SCM 300 EXAM QUESTIONS AND CORRECT
ANSWERS|ACCURATE ACTUAL EXAM WITH FREQUENTLY
TESTED QUESTIONS AND STUDY GUIDE| GUARANTEED
PASS|ALREADY GRADED A+|LATEST UPDATE 2024/2025.
Supply Chain Management - CORRECT 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 market
Procurement - CORRECT ANSWER The branch or an organization responsible for acquiring
materials, equipments, products, and services.
Operations - CORRECT ANSWER The branch of the supply chain responsible for making
business processes effective and efficient. In essence, operations seeks to help the organization
create high quality products and/ or services using the fewest resources possible.
Logistics - CORRECT 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.
Reverse Logistics - CORRECT ANSWER The management of products and packaging the flow
backward in the supple chain, away from the consumer and back in the direction of
manufacturers.
Global supply chain management - CORRECT ANSWER When suppliers, manufacturers,
transportation companies, warehouse and distribution centers, retailers, and other supply chain
partners span across multiple countries and/or continents, those are considered global supply
chains. Effective and efficient management of supply chain partners across multiple countries
can offer both competitive advantages as well as complicating circumstances.
Supply Chain Illustration - CORRECT ANSWER S2 ---> S1 ---> Manufacturer ---> Distributor
---> Retailer
1st tier suppliers - CORRECT ANSWER A company's direct supplier. A firm that directly
provides goods and/or services to a company.
2nd tier suppliers - CORRECT ANSWER A firm that provides goods and/or services to a
company's first-tier supplier
Downstream Supply Chain - CORRECT ANSWER In a supply chain the direction in which
products flow towards and end consumer.
Upstream Supply Chain - CORRECT ANSWER In a supply chain the direction from customers
to suppliers
,SCM Flows - CORRECT ANSWER In order for supply chains to function and developed, three
things must continuously flow: Materials, Money, and Information
- Money: If money stops flowing, the supply chain breaks down. When suppliers aren't getting
paid they stop sending materials.
Business Model - CORRECT ANSWER A company's plan for how it will purchase items,
transform them, deliver them, and sell them in an effort to produce a profit.
- Amazon vs traditional bookstore
Inventory Visibility (Supply chain visibility) - CORRECT ANSWER The ability to see what is
happening with inventory up and down a supply chain.
Profit - CORRECT ANSWER Profit = Revenue - Cost
- Supply chains play a role in both revenue and cost. Supply chain managers play a large role in
controlling many types of cost (materials, labor, energy, transportation, packaging, storage,
defects, insurance...)that ensure that manufacturing and delivery of the very best products and
services.
- Poorly manufactured products that are delivered late and/or damaged will not make customers
want to buy a company's product at premium prices.
ROI - CORRECT ANSWER Return on Investment. An economic measure that helps evaluate
the return of an investment.
- ROI = total profit / total invest money
Competitive Priorities - CORRECT ANSWER - Cost: materials, energy, wages, transportation,
rent...
- Quality: Design, reliability, consistency, materials and fabrics...
- Speed: Delivery, on-time, innovation time...
- Flexibility: customization, size of order, design...
- Fast food vs sit down restaurant
Core Competencies - CORRECT ANSWER The primary advantage a company has over its
competitors. Typically, a core competency would be difficult, if not impossible, to replicate.
Value - CORRECT ANSWER Value is the ratio of "output purchased" divided by "inputs used
to purchase" the product or service. Value can be increased by giving the customer more for the
same price, or b giving them the same amount at a lower price.
- Value can be simplified as: what did i buy? / what did it cost me?
,Productivity - CORRECT ANSWER The ratio of outputs of inputs. From a manufacturing
perspective companies seek to maximize the amount of outputs that can be produced and
delivered to market while minimizing the required inputs.
- Ex: 300 backpacks at $25. Energy, labor, material costs = $3000
(300 x $25)/ $3000 = 2.50 ---> productivity
Primary supply chain goals - CORRECT ANSWER - Effectiveness: Are we getting the job
done? Does the product or service create and do what it is support to do? Does the car meet all of
the customer's expectations? Did the massage make the customer feel better both physically and
mentally?
- Efficient: Are we working too hard? Spending too much money? Was the effective product or
service created using the minimal resources? Think about material cost, wages, time, buildings,
delivery trucks, packaging...
- Adaptable: Can we deal with change? Are we flexible?
Seven types of Waste - CORRECT ANSWER - Defects
- Overproduction
- Transportation: moving products does not improve them, in fact it increase the possibility of
theft, damage, and loss
- Motion: If employees move too much in a supply chain they could get tired, injured, they may
be wasting time
- Waiting: Work-in-progress waiting to be finished was made too early
- Inventory: Items on the shelf are not providing an immediate return and they could get lost,
broken, or stolen
-Over-processing: Doing work that is unnecessary or undesired is a waste or time and resources,
and may actually make a product unsellable
Keys to being a successful Supply Chain Manager - CORRECT ANSWER - Satisfy the needs of
the customer
- Satisfy the needs of the company
- Be prepared for the future
Supply Chain Strategy - CORRECT ANSWER - Understanding the product/service and the
market's desires
- Developing a business model
- Organizing the right group of supply chain partners
, Supply Chain Tools - CORRECT ANSWER - Supply chain metrics: What defines a successful
supply chain for your company?
- Information technology tools: Knowing what is happening in a global supply chain at any given
movement requires information technology
- Relationship management skills: A supply chain is a team of companies working together to
satisfy an end-consumer
- Financial resources: Motivating employees and suppliers, investing in technology to help
companies is vital to developing focused and healthy supply chains
- Organizational integration: Customers are identified, products are designed, financial plans
developed, products are advertised...
Inventory - CORRECT ANSWER The items that are owned by a company for the purpose of
present or future sale or for use in day-to-day operations.
- Items available for sale on the store shelves, items in the backroom, items in distribution
center/warehouse, and any items the company owns can be included as part of its inventory
(desks computers, toilet paper...)
Lead Time - CORRECT ANSWER The period of time between when an order is placed and
when the order is received
Lot Size - CORRECT ANSWER An accepted order size. (Sometimes also refers to a possible
order size increment. Ex: Lot size of 100 units. Ordering 100, 200, 300, etc would be possible
order sizes)
Inventory and Risk - CORRECT ANSWER - Company risks: Theft or damage to inventory, late
shipments from supplier, employee sickness, employee strike, machine malfunctions, harsh
weather
- Supplier risks: Employee sickness or strikes, sudden increases in demand for your company's
supplies, the risks posed by their supplier
- Customer risks: Sudden increase in demand, damage to customer's inventory
Demand Forecasting - CORRECT ANSWER A predictive analysis and/or estimation of
consumer demand in a future period
Stock Keeping Unit (SKU) - CORRECT ANSWER A specific product or service's identification
code used to track inventory or catalog sales
Independent Demand Item - CORRECT ANSWER An item for which demand levels is not
directly impacted by the demand of another related item
