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NEW QUESTION 1
Which of the following outcomes most likely is the primary reason for outsourcing production of a new product?
- A. Increase control of the supply chain
- B. Increase flexibility of the supply chain
- C. Reduce required capital investment
- D. Reduce the need for skilled workers
Answer: C
NEW QUESTION 2
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
Answer: A
NEW QUESTION 3
In the analysis of costs, fixed costs are those that are:
- A. independent of the volume of output.
- B. dependent on the utilization of the asset.
- C. inversely proportionate to the volume of output.
- D. constant through the useful life of the asset.
Answer: A
NEW QUESTION 4
What is the primary benefit of using modular rather than integral designs?
- A. Lower cost of manufacturing
- B. Increased product performance
- C. Greater responsiveness in marketing and production
- D. Reduced complexity of bills of material
Answer: C
NEW QUESTION 5
Which of the following actions typically would be considered part of a reverse logistics strategy?
- A. Offering a discount on new purchases when used products are returned
- B. Reducing the amount of packaging material used in shipping
- C. Manufacturing products in batches consistent with full-truckload shipments
- D. Batching returns of defective components to the suppliers
Answer: A
NEW QUESTION 6
When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements?
- A. Loyalty
- B. Scoring
- C. Segmentation
- D. Prospecting
Answer: C
NEW QUESTION 7
Which of the following factors typically is most important in successfully implementing sales and operations planning (S&OP)?
- A. Involvement of specialists from all functional groups within an organization
- B. Creation of a dedicated S&OP organizational unit
- C. Involvement and accountability at senior management level
- D. Focus on 3 months to 18 months in the future
Answer: C
NEW QUESTION 8
Which of the following benefits of supplier relationship management typically results from collaboration with a few critical suppliers?
- A. Automation of supplier sales activities
- B. Elimination of formal contracts
- C. Reduction in customer and supplier inventories
- D. Standardization of communications
Answer: C
NEW QUESTION 9
How does a mass customization product design strategy relate to component commonality, modular design, and product universality?
- A. Modular design is necessary for mass customization.
- B. Component commonality does not support mass customization.
- C. Universality is a prerequisite for mass customization strategy.
- D. Both universality and modular design are required for mass customization.
Answer: A
NEW QUESTION 10
Before discontinuing a product based on activity-based cost calculations, one should primarily consider the effects upon:
- A. activity-based cost calculations of other products.
- B. value stream mapping of complementary products.
- C. research and development (R&D) costs of new products.
- D. overhead absorption rates across product lines.
Answer: A
NEW QUESTION 11
The primary reason for a firm to pursue strategic supply chain activities is to:
- A. gain competitive advantage.
- B. reduce costs.
- C. increase productivity.
- D. decrease product lead time.
Answer: A
NEW QUESTION 12
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
Answer: B
NEW QUESTION 13
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?
- A. Provides smaller lot sizes
- B. Provides components with short lead times
- C. Provides Just in Time deliveries
- D. Provides information about impending shifts in the economy
Answer: D
NEW QUESTION 14
The best way to manage a business relationship is to measure performance to:
- A. cost of ownership metrics.
- B. quality targets.
- C. on-time delivery.
- D. agreed-upon metrics.
Answer: D
NEW QUESTION 15
Which of the following types of supply chains is characterized by difficulty in responding to rapidly changing demand patterns?
- A. Push-based
- B. Pull-based
- C. Innovative
- D. Collaborative
Answer: A
NEW QUESTION 16
Which of the following activities is forbidden in a foreign trade zone?
- A. Remarking or repackaging imports to avoid fines
- B. Breaking up large shipments to reduce import duties
- C. Reexporting goods without paying duties
- D. Conducting retail trade
Answer: D
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