NEW QUESTION 1

A company’s decision to charge different prices for the same service sold in different market segments is most likely based on which of the following metrics?

• A. Internal rate of return (IRR)
• B. Lifetime customer value (LCV)
• C. Net present value (NPV)
• D. Return on investment (ROI)

Answer: B

NEW QUESTION 2

The best way to manage a business relationship is to measure performance to:

• A. cost of ownership metrics.
• B. quality targets.
• C. on-time delivery.
• D. agreed-upon metrics.

Answer: D

NEW QUESTION 3

Which of the following export documents is used as the basis for the valuation of goods for insurance purposes and for assessment of duties?

• A. Export license
• B. Export declaration
• C. Bill of lading
• D. Commercial invoice

Answer: D

NEW QUESTION 4

A company is aggressively pursuing improvements in the financial performance of its supply chain. The company should first focus its efforts on which of the following metrics?

• A. Process takt time
• B. Cycle count accuracy
• C. Number of inventory turns
• D. Number of first-tier suppliers

Answer: C

NEW QUESTION 5

The most appropriate strategy for a firm that makes and sells a wide range of items typically would be to domestically source items that have which of the following characteristics?

• A. Short product life cycle and many variations
• B. Short product life cycle and few variations
• C. High labor value and low transport uncertainty
• D. High labor value and high transport uncertainty domestically

Answer: A

NEW QUESTION 6

Medium-term demand management projections are used primarily to:

• A. complete strategic business planning of facilities.
• B. complete forecasts at the item level.
• C. aggregate demand for production planning.
• D. develop the master production schedule.

Answer: C

NEW QUESTION 7

In the analysis of costs, fixed costs are those that are:

• A. independent of the volume of output.
• B. dependent on the utilization of the asset.
• C. inversely proportionate to the volume of output.
• D. constant through the useful life of the asset.

Answer: A

NEW QUESTION 8

A manufacturer of plastic components that are sold either directly or through distributors wants to identify the requirements of the end customers for each market segment. Which of the following approaches would be most appropriate?

• A. Analyzing the buying history for each of the market segments
• B. Asking the manufacturer's direct customers
• C. Conducting a market research project
• D. Sending samples of potential future products to the final customers

Answer: C

NEW QUESTION 9

Allowing for organizational restructuring is an example of which of the following steps in creating successful strategic alliances among suppliers?

• A. Managing multifaceted relationships
• B. Negotiating a win-win deal
• C. Planning for change
• D. Conducting pulse checks

Answer: C

NEW QUESTION 10

Which of the following metrics is the most appropriate measure of supply chain responsiveness?

• A. Order fulfillment lead times
• B. Percentage of orders delivered on time
• C. Retail inventory days of supply
• D. Upside production flexibility

Answer: D

NEW QUESTION 11

Distribution from which of the following types of sites enables goods to enter a country, undergo further modification, and then be exported without paying customs duties?

• A. Public warehouse
• B. Value-added territory
• C. Free trade zone
• D. Customs clearing house

Answer: C

NEW QUESTION 12

A company has been delivering a global product that no longer appears profitable. Senior management’s best response is to:

• A. analyze product profitability by market segment.
• B. discontinue the product based on eroding profitability.
• C. provide additional incentives to the sales force.
• D. increase promotional activity across all markets.

Answer: A

NEW QUESTION 13

The profit margin for a product that is currently made in the company's facility has decreased during the past 2 years. Which of the following factors should be considered when deciding whether to make or buy the product?

• A. Production capabilities
• B. Transportation capabilities
• C. Distribution channels
• D. Landed cost

Answer: D

NEW QUESTION 14

A company originally based in Germany sets up companies in India, China, Vietnam, Mexico, and Brazil. It sources most of the raw materials locally and employs the local workforce to manage and produce finished goods. Most of the goods produced are consumed in the same country. The company can be classified as what type of enterprise?

• A. Globally integrated
• B. Domestic
• C. Multinational
• D. Virtual

Answer: C

NEW QUESTION 15

A primary reason for enhancing supply chain security is to:

• A. meet government requirements.
• B. reduce insurance costs.
• C. improve lead time.
• D. protect brand image.

Answer: D

NEW QUESTION 16

Which of the following reverse logistics activities involves reusing refurbished products?

• A. Return management
• B. Disposal and reclamation
• C. Decomposing and recycling
• D. Remanufacturing and repair

Answer: D

NEW QUESTION 17

Standardization of supply chain processes is most likely to facilitate achievement of which of the following activities?

• A. Reducing the total cost of ownership
• B. Tracking the effects of improvement initiatives
• C. Creating project consensus
• D. Understanding of operational metrics

Answer: B

NEW QUESTION 18

A company produces to stock and sells its products to distributors. The factor that most likely will contribute to the risk of loss in inventory investment is the:

• A. accuracy of demand forecasts.
• B. replenishment lead time.
• C. level of product quality.
• D. variability in supply.

Answer: A

NEW QUESTION 19

A manufacturer with operations in an area prone to natural disasters is reviewing its sustainability strategy. Which of the following production strategies should the company implement to reduce the risk of supply interruptions?

• A. Centralized
• B. Decentralized
• C. Make-to-order
• D. Engineer-to-order

Answer: B

NEW QUESTION 20

Which of the following outcomes most likely is the primary reason for outsourcing production of a new product?

• A. Increase control of the supply chain
• B. Increase flexibility of the supply chain
• C. Reduce required capital investment
• D. Reduce the need for skilled workers

Answer: C

NEW QUESTION 21

A company discovers that several high-volume customers have very erratic ordering patterns. Which of the following actions is most likely to reduce variability?

• A. Checking the demand status multiple times daily
• B. Establishing Internet-enabled collaborative relationships
• C. Implementing electronic data interchange transactions
• D. Increasing safety-stock levels for items these customers order

Answer: B

NEW QUESTION 22

A retailer sets service-level targets intended to maximize total profit. The retailer's service level target should be highest for items with a high profit margin and:

• A. low variability of demand.
• B. made to stock.
• C. small replenishment lot size.
• D. made to order.

Answer: A

NEW QUESTION 23
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