Correct 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: - 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
When scheduling a constrained resource, which of the following actions should be taken?
- Correct answer-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? - Correct answer-97.6%
Which could be used to produce a more accurate and useful SWOT analysis? - Correct
answer-Voluntary use of ISO 31000 Series Standards
A focus on quality, affordability, or availability indicates a focus on which of the following? -
Correct answer-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? - Correct answer-Total safety
stock will decrease.
,Which of the following is a benefit of effective supply chain management? - Correct
answer-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? - Correct answer-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? - Correct answer-Trade disruption insurance
Which of the following categories of cost would a retailer typically include in the cost of
carrying inventory? - Correct answer-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: - Correct answer-meeting
customer wants and needs.
Which is a best practice for expediting transportation? - Correct answer-Track the
percentage of orders expedited and the marginal costs of expediting.
Volume growth is a key performance indicator for which of the following? - Correct
answer-Product merchandizing
Which of the following two warehouse functions share the same benefit of having
consolidated, full-trailer shipments into and/or out of the facility? - Correct answer-Cross-
dock and break-bulk
Which of the following statements about customer segmentation is true? - Correct
answer-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? - Correct answer-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? - Correct answer-
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: - Correct answer-timely
detection of problems.
What will happen with a time-series forecast if strong seasonality is not removed prior to
forecasting? - Correct answer-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: - Correct answer-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? - Correct answer-Safety stocks and buffers
What technologies form the foundation of an intelligent supply chain because one
provides input data at a much finer grained level of detail than otherwise possible and the
other enables each object providing that data to have a "digital twin?" - Correct answer-
Internet of Things (IoT) and intelligent asset management (IAM)
A manufacturer in a highly competitive industry wants to improve efficiency and lower
overall costs for its products by increasing information sharing and collaboration with
multiple suppliers and distribution partners. It is exploring a business-to-business
exchange to facilitate this effort. Which ownership model would work best for the
manufacturer? - Correct answer-Virtual trading exchange
Organizations implementing a six sigma strategy are attempting to: - Correct answer-
reduce variability.
An appropriate use of an advanced planning and scheduling (APS) system is: - Correct
answer-identifying constraints within a facility.
If an organization wants to gain access to the U.S. Customs-Trade Partnership Against
Terrorism (C-TPAT) membership list of certified suppliers, it must: - Correct answer-