A firm is undertaking a revision of its financial metrics to make them more comprehensive
and has decided to use metrics such as return on investment (ROI), return on assets
(ROA), and economic value added (EVA). This is an example of utilizing which of the
following types of metrics?

A.

Activity based

B.

Stakeholder focused

C.

Financial sustainability

D.

Value chain

In an advanced planning system, which of the following modules feeds the master planning
module?

A.

Purchasing planning

B.

Demand planning

C.

Distribution planning

D.

Fulfillment planning

A company is formally adhering to the principles of the UN Global Compact. After a review
of their supply chain, they have found that a key supplier is in violation of the compact. The
best action for the company to do first is:

A.

do nothing. The company is not responsible for compliance of suppliers.

B.

replace the supplier as soon as possible with a compliant supplier.

C.

notify the supplier of non-compliance.

D.

require the supplier to become compliant

It is most appropriate to measure spending per customer as a proportion of profitability
during which of the following phases of a supplier/customer relationship?

A.

Customer acquisition

B.

Customer retention

C.

Customer dependency

D.

Strategic customer care

A corporation must consider which of the following factors when selecting its enterprise
resources planning system?

A.

Uniqueness of operations

B.

Corporate profitability

C.

MRP and MRP II processing

D.

Industry benchmarks

A company produces and distributes a family of soft drinks in a single country. It has
developed and will introduce a new family of soft drinks for weight- and health-conscious
individuals. There currently are no competitors with nationwide distribution for this category
of soft drinks. Which of the following supply chain strategies would be most appropriate for
the two product families?

A.

Produce both product families to forecast and push through the distribution system.

B.

Produce both product families only after receipt of a distributor order.

C.

Produce the current product family to forecast and the new product family to order.

D.

Produce the current product family to order and the new product family to forecast.

A company that sells direct to industrial and commercial businesses has become
successful by being responsive to the needs of its customers. The company currently
produces in each country all of the products it sells in that country. Several countries in
which the company operates have negotiated an agreement to establish a trading bloc.
Which of the following actions by the company would be most appropriate if the agreement
is implemented?

A.

Consolidate production outside the trading bloc to reduce total costs.

B.

Consolidate production within the trading bloc to reduce tariffs paid.

C.

Outsource the production of products with low sales volumes to reallocate capacity.

D.

Reassign products so that each is produced in a single facility within the trading bloc to
get economies of scale.

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.

An increase in the inventory turnover rate for a supply chain typically would indicate that
there has been a reduction in:

A.

prices to the end user.

B.

supply chain cost of sales.

C.

the manufacturer's inventory.

D.

the total supply chain inventory.

The social dimension of sustainability typically would be addressed when developing and
implementing policies regarding:

A.

accounting practices.

B.

biodiversity protection.

C.

conflicts of interest.

D.

waste reduction.