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CSCP APICS Real Exam Questions 100 Free
CSCP APICS Real Exam Questions 100 Free
In addition to sales history, current customer orders, and forecasted demand, which of the
following data sources should be used as part of a demand management process?
A. Inventory levels
B. Contractual obligations
C. Customer profitability
D. Scheduled marketing activities
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Answer : D
Question No : 2 - Topic 1
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Answer : B
Question No : 3 - Topic 1
A firm supplies products and services to a wide variety of industries with varying
requirements for responsiveness and reliability. Many customers across these industries
are not satisfied with the firms ability to meet the lead time and on time delivery
requirements. Which of the following tools is most appropriate for the firm to use to improve
customer service?
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Answer : B
Question No : 4 - Topic 1
A manufacturer can simplify the forecasting process by pooling demand forecasts for a
product group and then:
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Answer : C
Question No : 5 - Topic 1
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Answer : D
Question No : 6 - Topic 1
The primary reason for a firm to pursue strategic supply chain activities is to:
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Answer : A
Question No : 7 - Topic 1
A firm supplies a single line of products to consumers using retail stores and on-line sales,
distributors, and wholesalers. Currently the firm has common pricing and response times
for sales in each sales channel. Which of the following tools is most appropriate to employ
to improve profitability?
A. Customer segmentation
B. Customer-facing ordering systems
C. Customer relationship management (CRM)
D. Supply Chain Operations Reference (SCOR®)
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Answer : A
Question No : 8 - Topic 1
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:
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Answer : D
Question No : 9 - Topic 1
Risk pooling enables a lower total inventory level without affecting service levels based on
which of the following assumptions?
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Answer : B
Question No : 10 - Topic 1
A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of
its trucks and now purchases transportation services from fleet operators. This is an
example of which of the following strategies?
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Answer : C
Question No : 11 - Topic 1
The process of gathering data about what customers need and ensuring that desired
features are included in the design and initial planning phase of a new product or service is
known as:
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Answer : B
Question No : 12 - Topic 1
Which of the following phrases most accurately describes the complete flow of demand
information?
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Answer : C
Question No : 13 - Topic 1
The factors to consider in the make-or-buy decision include costs, proprietary knowledge,
and:
A. design history.
B. available capacity.
C. inventory balance.
D. warehouse location.
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Answer : B
Question No : 14 - Topic 1
A. Product design
B. Selecting supporting information systems
C. Identifying labor force requirements
D. Identifying training programs
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Answer : B
Question No : 15 - Topic 1
The use of a seasonal index as a forecasting technique measures the ratio of the:
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Answer : A
Question No : 16 - Topic 1
A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%.
The company averages four inventory turns. The cost savings resulting from increasing
inventory turns from four to six would be:
A. $29,000,000.
B. $15,750,000.
C. $10,500,000.
D. $ 5,250,000.
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Answer : D
Question No : 17 - Topic 1
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Answer : B
Question No : 18 - Topic 1
Incorporating supplier input into product and process design helps to:
A. maintain quality.
B. stabilize product costs.
C. reduce time to market.
D. save costs to the buyer.
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Answer : C
Question No : 19 - Topic 1
Which of the following factors typically is the most significant impediment to implementing
collaborative commerce?
A. Technology barriers
B. Security
C. Corporate culture
D. Return on investment (ROI)
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Answer : C
Question No : 20 - Topic 1
The focus of collaborative supply chain management differs from a transactional approach
by its emphasis on the:
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Answer : C
Question No : 21 - Topic 1
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Answer : A
Question No : 22 - Topic 1
The primary reason for the evolution of the supply chain is:
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Answer : D
Question No : 23 - Topic 1
Which of the following marketing strategies emphasizes offering services at a lower price
than rival services with comparable features?
A. Cost leadership
B. Service differentiation
C. Customer focus
D. Market responsiveness
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Answer : A
Question No : 24 - Topic 1
Which of the following attributes typically makes reverse logistics processes more
complicated than outbound logistics processes?
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Answer : B
Question No : 25 - Topic 1
The value that logistics provides within the supply chain can best be summarized as:
A. satisfying customer expectations about availability and delivery at an acceptable total cost.
B. meeting promised location and on-time delivery goals with minimal use of expediting.
C. establishing inventory and delivery goals with various customers that fulfill the firm's profit objectives.
D. providing accurate in-transit and delivery information to customers and salespeople.
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Answer : A
Question No : 26 - Topic 1
Which of the following forecasting methods relies on the opinions of a panel of experts?
A. Delphi technique
B. Survey method
C. Causal method
D. Time series analysis
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Answer : A
Question No : 27 - Topic 1
After identifying the potential causes for delays in communicating demand information up
the supply chain, the trading partners should take which of the following actions?
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Answer : C
Question No : 28 - Topic 1
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Answer : C
Question No : 29 - Topic 1
Which of the following types of information would be an appropriate basis for a qualitative
forecast?
A. Leading indicators
B. Market research data
C. Order history
D. Shipment history
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Answer : B
Question No : 30 - Topic 1
The probability of customer dissatisfaction is highest when which of the following conditions
exists?
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Answer : C
Question No : 31 - Topic 1
A company plans to maximize profitability by charging more for its products at retail
locations than on its website. Which of the following segmentation strategies would best
support this plan?
A. Group
B. Channel
C. Regional
D. Location
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Answer : B
Question No : 32 - Topic 1
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.
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Answer : C
Question No : 33 - Topic 1
A company that produces standardized products and sells them through retailers via a
responsive transportation system has decided to expand its sales with an online store for
customized products. Which of the following distribution strategies would be the most
appropriate for the business-strategy change?
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Answer : C
Question No : 34 - Topic 1
A manufacturer uses standard costing, and a potential supplier uses activity-based costing.
This difference most likely will have implications for which of the following types of future
decisions?
A. Price concessions
B. Make-or-buy
C. Distribution warehouse locations
D. Freight terms
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Answer : B
Question No : 35 - Topic 1
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Answer : B
Question No : 36 - Topic 1
A firm has identified groups of customers based on specific characteristics the customers
desire from products and services the firm can provide. Characteristics include lead times,
pricing tiers, and service levels. The firm is engaged in which of the following activities?
A. Customer differentiation
B. Order winner segregation
C. Market segmentation
D. Channel definition
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Answer : C
Question No : 37 - Topic 1
Which of the following indicators is most appropriate to use as a measure of supply chain
utilization?
