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Q211. - (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.
Answer: C
Q212. - (Topic 3)
When multiple warehouses are combined into one centralized warehouse, the requirement for safety stock is reduced because:
A. there is less in-transit inventory.
B. the total variability of demand is reduced.
C. average cycle stock is reduced.
D. safety stock becomes available-to-promise.
Answer: B
Q213. - (Topic 3)
Which of the following approaches most likely will help a company reduce its cost of sales while increasing customer loyalty?
A. Business process design
B. Business development mapping
C. Customer relationship management
D. Sales contact management
Answer: C
Q214. - (Topic 3)
Value stream mapping is a useful tool primarily because it:
A. redefines supply chain relationships.
B. is completed in 1 or 2 days.
C. is used to improve efficiency in a specific area.
D. looks at the entire supply chain rather than an isolated process.
Answer: D
Q215. - (Topic 3)
Managing risk should be a strategic part of supply chain management because:
A. the occurrence of unanticipated risks essentially can be eliminated.
B. not all members of the supply chain consider and respond to the same types of risks.
C. substantial financial penalties can be assessed if legal requirements are not met.
D. it helps to reduce the occurrence and consequences of unplanned negative events.
Answer: D
Q216. - (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.
Answer: A
Topic 2, Supply Chain Strategy, Design, and Compliance
Q217. - (Topic 1)
Which of the following customer relationship management activities most appropriately is used for revenue generation?
A. Generating customer leads
B. Generating graphic sales models
C. Measuring customer preferences
D. Identifying customer margins
Answer: A
Q218. - (Topic 3)
In determining warehouse velocity, the average inventory level is calculated by dividing the
annual sales through the warehouse by the:
A. total square footage of the warehouse.
B. inventory turnover rates for the warehouse.
C. annual weight through the warehouse.
D. annual cube through the warehouse.
Answer: B
Q219. - (Topic 3)
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
Answer: B
Q220. - (Topic 1)
Which of the following indicators is most appropriate to use as a measure of supply chain utilization?
A. Production equipment productivity
B. Net asset turnover
C. Value-added productivity per employee
D. Upside flexibility
Answer: B
Q221. - (Topic 3)
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
Q222. - (Topic 1)
Which of the following considerations is an important supply chain design decision?
A. Product design
B. Selecting supporting information systems
C. Identifying labor force requirements
D. Identifying training programs
Answer: B
Q223. - (Topic 3)
Which of the following manufacturing strategies typically generates the lowest supply chain inventory?
A. Make to Stock
B. Assemble to Order
C. Make to Order
D. Engineer to Order
Answer: D
Q224. - (Topic 3)
Organizations that change from a traditional purchasing perspective to a supply chain perspective most likely will adopt techniques related to:
A. product pricing.
B. value stream analysis.
C. centralized decision making.
D. sourcing multiple suppliers.
Answer: B
Q225. - (Topic 1)
Compared to a global strategy, a multicountry strategy would be characterized by:
A. strategy coordination across countries.
B. preferred suppliers located in host countries.
C. major strategic decisions coordinated centrally.
D. products adapted to local needs.
Answer: D