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Certified Supply Chain Professional Exam Question and Answers

Certified Supply Chain Professional Exam

Last Update Sep 22, 2025
Total Questions : 629

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Questions 1

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

Options:

A.  

ISO 31000

B.  

ISO 14001

C.  

ISO 26000

D.  

ISO 9001

Discussion 0
Questions 2

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

Options:

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.

Discussion 0
Questions 3

Managing supply chain risks includes which of the following activities?

Options:

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

Discussion 0
Questions 4

Allowing for organizational restructuring is an example of which of the following steps in creating successful strategic alliances among suppliers?

Options:

A.  

Managing multifaceted relationships

B.  

Negotiating a win-win deal

C.  

Planning for change

D.  

Conducting pulse checks

Discussion 0
Questions 5

An effective procurement strategy for commodity products should focus on:

Options:

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.

Discussion 0
Questions 6

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

Options:

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

Discussion 0
Questions 7

Which of the following actions is most likely to increase total supply chain risk?

Options:

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

Discussion 0
Questions 8

Benchmarking a firm's performance against industry competitors is most valuable because it can reveal:

Options:

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.

Discussion 0
Questions 9

A company wants to implement a system for managing environmental compliance with legislative and regulatory requirements. Which of the following sustainability tools is most appropriate?

Options:

A.  

ISO 14000

B.  

Global Reporting Initiative (GRI)

C.  

ISO 26000

D.  

UN Global Compact

Discussion 0
Questions 10

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?

Options:

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.

Discussion 0
Questions 11

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?

Options:

A.  

Manufacturer's volume flexibility

B.  

Order-fulfillment lead times

C.  

Distributors' order-fill rates

D.  

Supply chain inventory days of supply

Discussion 0
Questions 12

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?

Options:

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.

Discussion 0
Questions 13

Which of the following measures effectively evaluates overall resources in a distribution warehouse?

Options:

A.  

Throughput

B.  

Cube utilization

C.  

Filled pallet positions

D.  

Labor efficiency

Discussion 0
Questions 14

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:

Options:

A.  

consolidator.

B.  

overseas carrier.

C.  

shipping association.

D.  

freight forwarder.

Discussion 0
Questions 15

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

Options:

A.  

Distribution requirements planning

B.  

Sales and operations planning

C.  

Rough-cut capacity planning

D.  

Production activity control

Discussion 0
Questions 16

Which of the following warehousing tools enables wireless scanning of products?

Options:

A.  

Magnetic stripes

B.  

Universal product codes

C.  

Radio frequency devices

D.  

Local area network

Discussion 0
Questions 17

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

Options:

A.  

cost of ownership metrics.

B.  

quality targets.

C.  

on-time delivery.

D.  

agreed-upon metrics.

Discussion 0
Questions 18

Which of the following strategies would increase overall supply chain risk?

Options:

A.  

Single sourcing a product that makes the highest annual profit

B.  

Outsourcing a product that is not well suited to your operations

C.  

Identify multiple sources for a product that has a potential for supply chain disruption

D.  

Internally manufacturing a product that has a high level of technical intellectual property

Discussion 0
Questions 19

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:

Options:

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.

Discussion 0
Questions 20

The most important challenge to consider when sourcing globally is:

Options:

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.

Discussion 0
Questions 21

The United Nations Global Compact uses 10 guiding principles to:

Options:

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.

Discussion 0
Questions 22

Direct shipment distribution typically offers which of the following advantages?

Options:

A.  

Risk pooling is facilitated.

B.  

Demand variability is reduced.

C.  

Service levels are increased.

D.  

Lead times are reduced.

Discussion 0
Questions 23

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?

Options:

A.  

Complexity of the purchasing process

B.  

Cost of the application software upgrades

C.  

Management of variable lead times

D.  

Resistance of material suppliers

Discussion 0
Questions 24

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?

Options:

A.  

Achieving low cost through reaction

B.  

Creating an adaptive supply chain community

C.  

Reducing supply chain vulnerability

D.  

Investing in redundancy

Discussion 0
Questions 25

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

Options:

A.  

Outbound transportation cost is reduced.

B.  

Inventory velocity is reduced.

C.  

Order-fill rates are reduced.

D.  

Inventory obsolescence is reduced.

Discussion 0
Questions 26

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

Options:

A.  

Best of breed packages

B.  

One integrated package

C.  

