2025 QUESTIONS AND ANSWERS
A company manufactures a wide range of industrial and commercial cleaning supplies that it
sells to independent distributors that in turn sell to the end users. The market in which the
company operates demands a variety of package sizes and short delivery times. The action by
the company that is most consistent with its strategy and the demands of the marketplace in
which it operates would be to: - ANS convince key distributors to share demand data.
A toy manufacturer wants to use an auction to procure a large shipment of common screws at
the lowest possible cost. Which type of auction should the manufacturer use? - ANS Reverse
auction
An organization has pursued lean and Just-in-Time manufacturing and offshoring to a nearby
low-labor-cost country. Which of the following is a significant consequence of these actions on
the organization's supply chain? - ANS Increased risk
When scheduling a constrained resource, which of the following actions should be taken? -
ANS Ensure that there is a constant flow of work to the constrained resource.
An organization that uses standard costing is calculating the efficiency of its main
manufacturing facility over the last month. In any given week, the facility has 1,600 standard
hours of work. The hours actually worked over the last four weeks are as follows: week 1—
1,689, week 2—1,547, week 3—1,590, week 4—1,730. What is the total efficiency for the last
four weeks? - ANS 97.6%
Which could be used to produce a more accurate and useful SWOT analysis? - ANS Voluntary
use of ISO 31000 Series Standards
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,A focus on quality, affordability, or availability indicates a focus on which of the following? -
ANS Customer value
An organization has decided to reduce the number of distribution warehouses it uses to fulfill
customer orders. What will be the most likely result? - ANS Total safety stock will decrease.
Which of the following is a benefit of effective supply chain management? - ANS Reduced
variability of flows
A company wants to reduce the lead time of components and increase the on-time delivery
performance of suppliers. Which of the following processes needs to be implemented? -
ANS Collaborative planning, forecasting, and replenishment (CPFR)
What can be done about the risk of non-malicious information system failures causing an
inability to conduct business for a period? - ANS Trade disruption insurance
Which of the following categories of cost would a retailer typically include in the cost of
carrying inventory? - ANS Spoilage
A company has stated in its annual business report that its management philosophy is based on
the principles of total quality management (TQM). In order to ensure that TQM is effectively
implemented, the company should focus on: - ANS meeting customer wants and needs.
Which is a best practice for expediting transportation? - ANS Track the percentage of orders
expedited and the marginal costs of expediting.
Volume growth is a key performance indicator for which of the following? - ANS Product
merchandizing
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, Which of the following two warehouse functions share the same benefit of having
consolidated, full-trailer shipments into and/or out of the facility? - ANS Cross-dock and
break-bulk
Which of the following statements about customer segmentation is true? -
ANS Demographic segmentation is not based on data about actual customer buying
behaviors.
Which would be the fastest way for a fashion clothing company to get to market while also
minimizing demand mismatch risks? - ANS Look at street trends and buy appropriate fabrics
before the runway season.
How does demand-driven material requirements planning (DDMRP) minimize buffer
inventories while maintaining desired customer service levels? - ANS Dynamically adjusting
buffer levels based on daily reviews of how long customers will wait for orders
An advantage of cycle counting over annual physical inventory is: - ANS timely detection of
problems.
What will happen with a time-series forecast if strong seasonality is not removed prior to
forecasting? - ANS It will predict a downward swing in demand to keep on going down
indefinitely.
A check cashing company has developed a strategic supply plan for opening a number of new
stores. If a risk assessment shows that many organizations are considering converting from
paychecks to providing payroll cards, avoiding the need for their service, the supply plan
developer should: - ANS call out this risk to decision makers.
What needs to be phased out as part of an end-of-sales plan from a material requirements
planning perspective? - ANS Safety stocks and buffers
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