A return material authorization (RMA) policy is used in reverse logistics to:
Which of the following considerations is an important supply chain design decision?
Continuous improvement is best described as:
Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by:
Which of the following factors typically is the most significant impediment to implementing collaborative commerce?
A manufacturer of plastic components that are sold either directly or through distributors wants to identify the requirements of the end customers for each market segment. Which of the following approaches would be most appropriate?
A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:
Which of the following situations is an example of postponement?
The value that logistics provides within the supply chain can best be summarized as:
Companies are more likely to consider the consequences of their product design decisions when they view the reverse supply chain as an extension of the:
The primary reason for the evolution of the supply chain is:
Compared to a global strategy, a multicountry strategy would be characterized by:
The question below is based on the following flowchart:
Which of the following phrases most accurately describes the complete flow of demand information?
The primary reason for a firm to pursue strategic supply chain activities is to:
Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:
A company’s decision to charge different prices for the same service sold in different market segments is most likely based on which of the following metrics?
Which of the following organizational design choices is an example of vertical integration?
A company manufactures special products for select customers. When demand for these products drops, the manufacturer can switch the production line to a commodity-type product that can be sold on the open market at reduced terms to generate cash. The company is executing a corporate strategy that is based on:
Which of the following attributes typically makes reverse logistics processes more complicated than outbound logistics processes?
Which of the following consequences is a result of shipping directly from the point of manufacture to the customer rather than through a distribution network?
Which of the following actions typically would be considered part of a reverse logistics strategy?
Compared to mass-media marketing, customer relationship management has the advantage of allowing the organization to:
Supply chains delivering products or services are most able to respond quickly to changing market requirements when:
In addition to sales history, current customer orders, and forecasted demand, which of the following data sources should be used as part of a demand management process?
A firm wants to lose customers that don't value the unique products and services the firm offers and to attract and retain customers that want what the firm offers. Engaging in this activity should allow the firm to:
A firm has identified groups of customers based on specific characteristics the customers desire from products and services the firm can provide. Characteristics include lead times, pricing tiers, and service levels. The firm is engaged in which of the following activities?
Which of the following benefits of supplier relationship management typically results from collaboration with a few critical suppliers?
Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?
Which of the following practices has improved management of the customer pipeline?
The focus of collaborative supply chain management differs from a transactional approach by its emphasis on the:
Medium-term demand management projections are used primarily to:
Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?
Which of the following indicators is most appropriate to use as a measure of supply chain utilization?
A company has been delivering a global product that no longer appears profitable. Senior management’s best response is to:
A main benefit of using customer relationship management (CRM) is:
Which of the following situations is an example of inventory being held as a way to balance supply and demand?
The purpose of continuous improvement in the supply chain is to:
A company plans to maximize profitability by charging more for its products at retail locations than on its website. Which of the following segmentation strategies would best support this plan?
A manufacturer can simplify the forecasting process by pooling demand forecasts for a product group and then:
Which of the following is the most important result when a company implements customer relationship management?
After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?
The use of a seasonal index as a forecasting technique measures the ratio of the:
Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?
A manufacturer uses standard costing, and a potential supplier uses activity-based costing. This difference most likely will have implications for which of the following types of future decisions?
The process of gathering data about what customers need and ensuring that desired features are included in the design and initial planning phase of a new product or service is known as:
What is the primary role of marketing in supporting supply chain management?
The factors to consider in the make-or-buy decision include costs, proprietary knowledge, and:
When designing a supply chain for strategic advantage, a company first should consider:
Demand management involves which of the following undertakings?
A large manufacturer wanting to be more competitive in the global market place decided to outsource its transportation and return processing to other companies on a contractual basis. The companies providing the services would be referred to as:
Which of the following corporate strategies is most consistent with a flexible supply chain strategy?
Which of the following customer relationship management activities most appropriately is used for revenue generation?
Which of the following levels in a supply chain network represents the most upstream external activity?
Supplier quality and delivery performance are critical inputs to which of the following initiatives?
A firm is assessing the risk of business disruption due to several types of natural disasters. When determining the risk of each type of disaster, the firm should consider the probability of each type of disaster and the:
A company has a high product mix and has decided to increase its supply chain flexibility. The most appropriate action for the company to take is to:
An order with a requested ship date inside the demand time fence (DTF) has been received. There is no inventory available-to-promise (ATP). Which of the following positions is most appropriate to decide whether or not to accept the order?
Which of the following technologies best enables pulling products through the supply chain?
Effective collaboration for item replenishment by external suppliers requires:
Which of the following metrics compares the cost of goods sold (COGS) for a period to the average inventory cost for a period?
To handle a dispute over damage to goods shipped between two countries, which international standard should be applied?
A grocery store found that ground beef sales increased when burns were a featured sales item. This customer relationship management (CRM) technique is called:
A manufacturer has direct relationships with its tier 1 suppliers. Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?
