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NEW QUESTION 1
Which of the following outcomes occurs when direct shipping is used instead of a distribution network?
- A. Outbound transportation cost is reduced.
- B. Inventory velocity is reduced.
- C. Order-fill rates are reduced.
- D. Inventory obsolescence is reduced.
Answer: D
NEW QUESTION 2
Which of the following approaches typically would be most effective in increasing inventory velocity in a supply chain?
- A. Using faster modes of transportation
- B. Using third-party logistics firms
- C. Reducing the inventory idle time
- D. Adding capacity at bottlenecks
Answer: C
NEW QUESTION 3
A company uses multiple ingredients to make a product that is sold in multiple countries. Each country requires country-specific labels. A third-party supplier provides the country- specific labels. The most appropriate push-pull interface is:
- A. raw materials to product.
- B. product to labels.
- C. finished product with labels.
- D. customer to finished product.
Answer: B
NEW QUESTION 4
Which of the following outcomes is an advantage of automating the request-for-quote process?
- A. Reducing cycle time
- B. Disposing of excess inventories
- C. Centralization of product service content
- D. Enabling contract management
Answer: A
NEW QUESTION 5
Which of the following factors should be considered when establishing an inventory policy?
- A. Customer demand
- B. Selling price history
- C. Historical service levels
- D. Number of customers
Answer: A
NEW QUESTION 6
Which of the following processes is included in reverse logistics?
- A. Designing a new product out of recycled material
- B. Restoring a worn-out product to like-new condition
- C. Reducing the amount of packaging material in a product
- D. Eliminating toxic materials in a product
Answer: :B
NEW QUESTION 7
The most useful inventory costing method which enables purchase price variance analysis
is:
- A. average costing.
- B. standard costing.
- C. last in first out (LIFO) costing.
- D. first in first out (FIFO) costing.
Answer: B
NEW QUESTION 8
Which of the following actions is in accordance with the Ten Principles in the United Nations (UN) Global Compact?
- A. Preventing a group of employees from forming a collective bargaining (union) group
- B. Paying different wages in different parts of the world for a given job classification
- C. Requiring an individual to pay a fee for consideration in hiring or promotion decisions
- D. Withholding certain employment opportunities from specific groups of people
Answer: B
NEW QUESTION 9
Which of the following statements about the use of bar code labels for product identification in the supply chain is true?
- A. They have been replaced by radio frequency identification tags.
- B. They can be read by devices 1 to 3 meters from the item.
- C. They facilitate the capture of information about the location of items.
- D. Each of the trading partners must apply a unique label.
Answer: C
NEW QUESTION 10
Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?
- A. Reducing the size of the sales force by automating activities
- B. Gaining a better understanding of customer requirements
- C. Implementing automated inter-organizational processes
- D. Focusing sales efforts on the most profitable customers
Answer: B
NEW QUESTION 11
A product design that can be produced to requirements even when conditions in the production process are unfavorable typically is known as what type of design?
- A. Universal
- B. Computer-aided
- C. Modular
- D. Robust
Answer: D
NEW QUESTION 12
Use of a private warehouse is most appropriate when a firm needs to:
- A. adjust warehouse capacity easily for seasonal products.
- B. perform a limited number of specialized activities for customers.
- C. control operating policies and hours to respond to changes in market demand.
- D. take advantage of economies of scale and scope to increase profitability.
Answer: C
NEW QUESTION 13
A company has revenues of $100,000, which includes 10% supply chain expense and 80% other expenses. Which of the following actions will result in the largest increase in gross profit?
- A. Increase sales by 25%.
- B. Increase sales by 10% and reduce supply chain expense to 8%.
- C. Increase sales by 15% and reduce supply chain expense to 9%.
- D. Reduce supply chain expense to 5%.
Answer: :D
NEW QUESTION 14
Lean supply chains strive to achieve their objectives by using which of the following approaches?
- A. Inventory optimization
- B. Cost reduction
- C. Waste reduction
- D. Quality function deployment (QFD)
Answer: C
NEW QUESTION 15
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 16
A car manufacturer has 40000 cars in inventory, of which 5000 are electric. The manufacturer expects to sell 5000 cars per day, of which 4000 are estimated to be gasoline cars. The days of supply for electric cars is:
- A. 40 days.
- B. 10 days.
- C. 8 days.
- D. 5 days.
Answer: D
NEW QUESTION 17
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 18
Customer demand is 120 units per week. The company works on a 9-hour shift per day, 5- day per week basis. Each shift has a ½-hour lunch break and two 15-minute coffee breaks. The cycle time is 12 minutes. To meet demand, production must occur at the rate of one unit every:
- A. 12 minutes.
- B. 20 minutes.
- C. 22.5 minutes.
- D. 28 minutes.
Answer: B
NEW QUESTION 19
During the sales and operations planning (S&OP) horizon, planned inventory can best be used to:
- A. implement a time-phased stock replenishment plan.
- B. allow for consistent production lot sizing.
- C. buffer the company against unknown fluctuations in demand.
- D. minimize storage and transportation costs.
Answer: C
NEW QUESTION 20
A typical advantage of a production outsourcing strategy for a company focusing on agility as a competitive priority is that:
- A. monitoring costs are decreased.
- B. production lead time is increased.
- C. product quality is increased.
- D. product introduction time is decreased.
Answer: D
NEW QUESTION 21
Which of the following levels in a supply chain network represents the most upstream external activity?
- A. Supplier to contractor
- B. Manufacturing to supplier
- C. Customer to distribution
- D. Customer to contractor
Answer: A
NEW QUESTION 22
An information technology system that couples enterprise resources planning and an advanced planning system would be most appropriate for which of the following types of business operations?
- A. Multiple plants in multiple industries
- B. Multiple plants in the same supply chain
- C. Multiple supply chains of different products
- D. Multiple supply chains of the same product
Answer: B
NEW QUESTION 23
The use of a seasonal index as a forecasting technique measures the ratio of the:
- A. average seasonal demand to the average demand for all periods.
- B. average demand for all periods to the average seasonal demand.
- C. average seasonal demand to the standard deviation of the demand for all periods.
- D. standard deviation of the seasonal demand to the standard deviation of demand for all periods.
Answer: A
NEW QUESTION 24
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 25
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 26
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