NEW QUESTION 1

Which of the following tools is most important in developing strategic sourcing?

• A. Price break analysis
• B. Network analysis
• C. Blanket purchase order
• D. Spend analysis

Answer: D

NEW QUESTION 2

A company is formally adhering to the principles of the UN Global Compact. After a review of their supply chain, they have found that a key supplier is in violation of the compact. The
best action for the company to do first is:

• A. do nothin
• B. The company is not responsible for compliance of suppliers.
• C. replace the supplier as soon as possible with a compliant supplier.
• D. notify the supplier of non-compliance.
• E. require the supplier to become compliant.

Answer: C

NEW QUESTION 3

Which of the following results can be expected from sharing a common understanding of demand and consumption patterns among supply chain participants?

• A. Improved transparency of collaboration relationships
• B. Increased performance in balanced scorecard
• C. Reduced inventory levels for key items
• D. Better synchronization of planning and operations

Answer: D

NEW QUESTION 4

A company that is focused on customer relationship management is most likely to take which of the following actions for customers who have been profitable over time?

• A. Reduce the cost of serving them.
• B. Target them for higher margin services.
• C. Target them for greater attention.
• D. Charge them for administrative services used.

Answer: C

NEW QUESTION 5

The most appropriate frequency for the sales and operations planning process typically is:

• A. weekly.
• B. monthly.
• C. quarterly.
• D. annually.

Answer: B

NEW QUESTION 6

A remanufacturer of equipment is most likely to have what type of supply chain?

• A. Modular logistics
• B. Reverse logistics
• C. Mixed model
• D. Lateral

Answer: B

NEW QUESTION 7

The production scheduler for a bottleneck resource should:

• A. schedule additional preventive maintenance for the resource.
• B. ensure a constant queue of work waiting to be processed.
• C. increase production lot sizes to increase utilization of resources.
• D. implement pull signals for production of the bottleneck resource.

Answer: B

NEW QUESTION 8

Which of the following statements indicates an attribute of international commercial terms (Incoterms)?

• A. They are required contract terms for international trade.
• B. Each term implies the responsibilities of the buyer and seller.
• C. Discounts and surcharges are identified by the terms.
• D. The terms are reviewed annually by the International Chamber of Commerce.

Answer: B

NEW QUESTION 9

A main benefit of using customer relationship management (CRM) is:

• A. maximization of on-time delivery.
• B. minimization of product returns.
• C. identification of customers with high lifetime value.
• D. finding new markets for existing products and services.

Answer: C

NEW QUESTION 10

Which of the following costs is an example of ordering cost?

• A. Inspection labor
• B. Obsolesence
• C. Cost of capital invested
• D. Insurance

Answer: A

NEW QUESTION 11

A company produces and distributes a family of soft drinks in a single country. It has developed and will introduce a new family of soft drinks for weight- and health-conscious individuals. There currently are no competitors with nationwide distribution for this category of soft drinks. Which of the following supply chain strategies would be most appropriate for the two product families?

• A. Produce both product families to forecast and push through the distribution system.
• B. Produce both product families only after receipt of a distributor order.
• C. Produce the current product family to forecast and the new product family to order.
• D. Produce the current product family to order and the new product family to forecast.

Answer: C

NEW QUESTION 12

A company recently implemented a new supplier rating system. Data was collected from the enterprise resources planning system about each vendor's rating for cost, quality, and delivery over 12 months. A cutoff point was established for poor performers. The responsible purchasing agent then scheduled meetings with each supplier. Which of the following actions is most appropriate to take with suppliers whose ratings were below the cutoff point?

• A. Discuss ways to raise the ratings for the next review period.
• B. Tell the suppliers they are on probation for 3 months.
• C. Immediately cancel outstanding contracts with those suppliers.
• D. Ask the suppliers to explain the poor performance.

Answer: A

NEW QUESTION 13

Qualitative forecasting methods are most appropriate for projecting demand for:

• A. commodity products.
• B. families of products.
• C. breakthrough products.
• D. raw materials.

Answer: C

NEW QUESTION 14

Purchased component standardization generates savings primarily by reducing:

• A. assembly costs through economies of scale.
• B. engineering costs due to lower testing requirements.
• C. inventory control costs due to smaller shelf space requirements.
• D. inventory transportation costs by using economical modes.

Answer: A

NEW QUESTION 15

A firm has captured the following information for a product family:

The cash-to-cash cycle time is how many days?

• A. 41
• B. 44
• C. 62
• D. 74

Answer: C

NEW QUESTION 16

Which of the following strategies can be used to help manage global risks?

• A. Direct shipment
• B. Cross-docking
• C. Mass customization
• D. Flexibility

Answer: D

NEW QUESTION 17

The make-to-stock model is an effective inventory strategy when the product:

• A. has a long manufacturing lead time.
• B. has a limited set of features.
• C. is designed by the customer.
• D. is frequently out of stock.

Answer: B

NEW QUESTION 18

Which of the following ISO standards is used to assist organizations with sustainable development?

• A. ISO 31000
• B. ISO 14001
• C. ISO 26000
• D. ISO 9001

Answer: C

NEW QUESTION 19

Some firms that have licensed other companies to manufacture their products run the risk of:

• A. losing market share.
• B. the other companies becoming competitors.
• C. the products becoming a commodity.
• D. the products being overpriced.

Answer: B

NEW QUESTION 20

A return material authorization (RMA) policy is used in reverse logistics to:

• A. physically transport returned items by using an efficient transportation mode.
• B. minimize the number of returned items by involving product design and demand forecasting.
• C. reduce the cost of returned items by refusing to accept items that should not be returned.
• D. reclaim substantial value from returned items by recycling.

Answer: C

NEW QUESTION 21

The process used to determine the impact of promotions, price discounts, and rebates on demand forecasts commonly is referred to as demand:

• A. planning.
• B. forecasting.
• C. aggregating.
• D. shaping.

Answer: D

NEW QUESTION 22

The process of gathering data about what customers need and ensuring that desired features are included in the design and initial planning phase of a new product or service is known as:

• A. a quick response program.
• B. quality function deployment.
• C. total quality management.
• D. early supplier involvement.

Answer: B

NEW QUESTION 23
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