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NEW QUESTION 1
Which of the following statements is true when a contract manufacturing agreement is implemented?
- A. There is no longer a need for material requirements planning.
- B. The total cost of acquiring products will decrease.
- C. Communications and project management are key factors for success.
- D. Assets on the contract manufacturer's balance sheet typically will decrease.
Answer: C
NEW QUESTION 2
Which of the following outcomes occurs when direct shipping is used instead of a distribution network?
- A. Outbound transportation cost is reduced.
- B. Inventory velocity is reduced.
- C. Order-fill rates are reduced.
- D. Inventory obsolescence is reduced.
Answer: D
NEW QUESTION 3
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?
- 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.
Answer: C
NEW QUESTION 4
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 5
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 6
Which of the following conditions are most indicative of a company that is effectively managing its cash?
- A. Low accounts receivable, low inventory, high accounts payable
- B. High accounts receivable, low inventory, high accounts payable
- C. Low accounts receivable , high inventory, low accounts payable
- D. High accounts receivable, high inventory, low accounts payable
Answer: A
NEW QUESTION 7
Which of the following benefits should a supplier expect to receive by becoming a certified supplier?
- A. Reduction in redundant processes with buyer
- B. Increase in price of items sold
- C. Increase in access to competitive information
- D. Reduction in number of items utilizing vendor-managed inventory
Answer: A
NEW QUESTION 8
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:
- A. fourth party logistics providers.
- B. third party logistics providers.
- C. retail services providers.
- D. distribution services providers.
Answer: B
NEW QUESTION 9
Which of the following metrics is the most appropriate measure of supply chain responsiveness?
- A. Order fulfillment lead times
- B. Percentage of orders delivered on time
- C. Retail inventory days of supply
- D. Upside production flexibility
Answer: D
NEW QUESTION 10
Customizing can be an effective warehousing strategy because it allows a company to:
- 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.
Answer: D
NEW QUESTION 11
When evaluating several possible supply chain options, a firm considering the minimal total cost should:
- A. ensure that the inventory levels are as low as possible to minimize holding costs while still providing adequate customer service.
- B. account for the combined costs of holding buffer inventory and incurring inventory shortages.
- C. consider the costs of acquiring, holding, and transporting inventory, and of servicing customers.
- D. place buffer inventory in the lowest cost locations that meet lead time and service level requirements from customers.
Answer: C
NEW QUESTION 12
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:
- A. $29,000,000.
- B. $15,750,000.
- C. $10,500,000.
- D. $ 5,250,000.
Answer: D
NEW QUESTION 13
Which of the following actions typically would be the first step in implementing the philosophy of customer relationship management?
- 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
Answer: A
NEW QUESTION 14
Variability in product design can best be reduced by:
- A. initiating 100% product inspection.
- B. outsourcing the design process.
- C. broadening design specifications.
- D. applying Six Sigma principles.
Answer: D
NEW QUESTION 15
A company that produces standardized products and sells them through retailers via a responsive transportation system has decided to expand its sales with an online store for customized products. Which of the following distribution strategies would be the most appropriate for the business-strategy change?
- A. Local distribution centers serving retailers and online sales
- B. Centralized cross-docking facilities serving retailers and online sales
- C. A centralized distribution center serving retailers and direct shipment from the factory serving online sales
- D. A centralized distribution center serving retailers with transshipment arrangements serving online sales
Answer: C
NEW QUESTION 16
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:
- A. customer focus and alignment.
- B. forecast accuracy.
- C. multiple downstream channels.
- D. multiple upstream supply chains.
Answer: D
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