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Answer : B
Question No : 38 - Topic 1
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Answer : C
Question No : 39 - Topic 1
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Answer : A
Question No : 40 - Topic 1
Which of the following actions typically would be the first step in implementing the
philosophy of customer relationship management?
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Answer : A
Question No : 41 - Topic 1
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Answer : D
Question No : 42 - Topic 1
A large manufacturer wanting to be more competitive in the global market place decided to
outsource its transportation and return processing to other companies on a contractual
basis. The companies providing the services would be referred to as:
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Answer : B
Question No : 43 - Topic 1
A manufacturer of plastic components that are sold either directly or through distributors
wants to identify the requirements of the end customers for each market segment. Which of
the following approaches would be most appropriate?
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Answer : C
Question No : 44 - Topic 1
Companies are more likely to consider the consequences of their product design decisions
when they view the reverse supply chain as an extension of the:
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Answer : A
Question No : 45 - Topic 1
A company has been delivering a global product that no longer appears profitable. Senior
managements best response is to:
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Answer : A
Question No : 46 - Topic 1
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Answer : C
Question No : 47 - Topic 1
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Answer : A
Question No : 48 - Topic 1
Which of the following actions typically would be considered part of a reverse logistics
strategy?
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Answer : A
Question No : 49 - Topic 1
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Answer : D
Question No : 50 - Topic 1
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Answer : A
Question No : 51 - Topic 1
A. Modular logistics
B. Reverse logistics
C. Mixed model
D. Lateral
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Answer : B
Question No : 52 - Topic 1
Which of the following is the most important result when a company implements customer
relationship management?
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Answer : B
Question No : 53 - Topic 1
Which of the following results can be expected from sharing a common understanding of
demand and consumption patterns among supply chain participants?
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Answer : D
Question No : 54 - Topic 1
Using an independent service provider for logistics would be most appropriate in which of
the following situations?
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Answer : A
Question No : 55 - Topic 1
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Answer : C
Question No : 56 - Topic 1
A companys decision to charge different prices for the same service sold in different
market segments is most likely based on which of the following metrics?
A. Internal rate of return (IRR)
B. Lifetime customer value (LCV)
C. Net present value (NPV)
D. Return on investment (ROI)
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Answer : B
Question No : 57 - Topic 1
A media company offers a majority of its movies through a specific distributor. The media
company is beginning to produce content for a new foreign market to which the distributor
has exclusive access. To maximize savings and gain entry to this new market, the media
company should:
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Answer : C
Question No : 58 - Topic 1
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Answer : A
Question No : 59 - Topic 1
Which of the following practices has improved management of the customer pipeline?
A. Reverse auctions
B. Sales force automation
C. Finite capacity planning
D. Point-of-purchase metrics
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Answer : B
Question No : 60 - Topic 1
Which of the following benefits of supplier relationship management typically results from
collaboration with a few critical suppliers?
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Answer : C
Question No : 61 - Topic 1
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Answer : B
Question No : 62 - Topic 1
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Answer : C
Question No : 63 - Topic 1
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Answer : B
Question No : 64 - Topic 1
Reverse supply chain activity typically peaks nearest the beginning of which of the
following stages of the product life cycle?
A. Introduction
B. Growth
C. Maturity
D. Decline
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Answer : D
Question No : 65 - Topic 1
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Answer : B
Question No : 66 - Topic 1
Which of the following situations is an example of inventory being held as a way to balance
supply and demand?
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Answer : B
Question No : 67 - Topic 1
Supply chains delivering products or services are most able to respond quickly to changing
market requirements when:
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Answer : B
Question No : 68 - Topic 1
Which of the following levels in a supply chain network represents the most upstream
external activity?
A. Supplier to contractor
B. Manufacturing to supplier
C. Customer to distribution
D. Customer to contractor
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Answer : A
Question No : 69 - Topic 1
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Answer : D
Question No : 70 - Topic 1
When designing a supply chain for strategic advantage, a company first should consider:
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Answer : C
Question No : 71 - Topic 1
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Answer : C
Question No : 72 - Topic 1
A. Build-to-order scheduling
B. Push-pull replenishment
C. Collaborative planning, forecasting, and replenishment
D. Vendor-managed inventory
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Answer : C
Question No : 73 - Topic 1
A firm wants to lose customers that don't value the unique products and services the firm
offers and to attract and retain customers that want what the firm offers. Engaging in this
activity should allow the firm to:
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Answer : A
Question No : 74 - Topic 1
Which of the following consequences is a result of shipping directly from the point of
manufacture to the customer rather than through a distribution network?
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Answer : B
Question No : 75 - Topic 1
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Answer : D
Question No : 76 - Topic 1
Which of the following corporate strategies is most consistent with a flexible supply chain
strategy?
A. Being the low-price leader
B. Providing the highest-quality service
C. Providing mature products with stable sales
D. Emphasizing the quality of the product
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Question No : 77 - Topic 2
A manufacturer is the leader of a group of trading partners that are collaborating to improve
customer service levels and profitability. Which of the following methodologies would be
most appropriate for synchronizing supply and demand across the supply chain?
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Answer : A
Question No : 78 - Topic 2
Which of the following outcomes occurs when direct shipping is used instead of a
distribution network?
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Answer : D
Question No : 79 - Topic 2
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Answer : A
Question No : 80 - Topic 2
A. ISO 14000
B. Global Reporting Initiative (GRI)
C. ISO 26000
D. UN Global Compact
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Answer : A
Question No : 81 - Topic 2
Inventory parameters established using analytic inventory techniques typically are based
on balancing:
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Answer : B
Question No : 82 - Topic 2
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
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Answer : D
Question No : 83 - Topic 2
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Answer : B
Question No : 84 - Topic 2
A. comparison of key metrics for companies in the same industries across the globe.
B. feasible business plan that can be shown to global potential investors.
C. trusted and credible framework for reports regarding sustainability practices.
D. transparent collaboration between non-profit organizations and governments.
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Answer : C
Question No : 85 - Topic 2
A. Throughput
B. Cube utilization
C. Filled pallet positions
D. Labor efficiency
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Answer : A
Question No : 86 - Topic 2
Potential customers of a company's new product have tight tolerance requirements. The
company plans to purchase a critical component. To meet customer requirements, the
company should first:
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Answer : D
Question No : 87 - Topic 2
Which of the following processes would a company use to evaluate the risk profile for end-
of-life planning for a product family?
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Answer : B
Question No : 88 - Topic 2
A company that has consistently achieved a high level of on-time delivery performance has
decided to reduce its inventory level significantly. Which of the following outcomes is the
most likely effect of that decision on the company's on time delivery performance?
