The primary reason to establish a customer-dedicated warehouse is to:
A. integrate and consolidate an assortment of inventory.
B. position inventory to improve response time.
C. balance inventory with consumption.
D. equalize inbound and outbound logistics costs.
Which of the following factors is the most important driver of supply chain change?
A. Health and safety concerns
B. Competitor actions
C. Government regulations
D. Customer perceptions of value
Which of the following variables is the most appropriate customer-facing goal used to determine the target inventory level?
A. Inventory turns
B. Level of service
C. Total delivery cost
D. Delivery lead time
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?
A. Increase the safety stockon all items.
B. Reduce the setup time.
C. Optimize the total cost.
D. Implement batch operations.
When multiple warehouses are combined into one centralized warehouse, the requirement for safety stock is reduced because:
A. there is less in-transit inventory.
B. the total variability of demand is reduced.
C. average cycle stock is reduced.
D. safety stock becomes available-to-promise.
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?
A. Advanced planning and scheduling
B. Collaborative planning, forecasting, and replenishment
C. Supplier relationship management applications
D. Radio frequency identification (RFID) tags
Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange?
A. Expensive material that is critical to the finished good
B. Expensive material for which there are several substitutes
C. Inexpensive material that is critical to the finished good
D. Inexpensive material for which there are many sources
A large bicycle company has outsourced manufacturing and needs to respond immediately to any logistics problems in the supply chain. The best technological solution to meet this need is:
A. enterprise resources planning.
B. supply chain event management.
C. supplier relationship management.
D. a transportation management system.
Supplier certification procedures verify that a supplier:
A. is ISO certified.
B. implements, documents, and improves procedures related to customer requirements.
C. tracks manufacturing processes, including bills of material and routings to support the processes.
D. manufactures products to the specifications shown on engineering documents and bills of material.
A company most likely would implement a supplier certification program to:
A. improve the supplier's procurement process.
B. abide by ISO standards.
C. validate the supplier's compliance with requirements.
D. implement point-of-sale (POS) terminals.
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