Service-oriented architecture

D.  

Software-as-a-service

Discussion 0
Questions 27

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

Options:

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.

Discussion 0
Questions 28

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?

Options:

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.

Discussion 0
Questions 29

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:

Options:

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.

Discussion 0
Questions 30

A corporation must consider which of the following factors when selecting its enterprise resources planning system?

Options:

A.  

Uniqueness of operations

B.  

Corporate profitability

C.  

MRP and MRP II processing

D.  

Industry benchmarks

Discussion 0
Questions 31

A company most likely would consider moving a portion of its manufacturing to a second location to:

Options:

A.  

improve competitive advantage through cost control.

B.  

avoid manufacturing downtime due to material shortages.

C.  

maximize security for customer shipments.

D.  

minimize the impact of natural disasters.

Discussion 0
Questions 32

The social dimension of sustainability typically would be addressed when developing and implementing policies regarding:

Options:

A.  

accounting practices.

B.  

biodiversity protection.

C.  

conflicts of interest.

D.  

waste reduction.

Discussion 0
Questions 33

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:

Options:

A.  

increase.

B.  

decrease.

C.  

not change.

D.  

become less predictable.

Discussion 0
Questions 34

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?

Options:

A.  

Globally integrated

B.  

Domestic

C.  

Multinational

D.  

Virtual

Discussion 0
Questions 35

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:

Options:

A.  

environmentally sensitive engineering.

B.  

gray box design.

C.  

green manufacturing.

D.  

sustainability in operations.

Discussion 0
Questions 36

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?

Options:

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.

Discussion 0
Questions 37

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?

Options:

A.  

Public warehouse

B.  

Value-added territory

C.  

Free trade zone

D.  

Customs clearing house

Discussion 0
Questions 38

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:

Options:

A.  

reuse.

B.  

remanufacturing.

C.  

recovery.

D.  

refurbishing.

Discussion 0
Questions 39

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?

Options:

A.  

Source from domestic suppliers.

B.  

Conduct a risk assessment.

C.  

Carry additional safety stock.

D.  

Spread logistics across multiple carriers.

Discussion 0
Questions 40

Which of the following strategies can be used to help manage global risks?

Options:

A.  

Direct shipment

B.  

Cross-docking

C.  

Mass customization

D.  

Flexibility

Discussion 0
Questions 41

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?

Options:

A.  

Sales and operations planning

B.  

Distribution requirements planning

C.  

Supply Chain Operations Reference-model

D.  

Supply chain event management

Discussion 0
Questions 42

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?

Options:

A.  

Activity based

B.  

Stakeholder focused

C.  

Financial sustainability

D.  

Value chain

Discussion 0
Questions 43

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:

Options:

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.

Discussion 0
Questions 44

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

Options:

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.

Discussion 0
Questions 45

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

Options:

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

Discussion 0
Questions 46

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

Options:

A.  

weight shipped.

B.  

distance shipped.

C.  

pallets shipped.

D.  

volume shipped.

Discussion 0
Questions 47

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

Options:

A.  

Loyalty

B.  

Scoring

C.  

Segmentation

D.  

Prospecting

Discussion 0
Questions 48

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

Options:

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

Discussion 0
Questions 49

Component commonality in manufacturing primarily allows a company to:

Options:

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.

Discussion 0
Questions 50

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?

Options:

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.

Discussion 0
Questions 51

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

Options:

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

Discussion 0
Questions 52

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

Options:

A.  

develop criteria for prospective partners.

B.  

develop policies for alliances.

C.  

select initial partners.

D.  

conduct a pilot implementation.

Discussion 0
Questions 53

The demand side of a traditional warehouse management system primarily is concerned with:

Options:

A.  

receiving incoming goods.

B.  

assigning storage locations.

C.  

assembling outbound orders.

D.  

forecasting product demand.

Discussion 0
Questions 54

An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in:

Options:

A.  

prices to the end user.

B.  

supply chain cost of sales.

C.  

the manufacturer's inventory.

D.  

the total supply chain inventory.

Discussion 0
Questions 55

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?

Options:

A.  

Customer acquisition

B.  

Customer retention

C.  

Customer dependency

D.  

Strategic customer care

Discussion 0
Questions 56

In an advanced planning system, which of the following modules feeds the master planning module?

Options:

A.  

Purchasing planning

B.  

Demand planning

C.  

Distribution planning

D.  

