NEW QUESTION 1
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.

Answer: A

NEW QUESTION 2
A manufacturer uses standard costing, and a potential supplier uses activity-based costing. This difference most likely will have implications for which of the following types of future decisions?

• A. Price concessions
• B. Make-or-buy
• C. Distribution warehouse locations
• D. Freight terms

Answer: B

NEW QUESTION 3
Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

• A. Inventory turnover ratio can be reduced.
• B. Aggregate demand is more accurate than disaggregate demand.
• C. The planning time fence can be adjusted as needed.
• D. The supplier shares some risk for holding inventory.

Answer: B

NEW QUESTION 4
In order to optimize delivery routing and load planning as well as to provide advanced shipment notifications (ASN's), which of the following technology platforms should be implemented to plan and manage the above operations?

• A. Electronic Date Interchange (EDI)
• B. Enterprise Resource Planning (ERP)
• C. Event Management System (EMS)
• D. Transportation Management System (TMS)

Answer: D

NEW QUESTION 5
The globalization of a supply chain typically increases uncertainty and:

• A. production lead time.
• B. local competition.
• C. documentation complexity.
• D. product standardization.

Answer: C

NEW QUESTION 6
A manufacturer of consumer goods has purchased one of its distributors. The distributor's inventory system is archaic and will not integrate into the manufacturer's enterprise resources planning (ERP) system. Which of the following approaches is the most appropriate long-term solution for the manufacturer?

• A. Buy a complete ERP system that includes seamlessly integrated distribution.
• B. Buy a warehouse management system that integrates into the ERP system.
• C. Run the existing warehouse inventory system and update the ERP system manually.
• D. Hire a software contractor to write an interface with batch update to the ERP system.

Answer: B

NEW QUESTION 7
Designing a supply chain to maximize responsiveness and flexibility is most appropriate for which of the following types of organizations?

• A. Public utility provider
• B. Configurable products manufacturer
• C. Commodity goods supplier
• D. Luxury goods manufacturer

Answer: B

NEW QUESTION 8
A distributor has a network consisting of a central distribution center serving five regional distribution centers that ships to multiple retailers. The distributor wants to reduce inventory while maintaining product availability. Which of the following actions is most likely to produce the desired outcome?

• A. Centralizing inventory for slow-moving items
• B. Reducing the quoted price for slow-moving items
• C. Implementing cross-docking at the central distribution center
• D. Implementing continuous replenishment at the regional centers

Answer: A

NEW QUESTION 9
A primary reason for enhancing supply chain security is to:

• A. meet government requirements.
• B. reduce insurance costs.
• C. improve lead time.
• D. protect brand image.

Answer: D

NEW QUESTION 10
A typical advantage of a production outsourcing strategy for a company focusing on agility as a competitive priority is that:

• A. monitoring costs are decreased.
• B. production lead time is increased.
• C. product quality is increased.
• D. product introduction time is decreased.

Answer: D

NEW QUESTION 11
A company handling sale of product discarded by consumers is what type of provider?

• A. Third party logistics (3PL)
• B. Reverse logistics
• C. Fourth party logistics (4PL)
• D. Warehousing

Answer: B

NEW QUESTION 12
When profit impact is high and supply risk is low for an item, which of the following procurement strategies is most likely to be effective and successful?

• A. Leveraging purchasing power
• B. Forming a long-term partnership
• C. Automating the procurement process
• D. Ensuring continuous supply

Answer: A

NEW QUESTION 13
A manufacturer with operations in an area prone to natural disasters is reviewing its sustainability strategy. Which of the following production strategies should the company implement to reduce the risk of supply interruptions?

• A. Centralized
• B. Decentralized
• C. Make-to-order
• D. Engineer-to-order

Answer: B

NEW QUESTION 14
The use of kanban for item replenishment by external suppliers requires:

• A. accurate long-term forecasts.
• B. returnable plastic containers.
• C. close communication about component usage.
• D. a process for the reverse supply chain.

Answer: C

NEW QUESTION 15
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.

Answer: B

NEW QUESTION 16
Which of the following benefits should a supplier expect to receive by becoming a certified supplier?

• A. Reduction in redundant processes with buyer
• B. Increase in price of items sold
• C. Increase in access to competitive information
• D. Reduction in number of items utilizing vendor-managed inventory

Answer: A

NEW QUESTION 17
Pull strategy typically would be the most appropriate strategy when customer demand uncertainty is:

• A. high, and supplier lead time is long.
• B. high, and supplier lead time is short.
• C. low, and supplier lead time is long.
• D. low, and supplier lead time is short.

Answer: B