APIC CSCP Module 2

Of the following methods of treating obsolete goods, which is considered to be the least responsible?

Burial in a clean, responsible landfill

Which of the following statements about outsourcing customer relationship management (CRM) is true?

CRM vendors may provide seamless customer service.

Which of the following should be done using item inventory management rather than aggregate inventory management?

Calculating the size or timing of inventory orders

Which of the following would best help marketing professionals plan marketing programs, including program launch, scheduling of activities, continuous performance measurement, and response management?

Campaign management

Which of the following is an objective of production activity control (PAC)?

Minimizing work in process

Which of the following documents is a standardized form listing items being shipped directly to the titleholder?

Air waybill

Using the bill of material to deduct component quantities from inventory as soon as a unit has been manufactured is called which of the following?

Backflushing

Which of the following smoothing constants would yield the same result as a naive forecast?

1.0

The sum of the demand for an item for the past 12 months is 960 units. The demand in May for the past three years was 92 units, 91 units, and 99 units. What is the seasonal index for May?

1.175

Which of the following numbers gives the correct March forecast using the data below and the exponential smoothing approach? - February forecast of 10,150 units - February sales of 9,950 units with returns for refund of 50 units - Exponential smoothing constant of 0.20

10,100 units

Which of the following descriptions applies most accurately to a quick response program (QRP)?

Basic type of collaboration that involves the sharing of point-of-sale (POS) information

An organization's two distribution centers have planned order releases of 100 and 200 units respectively. Its central factory has a projected available balance of 100 units and scheduled receipts of 200 units and keeps 100 units of safety stock. In distribution requirements planning, what is the net requirement for the central factory for a given week?

100 units

Which of the following correctly identifies the deseasonalized monthly demand (to the nearest whole number) for the first half of the calendar year in the example shown in the table below?

105

An organization uses a periodic review system. At the review period, for one stock keeping unit (SKU) the organization currently has 40 units of cycle stock and 50 units of safety stock. The order lead time is one week. Average weekly sales are 30 units. Its maximum-level inventory is 200 units. How much inventory should the organization order?

110 units

Which of the following would be a typical time horizon for sales and operations planning?

12 to 18 months

Referring to the table below, calculate a seasonalized forecast for the month of June, assuming that the deseasonalized demand for January to June in a future year is 115. (Round answer to whole numbers.)81051093221071051.02June1111081103291101051.05 1,892630

121

According to the ABC system of classifying inventory, the greatest share of revenue will be generated by approximately what percentage of total inventory items?

15%

Which of the following correctly identifies the mean absolute deviation (MAD) for the six months in the example shown in the table below?

2.00

Referring to the demand table below, calculate a three-month weighted moving average forecast for April using a 1-2-3 weighting for January, February, and March, respectively. Which of the following identifies the correct forecast for April using this method? Month Demand Forecast January 21 X February 17 X March 22 X April 22 May 23

20.17

The master schedule shows inventory on hand of 150 items, scheduled production of 500 items, and booked orders of 400 items. Which of the following is the correct number of available-to-promise (ATP) items for the first period?

250

An organization is conducting warehouse capacity forecasting. Average inventory for various types of 1 cubic meter generators (which use 1 square meter of floor space each) is expected to be 600,000 units. The factor for non-storage space requirements is 3. There are 5 levels of vertical storage available for these units. If the warehouse holds only these types of inventory, what is the square meter requirement estimate for this warehouse?

360,000 square meters

A supply chain has seven suppliers each with its own warehouse, one manufacturing warehouse, and three distribution centers each serving six retail stores. How many echelons does this supply chain have?

4

The prior period's projected available balance (PAB) is 40 units. The master production schedule for the period plans 30 units. Customer orders are 20 units, and the forecast is 30 units. What is the PAB if this period is within the slushy zone?

40 units

What is the rated capacity for a work site that has 80 hours of available time, a utilization rate of 90%, an efficiency rating of 80%, and a demonstrated capacity of 63.4 hours?

57.6 standard hours

If an organization has the following sales and forecasting results over a three-month period, what is the mean squared error? (Assume a smoothing constant of 0.3 and exponential forecast rounding to the nearest whole unit.) April: Actual sales of 20 units, exponential forecast of 18 units May: Actual sales of 16 units, exponential forecast of 19 units June: Actual sales of 15 units, exponential forecast of 18 units

7.3 To find the mean squared error, first calculate the error for each month:April = 20 - 18 = 2May = 16 - 19 = -3June = 15 - 18 = -3 Mean Squared Error = Sum of Squared Errors for Each Period/Number of Periods[(2)2 + (-3)2 + (-3)2]/3 = (4 + 9 + 9)/3 = 22/3 = 7.3

For which of the following companies would implementing supplier relationship management (SRM) probably be most critical?

A company that uses raw materials and prefabricated components to create consumer goods

Which of the following scenarios shows proper application of the principles of communicating demand?

A manager thanks a marketing person for properly communicating the results of an underperforming advertising campaign on a timely basis, even though it was bad news.

When considering methods of sharing their performance ratings with suppliers, which of the following provides quantitative feedback? A. Scorecards B. Voice of the customer C. Surveys

A. Scorecards

Cycle counting is usually paired with which of the following to minimize the total cost of inventory shrinkage?

ABC inventory classification

Which of the following is an aggregate-level inventory process?

ABC inventory classification

Which of the following often accompanies goods that are intended to travel in sealed containers across borders, including goods intended to be admitted only temporarily for use in events such as tradeshows?

ATA Carnet

Which of the following could reduce the likelihood of operations managers ignoring the consensus plan agreed to in a sales and operations planning (S&OP) meeting and following their own plans?

Actively listen to the operations managers' opinions and issues.

Which of the following modes of carrying cargo requires the least durable packaging?

Air

Which of the following modes of transportation is most appropriate for carrying small, highly valuable, fragile or perishable cargo?

Air

Which two modes of transportation have poor accessibility as a tradeoff?

Air and water

A midsize manufacturing firm works with a large retailer as its primary customer; the retailer is a dominant firm in the chain. The manufacturer has several sources of supply for each of its key materials and is trying to align its supply chain strategy with the retailer's corporate strategy. Which of the following must be the primary consideration when the manufacturer is setting corporate strategy?

Alignment with the retailer's corporate strategy to holistically maintain a profitable relationship

Demand forecasts are likely to be most accurate for which of the following items?

All cars

Which of the following could appear in a planning (modular) bill of material?

All common components used in all of the organization's tabletop radios

The principle of economies of distance refers to which of the following?

All miles are not equally costly, and longer trips usually include a greater percentage of less expensive miles.

For which of the following items should demand be calculated rather than forecast?

All steering wheels for new Chevrolet Cruzes

Who promotes relationships between alliance partners, identifies opportunities for collaboration and improvement, and builds joint initiatives to capitalize on those opportunities?

Alliance manager

Which of the following statements about strategic alliances and joint ventures (JVs) is true?

Alliances differ from JVs because alliances do not create a new entity.

For product development, which is considered to be value-added?

An unnecessary handle that most customers say boosts confidence

What is a key aspect of campaign management for vulnerable customer campaigns?

Analyzing the customer data to predict customer behaviors

An organization needs to order a type of teddy bear nine months in advance of the holiday season and bases the quantity partly on the consumer confidence index. What sort of inventory is this?

Anticipation inventory

Which of the following is not a true statement about the logistics value proposition?

As long as the customer is satisfied with the service, the cost is not critical.

A buyer uses its market dominance to insist upon cost reductions from its suppliers, offering nothing in return. It gives suppliers a week to comply and threatens to terminate contracts. Which of the following could a supplier do to preserve its contract and already narrow profit margins?

Ask for more time to study the problem and present an alternative that could help both parties.

Which of the following production strategies allows for mass customization without long lead times?

Assemble-to-order

Which of the following production strategies sometimes meets resistance from distribution centers because of the increased demands for skills training and capacity expansion?

Assemble-to-order

Basing a demand forecast for major kitchen appliances on housing start data is an example of which of the following?

Associative forecasting

Which of the following warehousing functions is most like spot stocking but has a wider range of seasonal goods?

Assortment

Which of the following was a drawback in the early versions of material requirements planning (MRP) software?

Assumed infinite capacity

Which of the following is a true prerequisite for developing collaborative relationships central to supply chain strategy?

Auditable information exchange to share knowledge, not just data

Which of the following is a riderless materials-handling device that moves along optical tape or magnetic wire in the floor?

Automated guided vehicle system (AGVS)

Which of the following materials-handling devices would you purchase to get the maximum storage density per square foot of warehouse space?

