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The question below is based on the following flowchart:

Which of the following phrases most accurately describes the complete flow of demand
information?

 A. From supplier to customer

 B. From customer to manufacturer
 C. From customer to supplier
 D. From supplier to manufacturer

The focus of collaborative supply chain management differs from a transactional

approach by its emphasis on the:

 A. transportation of goods to the next link in the chain.

 B. flow of product information up to the next level of the chain.
 C. flow of demand information and cash up the chain.
 D. flow of supply into an organization

Which of the following scenarios represents a correct application of the Supply-Chain

Operations Reference-model (SCOR)?

 A. Sales and marketing refers to SCOR to improve demand generation.

 B. Production and engineering uses SCOR best practices to design a new
"make" process flow.
 C. Distribution and logistics selects suppliers from the SCOR reference list.
  D. Marketing and development incorporates SCOR Level I metrics for new
product design.

The primary objective of supply chain management is:

 A. minimizing transportation costs.

 B. reducing inventory levels.
 C. taking a systems approach.
 D. implementing advanced technologies.

Which of the following levels in a supply chain network represents the most upstream
external activity?

 A. Supplier to contractor
 B. Manufacturing to supplier
 C. Customer to distribution
 D. Customer to contractor

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

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.

Which of the following factors typically is the most significant impediment to

implementing collaborative commerce?

 A. Technology barriers
 B. Security
 C. Corporate culture
 D. Return on investment (ROI)

Compared to a global strategy, a multicountry strategy would be characterized by:

  A. strategy coordination across countries.
 B. preferred suppliers located in host countries.
 C. major strategic decisions coordinated centrally.
 D. products adapted to local needs.

Which of the following corporate strategies is most consistent with a flexible supply
chain strategy?

 A. Being the low-price leader

 B. Providing the highest-quality service
 C. Providing mature products with stable sales
 D. Emphasizing the quality of the product

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

When designing a supply chain for strategic advantage, a company first should
consider:

 A. the impact on customers using Just-in-Time manufacturing.

 B. the financial stability of suppliers.
 C. matching the supply chain to product type.
 D. whether to use custom or standard parts.

Supply chains delivering products or services are most able to respond quickly to
changing market requirements when:

 A. products have been standardized.

 B. products have a modular design.
 C. production processes have been standardized.
 D. production processes have been simplified.

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.

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.

After identifying the potential causes for delays in communicating demand information
up the supply chain, the trading partners should take which of the following actions?

 A. Implement a higher-speed data communications network.

 B. Change procedures so data is communicated more frequently.
 C. Identify the root causes for the delays.
 D. Map and analyze the value stream

Which of the following situations is an example of postponement?

 A. Shipments are broken down into small groups for reshipment.

 B. Shipments are consolidated immediately for reshipment.
 C. Production begins after a customer order is received.
 D. Partially assembled goods are assembled at a later stage.

Which of the following situations is an example of inventory being held as a way to

balance supply and demand?

 A. A manufacturer holds inventory of key components to maintain a level

production schedule.
 B. A manufacturer of seasonal products builds finished-goods inventory before
the peak selling period.
 C. A distributor maintains safety stock of slow-moving items at a central
distribution center.
 D. A retailer stocks a variety of sizes and colors of a fast-selling item to avoid
losing sales

A company's annual cost of goods sold is $350 million, and inventory carrying cost is
18%. The company averages four inventory turns. The cost savings resulting from
increasing inventory turns from four to six would be:

 A. $29,000,000.
 B. $15,750,000.
 C. $10,500,000.
  D. $ 5,250,000.

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

The factors to consider in the make-or-buy decision include costs, proprietary

knowledge, and:

 A. design history.
 B. available capacity.
 C. inventory balance.
 D. warehouse location

Using an independent service provider for logistics would be most appropriate in which
of the following situations?

 A. A shoe company that wants to penetrate a foreign market

 B. A business that owns plants and warehouses globally
 C. A financial services company that wants to expand its services
 D. A cable television company that wants to add services

The most likely benefit of implementing a collaborative transportation management

system (TMS) is:

 A. lower distribution center (DC) operating costs.

 B. fewer transportation planners.
 C. less variability in picking and packing time.
 D. less variability in transportation costs.

Which of the following attributes typically makes reverse logistics processes more
complicated than outbound logistics processes?

 A. Lead times for shipments are more variable.

 B. Individual packages and cartons are less uniform.
 C. There are more regulations mandated by local governments.
 D. There is more competition for scarce transportation lanes.
A remanufacturer of equipment is most likely to have what type of supply chain?

 A. Modular logistics
 B. Reverse logistics
 C. Mixed model
 D. Lateral

A firm wants to lose customers that don't value the unique products and services the
firm offers and to attract and retain customers that want what the firm offers.
Engaging in this activity should allow the firm to:

 A. create a more loyal customer base.

 B. improve customer satisfaction rates.
 C. increase market share.
 D. target higher-profit customers

A firm has identified groups of customers based on specific characteristics the

customers desire from products and services the firm can provide. Characteristics
include lead times, pricing tiers, and service levels. The firm is engaged in which of the
following activities?

 A. Customer differentiation
 B. Order winner segregation
 C. Market segmentation
 D. Channel definition

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

A manufacturer of plastic components that are sold either directly or through distributors
wants to identify the requirements of the end customers for each market segment.
Which of the following approaches would be most appropriate?

 A. Analyzing the buying history for each of the market segments

 B. Asking the manufacturer's direct customers
  C. Conducting a market research project
 D. Sending samples of potential future products to the final customers

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.

A manufacturer can simplify the forecasting process by pooling demand forecasts for a
product group and then:

 A. averaging total demand and spreading it evenly across all items.

 B. disaggregating demand to the item level based on marketing input.
 C. disaggregating demand to the item level based on historical proportions.
 D. allocating demand to each production site

Which of the following types of information would be an appropriate basis for a

qualitative forecast?

 A. Leading indicators
 B. Regression analysis
 C. Order history
 D. Shipment history

Which of the following types of information would be an appropriate basis for a

qualitative forecast?

 A. Leading indicators
 B. Regression analysis
 C. Order history
 D. Shipment history

The use of a seasonal index as a forecasting technique measures the ratio of the:

 A. average seasonal demand to the average demand for all periods.

 B. average demand for all periods to the average seasonal demand.
 C. average seasonal demand to the standard deviation of the demand for all
periods.
  D. standard deviation of the seasonal demand to the standard deviation of
demand for all periods.

Medium-term demand management projections are used primarily to:

 A. complete strategic business planning of facilities.

 B. complete forecasts at the item level.
 C. aggregate demand for production planning.
 D. develop the master production schedule.

Which of the following strategies is used primarily for demand planning?

 A. Build-to-order scheduling
 B. Push-pull replenishment
 C. Collaborative planning, forecasting, and replenishment
 D. Vendor-managed inventory

In addition to sales history, current customer orders, and forecasted demand, which of
the following data sources should be used as part of a demand management process?

 A. Inventory levels
 B. Contractual obligations
 C. Customer profitability
 D. Scheduled marketing activities

Demand management involves which of the following undertakings?

 A. Adjusting capacity to support expected demand

 B. Engaging in activities associated with customer relationship management
 C. Creating higher customer demand by improving performance in areas such as
lead time and service levels
 D. Understanding events and managing activities that could influence future
demand

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

What is the primary role of marketing in supporting supply chain management?

  A. Selecting favored supplier partners
 B. Developing efficient customer channels
 C. Focusing on short-term forecasting accuracy
 D. Working with research and development on slow-moving products

Which of the following practices has improved management of the customer pipeline?

 A. Reverse auctions
 B. Sales force automation
 C. Finite capacity planning
 D. Point-of-purchase metrics

The probability of customer dissatisfaction is highest when which of the following

conditions exists?

 A. Customer expectations are clearly defined.

 B. Supplier execution is too low.
 C. There is a gap between expected performance and perceived performance.
 D. There is a gap between what was indicated and what was accomplished

Which of the following actions typically would be the first step in implementing the philosophy of
customer relationship management?

 A. Creating a customer-centric organization

 B. Developing a map of the customer segments
 C. Documenting the objectives for implementation
 D. Selecting an information technology solution

Which of the following customer relationship management activities most appropriately is used for
revenue generation?

 A. Generating customer leads

 B. Generating graphic sales models
 C. Measuring customer preferences
 D. Identifying customer margins

Compared to mass-media marketing, customer relationship management has the advantage of

allowing the organization to:

 A. compete for customers based on service.

  B. reach a larger number of potential customers.
 C. reduce inventory to improve cash flow.
 D. focus on attracting new customers.

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

Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by:

 A. efficient material replenishment processes.

 B. clearly identified roles for the buyer and seller.
 C. a shared vision of added value.
 D. a sole-source agreement.

Incorporating supplier input into product and process design helps to:

 A. maintain quality.
 B. stabilize product costs.
 C. reduce time to market.
 D. save costs to the buyer.

A media company offers a majority of its movies through a specific distributor. The media
company is beginning to produce content for a new foreign market to which the distributor has
exclusive access. To maximize savings and gain entry to this new market, the media company
should:

 A. create a contract for the new market.

 B. enter into a partnership.
 C. form a strategic alliance.
 D. acquire the distributor.

A company considers outsourcing its information technology support to a low-cost region on

another continent. The company currently has no business presence there. Which of the following
actions is most effective in helping to select a service provider?
  A. Contacting the country's consulate for leads
 B. Contacting the country's local government for recommendations
 C. Visiting several potential providers before making a selection
 D. Finding a trusted local business agent to help in the search

Which of the following benefits of supplier relationship management typically results from
collaboration with a few critical suppliers?

