QUESTIONS and ANSWERS GRADED A+
An organization's core competency is in the service component of a product-service package,
and customers have praised their ability to quickly resolve problems. If most of these problems
are product quality issues, the bestway to improve this supply chain would be to: -
CORRECT ANSWER-replace the process value supply chain partners who have poor
quality.
,For smaller or less market-dominant organizations, which of the following would best ensure
that suppliers are complying with ethical standards? - CORRECT ANSWER-Use third-
party auditors agreed to by both parties.
A supply chain manager's superior asks her to draw up a project charter and be the project
manager on a project to continually improve inventory levels by conducting ongoing audits.
What should be clarified first? - CORRECT ANSWER-What will the end date for this
project be?
A company keeps running out of several inexpensive items that are critical to production. The
best solution for this problem is to: - CORRECT ANSWER-increase the minimum
inventory levels for the items.
Which is a reverse logistics best practice for an organization that places a strategic priority on
efficient, cost-effective returns processing and has the infrastructure to do this at high levels of
customer satisfaction? - CORRECT ANSWER-Retain the functions, but restrict returns
processing to selected facilities.
Successful implementation of customer relationship management (CRM) and supplier
relationship management (SRM) philosophies usually requires: - CORRECT ANSWER-
revision of decision-making processes.
, Which type of supply base analysis would best reveal areas where giving more business to
selected suppliers would have the most bottom-line impact? - CORRECT ANSWER-
Pareto ranking of categories by their average spend per supplier, ranked from lowest to highest
average spend
A chain of grocery stores has implemented a customer loyalty program that includes sending
customers coupons four times per year. The coupons are for items each customer has
frequently purchased in the past but has not purchased in the past three months. This program
would typically be considered an element of: - CORRECT ANSWER-customer relationship
management.
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: - CORRECT ANSWER-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? - CORRECT
ANSWER-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? - CORRECT ANSWER-Increased risk