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NEW QUESTION 1
Purchased component standardization generates savings primarily by reducing:
- A. assembly costs through economies of scale.
- B. engineering costs due to lower testing requirements.
- C. inventory control costs due to smaller shelf space requirements.
- D. inventory transportation costs by using economical modes.
Answer: A
NEW QUESTION 2
Which of the following is the most important result when a company implements customer relationship management?
- A. Profits are maximized.
- B. Retention of key customers is increased.
- C. Product options are increased.
- D. Transaction costs are decreased.
Answer: B
NEW QUESTION 3
The demand side of a traditional warehouse management system primarily is concerned with:
- A. receiving incoming goods.
- B. assigning storage locations.
- C. assembling outbound orders.
- D. forecasting product demand.
Answer: C
NEW QUESTION 4
The primary focus of lean manufacturing is:
- A. eliminating activities that do not add value.
- B. reducing inventory levels.
- C. optimizing production activities.
- D. maximizing the output of constraints.
Answer: A
NEW QUESTION 5
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:
- A. a quick response program.
- B. quality function deployment.
- C. total quality management.
- D. early supplier involvement.
Answer: B
NEW QUESTION 6
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.
Answer: D
NEW QUESTION 7
What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?
- A. Reduced need for bar codes and radio frequency identification technology
- B. Reduced material handling costs
- C. Ease of control and count accuracy
- D. Maintain a cleaner shop floor
Answer: C
Explanation: Topic 3, Implementation and Operations
NEW QUESTION 8
When implementing e-commerce in the supply chain, a company's toughest challenge most likely will be:
- A. getting all vendors to computerize.
- B. translating data into universal standards.
- C. convincing the information technology department of the value.
- D. explaining the reason for change to customers.
Answer: B
NEW QUESTION 9
A company discovers that several high-volume customers have very erratic ordering patterns. Which of the following actions is most likely to reduce variability?
- A. Checking the demand status multiple times daily
- B. Establishing Internet-enabled collaborative relationships
- C. Implementing electronic data interchange transactions
- D. Increasing safety-stock levels for items these customers order
Answer: B
NEW QUESTION 10
Which of the following measures typically would be considered an aspect of the environmental impact of a supply chain?
- A. Amount of funds invested in infrastructure improvements
- B. Hours of employee education about environmental stewardship
- C. Weight and volume of packaging materials used
- D. Total number of people making a living wage
Answer: C
NEW QUESTION 11
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?
- A. Increase the safety stockon all items.
- B. Reduce the setup time.
- C. Optimize the total cost.
- D. Implement batch operations.
Answer: B
NEW QUESTION 12
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
Answer: B
NEW QUESTION 13
Compared to mass-media marketing, customer relationship management has the advantage of allowing the organization to:
- A. compete for customers based on service.
- B. reach a larger number of potential customers.
- C. reduce inventory to improve cash flow.
- D. focus on attracting new customers.
Answer: A
NEW QUESTION 14
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?
- A. Delivery lead times are consistent.
- B. Risk pooling benefits are negated.
- C. Distribution overhead is increased.
- D. Order-fill rate is decreased.
Answer: B
NEW QUESTION 15
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?
- A. Cash-to-cash cycle time
- B. Supply chain response time
- C. Order-fill rate performance
- D. Value-added productivity per employee
Answer: C
NEW QUESTION 16
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?
- A. Consolidate production outside the trading bloc to reduce total costs.
- B. Consolidate production within the trading bloc to reduce tariffs paid.
- C. Outsource the production of products with low sales volumes to reallocate capacity.
- D. Reassign products so that each is produced in a single facility within the trading bloc to get economies of scale.
Answer: D
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