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NEW QUESTION 1

A business is changing from a business to business model to a business to consumer model. Which of the following statements about this supply chain change is true?

  • A. Returns from customers will decrease.
  • B. Number of supplier orders will increase.
  • C. Number of customer orders will increase.
  • D. Average supplier order size will increase.

Answer: C

NEW QUESTION 2

The most important challenge to consider when sourcing globally is:

  • A. the identification of sources capable of producing the materials.
  • B. the availability of low-cost labor and energy.
  • C. complying with specific import/export issues.
  • D. balancing the difference between piece price and total cost.

Answer: D

NEW QUESTION 3

A company most likely would consider moving a portion of its manufacturing to a second location to:

  • A. improve competitive advantage through cost control.
  • B. avoid manufacturing downtime due to material shortages.
  • C. maximize security for customer shipments.
  • D. minimize the impact of natural disasters.

Answer: D

NEW QUESTION 4

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 5

Which of the following processes would a company use to evaluate the risk profile for end- of-life planning for a product family?

  • A. Distribution requirements planning
  • B. Sales and operations planning
  • C. Rough-cut capacity planning
  • D. Production activity control

Answer: B

NEW QUESTION 6

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 7

Pull strategy typically would be the most appropriate strategy when customer demand uncertainty is:

  • A. high, and supplier lead time is long.
  • B. high, and supplier lead time is short.
  • C. low, and supplier lead time is long.
  • D. low, and supplier lead time is short.

Answer: B

NEW QUESTION 8

A firm has determined its cash-to-cash cycle time to be 60 days. The number of days' payables outstanding is 25, and number of days' sales outstanding is 35. If the firm reduces its inventory by 20%, the new cash-to-cash cycle time, in days, will be approximately:

  • A. 48.
  • B. 50.
  • C. 60.
  • D. 88.

Answer: B

NEW QUESTION 9

The value that logistics provides within the supply chain can best be summarized as:

  • A. satisfying customer expectations about availability and delivery at an acceptable total cost.
  • B. meeting promised location and on-time delivery goals with minimal use of expediting.
  • C. establishing inventory and delivery goals with various customers that fulfill the firm's profit objectives.
  • D. providing accurate in-transit and delivery information to customers and salespeople.

Answer: A

NEW QUESTION 10

Functional products require which of the following types of supply chain process?

  • A. Restrictive
  • B. Innovative
  • C. Efficient
  • D. Integrated

Answer: :C

NEW QUESTION 11

A company has recently implemented a vendor-managed inventory (VMI) program with several key suppliers but quality issues are disrupting production. Which of the following actions would be more effective in dealing with these issues?

  • A. Tighten the quality tolerances
  • B. Implement a supplier certification program
  • C. Implement quality inspection at the receiving dock
  • D. Charge back to the supplier the rework and scrap costs

Answer: B

NEW QUESTION 12

Prioritizing customer needs is best accomplished by:

  • A. sharing information with key customers.
  • B. installing a new enterprise resources planning system.
  • C. responding to customer requests in the order they are received.
  • D. establishing policies and procedures for honoring customer requests.

Answer: D

NEW QUESTION 13

A service company has decided to create a customer-focused business and has identified the following steps in the process:
{exhibit 3860}
Which of the following sequences of steps is correct for implementing the company's decision?

  • A. 2, 1, 4, 3, 5
  • B. 4, 2, 1, 5, 3
  • C. 3, 5, 2, 4, 1
  • D. 4, 2, 5, 1, 3

Answer: B

NEW QUESTION 14

The mission of the global reporting initiative (GRI) is to provide a:

  • A. comparison of key metrics for companies in the same industries across the globe.
  • B. feasible business plan that can be shown to global potential investors.
  • C. trusted and credible framework for reports regarding sustainability practices.
  • D. transparent collaboration between non-profit organizations and governments.

Answer: C

NEW QUESTION 15

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 16

When profit impact is high and supply risk is low for an item, which of the following procurement strategies is most likely to be effective and successful?

  • A. Leveraging purchasing power
  • B. Forming a long-term partnership
  • C. Automating the procurement process
  • D. Ensuring continuous supply

Answer: A

NEW QUESTION 17

A manufacturer of fast-moving consumer goods wants to implement a process improvement method to increase flexibility and decrease the risk of obsolete inventory. Which of the following approaches is most likely to help reach these goals?

  • A. Lean manufacturing
  • B. Advanced planning and scheduling
  • C. Six sigma
  • D. Total quality management

Answer: A

NEW QUESTION 18

An advanced planning system differs primarily from enterprise resources planning by:

  • A. optimizing operations scheduling.
  • B. translating plans into action.
  • C. concentrating on production.
  • D. linking to the transportation management system.

Answer: A

NEW QUESTION 19

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 20

A manufacturer offers a trade-in allowance on a new machine when the customer returns the old machine. The manufacturer reconditions the returned machine locally and then sells it on the used market for a profit. This program is an example of a focus on:

  • A. environmentally sensitive engineering.
  • B. gray box design.
  • C. green manufacturing.
  • D. sustainability in operations.

Answer: D

NEW QUESTION 21

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 22

Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?

  • A. Use a more rapid transportation mode.
  • B. Increase safety stock.
  • C. Extend product warranty.
  • D. Employ lean principles.

Answer: D

NEW QUESTION 23

The primary risk that must be considered when lean practices are applied to a supply chain network is:

  • A. decreased operations flexibility.
  • B. decreased inventory availability.
  • C. increased total ordering costs.
  • D. increased customer returns.

Answer: B

NEW QUESTION 24

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 25

Implementation of supply chain applications based on which of the following technologies is most likely to have the lowest fixed costs?

  • A. Best of breed packages
  • B. One integrated package
  • C. Service-oriented architecture
  • D. Software-as-a-service

Answer: D

NEW QUESTION 26
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