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Answer : B
Question No : 89 - Topic 2
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Answer : D
Question No : 90 - Topic 2
A corporation must consider which of the following factors when selecting its enterprise
resources planning system?
A. Uniqueness of operations
B. Corporate profitability
C. MRP and MRP II processing
D. Industry benchmarks
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Answer : A
Question No : 91 - Topic 2
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Answer : C
Question No : 92 - Topic 2
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Answer : C
Question No : 93 - Topic 2
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Answer : D
Question No : 94 - Topic 2
The strategy to implement supplier relationship management has been developed. The
most appropriate next step is to:
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Answer : A
Question No : 95 - Topic 2
When doing international business, a company's total line-haul costs will vary with the:
A. weight shipped.
B. distance shipped.
C. pallets shipped.
D. volume shipped.
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Answer : B
Question No : 96 - Topic 2
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Answer : A
Question No : 97 - Topic 2
Which of the following ISO standards is used to assist organizations with sustainable
development?
A. ISO 31000
B. ISO 14001
C. ISO 26000
D. ISO 9001
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Answer : C
Question No : 98 - Topic 2
Which of the following statements about the use of bar code labels for product identification
in the supply chain is true?
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Answer : C
Question No : 99 - Topic 2
Which of the following distribution approaches for a low-volume, high-variety product line
typically will result in the highest level of customer service and the lowest total distribution
costs?
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Answer : A
When an importer and manufacturer are operating in a free trade zone, payment of a
customs duty is triggered when products are:
A. returned.
B. assembled.
C. stored.
D. distributed.
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Answer : D
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Answer : D
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Answer : B
The most appropriate reason for a business to comply with the United Nations (UN) Global
Compact practices typically would be to:
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Answer : A
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Answer : A
Question No : 105 - Topic 2
A company produces and distributes a family of soft drinks in a single country. It has
developed and will introduce a new family of soft drinks for weight- and health-conscious
individuals. There currently are no competitors with nationwide distribution for this category
of soft drinks. Which of the following supply chain strategies would be most appropriate for
the two product families?
A. Produce both product families to forecast and push through the distribution system.
B. Produce both product families only after receipt of a distributor order.
C. Produce the current product family to forecast and the new product family to order.
D. Produce the current product family to order and the new product family to forecast.
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Answer : C
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Answer : B
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Answer : A
In an advanced planning system, which of the following modules feeds the master planning
module?
A. Purchasing planning
B. Demand planning
C. Distribution planning
D. Fulfillment planning
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Answer : B
A firm has discovered a product quality issue. What should be the first step in responding
to this issue?
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Answer : C
Question No : 110 - Topic 2
An increase in the inventory turnover rate for a supply chain typically would indicate that
there has been a reduction in:
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Answer : D
Which of the following actions would be most appropriate for an enterprise that has
successfully integrated internal supply chain management systems and functions?
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Answer : C
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Answer : D
A. Loyalty
B. Scoring
C. Segmentation
D. Prospecting
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Answer : C
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Answer : C
Which of the following strategies would increase overall supply chain risk?
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Answer : A
In the Supply Chain Operations Reference-model (SCOR), the cash-to-cash cycle time
for a manufacturing company is the number of days between which two of the following
situations?
A. Paying for raw materials and getting paid for the product
B. Shipping the product from the warehouse and receiving it at the customer's location
C. Paying for raw materials and sending an invoice to the customer
D. Billing the customer and getting paid for the product
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Answer : A
A toy company decides to buy more products from an overseas company to reduce costs.
To make sure that goods clear customs more quickly, the company most likely would
engage a:
A. consolidator.
B. overseas carrier.
C. shipping association.
D. freight forwarder.
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Answer : D
Question No : 118 - Topic 2
The social dimension of sustainability typically would be addressed when developing and
implementing policies regarding:
A. accounting practices.
B. biodiversity protection.
C. conflicts of interest.
D. waste reduction.
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Answer : C
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
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Answer : C
Which of the following activities typically would be an appropriate application of the ISO
31000 Risk Management Principles and Guidelines?
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Answer : B
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Answer : C
Which of the following actions is in accordance with the Ten Principles in the United
Nations (UN) Global Compact?
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Answer : B
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Answer : C
Which of the following factors typically is most important in successfully implementing sales
and operations planning (S&OP)?
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Answer : C
Which of the following strategies can be used to help manage global risks?
A. Direct shipment
B. Cross-docking
C. Mass customization
D. Flexibility
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Answer : D
Question No : 126 - Topic 2
A manufacturer and the distributors of its products have decided to focus on price and
product availability as strategic priorities. Which of the following values would be the most
appropriate measure of customer service?
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Answer : C
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Answer : B
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Answer : D
Distribution from which of the following types of sites enables goods to enter a country,
undergo further modification, and then be exported without paying customs duties?
A. Public warehouse
B. Value-added territory
C. Free trade zone
D. Customs clearing house
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Answer : C
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Answer : D
A manufacturer offers a trade-in allowance on a new machine when the customer returns
the old machine. The manufacturer reconditions the returned machine locally and then sells
it on the used market for a profit. This program is an example of a focus on:
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Answer : D
A manufacturer of consumer packaged goods with a single plant and nine regional
distribution centers is considering reducing the number of distribution centers in its system.
Reducing the number of distribution centers most likely will reduce fixed warehousing and
the cost of:
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Answer : D
A. reduce uncertainty for multinational firms regarding legal, import/export, labor, and environmental standards across countries.
B. set minimum levels of compliance across a broad range of transactional areas for businesses operating in multiple geographic regions.
C. align the needs of businesses to increase profitability and the needs of individual countries to ensure their specific legal requirements are met.
D. help ensure that markets, commerce, technology, and finance promote advancement of economies and societies everywhere.
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Answer : D
Question No : 134 - Topic 2
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Answer : C
A company closely monitors supplier performance and notices recent late deliveries from
one supplier. The supplier discloses flood damage at the plant. The company quickly shifts
sourcing to a new supplier and has minimal loss of sales. Which of the following risk
strategies reflects the company's actions?
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Answer : B
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Answer : C
A company that sells direct to industrial and commercial businesses has become
successful by being responsive to the needs of its customers. The company currently
produces in each country all of the products it sells in that country. Several countries in
which the company operates have negotiated an agreement to establish a trading bloc.
Which of the following actions by the company would be most appropriate if the agreement
is implemented?
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Answer : D
What is the primary benefit of using modular rather than integral designs?
