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NEW QUESTION 1
Which of the following considerations is an important supply chain design decision?
- A. Product design
- B. Selecting supporting information systems
- C. Identifying labor force requirements
- D. Identifying training programs
Answer: B
NEW QUESTION 2
Which of the following types of supply chains is characterized by difficulty in responding to rapidly changing demand patterns?
- A. Push-based
- B. Pull-based
- C. Innovative
- D. Collaborative
Answer: A
NEW QUESTION 3
Which of the following manufacturing strategies typically generates the lowest supply chain inventory?
- A. Make to Stock
- B. Assemble to Order
- C. Make to Order
- D. Engineer to Order
Answer: D
NEW QUESTION 4
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 5
The primary contribution from an enterprise resources planning system in building supply chain capability is:
- A. real-time manufacturing planning.
- B. improved decision making.
- C. ease of implementation.
- D. timely order tracking.
Answer: B
NEW QUESTION 6
The implementation of major enterprise-wide changes to eliminate or significantly reduce waste is related to which of the following concepts?
- A. Kaizen
- B. Kanban
- C. Six Sigma
- D. Lean
Answer: D
NEW QUESTION 7
In an advanced planning system, which of the following modules feeds the master planning module?
- A. Purchasing planning
- B. Demand planning
- C. Distribution planning
- D. Fulfillment planning
Answer: B
NEW QUESTION 8
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 9
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 10
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 11
A company closely monitors supplier performance and notices recent late deliveries from one supplier. The supplier discloses flood damage at the plant. The company quickly shifts sourcing to a new supplier and has minimal loss of sales. Which of the following risk strategies reflects the company's actions?
- A. Achieving low cost through reaction
- B. Creating an adaptive supply chain community
- C. Reducing supply chain vulnerability
- D. Investing in redundancy
Answer: B
NEW QUESTION 12
The employees at a convenience store are trained to ask customers purchasing snack foods whether they also would like to purchase a beverage. This situation is an example of:
- A. cross-selling.
- B. customer service.
- C. product marketing.
- D. selling an upgrade.
Answer: :A
NEW QUESTION 13
A company has outsourced a high volume of assembly work to top-tier suppliers, thereby reducing the overall number of suppliers they directly manage. Which of the following actions must the company perform to mitigate risk?
- A. Monitor lead times at sub-tier suppliers
- B. Maintain direct relationships with sub-tier suppliers
- C. Execute all terms of contracts at sub-tier suppliers
- D. Purchase all critical components for assembly at the company
Answer: B
NEW QUESTION 14
When doing international business, a company's total line-haul costs will vary with the:
- A. weight shipped.
- B. distance shipped.
- C. pallets shipped.
- D. volume shipped.
Answer: B
NEW QUESTION 15
Which of the following activities is the most appropriate use of an advanced planning and scheduling system?
- A. Selecting the target market for a product
- B. Optimizing transportation routes
- C. Creating a daily demand forecast
- D. Identifying constraints within a facility
Answer: D
NEW QUESTION 16
In an assemble-to-order manufacturing environment, the master production schedule is
typically the schedule of:
- A. resources.
- B. customer orders.
- C. components and subassemblies.
- D. the final assembly.
Answer: C
NEW QUESTION 17
A company has recently implemented a vendor-managed inventory (VMI) program with several key suppliers but quality issues are disrupting production. Which of the following actions would be more effective in dealing with these issues?
- A. Tighten the quality tolerances
- B. Implement a supplier certification program
- C. Implement quality inspection at the receiving dock
- D. Charge back to the supplier the rework and scrap costs
Answer: B
NEW QUESTION 18
Implementation of supplier relationship management is most successful when a company emphasizes which of the following two factors?
- A. Cost reduction and product design
- B. Quality and partnerships
- C. Technology and productivity
- D. Capital investments and global expansion
Answer: B
NEW QUESTION 19
Potential customers of a company's new product have tight tolerance requirements. The
company plans to purchase a critical component. To meet customer requirements, the company should first:
- A. implement statistical process control for the component.
- B. bring manufacturing of the critical component in-house.
- C. develop an alternate source of supply.
- D. certify the supplier of the component.
Answer: D
NEW QUESTION 20
A company handling sale of product discarded by consumers is what type of provider?
- A. Third party logistics (3PL)
- B. Reverse logistics
- C. Fourth party logistics (4PL)
- D. Warehousing
Answer: B
NEW QUESTION 21
Compared to the traditional enterprise resources planning (ERP) system, an electronic business system (EBS) is preferred for today's e-business solution because EBS:
- A. is more flexible and functional.
- B. is the backbone of outsourcing services.
- C. has converged with Web-based applications to form a grouping of business software functions.
- D. encompasses e-procurement as a traditional purchasing function.
Answer: C
NEW QUESTION 22
A master production schedule serves a company best by functioning as a:
- A. dispatch list.
- B. forecast system buffer.
- C. priority planning tool.
- D. supplier scheduling system.
Answer: C
NEW QUESTION 23
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 24
A company that sells direct to industrial and commercial businesses has become successful by being responsive to the needs of its customers. The company currently produces in each country all of the products it sells in that country. Several countries in which the company operates have negotiated an agreement to establish a trading bloc. Which of the following actions by the company would be most appropriate if the agreement is implemented?
- A. Consolidate production outside the trading bloc to reduce total costs.
- B. Consolidate production within the trading bloc to reduce tariffs paid.
- C. Outsource the production of products with low sales volumes to reallocate capacity.
- D. Reassign products so that each is produced in a single facility within the trading bloc to get economies of scale.
Answer: D
NEW QUESTION 25
An office furniture manufacturer observed that customers preferred to configure desks based on their available office space. To keep product costs to a minimum, yet satisfy
customer needs, the company should choose which of the following design strategies?
- A. Modularity
- B. Component commonality
- C. Mass customization
- D. Standardization
Answer: A
NEW QUESTION 26
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: BExplanation:NEWQUESTIONS
NEW QUESTION 27
Which of the following activities is forbidden in a foreign trade zone?
- A. Remarking or repackaging imports to avoid fines
- B. Breaking up large shipments to reduce import duties
- C. Reexporting goods without paying duties
- D. Conducting retail trade
Answer: D
NEW QUESTION 28
Component commonality in manufacturing primarily allows a company to:
- A. optimize production runs for the components.
- B. use less-specialized machinery.
- C. decrease single-minute exchange of die processes.
- D. increase planning and control.
Answer: A
NEW QUESTION 29
Which of the following tradeoffs should be considered when selecting logistics options?
- A. Safety stock levels and customer service levels
- B. Inventory levels and scheduling operations
- C. Transportation cost and speed of delivery
- D. Centralized and decentralized distribution network
Answer: C
NEW QUESTION 30
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