SCM - 300 Study Guide – Questions
with Correct Answers
3 Branches of Supply Chain and what they are responsible for - correct answer Procurement -
(Purchasing)
Operation - (planning)
Logistics - (delivery)
Reverse Logistics - correct answer management of products that flow backwards in the supply
chain. Away from the consumer and back in the direction of the manufacturers
Supplier Tiers - correct answer
3 Supply Chain Flows - correct answer Money, Materials, Information
4 SCM Competitive Priorities - correct answer Speed (Going Fast)
Cost (Saving money)
Flexibility (Customization)
Quality (Right product, Right place, Right time)
Inventory - correct answer items that are owned by a company for present or future sales or for use
in day-to-day operations
, Lead Time - correct answer Time elapsed between the customer placing the order and the order
being received by the customer
Inventory Classifications - correct answer Raw Materials/Components, Work in process, finished
goods
Spare and/or replacement parts
Capital equipment & MRO (Maintenance, and repair & operations)
Lot Size - correct answer Typically refers to the order size
EOQ - correct answer the lot size that minimizes total annual inventory holding and ordering costs,
making it the optimal lot size
= SQRT (2DS/H)
if a manager is looking to minimize inventory costs and maximize total annual savings then he
would calculate optimal lot size through this formula.
EOQ (Economic Order Quantity) Limitations - correct answer EOQ=optimal order size
The exact lot size may not be possible/allowed
Time between orders (TBO) may NOT be feasible/allowed
The size of EOQ may be too large - not enough storage space
Quantity discounts aren't considered - if offered, one would have to calculate an EOQ for every price
level
with Correct Answers
3 Branches of Supply Chain and what they are responsible for - correct answer Procurement -
(Purchasing)
Operation - (planning)
Logistics - (delivery)
Reverse Logistics - correct answer management of products that flow backwards in the supply
chain. Away from the consumer and back in the direction of the manufacturers
Supplier Tiers - correct answer
3 Supply Chain Flows - correct answer Money, Materials, Information
4 SCM Competitive Priorities - correct answer Speed (Going Fast)
Cost (Saving money)
Flexibility (Customization)
Quality (Right product, Right place, Right time)
Inventory - correct answer items that are owned by a company for present or future sales or for use
in day-to-day operations
, Lead Time - correct answer Time elapsed between the customer placing the order and the order
being received by the customer
Inventory Classifications - correct answer Raw Materials/Components, Work in process, finished
goods
Spare and/or replacement parts
Capital equipment & MRO (Maintenance, and repair & operations)
Lot Size - correct answer Typically refers to the order size
EOQ - correct answer the lot size that minimizes total annual inventory holding and ordering costs,
making it the optimal lot size
= SQRT (2DS/H)
if a manager is looking to minimize inventory costs and maximize total annual savings then he
would calculate optimal lot size through this formula.
EOQ (Economic Order Quantity) Limitations - correct answer EOQ=optimal order size
The exact lot size may not be possible/allowed
Time between orders (TBO) may NOT be feasible/allowed
The size of EOQ may be too large - not enough storage space
Quantity discounts aren't considered - if offered, one would have to calculate an EOQ for every price
level