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Answer : C
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Answer : C
A company currently produces custom goods for a limited market. To increase market
share, the company will implement a strategy to reduce the number of products it produces
and reduce delivery lead time. The company can increase its chances of achieving the
strategy by:
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Answer : C
A firm is undertaking a revision of its financial metrics to make them more comprehensive
and has decided to use metrics such as return on investment (ROI), return on assets
(ROA), and economic value added (EVA). This is an example of utilizing which of the
following types of metrics?
A. Activity based
B. Stakeholder focused
C. Financial sustainability
D. Value chain
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Answer : C
The process used to determine the impact of promotions, price discounts, and rebates on
demand forecasts commonly is referred to as demand:
A. planning.
B. forecasting.
C. aggregating.
D. shaping.
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Answer : D
Bar codes and radio frequency identification systems are key technologies in supply chain
systems because they perform which of the following functions?
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Answer : B
A company most likely would consider moving a portion of its manufacturing to a second
location to:
A. improve competitive advantage through cost control.
B. avoid manufacturing downtime due to material shortages.
C. maximize security for customer shipments.
D. minimize the impact of natural disasters.
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Answer : D
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
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Answer : D
Which of the following actions is most likely to increase total supply chain risk?
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Answer : C
Question No : 147 - Topic 2
A. Magnetic stripes
B. Universal product codes
C. Radio frequency devices
D. Local area network
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Answer : C
A company's product cannot be sold beyond 12 months from the date of manufacture. The
product contains hazardous material and must be returned to the factory to be neutralized.
This situation is an example of product:
A. reuse.
B. remanufacturing.
C. recovery.
D. refurbishing.
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Answer : C
A company ships from its manufacturing facilities directly to its warehouses. If the number
of warehouses increases, transportation costs between manufacturing facilities and
warehouses most likely will:
A. increase.
B. decrease.
C. not change.
D. become less predictable.
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Answer : A Topic 3, Implementation and Operations
The most common method for coping with demand variability in the manufacture of
products with a lengthy cycle time is to have:
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Answer : B
Which of the following export documents is used as the basis for the valuation of goods for
insurance purposes and for assessment of duties?
A. Export license
B. Export declaration
C. Bill of lading
D. Commercial invoice
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Answer : D
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Answer : C
A. leads to profitable exchanges with the customer and creates intrinsic customer value
B. supports transactional marketing priorities for successful commodity exchanges to customers globally
C. enables companies to position their products throughout the distributor network based on customer need
D. creates perception in the mind of the customer as available products and services are exchanged
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Answer : C
The employees at a convenience store are trained to ask customers purchasing snack
foods whether they also would like to purchase a beverage. This situation is an example of:
A. cross-selling.
B. customer service.
C. product marketing.
D. selling an upgrade.
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Answer : A
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Answer : C
A company develops annual forecasts for key products and enters into annual contracts
with key suppliers based on the forecasts. Which of the following benefits would the
company most likely receive from this approach?
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Answer : B
Which of the following activities occurs as part of the sales and operations planning
process?
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Answer : D
Question No : 158 - Topic 3
The benefit most likely to result from a collaborative forecasting process is:
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Answer : A
A. Control chart
B. Competitive benchmarking
C. Pareto analysis
D. Six Sigma
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Answer : C
A. Modularity
B. Component commonality
C. Mass customization
D. Standardization
0
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Answer : A
An advanced planning system differs primarily from enterprise resources planning by:
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Answer : A
In order to optimize delivery routing and load planning as well as to provide advanced
shipment notifications (ASN's), which of the following technology platforms should be
implemented to plan and manage the above operations?
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Answer : D
Which of the following factors is the most appropriate measure of delivery performance for
finished goods?
A. Perfect order fulfillment
B. On-time delivery
C. Load efficiency
D. Available-to-promise
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Answer : A
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Answer : B
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Answer : B
Question No : 166 - Topic 3
A company has an asset turnover ratio of 1.8, inventory of $3,000, a 20% profit margin, and
$5,000 in total assets. What is the total sales volume for the company?
A. $ 5,400
B. $ 9,000
C. $15,000
D. $25,000
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Answer : B
A company uses cash-to-cash cycle time to assess how long it takes from:
A. receiving inventory from the supplier to paying the invoice from the supplier.
B. receiving inventory from the supplier to invoicing the customer.
C. paying the supplier for inventory received to receiving payment from the customer.
D. invoicing a customer to receiving payment from the customer.
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Answer : C
Which of the following strategies is most appropriate for managing unknown risks in a
global supply chain?
A. Vertical integration
B. Technology integration with suppliers
C. Investing in redundancy
D. Strengthening supplier relationships
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Answer : C
Question No : 169 - Topic 3
A. dispatch list.
B. forecast system buffer.
C. priority planning tool.
D. supplier scheduling system.
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Answer : C
Which of the following supply chain strategies should be chosen if the lead-time for a
product is long and the demand is not predictable?
A. Inventory positioning
B. Pull replenishment
C. Continuous replenishment
D. Push system
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Answer : A
Which two of the following tools should be used with an enterprise resources planning
system to build realistic supply chain models and to plan the most profitable flow of goods
across the chain?
Answer : A
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Answer : C
0
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Answer : C
0
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Answer : A
A. resource planning.
B. sales and operations planning.
C. corporate strategizing.
D. financial planning.
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Answer : C
Which of the following actions by trading partners is most likely to reduce the goods that
will be processed by the reverse supply chain?
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Answer : D
Question No : 177 - Topic 3
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Answer : C
A. 41
B. 44
C. 62
D. 74
2
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Answer : C
A. Labor costs
B. Currency exchange rates
C. Commodity prices
D. Product quality
1
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Answer : B
0
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Answer : D
0
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Answer : B
When profit impact is high and supply risk is low for an item, which of the following
procurement strategies is most likely to be effective and successful?
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Answer : A
On-time delivery performance in the supply chain can best be improved by aligning
required capacity with what type of capacity?
A. Demonstrated
B. Rated
C. Budgeted
D. Theoretical
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Answer : A
Question No : 184 - Topic 3
0
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Answer : D
0
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Answer : A
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?
0
0
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Answer : D
Pull strategy typically would be the most appropriate strategy when customer demand
uncertainty is:
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Answer : B
A. demand visibility.
B. production capacity.
C. product features.
D. safety stock.
0
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Answer : A
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Answer : C
A company plans to benchmark its shipping reliability compared to other companies in the
industry. Which measurement is most appropriate to benchmark in this case?
