Cost reduction, improvement of company focus, and freeing assets from noncore activities are among the results achieved through effective implementation of:
A. supply chain management.
B. service supplier management.
C. collaboration.
D. outsourcing.
Which of the following methods is used to minimize the bullwhip effect?
A. Outsourcing noncore business activities
B. Reducing the number of stock keeping units (SKUs)
C. Reducing lead time
D. Increasing factory inventory
A primary objective of a lean enterprise is to:
A. analyze and focus the value stream along all functions to maximize value for the ultimate customer.
B. employ people who have enhanced abilities to learn and adapt to the corporate culture.
C. continuously improve processes and procedures to maintain a level production schedule.
D. create value for its suppliers by incorporating lean manufacturing principles into a supplier certification process.
Attaching a fuel tank cap to a fuel tank door on a car is an example of which of the following lean techniques?
A. Five Ss
B. Five whys
C. Poka-yoke
D. Kaizen
When evaluating several possible supply chain options, a firm considering the minimal total cost should:
A. ensure that the inventory levels are as low as possible to minimize holding costs while still providing adequate customer service.
B. account for the combined costs of holding buffer inventory and incurring inventory shortages.
C. consider the costs of acquiring, holding, and transporting inventory and of servicing customers.
D. place buffer inventory in the lowest cost locations that meet lead time and service level requirements from customers.
Which of the following statements represents a major assumption needed to effectively use days of supply as a measure?
A. The reorder point for the inventory has been calculated correctly.
B. The forecast for the item usage is reasonably accurate.
C. The item is in the growth phase of the product life cycle.
D. The item is subjected to statistical process control (SPC) during production.
Which of the following procurement strategies would be most appropriate for items required by a bottleneck operation?
A. Long-term contracts
B. Global sourcing
C. Automated ordering processes
D. Decentralized policy
Which of the following financial measurements is common to reverse logistics?
A. Scrap as a percentage of total cost
B. Warranty reserves
C. Quality appraisal cost
D. Accounts receivable
A company finds that one of its warehouses is out of capacity to store products. Expanding the physical size of the warehouse is not an option. The most appropriate solution would be to increase the:
A. cash-to-cash cycle of slow-moving items
B. inventory turn of slow-moving items
C. use of break-bulk warehousing
D. inventory days of supply of fast-moving items
A company embarking on the establishment of strategic partnerships and ready to relinquish control over inventory management would choose which of the following customer-supplier interactions?
A. Continuous replenishment
B. Collaborative planning, forecasting, and replenishment (CPFR)
C. Quick response
D. Vendor-managed inventory (VMI)
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