Which of the following outcomes typically is the primary benefit from implementing a reverse logistics system?
Which of the following documents includes the valuation of goods for assessment of duties?
Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?
A company distributes products through a multitiered distribution network. Recently there has been high demand variability for a mature product that had experienced stable demand for several years. The most appropriate way to address the variability of demand is to:
One key factor to consider when selecting suppliers for their potential to sustain long-term, mutually profitable relationships is:
A retailer wants to partner with its suppliers to implement automatic replenishment of inventories and joint sales forecasts. Which of the following supply chain management technologies most likely would support the retailer's strategy?
The implementation of major enterprise-wide changes to eliminate or significantly reduce waste is related to which of the following concepts?
An organization is partnering with a supplier. The most appropriate tool to ensure that the supplier has the necessary capabilities is:
An effective company strategy results when combining innovative products with:
Which of the following tools will facilitate greater collaboration as the supply chain matures?
Sourcing via an internet-based trading exchange would be most appropriate for which of the following types of raw materials?
Which of the following rider less material handling systems can be characterized by movement along the floor using optical, magnetic, or wireless control?
A manufacturer's inventory levels are growing and service levels are dropping. Which of the following supply chain strategies is most appropriate to reduce inventory and improve service?
Sustainable business practices are those capable of meeting the:
An organization is striving to improve the transfer of multiple levels of data about products and services to trading partners in the supply chain network. Which of the following solutions is most appropriate?
To achieve the objective of increased profits, a company that implements supply chain tactics must effectively address the conflicts between inventory investment and:
Customer relationship management (CRM) provides the sales and customer service functions with:
Which of the following actions is most likely to reduce the risk of product shortages for a company planning to use a subcontractor to produce some of its products?
The ABC classification system answers which two of the following questions?
Which of the following risks does currency fluctuation pose if a company is operating globally?
A third-party logistics (3PL) provider most likely will add the greatest contributed value in the supply chain by:
A clothing company focuses its attention on high-fashion products and rapid product development. Which of the following types of value is the company trying to create?
Which of the following benefits should a supplier expect to receive by becoming a certified supplier?
Which mode of long distance transportation would cost the least per ton mile?
Which of the following tools has improved management of the customer pipeline?
When developing a supply chain strategy, which of the following actions would be used to evaluate the achievement of the long-term goals of a business?
The voice-of-the-customer (VOC) approach is used most appropriately as a way to:
Which of the following distribution strategies is characterized by items flowing through a warehouse in an almost continuous manner?
Customer demand is 120 units per week. The company works on a 9-hour shift per day, 5-day per week basis. Each shift has a ½-hour lunch break and two 15-minute coffee breaks. The cycle time is 12 minutes. To meet demand, production must occur at the rate of one unit every:
The design process by which a firm structures and manages the supply chain to achieve optimization is called:
Which of the following actions is most appropriate to take with a supplier whose ratings are below the agreed-upon performance levels?
Value stream mapping provides the most benefit when:
Which of the following statements about warehouse layout and storage is correct?
The most stringent measurement of fill rate to support product availability is:
Electronic data interchange (EDI) is best defined as a:
A firm usually buys one month of requirements at a time but has decided to buy two months of requirements for a certain product to take advantage of an order quantity discount...kely made this decision because:
After two firms have established an initial relationship to apply the principles of collaborative planning, forecasting, and replenishment (CPFR) for products, the next logical step is to:
Which of the following metrics would be most appropriate for a group of trading partners that is trying to gain competitive advantage through supply chain reliability?
Which of the following consequences are primary objectives in network design?
Inbound logistics is a supply chain management term used for:
Which of the following circumstances best describes a roadblock to implementing customer relationship management (CRM)?
In the analysis of costs, fixed costs are those that are:
Which of the following types of lead times is related most closely to a supplier performance measure?
In the Supply Chain Operations Reference-model (SCOR®), the cash-to-cash cycle time for a manufacturing company is the number of days between which two of the following situations?
Which of the following actions is most likely to increase total supply chain risk?
In an advanced planning system, which of the following modules feeds the master planning module?
A manufacturer of consumer packaged goods with a single plant and nine regional distribution centers is considering reducing the number of distribution centers in its system. Reducing the number of distribution centers most likely will reduce fixed warehousing and the cost of:
Which of the following statements about the use of bar code labels for product identification in the supply chain is true?
Benchmarking a firm's performance against industry competitors is most valuable because it can reveal:
Component commonality in manufacturing primarily allows a company to:
The transportation manager at a consumer goods manufacturer has decided to begin shipping full truckload rather than less-than-truckload quantities. Which of the following outcomes is likely following implementation of this decision?
