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NEW QUESTION 1
Which of the following behaviors is appropriate for a progressive company that is responding to changes in its supply chain?
- A. Pursuing cost reduction continuously
- B. Developing multiple supply chains for different product lines
- C. Ensuring demand before committing to a change in the supply chain
- D. Designing products for maximum lifetime
Answer: B
NEW QUESTION 2
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 3
Which of the following metrics is the most appropriate measure of supply chain responsiveness?
- A. Order fulfillment lead times
- B. Percentage of orders delivered on time
- C. Retail inventory days of supply
- D. Upside production flexibility
Answer: D
NEW QUESTION 4
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 5
Which of the following conditions are most indicative of a company that is effectively managing its cash?
- A. Low accounts receivable, low inventory, high accounts payable
- B. High accounts receivable, low inventory, high accounts payable
- C. Low accounts receivable , high inventory, low accounts payable
- D. High accounts receivable, high inventory, low accounts payable
Answer: A
NEW QUESTION 6
A company that has consistently achieved a high level of on-time delivery performance has decided to reduce its inventory level significantly. Which of the following outcomes is the most likely effect of that decision on the company's on time delivery performance?
- A. There will be no effect.
- B. It will decline and then stabilize at a lower level.
- C. It will improve and then stabilize at a higher level.
- D. It will decline until sales erode.
Answer: B
NEW QUESTION 7
Top management typically plans an organization's long-term future by isolating new opportunities and threats and identifying growth objectives during the process known as:
- A. resource planning.
- B. sales and operations planning.
- C. corporate strategizing.
- D. financial planning.
Answer: C
NEW QUESTION 8
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 9
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 10
Use of a private warehouse is most appropriate when a firm needs to:
- A. adjust warehouse capacity easily for seasonal products.
- B. perform a limited number of specialized activities for customers.
- C. control operating policies and hours to respond to changes in market demand.
- D. take advantage of economies of scale and scope to increase profitability.
Answer: C
NEW QUESTION 11
What is the primary benefit of using modular rather than integral designs?
- A. Lower cost of manufacturing
- B. Increased product performance
- C. Greater responsiveness in marketing and production
- D. Reduced complexity of bills of material
Answer: C
NEW QUESTION 12
The process used to determine the impact of promotions, price discounts, and rebates on demand forecasts commonly is referred to as demand:
- A. planning.
- B. forecasting.
- C. aggregating.
- D. shaping.
Answer: D
NEW QUESTION 13
Which of the following marketing strategies emphasizes offering services at a lower price than rival services with comparable features?
- A. Cost leadership
- B. Service differentiation
- C. Customer focus
- D. Market responsiveness
Answer: A
NEW QUESTION 14
Which of the following forecasting methods relies on the opinions of a panel of experts?
- A. Delphi technique
- B. Survey method
- C. Causal method
- D. Time series analysis
Answer: A
NEW QUESTION 15
A manufacturer uses standard costing, and a potential supplier uses activity-based costing. This difference most likely will have implications for which of the following types of future decisions?
- A. Price concessions
- B. Make-or-buy
- C. Distribution warehouse locations
- D. Freight terms
Answer: B
NEW QUESTION 16
A company wants to implement a system for managing environmental compliance with legislative and regulatory requirements. Which of the following sustainability tools is most appropriate?
- A. ISO 14000
- B. Global Reporting Initiative (GRI)
- C. ISO 26000
- D. UN Global Compact
Answer: A
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