 A. Automation of supplier sales activities

 B. Elimination of formal contracts
 C. Reduction in customer and supplier inventories
 D. Standardization of communications

Which of the following organizational design choices is an example of vertical integration?

 A. Contracting with a third-party logistics provider

 B. Producing components used internally
 C. Externally staffing a customer service center
 D. Awarding a one-time trade show contract

A company that produces standardized products and sells them through retailers via a responsive
transportation system has decided to expand its sales with an online store for customized
products. Which of the following distribution strategies would be the most appropriate for the
business-strategy change?

 A. Local distribution centers serving retailers and online sales

 B. Centralized cross-docking facilities serving retailers and online sales
 C. A centralized distribution center serving retailers and direct shipment from the factory
serving online sales
 D. A centralized distribution center serving retailers with transshipment arrangements
serving online sales

A company manufactures special products for select customers. When demand for these products
drops, the manufacturer can switch the production line to a commodity-type product that can be
sold on the open market at reduced terms to generate cash. The company is executing a corporate
strategy that is based on:

 A. customer focus and alignment.

  B. forecast accuracy.
 C. multiple downstream channels.
 D. multiple upstream supply chains.

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.

Reverse supply chain activity typically peaks nearest the beginning of which of the following stages
of the product life cycle?

 A. Introduction
 B. Growth
 C. Maturity
 D. Decline

Which of the following actions typically would be considered part of a reverse logistics strategy?

 A. Offering a discount on new purchases when used products are returned

 B. Reducing the amount of packaging material used in shipping
 C. Manufacturing products in batches consistent with full-truckload shipments
 D. Batching returns of defective components to the suppliers

A firm supplies products and services to a wide variety of industries with varying requirements for
responsiveness and reliability. Many customers across these industries are not satisfied with the
firm's ability to meet the lead time and on time delivery requirements. Which of the following tools
is most appropriate for the firm to use to improve customer service?

 A. Customer service ratio metrics

 B. Market segmentation
 C. Customer relationship management (CRM)
 D. Supply Chain Operations Reference (SCORֲ®)
A company plans to maximize profitability by charging more for its products at retail locations than
on its website. Which of the following segmentation strategies would best support this plan?

 A. Group
 B. Channel
 C. Regional
 D. Location

Which of the following is the most important result when a company implements customer
relationship management?

 A. Profits are maximized.

 B. Retention of key customers is increased.
 C. Product options are increased.
 D. Transaction costs are decreased.

Maintaining a long-term collaborative relationship with a trading partner requires:

 A. formal and informal communication.

 B. interconnected information systems.
 C. one partner regularly exercising power.
 D. standardized terms of agreement.

Which of the following consequences is a result of shipping directly from the point of manufacture
to the customer rather than through a distribution network?

 A. Delivery lead times are consistent.

 B. Risk pooling benefits are negated.
 C. Distribution overhead is increased.
 D. Order-fill rate is decreased.

Which of the following results can be expected from sharing a common understanding of demand
and consumption patterns among supply chain participants?

 A. Improved transparency of collaboration relationships

 B. Increased performance in balanced scorecard
 C. Reduced inventory levels for key items
  D. Better synchronization of planning and operations

An advantage of using a third-party logistics service (3PL) is improved:

 A. on-time delivery of shipments due to higher inventory levels.

 B. cost structure due to economies of scale.
 C. access to smaller markets due to localization.
 D. risk visibility due to inventory consolidation.

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.

A company's decision to charge different prices for the same service sold in different market
segments is most likely based on which of the following metrics?

 A. Internal rate of return (IRR)

 B. Lifetime customer value (LCV)
 C. Net present value (NPV)
 D. Return on investment (ROI)

Which of the following outcomes is a benefit typically expected of customer relationship

management (CRM)?

 A. Reducing the size of the sales force by automating activities

 B. Gaining a better understanding of customer requirements
 C. Implementing automated inter-organizational processes
 D. Focusing sales efforts on the most profitable customers

A main benefit of using customer relationship management (CRM) is:

  A. maximization of on-time delivery.
 B. minimization of product returns.
 C. identification of customers with high lifetime value.
 D. finding new markets for existing products and services.

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

 A. Production equipment productivity

 B. Net asset turns
 C. Value-added productivity per employee
 D. Upside flexibility

The main benefit of a mass customization product design strategy is to:

 A. sell high quantities of product to specific customer segments.

 B. achieve economies of scale in purchasing components.
 C. offer more product variety while keeping inventories low.
 D. avoid assembly of finished products.

Keeping all other factors equal, a company typically will try to maintain higher service levels for
products with:

 A. wider variety.
 B. shorter lead time.
 C. higher profit margins.
 D. lower sales volumes.

A large manufacturer wanting to be more competitive in the global market place decided to
outsource its transportation and return processing to other companies on a contractual basis. The
companies providing the services would be referred to as:

 A. fourth party logistics providers.

 B. third party logistics providers.
 C. retail services providers.
 D. distribution services providers.
Companies are more likely to consider the consequences of their product design decisions when
they view the reverse supply chain as an extension of the:

 A. forward supply chain.

 B. marketing process.
 C. manufacturing process.
 D. sales and operations planning process.

The primary reason for a firm to pursue strategic supply chain activities is to:

 A. gain competitive advantage.

 B. reduce costs.
 C. increase productivity.
 D. decrease product lead time.

A firm supplies a single line of products to consumers using retail stores and on-line sales,
distributors, and wholesalers. Currently the firm has common pricing and response times for sales
in each sales channel. Which of the following tools is most appropriate to employ to improve
profitability?

 A. Customer segmentation
 B. Customer-facing ordering systems
 C. Customer relationship management (CRM)
 D. Supply Chain Operations Reference (SCORֲ®)

A company has been delivering a global product that no longer appears profitable. Senior
management's best response is to:

 A. analyze product profitability by market segment.

 B. discontinue the product based on eroding profitability.
 C. provide additional incentives to the sales force.
 D. increase promotional activity across all markets.

Which of the following statements represents a major assumption needed to effectively use days
of supply as a measure?

 A. The reorder point for the inventory has been calculated correctly.
  B. The forecast for the item usage is reasonably accurate.
 C. The item is in the growth phase of the product life cycle.
 D. The item is subjected to statistical process control (SPC) during production.

Attaching a fuel tank cap to a fuel tank door on a car is an example of which of the following lean
techniques?

 A. Five Ss
 B. Five whys
 C. Poka-yoke
 D. Kaizen 

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.

A primary objective of a lean enterprise is to:

 A. analyze and focus the value stream along all functions to maximize value for the
ultimate customer.
 B. employ people who have enhanced abilities to learn and adapt to the corporate culture.
 C. continuously improve processes and procedures to maintain a level production
schedule.
 D. create value for its suppliers by incorporating lean manufacturing principles into a
supplier certification process.

Cost reduction, improvement of company focus, and freeing assets from noncore activities are
among the results achieved through effective implementation of:

 A. supply chain management.

 B. service supplier management.
  C. collaboration.
 D. outsourcing. 

Which of the following methods is used to minimize the bullwhip effect?

 A. Outsourcing noncore business activities

 B. Reducing the number of stock keeping units (SKUs)
 C. Reducing lead time
 D. Increasing factory inventory

Requirements for successful application of a demand-driven supply network include:

 A. demand synchronization between stakeholders.

 B. automatic communications of data from point-of-sale (POS) terminals.
 C. safety stock determined jointly by suppliers and customers.
 D. supply provided by a single source.

In the analysis of costs, fixed costs are those that are:

 A. independent of the volume of output.

 B. dependent on the utilization of the asset.
 C. inversely proportionate to the volume of output.
 D. constant through the useful life of the asset.

Which of the following actions by a group of trading partners is most likely to quickly improve their
economic performance?

 A. Developing a comprehensive product and service strategy

 B. Implementing collaborative interorganizational systems
 C. Outsourcing interorganizational business processes
 D. Redesigning product packaging to reduce volume and weight

One key factor to consider when selecting suppliers for their potential to sustain long-term,
mutually profitable relationships is:

 A. landed cost.
 B. quality metrics.
 C. operational performance.
  D. financial viability.

A high level of which of the following attributes is considered to be undesirable in a supply chain?

 A. Velocity
 B. Variability
 C. Visibility
 D. Variety

Which of the following measures best describes fill rate?

 A. Ratio of available inventory to cost of goods sold (COGS)

 B. Ratio of cost of goods sold to available inventory
 C. Percentage of demand satisfied by available inventory
 D. Percentage of closed orders to total orders

Question #88Topic 1
Which of the following statements regarding transportation negotiation is correct?

 A. The lowest possible cost for transportation is the lowest total cost of logistics.
 B. The lowest possible rate must be consistent with the level of service required.
 C. The key to effective negotiation is to maximize distributor profitability.
 D. The key to building solid career relationships is the acceptance of a carrier's
rate.

