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NEW QUESTION 1
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 2
Which of the following actions is most likely to increase total supply chain risk?
- A. Standardizing components used in a product family
- B. Expanding operations to multiple locations
- C. Consolidating manufacturing locations
- D. Reducing the supplier base for commodity-type components
Answer: C
NEW QUESTION 3
A firm has captured the following information for a product family:
The cash-to-cash cycle time is how many days?
- A. 41
- B. 44
- C. 62
- D. 74
Answer: C
NEW QUESTION 4
Which of the following actions by trading partners would be most appropriate to protect against variability in supply and demand?
- A. Improve product quality.
- B. Increase inventory levels.
- C. Increase information sharing.
- D. Reduce product complexity.
Answer: C
NEW QUESTION 5
Which of the following actions is in accordance with the Ten Principles in the United Nations (UN) Global Compact?
- A. Preventing a group of employees from forming a collective bargaining (union) group
- B. Paying different wages in different parts of the world for a given job classification
- C. Requiring an individual to pay a fee for consideration in hiring or promotion decisions
- D. Withholding certain employment opportunities from specific groups of people
Answer: B
NEW QUESTION 6
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
Explanation: Topic 2, Supply Chain Strategy, Design, and Compliance
NEW QUESTION 7
A company has adequate average available capacity but does not maintain surge capacity. With a distribution route to manage, which of the following actions will provide the most capacity relief?
- A. Increasing order-fulfillment lead times
- B. Implementing allocation
- C. Increasing prices with a 30-day effective date
- D. Increasing product queue times
Answer: A
NEW QUESTION 8
A company uses cash-to-cash cycle time to assess how long it takes from:
- A. receiving inventory from the supplier to paying the invoice from the supplier.
- B. receiving inventory from the supplier to invoicing the customer.
- C. paying the supplier for inventory received to receiving payment from the customer.
- D. invoicing a customer to receiving payment from the customer.
Answer: C
NEW QUESTION 9
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 10
The recovery element of a reverse logistics supply chain strategy is best illustrated by:
- A. the use of refillable containers by a water supply company.
- B. the use of rechargeable batteries by an individual.
- C. a grower selling fresh-produce scrap to other farmers.
- D. the reduction of energy consumption by a manufacturer.
Answer: A
NEW QUESTION 11
Which of the following measures typically would be considered an aspect of the environmental impact of a supply chain?
- A. Amount of funds invested in infrastructure improvements
- B. Hours of employee education about environmental stewardship
- C. Weight and volume of packaging materials used
- D. Total number of people making a living wage
Answer: C
NEW QUESTION 12
In determining warehouse velocity, the average inventory level is calculated by dividing the
annual sales through the warehouse by the:
- A. total square footage of the warehouse.
- B. inventory turnover rates for the warehouse.
- C. annual weight through the warehouse.
- D. annual cube through the warehouse.
Answer: B
NEW QUESTION 13
Continuous improvement is best described as:
- A. a never-ending effort to expose and eliminate root causes of problems.
- B. a never-ending effort by the management team to reduce cycle time.
- C. identifying and implementing big-step improvements within a process.
- D. a process in which a supplier commits to replenishing inventory based on demand without receiving replenishment orders.
Answer: A
NEW QUESTION 14
An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in:
- A. prices to the end user.
- B. supply chain cost of sales.
- C. the manufacturer's inventory.
- D. the total supply chain inventory.
Answer: D
NEW QUESTION 15
Which of the following actions by a group of trading partners is most likely to improve the flow of funds among them?
- A. Increasing the level of information sharing and collaboration
- B. Negotiating a single set of terms for the trading partners
- C. Reducing the time allowed for the timely payment discount
- D. Implementing links among their information systems
Answer: A
NEW QUESTION 16
Electronic data interchange reduces costs primarily through:
- A. standardization of trading document formats.
- B. adaptability across hardware platforms.
- C. simplified software development.
- D. replacement of proprietary systems.
Answer: A
NEW QUESTION 17
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 18
The process of gathering data about what customers need and ensuring that desired features are included in the design and initial planning phase of a new product or service is known as:
- A. a quick response program.
- B. quality function deployment.
- C. total quality management.
- D. early supplier involvement.
Answer: B
NEW QUESTION 19
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 20
A manufacturer of fast-moving consumer goods wants to implement a process improvement method to increase flexibility and decrease the risk of obsolete inventory. Which of the following approaches is most likely to help reach these goals?
- A. Lean manufacturing
- B. Advanced planning and scheduling
- C. Six sigma
- D. Total quality management
Answer: A
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