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NEW QUESTION 1
Which of the following factors is the most important driver of supply chain change?
- A. Health and safety concerns
- B. Competitor actions
- C. Government regulations
- D. Customer perceptions of value
NEW QUESTION 2
In determining warehouse velocity, the average inventory level is calculated by dividing the
annual sales through the warehouse by the:
- A. total square footage of the warehouse.
- B. inventory turnover rates for the warehouse.
- C. annual weight through the warehouse.
- D. annual cube through the warehouse.
NEW QUESTION 3
Use of a centralized distribution center rather than a decentralized distribution network typically results in which of the following consequences?
- A. Distribution system overhead is higher.
- B. Customer delivery time is shorter.
- C. Total transportation costs are lower.
- D. Safety stock levels are lower.
NEW QUESTION 4
A key assumption of the economic order quantity (EOQ) is that:
- A. future demand cannot be projected.
- B. the rate of demand is continuous and constant.
- C. reorder frequency is fixed.
- D. as the lot size decreases, the setup cost per unit decreases.
NEW QUESTION 5
Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:
- A. wider variety.
- B. shorter lead time.
- C. higher profit margins.
- D. lower sales volumes.
NEW QUESTION 6
Which of the following techniques allows users to automate the notification of appropriate parties when exceptions to specific business rules occur?
- A. Enterprise resources planning
- B. Supply chain event management
- C. Advanced planning and scheduling
- D. Automatic identification and data capture
NEW QUESTION 7
What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?
- A. Reduced need for bar codes and radio frequency identification technology
- B. Reduced material handling costs
- C. Ease of control and count accuracy
- D. Maintain a cleaner shop floor
Explanation: Topic 3, Implementation and Operations
NEW QUESTION 8
A company has been delivering a global product that no longer appears profitable. Senior management’s best response is to:
- A. analyze product profitability by market segment.
- B. discontinue the product based on eroding profitability.
- C. provide additional incentives to the sales force.
- D. increase promotional activity across all markets.
NEW QUESTION 9
A product design that can be produced to requirements even when conditions in the production process are unfavorable typically is known as what type of design?
- A. Universal
- B. Computer-aided
- C. Modular
- D. Robust
NEW QUESTION 10
The most common method for coping with demand variability in the manufacture of products with a lengthy cycle time is to have:
- A. higher raw material inventory.
- B. higher finished-goods inventory.
- C. lower finished-goods inventory.
- D. lower raw material inventory.
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
NEW QUESTION 12
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.
NEW QUESTION 13
One of the first steps in devising an effective supply chain strategy within a company is to analyze a product's:
- A. nature of demand.
- B. backlog position.
- C. forecast bias.
- D. sales performance.
NEW QUESTION 14
Which of the following activities is forbidden in a foreign trade zone?
- A. Remarking or repackaging imports to avoid fines
- B. Breaking up large shipments to reduce import duties
- C. Reexporting goods without paying duties
- D. Conducting retail trade
NEW QUESTION 15
A manufacturer has direct relationships with its tier 1 suppliers. Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?
- A. Provides smaller lot sizes
- B. Provides components with short lead times
- C. Provides Just in Time deliveries
- D. Provides information about impending shifts in the economy
NEW QUESTION 16
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
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