Fulfillment planning

Discussion 0
Questions 57

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

Options:

A.  

returned.

B.  

assembled.

C.  

stored.

D.  

distributed.

Discussion 0
Questions 58

Customizing can be an effective warehousing strategy because it allows a company to:

Options:

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.

Discussion 0
Questions 59

In the Supply Chain Operations Reference-model (SCOR®), the cash-to-cash cycle time for a manufacturing company is the number of days between which two of the following situations?

Options:

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

Discussion 0
Questions 60

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

Options:

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

Discussion 0
Questions 61

The process used to determine the impact of promotions, price discounts, and rebates on demand forecasts commonly is referred to as demand:

Options:

A.  

planning.

B.  

forecasting.

C.  

aggregating.

D.  

shaping.

Discussion 0
Questions 62

Which of the following actions is in accordance with the Ten Principles in the United Nations (UN) Global Compact?

Options:

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

Discussion 0
Questions 63

Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?

Options:

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.

Discussion 0
Questions 64

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

Options:

A.  

formal and informal communication.

B.  

interconnected information systems.

C.  

one partner regularly exercising power.

D.  

standardized terms of agreement.

Discussion 0
Questions 65

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?

Options:

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.

Discussion 0
Questions 66

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

Options:

A.  

Supplier to contractor

B.  

Manufacturing to supplier

C.  

Customer to distribution

D.  

Customer to contractor

Discussion 0
Questions 67

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?

Options:

A.  

Group

B.  

Channel

C.  

Regional

D.  

Location

Discussion 0
Questions 68

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?

Options:

A.  

Price concessions

B.  

Make-or-buy

C.  

Distribution warehouse locations

D.  

Freight terms

Discussion 0
Questions 69

The probability of customer dissatisfaction is highest when which of the following conditions exists?

Options:

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.

Discussion 0
Questions 70

The question below is based on the following flowchart:

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

Options:

A.  

From supplier to customer

B.  

From customer to manufacturer

C.  

From customer to supplier

D.  

From supplier to manufacturer

Discussion 0
Questions 71

The purpose of continuous improvement in the supply chain is to:

Options:

A.  

eliminate the root causes of problems.

B.  

improve interorganizational communication.

C.  

develop better written procedures.

D.  

reduce product costs.

Discussion 0
Questions 72

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

Options:

A.  

strategy coordination across countries.

B.  

preferred suppliers located in host countries.

C.  

major strategic decisions coordinated centrally.

D.  

products adapted to local needs.

Discussion 0
Questions 73

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

Options:

A.  

wider variety.

B.  

shorter lead time.

C.  

higher profit margins.

D.  

lower sales volumes.

Discussion 0
Questions 74

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

Options:

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

Discussion 0
Questions 75

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?

Options:

A.  

Inventory levels

B.  

Contractual obligations

C.  

Customer profitability

D.  

Scheduled marketing activities

Discussion 0
Questions 76

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:

Options:

A.  

fourth party logistics providers.

B.  

third party logistics providers.

C.  

retail services providers.

D.  

distribution services providers.

Discussion 0
Questions 77

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

Options:

A.  

Generating customer leads

B.  

Generating graphic sales models

C.  

Measuring customer preferences

D.  

Identifying customer margins

Discussion 0
Questions 78

Which of the following situations is an example of postponement?

Options:

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.

Discussion 0
Questions 79

Medium-term demand management projections are used primarily to:

Options:

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.

Discussion 0
Questions 80

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

Options:

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.

Discussion 0
Questions 81

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

Options:

A.  

Profits are maximized.

B.  

Retention of key customers is increased.

C.  

Product options are increased.

D.  

Transaction costs are decreased.

Discussion 0
Questions 82

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

Options:

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

Discussion 0
Questions 83

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

Options:

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.

Discussion 0
Questions 84

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

Options:

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.

Discussion 0
Questions 85

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?

Options:

A.  

Customer segmentation

B.  

Customer-facing ordering systems

C.  

Customer relationship management (CRM)

D.  

Supply Chain Operations Reference (SCOR®)

Discussion 0
Questions 86

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

Options:

A.  

Build-to-order scheduling

B.  

Push-pull replenishment

C.  

Collaborative planning, forecasting, and replenishment

D.  

Vendor-managed inventory

Discussion 0
Questions 87

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?

Options:

A.  

Selling and leasing back equipment.

