NEW QUESTION 1
Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?

• A. Use a more rapid transportation mode.
• B. Increase safety stock.
• C. Extend product warranty.
• D. Employ lean principles.

Answer: D

NEW QUESTION 2
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 3
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?

• 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.

Answer: B

NEW QUESTION 4
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 5
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:

• 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.

Answer: D

NEW QUESTION 6
How does a mass customization product design strategy relate to component commonality, modular design, and product universality?

• A. Modular design is necessary for mass customization.
• B. Component commonality does not support mass customization.
• C. Universality is a prerequisite for mass customization strategy.
• D. Both universality and modular design are required for mass customization.

Answer: A

NEW QUESTION 7
A firm has identified key benefits for developing a strategic alliance and has selected appropriate supply chain partners. Which of the following actions should the firm take to build a successful alliance with a supplier who is also a competitor?

• A. Establish an internal committee to limit shared information.
• B. Negotiate contracts that maximize the firm's profits.
• C. Instruct employees to ignore the competitive aspect of the relationship.
• D. Encourage employees to cooperate with the supplier.

Answer: D

NEW QUESTION 8
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?

• A. Group
• B. Channel
• C. Regional
• D. Location

Answer: B

NEW QUESTION 9
The implementation of major enterprise-wide changes to eliminate or significantly reduce waste is related to which of the following concepts?

• A. Kaizen
• B. Kanban
• C. Six Sigma
• D. Lean

Answer: D

NEW QUESTION 10
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?

• A. $ 5,400
• B. $ 9,000
• C. $15,000
• D. $25,000

Answer: B

NEW QUESTION 11
A distributor has a network consisting of a central distribution center serving five regional distribution centers that ships to multiple retailers. The distributor wants to reduce inventory while maintaining product availability. Which of the following actions is most likely to produce the desired outcome?

• A. Centralizing inventory for slow-moving items
• B. Reducing the quoted price for slow-moving items
• C. Implementing cross-docking at the central distribution center
• D. Implementing continuous replenishment at the regional centers

Answer: A

NEW QUESTION 12
Which of the following costs is an example of ordering cost?

• A. Inspection labor
• B. Obsolesence
• C. Cost of capital invested
• D. Insurance

Answer: A

NEW QUESTION 13
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 14
Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?

• 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.

Answer: B

NEW QUESTION 15
If a firm has 35 days of accounts payable outstanding and 55 days invested in inventory, and its cash-to-cash cycle time is 90 days, what is the number of days of accounts receivable?

• A. 70
• B. 90
• C. 110
• D. 180

Answer: A

NEW QUESTION 16
Effective sales and operations planning (S&OP) can contribute most to which of the following objectives?

• A. Increasing product quality
• B. Increasing the number of new customers
• C. Reducing unexpected customer requests
• D. Reducing excess inventory

Answer: D

NEW QUESTION 17
Variation in upstream requirements can be reduced by increasing:

• A. demand visibility.
• B. production capacity.
• C. product features.
• D. safety stock.

Answer: A