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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
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
Answer: B
NEW QUESTION 3
A company regularly issues sustainability reports in accordance with the Global Reporting Initiative (GRI) framework and uses the reports to track continuous improvement. Which of the following topics could be found in the sustainability reports?
- A. Labor practices
- B. Product specifications
- C. Raw material costs
- D. Currency exchange rates
Answer: A
NEW QUESTION 4
Variation in upstream requirements can be reduced by increasing:
- A. demand visibility.
- B. production capacity.
- C. product features.
- D. safety stock.
Answer: A
NEW QUESTION 5
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
Answer: D
NEW QUESTION 6
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.
Answer: D
NEW QUESTION 7
The most appropriate approach to balance supply and demand over the medium term is:
- A. Enterprise resource planning (ERP)
- B. Business planning
- C. Strategic planning
- D. Sales and operations planning (S&OP)
Answer: D
NEW QUESTION 8
Use of consistent performance measures among trading partners is a best practice to:
- A. share data among information systems faster.
- B. manage collaboration and continuous improvement.
- C. reduce the time to introduce new products.
- D. increase the flexibility to collaborate with customers.
Answer: B
NEW QUESTION 9
A company has outsourced a high volume of assembly work to top-tier suppliers, thereby reducing the overall number of suppliers they directly manage. Which of the following actions must the company perform to mitigate risk?
- A. Monitor lead times at sub-tier suppliers
- B. Maintain direct relationships with sub-tier suppliers
- C. Execute all terms of contracts at sub-tier suppliers
- D. Purchase all critical components for assembly at the company
Answer: B
NEW QUESTION 10
A juice manufacturer wants to determine the time required to convert a dollar spent on materials into a dollar received in sales. Which of the following metrics would be most
appropriate to make this determination?
- A. Activity-based costing
- B. Inventory carrying cost
- C. Cash-to-cash cycle time
- D. Average financial turnover
Answer: C
NEW QUESTION 11
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
Answer: :D
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
What is the appropriate supply chain strategy for a product with low demand uncertainty and high economies of scale?
- A. Pull
- B. Push
- C. Push-pull
- D. Postponement
Answer: B
NEW QUESTION 14
Which of the following outcomes is most likely a result of allocating excess capacity to a supply chain facility?
- A. Lower utilization which leads to higher cost
- B. Higher utilization which leads to higher cost
- C. Higher utilization which leads to lower cost
- D. Lower utilization which leads to lower cost
Answer: A
NEW QUESTION 15
Which of the following behaviors is appropriate for a progressive company that is responding to changes in its supply chain?
- A. Pursuing cost reduction continuously
- B. Developing multiple supply chains for different product lines
- C. Ensuring demand before committing to a change in the supply chain
- D. Designing products for maximum lifetime
Answer: B
NEW QUESTION 16
Which of the following attributes is an example of both supply and operational risk?
- A. Quality
- B. Order quantities
- C. Robust processes
- D. Product mix
Answer: A
NEW QUESTION 17
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-fill rate performance
- D. Value-added productivity per employee
Answer: C
NEW QUESTION 18
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
Answer: D
NEW QUESTION 19
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 20
The profit margin for a product that is currently made in the company's facility has decreased during the past 2 years. Which of the following factors should be considered when deciding whether to make or buy the product?
- A. Production capabilities
- B. Transportation capabilities
- C. Distribution channels
- D. Landed cost
Answer: D
NEW QUESTION 21
The primary risk that must be considered when lean practices are applied to a supply chain network is:
- A. decreased operations flexibility.
- B. decreased inventory availability.
- C. increased total ordering costs.
- D. increased customer returns.
Answer: B
NEW QUESTION 22
Use of a private warehouse is most appropriate when a firm needs to:
- A. adjust warehouse capacity easily for seasonal products.
- B. perform a limited number of specialized activities for customers.
- C. control operating policies and hours to respond to changes in market demand.
- D. take advantage of economies of scale and scope to increase profitability.
Answer: C
NEW QUESTION 23
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
Answer: C
NEW QUESTION 24
A company used Global Reporting Initiative guidelines to complete a self-assessment. Which of the following actions would be the most appropriate next step?
- A. Share information with all stakeholders
- B. Obtain top management support
- C. Identify action items
- D. Conduct gap analysis
Answer: D
NEW QUESTION 25
A firm decides to move from a mass production to a mass customization model. This will result in a change in focus from:
- A. special to general purpose facilities.
- B. lower to higher operational cost.
- C. efficiency to effectiveness measures.
- D. high to low flexibility workforce.
Answer: :A
NEW QUESTION 26
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 27
Which of the following processes ensures that functional plans are consistent?
- A. Strategic planning
- B. Sales and operations planning
- C. Project planning
- D. Master scheduling
Answer: B
NEW QUESTION 28
Which of the following activities is the most appropriate use of an advanced planning and scheduling system?
- A. Selecting the target market for a product
- B. Optimizing transportation routes
- C. Creating a daily demand forecast
- D. Identifying constraints within a facility
Answer: D
NEW QUESTION 29
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