B.  

Renting equipment on consignment.

C.  

Using a third-party logistics provider.

D.  

Using an owner-operator fleet.

Discussion 0
Questions 88

Incorporating supplier input into product and process design helps to:

Options:

A.  

maintain quality.

B.  

stabilize product costs.

C.  

reduce time to market.

D.  

save costs to the buyer.

Discussion 0
Questions 89

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

Options:

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.

Discussion 0
Questions 90

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:

Options:

A.  

customer focus and alignment.

B.  

forecast accuracy.

C.  

multiple downstream channels.

D.  

multiple upstream supply chains.

Discussion 0
Questions 91

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

Options:

A.  

Introduction

B.  

Growth

C.  

Maturity

D.  

Decline

Discussion 0
Questions 92

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?

Options:

A.  

Internal rate of return (IRR)

B.  

Lifetime customer value (LCV)

C.  

Net present value (NPV)

D.  

Return on investment (ROI)

Discussion 0
Questions 93

Which of the following considerations is an important supply chain design decision?

Options:

A.  

Product design

B.  

Selecting supporting information systems

C.  

Identifying labor force requirements

D.  

Identifying training programs

Discussion 0
Questions 94

Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?

Options:

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.

Discussion 0
Questions 95

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

Options:

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

Discussion 0
Questions 96

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

Options:

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

Discussion 0
Questions 97

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

Options:

A.  

Leading indicators

B.  

Market research data

C.  

Order history

D.  

Shipment history

Discussion 0
Questions 98

Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?

Options:

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

Discussion 0
Questions 99

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

Options:

A.  

Production equipment productivity

B.  

Net asset turnover

C.  

Value-added productivity per employee

D.  

Upside flexibility

Discussion 0
Questions 100

A remanufacturer of equipment is most likely to have what type of supply chain?

Options:

A.  

Modular logistics

B.  

Reverse logistics

C.  

Mixed model

D.  

Lateral

Discussion 0
Questions 101

The most likely benefit of implementing a collaborative transportation management system is:

Options:

A.  

lower distribution center operating costs.

B.  

fewer transportation planners.

C.  

less variability in picking and packing time.

D.  

less variability in transportation costs.

Discussion 0
Questions 102

Which of the following forecasting methods relies on the opinions of a panel of experts?

Options:

A.  

Delphi technique

B.  

Survey method

C.  

Causal method

D.  

Time series analysis

Discussion 0
Questions 103

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

Options:

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

Discussion 0
Questions 104

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

Options:

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.

Discussion 0
Questions 105

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

Options:

A.  

Reverse auctions

B.  

Sales force automation

C.  

Finite capacity planning

D.  

Point-of-purchase metrics

Discussion 0
Questions 106

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:

Options:

A.  

$29,000,000.

B.  

$15,750,000.

C.  

$10,500,000.

D.  

$ 5,250,000.

Discussion 0
Questions 107

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

Options:

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.

Discussion 0
Questions 108

A return material authorization (RMA) policy is used in reverse logistics to:

Options:

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.

Discussion 0
Questions 109

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?

Options:

A.  

Customer service ratio metrics

B.  

Market segmentation

C.  

Customer relationship management (CRM)

D.  

Supply Chain Operations Reference (SCOR®)

Discussion 0
Questions 110

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

Options:

A.  

products have been standardized.

B.  

products have a modular design.

C.  

production processes have been standardized.

D.  

production processes have been simplified.

Discussion 0
Questions 111

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?

Options:

A.  

Customer differentiation

B.  

Order winner segregation

C.  

Market segmentation

D.  

Channel definition

Discussion 0
Questions 112

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

Options:

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

Discussion 0
Questions 113

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?

Options:

A.  

Delivery lead times are consistent.

B.  

Risk pooling benefits are negated.

C.  

Distribution overhead is increased.

D.  

Order-fill rate is decreased.

Discussion 0
Questions 114

The primary reason for the evolution of the supply chain is:

Options:

A.  

fewer rejects due to poor quality.

B.  

increased on-time delivery.

C.  

increased cost savings.

D.  

increased communication.

Discussion 0
Questions 115

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

Options:

A.  

Automation of supplier sales activities

B.  

Elimination of formal contracts

C.  

Reduction in customer and supplier inventories

D.  

Standardization of communications

Discussion 0
Questions 116

Continuous improvement is best described as:

Options:

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.