0
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Answer : A
A company understates current revenue forecasts and delays the delivery of orders to
meet the forecast. The most likely result of this practice is that shipments will peak:
0
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Answer : A
Question No : 192 - Topic 3
A firm decides to reduce the number of distribution centers it uses. Which of the following
outcomes is the most likely result of this change?
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Answer : A
If a firm has 35 days of accounts payable outstanding and 55 days invested in inventory,
and its cash-to-cash cycle time is 90 days, what is the number of days of accounts
receivable?
A. 70
B. 90
C. 110
D. 180
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Answer : A
A company operates under a make-to-order policy, and its supplier operates under a make-
to-stock policy. Which of the following risks poses the greatest threat?
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Answer : B
Which of the following variables is the most appropriate customer-facing goal used to
determine the target inventory level?
A. Inventory turns
B. Level of service
C. Total delivery cost
D. Delivery lead time
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Answer : B
A firm has identified key benefits for developing a strategic alliance and has selected
appropriate supply chain partners. Which of the following actions should the firm take to
build a successful alliance with a supplier who is also a competitor?
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Answer : D
Question No : 197 - Topic 3
A company has outsourced a high volume of assembly work to top-tier suppliers, thereby
reducing the overall number of suppliers they directly manage. Which of the following
actions must the company perform to mitigate risk?
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Answer : B
Which of the following processes ensures that functional plans are consistent?
A. Strategic planning
B. Sales and operations planning
C. Project planning
D. Master scheduling
0
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Answer : B
Which of the following conditions are most indicative of a company that is effectively
managing its cash?
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Answer : A
Which of the following actions is most likely to improve customer perceptions about delivery
performance provided by a firm?
0
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Answer : B
In determining warehouse velocity, the average inventory level is calculated by dividing the
annual sales through the warehouse by the:
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Answer : B
A. Pareto chart
B. Histogram
C. Scatterplot
D. Check sheet
0
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Answer : B
0
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Answer : B
A company produces to stock and sells its products to distributors. The factor that most
likely will contribute to the risk of loss in inventory investment is the:
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Answer : A
Question No : 205 - Topic 3
A. Invoicing
B. Freight-bill auditing
C. Order processing
D. Vehicle routing
0
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Answer : C
A supplier has decided to improve its forecast accuracy by reducing the information lead
time from the retailer. Which of the following actions would be most appropriate to achieve
the desired result?
0
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Answer : D
0
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Answer : C
0
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Answer : A
A. product pricing.
B. value stream analysis.
C. centralized decision making.
D. sourcing multiple suppliers.
0
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Answer : B
Which of the following benefits should a supplier expect to receive by becoming a certified
supplier?
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Answer : A
Which of the following factors is most important to consider when deciding on offshore
outsourcing of manufacturing to a supplier?
0
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Answer : B
0
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Answer : D
0
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Answer : D
Which of the following outcomes is most likely a result of allocating excess capacity to a
supply chain facility?
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Answer : A
Which of the following outcomes most likely is the primary reason for outsourcing
production of a new product?
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Answer : C
Question No : 216 - Topic 3
The primary risk that must be considered when lean practices are applied to a supply chain
network is:
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Answer : B
0
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Answer : B
2
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Answer : B
Which of the following tools is most appropriate to use to determine projects that will
achieve the greatest net benefits?
A. Pareto diagram
B. Fishbone diagram
C. Process flow diagram
D. Operation process chart
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Answer : A
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Answer : B
Explanation: A grocery store found that ground beef sales increased when buns were a featured sales item. This customer relationship management technique is called: A. data mining. B. data tracking.
C. contact management. D. order entry. Answer: A
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Answer : D
A. Lean manufacturing
B. Advanced planning and scheduling
C. Six sigma
D. Total quality management
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Answer : A
A large, global third party logistics provider (3PL) is contemplating the switch to the use of
ethanol-based fuel in its truck fleet and wants to identify the impact of this change on food
prices. Which of the following attributes of the triple bottom line (TBL) are part of this trade
off decision?
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Answer : B
0
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Answer : D
The relative speed at which all transactions within the supply chain process occur is known
as:
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Answer : B
0
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Answer : D
A. Speculative
B. Hedge
C. Flexible
D. Forecast
0
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Answer : B
0
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Answer : D
An organization is partnering with a supplier. The most appropriate tool to ensure that the
supplier has the necessary capabilities is:
A. a supplier-input-process-output-customer diagram.
B. supplier certification.
C. supplier relationship management.
D. supplier performance evaluation.
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Answer : B
What is the appropriate supply chain strategy for a product with low demand uncertainty
and high economies of scale?
A. Pull
B. Push
C. Push-pull
D. Postponement
0
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Answer : B
Which of the following tradeoffs should be considered when selecting logistics options?
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Answer : C
Question No : 232 - Topic 3
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Answer : D
Which of the following supplier performance factors typically is most critical for
organizations that outsource production?
A. Speed
B. Reliability
C. Flexibility
D. Malfunction recovery
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Answer : B
A company recently implemented a new supplier rating system. Data was collected from
the enterprise resources planning system about each vendor's rating for cost, quality, and
delivery over 12 months. A cutoff point was established for poor performers. The
responsible purchasing agent then scheduled meetings with each supplier. Which of the
following actions is most appropriate to take with suppliers whose ratings were below the
cutoff point?
A. Discuss ways to raise the ratings for the next review period.
B. Tell the suppliers they are on probation for 3 months.
C. Immediately cancel outstanding contracts with those suppliers.
D. Ask the suppliers to explain the poor performance.
0
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Answer : A
The most appropriate frequency for the sales and operations planning process typically is:
A. weekly.
B. monthly.
C. quarterly.
D. annually.
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Answer : B
Incorporating information technology into its supply chain allows a company to efficiently:
A. collect, store, encode, process, analyze, transmit, receive, and print data.
B. manage order entry, scheduling, warehousing, and order tracking.
C. incorporate elements of Six Sigma into supplier relationships.
D. upgrade enterprise resources planning revisions in a timely and secure manner.
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Answer : A
A company has limited visibility of global customer sales. Which of the following methods is
the most appropriate way to sense and respond to customer demand?
A. Point of sale
B. Sales and operations planning
C. Demand-driven supply network
D. Customer relationship management
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Answer : C
Which of the following constituents typically must provide information first to effectively
improve supply chain design?
A. Supplier
B. Distribution system
C. Manufacturing
D. Customer
0
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Answer : D
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?
0
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Answer : C
Question No : 240 - Topic 3
0
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Answer : A
Which of the following factors should be considered when establishing an inventory policy?