Question #89Topic 1
Which of the following practices allows each process to operate at maximum efficiency
rather than having the speed of the entire process constrained by the slowest
operation?

 A. Theory of constrains (TOC)

 B. Supply/demand balancing
 C. Decoupling
 D. Pull production

Decoupling allows economy of scale within a single facility and permits each process to
operate at maximum efficiency rather than having the speed of the entire process
constrained by the slowest.
Question #90Topic 1
Which of the following relationship activities is most impacted by a lack of trading
partner trust?
  A. Collaboration
 B. Coordination
 C. Cooperation
 D. Communication

A lack of trust among trading partners often creates a condition where every
transaction has to be scrutinized and verified, thereby increasing the transaction
costs to an unacceptably high level. Productivity is lost and efficiency and
effectiveness, cornerstones of supply chain goals, will be compromised. Creating
value-added activities with such partners becomes almost impossible and the
supply chain tools used to improve efficiency, effectiveness and productivity
(such as vendor- managed inventory (VMI), cross-docking (CD), and
collaborative forecasting, planning and replenishment (CFPR)) eventually
become ineffective. Under the less than open-trust conditions, decision makers
often spend their time mostly on analyzing their trading partner's credibility,
reliability and trustworthiness, rather than optimizing their operations. Although
there are studies focusing on the relationship between related variables and the
level of trust, there is a lack of empirical studies that examine the relationship
between trust and the ultimate facilitator of supply chain success, commitment.
This study attempts to bridge the gap in supply chain management.

 Question #91Topic 1
 A role-based entry into a company's system that aggregates all required sources
of information into a single environment is known as:

 A. a portal.

 B. a hub.

 C. a local area network (LAN).

 D. an extranet.

I think the answer should be A. Portal definition on page 2 -380 of the ASCM
learning system: " a multiservice website that provides access to data that may be
secured by each user's role. Users can aggregate data and perform basic
analysis." I can't find anthing about a "hub."

Correct Answer should be A as company based system are in most cases portal
rather than hub.

Question #92Topic 1
Enterprise resources planning (ERP) is defined as a:
  A. framework for organizing, defining, and standardizing business processes to
use its internal knowledge to seek external advantage.
 B. production control system that determines priorities of in-process work.
 C. software module used to determine whether sufficient capacity is available to
ship customer orders on time.
 D. process whereby sales, marketing, and operations determine what products
will be sold and what resources will be required for production.

Reference:
https://www.aptean.com/en-US/insights/blog/erp-system-definition

Question #93Topic 1
The use of break-bulk warehouses allows for reduced transportation costs by receiving:

 A. large shipments and arranging for distribution to locations as smaller

shipments.
 B. sorting multiple receipts for outgoing shipments based on final destination.
 C. converting individual pallets of goods into truckloads (TLs).
 D. staging products for delayed delivery to customers.

Reference:
https://iimm.org/wp-content/uploads/2019/12/Logistics-and-Warehousing-
Management.pdf
(115, 116)

Question #94Topic 1
The purpose of Incotermsֲ® is to establish common:

 A. software system terminology between supply chain partners.

 B. contracts for trade within the supply chain.
 C. company communication channels within the supply chain.
 D. quality measures for use in the supply chain.

Reference:
https://www.investopedia.com/terms/i/incoterms.asp

Question #95Topic 1
Which of the following statements about warehouse layout and storage is correct?

 A. Product weight is the major factor driving warehouse layout.

 B. Products with low volume are typically placed at the lower level in storage
racks.
 C. Warehouses that utilize fixed locations storage typically minimize space
requirements.
  D. A typical warehouse is engaged in a combination of short term and extended
storage alternatives.

Question #96Topic 1
Replacing a raw material in a manufacturing process with an alternate material that
reduces emissions is an example of using:

 A. the global reporting initiative (GRI).

 B. recycling.
 C. rework.
 D. life cycle assessment (LCA). Most Voted
??? :v
I think that replacing a raw material with one that is more eco-friendly would fall
under the GRI.
this should be A as it relates to sustainability
recycling is not introducing alternate material into the manufacturing process.... it
could be extraction of certain items and transforming a product after traditional
manufacturing. None of these answers make sense
Reprocessing to salvage a defective item or part is Rework not Recycling

Question #97Topic 1
When determining lot sizes, consideration should be given to balancing which of the
following costs?

 A. Quality costs and product costs

 B. Cost of goods sold (COGS) and indirect labor costs
 C. Unit sales price and unit cost
 D. Ordering costs and carrying costs

The answer should be D. "In short, the EOQ is the order size that gives yo the
lowest total cost for carrying cost and ordering (set up) costs. There's a need to
balance these costs, because carrying costs tend to go up with larger order
quantities while ordering costs tend to go down, since they respond to
economies of scale."

Question #98Topic 1
Which of the following documents includes the valuation of goods for assessment of
duties?

 A. Insurance certificate
 B. Export declaration
  C. Bill of landing (B/L)
 D. Commercial invoice

The commercial invoice states the value of the goods in the shipment and specifies
payment terms and methods. It constitutes the seller's and buyer's invoice for the
transaction. It also may be required for the letter of credit and by other entities that need
to know the value of the goods for insurance or the assessment of duties. The
information required and the language it's written in may vary from country to country.
Question #99Topic 1
A group of trading partners that produce and distributes supplies to commercial and
industrial customers has decided to pursue competitive advantage by being responsive
to customers' needs. The most appropriate positioning of safety stock to support this
initiative would be at:

 A. a central warehouse for each market segment.

 B. the distribution centers (DCs) closest to the customers.
 C. each node in the distribution channel.
 D. each production facility.

closest to customers should be for responsiveness so I chose B.

I agree it should be B "DCs closest to the customer"
Why wouldn't this be DCs closest to the customer? I think answer is B
Question #100Topic 1
A company has significant cash invested in its finished goods inventories. What action
can this company take to significantly reduce its inventory investment while maintaining
its customer service levels?

 A. Begin production after receipt of customer orders

 B. Move the customer decoupling point from finished goods to components
 C. Increase component assembly lead times
 D. Plan key component material with preferred suppliers

https://www.industryweek.com/supply-chain/inventory-management/article/
21957774/inventory-optimization-five-steps-to-improve-process- effectiveness
Question #101Topic 1
A company distributes products through a multitiered distribution network. Recently
there has been high demand variability for a mature product that had experienced
stable demand for several years. The most appropriate way to address the variability of
demand is to:

 A. extend forecast horizon.

 B. increase distribution safety stock targets.
 C. increase manufacturing throughput.
  D. increase demand visibility with all partners.

The correct answer should be D. Manufacturing throughput has nothing to do

with demand variability. Sharing demand information can help speed up more
accurate decision making to help reduce variability throughout the chain

Concur that answer is D. B, increasing safety stocks is based on the premise that
demand keeps going upward, while here it says "variability", meaning that
demand could go downward. So increasing safety stock levels might lead to extra
handling/carrying costs.

In a multitiered distribution network, demand variability can create challenges in

managing inventory levels and meeting customer service levels. When there is
high demand variability for a mature product that had experienced stable
demand for several years, increasing distribution safety stock targets can be an
appropriate way to address the variability of demand. Manufacturing throughput
is tackling the challenge at the wrong point in the supply chain.

Question #102Topic 1
Which mode of long distance transportation would cost the least per ton mile?

 A. Water
 B. Air
 C. Truck
 D. Rail

https://askinglot.com/which-mode-of-transportation-is-the-least-expensive-per-ton-mile
Question #103Topic 1
Which of the following costing approaches directly reflects logistics performance?

 A. Activity-based
 B. Total landed
 C. Standard
 D. Weighted average

Answer is A https://www.mbaknol.com/logistics-management/activity-based-costing-in-
logistics/
activity based - Module 2,page 194
Question #104Topic 1
When a company works on controlling stockout frequency, the company is addressing
which of the following attributes of customer service?
  A. Availability
 B. Delivery time
 C. Service reliability
 D. Service recovery

the attribute for stockout frequency metric is Availablity refer exhibit 3-28
Service reliability addresses right product, right time, right place etc. Think perfect order
fulfillment. So reducing stockouts controls issues in service reliability
Question #105Topic 1
Products that share characteristics of predictable demand and low profit margin will
have competition based on which of the following?

 A. Fastest to market
 B. Lowest landed cost
 C. Product improvements
 D. Supply flexibility

low profit margin already mentioned which makes fastest to market the only reasonable
option here imo
already mention low profit margin
this i feel the answer should be b as (A) is competitive stratergy for innovative high
margins and unpredictable is faster to market kindly provide your suggestions
Question #106Topic 1
A key challenge in managing the supply chain for an innovative product is that:

 A. contribution margins will be slim.

 B. the product life cycle will be long.
 C. product demand will be volatile.
 D. inventory levels must be minimal.

Question #107Topic 1
Bullwhip effect can be reduced by which of the following combinations of actions?

