NEW QUESTION 1
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.

Answer: C

NEW QUESTION 2
A company closely monitors supplier performance and notices recent late deliveries from one supplier. The supplier discloses flood damage at the plant. The company quickly shifts sourcing to a new supplier and has minimal loss of sales. Which of the following risk strategies reflects the company's actions?

• A. Achieving low cost through reaction
• B. Creating an adaptive supply chain community
• C. Reducing supply chain vulnerability
• D. Investing in redundancy

Answer: B

NEW QUESTION 3
Horizontal and vertical exchanges of secure data among supply chain partners are facilitated best by:

• A. the intranet.
• B. a portal.
• C. a Web site.
• D. e-mail.

Answer: B

NEW QUESTION 4
Purchased component standardization generates savings primarily by reducing:

• A. assembly costs through economies of scale.
• B. engineering costs due to lower testing requirements.
• C. inventory control costs due to smaller shelf space requirements.
• D. inventory transportation costs by using economical modes.

Answer: A

NEW QUESTION 5
When doing international business, a company's total line-haul costs will vary with the:

• A. weight shipped.
• B. distance shipped.
• C. pallets shipped.
• D. volume shipped.

Answer: B

NEW QUESTION 6
A supply chain visibility application helps an organization by:

• A. planning raw material requirements.
• B. removing outliers from independent demand forecasts.
• C. providing flexibility in customer delivery locations.
• D. providing comprehensive information from any point of contact.

Answer: D

NEW QUESTION 7
The primary benefit a company is likely to achieve when setting time fences is:

• A. reducing lead time.
• B. providing a steady schedule for suppliers.
• C. interpreting forecast properly.
• D. maintaining a stable flow.

Answer: D

NEW QUESTION 8
A company is formally adhering to the principles of the UN Global Compact. After a review of their supply chain, they have found that a key supplier is in violation of the compact. The
best action for the company to do first is:

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

Answer: C

NEW QUESTION 9
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.

Answer: B

NEW QUESTION 10
A firm decides to reduce the number of distribution centers it uses. Which of the following outcomes is the most likely result of this change?

• A. Order-fill rate will increase.
• B. Total safety stock will increase.
• C. Delivery lead time will decrease.
• D. Outbound transportation cost will decrease.

Answer: A

NEW QUESTION 11
Which of the following circumstances best describes a roadblock to implementing customer relationship management and supplier relationship management?

• A. Concern about conflicts of interest with partners in the supply chain
• B. Lack of defined industry standards
• C. Deterioration of customer service levels
• D. Increased access to information for supply chain partners

Answer: A

NEW QUESTION 12
A manufacturer is the sole supplier of a product family. It sells to regional distributors that sell to retailers. The manufacturer uses batch production processes that have long setup times. All nodes in the supply chain have agreed to pursue a quick response to changes in the level of demand as a competitive priority. Which of the following factors is most likely to hinder their pursuit of this competitive priority?

• A. Information technology standards
• B. Information sharing practices
• C. Contractual terms and conditions
• D. Manufacturing lot sizes

Answer: D

NEW QUESTION 13
If a firm has 35 days of accounts payable outstanding and 55 days invested in inventory, and its cash-to-cash cycle time is 90 days, what is the number of days of accounts receivable?

• A. 70
• B. 90
• C. 110
• D. 180

Answer: A

NEW QUESTION 14
The most appropriate strategy for a firm that makes and sells a wide range of items typically would be to domestically source items that have which of the following characteristics?

• A. Short product life cycle and many variations
• B. Short product life cycle and few variations
• C. High labor value and low transport uncertainty
• D. High labor value and high transport uncertainty domestically

Answer: A

NEW QUESTION 15
The relative speed at which all transactions within the supply chain process occur is known as:

• A. the cycle time.
• B. velocity.
• C. latency.
• D. throughput.

Answer: B

NEW QUESTION 16
The ABC classification system answers which two of the following inventory-related questions?

• A. How much inventory should be ordered at one time, and when will the order be placed?
• B. What is the importance of the inventory item, and how will the inventory items be controlled?
• C. How much inventory should be ordered at one time, and what is the importance of the inventory item?
• D. When will the order be placed, and how will the inventory items be controlled?

Answer: B

NEW QUESTION 17
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

Answer: D