A key concept of lean methodology is to replace forecast driven demand with:
A. enterprise resources planning (ERP).
B. distribution requirements planning (DRP).
C. daily lot sizing of supplier orders.
D. pull signals from customers.
Which of the following modes of transportation is considered a low fixed cost and medium variable cost choice?
A. Water
B. Truck
C. Rail
D. Air
A company plans to invest in new information technology (IT) software. Which of the following approaches is most likely to improve business and supply chain efficiency?
A. Implement software first and then change the business processes.
B. Implement software comprehensively and quickly.
C. Customize software to fit the company's current processes.
D. Implement software and change the business processes simultaneously.
A customer wants to evaluate a transactional relationship they have with a supplier. In addition to cost, which of the following key performance indicators (KPIs) is the best choice for this evaluation?
A. Sourcing efficiency
B. Corporate sustainability
C. Information sharing
D. Engineering capability
A firm has initiated a safety training program for its distribution center (DC) employees on the proper handling of products containing hazardous material. The training program is most likely to improve the firm's financial success and:
A. employee accountability.
B. product quality.
C. product availability.
D. corporate responsibility.
One of the difficulties in purchasing services is to:
A. be fully knowledgeable of the services provided.
B. completely understand the service provider's supply chain.
C. estimate the service provider's cost.
D. measure the quality of services provided.
Which of the following actions is most effective in protecting against unknown risks?
A. Develop and implement a detailed contingency plan.
B. Aggressively invest in researching possible risks.
C. No actions are feasible as the risks are completely unknown.
D. Build the appropriate level of redundancy in the supply chain.
A company wishes to establish a goal for supplier on-time delivery and track supplier actuals against the goal. What type of supply management objective does the on-time delivery goal address?
A. Supplier flexibility
B. Supply agility
C. Supplier reduction
D. Supply assurance
Which of the following statements regarding ISO 14000 Series Standards is correct?
A. It was designed and developed to monitor environmental issues in Europe.
B. It deals with guidelines and procedures for managing a firm's environmental impact.
C. It is specific to those industries which cause environmental pollution.
D. It is a set of mandatory standards enforced by the United States (U.S.) Environmental Protection Agency (EPA).
In order to avoid tariffs and other customs regulations, production process may be redesigned to allow final assembly in the local country. Which of the following options facilitates this approach?
A. Customs-Trade Partnership Against Terrorism (C-TPAT)
B. Trading bloc
C. Third-party logistics (3PL)
D. Blockchain
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