Direct shipment distribution typically offers which of the following advantages?
A. Risk pooling is facilitated.
B. Demand variability is reduced.
C. Service levels are increased.
D. Lead times are reduced.
Which of the following activities typically would be an appropriate application of the ISO 31000 Risk Management Principles and Guidelines?
A. Calculating a risk index for each facility
B. Establishing external risk communications processes
C. Projecting the ability of a facility to recover from an event
D. Preparing for risk management accreditation
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?
A. ISO 14000
B. Global Reporting Initiative (GRI)
C. ISO 26000
D. UN Global Compact
A firm has discovered a product quality issue. What should be the first step in responding to this issue?
A. Determine the root cause of the quality issue.
B. Separate the non-conforming products.
C. Trace the location of the faulty product in the supply chain.
D. Replace faulty products when they are returned by the end user.
The United Nations Global Compact uses 10 guiding principles to:
A. reduce uncertainty for multinational firms regarding legal, import/export, labor, and environmental standards across countries.
B. set minimum levels of compliance across a broad range of transactional areas for businesses operating in multiple geographic regions.
C. align the needs of businesses to increase profitability and the needs of individual countries to ensure their specific legal requirements are met.
D. help ensure that markets, commerce, technology, and finance promote advancement of economies and societies everywhere.
A company that sells engineered-to-order products is planning implementation of a supplier relationship management system (SRM) for direct materials. Which of the following factors is most likely to make the implementation difficult?
A. Complexity of the purchasing process
B. Cost of the application software upgrades
C. Management of variable lead times
D. Resistance of material suppliers
Which of the following factors typically is most important in successfully implementing sales and operations planning (SandOP)?
A. Involvement of specialists from all functional groups within an organization
B. Creation of a dedicated SandOP organizational unit
C. Involvement and accountability at senior management level
D. Focus on 3 months to 18 months in the future
Which of the following outcomes occurs when direct shipping is used instead of a distribution network?
A. Outbound transportation cost is reduced.
B. Inventory velocity is reduced.
C. Order-fill rates are reduced.
D. Inventory obsolescence is reduced.
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:
A. increase.
B. decrease.
C. not change.
D. become less predictable.
Which of the following strategies would increase overall supply chain risk?
A. Single sourcing a product that makes the highest annual profit
B. Outsourcing a product that is not well suited to your operations
C. Identify multiple sources for a product that has a potential for supply chain disruption
D. Internally manufacturing a product that has a high level of technical intellectual property
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