Automated storage and retrieval system (AS/RS)

Which is the most significant factor when considering the location of warehouses?

Availability of services needed

Which of the following is a benefit associated with customer segmentation?

Better ROI (return on investment) on promotion budgets

Which of the following is a situation in which an exponential smoothing technique should have its smoothing constant reevaluated?

Bias due to a worse effect from recession than expected

Which of the following is the type of contract that initiates all foreign shipments?

Bill of lading

A hard drive manufacturer produces hard drives for dependent and independent demand sales. How should the organization categorize these hard drives once they pass final inspection?

Both dependent and independent demand hard drives are finished goods inventory.

What is the focus of a rough-cut capacity check?

Bottlenecks

Which of the following methods is most appropriate for lifting very heavy items while causing minimal disruption to floor activities in the area?

Bridge crane

Which of the following provides a point of reference for formulating sales and operations planning?

Business plan

An organization buys in response to an immediate need, sharing technical purchasing requirements rather than strategies or plans. This exemplifies which of the following types of business relationships?

Buy on the market

If the organization offers a corporate customer trade credit of 1/10 net 30, what does this encourage?

Buying in greater quantities, since payment is not due right away

What is a common method of aggregating products for demand planning purposes?

By life cycle stage

Which of the following statements about technology and customer relationship management (CRM)/supplier relationship management (SRM) is true?

C. Technology plays a supporting role in CRM and SRM.

Which of the following items makes up the majority of rail cargo in the United States and Great Britain?

Coal

Which of the following types of customer relationship management (CRM) campaigns are different enough that they typically require separate planning and cross-training of marketing and sales professionals?

Campaigns for customer types such as prospects or loyal customers

Pick-to-light systems speed inventory retrieval when used in conjunction with which of the following materials-handling equipment?

Carousels

Obsolescence or theft risks are included in which inventory cost category?

Carrying costs

Pilferage contributes to which of the following costs?

Carrying costs

Which of the following documents is used to bolster an importer's claims for favorable import duty rates granted by treaty to the exporter's country?

Certificate of origin

A supplier is resistant to certification. Which of the following would be the best argument to help convince the supplier to make the effort?

Certification can improve throughput and reduce costs.

What is needed to prove that hazardous waste was transported properly to an incinerator and incinerated?

Chain of custody

An organization has a diverse sales force, and salespeople frequently work from home or on the road. The organization wants to add customer relationship management (CRM) technology solutions very quickly. Which of the following would best help this organization meet these goals?

Cloud-based CRM system available as a software as a service (SaaS) subscription from a vendor

Which of the following is a solution for a manufacturer who wants to outsource some non-core manufacturing competencies but doesn't want to increase the risk of miscommunications, integration failures, or process delays in a currently highly efficient production process?

Co-location

Which of the following exemplifies a long-term arrangement in which suppliers are fully aware of the purchaser's goals and strategies and work with the purchaser to develop and implement tactics?

Collaboration/strategic alliance

Which of the following documents would a banker consult for information about the value of export-import cargo in connection with a letter of credit?

Commercial invoice

Which of the following is proved through actions more than words, such as by disciplining staff who violate a partnership agreement?

Commitment

Which of the following types of carriers must be approved by the federal government and has heavily regulated rates and services?

Common carriers

An organization has many part-time employees who can be sent home if orders are sluggish. It also has standing contracts for busy periods with external producers. Which of the following elements of demand management does this organization's strategy focus on?

Communicating demand

Which of the following is true of collaborative relationships in the supply chain?

Companies will always have a good reason to treat competitors in a different class from other types of supply chain members.

Which of the following companies is most likely to be interested in customer relationship management (CRM)?

Company that manufactures power tools for professional contractors

For which of the following companies would customer relationship management (CRM) probably be a priority?

Company with a customer base with diverse needs and interests

Which of the following would be included in a list of dependent demand items?

Computer hard drives delivered to the computer manufacturer for installation depending on customer request

Which third-party logistics provider (3PL) contract clauses need to be robust because 3PLs will likely see details on supplier and manufacturer costs?

Confidentiality clauses

Which of the following is not a component of quality as defined by APICS?

Degree of customer satisfaction with product price

Which of the following combinations of inventory management and ownership models would be best for slow-moving inventory that must be on site if it is to sell at all?

Consignment-based, retailer-managed inventory

A consumer is dissatisfied with an organization's product and posts a poor review of it on a social networking site. Which of the following should the organization do if it locates this comment?

Contact the individual and attempt to listen or respond to the complaint.

Which type of warehouse has an advantage over other types because its warehouses are managed more efficiently and can often also provide economies of scale in transportation?

Contract

Which of the following supplier relationship management (SRM) activities might be outsourced successfully?

Contracting with strategic partners

Effective logistics strategy depends upon which of the following?

Coordination of transportation, warehousing, and packaging to create maximum value

What is an often-overlooked cost of a warranty offering?

Cost of uncertainty of the number of returns during the warranty period

Which of the following expresses the costs that should be included in a total cost of ownership (TCO) analysis?

Costs that differ between alternatives

An organization has a small warehouse with numerous tiny parts. Which of the following could help this organization reduce its time spent in physical inventory verification counts?

Create bins with a maximum number of parts in them.

Which of the following warehouse operations assumes no storage of incoming goods before reshipping?

Cross-docking

Which of the following is true of contracts for partnerships?

Cultural differences in contracts and problem resolution styles should be a primary consideration when arranging formal contracts in the U.S.

Which of the following could have the unintended consequence of increasing demand variability for an organization's product or service?

Culture of optimism in demand forecasting

Which of the following is true of the people or metrics involved in supply chain management?

Current supply chain performance is better quantitatively benchmarked against the firm's desired performance than qualitatively benchmarked.

Which of the following is an example of the "voice of the customer" (VOC) technique?

Customer design groups

Which of the following describes a vulnerable customer?

Customer who is about to discontinue service or stop purchasing the product

Total lead time can be determined from the information in which of the following?

D. Both A and B

Capacity control is most closely related to which of the following activities?

Daily input/output

Which of the following best describes a customer data warehouse (CDW)?

Data about customers, products, and the marketplace from internal and external resources

Which of the following forms the basis for a naive demand forecast?

Data from the last demand period

In the supplier certification process, before evaluating alternative suppliers and selecting suppliers, which of the following should already have been done?

Decide who should be carrying out testing or auditing.

A firm uses an exchange to force price and other concessions from suppliers. Which of the following can occur when these methods are used for strategic supplies?

Decreased trust due to adversarial relationships

Which of the following activities would hinder implementation of a supplier relationship management (SRM) strategy?

Delaying training and corporate communication of the strategy until after pilot program results are identified

Which of the following may increase as a tradeoff when a logistics chain institutes risk pooling by moving inventory from several smaller warehouses to a larger central storage facility?

Delivery lead times

Which of the following forecast techniques relies upon an expert panel that responds to questionnaires and never meets face to face?

Delphi method

Referring to the table below, calculate a forecast for April using the three-month moving average method. Based on your calculation, which of the following statements correctly relates the forecast to the actual April demand of 22? Month Demand Forecast January 21 X February 17 X March 22 X April 22 May 23

Demand exceeds forecast by 2.

Pegging refers to the ability to make a connection between the required numbers of a specific component and which of the following?

Demand for the parent according to the material requirements plan

What is the key benefit of using an echelon inventory policy?

Demand from all lower echelons (including in-transit inventory) can be aggregated.

An organization's extended supply chain has both domestic and foreign demand for its products and has multiple owned and partner-owned production plants. Which of the following can synchronize all of these various plans for demand and supply?

Demand management

Which of the following statements about customer segmentation is true?

Demographic segmentation is not based on data about actual customer buying behaviors.

What is an organization's next step in a make-versus-buy analysis after they have determined that they do not have texting-based customer service as a core competency?

Determine if there is a need for texting in customer service.

Which of the following is the best value proposition for the customer segments described below? - Segment A value profile: ongoing relationships and consistent lead times but not fast delivery; 15% of the market and 65% of revenue. - Segment B value profile: low price and fast delivery; 60% of the market and 18% of revenue.

Develop a reliable supply chain with dedicated agents for segment A and a highly automated, low-cost, fast delivery supply chain for segment B.

A new customer segment will buy an organization's product only if it has additional features that require a new product variant. This variant would increase sales volume and only slightly increase marginal profits. Based on a customer-driven marketing philosophy, what should this organization do?

Develop the proposed new variant at the proposed price to gain lifetime customers.

When developing a partnership with a customer service supplier, an effective customer service management strategy would include which of the following?

