NEW QUESTION 1
A company that manufactures complex mechanical assemblies to customer order and ships them directly to the customer is implementing manufacturing cells. The benefit most likely to result from this effort is a reduction in the:

• A. number of component shortages.
• B. production planning horizon.
• C. time to fill customer orders.
• D. response time to a request for quote.

Answer: C

NEW QUESTION 2
The probability of customer dissatisfaction is highest when which of the following conditions exists?

• A. Customer expectations are clearly defined.
• B. Supplier execution is too low.
• C. There is a gap between expected performance and perceived performance.
• D. There is a gap between what was indicated and what was accomplished.

Answer: C

NEW QUESTION 3
An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in:

• A. prices to the end user.
• B. supply chain cost of sales.
• C. the manufacturer's inventory.
• D. the total supply chain inventory.

Answer: D

NEW QUESTION 4
A primary reason for enhancing supply chain security is to:

• A. meet government requirements.
• B. reduce insurance costs.
• C. improve lead time.
• D. protect brand image.

Answer: D

NEW QUESTION 5
Which of the following actions is most likely to increase total supply chain risk?

• A. Standardizing components used in a product family
• B. Expanding operations to multiple locations
• C. Consolidating manufacturing locations
• D. Reducing the supplier base for commodity-type components

Answer: C

NEW QUESTION 6
Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?

• A. Reducing the size of the sales force by automating activities
• B. Gaining a better understanding of customer requirements
• C. Implementing automated inter-organizational processes
• D. Focusing sales efforts on the most profitable customers

Answer: B

NEW QUESTION 7
A firm experiences a supply chain interruption from a second-tier supplier. Which of the following actions is the firm likely to take to minimize future interruptions?

• A. Require the supplier to submit weekly cycle count reports.
• B. Require the supplier to implement a sales and operations planning process.
• C. Map the supplier's supply chain to identify risks and opportunities.
• D. Conduct an ISO 14001 audit of the supplier.

Answer: C

NEW QUESTION 8
Continuous improvement is best described as:

• A. a never-ending effort to expose and eliminate root causes of problems.
• B. a never-ending effort by the management team to reduce cycle time.
• C. identifying and implementing big-step improvements within a process.
• D. a process in which a supplier commits to replenishing inventory based on demand without receiving replenishment orders.

Answer: A

NEW QUESTION 9
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

NEW QUESTION 10
Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

• A. Production equipment productivity
• B. Net asset turnover
• C. Value-added productivity per employee
• D. Upside flexibility

Answer: B

NEW QUESTION 11
The customer who provides point-of-sale data remains the sole decision-maker regarding order quantities when what type of inventory strategy is used?

• A. Continuous replenishment
• B. Advanced continuous replenishment
• C. Vendor-managed replenishment
• D. Quick response

Answer: D

NEW QUESTION 12
Which of the following outcomes most likely is the primary reason for outsourcing production of a new product?

• A. Increase control of the supply chain
• B. Increase flexibility of the supply chain
• C. Reduce required capital investment
• D. Reduce the need for skilled workers

Answer: C

NEW QUESTION 13
A company that locates manufacturing facilities in different countries so that an economic downturn in one country most likely will be offset by business in another country is employing what type of strategy?

• A. Speculative
• B. Hedge
• C. Flexible
• D. Forecast

Answer: B

NEW QUESTION 14
Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange?

• A. Expensive material that is critical to the finished good
• B. Expensive material for which there are several substitutes
• C. Inexpensive material that is critical to the finished good
• D. Inexpensive material for which there are many sources

Answer: D

NEW QUESTION 15
Which of the following measures typically would be considered an aspect of the environmental impact of a supply chain?

• A. Amount of funds invested in infrastructure improvements
• B. Hours of employee education about environmental stewardship
• C. Weight and volume of packaging materials used
• D. Total number of people making a living wage

Answer: C

NEW QUESTION 16
A project team has received 30 improvement ideas from subject matter experts in the business. Which of the following continuous improvement tools would be most appropriate to use to sequence implementation timing based on an agreed-upon weighted criteria?

• A. Affinity diagram
• B. Matrix diagram
• C. Prioritization matrix
• D. Interrelationship digraph

Answer: C

NEW QUESTION 17
Which of the following types of strategies minimizes inventory throughout the supply chain to avoid obsolescence?

• A. Delayed differentiation
• B. Low costs
• C. Location
• D. Response

Answer: A