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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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