Developing an annualized contract or trading partner agreement

Which of the following stages of the product life cycle is an ideal opportunity in which to create a sense of customer ownership of a product or service?

Development

Into which of the following categories would a precision spring for an expensive clock fit if it was the key component that made the clock tell time reliably and needed to be of exacting dimensions and quality?

Direct/core competency material

After a "buy" decision has been made, what is the next step in the process of offshoring some manufacturing to a country with low labor costs?

Do a detailed assessment of offshoring requirements.

Which of the following is most likely to be the main reason why the total warehouse inventory count of a key raw material would understate the organization's actual investment in that raw material?

Doesn't include in-transit inventory

Which of the following is not a benefit of a free trade zone (FTZ)?

Duties are always eliminated on imports.

At a time when manufacturers' orders for durable goods are declining and there is an inverted yield curve, what would be the best sustainability initiative?

Effectively reducing product packaging

According to the waste hierarchy, which is the best disposal method listed?

Electric company trash burner

When supplier relationship management (SRM) increases the visibility of the entire supply chain, it benefits SRM participants in which of the following ways?

Enables faster response and better contingency planning

For make-to-stock production, the master production schedule includes production dates for which of the following?

End items

An organization is performing inventory planning and network design. Why would the organization find considering echelons helpful in the process?

Entire echelons could be omitted from the supply chain.

Which of the following would not be an acceptable measurement of output for an operations plan for use by operations managers?

Euros

For an innovative product introduction at a new organization, which of the following would provide the best guidance for how many items to produce initially?

Expert opinion guided by purchased customer data

A channel master or nucleus firm is finding that many of its current partners have begun to look for ways of bypassing the firm, while others are performing redundant functions that cause unnecessary competition among supply chain members. Which of the following is a likely cause of this behavior?

Exploitation of power-based relationships

Which of the following types of firms generally acts as a shipper's long-term consulting partner, smoothing the way through foreign customs and politics but not buying or selling cargo?

Export management company (EMC)

Which intermediary would be best to help a company prepare their goods to survive rough handling but with the least bulk and weight?

Export packing company

Which of the following types of firms, known in Japan as sogo shosha, may be a large conglomerate that actually buys goods in one country for sale in a foreign market?

Export trading company

Which of the following is true of portals?

External portals can provide company- and role-based access and authentication.

Which of the most commonly used Incoterms applies to both sea and inland waterway shipments?

FOB

An organization outsources a key activity and stays involved with the supplier, monitoring and controlling on a daily basis. The resulting quality is not what was desired, but the supplier insists that its quality is superior to that of its competitors. Which of the following is the most likely reason for this problem?

Failure to establish clear performance expectations

A European organization's fully owned subsidiary operates in South Korea, producing a large amount of inventory valued in South Korean wons (KRW) in a make-to-stock strategy for the holiday season. Which is a risk that the European headquarters faces?

Financial ratios measuring current assets could be affected by currency fluctuations.

If a government is providing incentives to encourage organizations to use higher forms of the waste hierarchy over lower forms, which action would capture the highest incentive benefits?

Finding ways to reduce the amount of hazardous materials in new products

Which of the following is a valid general observation about forecasts?

Forecasts are always wrong, but supply planner estimates should not be used instead.

Which of the following pieces of warehouse equipment provides maximum flexibility in the movement, placement, and retrieval of pallets?

Forklift truck

Which of the following is an example of a loyalty program?

Free shipping for high-volume customers

Which of the following types of third-party logistics firms schedules cargo transport but operates no carriers?

Freight forwarder

A retailer is growing tired of one of its supplier's frequent promotions because they invariably lead to overstocks after the sale and produce no net gain in profits. The supplier also dislikes the promotions for similar reasons, but each season a new promotion is rolled out. Which of the following would best help these firms resolve their problems?

Frequent personal communications and relationship building between the firms

If an organization pursues a level production strategy, which of the following occurs in a period with inventory buildup and low sales in relation to the income statement items of cost of goods sold (COGS) and general and administrative expenses?

General and administrative expenses will continue to reduce profits during the period.

A stock keeping unit (SKU) in a distribution system can identify which of the following?

Geographic location

Evolving delivery patterns caused by increased online ordering may require a retail organization to move toward which practice?

Getting suppliers to ship directly to the organization's customers

Which of the following is a primary benefit of entering into a vendor-managed inventory (VMI) agreement?

Greater visibility of inventory management

If you are creating a production schedule using the lot-for-lot replenishment method, which of the following would you use to determine the planned order receipt (assuming you know the gross amount required and the amount of inventory on hand)?

Gross requirement minus projected amounts on hand and scheduled receipts

What type of supplier segmentation would help develop an apples-to-apples benchmarking system for delivery consistency?

Grouping suppliers by similar lead time

A demand forecast determined by a panel of all the salespeople in an organization may reach an exaggerated, false conclusion due to which of the following situations?

Groupthink effect

Which is an example of reuse from the waste hierarchy?

Putting returned items in new boxes and back on the sales floor after inspection

Which of the following describes the main drawback of the wagon crane?

High fixed cost

Which of the following is likely when a retailer of children's toys uses conventional forecasting to anticipate demand (as does their wholesaler) and adds some safety stock to orders both to smooth out the inevitable variations from the forecast and to replenish supplies after a promotion (not communicated to their suppliers) that the retailer plans to have to liquidate excess inventory?

High inventory holding costs for the retailer and high variability of demand for the wholesaler

Which of the following conditions is a potential drawback of lot-for-lot replenishment when items must be ordered frequently?

High setup costs

Allowing suppliers to participate in improving the supply chain system helps supplier relationship management (SRM) participants in which of the following ways?

Higher customer satisfaction

Which of the following professionals should chair the demand planning phase meeting that is part of the sales and operations planning (S&OP) process?

Highest-ranking demand-side professional

Which of the following would be the most effective method of keeping the demand plan from being consistently biased toward overstated demand?

Hold the demand side of the organization accountable for its request for product.

Rachel Carson's publication of Silent Spring in 1962 conveyed which of the following key messages?

Human activities often impact the environment with unintended consequences.

In which of the following ways are non-vessel operating common carriers (NVOCCs) different from freight forwarders? I. They perform the physical work of consolidating and loading and unloading cargo. II. They buy and resell space on carriers. III. They arrange transportation for commercial cargo.

I and II

Which of the following correctly describes Incoterms? I. They are not legally binding in contracts of carriage. II. They are recognized only in European Union (EU) and North American countries. III. They identify which party assumes risk at certain points in the transportation process.

I and III

Which of the following statements about free trade zones (FTZs), also known as foreign trade zones or export processing zones, are true? I. They can help manufacturers with potentially noncompliant shipments avoid customs fines by repacking or remarking imports. II. Streamlined retail sales can occur. III. They are geographic areas where duties, tariffs, and quotas are delayed and/or avoided.

I and III

Which of the following is taken into consideration when calculating inventory accuracy? I. Tolerance level per stock keeping unit (SKU) II. Target value of SKU III. On-hand quantity and recorded balance IV. Total number of SKUs

I, II, III, and IV

A great majority of international shippers use freight forwarders because they: I. arrange charters or book vessel space. II. handle payments. III. quote carrier rates.

I, II, and III

Before a firm starts outsourcing logistics to third- or fourth-party providers, it must determine its current costs. Costs can be determined by which of the following? I. Cost of current logistics functions II. Potential savings in time III. Improved quality of customer service IV. Reduced business focus

I, II, and III

Which of the following statements about the World Trade Organization (WTO) are true? I. The WTO helps less-developed nations with better access to world markets for their exportable products. II. The WTO can arbitrate disputes and complaints between member nations. III. Businesses located in a member nation can open a branch in another member nation to gain access to that country's markets.

I, II, and III

What is a chief customer officer (CCO) in charge of?

Identifying and responding to customer care opportunities

Which of the following constitutes a potentially appropriate way to segment a market? I. Geography II. Market potential III. Commonsense assumptions IV. Age

I, II, and IV

In the development stage of customer relationship management (CRM), customer ownership has which of the following characteristics? I. Sense of partnership and mutual investment II. Uncertainty due to incomplete CRM strategy III. Involvement of key customers in crafting the product or service IV. Increased likelihood of early sales

I, III, and IV

The fifth step in the process for creating and maintaining a customer-centric business (monitor, measure, and report) displays what characteristics? I. It is based on measures arising from ongoing customer contact. II. It is an event that should be performed at least annually. III. It involves continuous research. IV. It is iterative.

