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NEW QUESTION 1
A manufacturer uses standard costing, and a potential supplier uses activity-based costing. This difference most likely will have implications for which of the following types of future decisions?

  • A. Price concessions
  • B. Make-or-buy
  • C. Distribution warehouse locations
  • D. Freight terms

Answer: B

NEW QUESTION 2
An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in:

  • A. prices to the end user.
  • B. supply chain cost of sales.
  • C. the manufacturer's inventory.
  • D. the total supply chain inventory.

Answer: D

NEW QUESTION 3
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 4
Which of the following factors is most likely to slow the adoption of collaborative planning, forecasting, and replenishment (CPFR)?

  • A. The reluctance to share detailed information
  • B. The cost of electronic data interchange services
  • C. The risk that changed processes will disrupt operations
  • D. The risk of security breaches

Answer: A

NEW QUESTION 5
A retailer wants to partner with its suppliers to implement automatic replenishment of inventories and joint sales forecasts. Which of the following supply chain management technologies most likely would support the retailer's strategy?

  • A. Advanced planning and scheduling
  • B. Collaborative planning, forecasting, and replenishment
  • C. Supplier relationship management applications
  • D. Radio frequency identification (RFID) tags

Answer: B

NEW QUESTION 6
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 7
Companies are more likely to consider the consequences of their product design decisions when they view the reverse supply chain as an extension of the:

  • A. forward supply chain.
  • B. marketing process.
  • C. manufacturing process.
  • D. sales and operations planning process.

Answer: A

NEW QUESTION 8
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 9
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 10
Which of the following measures typically would be considered an aspect of the environmental impact of a supply chain?

  • A. Amount of funds invested in infrastructure improvements
  • B. Hours of employee education about environmental stewardship
  • C. Weight and volume of packaging materials used
  • D. Total number of people making a living wage

Answer: C

NEW QUESTION 11
Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:

  • A. wider variety.
  • B. shorter lead time.
  • C. higher profit margins.
  • D. lower sales volumes.

Answer: C

NEW QUESTION 12
Which of the following conditions is most likely to occur shortly after the introduction of an innovative product family?

  • A. Forecast errors will be low.
  • B. Production lead time will increase.
  • C. An inventory buffer will be required.
  • D. Demand will be stable.

Answer: C

NEW QUESTION 13
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 14
The primary objective of supply chain management is:

  • A. minimizing transportation costs.
  • B. reducing inventory levels.
  • C. taking a systems approach.
  • D. implementing advanced technologies.

Answer: C

NEW QUESTION 15
Which of the following distribution approaches for a low-volume, high-variety product line typically will result in the highest level of customer service and the lowest total distribution costs?

  • A. Direct shipment from plant to customers
  • B. Shipment from a central distribution warehouse
  • C. Shipment through a multi-echelon distribution network
  • D. Outsourcing the distribution function

Answer: A

NEW QUESTION 16
Which of the following warehousing tools enables wireless scanning of products?

  • A. Magnetic stripes
  • B. Universal product codes
  • C. Radio frequency devices
  • D. Local area network

Answer: C

NEW QUESTION 17
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 18
The transportation manager at a consumer goods manufacturer has decided to begin shipping full truckload rather than less-than-truckload quantities. Which of the following
outcomes is likely following implementation of this decision?

  • A. Inventory levels at the manufacturer will decrease.
  • B. Lead times as seen by the customer will increase.
  • C. Production efficiencies at the manufacturer will increase.
  • D. Transportation costs as seen by the customer will increase.

Answer: B

NEW QUESTION 19
Which of the following activities is forbidden in a foreign trade zone?

  • A. Remarking or repackaging imports to avoid fines
  • B. Breaking up large shipments to reduce import duties
  • C. Reexporting goods without paying duties
  • D. Conducting retail trade

Answer: D

NEW QUESTION 20
Demand management involves which of the following undertakings?

  • A. Adjusting capacity to support expected demand
  • B. Engaging in activities associated with customer relationship management
  • C. Creating higher customer demand by improving performance in areas such as lead time and service levels
  • D. Understanding events and managing activities that could influence future demand

Answer: D

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