uncertainty in demand, lead time, supply; not intended
to be used. Cushion, Insurance.
Pipeline Inventory - Answer Inventory in transit, between two points. Those two points
establish the pipeline. Orders that have been placed but not yet received nor paid for by
customer. Inventory "on its way" to the customer.
Vertical Integration - Answer The act of a company taking on additional supply chain
responsibilities that were formerly done by outside parties
Forward Integration - Answer Taking over supply chain responsibilities formerly performed by
downstream supply chain partners
Backward Integration - Answer Taking over supply chain responsibilities formerly performed
by upstream supply chain partners
Benefits of High and Low Inventory Levels/Purchases. - Answer High Inventory (Opposite for
Low Inventory)
Pros -
BUYING: Quantity Discounts, STOCKING OUT: Poor Customer Service level,