I, III, and IV

Which of the following factors has led to greater customer focus in business? I. Higher general quality of goods and services II. Trend of increasing profit margins III. Advances in technology IV. Greater global competition

I, III, and IV

Which of the following would promote proper implementation of demand plans and reduce demand variability? I. Altering the date of the preliminary sales and operations planning (S&OP) meeting to match when data are available II. Basing trend projections on as many extrinsic leading indicators of change as possible III. Using key drivers of change as a "sanity check" on forecasts IV. Using last year's sales data as a "sanity check" on this year's forecasts

I, III, and IV

Import duties are generally assessed as a percentage of: I. landed cost. II. Cost, Insurance, Freight (CIF) amount. III. Free on Board (FOB) amount.

II and III

Which of the following is/are common currency-related trends? I. Use of cash-on-delivery payment terms II. Use of currency hedging when available III. Use of letters of credit

II and III

Which of the following should be done regarding inventory policy if a snack chip manufacturer adds a new type of snack chip to its line of offerings? I. Create an independent, stand-alone policy for the new line. II. Link the item's policy to the production line product family. III. Link the policy to the organization's other product families stocked on the same shelves.

II and III

A total cost of ownership (TCO) study can show that when pursuing offshore outsourcing to a country with low labor costs, the reduction in the total cost is usually partly offset by increases in which of the following? I. Warehousing costs II. Transportation costs III. Raw materials costs IV. Monitoring and control costs

II and IV

When designing the customer relationship management strategy for computer algorithms for segmenting customers and prospects, which of the following is the best input data, according to best practices? I. Expert opinion or assumptions II. Demographics III. Projected behavioral traits IV. Historical purchasing patterns

II and IV

Increased customer visibility means: I. making most customers profitable in the first year of contact. II. knowing what each customer values. III. being aware of each point of contact between the customer and the business. IV. seeing the transaction from the customer's viewpoint.

II, III, and IV

Which of the following represents a benefit of the internet and intranets for supplier relationship management (SRM)? I. Early detection of quality problems through timely information sharing II. Better forecasting of raw materials and labor through synchronized planning activities III. Decreased time-to-market through coordinating workflows

II, and III

An organization does research and then creates a schedule and budget for influencing demand for a new product, including promotions and advertisements. The activities are performed well, but, after nine months, the sales are far below what was expected and the product is abandoned. Which of the following aspects of the plan-do-check-action cycle did these demand-influencing activities omit? I. Plan II. Do III. Check IV. Action

III and IV

Offering the choice of either waiting in line at a grocery store or using a self-checkout kiosk is designed to do which of the following? I. Plan demand. II. Communicate demand. III. Influence demand. IV. Manage and prioritize demand.

III and IV

Offering the choice of either waiting in line at a grocery store or using a self-checkout kiosk is designed to do which of the following? I. Plan demand. II. Communicate demand. III. Influence demand.Iv. IV. Manage and prioritize demand

III and IV

Which of the following is true of ISO standards in relation to supplier certification?

ISO certification must be renewed every three years.

In a customer-focused organization, what is the starting point for new product development?

Identifying customer need

Which of the following is not a true statement about levels of collaborative intensity?

If there is little room for error in sourcing and the company has the internal capability, it should still form an alliance with one or more suppliers.

Item A is constructed over one week using parts B and C. Part B has a lead time of two weeks, and part C has a lead time of four weeks. A week after part C was ordered, the scheduler discovers that part B will have an additional week of lead time. Which of the following should the scheduler do?

Immediately order part B and issue a net change so no other rescheduling is needed

What is the biggest difference between railroads in Europe and those in many other parts of the world?

They are not standardized.

How can a manufacturer in a supply chain best reduce its costs of product transport?

Improve product stowability.

Some organizations use safety lead time to address lead time variations in which of the following?

In-transit inventory

Which of the following conditions contributes to the supply chain phenomenon known as the bullwhip effect?

Inaccurate demand forecasting

Which of the following represents a sound approach to tracking data to use in demand forecasting?

Include all products in a family.

Which of the following demand management techniques is being employed when an organization keeps a planned new version of its software system secret until after the busiest shopping season is over?

Influencing demand

A firm that has always claimed that it has the best processes and highest quality has recently suffered losses. They dictate these processes to their long-term Asian suppliers, but several of the suppliers have, without any explanation, recently had a string of cost and quality problems. Which of the following would best help this firm resolve its problems?

Increase visibility with the suppliers and allow the suppliers to suggest processes that work for them.

Which of the following is a risk of ordering more inventory than required to fill forecasted demand?

Increased obsolescence

When a logistics manager removes a complete tier from the distribution chain to reduce overall expenses, there may be a tradeoff for expenses in which of the following areas?

Increased transportation costs for extra miles of carriage

Which of the following statements about virtual organizations is correct?

Individual organizations must preserve their own identity and integrity.

An organization is looking to help its supplier with continuous improvement. It would like to seek certification that reflects its narrow focus in a specialty field. Which of the following would be the best place to start searching for appropriate certification standards?

Industry-specific nonprofit association

Which of the following is a leading economic indicator?

Initial unemployment insurance claims

Which of the following levels of technology integration is described as various systems that feed into each other, creating some capacity for integration of the data?

Interfacing technology

Which can be seen as a lubricant that keeps the supply chain flexible even though it is also a buffer that hides flaws in the supply chain that might otherwise be corrected?

Inventory

Which of the following changes tend to occur as a result of adding warehouses to a logistics network (assuming no other changes)?

Inventory increases, while the ratio of storage space to total warehouse square feet decreases.

What is the key question to ask when setting a customer service strategy?

Is the cost to achieve the level of service justified?

Which of the following statements about the role of supplier relationship management (SRM) in the supply chain model is correct?

It focuses on meeting demand.

The costs of an organization's initial customer marketing and relationship building consistently result in expenses in excess of the revenues that are generated. Which of the following describes this situation?

It is sustainable if some customers can be retained long term.

Which of the following statements about a trading partner agreement between strategic partners in a supplier relationship management (SRM) strategy is correct?

It should be mutually beneficial for both partners.

A company creates a bar chart showing the causes of customer returns on its new dinner plates. What key message does the following illustrate?

It shows that the vast majority of customer returns (80%) are due to one of four reasons—plate finish problems.

What is a benefit of visualizing prior sales data in chart form when trying to determine future sales?

It will indicate how the data need to be prepared.

Which of the following is true of a global supply chain alliance that is forged strongly from the beginning?

It will still need constant maintenance.

Your organization has been working diligently on improving the customer service scores of its logistics services in order to reach a 100% service level. Is that a good strategy?

It's not a good strategy, because the company could incur additional expenses that are counterproductive.

Which of the following does not describe suboptimization?

It's the amount of unusable warehouse space shared by supply chain partners.

Which has the potential to reduce customs clearance delays?

Joining national trade partnerships

Which of the following is the best basis for moving to formal remedies after a supplier has been warned that it is in violation of its contract and has been given a deadline for further review?

Judgment call on supplier's intent to make changes

Which of the following conditions is generally associated with lot-for-lot replenishment?

Just-in-Time (JIT) manufacturing

Which of the following is the technique of using visual signals to "pull" components through the manufacturing process?

Kanban

Kevyn and Terry both work in the supply chain. Kevyn focuses on supply-related issues; Terry focuses on demand-related issues. Which of the logistics components would each one tend to consider first?

Kevyn considers transportation first, and Terry considers warehousing first.

A demand plan dashboard for use in the demand review meeting of the sales and operations planning (S&OP) process should include which of the following information?

Key events, risks, and notes on where demand-side departments disagree

If a restaurant chain performs hourly forecasting, which of the following will likely be reduced, assuming that there is acceptable forecast error?

Labor costs

When deciding whether to acquire a component from a domestic or foreign source, which of the following comparisons provides the most accurate assessment of their relative value?

Landed cost of each source

Rather than choosing the least expensive component for its computers, an electronics manufacturer factors in the costs of reverse logistics. This best exemplifies which of the following distinctions between traditional purchasing and strategic sourcing?

Landed cost versus total cost of ownership

Which of the following capability improvement goals is a proactive reason for forming a strategic alliance?

Learning new skills from the alliance partner

A French organization that is working with an Italian organization should be mindful of the differences between which of the following when performing supplier relationship management (SRM)?

Legal systems

Suppliers involved in online marketplaces/exchanges may experience which of the following risks?

Less chance of process improvements

Which of the following would tend to reduce the amount of safety stock needed at a particular location?

Less frequent ordering

A company's product is basically a cheap but branded plastic toy that doesn't require much quality. Which would be a type of material that is tightly linked to the company's brand equity?