An effective procurement strategy for commodity products should focus on:
A company that has consistently achieved a high level of on-time delivery performance has decided to reduce its inventory level significantly. Which of the following outcomes is the most likely effect of that decision on the company's on time delivery performance?
The social dimension of sustainability typically would be addressed when developing and implementing policies regarding:
A company closely monitors supplier performance and notices recent late deliveries from one supplier. The supplier discloses flood damage at the plant. The company quickly shifts sourcing to a new supplier and has minimal loss of sales. Which of the following risk strategies reflects the company's actions?
Which of the following processes would a company use to evaluate the risk profile for end-of-life planning for a product family?
A toy company decides to buy more products from an overseas company to reduce costs. To make sure that goods clear customs more quickly, the company most likely would engage a:
When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements?
The customer who provides point-of-sale data remains the sole decision-maker regarding order quantities when what type of inventory strategy is used?
A firm has discovered a product quality issue. What should be the first step in responding to this issue?
A company most likely would consider moving a portion of its manufacturing to a second location to:
It is most appropriate to measure spending per customer as a proportion of profitability during which of the following phases of a supplier/customer relationship?
The process used to determine the impact of promotions, price discounts, and rebates on demand forecasts commonly is referred to as demand:
Inventory parameters established using analytic inventory techniques typically are based on balancing:
A corporation must consider which of the following factors when selecting its enterprise resources planning system?
When implementing e-commerce in the supply chain, a company's toughest challenge most likely will be:
Direct shipment distribution typically offers which of the following advantages?
A company ships from its manufacturing facilities directly to its warehouses. If the number of warehouses increases, transportation costs between manufacturing facilities and warehouses most likely will:
Which of the following actions is in accordance with the Ten Principles in the United Nations (UN) Global Compact?
Managing supply chain risks includes which of the following activities?
A company that is focused on customer relationship management is most likely to take which of the following actions for customers who have been profitable over time?
A manufacturer and the distributors of its products have decided to focus on price and product availability as strategic priorities. Which of the following values would be the most appropriate measure of customer service?
A company produces and distributes a family of soft drinks in a single country. It has developed and will introduce a new family of soft drinks for weight- and health-conscious individuals. There currently are no competitors with nationwide distribution for this category of soft drinks. Which of the following supply chain strategies would be most appropriate for the two product families?
What is the primary benefit of using modular rather than integral designs?
A company's supply chain depends heavily on sourcing from international suppliers. Conditions increasingly threaten supply continuity. Which of the following actions is most appropriate?
A manufacturer offers a trade-in allowance on a new machine when the customer returns the old machine. The manufacturer reconditions the returned machine locally and then sells it on the used market for a profit. This program is an example of a focus on:
Potential customers of a company's new product have tight tolerance requirements. The company plans to purchase a critical component. To meet customer requirements, the company should first:
A manufacturer is the leader of a group of trading partners that are collaborating to improve customer service levels and profitability. Which of the following methodologies would be most appropriate for synchronizing supply and demand across the supply chain?
When doing international business, a company's total line-haul costs will vary with the:
The most appropriate reason for a business to comply with the United Nations (UN) Global Compact practices typically would be to:
Which of the following distribution approaches for a low-volume, high-variety product line typically will result in the highest level of customer service and the lowest total distribution costs?
A company originally based in Germany sets up companies in India, China, Vietnam, Mexico, and Brazil. It sources most of the raw materials locally and employs the local workforce to manage and produce finished goods. Most of the goods produced are consumed in the same country. The company can be classified as what type of enterprise?
Which of the following strategies can be used to help manage global risks?
Which of the following activities typically would be an appropriate application of the ISO 31000 Risk Management Principles and Guidelines?
Implementation of supply chain applications based on which of the following technologies is most likely to have the lowest fixed costs?
The demand side of a traditional warehouse management system primarily is concerned with:
A company wants to implement a system for managing environmental compliance with legislative and regulatory requirements. Which of the following sustainability tools is most appropriate?
Which of the following measures effectively evaluates overall resources in a distribution warehouse?
Customizing can be an effective warehousing strategy because it allows a company to:
When an importer and manufacturer are operating in a free trade zone, payment of a customs duty is triggered when products are:
Distribution from which of the following types of sites enables goods to enter a country, undergo further modification, and then be exported without paying customs duties?
A company currently produces custom goods for a limited market. To increase market share, the company will implement a strategy to reduce the number of products it produces and reduce delivery lead time. The company can increase its chances of achieving the strategy by:
What are the steps in the supplier relationship process?
A product design that can be produced to requirements even when conditions in the production process are unfavorable typically is known as what type of design?
A company that sells direct to industrial and commercial businesses has become successful by being responsive to the needs of its customers. The company currently produces in each country all of the products it sells in that country. Several countries in which the company operates have negotiated an agreement to establish a trading bloc. Which of the following actions by the company would be most appropriate if the agreement is implemented?