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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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