A company is expanding its production capability. A project manager is assigned to bring a team of stakeholders together to conduct an analysis of the situation and develop a plan. During the analysis, the project manager gains an understanding of what resources stakeholders are willing to commit, the stakeholders' expectations, and what the stakeholders have to gain from the project. This analysis is MOST likely to identify which of the following?

Reducing the number of items that perform the same or similar function is known as

Over the past 90 days, a buying company's manufacturing engineers have reported an increase in the number of defective parts received from a key supplier. The engineers report that there are three different types of defects occurring, and that they are all being discovered during production. The supplier states that it does not have enough resources to assess the root cause of the three types of defects all at one time. Which of the following should the buying firm do in this instance?

A supply manager is analyzing potential costs associated with the raw materials needed for a new product launch. Tooling costs are known, but the range of forecasts for future sales—and therefore demand for materials-varies widely. Given these circumstances, the supply manager should consider using which of the following?

Based on the global reach and complexity of supply chains, resiliency planning and risk assessment are necessary because of which of the following’

A supply manager oversees three distribution centers. Which of the following will be MOST useful for understanding the capacity of these centers7

A company that manufactures rubber balls wishes to discontinue production and move into the golf ball industry. Consider the following steps in the disposition of the current inventory of rubber balls:

I. Dispose of the rubber balls per local regulations

II. Sell the rubber balls on the open market

III. Grind up the rubber balls and donate the material for a playground in the community

IV. Work with engineering to determine if the rubber can be used in the new golf ball line

In order to maximize recovery of its investment, which of the following is the BEST order for the application of these steps (from first to last)?

Which of the following buying strategies refers to planning inbound material purchases and flows without the need for significant inventory levels7

A company supply manager conducts a review of current freight contracts and finds that payments to the primary carrier for outbound shipments have been based on a published rate schedule, which is revised annually. The supply manager believes the shipping costs may be higher than necessary. In order to reduce outbound transportation costs, which of the following should the supply manager do FIRST’

A manufacturer of gas-powered motors realigns its supply chain to fit a new business segment. In the past, the firm focused on customized designs. Now, it wishes to compete in the electric motor market, which is highly competitive and price-sensitive. Given this situation, which of the following will ensure that the firm has the proper planning in place?

FGH, Inc. is a beverage manufacturer. FGH is having difficulty coordinating daily delivery requirements of bottles from Supplier X. Delivery schedules are set weekly, but often need to be changed. However, the supplier has otherwise established itself as reliable. In the hope of speeding up the replenishment process and reducing coordination efforts, FGH is prepared to share production and inventory information with Supplier X. In this situation, which of the following should FGH implement with Supplier X?

A firm collects the following forecasted and actual demand for a certain part:

PeriodForecastActual

KI30311

22531

32826

42520

What is the absolute value of the forecast error?

Which of the following is the GREATEST advantage of using component standardization in product design?

MNO, Inc. is a national retail home goods chain formed of local franchisees. Each franchisee uses its own returns processing systems. A key advertising point for MNO is its liberal return policy, which is part of its overall focus on excellent customer service. While feedback from customers is positive regarding MNO’s return policy, there have been inquiries as to why stores handle returns via different processes. MNO’s supply manager suggests the implementation of a reverse supply chain to deal with this issue and possibly yield cost enhancement opportunities. In order to implement this, which of the following is the FIRST course of action the supply manager should take’’

A manufacturer is working to standardize high-volume, low-cost hardware components used in its assembly process. The manufacturer wants to transfer some of the risks associated with inventory carrying costs, warehousing costs, and re-stocking costs to the supplier. Which of the following will be MOST useful in accomplishing this goal?

UVX, Inc. is seeking suppliers of components to be used in a new heavy equipment product UVX is introducing in the marketplace. The firm conducts a market intelligence analysis and spend analysis to determine feasibility. These findings are reported to the company stakeholders, who decide to produce 25 units every two weeks. UVX issues a solicitation for bids and includes the stakeholders' requirements with the specifications.

At the close of the bidding process, UVX receives one offer that can deliver enough components to produce 15 units every four weeks. The remaining potential bidders decline altogether, citing an inability to meet UVX’s specifications.

Which of the following should UVX have done in order to ensure a better response to the solicitation?