A. Customer demand
B. Selling price history
C. Historical service levels
D. Number of customers
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Answer : A
0
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Answer : C
Question No : 243 - Topic 3
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Answer : A
A common benefit of including an automatic identification system (AIS) at the point of sale
(POS) in retail stores is improved:
A. shipment traceability.
B. unit inventory precision.
C. sales revenue tracking.
D. information integrity of freight bills.
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Answer : B
0
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Answer : D
Which of the following metrics would be most appropriate for a group of trading partners
that is trying to gain competitive advantage through supply chain reliability?
0
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Answer : C
Which of the following fill rates is the most rigorous measure of a firm's availability
performance?
A. Line
B. Item
C. Order
D. Value
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Answer : C
A manufacturer of consumer goods has purchased one of its distributors. The distributor's
inventory system is archaic and will not integrate into the manufacturer's enterprise
resources planning (ERP) system. Which of the following approaches is the most
appropriate long-term solution for the manufacturer?
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Answer : B
A. Define-measure-analyze-improve-control process
B. Kanban
C. Poka-yoke
D. Pareto analysis
0
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Answer : A
0
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Answer : D
Question No : 251 - Topic 3
Which of the following issues recently has caused companies to rethink implementation or
continued use of a Just-in-Time system?
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Answer : D
A. Advise the ERP information technology manager that there is a flaw in the rating system.
B. Scrap the vendor rating system until the company can figure out what is wrong.
C. Compare the vendor and company detail records, and interview company employees who handled the data.
D. Tell the supplier that, regardless of the disputed claims, the supplier must improve performance.
0
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Answer : C
Measurement of service to the customer should consider which of the following strategic
priorities?
A. Cash flow
B. Responsiveness
C. Order cycle time
D. Forecast accuracy
0
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Answer : B
The practice of purchasing items in large quantities and requesting that shipments be
delivered directly to customers is referred to as:
A. drop shipping.
B. cross-docking.
C. breaking bulk.
D. freight equalization.
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Answer : A
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Answer : D
Some firms that have licensed other companies to manufacture their products run the risk
of:
A. losing market share.
B. the other companies becoming competitors.
C. the products becoming a commodity.
D. the products being overpriced.
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Answer : B
A service company has decided to create a customer-focused business and has identified
the following steps in the process:
{exhibit 3860}
Which of the following sequences of steps is correct for implementing the company's
decision?
A. 2, 1, 4, 3, 5
B. 4, 2, 1, 5, 3
C. 3, 5, 2, 4, 1
D. 4, 2, 5, 1, 3
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Answer : B
A. Sole sourcing
B. Multiple sourcing
C. Long-term contracting
D. Strategic partnering
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Answer : D
Question No : 259 - Topic 3
A manufacturer is the sole supplier of a product family. It sells to regional distributors that
sell to retailers. The manufacturer uses batch production processes that have long setup
times. All nodes in the supply chain have agreed to pursue a quick response to changes in
the level of demand as a competitive priority. Which of the following factors is most likely to
hinder their pursuit of this competitive priority?
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Answer : D
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Answer : B
The lowest-cost supply network design requires balancing inventory costs and which of the
following types of costs?
A. Administrative
B. Manufacturing
C. Transportation
D. Sales and marketing
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Answer : C
A firm expands distribution of its products into additional countries. Some customers initiate
order batching, which could lead to which of the following outcomes?
A. Bullwhip effect
B. Price fluctuations
C. Rationing
D. Better forecasting
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Answer : A
A. Transaction management
B. Forecast, process, and information sharing
C. Churn analysis and prediction
D. Event and service management
0
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Answer : C
Question No : 264 - Topic 3
Which of the following objectives is the primary driver in the design and implementation of
lean process management?
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Answer : D
Which of the following techniques allows users to automate the notification of appropriate
parties when exceptions to specific business rules occur?
0
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Answer : B
1
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Answer : C
Question No : 267 - Topic 3
Which of the following actions by a group of trading partners is most likely to improve the
flow of funds among them?
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Answer : A
0
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Answer : B
0
0
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Answer : C
A procurement manager wants to reduce costs on commodity items. Which of the following
actions is likely to result in the greatest savings?
0
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Answer : D
0
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Answer : D
0
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Answer : B
0
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Answer : C
0
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Answer : B
Question No : 275 - Topic 3
Marketing affects supply chain management decisions primarily by its involvement in:
0
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Answer : B
0
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Answer : B
Turning the request-for-quotes process into a real-time auction setting most likely will:
0
0
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Answer : C
0
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Answer : B
A supervisor knows that employees have good ideas for improving department operations
but are hesitant to share them. Which of the following tools would be most appropriate for
encouraging the employees to participate in identifying opportunities?
A. Tree diagram
B. Pareto chart
C. Process map
D. Affinity diagram
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Answer : D
Which of the following technologies directly enables pulling products through the supply
chain?
A. Automatic identification system (AIS)
B. Point of sale (POS) system
C. Customer relationship management (CRM)
D. Supply chain event management (SCEM)
0
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Answer : B
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
0
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Answer : A
0
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Answer : A
Question No : 283 - Topic 3
The primary contribution from an enterprise resources planning system in building supply
chain capability is:
0
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Answer : B
A. Inspection labor
B. Obsolesence
C. Cost of capital invested
D. Insurance
0
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Answer : A
A company uses multiple ingredients to make a product that is sold in multiple countries.
Each country requires country-specific labels. A third-party supplier provides the country-
specific labels. The most appropriate push-pull interface is:
0
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Answer : B
A. Centralized
B. Decentralized
C. Make-to-order
D. Engineer-to-order
0
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Answer : B
Which of the following statements best identifies the value of using a supplier rating
system?
0
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Answer : A
Which of the following characteristics is typical of a highly complex product when compared
with a simple commodity product?
0
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Answer : B
0
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Answer : D
Qualitative forecasting methods are most appropriate for projecting demand for:
A. commodity products.
B. families of products.
C. breakthrough products.
D. raw materials.
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Answer : C
Question No : 291 - Topic 3
The profit margin for a product that is currently made in the company's facility has
decreased during the past 2 years. Which of the following factors should be considered
when deciding whether to make or buy the product?
A. Production capabilities
B. Transportation capabilities
C. Distribution channels
D. Landed cost
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Answer : D
ABC Corporation is implementing a website that connects clothing distributors and retailers
with many different garment manufacturers from whom they can buy finished goods. This
website would be an example of:
0
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Answer : C
Effective sales and operation planning (S&OP) is most likely to result in which of the
following benefits?