 A. Information sharing, batch ordering, variable pricing

 B. Shortage gaming, frequent ordering, consistent pricing
 C. Information sharing, frequent ordering, variable pricing
 D. Information sharing, frequent ordering, consistent pricin

Question #108Topic 1
A company would like to benchmark its inventory levels against other companies. Which
of the following metrics is best to use for this purpose?
  A. Fill rate
 B. Days of supply
 C. Net asset turns
 D. Cash-to-cash cycle time

Question #109Topic 1
Sustainable business practices are those capable of meeting the:

 A. environmental protection requirements of today.

 B. requirements of producing products with minimum resources.
 C. environmental protection requirements of the future.
 D. needs of the present while considering the needs of the future.

Question #110Topic 1
Which of the following elements typically is considered to be an output of demand
planning?

 A. Transportation routes and schedules

 B. Detailed production schedules
 C. Product family and item forecasts
 D. Customer historic tracking report

https://learn.apics.org/wp-content/uploads/2019/11/APICS_CLTD_2020_Excerpt.pdf
(2)

Question #111Topic 1
A pattern of increased shipments from manufacturing plants to a central warehouse at
month-end and quarter-end typically would cause which of the following situations in a
central warehouse?

 A. Fluctuation in required labor resources

 B. Decreased use of storage capacity
 C. Decreased transportation costs
 D. Increased outbound shipments

Question #112Topic 1
The use of standardized components typically results in:

 A. increased planning and control efforts to avoid shortages.

 B. fewer inventory items and inventory levels.
 C. more items, larger bills of material (BOMS), and increased material
requirements planning (MRP) run time.
 D. smaller bills of materials, fewer routings, and fewer manufacturing orders.
Question #113Topic 1
An organization is striving to improve the transfer of multiple levels of data about
products and services to trading partners in the supply chain network. Which of the
following solutions is most appropriate?

 A. Business analytics
 B. Electronic commerce
 C. Enterprise resources planning (ERP)
 D. Advanced planning and scheduling (APS)

Question #114Topic 1
The process of continuous improvement can be defined best as a continuous effort to:

 A. concurrently improve performance on several measures through incremental

improvements.
 B. eliminate root causes of waste through incremental improvements.
 C. eliminate root causes of problems through radical changes.
 D. reduce direct and indirect costs through incremental changes.

Question #115Topic 1
A retailer that imports furniture from several manufactures in low-wage countries wants
to reduce variability in quality. The retailer has proposed merging with one of the
manufacturers and giving it sole responsibility for one product family. The proposed
merger is an example of:

 A. parallel integration.
 B. internal integration.
 C. horizontal integration.
 D. vertical integration.

https://www.investopedia.com/ask/answers/051315/what-difference-between-
horizontal-integration-and-vertical-integration.asp

Question #116Topic 1
Which of the following activities is forbidden in a free trade zone (FTZ)?

 A. Cross-docking goods
 B. Reconfiguring product
 C. Re-exporting goods
 D. Conducting retail trade

Question #117Topic 1
Which of the following metrics is typically the most appropriate measure of product and
service quality?
  A. Internal inspection
 B. Product performance
 C. Customer perception
 D. Warranty claims

Question #118Topic 1
A company that sells 60 units of product in a given year and has an average quantity on
hand of 10 units. There are 360 selling days and 261 production days in the year. The
company has on hand how many days of product inventory?

 A. 0.16
 B. 0.23
 C. 43
 D. 60

Answer C is correct: It is about the production days, not the selling days. Therefore the
formula looks like this: 261/60 = 4.35 days to produce one unit 4.35 * 10 = 43.5 days
worth of produced goods are in their inventory

Question #119Topic 1
A company has an asset turnover ratio of 1.8, inventory of $3,000, a 20% profit margin,
and $5,000 in total assets. What is the total sales volume for the company?

 A. $5,400
 B. $9,000
 C. $15,000
 D. $25,000

3000*1,8 = 5400

3000*1,2= 3600

5400+3600 = 9000

Question #120Topic 1
A manufacturing company has several inexpensive items that are critical to the
production process. The supply of these items has been depleted several times.
Which of the following actions is most likely to reduce stockouts?

 A. Assign personnel to manage the items.

 B. Standardize the items.
 C. Increase minimum inventory levels for the items.
 D. Initiate a vendor-managed inventory (VMI) program for the items.
Question #121Topic 1
Effective data acquisition for supply chain management requires:

 A. establishment of market standards for forecasting accuracy.

 B. establishment of a six-segment matrix classifying function and innovation.
 C. identification of products that have market predictability.
 D. identification of the proper supply chain profile for the product type.

Question #122Topic 1
The primary business advantage of developing an international supply chain is to:

 A. reduce transportation costs.

 B. decrease inventory costs.
 C. limit the number of component suppliers.
 D. realize economies of scale in production and distribution.

Question #123Topic 1
Transforming company policies into objectives and specific goals creates a:

 A. performance standard.
 B. organizational benchmark.
 C. supply chain metric.
 D. balanced scorecard.

Question #124Topic 1
A well-grounded program in which a company focuses on customer success involves:

 A. a thorough understanding of individual customers' requirements.

 B. a commitment to focus on short-term business relationships.
 C. a focus on relationships having high profitability and low potential for growth.
 D. making similar commitments to customers in order to maintain lasting
relationships.

Question #125Topic 1
A company faces highly unpredictable demand for an end item. Which of the following
production methods would work best for meeting customer demand within a reasonable
lead time?

 A. Engineer-to-order (ETO)
 B. Make-to-order (MTO)
 C. Assemble-to-order (ATO)
 D. Make-to-stock (MTS)
Question #126Topic 1
One of the key benefits of adopting a lean supply chain philosophy is the reduction of
inventories that allow:

 A. decreased obsolescence.
 B. freeing up working capital for investment.
 C. reduced material handling surcharges.
 D. lower transaction costs.

Question #127Topic 1
Which of the following measures of a supply chain performance is most desirable from a
stockholder perspective?

 A. Diversity of sales channels

 B. Lean manufacturing performance
 C. Time to market of new products
 D. Velocity and return on assets (ROA)

Question #128Topic 1
Using new housing construction data as a predictor of construction equipment sales is
an example of what type of forecasting method?

 A. Causal
 B. Time series
 C. Judgement
 D. Market survey

The answer should be A. A market survey is gathering information from the

market. -> direct demand Causal forecasting is deriving demand from different
variables. In this example, it is the insights gained from the data.

I think it is D, Market survey they are studying new home sales construction data
which is kind of market survey

Question #129Topic 1
Which of the following consequences is typical of a push-based supply chain?

 A. Longer lead times

 B. Higher product obsolescence
 C. Lower economies of scale
 D. Smaller production batches

Question #130Topic 1
An item must be added to inventory to support new business. Which of the following
inputs should be considered to determine minimum inventory level?

 A. Consumption rate
 B. Qualified supplier
 C. ABC classification
 D. Number of sales transactions

Question #131Topic 1
Which of the following factors is a measure of supply chain reliability?

 A. Order-fulfillment cycle time

 B. Perfect order fulfillment rate
 C. Upside supply chain flexibility
 D. Downside supply chain adaptability

Question #132Topic 1
Which of the following inputs is used in developing a project charter?

 A. Business case
 B. Work breakdown structure
 C. Project management plan
 D. Proposed solutions

https://www.dummies.com/careers/project-management/pmp-certification/inputs-
for-developing-a-charter-you-should-know-for-the-pmp-certification- exam/

Question #133Topic 1
A third-party logistics (3PL) provider most likely will add the greatest contributed value in
the supply chain by:

 A. allowing a company to improve focus on core competencies.

 B. lowering a company's logistics budget.
 C. enhancing a company's own logistics organization.
 D. increasing a company's transportation assets.

Question #134Topic 1
Sell-side e-commerce must include:

 A. automated returns processing.

 B. advance ship notice (ASN).
 C. electronic data interchange (EDI).
 D. automated order entry and tracking.
Question #135Topic 1
Kaizen is a process used in supply chain networks primarily to achieve:

 A. long-term stability of suppliers.

 B. radical changes in interorganizational processes.
 C. higher profits for the dominant member.
 D. improved performance.

https://mexicomlogistics.com/how-to-start-applying-the-kaizen-principles-in-
logistics-and-supply-chain/

Question #136Topic 1
Which of the following actions is most likely to improve the flow of funds between a
group of supply chain partners?

 A. Increasing the level of information sharing and collaboration

 B. Negotiating a single set of terms for the trading partners
 C. Increasing a partner's cash-to-cash cycle time
 D. Selecting a single currency for all group transactions

A is right, Improving partner's C2C will not be necessarily beneficial (as

company's accounts receivable can be partner's accounts payable)

Question #137Topic 1
A key assumption of the economic order quantity (EOQ) is that:

 A. future demand cannot be projected.

 B. the rate of demand is continuous and constant.
 C. reorder frequency is fixed.
 D. as the lot size decreases, the setup cost per unit decreases.

http://financialmanagementpro.com/economic-order-quantity-eoq-model/

Question #138Topic 1
A company is seeking to attract recent college graduates as customers. Which of the
following market characteristics should the company use in order to segment its
customers?

 A. Geographic
 B. Demographic
 C. Price sensitivity
 D. Cultural
Question #140Topic 1
Which of the following cost elements typically would be included in the cost of carrying
inventory?

