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NEW QUESTION NO: 11
Which of the following outcomes occurs when direct shipping is used instead of a distribution network?
A. Inventory velocity is reduced.
B. Order-fill rates are reduced.
C. Outbound transportation cost is reduced.
D. Inventory obsolescence is reduced.
Answer: D

NEW QUESTION NO: 12
The primary objective of supply chain management is:
A. reducing inventory levels.
B. taking a systems approach.
C. minimizing transportation costs.
D. implementing advanced technologies.
Answer: B

NEW QUESTION NO: 13
Which of the following types of information would be an appropriate basis for a qualitative forecast?
A. Order history
B. Leading indicators
C. Market research data
D. Shipment history
Answer: C

NEW QUESTION NO: 14
When an importer and manufacturer are operating in a free trade zone, payment of a customs duty is triggered when products are:
A. stored.
B. returned.
C. assembled.
D. distributed.
Answer: D

NEW QUESTION NO: 15
A company has been delivering a global product that no longer appears profitable. Senior management's best response is to:
A. provide additional incentives to the sales force.
B. discontinue the product based on eroding profitability.
C. analyze product profitability by market segment.
D. increase promotional activity across all markets.
Answer: C

NEW QUESTION NO: 16
A company most likely would implement a supplier certification program to:
A. implement point-of-sale (POS) terminals.
B. validate the supplier's compliance with requirements.
C. improve the supplier's procurement process.
D. abide by ISO standards.
Answer: B

NEW QUESTION NO: 17
A supplier disputes a low rating generated by a company's enterprise resources planning (ERP) system.
Which of the following actions by the purchasing agent is most appropriate?
A. Tell the supplier that, regardless of the disputed claims, the supplier must improve performance.
B. Advise the ERP information technology manager that there is a flaw in the rating system.
C. Scrap the vendor rating system until the company can figure out what is wrong.
D. Compare the vendor and company detail records, and interview company employees who handled the data.
Answer: D

NEW QUESTION NO: 18
Point-of-sale information fails to measure actual demand most likely because:
A. data about lost sales cannot be captured.
B. there is lag time in the system.
C. holidays interrupt typical sales patterns.
D. inventory levels are inaccurate.
Answer: A

NEW QUESTION NO: 19
An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in:
A. the manufacturer's inventory.
B. prices to the end user.
C. the total supply chain inventory.
D. supply chain cost of sales.
Answer: C

NEW QUESTION NO: 20
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?
A. Investing in redundancy
B. Creating an adaptive supply chain community
C. Reducing supply chain vulnerability
D. Achieving low cost through reaction
Answer: B

NEW QUESTION NO: 21
A return material authorization (RMA) policy is used in reverse logistics to:
A. reduce the cost of returned items by refusing to accept items that should not be returned.
B. minimize the number of returned items by involving product design and demand forecasting.
C. physically transport returned items by using an efficient transportation mode.
D. reclaim substantial value from returned items by recycling.
Answer: A