Leveragable materials

Inventory status, capacity status and plans, production schedules, and shipment and demand forecasts are all shared by all parties on a real-time, online basis. This best exemplifies which of the following distinctions between traditional purchasing and strategic sourcing?

Limited visibility versus entire supply chain visibility

What is the correct order of steps for integrating the supply chain? (Note that these steps do not reflect the entire process.)

Locate in the right countries and geographic locations; develop an effective export-import strategy; select warehouse locations; select transportation modes and carriers.

What supply chain function do customers usually take for granted?

Logistics

A business plan would typically include which of the following?

Long-term guidance for developing tactical production plans

What is a risk of a conservative returns authorization policy?

Long-term reduction in revenues

Which of the following would best reveal a situation in which salespersons changed demand plan numbers to deliberately understate demand just to make their next quarter's sales goals easier to meet?

Look at the assumptions to see if they support changes in the demand plan.

Which of the following types of inventory costs could be overlooked when setting safety stock levels because they are difficult to quantify even though they are significant costs?

Lost sale costs

Which of the following fixed versus variable cost scenarios correctly identifies the cost structure of trucking?

Low fixed costs, high variable costs

Which is the primary benefit of a horizontal marketplace or trading exchange?

Lowers transaction costs

Referring to the demand table below, calculate forecasts for May using both the three-month moving average (MA) and the naive forecasting methods. Which of the following statements correctly identifies the two forecasts? Month Demand Forecast January 21 X February 17 X March 22 X April 22 May 23

MA forecast = 20.33; naive forecast = 22

An organization pursuing an innovation strategy is moving manufacturing overseas but needs to maintain continuity of supply. Which is the best option for this organization?

Maintain the current plant until the overseas site is online.

What is the term for a customer relationship management (CRM) tactic described as "an analytical model to identify vulnerable customers"?

Predictive churn

Once a collaborative partnership has been formed, which of the following should be avoided?

Maintaining existing incentives from each of the respective firms

Which type of inventory is a period expense and thus must be expensed on the income statement in the period in which it was purchased rather than being listed on the balance sheet?

Maintenance/repair/operations (MRO)

An organization wants to pursue the lowest total cost of ownership (TCO) with its offshore supply chain partners. Which of the following problems cannot be overcome by hiring local experts in the foreign country or making other internal process changes?

Management incentives rewarding organizational cost reductions

Which of the following statements about the challenges of implementing customer relationship management (CRM) and supplier relationship management (SRM) strategies is true?

Managers must acquire new skill sets.

Supply chain participant priorities often conflict. Which of the following groups sets a priority on high production output and low production costs?

Manufacturers

In collaborative demand management, communicating demand may involve which of the following?

Manufacturers using retailers' demand data rather than their own Administrative processing of a customer's order for delivery from a specific warehouse Distributing a copy of the sales order to the customer

What information needs to be tracked at each point along the reverse supply chain?

Marginal costs/revenues and the status of each product or subcomponent

Supply chain managers can be useful as intermediaries between manufacturing professionals and which area that is often otherwise underrepresented in production planning?

Marketing

Which of the following could be subject to alteration as the result of decisions made in an executive sales and operations planning (S&OP) meeting?

Marketing plans

Which of the following is an input to rough-cut capacity planning (RCCP)?

Master production schedule

Which of the following is an input to the material requirements plan (MRP)?

Master production schedule

A salesperson needs to expedite an order, but doing so will require alteration of the production of items inside a planning time fence. With whom would the salesperson negotiate this change?

Master scheduler

Which of the following processes develops the master production schedule based on demand and inventory levels?

Master scheduling

Which of the following is a process change that would improve the time to market of customer relationship management (CRM) activities?

Minimizing the number of tasks that need to be performed sequentially

Where in the planning process does the capacity requirements planning process occur?

Material requirements planning

Which of the following processes results in production numbers driven by dependent demand?

Material requirements planning

Suppliers are folded into the purchasing entity, business goals are shared, and competition has been eliminated. This best exemplifies which of the following types of business relationships?

Mergers and acquisitions

What is the "voice of the customer" (VOC)?

Method of customer research

Which countries can realize benefits under the North American Free Trade Agreement (NAFTA) of 1994?

Mexico, Canada, and the United States

Which of the following is the least important goal of warehousing?

Minimizing the need for physical labor

Which warehouse function typically benefits from a full load discount and more efficient use of storage space in the warehouse?

Mixing

When it comes to choosing the method of transporting goods, what does the logistics manager first need to determine?

Mode that best fits with the overall logistics needs for the product and the marketing channel

A supply chain partner organization that measures supply chain sales, shipments, and stockouts is adhering to which of the following collaborative principles?

Monitor performance.

How often, under normal circumstances, does a pre-S&OP meeting take place?

Monthly

The sales and operations plan (S&OP) includes which of the following?

Monthly production figures by product family

Buyers involved in online marketplaces/exchanges may experience which of the following risks?

More product rework and returns

An organization normally receives a basic component for a product in a fully assembled state. Due to a natural disaster, it must assemble some of these components itself. Where would it check to see the raw materials needed to perform this assembly work?

Multilevel bill of material

Which would improve economies of scale in recycling?

National recycling standards that supersede local standards

After selecting the proper partner, what is the next step in creating a successful alliance?

Negotiate a win/win deal.

Which of the following statements about successful strategic supplier relationships is true?

No single restructuring of processes will be adequate.

Can a highly efficient cross-docking system achieve the goal of no inventory ever at rest?

No, due to inherent variability in demand.

A logistics manager might approach which of the following intermediaries to purchase cargo space that the intermediary purchased elsewhere and marked up for resale?

Non-vessel operating common carrier (NVOCC)

Which of the following is the most significant drawback of specialized package carriers such as FedEx and TNT?

Price

A shipper whose exports are carried from a foreign port to the importer's dock by trucks that return empty to the port might hire which of the following types of firms to find goods to carry on the backhaul route?

Non-vessel operating common carrier (NVOCC)

What supplier performance rating systems source indicates if a supplier-caused discrepancy is found after a part is shipped to stores or has been installed in an assembly?

Number of floor failure events

Which of the following component purchasing goals are reactive or defensive reasons for forming a strategic alliance?

Number of suppliers able to provide the component

What is often an unintended consequence of expediting supply or manufacturing?

One customer is happy, but several others are upset.

Which of the following statements about a customer data warehouse (CDW) is correct?

One-to-one marketing cannot be achieved without using a CDW.

An organization's product is in decline and losing market share. Which of the following is most likely to generate innovative ideas on how to develop the next-generation product?

Ongoing use of unstructured voice of the customer (VOC) initiatives

Which of the following is a best practice for the creation of demand plans?

Organizations should include a mechanism for recording uncertainty in inputs.

Which of the following is a best practice for managing and prioritizing demand?

Organizations should retain demand management and prioritization power solely within the demand side of the organization.

An organization has outdated equipment for a core competency, and it has cash flow issues delaying updates to the equipment. What action might free up some cash to help them make these investments right away?

Outsource a non-core competency activity where the vendor will incur capital expense.

Which of the following companies is most likely to be interested in supplier relationship management (SRM)?

Paint manufacturer that purchases chemicals and dyes from various suppliers

Which of the following levels of intensity of supply chain relationships consists of longer-term contracts, limited business with competitors, and joint new product development?

Partnership

One of a tire producer's suppliers is a natural rubber producer whose products are becoming subject to more demand even as the product becomes more rare. Another of their suppliers is a tire recycler, who provides the tire producer with old tires. Which of the following collaborative intensities would be appropriate for these partners?

Partnership or higher for the natural rubber producer; buy on the market for the tire recycler

Which of the following correctly describes the benefit of conducting periodic inventory counts?

Periodic counting provides a financial value for all inventory at one point in time.

Which of the following modes of transporting petroleum involves the lowest operating costs?

Pipeline

Which of the following has the highest fixed costs of any means of transporting petroleum?

Pipelines

Which of the following offers the greatest security against loss when transporting liquid cargo?

Pipelines

Which of the following constitutes a major, direct output of material requirements planning?

Planned production/purchase orders

Which of the following warehouse operations assumes that there will be costs for training or hiring staff with final production skills?

Postponement

Which of the following can be a result of a carefully designed reverse logistics chain?

Potential for very lucrative customer service contracts and extended warranties

Which of the following best defines a virtual organization?

Potentially long-term relationship between separate business entities to design products and immediately share all customer data

Which of the following meetings is typically used to arrive at a consensus between plant managers, logistics managers, schedulers, customer service managers, and other supply chain managers prior to involving executives in sales and operations planning (S&OP)?

