SCM 300 Exam 1 Modules 1-4 (Davila) - 200
Questions & Answers with Rationale
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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
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. It is not limited to just purchasing, logistics, or
moving finished goods .
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
,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. "Sell it" and "Service it" are also part of the SCM flow but are not
considered the three key components .
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
Answer: A
Rationale: 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
Answer: B
Rationale: 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
Answer: C
Rationale: Logistics (Move it) coordinates the movement of materials from point of
origin to final destination, including packaging, transportation mode selection,
and distribution .
Q6. Which of the following represents the SCM flow/strategy correctly?
A) Make it → Buy it → Move it → Sell it → Service it
B) Buy it → Make it → Move it → Sell it → Service it
C) Move it → Make it → Buy it → Sell it → Service it
D) Buy it → Move it → Make it → Sell it → Service it
Answer: B
Rationale: The correct SCM flow is: Buy it → Make it → Move it → Sell it →
Service it. This represents the sequential flow of materials and activities through
the supply chain .
Q7. Which of the following is NOT one of the four competitive priorities
discussed in class?
A) Cost
B) Quality
C) Speed/Time
D) Profitability
Answer: D
Rationale: The four competitive priorities are: 1) Cost, 2) Quality, 3) Speed/Time,
and 4) Flexibility. Profitability is a goal of the corporation, not a competitive
priority .
, Q8. 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 K.
Rationale: Value from the customer perspective includes quantity, quality, size
K. K. K. K. K. K. K. K. K.
(what I get) relative to money, waiting time, and warranty (price). This is different
K. K. K. K. K. K. K. K. K. K. K. K. K. K.
from productivity (organization's perspective) .
K. K. K. K. K.
Q9. From the organization's perspective, PRODUCTIVITY is defined as:
K. K. K. K. K. K. K. K.
A) What I get / Price K. K. K. K.
B) What I make / Cost K. K. K. K.
C) Revenue / Employees K. K.
D) Output / Time K. K.
Answer: B K.
Rationale: Productivity focuses on organizational efficiency—what outputs are
K. K. K. K. K. K. K.
produced relative to inputs (cost of materials, labor, energy, real estate, etc.). This is
K. K. K. K. K. K. K. K. K. K. K. K. K. K.
the internal measure of efficiency .
K. K. K. K. K. K.
Q10. Which of the following is NOT one of the 7 Types of Organizational
K. K. K. K. K. K. K. K. K. K. K. K. K.
Waste discussed in class?
K. K. K. K.
A) Defects
B) Overproduction
C) Employee Breaks K.
D) Transportation
Answer: C K.
Questions & Answers with Rationale
Pass on Your First Try! | 2026/2027 Updated |
Already Graded A+
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
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. It is not limited to just purchasing, logistics, or
moving finished goods .
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
,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. "Sell it" and "Service it" are also part of the SCM flow but are not
considered the three key components .
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
Answer: A
Rationale: 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
Answer: B
Rationale: 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
Answer: C
Rationale: Logistics (Move it) coordinates the movement of materials from point of
origin to final destination, including packaging, transportation mode selection,
and distribution .
Q6. Which of the following represents the SCM flow/strategy correctly?
A) Make it → Buy it → Move it → Sell it → Service it
B) Buy it → Make it → Move it → Sell it → Service it
C) Move it → Make it → Buy it → Sell it → Service it
D) Buy it → Move it → Make it → Sell it → Service it
Answer: B
Rationale: The correct SCM flow is: Buy it → Make it → Move it → Sell it →
Service it. This represents the sequential flow of materials and activities through
the supply chain .
Q7. Which of the following is NOT one of the four competitive priorities
discussed in class?
A) Cost
B) Quality
C) Speed/Time
D) Profitability
Answer: D
Rationale: The four competitive priorities are: 1) Cost, 2) Quality, 3) Speed/Time,
and 4) Flexibility. Profitability is a goal of the corporation, not a competitive
priority .
, Q8. 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 K.
Rationale: Value from the customer perspective includes quantity, quality, size
K. K. K. K. K. K. K. K. K.
(what I get) relative to money, waiting time, and warranty (price). This is different
K. K. K. K. K. K. K. K. K. K. K. K. K. K.
from productivity (organization's perspective) .
K. K. K. K. K.
Q9. From the organization's perspective, PRODUCTIVITY is defined as:
K. K. K. K. K. K. K. K.
A) What I get / Price K. K. K. K.
B) What I make / Cost K. K. K. K.
C) Revenue / Employees K. K.
D) Output / Time K. K.
Answer: B K.
Rationale: Productivity focuses on organizational efficiency—what outputs are
K. K. K. K. K. K. K.
produced relative to inputs (cost of materials, labor, energy, real estate, etc.). This is
K. K. K. K. K. K. K. K. K. K. K. K. K. K.
the internal measure of efficiency .
K. K. K. K. K. K.
Q10. Which of the following is NOT one of the 7 Types of Organizational
K. K. K. K. K. K. K. K. K. K. K. K. K.
Waste discussed in class?
K. K. K. K.
A) Defects
B) Overproduction
C) Employee Breaks K.
D) Transportation
Answer: C K.
