NEW QUESTION 1
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?

• A. Manufacturer's volume flexibility
• B. Order-fulfillment lead times
• C. Distributors' order-fill rates
• D. Supply chain inventory days of supply

Answer: C

NEW QUESTION 2
Compared to a global strategy, a multicountry strategy would be characterized by:

• A. strategy coordination across countries.
• B. preferred suppliers located in host countries.
• C. major strategic decisions coordinated centrally.
• D. products adapted to local needs.

Answer: D

NEW QUESTION 3
Incorporating information technology into its supply chain allows a company to efficiently:

• A. collect, store, encode, process, analyze, transmit, receive, and print data.
• B. manage order entry, scheduling, warehousing, and order tracking.
• C. incorporate elements of Six Sigma into supplier relationships.
• D. upgrade enterprise resources planning revisions in a timely and secure manner.

Answer: A

NEW QUESTION 4
A company develops annual forecasts for key products and enters into annual contracts with key suppliers based on the forecasts. Which of the following benefits would the company most likely receive from this approach?

• A. Shorter delivery lead times
• B. Lower prices
• C. Improved service
• D. Higher-quality products

Answer: B

NEW QUESTION 5
Which of the following ISO standards is used to assist organizations with sustainable development?

• A. ISO 31000
• B. ISO 14001
• C. ISO 26000
• D. ISO 9001

Answer: C

NEW QUESTION 6
Which of the following behaviors is appropriate for a progressive company that is responding to changes in its supply chain?

• A. Pursuing cost reduction continuously
• B. Developing multiple supply chains for different product lines
• C. Ensuring demand before committing to a change in the supply chain
• D. Designing products for maximum lifetime

Answer: B

NEW QUESTION 7
What are the three principle categories of forecasting methods?

• A. Seasonal, trend, and promotional events
• B. Moving average, exponential smoothing, and Holt-Winters
• C. Qualitative, extrinsic, and intrinsic
• D. Annual, monthly, and daily requirements

Answer: C

NEW QUESTION 8
Which of the following activities is critical to successful synchronization of supply and demand throughout a supply chain?

• A. Sharing demand information
• B. Placing large orders to obtain lower prices
• C. Reducing the number of deliveries
• D. Maintaining increased inventories

Answer: A

NEW QUESTION 9
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?

• A. Public warehouse
• B. Value-added territory
• C. Free trade zone
• D. Customs clearing house

Answer: C

NEW QUESTION 10
A firm has increased finished-goods inventories for several products to compensate for increased variability in demand. The firm analyzed shipment data and determined that the variability was due to a few customers placing large orders for single shipments to obtain discounts. Which of the following actions is the firm most likely to take to maintain sales and reduce variability in demand?

• A. Reducing discounts for large orders
• B. Encouraging high-volume customers to place blanket orders
• C. Implementing extrinsic forecasting methods
• D. Increasing the level of safety stock on high-volume products

Answer: B

NEW QUESTION 11
Which of the following statements best identifies the value of using a supplier rating system?

• A. It provides an objective means for a company to determine outstanding suppliers.
• B. It allows customers to post chargebacks to suppliers.
• C. It offers a company an effective way to control suppliers' delivery processes.
• D. It ensures that all suppliers are using the same quality standards to manufacture products.

Answer: A

NEW QUESTION 12
A firm expands distribution of its products into additional countries. Some customers initiate order batching, which could lead to which of the following outcomes?

• A. Bullwhip effect
• B. Price fluctuations
• C. Rationing
• D. Better forecasting

Answer: A

NEW QUESTION 13
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?

• A. Activity based
• B. Stakeholder focused
• C. Financial sustainability
• D. Value chain

Answer: C

NEW QUESTION 14
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?

• A. ISO 14000
• B. Global Reporting Initiative (GRI)
• C. ISO 26000
• D. UN Global Compact

Answer: A

NEW QUESTION 15
When trying to decide whether to outsource its customer relationship management function, a company primarily should consider which of the following factors?

• A. Location of the service provider
• B. Internal controls of the company
• C. Compatibility of computer hardware
• D. Transaction costs

Answer: B

Explanation: A grocery store found that ground beef sales increased when buns were a featured sales item. This customer relationship management technique is called:
A. data mining.
B. data tracking.
C. contact management.
A. D. order entry. Answer: A

NEW QUESTION 16
When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements?

• A. Loyalty
• B. Scoring
• C. Segmentation
• D. Prospecting

Answer: C

NEW QUESTION 17
Which of the following statements indicates an attribute of international commercial terms (Incoterms)?

• 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.

Answer: B