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