A distributor receives orders from a customer for the following parts:

PO1801: 6 pcs of Item #XYZ-06

3 pcs of Item #XYZ-09

PO1802: 3 pcs of Item #XYZ-09

Item #XYZ-06 is currently out of stock. The shipping manager contacts the customer, who gives authorization to ship the available parts and back order the rest. What is the line count fill rate for the customer?

Which of the following is the PRIMARY benefit of project governance?

In preparation for a new product launch, a company reviews the production capabilities of several regional plants in comparison with anticipated demand. Plant A is expected to have the highest demand, but consistent supply of parts is less reliable there than in other locations. The firm locates a supplier near the plant, which, although qualified, currently does not have enough space to store the large volume of finished parts Plant A will need for production. However, this supplier plans to expand.

To support plant operations during new product ramp-up, which of the following is MOST likely to be effective?

A firm completes its near level production, five-month demand plan for the next business planning cycle:

Month 1Month 2Month 3Month 4Month 5

Demand Forecast15,00020,00025,00025,00018,000

Production Plan (Regular Time)20,00020,00020,00020,00018,000

Production Plan (Overtime)5,000

Ending Inventory5,0005,000

Average Inventory2,5005,0002,500

Workforce PlanningStarting WorkforceMonth 1Month 2Month 3Month 4Month 5

Hires7

Layoffs2

Actual Workforce Size132020202018

Regular Time Hours Required2,0002,0002,0002,0001,800

Overtime Hours Required500

Costs

Regular time cost per unit$15

Overtime cost per unitS25

Monthly inventory cost per unit$1

Cost of hire$1,500

Cost of layoffS400

What is the cost of this demand plan?

An organization purchases materials beyond current and anticipated requirements in expectation of a price increase or shortage, in the hope that it will profit from the sale of the materials at a later date. This describes which of the following buying strategies?

Through cycle counting, a supply manager learns that inventory inaccuracies are being caused by errors made when received goods are entered into the company's enterprise business system. Which of the following is the FIRST course of action the supply manager should take to reduce these inaccuracies?

Which of the following describes a market structure where there are few sellers and many buyers and where price is controlled by either an industry leader or a cartel?

A supply manager learns that parts used in manufacturing are arriving scratched and must be polished before use, thereby hampering production. Sending the parts back to the supplier is not an option, as they are needed to meet increased demand. Which of the following will be MOST helpful in resolving this problem?

RST, Inc. is an electronics manufacturer. The profit margins for a major product developed by RST are falling. Accordingly, the firm asks the supply manager to identify ways to reduce the product's costs. The product includes a high-tech, high-cost component for which only one source is able to meet quality standards. Which of the following is the BEST way the supply manager can achieve cost reductions from this supplier?

A supplier of aircraft seating receives a forecast from a major aircraft manufacturer. The forecast information is considered confidential, and thus the supplier must sign a Non-Disclosure Agreement (NDA). Given this situation, which of the following is MOST likely to be protected by the NDA?

At the beginning of each year, a large firm’s indirect procurement organization holds a brainstorming session. These sessions produce many great ideas and foster support among the procurement team. However, after a few years, support for the brainstorming sessions begins to diminish, and the projects discussed are pushed aside in order to deal with more pressing issues. In this situation, which of the following would be the BEST course of action to take?

A manufacturer is concerned that excess packaging materials used for a product will send the wrong message to consumers who may have selected the product based on its sustainable design. How can supply management positively impact this situation?

Analysis of inventory turnover is generally considered part of what status assessment ratio?

A cell phone retailer experiences excess inventory of a particular model due to errors in demand forecasting. In addition, remorse returns of this model are greater than anticipated. Which of the following is the BEST course of action the company can take to recover value from these assets?

A manufacturer purchased a piece of production equipment over 20 years ago. The equipment is still in use, though for the last few quarters, it has been getting more difficult to keep it operational, as many of the required components are turning obsolete. According to the service agreement, the supplier must ensure the availability of the component parts for 3 more years. In this situation, the buying firm should expect that the supplier will

During an inventory review, a supply manager confirms that parts used for the maintenance of equipment sold during the previous year are still being stored in the warehouse. These parts cannot be used on current equipment. Which of the following BEST describes these parts’

Which of the following refers to an operations management philosophy whose objective is to reduce waste and cycle time?

