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NEW QUESTION 1
A company is considering relocating production to a lower-wage country. Volatility in which of the following areas most likely would impact profitability without modifying product landed costs?
- A. Labor costs
- B. Currency exchange rates
- C. Commodity prices
- D. Product quality
Answer: AB
NEW QUESTION 2
A company that manufactures complex mechanical assemblies to customer order and ships them directly to the customer is implementing manufacturing cells. The benefit most likely to result from this effort is a reduction in the:
- A. number of component shortages.
- B. production planning horizon.
- C. time to fill customer orders.
- D. response time to a request for quote.
Answer: C
NEW QUESTION 3
A company that sells engineered-to-order products is planning implementation of a supplier relationship management system (SRM) for direct materials. Which of the following factors is most likely to make the implementation difficult?
- A. Complexity of the purchasing process
- B. Cost of the application software upgrades
- C. Management of variable lead times
- D. Resistance of material suppliers
Answer: A
NEW QUESTION 4
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
NEW QUESTION 5
A primary objective of customer relationship management is to:
- A. implement market segmentation.
- B. create a data warehouse with critical customer information.
- C. identify customer needs for a greater level of satisfaction.
- D. target product promotions to customer segments.
Answer: C
NEW QUESTION 6
When profit impact is high and supply risk is low for an item, which of the following procurement strategies is most likely to be effective and successful?
- A. Leveraging purchasing power
- B. Forming a long-term partnership
- C. Automating the procurement process
- D. Ensuring continuous supply
Answer: A
NEW QUESTION 7
Distribution from which of the following types of sites enables goods to enter a country, undergo further modification, and then be exported without paying customs duties?
- A. Public warehouse
- B. Value-added territory
- C. Free trade zone
- D. Customs clearing house
Answer: C
NEW QUESTION 8
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 9
A company is aggressively pursuing improvements in the financial performance of its supply chain. The company should first focus its efforts on which of the following metrics?
- A. Process takt time
- B. Cycle count accuracy
- C. Number of inventory turns
- D. Number of first-tier suppliers
Answer: C
NEW QUESTION 10
Which of the following situations is a consequence of global operations?
- A. Decreased logistic cost
- B. Increased logistic complexity
- C. Reduced product variety
- D. Longer lead times
Answer: B
NEW QUESTION 11
What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?
- A. Reduced need for bar codes and radio frequency identification technology
- B. Reduced material handling costs
- C. Ease of control and count accuracy
- D. Maintain a cleaner shop floor
Answer: C
Explanation: Topic 3, Implementation and Operations
NEW QUESTION 12
A return material authorization (RMA) policy is used in reverse logistics to:
- A. physically transport returned items by using an efficient transportation mode.
- B. minimize the number of returned items by involving product design and demand forecasting.
- C. reduce the cost of returned items by refusing to accept items that should not be returned.
- D. reclaim substantial value from returned items by recycling.
Answer: C
NEW QUESTION 13
A firm has increased finished-goods inventories for several products to compensate for increased variability in demand. The firm analyzed shipment data and determined that the variability was due to a few customers placing large orders for single shipments to obtain discounts. Which of the following actions is the firm most likely to take to maintain sales and reduce variability in demand?
- A. Reducing discounts for large orders
- B. Encouraging high-volume customers to place blanket orders
- C. Implementing extrinsic forecasting methods
- D. Increasing the level of safety stock on high-volume products
Answer: B
NEW QUESTION 14
Which of the following situations is an example of postponement?
- A. Shipments are broken down into small groups for reshipment.
- B. Shipments are consolidated immediately for reshipment.
- C. Production begins after a customer order is received.
- D. Partially assembled goods are assembled at a later stage.
Answer: D
NEW QUESTION 15
A supply chain visibility application helps an organization by:
- A. planning raw material requirements.
- B. removing outliers from independent demand forecasts.
- C. providing flexibility in customer delivery locations.
- D. providing comprehensive information from any point of contact.
Answer: D
NEW QUESTION 16
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 17
Which of the following actions typically is most important when building a collaborative supply chain?
- A. Investing sufficient capital
- B. Building mutual trust
- C. Integrating information systems
- D. Developing a common culture
Answer: B
NEW QUESTION 18
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 19
Supply chains delivering products or services are most able to respond quickly to changing market requirements when:
- A. products have been standardized.
- B. products have a modular design.
- C. production processes have been standardized.
- D. production processes have been simplified.
Answer: B
NEW QUESTION 20
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
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