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NEW QUESTION 1
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 2
Which of the following actions by trading partners is most likely to reduce the goods that will be processed by the reverse supply chain?
- A. Contracting with a third party to process returned goods
- B. Designing products that are easy to disassemble
- C. Working to delay regulations that require accepting returns
- D. Providing support and service that meet customer needs
Answer: D
NEW QUESTION 3
One operation in a four-stage process has been producing more than required and is causing elevated levels of work in process. Which of the following approaches would be most appropriate to address the situation?
- A. Kano
- B. Kanban
- C. Kaizen
- D. Keiretsu
Answer: B
NEW QUESTION 4
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 5
Which of the following procurement strategies is most appropriate for a high-risk, high- value item?
- A. Procuring in bulk to take advantage of volume pricing
- B. Using an electronic trading platform to source items securely
- C. Entering into vendor managed inventory (VMI) agreement
- D. Creating a close collaborative relationship with the supplier
Answer: D
NEW QUESTION 6
Horizontal and vertical exchanges of secure data among supply chain partners are facilitated best by:
- A. the intranet.
- B. a portal.
- C. a Web site.
- D. e-mail.
Answer: B
NEW QUESTION 7
The purpose of continuous improvement in the supply chain is to:
- A. eliminate the root causes of problems.
- B. improve interorganizational communication.
- C. develop better written procedures.
- D. reduce product costs.
Answer: A
NEW QUESTION 8
A firm has determined its cash-to-cash cycle time to be 60 days. The number of days' payables outstanding is 25, and number of days' sales outstanding is 35. If the firm reduces its inventory by 20%, the new cash-to-cash cycle time, in days, will be approximately:
- A. 48.
- B. 50.
- C. 60.
- D. 88.
Answer: B
NEW QUESTION 9
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 10
Which of the following statements indicates an attribute of international commercial terms (Incoterms)?
- A. They are required contract terms for international trade.
- B. Each term implies the responsibilities of the buyer and seller.
- C. Discounts and surcharges are identified by the terms.
- D. The terms are reviewed annually by the International Chamber of Commerce.
Answer: B
NEW QUESTION 11
Which of the following warehousing tools enables wireless scanning of products?
- A. Magnetic stripes
- B. Universal product codes
- C. Radio frequency devices
- D. Local area network
Answer: C
NEW QUESTION 12
Which of the following actions best exemplifies an appropriate demand management
strategy?
- A. Reducing costs in the procurement of goods
- B. Prioritizing demand when supply is constrained
- C. Maximizing sales orders from customers
- D. Updating the sales and operations planning (S&OP) to changes in production capacity
Answer: B
NEW QUESTION 13
Benchmarking a firm's performance against industry competitors is most valuable because it can reveal:
- A. a competitor's manufacturing processes.
- B. a firm's leadership ranking relative to industry peers.
- C. which processes require improvement.
- D. that no further improvement is possible.
Answer: C
NEW QUESTION 14
Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange?
- A. Expensive material that is critical to the finished good
- B. Expensive material for which there are several substitutes
- C. Inexpensive material that is critical to the finished good
- D. Inexpensive material for which there are many sources
Answer: D
NEW QUESTION 15
A manufacturer has direct relationships with its tier 1 suppliers. Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?
- A. Provides smaller lot sizes
- B. Provides components with short lead times
- C. Provides Just in Time deliveries
- D. Provides information about impending shifts in the economy
Answer: D
NEW QUESTION 16
Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?
- A. Inventory turnover ratio can be reduced.
- B. Aggregate demand is more accurate than disaggregate demand.
- C. The planning time fence can be adjusted as needed.
- D. The supplier shares some risk for holding inventory.
Answer: B
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