DFG Inc. has been experiencing declining sales in its consumer division. After analyzing its sales data, the company determines that racial and ethnic minorities are underrepresented as consumers of its products. DFG decides to focus on increasing its appeal to these groups. DFG's products are of excellent quality and value, and the firm believes that its sales are weak with this segment because of a lack of knowledge about DFG and its products.

Which of the following is the FIRST step that DFG should undertake?

Which of the following refers to the exporting of a product by a country or company at a price that is lower in the foreign importing market than the price charged in the exporter's domestic market?

The sourcing manager for a regional retail bakery chain reviews order quantities and stocking for perishable condiments on a quarterly basis. Which of the following factors should be the MOST critical consideration in this analysis?

Which of the following will be MOST useful for measuring service quality?

A company purchases raw materials from a domestic supplier that offers competitive overland transportation rates. The firm requires the goods be delivered to its manufacturing plant. Which of the following Incoterms® 2020 rules should be used if the firm wants risk to transfer at the manufacturing plant?

Which of the following modes of transportation BEST promotes international trade and offers a low cost option fortransporting large quantities of product?

A firm hires a new staff member in its warehousing department. As a FIRST step in the training of this employee, the warehouse manager should

A project charter addresses which of the following areas?

A scientific equipment company wants to encourage its key suppliers to participate in the firm's quality certification program. The process is detailed and time-consuming. Which of the following is likely to be the GREATEST benefit to the buying organization?

A buyer is reviewing a quote for a shipment of electronic materials from Europe to Africa. The supplier offers a reasonable price for the materials and plans to deliver them using its regular shipping service. The terms are such that the buying company takes possession of the goods once they are loaded onto a boat in Europe. Which of the following information should be of GREATEST concern to the buyer?

Which of the following forecasting methods is regarded as participatory7

A vice president (VP) of supply management receives numerous complaints regarding the length of time it takes to receive products after they have been ordered. This has resulted in the company losing business due to late customer deliveries. Which of the following is the FIRST step the VP should take in order to address this issue?

A large retailer and one of its suppliers establish a process to combine intelligence from both organizations in order to improve product availability while reducing inventory, transportation, and logistics costs. This process is known as which of the following?

A firm needs to provide raw materials to accommodate a recent increase in manufacturing production. The supply manager uses the material forecast from the material requirements planning (MRP) software and the storage capacity from the warehouse management system (WMS) to forecast the firm's requirements. Which of the following will impact this forecast MOST significantly?

A manufacturing firm redesigns its premier product to benefit from material standardization. This will entail re-tooling its manufacturing facility. The firm conducts a cost analysis using net present value (NPV) and considers four options. Option 1 is to make no change at all. Options 2, 3, and 4 represent different re-tooling configurations. The discount rate for NPV calculation is 10% per annum, and material costs are fixed for the next 3 years. The firm follows a three-year planning cycle and wishes to apply NPV over that time period to the calculations:

Option 1Option 2Option 3Option 4

Re-tooling Costs$0$500,000$800,000$950,000

Annual Material Costs$1,100,000$900,000$800,000$750,000

NPV = £ r.i (l*r/

What is the 3-year NPV of the best option’

DEF, Inc. is in the ramp-up phase of a unique medical device. The device has a two-year life expectancy. The sales forecast for the ramp-up period is as follows:

MonthJulAugSepOctNovDecJanFeb

Unit Sales1001502006001,4002,2004,00010,000

Demand after February is expected to remain at 10,000 units per month for several months, then decrease gradually. The units are small, and thus maintaining an inventory of up to 10,000 units is possible.

There are only three suppliers capable of providing the specialized component critical to this product. The production capacities of these suppliers are as follows:

•Supplier X has a capacity of 500 units per month at a cost of S20 per unit, representing 80% of its total business

•Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its total business

•Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its total business

Two of these companies—Supplier X and Supplier Y—are minority businesses.

Given this situation, DEF should contract with

A supply manager is tasked with assisting internal customers in refining their budgets and planning future sourcing. The supply manager works with the firm's marketing director on a budget which includes a large direct mail campaign and the revision of promotional materials for several products.

Six months later, marketing has nearly exhausted the budget due to cost increases in paper and printing, even though the marketing campaign's scope has not changed. Which of the following did the supply manager and marketing director fail to consider?