 A. Scrap during production

 B. Depreciation of product equipment
 C. Direct materials
 D. Obsolescence

Question #141Topic 1
A manufacturer is the leader of a group of trading partners that are collaborating to
improve customer service levels and profitability. Which of the following methodologies
would be most appropriate for synchronizing supply and demand across the supply
chain?

 A. Sales and operations planning

 B. Distribution requirements planning
 C. Supply Chain Operations Reference-model
 D. Supply chain event management

Question #142Topic 1
A company's product cannot be sold beyond 12 months from the date of manufacture.
The product contains hazardous material and must be returned to the factory to be
neutralized. This situation is an example of product:

 A. reuse.
 B. remanufacturing.
 C. recovery.
 D. refurbishing.

Question #143Topic 1
A manufacturer offers a trade-in allowance on a new machine when the customer
returns the old machine. The manufacturer reconditions the returned machine locally
and then sells it on the used market for a profit. This program is an example of a focus
on:

 A. environmentally sensitive engineering.

 B. gray box design.
 C. green manufacturing.
 D. sustainability in operations.

Question #144Topic 1
The social dimension of sustainability typically would be addressed when developing
and implementing policies regarding:
  A. accounting practices.
 B. biodiversity protection.
 C. conflicts of interest.
 D. waste reduction.

While all of the options listed may have some connection to sustainability,
biodiversity protection is most closely related to the social dimension.
Biodiversity protection involves preserving ecosystems, species, and genetic
diversity, which can have a direct impact on human well-being and social equity.
Healthy ecosystems provide essential services such as food, water, and climate
regulation, which are crucial for maintaining the social dimension of
sustainability.

Question #145Topic 1
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

Question #146Topic 1
The most appropriate reason for a business to comply with the United Nations (UN)
Global Compact practices typically would be to:

 A. enhance the competitive advantage.

 B. gain access to proven management tools.
 C. reduce the threat of organized labor.
 D. reduce the cost of operating in multiple countries.

Question #147Topic 1
A company most likely would consider moving a portion of its manufacturing to a
second location to:

 A. improve competitive advantage through economies of scale.

 B. avoid manufacturing downtime due to material shortages.
 C. maximize security for customer shipments.
 D. minimize the impact of natural disasters.
 How do you know that this company has a risk of natural disaster for their
current manufacturing facility? Shouldn't the answer be A?

Question #148Topic 1
Which of the following strategies can be used to help manage global risks?

 A. Direct shipment
 B. Cross-docking
 C. Mass customization
 D. Flexibility

Why not C? Mass customization reduces variability such that base product can be
used/sold globally with few customizations.

Question #149Topic 1
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.

Question #150Topic 1
A company's supply chain depends heavily on sourcing from international suppliers.
Conditions increasingly threaten supply continuity. Which of the following actions is
most appropriate?

 A. Source from domestic suppliers.

 B. Conduct a risk assessment.

 C. Carry additional safety stock.

 D. Spread logistics across multiple carriers.

Question #151Topic 1
Managing supply chain risks includes which of the following activities?

 A. Developing alternatives to key suppliers

 B. Setting aside funds for disruption-recovery efforts
  C. Charging each supply chain partner a portion of risk cost
 D. Creating extra inventory to cover disruptions in the supply chain

Question #152Topic 1
The most important challenge to consider when sourcing globally is:

 A. the identification of sources capable of producing the materials.

 B. the availability of low-cost labor and energy.
 C. complying with specific import/export issues.
 D. balancing the difference between piece price and total cost.

Question #153Topic 1
A toy company decides to buy more products from an overseas company to reduce
costs. To make sure that goods clear customs more quickly, the company most likely
would engage a:

 A. consolidator.
 B. overseas carrier.
 C. shipping association.
 D. freight forwarder.

Question #154Topic 1
When an importer and manufacturer are operating in a free trade zone, payment of a
customs duty is triggered when products are:

 A. returned.
 B. assembled.
 C. stored.
 D. distributed.

Question #155Topic 1
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

Question #156Topic 1
The globalization of a supply chain typically increases challenges in communication
and:
  A. production lead time.
 B. local competition.
 C. documentation complexity.
 D. product standardization.

Question #157Topic 1
A company originally based in Germany sets up companies in India, China, Vietnam,
Mexico, and Brazil. It sources most of the raw materials locally and employs the local
workforce to manage and produce finished goods. Most of the goods produced are
consumed in the same country. The company can be classified as what type of
enterprise?

 A. Globally integrated
 B. Domestic
 C. Multinational
 D. Virtual

Question #158Topic 1
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.

Why it's not ABD ? Weight + distance + volume, APICS exam is supposed to be a
multichoice questionnary so why just "C" ?

Question #159Topic 1
Customizing can be an effective warehousing strategy because it allows a company to:

 A. allocate available storage space to optimize handling costs.

 B. address trade-offs between space and material handling needs.
 C. effectively design its inbound and outbound dock areas.
 D. add value to the product through modification, labeling, and packaging.

Why not B? D seems to be a benefit from customer perspective, but doesn't relate to
warehousing in my POV

I agree with you, do someone else has a clear answer to this question ? D is a customer
perspective benefit

Question #160Topic 1
Which of the following measures effectively evaluates overall resources in a distribution
warehouse?

 A. Throughput
 B. Cube utilization
 C. Filled pallet positions
 D. Labor efficiency

right answer is B Cube utilization refers to the measurement of how efficiently a

warehouse is using its available space (in terms of volume). It is an important metric to
evaluate overall resources in a distribution warehouse, as it takes into account the
storage capacity and the effective use of space. A higher cube utilization indicates that a
warehouse is using its space more efficiently, allowing for better storage and handling of
goods. Although throughput (A), filled pallet positions (C), and labor efficiency (D) are
important metrics for various aspects of warehouse performance, they do not provide a
comprehensive evaluation of overall resources in a distribution warehouse as cube
utilization does.

Question #161Topic 1
A manufacturer of consumer packaged goods with a single plant and nine regional
distribution centers is considering reducing the number of distribution centers in its
system. Reducing the number of distribution centers most likely will reduce fixed
warehousing and the cost of:

 A. storing cycle inventory in the distribution centers.

 B. storing finished-goods inventory at the manufacturing plants.
 C. transportation from the distribution centers to the customer.
 D. transportation from the plant to the distribution centers.

Question #162Topic 1
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.

Question #163Topic 1
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

Question #164Topic 1
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.

Question #165Topic 1
A company produces and distributes a family of soft drinks in a single country. It has
developed and will introduce a new family of soft drinks for weight- and health-
conscious individuals. There currently are no competitors with nationwide distribution for
this category of soft drinks. Which of the following supply chain strategies would be
most appropriate for the two product families?

 A. Produce both product families to forecast and push through the distribution
system.
 B. Produce both product families only after receipt of a distributor order.
 C. Produce the current product family to forecast and the new product family to
order.
 D. Produce the current product family to order and the new product family to
forecast.

Question #166Topic 1
Which of the following actions would be most appropriate for an enterprise that has
successfully integrated internal supply chain management systems and functions?

 A. Focusing on reducing setup times

 B. Implementing a firewall to limit access to supply and demand data
 C. Working with key suppliers to reduce costs and lead times
 D. Working with trading partners to reduce channel redundancies

Question #167Topic 1
A corporation must consider which of the following factors when selecting its enterprise
resources planning system?

 A. Uniqueness of operations
 B. Corporate profitability
  C. MRP and MRP II processing
 D. Industry benchmarks

Question #168Topic 1
The demand side of a traditional warehouse management system primarily is
concerned with:

 A. receiving incoming goods.

 B. assigning storage locations.
 C. assembling outbound orders.
 D. forecasting product demand.

Question #169Topic 1
Bar codes and radio frequency identification systems are key technologies in supply
chain systems because they perform which of the following functions?

 A. Tracking truck locations on cross-country deliveries

 B. Facilitating timely and accurate data acquisition
 C. Providing paperless invoicing of goods
 D. Producing schedule broadcasts for suppliers

Question #170Topic 1
When implementing e-commerce in the supply chain, a company's toughest challenge
most likely will be:

 A. getting all vendors to computerize.

 B. translating data into universal standards.
 C. convincing the information technology department of the value.
 D. explaining the reason for change to customers.

Question #171Topic 1
Implementation of supply chain applications based on which of the following
technologies is most likely to have the lowest fixed costs?

 A. Best of breed packages

 B. One integrated package
 C. Service-oriented architecture
 D. Software-as-a-service

Question #172Topic 1
In the Supply Chain Operations Reference-model (SCORֲ®), the cash-to-cash cycle
time for a manufacturing company is the number of days between which two of the
following situations?
  A. Paying for raw materials and getting paid for the product
 B. Shipping the product from the warehouse and receiving it at the customer's
location
 C. Paying for raw materials and sending an invoice to the customer
 D. Billing the customer and getting paid for the product

Question #173Topic 1
A product design that can be produced to requirements even when conditions in the
production process are unfavorable typically is known as what type of design?

 A. Universal
 B. Computer-aided
 C. Modular
 D. Robust

Question #174Topic 1
A company currently produces custom goods for a limited market. To increase market
share, the company will implement a strategy to reduce the number of products it
produces and reduce delivery lead time. The company can increase its chances of
achieving the strategy by:

 A. using benchmark data for products in the same product groups.

 B. incorporating results from market surveys.
 C. involving customers in the product design process.
 D. using electronic communications to receive customer complaints.