Pre-S&OP meeting

Which of the following documents constitutes a price quote in export-import trade?

Pro forma commercial invoice

Which of the following is available from an internal interface to a supplier relationship management (SRM) system?

Procurement history

During which sales and operations planning meeting might a demand-side professional get vital information on a need to shorten time to market?

Product review meeting

What is the proper order for the meetings in the sales and operations planning (S&OP) process?

Product review, demand planning, supply planning, financial review, pre-meeting

Which of the following is the primary focus of master scheduling (MS)?

Production amounts for individual products

Which warehouse activity entails removing material from the dock (or location of receipt), placing that material in a staging area and then moving it to a specific location, and recording the movement and identification of the location where the material has been placed?

Put-away

Software calculates the lowest total cost of ownership (TCO) for an organization. The supply plan cannot fully address all service, capacity, and quality goals defined in the corporate strategy. What is the first step the supply chain manager should take to win supply plan approval?

Provide several differentiated yet cost-efficient options.

Which of the following statements best describes the relative care that should be taken in securing A, B, and C inventory items?

Provide the best protection for A items.

Which of the following types of warehouse ownership might a firm choose to minimize storage costs when adding distribution capacity for a new product with a highly seasonal demand pattern?

Public warehousing

Which of the following statements about the role of purchasing in a supplier relationship management (SRM) model is correct?

Purchasing roles have become more layered between strategic management and buying.

Which of the following is generally considered an important combination method in forecasting because it can reduce bias, even though an effect such as groupthink could increase bias?

Qualitative forecasts

A logistics manager concerned with avoiding breakage of cargo would be least inclined to choose which of the following modes of transportation (ignoring tradeoffs)?

Rail

Considering the types of cargo typically carried over long distances by inland water carriers and the rates per ton-mile, which of the following modes of transportation is the barge's closest competitor?

Rail

An organization needs a warehouse for many stock keeping units (SKUs), space is at a premium, and they plan to install a directed pick and put-away system. Which of the following would be the best stock location method?

Random location storage

Which will help an organization and its trading partner better manage currency exchange risks between each other?

Rate sampling clauses as part of contractual payment terms

Why might a supply chain planner choose to use a contract carrier?

Rates are usually lower than with common carriers, and they can better respond to customer needs.

Which of the following might cause cyclical movements in a time series of demand data?

Recession

Powder coating is a type of painting that uses electrical charges to attract the sprayed material to the object being coated. It is an example of which of the following when compared to standard spray painting?

Reduce

Benefits of a fourth-party logistics provider (4PL) arrangement include which of the following?

Reduced costs and/or higher-quality logistics operations

The sales and operations planning (S&OP) team might decide to adopt a chase production strategy because it offers which of the following benefits?

Reduced inventory holding costs

Which of the following actions is most likely to mitigate the consequences of the bullwhip effect?

Reducing lead times by simplifying processes

Which of the following is a process in which marketing must stay most involved to prevent an issue from transforming a product from an order qualifier or winner into an order loser?

Reducing manufacturing cycle times

Which is a primary goal for reverse logistics for most organizations?

Reducing the volume of reverse logistics transactions

What is the current trend regarding the number of warehouses in a system?

Reduction in the total number in relation to product movement

Which of the following is an integral part of the sales and operations planning (S&OP) process because it promotes meeting brevity and consensus building?

Replanning

Which of the following would promote accuracy and efficiency in the demand management process?

Require headquarters sales staff to provide assumptions used in demand plan numbers.

Demand and which of the following types of information typically flow from the end customer upward in a service supply chain?

Requirements

Which of the following tasks is most likely to be performed by a purchasing agent/planner rather than a purchasing manager?

Resolving discrepancies in orders or accounts

An organization's business plan calls for directly competing in developing markets rather than working through intermediaries as before. Which of the following would identify a deficiency in capacity resulting from this change?

Resource planning

A metal stamping company produces multiple items in their thin steel processing area. At a recent sales and operations planning meeting, a need for an additional stamping press was identified though resource planning. Which of the following was an input to verify the need?

Resource profile

Supply chain participant priorities often conflict. Which of the following groups sets a priority on short order lead times and quick delivery turnaround times?

Retailers

Which of the following is a current global force shaping supply chain management strategies?

Shortening product life cycles

Which is a reverse logistics best practice for an organization that places a strategic priority on efficient, cost-effective returns processing and has the infrastructure to do this at high levels of customer satisfaction?

Retain the functions, but restrict returns processing to selected facilities.

Which is an example of a return that could be part of the reverse supply chain?

Return initiated by a component supplier and directed to a raw material supplier

In what type of auction does the buyer post the equivalent of an online request for quotation, many sellers bid on the contract, and the lowest bidder has a binding contract to fulfill the buyer's needs?

Reverse auction

Component D is pegged to parent items A, B, and C. If a last-minute authorized change is made to the production run of D, which of the following should the scheduler do?

Review items A, B, and C to verify that the change was not made in error.

During rough-cut capacity planning (RCCP), it is discovered that a bottleneck resource has unused capacity during a planning week and too much load in the next week. Which of the following should the master scheduler do?

Revise the schedule.

In enterprise resources planning (ERP) system manufacturing modules, the result of master scheduling is the master production schedule (MPS), which is evaluated for constraints by which of the following?

Rough-cut capacity planning (RCCP)

Which of the following would contain information such as machine setup and run time?

Route sheet

Which of the following statements about supplier relationship management (SRM) technology is true?

SRM technology can increase the visibility of the entire supply chain.

Where would a wholesaler find information on an organization's hazardous waste if they are using the Globally Harmonized System of Classification and Labeling of Chemicals?

Safety data sheets

Expenses involved in the reverse logistics chain may be offset by which of the following?

Sale of service contracts

Which of the following aspects of a customer relationship management technology system would be used for channel partner management and pipeline management?

Sales force automation

In the collaborative planning, forecasting, and replenishment (CPFR) model, which of the following tasks would be performed jointly by the manufacturer (seller) and the retailer (buyer)?

Sales forecasting

Which of the following benefits of a customer data warehouse (CDW) can result from the strategic allocation of human and technology resources according to customer channel preferences and purchasing patterns?

Sales productivity

Which of the following sources of customer information best provides insight into what customers are asking for and what they're not interested in?

Sales representatives

Which of the following would best achieve the goals of improving forecast accuracy, reducing the frequency of supply-demand mismatches, and minimizing the non-selling time of headquarters sales staff?

Sales staff are required to make brief demand planning inputs each day noting changes.

Which of the following is true of a situation in which an organization has long lead times when matching customer orders to supply?

Salespersons should work to educate customers on lead time issues to set expectations.

A manager declines a partnership because the information requested for greater visibility between the extended supply chain is closely connected to data that produce a competitive advantage for the firm. This is an example of the failure of which of the following to be established?

Security

In which type of customer segmentation are customers grouped by income?

Segmentation by demographics

Which of the following is the best example of a promotion activity in a customer-driven marketing strategy?

Segmenting customers according to their value to the business

Which practice would help organizations craft targeted messages that would be appropriate for groups of individuals needing a higher degree of care and attention than others?

Segmenting other supply chain partners

Which of the following is the most critical aspect of influencing demand with extended supply chain partners?

Selling the benefits of changes using soft skills such as leadership

What are the top three factors, in order of importance, that influence most retail customers' decisions to purchase products?

Service, quality, price

Which of the following would best solve a problem in which expert labor needed for technical support is more costly and difficult to acquire in some parts of the country than in others?

Service-related distributor integration

When embracing continuous improvement in implementing a supplier relationship management (SRM) program, which of the following actions should partner companies take?

Share innovative ideas with each other without asking for compensation.

In regard to technology, collaborative planning, forecasting, and replenishment (CPFR) may be said to depend fundamentally upon which of the following?

Shared data

Which of the following actions would be the best choice if the load scheduled for a work site exceeds its rated capacity?

Shift work to another work center with available capacity.

A dock receipt is issued by which of the following entities?

Ship agent

You are shipping copy machines and high-end cameras from Asia. What is the best choice for the transportation to use in this case?

Ship the items using two different modes: the copy machines via water and the high-end cameras via air.

What has transformed global trade in manufactured goods as dramatically as jet planes have changed the way we travel and the internet has changed the way we communicate?

Shipping containers

Which of the following provides a sound method for grouping products into product families for the operations plan?

Similarity of manufacturing processes

Which of the following loads constitutes the most appropriate shipment to send by truck?

Small, high-value items traveling a short distance

Which of the following correctly identifies the membership of shipping associations?