0
0
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Answer : A
One operation in a four-stage process has been producing more than required and is
causing elevated levels of work in process. Which of the following approaches would be
most appropriate to address the situation?
A. Kano
B. Kanban
C. Kaizen
D. Keiretsu
0
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Answer : B
0
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Answer : A
A large retailer has negotiated buyback contracts with several suppliers. The suppliers
typically will need which of the following systems to effectively implement the contracts?
A. Point-of-sale tracking
B. Well-developed reverse logistics
C. Monitoring the retailer's revenue
D. Sales incentives to reward the retailer
0
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Answer : B
What benefit does Radio Frequency Identification (RFID) technology provide for a high-
volume, low-cost manufacturer?
0
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Answer : D
Which of the following performance indicators can be used to measure the effectiveness of
a vendor-managed inventory program?
0
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Answer : D
Question No : 299 - Topic 3
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
0
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Answer : C
0
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Answer : D
A juice manufacturer wants to determine the time required to convert a dollar spent on
materials into a dollar received in sales. Which of the following metrics would be most
appropriate to make this determination?
A. Activity-based costing
B. Inventory carrying cost
C. Cash-to-cash cycle time
D. Average financial turnover
0
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Answer : C
The most appropriate strategy for a firm that makes and sells a wide range of items
typically would be to domestically source items that have which of the following
characteristics?
0
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Answer : A
0
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Answer : C
Question No : 304 - Topic 3
0
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Answer : D
A distributor has a network consisting of a central distribution center serving five regional
distribution centers that ships to multiple retailers. The distributor wants to reduce inventory
while maintaining product availability. Which of the following actions is most likely to
produce the desired outcome?
0
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Answer : A
A. Just-in-Time (JIT)
B. Kaizen
C. Six Sigma
D. Theory of constraints
0
0
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Answer : C
Horizontal and vertical exchanges of secure data among supply chain partners are
facilitated best by:
A. the intranet.
B. a portal.
C. a Web site.
D. e-mail.
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Answer : B
0
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Answer : A
A company is having trouble with raw material deliveries and decides to develop a supplier
certification program. The certification process most appropriately would start with which of
the following suppliers?
A. Suppliers of "A" classified items
B. Suppliers recently ISO 9000-certified
C. Suppliers with the worst performance records
D. Competitors of suppliers with the worst performance records
0
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Answer : A
Which of the following elements is critical to successfully using a sales and operations
planning process?
0
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Answer : B
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.
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Answer : A
Question No : 312 - Topic 3
Customer demand is 120 units per week. The company works on a 9-hour shift per day, 5-
day per week basis. Each shift has a -hour lunch break and two 15-minute coffee breaks.
The cycle time is 12 minutes. To meet demand, production must occur at the rate of one
unit every:
A. 12 minutes.
B. 20 minutes.
C. 22.5 minutes.
D. 28 minutes.
0
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Answer : B
Which of the following manufacturing strategies would run the greatest risk of increasing
obsolete inventory costs?
A. Make-to-stock
B. Assemble-to-order
C. Make-to-order
D. Engineer-to-order
0
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Answer : A
During the sales and operations planning (S&OP) horizon, planned inventory can best be
used to:
0
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Answer : C
Continuous process improvement is characterized by which two of the following key steps?
0
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Answer : C
0
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Answer : C
0
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Answer : D
0
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Answer : D
A. Push-based
B. Pull-based
C. Innovative
D. Collaborative
0
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Answer : A
Question No : 320 - Topic 3
A firm decides to move from a mass production to a mass customization model. This will
result in a change in focus from:
1
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Answer : A
Functional products require which of the following types of supply chain process?
A. Restrictive
B. Innovative
C. Efficient
D. Integrated
0
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Answer : C
The most significant reason for altering supply chain management practices in an
organization would be a change in its:
A. executive management.
B. corporate strategy.
C. profitability of operations.
D. financial position.
0
0
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Answer : B
A firm may use which of the following technologies to track the flow of inventory across its
entire supply chain?
0
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Answer : B
A firm has determined its cash-to-cash cycle time to be 60 days. The number of days'
payables outstanding is 25, and number of days' sales outstanding is 35. If the firm
reduces its inventory by 20%, the new cash-to-cash cycle time, in days, will be
approximately:
A. 48.
B. 50.
C. 60.
D. 88.
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Answer : B
A. Make to Stock
B. Assemble to Order
C. Make to Order
D. Engineer to Order
0
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Answer : D
In the supplier rationalization step of the supplier relationship management process, the
supplier base is treated like:
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Answer : B
A company regularly issues sustainability reports in accordance with the Global Reporting
Initiative (GRI) framework and uses the reports to track continuous improvement. Which of
the following topics could be found in the sustainability reports?
A. Labor practices
B. Product specifications
C. Raw material costs
D. Currency exchange rates
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Answer : A
Question No : 328 - Topic 3
Which of the following approaches most likely will help a company reduce its cost of sales
while increasing customer loyalty?
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Answer : C
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Answer : C
When evaluating several possible supply chain options, a firm considering the minimal total
cost should:
A. ensure that the inventory levels are as low as possible to minimize holding costs while still providing adequate customer service.
B. account for the combined costs of holding buffer inventory and incurring inventory shortages.
C. consider the costs of acquiring, holding, and transporting inventory, and of servicing customers.
D. place buffer inventory in the lowest cost locations that meet lead time and service level requirements from customers.
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Answer : C
Which of the following actions is most likely to improve the cash-to-cash cycle time?
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Answer : B
Which of the following outcomes is the primary benefit to an organization that develops a
supplier certification program?
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Answer : B
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Answer : C
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Answer : A
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Answer : D
Question No : 336 - Topic 3
Which of the following types of lead times is related most closely to a supplier performance
measure?
A. Fulfillment
B. Replenishment
C. Overall
D. Process
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Answer : B
Which of the following metrics is the most appropriate measure of supply chain
responsiveness?
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Answer : D
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Answer : B
Question No : 339 - Topic 3
When establishing third-party and fourth-party logistics relationships, a firm should avoid
providers who:
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Answer : A
When multiple warehouses are combined into one centralized warehouse, the requirement
for safety stock is reduced because:
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Answer : B
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Answer : A
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Answer : B
A car manufacturer has 40000 cars in inventory, of which 5000 are electric. The
manufacturer expects to sell 5000 cars per day, of which 4000 are estimated to be gasoline
cars. The days of supply for electric cars is:
A. 40 days.
B. 10 days.
C. 8 days.
D. 5 days.
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Answer : D
Question No : 344 - Topic 3
Effective sales and operations planning (S&OP) can contribute most to which of the
following objectives?