Thanh Nhàn
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

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.

It is most appropriate to measure spending per customer as a proportion of profitability during

which of the following phases of a supplier/customer relationship?

 A. Customer acquisition
 B. Customer retention
 C. Customer dependency
 D. Strategic customer care

When a company undertakes a win-back strategy without considering the profitability of customer
accounts, it is neglecting which of the following key elements?

 A. Loyalty
 B. Scoring
 C. Segmentation
 D. Prospecting

A company that is focused on customer relationship management is most likely to take which of
the following actions for customers who have been profitable over time?

 A. Reduce the cost of serving them.

 B. Target them for higher margin services.
 C. Target them for greater attention.
 D. Charge them for administrative services used.
 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

A manufacturer and the distributors of its products have decided to focus on price and product
availability as strategic priorities. Which of the following values would be the most appropriate
measure of customer service?

 A. Manufacturer's volume flexibility

 B. Order-fulfillment lead times
 C. Distributors' order-fill rates
 D. Supply chain inventory days of supply

The best way to manage a business relationship is to measure performance to:

 A. cost of ownership metrics.

 B. quality targets.
 C. on-time delivery.
 D. agreed-upon metrics.

What are the steps in the supplier relationship process?

 A. Measure, fulfill, document, model

 B. Source, document, manage
 C. Measure, procure, fulfill, model
 D. Source, procure, fulfill, manage

The strategy to implement supplier relationship management has been developed. The most
appropriate next step is to:

 A. develop criteria for prospective partners.

 B. develop policies for alliances.
 C. select initial partners.
 D. conduct a pilot implementation.
 Allowing for organizational restructuring is an example of which of the following steps in creating
successful strategic alliances among suppliers?

 A. Managing multifaceted relationships

 B. Negotiating a win-win deal
 C. Planning for change
 D. Conducting pulse checks

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.

What is the primary benefit of using a central storage warehouse for all components rather than
using point-of-use storage?

 A. Reduced need for bar codes and radio frequency identification technology
 B. Reduced material handling costs
 C. Ease of control and count accuracy
 D. Maintain a cleaner shop floor

The customer who provides point-of-sale data remains the sole decision-maker regarding order
quantities when what type of inventory strategy is used?

 A. Continuous replenishment
 B. Advanced continuous replenishment
 C. Vendor-managed replenishment
 D. Quick response
 Which of the following statements about the use of bar code labels for product identification in the
supply chain is true?

 A. They have been replaced by radio frequency identification tags.

 B. They can be read by devices 1 to 3 meters from the item.
 C. They facilitate the capture of information about the location of items.
 D. Each of the trading partners must apply a unique label.

Inventory parameters established using analytic inventory techniques typically are based on
balancing:

 A. supply and dependent demand.

 B. customer service and inventory costs.
 C. transportation and warehousing costs.
 D. inventory levels and decision-making costs.

A firm is undertaking a revision of its financial metrics to make them more comprehensive and has
decided to use metrics such as return on investment (ROI), return on assets (ROA), and economic
value added (EVA). This is an example of utilizing which of the following types of metrics?

 A. Activity based
 B. Stakeholder focused
 C. Financial sustainability
 D. Value chain

Which of the following ISO standards is used to assist organizations with sustainable
development?

 A. ISO 31000
 B. ISO 14001
 C. ISO 26000
 D. ISO 9001

The mission of the global reporting initiative (GRI) is to provide a:

 A. comparison of key metrics for companies in the same industries across the globe.
 B. feasible business plan that can be shown to global potential investors.
 C. trusted and credible framework for reports regarding sustainability practices.
 D. transparent collaboration between non-profit organizations and governments.

An effective procurement strategy for commodity products should focus on:

 A. driving down cost and reducing risk.

 B. spreading purchases equally across suppliers.
 C. selecting primary and alternate sources.
 D. selecting suppliers with value-added products.

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.

The transportation manager at a consumer goods manufacturer has decided to begin shipping full
truckload rather than less-than-truckload quantities. Which of the following outcomes is likely
following implementation of this decision?

 A. Inventory levels at the manufacturer will decrease.

 B. Lead times as seen by the customer will increase.
 C. Production efficiencies at the manufacturer will increase.
 D. Transportation costs as seen by the customer will increase.

Which of the following processes would a company use to evaluate the risk profile for end-of-life
planning for a product family?

 A. Distribution requirements planning

 B. Sales and operations planning
 C. Rough-cut capacity planning
 D. Production activity control

A business is changing from a business to business model to a business to consumer model.

Which of the following statements about this supply chain change is true?

 A. Returns from customers will decrease.

 B. Number of supplier orders will increase.
 C. Number of customer orders will increase.
 D. Average supplier order size will increase.

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

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 nothing. The company is not responsible for compliance of suppliers.

 B. replace the supplier as soon as possible with a compliant supplier.
 C. notify the supplier of non-compliance.
 D. require the supplier to become compliant.

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

A company ships from its manufacturing facilities directly to its warehouses. If the number of
warehouses increases, transportation costs between manufacturing facilities and warehouses
most likely will:

 A. increase.
 B. decrease.
 C. not change.
 D. become less predictable.

Which of the following outcomes occurs when direct shipping is used instead of a distribution
network?

 A. Outbound transportation cost is reduced.

 B. Inventory velocity is reduced.
 C. Order-fill rates are reduced.
 D. Inventory obsolescence is reduced.

Which of the following factors typically is most important in successfully implementing sales and
operations planning (S&OP)?

 A. Involvement of specialists from all functional groups within an organization

 B. Creation of a dedicated S&OP organizational unit
 C. Involvement and accountability at senior management level
 D. Focus on 3 months to 18 months in the future

A company that sells engineered-to-order products is planning implementation of a supplier

relationship management system (SRM) for direct materials. Which of the following factors is
most likely to make the implementation difficult?

 A. Complexity of the purchasing process

 B. Cost of the application software upgrades
 C. Management of variable lead times
 D. Resistance of material suppliers
 The United Nations Global Compact uses 10 guiding principles to:

 A. reduce uncertainty for multinational firms regarding legal, import/export, labor, and
environmental standards across countries.
 B. set minimum levels of compliance across a broad range of transactional areas for businesses
operating in multiple geographic regions.
 C. align the needs of businesses to increase profitability and the needs of individual countries to
ensure their specific legal requirements are met.
 D. help ensure that markets, commerce, technology, and finance promote advancement of
economies and societies everywhere.

Which of the following sustainability tools is most appropriate for managing environmental
compliance with regulatory requirements?

 A. ISO 14000
 B. Global Reporting Initiative (GRI)
 C. ISO 26000
 D. United Nations Global Compact

A firm has discovered a product quality issue. What should be the first step in responding to this
issue?

 A. Determine the root cause of the quality issue.

 B. Separate the non-conforming products.
 C. Trace the location of the faulty product in the supply chain.
 D. Replace faulty products when they are returned by the end user.

Which of the following activities typically would be an appropriate application of the ISO 31000
Risk Management Principles and Guidelines?

 A. Calculating a risk index for each facility

 B. Establishing external risk communications processes
 C. Projecting the ability of a facility to recover from an event
 D. Preparing for risk management accreditation

Direct shipment distribution typically offers which of the following advantages?

 A. Risk pooling is facilitated.

 B. Demand variability is reduced.
 C. Service levels are increased.
 D. Lead times are reduced.

Which of the following distribution approaches for a low-volume, high-variety product line typically
will result in the highest level of customer service and the lowest total distribution costs?

 A. Direct shipment from plant to customers

 B. Shipment from a central distribution warehouse
 C. Shipment through a multi-echelon distribution network
 D. Outsourcing the distribution function

The most cost-effective way to increase the velocity of goods in a supply chain is to:

 A. improve the way the supply chain handles goods that are not in motion.
 B. switch to a faster mode of transportation.
 C. establish warehouses near major retail outlets.
 D. subcontract with multiple third-party logistics (3PL) providers who are located at strategic
locations.

In a reverse supply chain, which of the following tools enables forecasting the usability of each
part in the returned product?

 A. Reverse network design

 B. Warranty return rate analysis
 C. A disassembly bill of material (BOM)
 D. Design for service

A company has designed its supply chain so that financial losses in one part of the supply chain
will be offset by gains in another part. The company is employing which of the following strategies
to address global risk?

 A. Speculation
 B. Flexibility
 C. Product shifting
 D. Hedging
 Which of the following actions by trading partners will likely 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 for proper product use

In order to bring a new product to market quickly while maximizing customer value and minimizing
costs, a company should leverage:

 A. top performing suppliers in the areas of quality, cost, and availability.

 B. crowdsourcing for design capital requirements.
 C. e-commerce trading methods.
 D. concurrent engineering or participative design.

VŨ 261-350

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

Which of the following outcomes is an expected benefit of effectively implementing supply chain
event management software?

 A. Inventory data are captured in real time.

 B. Files are transferred from one corporation to another.
 C. Notifications of variances from plans are triggered.
 D. Communication protocols between companies are standardized.

