NEW QUESTION 1

Purchased component standardization generates savings primarily by reducing:

• A. assembly costs through economies of scale.
• B. engineering costs due to lower testing requirements.
• C. inventory control costs due to smaller shelf space requirements.
• D. inventory transportation costs by using economical modes.

Answer: A

NEW QUESTION 2

Managing risk should be a strategic part of supply chain management because:

• A. the occurrence of unanticipated risks essentially can be eliminated.
• B. not all members of the supply chain consider and respond to the same types of risks.
• C. substantial financial penalties can be assessed if legal requirements are not met.
• D. it helps to reduce the occurrence and consequences of unplanned negative events.

Answer: :D

NEW QUESTION 3

A manufacturer with operations in an area prone to natural disasters is reviewing its sustainability strategy. Which of the following production strategies should the company implement to reduce the risk of supply interruptions?

• A. Centralized
• B. Decentralized
• C. Make-to-order
• D. Engineer-to-order

Answer: B

NEW QUESTION 4

Designing a supply chain to maximize responsiveness and flexibility is most appropriate for which of the following types of organizations?

• A. Public utility provider
• B. Configurable products manufacturer
• C. Commodity goods supplier
• D. Luxury goods manufacturer

Answer: B

NEW QUESTION 5

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 6

A corporation must consider which of the following factors when selecting its enterprise resources planning system?

• A. Uniqueness of operations
• B. Corporate profitability
• C. MRP and MRP II processing
• D. Industry benchmarks

Answer: A

NEW QUESTION 7

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 8

Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange?

• A. Expensive material that is critical to the finished good
• B. Expensive material for which there are several substitutes
• C. Inexpensive material that is critical to the finished good
• D. Inexpensive material for which there are many sources

Answer: :D

NEW QUESTION 9

The question below is based on the following flowchart:

Which of the following phrases most accurately describes the complete flow of demand information?

• A. From supplier to customer
• B. From customer to manufacturer
• C. From customer to supplier
• D. From supplier to manufacturer

Answer: C

NEW QUESTION 10

Which of the following elements is critical to successfully using a sales and operations planning process?

• A. Focusing on performance of the past 12 to 18 months
• B. Implementing a unified cross-functional plan and process
• C. Implementing bottom-up decision making
• D. Aligning the forecast to the annual budget

Answer: B

NEW QUESTION 11

When implementing e-commerce in the supply chain, a company's toughest challenge most likely will be:

• A. getting all vendors to computerize.
• B. translating data into universal standards.
• C. convincing the information technology department of the value.
• D. explaining the reason for change to customers.

Answer: B

NEW QUESTION 12

Which of the following actions typically would be the first step in implementing the philosophy of customer relationship management?

• A. Creating a customer-centric organization
• B. Developing a map of the customer segments
• C. Documenting the objectives for implementation
• D. Selecting an information technology solution

Answer: A

NEW QUESTION 13

The process used to determine the impact of promotions, price discounts, and rebates on demand forecasts commonly is referred to as demand:

• A. planning.
• B. forecasting.
• C. aggregating.
• D. shaping.

Answer: D

NEW QUESTION 14

The primary focus of lean manufacturing is:

• A. eliminating activities that do not add value.
• B. reducing inventory levels.
• C. optimizing production activities.
• D. maximizing the output of constraints.

Answer: A

NEW QUESTION 15

A large manufacturer wanting to be more competitive in the global market place decided to outsource its transportation and return processing to other companies on a contractual basis. The companies providing the services would be referred to as:

• A. fourth party logistics providers.
• B. third party logistics providers.
• C. retail services providers.
• D. distribution services providers.

Answer: B

NEW QUESTION 16

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 17

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 18

What are the steps in the supplier relationship process?

• A. Measure, fulfill, document, model
• B. Source, document, manage
• C. Measure, procure, fulfill, model
• D. Source, procure, fulfill, manage

Answer: D

NEW QUESTION 19

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 20

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 21

Which of the following customer relationship management activities most appropriately is used for revenue generation?

• A. Generating customer leads
• B. Generating graphic sales models
• C. Measuring customer preferences
• D. Identifying customer margins

Answer: A

NEW QUESTION 22

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 23
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