Discussion 0
Questions 117

Which of the following factors typically is the most significant impediment to implementing collaborative commerce?

Options:

A.  

Technology barriers

B.  

Security

C.  

Corporate culture

D.  

Return on investment (ROI)

Discussion 0
Questions 118

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

Options:

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.

Discussion 0
Questions 119

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:

Options:

A.  

create a contract for the new market.

B.  

enter into a partnership.

C.  

form a strategic alliance.

D.  

acquire the distributor.

Discussion 0
Questions 120

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

Options:

A.  

design history.

B.  

available capacity.

C.  

inventory balance.

D.  

warehouse location.

Discussion 0
Questions 121

Which of the following situations is an example of inventory being held as a way to balance supply and demand?

Options:

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.

Discussion 0
Questions 122

Demand management involves which of the following undertakings?

Options:

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

Discussion 0
Questions 123

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?

Options:

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

Discussion 0
Questions 124

The value that logistics provides within the supply chain can best be summarized as:

Options:

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.

Discussion 0
Questions 125

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:

Options:

A.  

forward supply chain.

B.  

marketing process.

C.  

manufacturing process.

D.  

sales and operations planning process.

Discussion 0
Questions 126

Which of the following outcomes is most likely a result of allocating excess capacity to a chain facility?

Options:

A.  

Lower utilization which leads to higher cost

B.  

Higher utilization which leads to higher cost

C.  

High utilization which leads to lower cost

D.  

Lower utilization which leads to lower cost

Discussion 0
Questions 127

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?

Options:

A.  

Engineer-to-order (ETO)

B.  

Make-to-order (MTO)

C.  

Assemble-to-order (ATO)

D.  

Make-to-stock (MTS)

Discussion 0
Questions 128

A company’s cash-to-cash cycle time is 36 days. How many weeks of inventory are on hand if the average collection time from customers is 60 days, and the company pays its vendors in 45 days?

Options:

A.  

Two

B.  

Three

C.  

Four

D.  

Five

Discussion 0
Questions 129

A sales and marketing directory who wants to transform a company into a customer-driven organization most likely would consider:

Options:

A.  

Allowing customers to use their preferred channels to interact will the company.

B.  

Implementing an independent system to capture customer data

C.  

initiating a social media presence.

D.  

focusing product design on manufacturing strengths

Discussion 0
Questions 130

Which of the following actions by trading partners would be most appropriate to protect against variability in supply and demand?

Options:

A.  

Improve product quality.

B.  

Increase inventory levels.

C.  

Increase information sharing.

D.  

Reduce product complexity.

Discussion 0
Questions 131

A distribution requirements planning (DRP) system it implemented to primary to monitor or manage:

Options:

A.  

supplier capacity

B.  

customer demand

C.  

inventory replenishment

D.  

demand variation

Discussion 0
Questions 132

Which of the to the financial following descriptions applies balance sheet for a firm?

Options:

A.  

Reflects the financial position of a firm at a specific point in time.

B.  

Reflects the cash flow over a specified period of time

C.  

..provides details on the changes to equity.

D.  

..provides details pertaining to the financial success of operations.

Discussion 0
Questions 133

Which of the following statements is true when selecting the mode of transportation to use in a global supply chain?

Options:

A.  

The difference in cost of warehousing in different countries makes air transportation viable only for very lightweight items.

B.  

When moving heavy items long distances, water transportation offers the lowest cost and highest availability in most countries.

C.  

Pipeline usage is limited because of the high variable cost of operation and difficulty moving between pipelines

D.  

The availability, specifications, and geographic reach of rail transportation varies greatly from country to country.

Discussion 0
Questions 134

The main purpose of market research for supply chain design is to identify:

Options:

A.  

Minimal marketing costs

B.  

 Potential markets and analyzing them 

C.  

The best use of information technology (IT)

D.  

The best location of markets to minimize transportation costs

Discussion 0
Questions 135

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?

Options:

A.  

Eliminating sales and promotions

B.  

Decentralizing demand information

C.  

Reducing its quoted lead time

D.  

Utilizing electronic data interchange

Discussion 0
Questions 136

Which of the following rider less material handling systems can be characterized by movement along the floor using optical, magnetic, or wireless control?

Options:

A.  

Automated storage/retrieval system (AS/RS)

B.  

Automated guided vehicle system (AGVS)

C.  

Robotics

D.  

