NEW QUESTION 1

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

NEW QUESTION 2

Which of the following consequences is a result of shipping directly from the point of manufacture to the customer rather than through a distribution network?

• A. Delivery lead times are consistent.
• B. Risk pooling benefits are negated.
• C. Distribution overhead is increased.
• D. Order-fill rate is decreased.

Answer: B

NEW QUESTION 3

A manufacturer is the leader of a group of trading partners that are collaborating to improve customer service levels and profitability. Which of the following methodologies would be most appropriate for synchronizing supply and demand across the supply chain?

• A. Sales and operations planning
• B. Distribution requirements planning
• C. Supply Chain Operations Reference-model
• D. Supply chain event management

Answer: A

NEW QUESTION 4

What benefit does Radio Frequency Identification (RFID) technology provide for a high- volume, low-cost manufacturer?

• A. Reduces store thefts
• B. Eliminates the effects of bullwhip
• C. Eliminates stock out at store level
• D. Reduces number of touch points in pallet handling

Answer: D

NEW QUESTION 5

A large bicycle company has outsourced manufacturing and needs to respond immediately to any logistics problems in the supply chain. The best technological solution to meet this need is:

• A. enterprise resources planning.
• B. supply chain event management.
• C. supplier relationship management.
• D. a transportation management system.

Answer: B

NEW QUESTION 6

Which of the following actions is most likely to improve the cash-to-cash cycle time?

• A. Find suppliers with lower total cost of ownership (TCO)
• B. Implement vendor-managed inventory (VMI) with key suppliers
• C. Implement vendor-managed inventory (VMI) with key customers
• D. Establish targeted promotions for the most profitable market segments

Answer: B

NEW QUESTION 7

Point-of-sale information fails to measure actual demand most likely because:

• A. holidays interrupt typical sales patterns.
• B. inventory levels are inaccurate.
• C. there is lag time in the system.
• D. data about lost sales cannot be captured.

Answer: D

NEW QUESTION 8

A main benefit of using customer relationship management (CRM) is:

• A. maximization of on-time delivery.
• B. minimization of product returns.
• C. identification of customers with high lifetime value.
• D. finding new markets for existing products and services.

Answer: C

NEW QUESTION 9

Which of the following outcomes is the primary benefit to an organization that develops a supplier certification program?

• A. Supplier capability is documented.
• B. Inspection costs are reduced.
• C. Delivery time is improved.
• D. Negotiating power is strengthened for the certifying organization.

Answer: B

NEW QUESTION 10

What is the appropriate supply chain strategy for a product with low demand uncertainty and high economies of scale?

• A. Pull
• B. Push
• C. Push-pull
• D. Postponement

Answer: B

NEW QUESTION 11

The benefit most likely to result from a collaborative forecasting process is:

• A. improvement in forecast accuracy.
• B. improvement in forecast responsiveness.
• C. reduction of the coefficient of variation.
• D. reduction of forecasting effort.

Answer: A

NEW QUESTION 12

Outsourcing is most appropriate when a product is:

• A. modular and independent of knowledge and capacity.
• B. modular and dependent on knowledge and capacity.
• C. integral and independent of knowledge and capacity.
• D. integral and dependent on knowledge and capacity.

Answer: A

NEW QUESTION 13

Use of a centralized distribution center rather than a decentralized distribution network typically results in which of the following consequences?

• A. Distribution system overhead is higher.
• B. Customer delivery time is shorter.
• C. Total transportation costs are lower.
• D. Safety stock levels are lower.

Answer: D

NEW QUESTION 14

The primary reason to establish a customer-dedicated warehouse is to:

• A. integrate and consolidate an assortment of inventory.
• B. position inventory to improve response time.
• C. balance inventory with consumption.
• D. equalize inbound and outbound logistics costs.

Answer: B

NEW QUESTION 15

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 16

The primary reason for a firm to pursue strategic supply chain activities is to:

• A. gain competitive advantage.
• B. reduce costs.
• C. increase productivity.
• D. decrease product lead time.

Answer: A

NEW QUESTION 17

A supplier has decided to improve its forecast accuracy by reducing the information lead time from the retailer. Which of the following actions would be most appropriate to achieve the desired result?

• A. Eliminating sales and promotions
• B. Decentralizing demand information
• C. Reducing its quoted lead time
• D. Utilizing electronic data interchange

Answer: D

NEW QUESTION 18

A firm has discovered a product quality issue. What should be the first step in responding to this issue?

• A. Determine the root cause of the quality issue.
• B. Separate the non-conforming products.
• C. Trace the location of the faulty product in the supply chain.
• D. Replace faulty products when they are returned by the end user.

Answer: C

NEW QUESTION 19

Effective sales and operations planning (S&OP) can contribute most to which of the following objectives?

• A. Increasing product quality
• B. Increasing the number of new customers
• C. Reducing unexpected customer requests
• D. Reducing excess inventory

Answer: D

NEW QUESTION 20

Which of the following processes ensures that functional plans are consistent?

• A. Strategic planning
• B. Sales and operations planning
• C. Project planning
• D. Master scheduling

Answer: B

NEW QUESTION 21

Which of the following characteristics typically is a feature of supplier relationship management?

• A. Supplier employees are located at the firm's facilities.
• B. Inventory is verified before the supplier ships the goods.
• C. Performance of both firms is measured and reported regularly.
• D. The supplier is the sole source for the goods.

Answer: C

NEW QUESTION 22

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 23
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