SCM 300 Exam 1 Modules 1–4 Davila 2026/2027 | Questions & Answers | Supply Chain, Inventory, EOQ, Procurement, Operations & Logistics | Arizona State University

This SCM 300 Exam 1 Modules 1–4 (Davila) 2026/2027 study resource provides a comprehensive 24-page collection of exam questions and answers covering the fundamental concepts, terminology, formulas and applications of supply chain management. The document begins with the overall supply chain flow—buy it, make it, move it, sell it and service it—and introduces the competitive priorities of cost, quality, speed/time and flexibility. It distinguishes the customer perspective of value from the organizational perspective of productivity and identifies procurement, operations and logistics as key supply chain components. The first module develops the foundations of Supply Chain Management (SCM) through concepts such as upstream and downstream flows, first- and second-tier suppliers, reverse logistics, supply chain visibility, business models, delivery time and corporate objectives. Students review the relationship between revenue, cost and profit as well as Return on Investment (ROI), with formulas and worked numerical examples included in the notes. The material also identifies seven types of waste and examines supply chain tools involving metrics, information technology, relationship management, financial resources and organizational integration. Business models and channels are illustrated through B2C, B2B, brick-and-mortar, internet-only and click-and-mortar examples. A substantial portion concentrates on inventory management and quantitative inventory concepts. The document defines lead time, lot size, SKUs and inventory before introducing variables used in inventory calculations: annual demand, purchase cost, annual holding cost and ordering cost. Students review the Total Cost (TC) formula, annual holding cost, annual ordering cost and Economic Order Quantity (EOQ). The material distinguishes independent from dependent demand and identifies raw materials, work-in-process, finished goods, MRO, market inventory, safety stock, anticipation inventory and pipeline inventory as major inventory classifications. It also addresses cycle stock, qualitative versus quantitative data, high-versus-low inventory trade-offs and pipeline inventory calculations. The procurement and supplier-management material covers the purchasing process from requisition and supplier selection through order placement, tracking and receipt. Students review make-or-buy decisions, centralized versus decentralized purchasing, Material Requisitions, Requests for Quotation and Purchase Orders. Other important concepts include vertical integration, forward integration, backward integration, Total Cost of Ownership (TCO), supplier bases, supplier scorecards, supplier certification and single versus multiple sourcing. The source also identifies cost, quality, time, flexibility, technological capability, capacity, innovation, location, reliability and service among considerations when selecting suppliers. The operations section examines strategic, operating and design decisions, new-product development and manufacturing-process strategy. It differentiates line-flow, flexible-flow and hybrid strategies according to product variety, demand volume, layout and manufacturing system. Students also review assembly lines, continuous-flow systems, job shops, group technology/cellular layouts, make-to-stock, make-to-order and assemble-to-order systems. A particularly important quantitative area is assembly-line balancing, including cycle time, total task time, theoretical and actual numbers of workstations, precedence diagrams, work elements, effective time and bottlenecks. The final portion provides detailed coverage of transportation, logistics, packaging and distribution. Cargo classifications include bulk, breakbulk and neo-bulk cargo, while transportation concepts include cube, cubing out, weighing out, multimodal and intermodal transportation. Packaging topics cover consumer and industrial packaging, dunnage, reusable packaging and primary, secondary and tertiary packaging. The document additionally reviews truckload and container-load terminology, TEUs, controlled-atmosphere containers, TOFC and COFC rail transportation, ocean carriers and air transportation. Warehousing and distribution concepts conclude the material. The source distinguishes a warehouse, which primarily provides storage, from a distribution center, which facilitates product movement. It also reviews group-technology cells, one-worker/multiple-machine arrangements, fixed-position layouts, cross-docking, drop shipment and the last mile. Together, Modules 1–4 provide broad preparation across procurement, inventory, manufacturing operations, transportation and distribution—the major functional areas introduced in supply chain management. Relevant students: This resource is particularly relevant to SCM 300 students, Supply Chain Management majors, business students studying operations and logistics, students in Professor Davila’s SCM 300 course, and learners preparing for examinations covering inventory management, EOQ, procurement, supplier selection, manufacturing strategy, line balancing, transportation and distribution. The course code SCM 300 is associated with supply chain coursework at Arizona State University, but students should confirm that the uploaded Davila material corresponds to their current section and syllabus. 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