Sortation

Discussion 0
Questions 137

Key quantitative sustainability indicators include:

Options:

A.  

carbon disclosure projects.

B.  

sustainable product designs.

C.  

restricted substance usage.

D.  

continuous improvement (CI) ideas.

Discussion 0
Questions 138

A manufacturer experiences frequent changes in product technology and market preferences, resulting in new product introductions each year. Which of the following sourcing strategies would be most appropriate?

Options:

A.  

Sole sourcing

B.  

Multiple sourcing

C.  

Long-term contracting

D.  

Strategic partnering

Discussion 0
Questions 139

A group of trading partners manufactures and distributes products. An increase in which of the following factors is most likely to result in an increase in the retailer's supply variability?

Options:

A.  

Product simplification

B.  

Retailer replenishment order quantities

C.  

Manufacturer's defect rate

D.  

Distributor replenishment frequency

Discussion 0
Questions 140

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?

Options:

A.  

$5,400

B.  

$9,000

C.  

$15,000

D.  

$25,000

Discussion 0
Questions 141

Risk pooling is best applied when there:

Options:

A.  

is high variability in product demand across locations.

B.  

is high variability in product attributes.

C.  

are frequent fluctuations in price.

D.  

are numerous competitors in the market.

Discussion 0
Questions 142

Which of the following distribution strategies is characterized by items flowing through a warehouse in an almost continuous manner?

Options:

A.  

Cross-docking

B.  

Direct shipment

C.  

Multilevel

D.  

One-piece flow

Discussion 0
Questions 143

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

Options:

A.  

Consumption rate

B.  

Qualified supplier

C.  

ABC classification

D.  

Number of sales transactions

Discussion 0
Questions 144

A formal currency review as an approach for managing supply chain risk is appropriate when relative currency value:

Options:

A.  

moves above a certain level

B.  

moves below a certain level

C.  

moves above or below a certain level

D.  

maintains a constant value

Discussion 0
Questions 145

One of the drawbacks to using ISO 26000 is that it:

Options:

A.  

is one of the most expensive ISO standards to implement

B.  

incorporates different standards for different countries

C.  

only provides guidance and cannot be certified as can other ISO standards

D.  

is only recognized by a few countries, due to the strict standards

Discussion 0
Questions 146

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

Options:

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.

Discussion 0
Questions 147

Improving fill rate is an objective related to which of the following perspectives of a balanced scorecard?

Options:

A.  

Financial

B.  

Learning and growth

C.  

Internal business processes

D.  

Innovation

Discussion 0
Questions 148

Which of the following statements regarding intellectual property protection is correct?

Options:

A.  

There is minimal concern about protecting a firm's intellectual property when sourcing abroad.

B.  

The suppliers and countries involved need to have legal constraints in place to protect intellectual property.

C.  

Products or components with high intellectual property content should be sourced globally.

D.  

The legal systems in most low-cost countries provide adequate trade secret protection.

Discussion 0
Questions 149

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?

Options:

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

Discussion 0
Questions 150

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:

Options:

A.  

parallel integration.

B.  

internal integration.

C.  

horizontal integration.

D.  

vertical integration.

Discussion 0
Questions 151

Which of the following activities is the most appropriate use of an advanced planning and scheduling system?

Options:

A.  

Selecting the target market for a product

B.  

Optimizing transportation routes

C.  

Creating a daily demand forecast

D.  

Identifying constraints within a facility

Discussion 0
Questions 152

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

Options:

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.

Discussion 0
Questions 153

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:

Options:

A.  

48.

B.  

50.

C.  

60.

D.  

88.

Discussion 0
Questions 154

Bullwhip effect is mainly caused by which of the following factors?

Options:

A.  

Forecast accuracy and information sharing

B.  

Strategic partnership and price fluctuation

C.  

E-business and information sharing

D.  

Forecast accuracy and price fluctuation

Discussion 0
Questions 155

Value stream mapping provides the most benefit when:

Options:

A.  

analyzing customer requirements.

B.  

identifying nonvalue-added activities.

C.  

planning kaizen events.

D.  

implementing an information technology strategy.

Discussion 0
Questions 156

Which of the following activities is necessary for a firm to transform their supply chains from a set of linear processes to a network of customer-centric companies that can easily adapt to changing market conditions?

Options:

A.  

Supply chain network planning

B.  

Supply chain collaboration

C.  

