NEW QUESTION 1

A manufacturer can simplify the forecasting process by pooling demand forecasts for a product group and then:

• A. averaging total demand and spreading it evenly across all items.
• B. disaggregating demand to the item level based on marketing input.
• C. disaggregating demand to the item level based on historical proportions.
• D. allocating demand to each production site.

Answer: C

NEW QUESTION 2

The transportation manager at a consumer goods manufacturer has decided to begin shipping full truckload rather than less-than-truckload quantities. Which of the following
outcomes is likely following implementation of this decision?

• A. Inventory levels at the manufacturer will decrease.
• B. Lead times as seen by the customer will increase.
• C. Production efficiencies at the manufacturer will increase.
• D. Transportation costs as seen by the customer will increase.

Answer: B

NEW QUESTION 3

What are the steps in the supplier relationship process?

• A. Measure, fulfill, document, model
• B. Source, document, manage
• C. Measure, procure, fulfill, model
• D. Source, procure, fulfill, manage

Answer: D

NEW QUESTION 4

Which of the following measures effectively evaluates overall resources in a distribution warehouse?

• A. Throughput
• B. Cube utilization
• C. Filled pallet positions
• D. Labor efficiency

Answer: A

NEW QUESTION 5

Managing supply chain risks includes which of the following activities?

• A. Developing alternatives to key suppliers
• B. Setting aside funds for disruption-recovery efforts
• C. Charging each supply chain partner a portion of risk cost
• D. Creating extra inventory to cover disruptions in the supply chain

Answer: A

NEW QUESTION 6

The strategy to implement supplier relationship management has been developed. The most appropriate next step is to:

• A. develop criteria for prospective partners.
• B. develop policies for alliances.
• C. select initial partners.
• D. conduct a pilot implementation.

Answer: A

NEW QUESTION 7

The implementation of major enterprise-wide changes to eliminate or significantly reduce waste is related to which of the following concepts?

• A. Kaizen
• B. Kanban
• C. Six Sigma
• D. Lean

Answer: D

NEW QUESTION 8

A company plans to maximize profitability by charging more for its products at retail locations than on its website. Which of the following segmentation strategies would best support this plan?

• A. Group
• B. Channel
• C. Regional
• D. Location

Answer: :B

NEW QUESTION 9

Which of the following statements about the use of bar code labels for product identification in the supply chain is true?

• A. They have been replaced by radio frequency identification tags.
• B. They can be read by devices 1 to 3 meters from the item.
• C. They facilitate the capture of information about the location of items.
• D. Each of the trading partners must apply a unique label.

Answer: C

NEW QUESTION 10

Effective sales and operations planning (S&OP) can contribute most to which of the following objectives?

• A. Increasing product quality
• B. Increasing the number of new customers
• C. Reducing unexpected customer requests
• D. Reducing excess inventory

Answer: D

NEW QUESTION 11

A firm wants to lose customers that don't value the unique products and services the firm offers and to attract and retain customers that want what the firm offers. Engaging in this activity should allow the firm to:

• A. create a more loyal customer base.
• B. improve customer satisfaction rates.
• C. increase market share.
• D. target higher-profit customers.

Answer: A

NEW QUESTION 12

A company most likely would implement a supplier certification program to:

• A. improve the supplier's procurement process.
• B. abide by ISO standards.
• C. validate the supplier's compliance with requirements.
• D. implement point-of-sale (POS) terminals.

Answer: :C

NEW QUESTION 13

After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?

• A. Implement a higher-speed data communications network.
• B. Change procedures so data is communicated more frequently.
• C. Identify the root causes for the delays.
• D. Map and analyze the value stream.

Answer: C

NEW QUESTION 14

Managing risk should be a strategic part of supply chain management because:

• A. the occurrence of unanticipated risks essentially can be eliminated.
• B. not all members of the supply chain consider and respond to the same types of risks.
• C. substantial financial penalties can be assessed if legal requirements are not met.
• D. it helps to reduce the occurrence and consequences of unplanned negative events.

Answer: :D

NEW QUESTION 15

A key assumption of the economic order quantity (EOQ) is that:

• A. future demand cannot be projected.
• B. the rate of demand is continuous and constant.
• C. reorder frequency is fixed.
• D. as the lot size decreases, the setup cost per unit decreases.

Answer: B

NEW QUESTION 16

The globalization of a supply chain typically increases uncertainty and:

• A. production lead time.
• B. local competition.
• C. documentation complexity.
• D. product standardization.

Answer: C

NEW QUESTION 17

Which of the following principles is a core value of the UN Global Compact?

• A. Anti-Corruption
• B. Profitability
• C. Discrimination
• D. Employment

Answer: A

NEW QUESTION 18

Value stream mapping is a useful tool primarily because it:

• A. redefines supply chain relationships.
• B. is completed in 1 or 2 days.
• C. is used to improve efficiency in a specific area.
• D. looks at the entire supply chain rather than an isolated process.

Answer: D

NEW QUESTION 19

Which of the following constituents typically must provide information first to effectively improve supply chain design?

• A. Supplier
• B. Distribution system
• C. Manufacturing
• D. Customer

Answer: D

NEW QUESTION 20

A firm decides to move from a mass production to a mass customization model. This will result in a change in focus from:

• A. special to general purpose facilities.
• B. lower to higher operational cost.
• C. efficiency to effectiveness measures.
• D. high to low flexibility workforce.

Answer: :A

NEW QUESTION 21

Which of the following strategies is most appropriate for managing unknown risks in a global supply chain?

• A. Vertical integration
• B. Technology integration with suppliers
• C. Investing in redundancy
• D. Strengthening supplier relationships

Answer: C

NEW QUESTION 22

Organizations that change from a traditional purchasing perspective to a supply chain perspective most likely will adopt techniques related to:

• A. product pricing.
• B. value stream analysis.
• C. centralized decision making.
• D. sourcing multiple suppliers.

Answer: B

NEW QUESTION 23
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