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.

What is the primary benefit of using modular rather than integral designs?

A.

Lower cost of manufacturing

B.

Increased product performance

C.

Greater responsiveness in marketing and production

D.

Reduced complexity of bills of material

A manufacturer and the distributors of its products have decided to focus on price and
product availability as strategic priorities. Which of the following values would be the most
appropriate measure of customer service?

A.

Manufacturer's volume flexibility

B.

Order-fulfillment lead times

C.

Distributors' order-fill rates

D.

Supply chain inventory days of supply

Which of the following statements about the use of bar code labels for product identification
in the supply chain is true?

A.

They have been replaced by radio frequency identification tags.

B.

They can be read by devices 1 to 3 meters from the item.

C.

They facilitate the capture of information about the location of items.

D.

Each of the trading partners must apply a unique label.

A toy company decides to buy more products from an overseas company to reduce costs.
To make sure that goods clear customs more quickly, the company most likely would
engage a:

A.

consolidator.

B.

overseas carrier.

C.

shipping association.

D.

freight forwarder.

When doing international business, a company's total line-haul costs will vary with the:

A.

weight shipped.

B.

distance shipped.

C.

pallets shipped.

D.

volume shipped

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

When implementing e-commerce in the supply chain, a company's toughest challenge
most likely will be:

A.

getting all vendors to computerize.

B.

translating data into universal standards.

C.

convincing the information technology department of the value.

D.

explaining the reason for change to customers.

Component commonality in manufacturing primarily allows a company to:

A.

optimize production runs for the components.

B.

use less-specialized machinery.

C.

decrease single-minute exchange of die processes.

D.

increase planning and control

In the Supply Chain Operations Reference-model (SCOR®), the cash-to-cash cycle time
for a manufacturing company is the number of days between which two of the following
situations?

A.

Paying for raw materials and getting paid for the product

B.

Shipping the product from the warehouse and receiving it at the customer's location

C.

Paying for raw materials and sending an invoice to the customer

D.

Billing the customer and getting paid for the product