Smaller export firms seeking discounted rates

When contracting logistics to a third-party provider (3PL), what should the contract specify, especially for the first six to 12 months of the relationship?

Specific relationship-building efforts by each party

Which of the following supplier relationship management (SRM) analytical applications would quantify how much it is costing the organization when buyers resist using national agreements for some categories of purchases?

Spend analysis

Which of the following types of warehousing is most appropriate for agricultural supplies that might be used only once during the year?

Spot stocking

You know the actual hours worked at a work center. What else do you need to know to calculate the work center's efficiency?

Standard hours of output

Some companies that operate a particular kind of transportation are trying to minimize their costs by running their vehicles more slowly to minimize fuel consumption, even though it increases delivery time. Which mode is most likely using this strategy?

Steamship lines

Which of the following is a good example of a virtual organization?

Strategic alliance of four companies to develop a new drug under one company's name

Which of the following is the most appropriate subject for discussion at the demand planning phase meeting that is part of the sales and operations planning (S&OP) process?

Strategies to close any gaps between the demand plan and business plan revenue goals

Which of the following is a type of assistance marketing could provide to a supply chain manager when one product in a product family is having significant supply lead time problems?

Substitution

Which of the following is the primary measurement of whether a supplier certification process is valid?

Supplier procedures should be related to the customer's requirements.

An organization has completed certifying its key suppliers. Which of the following can be used to confirm if the organization is obtaining the returns it was expecting from its investment?

Supplier quality rating

What is a key difference between certification and supplier rating systems?

Supplier rating systems are used more frequently to capture ongoing performance levels.

When segmenting suppliers, which is the best criterion to use in identifying the most important supplier segment?

Supplier's ability to advance strategic goals

Which of the following should be included in the performance measurement of suppliers if the organization wants to ensure long-term growth and continual improvement of supply chain visibility?

Supplier's financial stability and capital expenditures

Supply chain participant priorities often conflict. Which of the following groups sets a priority on flexible delivery times, large volumes, and consistent materials mixes?

Suppliers

Which of the following statements about the supplier certification process is correct?

Suppliers should be clearly informed of certification process criteria.

Which of the following phases or meetings in the sales and operations planning (S&OP) process might end with professionals recommending reducing the demand plan but only as a last resort?

Supply planning phase

Which of the following is the best example of risk mitigation in a strategic alliance?

Surmounting limited availability of component suppliers

Which of the following statements about implementing customer relationship management (CRM) technology is correct?

Systems should be measured against whether they increase efficiency and meet customer expectations.

An organization has a reliable supplier who has never had order or lead time issues. Which of the following choices would be best when the price of the materials fluctuates strongly with the market and is currently low?

Temporarily increase cycle stock.

Which of the following is a potential risk of using a third-party logistics provider (3PL)?

The 3PL employee represents the firm to the client, and the 3PL may have contracts with the firm's competitors.

A seller of industrial equipment uses a letter of credit with a buyer in a foreign country. What is a risk that still exists after the goods have passed customs in the buyer's country but before the transaction is complete?

The buyer could refuse to accept the goods.

A shipment of cash registers from Indonesia enters a bonded logistics park in China. When the cash registers are loaded on a container ship bound for South Africa, what is the appropriate customs procedure?

The cash registers can be immediately loaded, because they were considered to be offshore the whole time.

Which of these companies is practicing good risk management in terms of its suppliers?

The company develops detailed plans to shift work orders among several certified global suppliers in the event of labor disruptions in their countries.

According to Jordan Lewis, author of Partnerships for Profit, which of the following could be a negative indicator when selecting a potential strategic partner?

The firm's management is not introspective.

Which is the most important criterion for making the decision to contract out a business function to a third party?

The function is a core competency for the third party.

Which of the following statements identifies a beneficial result of including more periods in a moving average?

The impact of random variations is reduced.

An organization is using an order point system, and its supplier reduces its delivery lead time. What will happen if the organization keeps the same order point?

The level of safety stock will automatically increase.

A manufacturer of luxury boats gets a request from a customer to upgrade the seats on a boat in work-in-process inventory. There is a demand time fence for the hull and engines and a planning time fence for the furnishings. Which of the following is the minimum requirement to make this change?

The master scheduler should make the change if it doesn't delay the final schedule.

In a master scheduling grid, the planning horizon relates to the cumulative lead time in which of the following ways?

The planning horizon is equal or greater than the cumulative lead time.

The primary objective of transportation is to carry goods/materials between partners and customers:

The primary objective of transportation is to carry goods/materials between partners and customers:

Which of the following is a benefit of using a third-party trading exchange that spends time preparing for its auctions?

The third party performs traditional procurement activities for many consumers, creating economies of scale.

When conducting capacity forecasting for a warehouse that uses random location storage, what would happen if the maximum inventory of each type of unit is used to determine the overall warehouse footprint size?

The warehouse would have a large amount of excess capacity.

A local supplier is selected as a supply partner over an international supplier who had a lower total cost of ownership. An audit reveals that the supplier was given more weight for being local. Which of the following would make this weighting valid?

The weight is based on the organization's corporate social responsibility policy.

Since reverse logistics affects the entire product life cycle, one can expect which of the following?

There will be increased use of customer service with products in early life cycle stages.

Which of the following statements about effective supplier performance measurement systems is true?

They automate key supplier performance measurement activities.

Which of the following describes customer-focused businesses?

They educate customers throughout the purchasing process.

Which of the following describes lifetime customers?

They have forged a win-win relationship with the business in question.

Which of the following situations applies to lifetime customers?

They increase the need for customer relationship management (CRM) activities.

To qualify as a private carrier, a firm must own or lease vehicles for its use and manage their operation. Which of the following is another characteristic of private carriers?

They must not be primarily in the transportation business.

Managers are enticed by the lower item cost of a product component when it is sourced overseas in a country with low labor costs. Which of the following can a supply chain manager use to show managers that item cost is only a minor part of the overall equation?

Total cost of ownership

Which of the following statements most accurately identifies the effect of increasing order sizes on inventory carrying and ordering costs in the economic order quantity calculation?

Total costs drop up to a point and then rise steadily.

Which of the following could improve the perceived reliability of the master scheduling process if previous last-minute changes approved by salespersons have created schedule havoc?

Time fences

The impact of seasonality on demand in a fast-food restaurant might be measured in which of the following ways?

Time of the year Day of the week Hour of the day

Which of the following statements correctly identifies the purpose of the weights in a weighted moving average?

To be more sensitive to recent trends in demand

What is the purpose of the Harmonized Tariff Schedule (HTS)?

To have a standard set of numerical identifiers that provide descriptions of products for import and export

Which of the following goals is the most compelling reason for a manufacturer to own its own warehouses rather than using a contractor's warehouses?

To increase control over warehouse design decisions

Which of these proactive reasons to form strategic alliances focuses on shared technology that can add to the skills base of both organizations?

To increase organizational expertise

What might be one reason to decentralize returns processing as opposed to centralizing it?

To increase the speed of processing

Which of the following is true of the use of data for decision making?

To smooth out variability in forecasts, use aggregated data rather than item-level data.

Which of these proactive reasons to form strategic alliances focuses on lowering system costs and using resources more effectively?

To strengthen operations

Which of the following is part of the correct definition of customer relationship management (CRM)?

Tool to support existing and potential customer needs

Which of the following (assuming work center- and period-specific data) would provide the number of units that can be produced at a work center during a single period of time?

Total time available divided by lead time

Which of the following would you select to pull several trailers conveying pallets?

Tow tractor with trailer

Which of the following materials-handling options uses space efficiently, has the potential to improve inventory identification and accuracy, and is flexible?

Towline

A boat manufacturer whose customers want unique boats could do which of the following to increase customer satisfaction in this area while staying profitable selling competitively priced midsize luxury watercraft?

Track customization decisions by geographical area and use it to advise customers.

Which is a best practice for expediting transportation?

Track the percentage of orders expedited and the marginal costs of expediting.

What is a best practice when sales or managerial overrides are used in combination with seasonally adjusted exponential smoothing?

Track the quantitative and qualitative forecasts separately.

Which of the following is an example of a sales force automation (SFA) tool?

Tracking applications for evolving sales opportunities

A purchaser and its suppliers form an ongoing relationship in which they all participate in improving the system. This best exemplifies which of the following distinctions between traditional purchasing and strategic sourcing?

Transactional versus collaborative purchasing

What level of communication would be expected in a successful small business still run with paper versions of the general ledger and with purchase orders once a month by telephone and is asked by its most important customer to accept EDI orders?