Supply chain aggregate planning

D.  

Supply chain design

Discussion 0
Questions 157

One of the difficulties in purchasing services is to:

Options:

A.  

be fully knowledgeable of the services provided.

B.  

completely understand the service provider's supply chain.

C.  

estimate the service provider's cost.

D.  

measure the quality of services provided.

Discussion 0
Questions 158

Which of the following statements about warehouse layout and storage is correct?

Options:

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.

Discussion 0
Questions 159

A company has a single manufacturing facility. It distributes the products through retail stores located in various regions. Which of the following distribution strategies will minimize the company’s warehousing costs?

Options:

A.  

Utilizing third-party logistics (3PL) providers

B.  

Pooling inventory in regional warehouses shipping to multiple retail

C.  

Shipping directly from the manufacturing facility to retail locations

D.  

Cross-docking at regional warehouses shipping to multiple retail stores

Discussion 0
Questions 160

Which of the following measures of a supply chain performance is most desirable from a stockholder perspective?

Options:

A.  

Diversity of sales channels

B.  

Lean manufacturing performance

C.  

Time to market of new products

D.  

Velocity and return on assets (ROA)

Discussion 0
Questions 161

Which of the following statements best describes a fundamental requirement for developing and maintaining good business relationships in an effective supplier partnership?

Options:

A.  

The supplier must commit to meeting the customer's performance metrics.

B.  

The buyer must commit to improving processes.

C.  

A means of periodic feedback must be in place for issue resolution.

D.  

Both parties must focus on cost reduction to improve competitiveness.

Discussion 0
Questions 162

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?

Options:

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.

Discussion 0
Questions 163

Qualitative extrinsic data are used with which of the following forecasting techniques?

Options:

A.  

Time series

B.  

Seasonality

C.  

Delphi method

D.  

Causal method

Discussion 0
Questions 164

Which of the following statements about functional products is true?

Options:

A.  

They have a short life cycle.

B.  

They have low profit margins.

C.  

They have an unpredictable demand.

D.  

They are sold at a limited number of locations.

Discussion 0
Questions 165

A company that decides to stop using a supplier due to financial instability is an example of:

Options:

A.  

due diligence.

B.  

risk avoidance.

C.  

risk assessment.

D.  

triple bottom line (TBL).

Discussion 0
Questions 166

Which of the following consequences is typical of a push-based supply chain?

Options:

A.  

Longer lead times

B.  

Higher product obsolescence

C.  

Lower economies of scale

D.  

Smaller production batches

Discussion 0
Questions 167

The practice of purchasing items in large quantities and requesting that shipments be delivered directly to customers is referred to as:

Options:

A.  

drop shipping.

B.  

cross-docking.

C.  

breaking bulk.

D.  

freight equalization.

Discussion 0
Questions 168

The six sigma approach to quality focuses on increasing customer satisfaction by:

Options:

A.  

increasing efficiency

B.  

reducing variability

C.  

reducing waste

D.  

simplifying processes

Discussion 0
Questions 169

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

Options:

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.

Discussion 0
Questions 170

A key challenge in managing the supply chain for an innovative product is that:

Options:

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.

Discussion 0
Questions 171

A company is conducting research to better align their supply chain and value proposition to the needs of their top customers. Which of the following approaches would likely be the most efficient for collecting this market intelligence?

Options:

A.  

Use causal forecasting methods to predict demand across aggregate level product groups to improve offerings for strategic accounts.

B.  

Implement customer relationship management (CRM) to obtain historical customer data on orders and shipment complaints.

C.  

Use the Delphi method and obtain qualitative feedback in order to reach a consensus on aligning value to customer need.

D.  

Complete voice-of-the-customer (VOC) focus group studies on how a company can provide value to the customer

Discussion 0
Questions 172

Which of the following forecasting techniques is most appropriate when data is scarce?

Options:

A.  

Seasonal analysis

B.  

Computer simulation

C.  

Delphi method

D.  

Linear regression

Discussion 0
Questions 173

Which of the following statements is true of Incoterms®?

Options:

A.  

They are required contract terms for international trade.

B.  

Each term implies the responsibilities of the buyer and seller.

C.  

Discounts and surcharges are identified by the terms.

D.  

The terms are reviewed annually by the International Chamber of Commerce.

Discussion 0
Questions 174

Which of the following elements typically is considered to be an output of demand planning?

Options:

A.  

