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NEW QUESTION 1
A company is beginning the process of defining market segments for its products and services. The most appropriate objective for this undertaking would be to identify groups of customers with similar:

  • A. geographical locations.
  • B. buying power.
  • C. revenue potential.
  • D. service requirements.

Answer: D

NEW QUESTION 2
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 3
When evaluating several possible supply chain options, a firm considering the minimal total cost should:

  • A. ensure that the inventory levels are as low as possible to minimize holding costs while still providing adequate customer service.
  • B. account for the combined costs of holding buffer inventory and incurring inventory shortages.
  • C. consider the costs of acquiring, holding, and transporting inventory, and of servicing customers.
  • D. place buffer inventory in the lowest cost locations that meet lead time and service level requirements from customers.

Answer: C

NEW QUESTION 4
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 5
Allowing for organizational restructuring is an example of which of the following steps in creating successful strategic alliances among suppliers?

  • A. Managing multifaceted relationships
  • B. Negotiating a win-win deal
  • C. Planning for change
  • D. Conducting pulse checks

Answer: C

NEW QUESTION 6
A manufacturing company with limited competence in logistics plans to expand into an international market. The most appropriate initial action the company should take is to:

  • A. buy a distribution company.
  • B. build a distribution network.
  • C. engage a third-party logistics company.
  • D. gain logistics experience.

Answer: C

NEW QUESTION 7
The strategy to implement supplier relationship management has been developed. The most appropriate next step is to:

  • A. develop criteria for prospective partners.
  • B. develop policies for alliances.
  • C. select initial partners.
  • D. conduct a pilot implementation.

Answer: A

NEW QUESTION 8
Which of the following performance indicators can be used to measure the effectiveness of a vendor-managed inventory program?

  • A. Number of inventory receipts
  • B. Inventory usage
  • C. Inventory returns
  • D. In-stock rate

Answer: D

NEW QUESTION 9
Which of the following factors is most important to consider when deciding on offshore outsourcing of manufacturing to a supplier?

  • A. Size of the supplier organization
  • B. Total cost of ownership
  • C. Supplier performance history
  • D. Supplier certification

Answer: B

NEW QUESTION 10
Which of the following activities typically is included in a warehouse management system?

  • A. Invoicing
  • B. Freight-bill auditing
  • C. Order processing
  • D. Vehicle routing

Answer: C

NEW QUESTION 11
Top management typically plans an organization's long-term future by isolating new opportunities and threats and identifying growth objectives during the process known as:

  • A. resource planning.
  • B. sales and operations planning.
  • C. corporate strategizing.
  • D. financial planning.

Answer: C

NEW QUESTION 12
Which of the following strategies is used primarily for demand planning?

  • A. Build-to-order scheduling
  • B. Push-pull replenishment
  • C. Collaborative planning, forecasting, and replenishment
  • D. Vendor-managed inventory

Answer: C

NEW QUESTION 13
The primary reason for the evolution of the supply chain is:

  • A. fewer rejects due to poor quality.
  • B. increased on-time delivery.
  • C. increased cost savings.
  • D. increased communication.

Answer: D

NEW QUESTION 14
The primary contribution from an enterprise resources planning system in building supply chain capability is:

  • A. real-time manufacturing planning.
  • B. improved decision making.
  • C. ease of implementation.
  • D. timely order tracking.

Answer: B

NEW QUESTION 15
Which of the following activities typically would be an appropriate application of the ISO 31000 Risk Management Principles and Guidelines?

  • A. Calculating a risk index for each facility
  • B. Establishing external risk communications processes
  • C. Projecting the ability of a facility to recover from an event
  • D. Preparing for risk management accreditation

Answer: B

NEW QUESTION 16
A company's supply chain depends heavily on sourcing from international suppliers. Conditions increasingly threaten supply continuity. Which of the following actions is most
appropriate?

  • A. Source from domestic suppliers.
  • B. Conduct a risk assessment.
  • C. Carry additional safety stock.
  • D. Spread logistics across multiple carriers.

Answer: B

NEW QUESTION 17
A company has been delivering a global product that no longer appears profitable. Senior management’s best response is to:

  • A. analyze product profitability by market segment.
  • B. discontinue the product based on eroding profitability.
  • C. provide additional incentives to the sales force.
  • D. increase promotional activity across all markets.

Answer: A

NEW QUESTION 18
A company manufactures special products for select customers. When demand for these products drops, the manufacturer can switch the production line to a commodity-type product that can be sold on the open market at reduced terms to generate cash. The company is executing a corporate strategy that is based on:

  • A. customer focus and alignment.
  • B. forecast accuracy.
  • C. multiple downstream channels.
  • D. multiple upstream supply chains.

Answer: D

NEW QUESTION 19
A company that is having difficulties prioritizing resources against a long list of improvement projects should use which of the following processes?

  • A. Control chart
  • B. Competitive benchmarking
  • C. Pareto analysis
  • D. Six Sigma

Answer: C

NEW QUESTION 20
The production scheduler for a bottleneck resource should:

  • A. schedule additional preventive maintenance for the resource.
  • B. ensure a constant queue of work waiting to be processed.
  • C. increase production lot sizes to increase utilization of resources.
  • D. implement pull signals for production of the bottleneck resource.

Answer: B

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