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Answer : D
A company is beginning the process of defining market segments for its products and
services. The most appropriate objective for this undertaking would be to identify groups of
customers with similar:
A. geographical locations.
B. buying power.
C. revenue potential.
D. service requirements.
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Answer : D
Which of the following conditions is most likely to occur shortly after the introduction of an
innovative product family?
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Answer : C
Use of consistent performance measures among trading partners is a best practice to:
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Answer : B
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
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Answer : A
A. resources.
B. customer orders.
C. components and subassemblies.
D. the final assembly.
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Answer : C
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Answer : B
Which of the following actions by trading partners would be most appropriate to protect
against variability in supply and demand?
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Answer : C
Question No : 352 - Topic 3
A retailer sets service-level targets intended to maximize total profit. The retailer's service
level target should be highest for items with a high profit margin and:
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Answer : A
Which of the following reverse logistics activities involves reusing refurbished products?
A. Return management
B. Disposal and reclamation
C. Decomposing and recycling
D. Remanufacturing and repair
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Answer : D
Which of the following types of raw materials would be most appropriate to source via an
Internet-based trading exchange?
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Answer : D
Question No : 355 - Topic 3
How does a mass customization product design strategy relate to component commonality,
modular design, and product universality?
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Answer : A
Which of the following actions is key to identifying potential problems in lean supply chain
development?
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Answer : D
0
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Answer : D
The recovery element of a reverse logistics supply chain strategy is best illustrated by:
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Answer : A
Which of the following actions typically is most important when building a collaborative
supply chain?
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Answer : B
A company that desires to implement a strategy for inventory management must define
which of the following factors?
A. Reliability and maintainability requirements
B. Variability in the customer demand
C. Overall item effectiveness
D. Inventory carrying costs
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Answer : B
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Answer : C
Which of the following actions is most appropriate when implementing a strategy to create
customer-affordable value?
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Answer : D
Question No : 363 - Topic 3
Which of the following approaches typically would be most effective in increasing inventory
velocity in a supply chain?
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Answer : C
Designing a supply chain to maximize responsiveness and flexibility is most appropriate for
which of the following types of organizations?
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Answer : B
A manufacturer's inventory levels are growing and service levels are dropping. Which of
the following supply chain strategies is most appropriate to reduce inventory and improve
service?
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Answer : B
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Answer : B
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Answer : C
Question No : 368 - Topic 3
A. is ISO certified.
B. implements, documents, and improves procedures related to customer requirements.
C. tracks manufacturing processes, including bills of material and routings to support the processes.
D. manufactures products to the specifications shown on engineering documents and bills of material.
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Answer : B
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Answer : B
A company has revenues of $100,000, which includes 10% supply chain expense and 80%
other expenses. Which of the following actions will result in the largest increase in gross
profit?
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Answer : D
Lean supply chains strive to achieve their objectives by using which of the following
approaches?
A. Inventory optimization
B. Cost reduction
C. Waste reduction
D. Quality function deployment (QFD)
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Answer : C
A large bicycle company has outsourced manufacturing and needs to respond immediately
to any logistics problems in the supply chain. The best technological solution to meet this
need is:
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Answer : B
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Answer : C
A consumer goods manufacturer has introduced a new frozen product and encountered
problems applying package labels consistently. Which of the following methodologies
would be most appropriate to use to identify the root cause of the problem?
A. Six sigma
B. Statistical process control
C. Lean production
D. Theory of constraints
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Answer : A
A. Anti-Corruption
B. Profitability
C. Discrimination
D. Employment
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Answer : A
Question No : 376 - Topic 3
Which of the following factors is the most important driver of supply chain change?
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Answer : D
A new sales and marketing director who wants to transform a company into a customer
driven organization most likely would consider:
A. allowing customers to use their preferred channels to interact with the company.
B. implementing an independent system to capture customer data.
C. minimizing the number of customer contacts.
D. focusing product design on manufacturing strengths.
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Answer : A
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Answer : A
Question No : 379 - Topic 3
A company has adequate average available capacity but does not maintain surge capacity.
With a distribution route to manage, which of the following actions will provide the most
capacity relief?
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Answer : A
A firm has increased finished-goods inventories for several products to compensate for
increased variability in demand. The firm analyzed shipment data and determined that the
variability was due to a few customers placing large orders for single shipments to obtain
discounts. Which of the following actions is the firm most likely to take to maintain sales
and reduce variability in demand?
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Answer : B
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Answer : A
The ABC classification system answers which two of the following inventory-related
questions?
A. How much inventory should be ordered at one time, and when will the order be placed?
B. What is the importance of the inventory item, and how will the inventory items be controlled?
C. How much inventory should be ordered at one time, and what is the importance of the inventory item?
D. When will the order be placed, and how will the inventory items be controlled?
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Answer : B
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Answer : A
Question No : 384 - Topic 3
Which of the following factors is most likely to slow the adoption of collaborative planning,
forecasting, and replenishment (CPFR)?
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Answer : A
A. Kaizen
B. Kanban
C. Six Sigma
D. Lean
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Answer : D
Which of the following factors typically is most critical to effective change management?
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Answer : A
Question No : 387 - Topic 3
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Answer : B
The primary benefit a company is likely to achieve when setting time fences is:
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Answer : D
Which of the following supply chain attributes is most appropriate for products with wide
variety and highly variable demand?
A. Efficient
B. Responsive
C. Short
D. Virtual
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Answer : B
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Answer : B
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Answer : A
The most useful inventory costing method which enables purchase price variance analysis
is:
A. average costing.
B. standard costing.
C. last in first out (LIFO) costing.
D. first in first out (FIFO) costing.
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Answer : B
Which of the following procurement strategies is most appropriate for a high-risk, high-
value item?
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Answer : D
A. demand.
B. lead time.
C. quality.
D. suppliers.
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Answer : B
Question No : 395 - Topic 3
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Answer : A
The most appropriate approach to balance supply and demand over the medium term is:
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Answer : D
Which of the following constraints is most important to consider when adapting a vertical
integration strategy?
A. Location of suppliers
B. Location of customers
C. Capital requirements
D. Size of existing manufacturing plant
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Answer : C
Which of the following approaches reduces lead times from supplier to customer using
point of sale data?
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Answer : D
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Answer : A
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