The practice of purchasing items in large quantities and requesting that shipments be delivered
directly to customers is referred to as:
  A. drop shipping.
 B. cross-docking.
 C. breaking bulk.
 D. freight equalization.

Which of the following types of lead times is related most closely to a supplier performance
measure?

 A. Fulfillment
 B. Replenishment
 C. Overall
 D. Process

Which of the following types of lead times is related most closely to a supplier performance
measure?

 A. Fulfillment
 B. Replenishment
 C. Overall
 D. Process

Which of the following performance indicators can be used to measure the effectiveness of a
vendor-managed inventory program?

 A. Number of inventory receipts

 B. Inventory usage
 C. Inventory returns
 D. In-stock rate

Which of the following statements best identifies the value of using a supplier rating system?

 A. It provides an objective means for a company to determine outstanding suppliers.

 B. It allows customers to post chargebacks to suppliers.
 C. It offers a company an effective way to control suppliers' delivery processes.
 D. It ensures that all suppliers are using the same quality standards to manufacture
products.
A company recently implemented a new supplier rating system. Data was collected from the
enterprise resources planning system about each vendor's rating for cost, quality, and delivery over
12 months. A cutoff point was established for poor performers. The responsible purchasing agent
then scheduled meetings with each supplier. Which of the following actions is most appropriate to
take with suppliers whose ratings were below the cutoff point?

 A. Discuss ways to raise the ratings for the next review period.
 B. Tell the suppliers they are on probation for 3 months.
 C. Immediately cancel outstanding contracts with those suppliers.
 D. Ask the suppliers to explain the poor performance.

A firm experiences a supply chain interruption from a second-tier supplier. Which of the following
actions is the firm likely to take to minimize future interruptions?

 A. Require the supplier to submit weekly cycle count reports.

 B. Require the supplier to implement a sales and operations planning process.
 C. Map the supplier's supply chain to identify risks and opportunities.
 D. Conduct an ISO 14001 audit of the supplier.

An organization is partnering with a supplier. The most appropriate tool to ensure that the supplier
has the necessary capabilities is:

 A. a supplier-input-process-output-customer diagram.

 B. supplier certification.
 C. supplier relationship management.
 D. supplier performance evaluation.

A company most likely would implement a supplier certification program to:

 A. improve the supplier's procurement process.

 B. abide by ISO standards.
 C. validate the supplier's compliance with requirements.
 D. implement point-of-sale (POS) terminals.

Supplier certification procedures verify that a supplier:

 A. has attained ISO certification.

 B. implements, documents, and improves procedures to fulfill customer requirements.
  C. tracks manufacturing processes, bills of material (BOMs) and routings.
 D. manufactures products to specifications shown on engineering documents and bills of
material.

A large bicycle company has outsourced manufacturing and needs to respond immediately to any
logistics problems in the supply chain. The best technological solution to meet this need is:

 A. enterprise resources planning.

 B. supply chain event management.
 C. supplier relationship management.
 D. a transportation management system.

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

A retailer wants to partner with its suppliers to implement automatic replenishment of inventories
and joint sales forecasts. Which of the following supply chain management technologies most
likely would support the retailer's strategy?

 A. Advanced planning and scheduling

 B. Collaborative planning, forecasting, and replenishment
 C. Supplier relationship management applications
 D. Radio frequency identification (RFID) tags

When multiple warehouses are combined into one centralized warehouse, the requirement for
safety stock is reduced because:

 A. there is less in-transit inventory.

 B. the total variability of demand is reduced.
 C. average cycle stock is reduced.
 D. safety stock becomes available-to-promise.

A manufacturer's inventory levels are growing and service levels are dropping. Which of the
following supply chain strategies is most appropriate to reduce inventory and improve service?
  A. Increase the safety stock on all items.
 B. Reduce the setup time.
 C. Optimize the total cost.
 D. Implement batch operations.

Which of the following variables is the most appropriate customer-facing goal used to determine
the target inventory level?

 A. Inventory turns
 B. Level of service
 C. Total delivery cost
 D. Delivery lead time

Which of the following factors is the most important driver of a change to supply chain strategy?

 A. Health and safety concerns

 B. Competitor actions
 C. Government regulations
 D. Customer perceptions of value

The primary reason to establish a customer-dedicated warehouse is to:

 A. integrate and consolidate an assortment of inventory.

 B. position inventory to improve response time.
 C. balance inventory with consumption.
 D. equalize inbound and outbound logistics costs.

Which of the following factors is the most appropriate measure of delivery performance for
finished goods?

 A. Perfect order fulfillment

 B. On-time delivery
 C. Load efficiency
 D. Available-to-promise

Which of the following tools is most appropriate to use to determine projects that will achieve the
greatest net benefits?
  A. Pareto diagram
 B. Fishbone diagram
 C. Process flow diagram
 D. Operation process chart

Point-of-sale information fails to measure actual demand most likely because:

 A. holidays interrupt typical sales patterns.

 B. inventory levels are inaccurate.
 C. there is lag time in the system.
 D. data about lost sales cannot be captured.

The production scheduler for a bottleneck resource should:

 A. schedule additional preventive maintenance for the resource.

 B. ensure a constant queue of work waiting to be processed.
 C. increase production lot sizes to increase utilization of resources.
 D. implement pull signals for production of the bottleneck resource.

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.

Organizations that change from a traditional purchasing perspective to a supply chain perspective
most likely will adopt techniques related to:

 A. product pricing.
 B. value stream analysis.
 C. centralized decision making.
 D. sourcing multiple suppliers.

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.

Which of the following objectives is the primary driver in the design and implementation of lean
process management?

 A. Reducing the level of inventory

 B. Decreasing the cash-to-cash cycle
 C. Integrating processes between departments
 D. Satisfying customer requirements

Value stream mapping provides the most benefit when:

 A. analyzing customer requirements.

 B. identifying nonvalue-added activities.
 C. planning kaizen events.
 D. implementing an information technology strategy.

A company that is having difficulties prioritizing resources against a long list of improvement
projects should use which of the following processes?

 A. Control chart
 B. Competitive benchmarking
 C. Pareto analysis
 D. Six Sigma

A supervisor knows that employees have good ideas for improving department operations but are
hesitant to share them. Which of the following tools would be most appropriate for encouraging
the employees to participate in identifying opportunities?

 A. Tree diagram
 B. Pareto chart
 C. Process map
 D. Affinity diagram
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

A supplier has decided to improve its forecast accuracy by reducing the information lead time from
the retailer. Which of the following actions would be most appropriate to achieve the desired
result?

 A. Eliminating sales and promotions

 B. Decentralizing demand information
 C. Reducing its quoted lead time
 D. Utilizing electronic data interchange

Which of the following activities is critical to successful synchronization of supply and demand
throughout a supply chain?

 A. Sharing demand information

 B. Placing large orders to obtain lower prices
 C. Reducing the number of deliveries
 D. Maintaining increased inventories

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

Which of the following actions typically is most important when building a collaborative supply
chain?

 A. Investing sufficient capital

 B. Building mutual trust
 C. Integrating information systems
  D. Developing a common culture

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.

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

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

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

Variation in upstream requirements can be reduced by increasing:

  A. demand visibility.
 B. production capacity.
 C. product features.
 D. safety stock.

Which of the following metrics would be most appropriate for a group of trading partners that is
trying to gain competitive advantage through supply chain reliability?

 A. Cash-to-cash cycle time

 B. Supply chain response time
 C. Order fulfillment lead time performance
 D. Value-added cost per employee

A firm has increased finished-goods inventories for several products to compensate for increased
variability in demand. The firm analyzed shipment data and determined that the variability was due
to a few customers placing large orders for single shipments to obtain discounts. Which of the
following actions is the firm most likely to take to maintain sales and reduce variability in demand?

 A. Reducing discounts for large orders

 B. Encouraging high-volume customers to place blanket orders
 C. Implementing extrinsic forecasting methods
 D. Increasing the level of safety stock on high-volume products

Customer demand is 120 units per week. The company works on a 9-hour shift per day, 5-day per
week basis. Each shift has a ֲ½-hour lunch break and two 15- minute coffee breaks. The cycle time
is 12 minutes. To meet demand, production must occur at the rate of one unit every:

 A. 12 minutes.
 B. 20 minutes.
 C. 22.5 minutes.
 D. 28 minutes.
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

The most useful inventory costing method which enables purchase price variance analysis is:

 A. average costing.
 B. standard costing.
 C. last in first out (LIFO) costing.
 D. first in first out (FIFO) costing.

The purchasing manager of a company wants to minimize stock-outs as well as obsolete

inventory. Which of the following tools needs to be implemented?

 A. Blanket purchase order

 B. Advanced planning and scheduling (APS)
 C. Buy-back contracts
 D. Business-to-business integration software
A large retailer has negotiated buyback contracts with several suppliers. The suppliers typically will
need which of the following systems to effectively implement the contracts?

 A. Point-of-sale tracking
 B. Well-developed reverse logistics
 C. Monitoring the retailer's revenue
 D. Sales incentives to reward the retailer

A company exports products to emerging markets. Which of the following approaches would be
used to enhance compliance, minimize risks, and connect supply chain activities?