Transactional with information sharing

If you were able to get a 20% discount on any of the following logistics expenses, which would you choose to receive the maximum cost savings?

Transportation

As measured by millions of tons, which of the following modes of transportation moves the most cargo in the United States?

Truck

When conducting a supplier certification process for an ISO (International Organization for Standardization) standard, which of the following is necessary when asking a supplier to commit to a process defined in a formal agreement?

Trust that the information will not be used to their competitive disadvantage

For U.S. companies exporting products to all countries except Canada, companies must file electronic export information online if the export is valued at:

US$2,500 or more.

A new manufacturing process produces wastewater with higher levels of acidity than can be discharged. What can the organization do to solve this issue in a way that is also high on the waste hierarchy?

Use a waste exchange to advertise acidic water as a possible raw material.

Which of the following is a method of replacing physical inventory with better information?

Use postponement centers.

For smaller or less market-dominant organizations, which of the following would best ensure that suppliers are complying with ethical standards?

Use third-party auditors agreed to by both parties.

Comparing the export-import business to domestic supply chains, which of the following is a more common practice with exporting and importing?

Using intermediary logistics specialists

Which of the following identifies a type of collaboration in which a manufacturer of razor blades determines how its product is displayed on a retailer's shelves and performs cycle counting at the store?

Vendor-managed inventory (VMI)

Moving average forecasts are generally superior to naive forecasts in correcting for which of the following sources of variability?

Very short-term fluctuations in demand attributable to no known cause

Which supplier relationship management (SRM) technology allows information collected by one application or supply chain partner to be shared by all applications or allied partners?

Visibility and decision support systems (DSS)

Which is usually planned in manufacturing and can be somewhat controlled even though it isn't value-added?

Waste

A mining process produces a slurry of liquid and mineral debris as waste. Finding an asphalt manufacturer who can use it as an ingredient in new asphalt is an example of what?

Waste exchange

Which of the following is correctly associated with supplier relationship management (SRM)?

Way to ensure mutual profitability while meeting marketplace needs

Which of the following might be used to measure the opportunity cost component of the carrying costs of inventory?

Weighted average cost of capital

A partner organization that restructures some of its internal methods to align with the supply chain network before automating has asked which of the following key business questions?

What business processes must change?

The economic order quantity (EOQ) calculation will work adequately under which of the following conditions?

When order intervals vary

When would lot-size inventory be synonymous with cycle stock?

When purchases are made in full truckload quantities only

A logistics chain may benefit from adding warehouses in which of the following instances?

When small-scale customers require fast, frequent shipments that are more readily accommodated by a decentralized system of warehouses

The cash registers can be immediately loaded, because they were considered to be offshore the whole time.

When the inventory is sold

What is the best reason why a supply chain manager would decide to use a trailer or railcar for temporary storage?

When the product needs to be stored but is scheduled to be moved again shortly

Under International Commercial Terms (Incoterms), when is the risk of loss transferred from the seller to the buyer in a standard FOB Origin contract?

When the seller duly delivers the inventory to the carrier

Which of the following would appear in the routing file?

Work center ID

Cost-effective and efficient collaboration between supply chain partners requires:

a conflict resolution model specified within the buyer-supplier contract.

A company manages catalog purchasing of stationery products and computer equipment for clients. It provides invoicing to its clients and delivers product. This best describes:

a third-party logistics (3PL) company.

An organization working to minimize surprises and get buy-in by key people for a new alliance should first:

align internally by identifying key issues and stakeholders.

The minimum total cost on an economic order quantity (EOQ) curve is:

always directly above the intersection of the carrying and ordering cost curves.

An example of a supplier performance reporting mechanism is:

an automated performance alert.

Pipeline inventory is the products that:

are in transit between locations.

In distribution requirements planning (DRP), the key difference between a push system and a pull system is whether:

area warehouses are authorized to order inventory replenishment.

If an organization has a demand manager position, this person's direct supervisor should:

base performance measurements on the reliability of the overall demand plan.

Stockpiling is a warehouse function used for:

clothing, lawn furniture, and agricultural products.

If an organization outsources all of its production activities but continues to perform warehousing and distribution, then the inventory management role should:

collaborate with external inventory management at each level of production planning.

An organization is failing to achieve its envisioned savings from its new supplier contracts and web-based ordering system, and it discovers that some employees are still using old, personally preferred suppliers. This is a failure in:

compliance management.

A business is attempting to create more powerful bonds with its customers by delivering greater customer satisfaction and mutual dependence. This business is pursuing a strategy of:

creating lifetime customers.

In the supply chain model, customer relationship management (CRM) is instrumental in:

creating more profitable customer relationships.

You are purchasing an item online and receive the following automated message: "Other customers like you have also ordered X. Would you like to learn more about this product now? If so, click here." This is an example of:

cross-selling.

Grouping customers according to distinct values or needs refers to the tactic of:

customer segmentation.

Companies outsourcing customer relationship management (CRM) should:

develop an exit strategy.

The steps for successfully implementing a strategic supplier alliance include:

developing employee negotiation and joint problem-solving skills.

In the majority of situations, the benefit-cost impact of a logistical failure is:

directly related to the importance of the service to the customer.

Establishing clear ground rules for collaboration and conflict resolution benefits both alliance participants by:

encouraging participants to redefine problematic connections rather than break them.

If an organization owning a brand is looking to establish an ongoing relationship with a supplier but does not desire an alliance, it should:

establish prices, discounts, and delivery timing cooperatively.

When evaluating bids from carriers, the logistics employee needs to consider capacity constraints such as:

handling, liability concerns, and conflicts of interest.

The economics of liability refers to:

how the cost of transportation varies along with the protection level of the cargo.

An example of a proactive benefit driving a strategic alliance would be a concern about:

improving time to market or increasing quality.

A company fears that it will be overcome in the marketplace by a competitor who is developing a new technology. In response, the company forms an alliance with a supply chain partner. They invest equally in creating the alliance infrastructure, revise their corporate visions and organizational structure, and create processes to share information and merge workflows. This alliance may fail because it lacks:

individual excellence.

When a restaurant pursues a chase production strategy, at the points of highest and lowest load, capacity key performance indicators for hourly labor and perishable inventory should show that there is:

just the right amount of capacity at both the highest and lowest loads.

A make-to-stock organization with stable demand is expanding plant capacity using an overlapping demand stepwise expansion strategy. When it has capacity in excess of demand, it should produce goods at:

maximum capacity.

A company invites key business customers to participate in the performance evaluations of its account managers. This is an example of:

measuring customer satisfaction.

The demand management person wants to execute an inventory reduction strategy in part by first prioritizing sales of inventory nearing obsolescence. This person may best get buy-in from the sales department by finding ways to:

minimize order backlogs for other products.

In a supplier relationship management (SRM) environment, a framework of performance metrics should be established to:

monitor and identify opportunities for improvement.

A statistical forecast should be:

one of many inputs to demand plans.

A warehouse ideally should:

optimize cube utilization and inventory velocity in part by providing 100% accessibility.

Maintaining a large safety stock of flu medicine in anticipation of a potential epidemic is an example of:

planning demand.

As customers begin to assume that products and services will be of high quality, the competitive differentiator becomes:

price or value.

When pursuing a make-to-order manufacturing strategy, the focus of master scheduling should be on scheduling:

raw materials.

The key to synchronizing supply and demand is to:

reach consensus on a demand plan and a production plan and share relevant changes with supply chain partners.

Vendor-managed inventory is an example of a collaborative initiative that can benefit supply chain participants by:

reducing inventory costs.

By ordering extra safety stock, a purchasing manager might reasonably expect to benefit the supply chain in all of the following ways except:

reducing overall supply chain costs.

If an organization with limited staff has a customer relationship management (CRM) system that allows customers to customize a product-service package, the organization should:

reserve some fee-based service representative help for their more profitable segments.

Successful implementation of customer relationship management (CRM) and supplier relationship management (SRM) philosophies usually requires:

revision of decision-making processes.

Logistics adds value to the supply chain process if:

sales are achieved through strategically placed inventory.

The most productive, cost-effective packaging needs to:

support efficiency, be protective, be labeled, and have low environmental impact.

A method to determine the best mode of transportation for shipping specific product types is to compare:

the value of an item per cubic foot or meter versus the amount packed per cubic foot or meter.

Sales training to increase business-to-business (B2B) customer loyalty should focus on:

understanding the customers' business requirements.

You are ordering a camping tent through the call center for a recreational equipment manufacturer. The operator notes that for a little more money you could receive significantly more value in another tent model. This is an example of:

up-selling.

To keep supply chains competitive, warehousing focuses on:

value-added activities.