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.

Which of the following processes would a company use to evaluate the risk profile for endof-
life planning for a product family?

A.

Distribution requirements planning

B.

Sales and operations planning

C.

Rough-cut capacity planning

D.

Production activity control

The most appropriate reason for a business to comply with the United Nations (UN) Global
Compact practices typically would be to:

A.

enhance the competitive advantage.

B.

gain access to proven management tools

C.

reduce the threat of organized labor.

D.

reduce the cost of operating in multiple countries.

The best way to manage a business relationship is to measure performance to:

A.

cost of ownership metrics.

B.

quality targets.

C.

on-time delivery.

D.

agreed-upon metrics.

Which of the following strategies can be used to help manage global risks?

A.

Direct shipment

B.

Cross-docking

C.

Mass customization

D.

Flexibility

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?

A.

Sales and operations planning

B.

Distribution requirements planning

C.

Supply Chain Operations Reference-model

D.

Supply chain event management

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.

Inventory parameters established using analytic inventory techniques typically are based
on balancing:

A.

supply and dependent demand.

B.

customer service and inventory costs.

C.

transportation and warehousing costs.

D.

inventory levels and decision-making costs.

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:

A.

storing cycle inventory in the distribution centers.

B.

storing finished-goods inventory at the manufacturing plants.

C.

transportation from the distribution centers to the customer.

D.

transportation from the plant to the distribution centers.

The demand side of a traditional warehouse management system primarily is concerned
with:

A.

receiving incoming goods.

B.

assigning storage locations.

C.

assembling outbound orders.

D.

forecasting product demand.