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NEW QUESTION 1
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 2
Which of the following characteristics typically is a feature of supplier relationship management?
- A. Supplier employees are located at the firm's facilities.
- B. Inventory is verified before the supplier ships the goods.
- C. Performance of both firms is measured and reported regularly.
- D. The supplier is the sole source for the goods.
Answer: C
NEW QUESTION 3
ABC Corporation is implementing a website that connects clothing distributors and retailers with many different garment manufacturers from whom they can buy finished goods. This website would be an example of:
- A. virtual auction site.
- B. intranet commerce.
- C. a vertical exchange.
- D. an Internet storefront.
Answer: C
NEW QUESTION 4
When designing a supply chain for strategic advantage, a company first should consider:
- A. the impact on customers using Just-in-Time manufacturing.
- B. the financial stability of suppliers.
- C. matching the supply chain to product type.
- D. whether to use custom or standard parts.
Answer: C
NEW QUESTION 5
A company operates under a make-to-order policy, and its supplier operates under a make- to-stock policy. Which of the following risks poses the greatest threat?
- A. Inventory risk for the company
- B. Inventory risk for the supplier
- C. Debt leverage risk for the company
- D. Debt leverage risk for the supplier
Answer: B
NEW QUESTION 6
The practice of purchasing items in large quantities and requesting that shipments be
delivered directly to customers is referred to as:
- A. drop shipping.
- B. cross-docking.
- C. breaking bulk.
- D. freight equalization.
Answer: A
NEW QUESTION 7
A company recently faced an increase in backorders. The company’s marketing department recently ran a sales promotion. The purchasing and planning departments were not aware of the promotional activity. Which of the following processes will help to solve this type of problem in the future?
- A. Sales and operations planning (S&OP)
- B. Advanced planning and scheduling (APS)
- C. Supplier relationship management (SRM)
- D. Customer relationship management (CRM)
Answer: A
NEW QUESTION 8
A large manufacturer wanting to be more competitive in the global market place decided to outsource its transportation and return processing to other companies on a contractual basis. The companies providing the services would be referred to as:
- A. fourth party logistics providers.
- B. third party logistics providers.
- C. retail services providers.
- D. distribution services providers.
Answer: B
NEW QUESTION 9
The most likely benefit of implementing a collaborative transportation management system is:
- A. lower distribution center operating costs.
- B. fewer transportation planners.
- C. less variability in picking and packing time.
- D. less variability in transportation costs.
Answer: D
NEW QUESTION 10
Effective sales and operation planning (S&OP) is most likely to result in which of the following benefits?
- A. Better customer service
- B. Better product quality
- C. Lower product cost
- D. Lower work-in-process (WIP) inventory
Answer: A
NEW QUESTION 11
When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements?
- A. Loyalty
- B. Scoring
- C. Segmentation
- D. Prospecting
Answer: C
NEW QUESTION 12
Continuous process improvement is characterized by which two of the following key steps?
- A. Quality circles and benchmarking
- B. Process review and supplier audits
- C. Analysis and assessment
- D. Observation and selection
Answer: C
NEW QUESTION 13
Which of the following types of lead times is related most closely to a supplier performance measure?
- A. Fulfillment
- B. Replenishment
- C. Overall
- D. Process
Answer: B
NEW QUESTION 14
What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?
- A. Reduced need for bar codes and radio frequency identification technology
- B. Reduced material handling costs
- C. Ease of control and count accuracy
- D. Maintain a cleaner shop floor
Answer: C
NEW QUESTION 15
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 16
When trying to decide whether to outsource its customer relationship management function, a company primarily should consider which of the following factors?
- A. Location of the service provider
- B. Internal controls of the company
- C. Compatibility of computer hardware
- D. Transaction costs
Answer: B
Explanation:
A grocery store found that ground beef sales increased when buns were a featured sales item. This customer relationship management technique is called:
A. data mining.
B. data tracking.
C. contact management.
A. D. order entry. Answer: A
NEW QUESTION 17
Which of the following practices has improved management of the customer pipeline?
- A. Reverse auctions
- B. Sales force automation
- C. Finite capacity planning
- D. Point-of-purchase metrics
Answer: :B
NEW QUESTION 18
Customizing can be an effective warehousing strategy because it allows a company to:
- A. allocate available storage space to optimize handling costs.
- B. address trade-offs between space and material handling needs.
- C. effectively design its inbound and outbound dock areas.
- D. add value to the product through modification, labeling, and packaging.
Answer: D
NEW QUESTION 19
In the supplier rationalization step of the supplier relationship management process, the supplier base is treated like:
- A. a rival competitor in a tight market.
- B. an extension of the enterprise.
- C. a subcontractor with the lowest bid.
- D. an end customer with 50% of the demand.
Answer: B
NEW QUESTION 20
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 21
The primary reason for a firm to pursue strategic supply chain activities is to:
- A. gain competitive advantage.
- B. reduce costs.
- C. increase productivity.
- D. decrease product lead time.
Answer: A
NEW QUESTION 22
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 23
Which of the following outcomes is the primary benefit to an organization that develops a supplier certification program?
- A. Supplier capability is documented.
- B. Inspection costs are reduced.
- C. Delivery time is improved.
- D. Negotiating power is strengthened for the certifying organization.
Answer: B
NEW QUESTION 24
In an advanced planning system, which of the following modules feeds the master planning module?
- A. Purchasing planning
- B. Demand planning
- C. Distribution planning
- D. Fulfillment planning
Answer: B
NEW QUESTION 25
Continuous improvement is best described as:
- A. a never-ending effort to expose and eliminate root causes of problems.
- B. a never-ending effort by the management team to reduce cycle time.
- C. identifying and implementing big-step improvements within a process.
- D. a process in which a supplier commits to replenishing inventory based on demand without receiving replenishment orders.
Answer: A
NEW QUESTION 26
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