 A. Logistics network planning

 B. Distribution requirements planning
 C. Supply chain event management
 D. Global trade management

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

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

A company recently faced an increase in backorders. The company's marketing department
recently ran a sales promotion. The purchasing and planning departments were not aware of the
promotional activity. Which of the following processes will help to solve this type of problem in the
future?

 A. Sales and operations planning (S&OP)

 B. Advanced planning and scheduling (APS)
  C. Supplier relationship management (SRM)
 D. Customer relationship management (CRM)

A company is aggressively pursuing improvements in the financial performance of its supply chain.
The company should first focus its efforts on which of the following metrics?

 A. Process takt time

 B. Cycle count accuracy
 C. Number of inventory turns
 D. Number of first-tier suppliers

A company develops annual forecasts for key products and enters into annual contracts with key
suppliers based on the forecasts. Which of the following benefits would the company most likely
receive from this approach?

 A. Shorter delivery lead times

 B. Lower prices
 C. Improved service
 D. Higher-quality products

A company has applied lean thinking and tools to its internal operations over the last several years.
The company is now concerned about its ability to recover from a supply disruption. Which of the
following actions would be most appropriate for the company to take to increase its resiliency?

 A. Arrange for multiple sources for key components.

 B. Maintain 1 week's supply of safety stock for key components.
 C. Require the suppliers of key components to maintain safety stock.
 D. Add capacity to enable quick recovery from a disruption.

Which of the following outcomes is achieved through the reduction in the number of a firm's
suppliers?

 A. Supplier operational integration

 B. Supply localization
 C. Volume consolidation
 D. Value management

Which of the following tools would help a team of operators to prioritize probable causes of
equipment failures?
  A. Brainstorming
 B. Control chart
 C. Pareto chart
 D. Process flowchart

Which of the following benefits is most likely to be achieved with private warehousing?

 A. Control of warehouse operations

 B. Economies of scale
 C. Range of services
 D. Lower operating costs

Which of the following Supply Chain Operations Reference (SCOR) model performance metrics
would be most appropriate for an organization with the supply chain capability to align its strategy
with changes in the marketplace?

 A. Perfect order fulfillment

 B. Order fulfillment cycle time
 C. Supply chain management cost
 D. Upside supply chain flexibility

Which of the following activities is included in the source process of the Supply Chain Operations
Reference (SCOR) model?

 A. Managing warehouses
 B. Managing inventory
 C. Scheduling production
 D. Aligning functional plans

Which of the following parties would a company most likely engage to ensure goods purchased
from an overseas company clear customs more quickly?

 A. Non-vessel-operating common carrier (NVOCC)

 B. Consolidator
 C. Shipping association
 D. Freight forwarder
Which of the following decision-making criteria is relevant when purchasing a maintenance, repair,
and operations item?

 A. It is not a component in the bill of material (BOM).

 B. It is needed for the efficient functioning of the business.
 C. It is a component in the bill of material.
 D. It is the lowest unit cost item.

A company that has documented the current state of return processes most appropriately would
next:

 A. benchmark against the Supply Chain Operations Reference (SCOR) model.

 B. evaluate whether the enterprise resources planning (ERP) system can handle the new
state.
 C. assign a project leader for the change effort.
 D. adopt six sigma to ensure defect-free implementation.

The diagram below shows the process of manufacturing of item D and the capacity of each
operation. Each operation requires one unit from the previous step.

Which of the following is the total production throughput?

 A. 25 units/hr.
 B. 27 units/hr.
 C. 65 units/hr.
 D. 84 units/hr.

Which of the following statements best describes the motivation for the creation of the Global
Reporting Initiative (GRI) sustainability reporting guidelines?

 A. To combat widely reported sustainability abuses of multi-national companies

 B. To combat increased globalization and consumption of natural resources.
  C. To support governmental regulation on use and export of natural resources.
 D. To support companies working to make their operations more sustainable.

A company has made a strategic decision to introduce products to improve profitability. Which of
the following issues should the company be concerned about most while implementing this
decision?

 A. Reverse supply chain

 B. Unpredictable demand
 C. Warranty and repair
 D. Patent security

A company seeking to maximize supply chain efficiency and to streamline order processing should
first:

 A. implement a vendor-managed inventory (VMI) process.

 B. implement electronic data interchange (EDI).
 C. move to a make-to-stock (MTS) environment.
 D. utilize supplier portals.

A distribution requirements planning (DRP) system is implemented primarily to monitor or manage:

 A. supplier capacity.
 B. customer demand.
 C. inventory replenishment.
 D. demand variation.

A bicycle manufacturer wants to offer a range of bicycles that allow the customer to choose
wheels, gears, brakes, frames, and saddles. Implementing which of the following approaches
would be most appropriate?

 A. Standardized components
 B. Production to forecast
 C. Customer relationship management (CRM)
 D. Mass customization

Which of the following reasons is often why many companies fail to achieve the implementation
benefits of reverse logistics?
  A. Many top managers fail to have a good grasp of the cost and benefits of returns.
 B. Often too much time passes between a product sale and a return.
 C. The quality issues surrounding returns are too difficult to assess.
 D. Transportation costs for returns are uncertain and usually higher than for sales.

A global manufacturer is implementing a remanufacturing program to improve its triple bottom line
(TBL). Which dimension of TBL will the new program positively affect?

 A. Ergonomic
 B. Social
 C. Environmental
 D. Employee

Which of the following tools will facilitate greater collaboration as the supply chain matures?

 A. Supplier relationship management (SRM) to select a vendor

 B. Customer relationship management (CRM) to automate the sales force
 C. Supply chain event management (SCEM) to increase visibility of changing situations
 D. Enterprise resources planning (ERP) to forecast demand

Which of the following tools is appropriate to evaluate overall organizational performance?

 A. Supplier scorecard
 B. Benchmarking
 C. Balanced scorecard
 D. Cost-benefit analysis

Which of the following tools is an optimization tool for supply chain management?

 A. Capacity requirements planning (CRP)

 B. Advanced planning and scheduling (APS)
 C. Material requirements planning (MRP)
 D. Radio frequency identification (RFID)

Activity-based costing (ABC) is an example of:

 A. generally accepted accounting principles.

 B. inventory classification system.
  C. asset cost estimate technique.
 D. cost allocation technique.

Tangible benefits of investing in information technology (IT) include:

 A. reducing transaction costs.

 B. improved reliability.
 C. amortization of capital investment.
 D. easier financial reporting.

Tangible benefits of investing in information technology (IT) include:

 A. reducing transaction costs.

 B. improved reliability.
 C. amortization of capital investment.
 D. easier financial reporting.

A grocery store found that ground beef sales increased when buns were a featured sales item. This
customer relationship management (CRM) technique is called:

 A. data mining.
 B. data tracking.
 C. point-of-purchase (POP) promotion.
 D. upselling.

Which of the following processes enables joint planning of key supply chain activities?

 A. Vendor-managed inventory (VMI)

 B. Supply chain event management (SCEM)
 C. Distribution requirements planning (DRP)
 D. Collaborative planning, forecasting, and replenishment (CPFR)

Which of the following situations typically requires extended storage?

 A. Products with low demand

 B. Product consolidation
 C. Modular products
 D. Seasonal products
Which of the following statements best describes the goals of strategic sourcing?

 A. A purchase strategy that relies heavily on technology to reduce risk

 B. A procurement strategy that takes into account the long-term impact on people, profit,
and the planet
 C. A process of purchasing goods and services aimed at exploiting global efficiencies in
production
 D. A mechanism for managing external resources to support non-commodity purchases

A firm allows its employees to engage in charitable activities during work hours, enforces strict
codes of employee conduct, and makes donations of funds and goods to local organizations.
Which of the following types of initiatives do these examples represent?

 A. Employee ethics
 B. Community conduct
 C. Backed-by-business
 D. Social sustainability

The four risks of supply chain risk management are supply, demand:

 A. quality, and process

 B. value, and sustainability
 C. process, and environmental
 D. value, and environmental

A key to increasing supply chain management integration is to:

 A. have critical component suppliers share in strategy implementation

 B. incorporate enterprise resource planning (ERP)
 C. utilize warehouse management systems (WMS)
 D. push demand throughout the supply chain

A possible risk of licensing other companies to manufacture products is:

 A. losing market share

 B. the other companies becoming competitors
 C. the products becoming a commodity
 D. the products being overpriced
To handle a dispute over damage to goods shipped between two countries, which international
standard should be applied?

 A. United Nations Global Compact

 B. Incotermsֲ®
 C. Export Trading Company Act
 D. Omnibus Foreign Trade and Competitiveness Act

A company is pursuing price as a competitive advantage. Which of the following operational

performance indicators would the company most likely want to improve?

 A. Efficiency
 B. Responsiveness
 C. Relevancy
 D. Sustainability

A firm is expanding into a new market with import/export tariffs and needs a warehouse to accept,
store, and ship its general merchandise product.
What type of public warehouse in the new market would best meet the firm's needs?

 A. Bonded
 B. Subcontracted
 C. Specialty
 D. Network aligned

Modularity is defined as a process characterized by:

 A. people and machines arranged in small groups

 B. cross-functional teams that collaborate to produce the least-cost design
 C. products that are designed in easily segmented components
 D. products that are designed so small variations in production or assembly do not
adversely affect quality