NEW QUESTION 1

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

Answer: D

NEW QUESTION 2

Turning the request-for-quotes process into a real-time auction setting most likely will:

• A. improve product quality.
• B. increase process costs.
• C. reduce cycle time.
• D. reduce bid cost.

Answer: C

NEW QUESTION 3

Before discontinuing a product based on activity-based cost calculations, one should primarily consider the effects upon:

• A. activity-based cost calculations of other products.
• B. value stream mapping of complementary products.
• C. research and development (R&D) costs of new products.
• D. overhead absorption rates across product lines.

Answer: A

NEW QUESTION 4

On-time delivery performance in the supply chain can best be improved by aligning required capacity with what type of capacity?

• A. Demonstrated
• B. Rated
• C. Budgeted
• D. Theoretical

Answer: A

NEW QUESTION 5

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.

Answer: :C

NEW QUESTION 6

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

Answer: B

NEW QUESTION 7

Which of the following tradeoffs should be considered when selecting logistics options?

• A. Safety stock levels and customer service levels
• B. Inventory levels and scheduling operations
• C. Transportation cost and speed of delivery
• D. Centralized and decentralized distribution network

Answer: C

NEW QUESTION 8

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

Answer: A

NEW QUESTION 9

Component commonality in manufacturing primarily allows a company to:

• A. optimize production runs for the components.
• B. use less-specialized machinery.
• C. decrease single-minute exchange of die processes.
• D. increase planning and control.

Answer: A

NEW QUESTION 10

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.

Answer: C

NEW QUESTION 11

Short order cycles to facilitate rapid replenishment will result in:

• A. minimal in-process inventory.
• B. fewer inventory moves.
• C. improved communications to customers.
• D. increased supplier collaboration.

Answer: A

NEW QUESTION 12

A supplier disputes a low rating generated by a company's enterprise resources planning (ERP) system. Which of the following actions by the purchasing agent is most appropriate?

• A. Advise the ERP information technology manager that there is a flaw in the rating system.
• B. Scrap the vendor rating system until the company can figure out what is wrong.
• C. Compare the vendor and company detail records, and interview company employees who handled the data.
• D. Tell the supplier that, regardless of the disputed claims, the supplier must improve performance.

Answer: C

NEW QUESTION 13

Electronic data interchange reduces costs primarily through:

• A. standardization of trading document formats.
• B. adaptability across hardware platforms.
• C. simplified software development.
• D. replacement of proprietary systems.

Answer: A

NEW QUESTION 14

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.

Answer: B

NEW QUESTION 15

A company has limited visibility of global customer sales. Which of the following methods is the most appropriate way to sense and respond to customer demand?

• A. Point of sale
• B. Sales and operations planning
• C. Demand-driven supply network
• D. Customer relationship management

Answer: C

NEW QUESTION 16

One of the first steps in devising an effective supply chain strategy within a company is to analyze a product's:

• A. nature of demand.
• B. backlog position.
• C. forecast bias.
• D. sales performance.

Answer: A

NEW QUESTION 17

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.

Answer: B

NEW QUESTION 18

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.

Answer: C

NEW QUESTION 19

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

Answer: B

NEW QUESTION 20

When establishing third-party and fourth-party logistics relationships, a firm should avoid providers who:

• A. use a proprietary information system.
• B. constantly update their information technology and equipment.
• C. provide extensive reporting on each customer interaction.
• D. meet customer requirements through regional warehousing.

Answer: A

NEW QUESTION 21

Supplier certification procedures verify that a supplier:

• A. is ISO certified.
• B. implements, documents, and improves procedures related to customer requirements.
• C. tracks manufacturing processes, including bills of material and routings to support the processes.
• D. manufactures products to the specifications shown on engineering documents and bills of material.

Answer: B

NEW QUESTION 22

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 23
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