Transportation routes and schedules

B.  

Detailed production schedules

C.  

Product family and item forecasts

D.  

Customer historic tracking report

Discussion 0
Questions 175

A firm has experienced multiple complaints from customers concerning the delivery of products with a wide range of reasons for the complaints. On which of the following measures should the firm focus its improvement efforts?

Options:

A.  

Percentage on-time delivery

B.  

Fill rate percentage

C.  

Perfect order fulfillment

D.  

Customer order lead time

Discussion 0
Questions 176

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

Options:

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.

Discussion 0
Questions 177

A large global distributor is contemplating the switch to the use of ethanol-based fuel in its truck fleet and wants to identify the impact of this change on food prices. Which of the following attributes of the triple bottom line (TBL) are part of this trade-off decision?

Options:

A.  

Organizational, financial, and social

B.  

Social, financial, and environmental

C.  

Social, environmental, and organizational

D.  

Organizational, financial, and environmental

Discussion 0
Questions 178

The United Nations (UN) Global Compact is best defined as a:

Options:

A.  

voluntary initiative to advance universal pnnciples on human rights, labor, anticorruption. and environmental stewardship.

B.  

credential that indicates a multinational organization is upholding minimum standards of legal compliance and financial reporting.

C.  

set of guidelines encouraging firms that plan to expand into other countries to adhere to the standards of their home countries.

D.  

set of minimum standards for a wide range of business practices that allows organizations to receive global compliance certification.

Discussion 0
Questions 179

Unresolved conflicts from the sales and operations planning (S&OP) process will result in which of the following outcomes?

Options:

A.  

Supply and demand will come to a consensus

B.  

Demand will take precedence

C.  

Supply will take precedence

D.  

Senior management resolution

Discussion 0
Questions 180

Which of the following forecasting techniques is often used in causal forecasting?

Options:

A.  

Qualitative

B.  

Moving average

C.  

Regression

D.  

Delphi

Discussion 0
Questions 181

Which of the following automatic identification system (AIS) tags includes a battery and an onboard transmitter that periodically transmit signals?

Options:

A.  

Quick-response (QR) code

B.  

Passive

C.  

Active

D.  

Semi-active

Discussion 0
Questions 182

Using new housing construction data as a predictor of construction equipment sales is an example of what type of forecasting method?

Options:

A.  

Causal

B.  

Time series

C.  

Judgement

D.  

Market survey

Discussion 0
Questions 183

Which of the following responses to risk best describes the evolving concept of flexibility in supply chain risk management?

Options:

A.  

The practice of adjusting capacities in a manufacturing environment

B.  

The ability to react quickly to changes or events while maintaining customer service levels

C.  

The ability to produce high volume stock keeping units (SKUs) in multiple locations

D.  

The ability to produce complex configurations of a product within the standard lead time

Discussion 0
Questions 184

When maintaining a material requirements plan, scheduled receipts are best represented by which of the following terms?

Options:

A.  

Planned orders

B.  

On-hand inventory

C.  

Replenishment shipments

D.  

Maintenance, repair, and operating (MRO) supplies

Discussion 0
Questions 185

Which of the following considerations are essential to a company’s advanced supply chain strategy that utilizes cloud computing?

Options:

A.  

Understanding the history and evolution of supply chain technologies

B.  

Understanding the complexity of information services configuration

C.  

Understanding the content and scope of a company’s cloud implementation

D.  

Understanding the product offering of local and global internet service providers (ISPs)

Discussion 0
Questions 186

Which of the following processes is key to customer relationship management (CRM)?

Options:

A.  

Event logging

B.  

Demand planning

C.  

Market segmentation

D.  

Market research

Discussion 0
Questions 187

Raw material costs have been rising and much of the inventory has been in-house for several months. Which of the following inventory accounting methods would maximize reported company assets?

Options:

A.  

Last in, first out (LIFO)

B.  

First in, first out (FIFO)

C.  

Activity-based cost

D.  

Moving average cost

Discussion 0
Questions 188

A company currently produces a major component and is considering purchasing the component from a foreign supplier. Assuming they were to purchase from the foreign supplier, which of the following factors would most likely impact the domestic manufacturing operations?

Options:

A.  

Direct cost of the component

B.  

Supplier lead time fluctuations

C.  

Accuracy of supplier forecasting

D.  

Transportation cost from the supplier

Discussion 0