NEW QUESTION 1
Which of the following levels in a supply chain network represents the most upstream external activity?

• A. Supplier to contractor
• B. Manufacturing to supplier
• C. Customer to distribution
• D. Customer to contractor

Answer: A

NEW QUESTION 2
A company used Global Reporting Initiative guidelines to complete a self-assessment. Which of the following actions would be the most appropriate next step?

• A. Share information with all stakeholders
• B. Obtain top management support
• C. Identify action items
• D. Conduct gap analysis

Answer: D

NEW QUESTION 3
The logistics value proposition involves matching:

• A. identification of appropriate sourcing partners with service reliability metrics.
• B. activity-based costing practices with supply chain financial strategy.
• C. cost minimization practices with balanced scoreboard performance.
• D. operating competency and commitment with key customer requirements.

Answer: D

NEW QUESTION 4
Which of the following outcomes is most likely a result of allocating excess capacity to a supply chain facility?

• A. Lower utilization which leads to higher cost
• B. Higher utilization which leads to higher cost
• C. Higher utilization which leads to lower cost
• D. Lower utilization which leads to lower cost

Answer: A

NEW QUESTION 5
A return material authorization (RMA) policy is used in reverse logistics to:

• 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.

Answer: C

NEW QUESTION 6
A consumer goods manufacturer has introduced a new frozen product and encountered problems applying package labels consistently. Which of the following methodologies would be most appropriate to use to identify the root cause of the problem?

• A. Six sigma
• B. Statistical process control
• C. Lean production
• D. Theory of constraints

Answer: A

NEW QUESTION 7
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:

• 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.

Answer: D

NEW QUESTION 8
Compared to the traditional enterprise resources planning (ERP) system, an electronic business system (EBS) is preferred for today's e-business solution because EBS:

• A. is more flexible and functional.
• B. is the backbone of outsourcing services.
• C. has converged with Web-based applications to form a grouping of business software functions.
• D. encompasses e-procurement as a traditional purchasing function.

Answer: C

NEW QUESTION 9
Which of the following supply chain attributes is most appropriate for products with wide variety and highly variable demand?

• A. Efficient
• B. Responsive
• C. Short
• D. Virtual

Answer: B

NEW QUESTION 10
Which of the following manufacturing strategies would run the greatest risk of increasing obsolete inventory costs?

• A. Make-to-stock
• B. Assemble-to-order
• C. Make-to-order
• D. Engineer-to-order

Answer: A

NEW QUESTION 11
Medium-term demand management projections are used primarily to:

• A. complete strategic business planning of facilities.
• B. complete forecasts at the item level.
• C. aggregate demand for production planning.
• D. develop the master production schedule.

Answer: C

NEW QUESTION 12
The United Nations Global Compact uses 10 guiding principles to:

• 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.

Answer: D

NEW QUESTION 13
A company has adequate average available capacity but does not maintain surge capacity. With a distribution route to manage, which of the following actions will provide the most capacity relief?

• A. Increasing order-fulfillment lead times
• B. Implementing allocation
• C. Increasing prices with a 30-day effective date
• D. Increasing product queue times

Answer: A

NEW QUESTION 14
In an assemble-to-order manufacturing environment, the master production schedule is
typically the schedule of:

• A. resources.
• B. customer orders.
• C. components and subassemblies.
• D. the final assembly.

Answer: C

NEW QUESTION 15
ABC Corporation is implementing a website that connects clothing distributors and retailers with many different garment manufacturers from whom they can buy finished goods. This website would be an example of:

• A. virtual auction site.
• B. intranet commerce.
• C. a vertical exchange.
• D. an Internet storefront.

Answer: C

NEW QUESTION 16
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 17
A procurement manager wants to reduce costs on commodity items. Which of the following actions is likely to result in the greatest savings?

• A. Conducting a supplier review and recertification
• B. Renegotiating contracts with commodity suppliers
• C. Standardizing and eliminating redundant items
• D. Leveraging group purchasing power

Answer: D