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NEW QUESTION 1
A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of its trucks and now purchases transportation services from fleet operators. This is an example of which of the following strategies?

  • A. Selling and leasing back equipment.
  • B. Renting equipment on consignment.
  • C. Using a third-party logistics provider.
  • D. Using an owner-operator fleet.

Answer: C

NEW QUESTION 2
Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

  • A. Production equipment productivity
  • B. Net asset turnover
  • C. Value-added productivity per employee
  • D. Upside flexibility

Answer: B

NEW QUESTION 3
Use of consistent performance measures among trading partners is a best practice to:

  • A. share data among information systems faster.
  • B. manage collaboration and continuous improvement.
  • C. reduce the time to introduce new products.
  • D. increase the flexibility to collaborate with customers.

Answer: B

NEW QUESTION 4
An information technology system that couples enterprise resources planning and an advanced planning system would be most appropriate for which of the following types of business operations?

  • A. Multiple plants in multiple industries
  • B. Multiple plants in the same supply chain
  • C. Multiple supply chains of different products
  • D. Multiple supply chains of the same product

Answer: B

NEW QUESTION 5
A company is formally adhering to the principles of the UN Global Compact. After a review of their supply chain, they have found that a key supplier is in violation of the compact. The
best action for the company to do first is:

  • A. do nothin
  • B. The company is not responsible for compliance of suppliers.
  • C. replace the supplier as soon as possible with a compliant supplier.
  • D. notify the supplier of non-compliance.
  • E. require the supplier to become compliant.

Answer: C

NEW QUESTION 6
Which of the following actions is an initial step in a continuous process improvement model?

  • A. Creating a flowchart to map the process
  • B. Benchmarking against another company
  • C. Setting specific performance goals
  • D. Developing a realistic project plan

Answer: A

NEW QUESTION 7
Which of the following statements describes a continuous replenishment strategy in a retail environment?

  • A. Retailers make replenishment decisions.
  • B. Retailers prepare individual orders and share sales data with vendors to improve customer service.
  • C. Vendors use sales data and prepare shipments to maintain the desired level of inventory.
  • D. Vendors take full control of inventory policy.

Answer: C

NEW QUESTION 8
A company that desires to implement a strategy for inventory management must define which of the following factors?

  • A. Reliability and maintainability requirements
  • B. Variability in the customer demand
  • C. Overall item effectiveness
  • D. Inventory carrying costs

Answer: B

NEW QUESTION 9
A procurement manager wants to reduce costs on commodity items. Which of the following actions is likely to result in the greatest savings?

  • A. Conducting a supplier review and recertification
  • B. Renegotiating contracts with commodity suppliers
  • C. Standardizing and eliminating redundant items
  • D. Leveraging group purchasing power

Answer: D

NEW QUESTION 10
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 11
An operations manager wants to measure variability in the delivery time of insurance policies to clients. Which of the following quality tools most appropriately would show the level of variability?

  • A. Pareto chart
  • B. Histogram
  • C. Scatterplot
  • D. Check sheet

Answer: B

NEW QUESTION 12
A company understates current revenue forecasts and delays the delivery of orders to meet the forecast. The most likely result of this practice is that shipments will peak:

  • A. at the beginning of reporting periods.
  • B. randomly throughout reporting periods.
  • C. at both the beginning and end of reporting periods.
  • D. at the end of reporting periods.

Answer: A

NEW QUESTION 13
How does a mass customization product design strategy relate to component commonality, modular design, and product universality?

  • A. Modular design is necessary for mass customization.
  • B. Component commonality does not support mass customization.
  • C. Universality is a prerequisite for mass customization strategy.
  • D. Both universality and modular design are required for mass customization.

Answer: A

NEW QUESTION 14
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.

Answer: D

NEW QUESTION 15
A retailer sets service-level targets intended to maximize total profit. The retailer's service level target should be highest for items with a high profit margin and:

  • A. low variability of demand.
  • B. made to stock.
  • C. small replenishment lot size.
  • D. made to order.

Answer: A

NEW QUESTION 16
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 17
A company that locates manufacturing facilities in different countries so that an economic downturn in one country most likely will be offset by business in another country is employing what type of strategy?

  • A. Speculative
  • B. Hedge
  • C. Flexible
  • D. Forecast

Answer: B

NEW QUESTION 18
Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?

  • A. Use a more rapid transportation mode.
  • B. Increase safety stock.
  • C. Extend product warranty.
  • D. Employ lean principles.

Answer: D

NEW QUESTION 19
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 20
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

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