SCM 300 EXAM 2 DAVILA
ACTUAL EXAM QUESTIONS
WITH DETAILED VERIFIED
ANSWERS A+ GRADE SCORE
SOLUTION JUST RELEASED!
"Push system characteristics - CORRECT ANSWER=>-Consistently high demand for finished goods
-Desire for finished goods to be immediately and readily available
-Opportunities to take advantage of quantity discounts
-Standardized end-items with little opportunity for customization
-Vulnerability to obsolescence of inventory, high holding costs, and poor demand forecasts that
may result in stock outs or massive overstocks."
"Pull system characteristics - CORRECT ANSWER=>-High raw materials inventory readily available
to produce a specific consumer order
-Customizable end-items with a range of customization options
-Vulnerability to sudden increases in demand, poor forecasts that may result in poorly planned
production systems/facilities"
"Pull System: Cost of miscalculations - CORRECT ANSWER=>Demand high - Does Supply Chain
have available speed/capacity? Demand low - Did you build too much capacity? Sunk Costs."
"Postponement - CORRECT ANSWER=>A system that combines push and pull. Those product
elements that are standard will be produced in advanced, and then final production will be
delayed (postponed) until the consumer places an order that specifies the customized
elements"
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, "Supply chain goals trade-offs - CORRECT ANSWER=>Cost, quality, speed, flexibility"
"Lean manufacturing - CORRECT ANSWER=>A production philosophy that strives to meet
consumer demand and desires but with minimal inventory levels and minimal supply chain
waste"
"Keys to lean manufacturing - CORRECT ANSWER=>Quality Issues:
• High Performance Quality
• Consistent Quality
• Quality at the source - Empowering every employee to be a quality inspector and manager
• Poka-yoke - Mistake-proofing. Lean companies will find ways to completely eliminate certain
types of errors.
Management Issues:
• Continuous Improvement - Being lean means being devoted to the consumer.
• Close supplier ties - Good relationships, trust, and information sharing reduce uncertainty and
thus will result in fewer unwanted supply chain surprises.
• Dedication to the Workforce - Lean systems require finding errors, fixing errors, identifying
opportunities for improvement, and relationship management with supply chain partners."
• Using Automation when Appropriate
Operations Issues:
• Small lot sizes
• Standardized components and work method
• Short Set-up/Change-over - Set-up time is the amount of time it takes to change a system from
producing one product to producing a different item. Keeping short set-up times allows systems
to run "leaner".
o Consider the EOQ formula for manufacturing: EOQ = Sqrt [(2*Demand* Set-up Costs) /
Holding cost]""
"Rocks and water analogy - CORRECT ANSWER=>In supply chain management, we use this story
to explain how companies use inventory to hide the weaknesses of a supply chain. Imagine that
each rock represents a different supply chain weakness: Poor forecasting, high defect rates,
unreliable suppliers, theft, unreliable shippers, etc. In each case more inventory might help hide
these weaknesses"
2|Page
ACTUAL EXAM QUESTIONS
WITH DETAILED VERIFIED
ANSWERS A+ GRADE SCORE
SOLUTION JUST RELEASED!
"Push system characteristics - CORRECT ANSWER=>-Consistently high demand for finished goods
-Desire for finished goods to be immediately and readily available
-Opportunities to take advantage of quantity discounts
-Standardized end-items with little opportunity for customization
-Vulnerability to obsolescence of inventory, high holding costs, and poor demand forecasts that
may result in stock outs or massive overstocks."
"Pull system characteristics - CORRECT ANSWER=>-High raw materials inventory readily available
to produce a specific consumer order
-Customizable end-items with a range of customization options
-Vulnerability to sudden increases in demand, poor forecasts that may result in poorly planned
production systems/facilities"
"Pull System: Cost of miscalculations - CORRECT ANSWER=>Demand high - Does Supply Chain
have available speed/capacity? Demand low - Did you build too much capacity? Sunk Costs."
"Postponement - CORRECT ANSWER=>A system that combines push and pull. Those product
elements that are standard will be produced in advanced, and then final production will be
delayed (postponed) until the consumer places an order that specifies the customized
elements"
1|Page
, "Supply chain goals trade-offs - CORRECT ANSWER=>Cost, quality, speed, flexibility"
"Lean manufacturing - CORRECT ANSWER=>A production philosophy that strives to meet
consumer demand and desires but with minimal inventory levels and minimal supply chain
waste"
"Keys to lean manufacturing - CORRECT ANSWER=>Quality Issues:
• High Performance Quality
• Consistent Quality
• Quality at the source - Empowering every employee to be a quality inspector and manager
• Poka-yoke - Mistake-proofing. Lean companies will find ways to completely eliminate certain
types of errors.
Management Issues:
• Continuous Improvement - Being lean means being devoted to the consumer.
• Close supplier ties - Good relationships, trust, and information sharing reduce uncertainty and
thus will result in fewer unwanted supply chain surprises.
• Dedication to the Workforce - Lean systems require finding errors, fixing errors, identifying
opportunities for improvement, and relationship management with supply chain partners."
• Using Automation when Appropriate
Operations Issues:
• Small lot sizes
• Standardized components and work method
• Short Set-up/Change-over - Set-up time is the amount of time it takes to change a system from
producing one product to producing a different item. Keeping short set-up times allows systems
to run "leaner".
o Consider the EOQ formula for manufacturing: EOQ = Sqrt [(2*Demand* Set-up Costs) /
Holding cost]""
"Rocks and water analogy - CORRECT ANSWER=>In supply chain management, we use this story
to explain how companies use inventory to hide the weaknesses of a supply chain. Imagine that
each rock represents a different supply chain weakness: Poor forecasting, high defect rates,
unreliable suppliers, theft, unreliable shippers, etc. In each case more inventory might help hide
these weaknesses"
2|Page
