1
1. Which of the following is true regarding supply chain
organizations?
A. Service supplier considerations are important only after a
manufacturing site has been selected. B. Supply chains can loop
back on themselves, making suppliers into customers. C. A raw
material producer has no Tier 1 suppliers. D. There is a long but
always finite number of tiers of suppliers in any supply chain.
Answer :- B
2. Which of the following is true of collaborative relationships
in the supply chain?
A. Power-based relationships place long-term gains ahead of
short-term results. B. Incompatible hardware or legacy systems are
no longer a barrier to collaboration due to new methods of
integration. C. The most technologically advanced supply chain
partner will determine the level of supply chain development for
the network. D. Companies will always have a good reason to treat
competitors in a different class from other types of supply chain
members.
Answer :- D
3. Which one of the following approaches to production
scheduling accurately incorporates the theory of constraints?
A. Speed up production after the bottleneck. B. Slow the process
down to the bottleneck's speed. C. Decrease inventory at the front
of the bottleneck. D. Speed up production in front of the
bottleneck.
Answer :- B
4. In a TQM initiative, the definition of "defect" is determined
by which of the following?
A. Project team B. Supply chain manager C. Customer D. Top
management
Answer :- C
5. According to a noted Japanese approach to analyzing business
process problems, why is it necessary to ask "Why?" as many as five
times when seeking the cause of a process defect?
A. First responses tend to name superficial causes rather than
the root causes. B. There may be more than one cause for the
defect. C. Most defects tend to have multiple causes, not just one.
D. Most employees won't admit making an error the first few times
they are asked.
Answer :- A.6. JIT "cells" are laid out to accommodate which of
the following?
A. One production process B. One product family with similar
manufacturing processes C. One specialized type of worker D. One
type of machine
Answer :- B.
7. Which of the following is true advice for ensuring that one's
supply chain is agile and flexible?
A. Mixing products to achieve full truckload shipments may be
highly inefficient for high-dollar, lightweight items. B. When
designing products for maximum supply chain flexibility, putting
customers on the design team will help create modular designs. C.
Cost efficiencies and velocity must take precedence in the supply
chain such as always requiring that full truckloads are used. D. A
manufacturer's trends in demand are best monitored through
visibility with Tier 1 customers.
Answer :- A.
8. Which of the following is a benefit of a vertical supply
chain rather than a lateral supply chain?
A. Technology to handle the increased complexity B. Improved
business focus and expertise C. Economies of scale and scope for
individual functions D. Complete control and visibility of
operations
Answer :- D.
9. In SCOR Level 1, if you divide the sum of the cycle times for
all orders delivered by the total number of orders delivered, you
are using a metric for which of the following supply chain
attributes?
A. Responsiveness B. Reliability C. Adaptability D.
Flexibility
Answer :- A.
10. In an electrical generation supply chain, which of the
following is a Tier 1 service supplier?
A. Fuel supplier B. Electric power utility C. Manufacturer
connected to electric grid D. Facility maintenance
Answer :- D.11. Which of the following phrases best
characterizes the approach to change in total quality management
initiatives?
A. "Big step" overhaul of whole systems B. Short-term
initiatives with precisely defined endpoints C. Tight focus on the
improvement of end-item features D. Successive approximations of a
perfected process
Answer :- D.
12. Which of the following phrases best characterizes the
approach to change in total quality management initiatives?
A. "Big step" overhaul of whole systems B. Short-term
initiatives with precisely defined endpoints C. Tight focus on the
improvement of end-item features D. Successive approximations of a
perfected process
Answer :- A.
13. The Japanese term "kaizen" refers to which of the following
business processes?
A. Root cause B. Continuous process improvement C. Interlocking
business ownership D. Display cards used as production signals
Answer :- B.
14. A manager decides to source their key Just-in-Time (JIT)
manufacturing goods from a local producer even though an overseas
producer sells identical goods for less, even with the added cost
of shipping. Which of the following is this manager most likely
emphasizing?
A. Affordability B. Quality C. Positive supply chain
contribution D. Availability
Answer :- D.
15. According to the functional and innovative product
categories designated by Marshall L. Fisher, which of the following
would be a proper performance indicator for a typical innovative
product?
A. Design for maximum performance at minimal cost B. Inventory
reduction C. High inventory turns D. Aggressively reducing lead
times
Answer :- D.
16. A firm that is always claiming it has the best processes and
highest quality has recently suffered losses because even though
they dictate these processes to their long-term Asian suppliers,
several of them have, without any explanation, recently had a
string of additional costs and quality problems. Which of the
following would best help this firm resolve its problems?
A. Increase visibility with the suppliers and allow the
suppliers to suggest processes that work for them. B. Move
production so that it is once again performed correctly in-house.
C. Find new suppliers who can follow the firm's process more
closely. D. Enforce the provisions of the suppliers' contracts
through litigation.
Answer :- A.
17. Which of the following results from having a firm's
enterprise resources planning (ERP) software designed for automatic
calculation of corporate taxes?
A. The firm will most likely underreport income. B. The firms
will risk violating Sarbanes-Oxley (SOX) reporting requirements. C.
The software will earn a tax deduction based on its use in tax
planning. D. The software will most likely fail to take legally
available deductions.
Answer :- C.
18. Which of the following could be a key performance indicator
(KPI) for replenishment?
A. Introduction lead time B. Inventory turns C. Volume growth D.
Order fill rate
Answer :- D
19. Which of the following is true of the Supply-Chain
Operations Reference (SCOR) model?
A. SCOR applies to all product transactions (physical material
and service). B. SCOR applies to all areas of postdelivery customer
support including returns. C. SCOR applies to demand generation in
sales and marketing. D. SCOR applies to product development.
Answer :- A.
20. What enforcement authority does the U.S. Securities and
Exchange Commission bring to its role in regard to the provisions
of the Sarbanes-Oxley Act?
A. Authority to bring civil court actions B. Authority to impose
jail sentences on executives C. Authority to bring cases to
criminal court D. Investigative authority only
Answer :- A.21. When setting supply chain strategy at a firm
that isn't the nucleus firm, which of the following is the most
important to focus on?
A. What's good for the nucleus firm B. What's good for extended
supply chain partners C. What's good for one's own firm D. What's
good for the final customer
Answer :- D.
22. In a supply chain context, measurable key performance
indicators (KPIs) should be identified for which of the
following?
A. A limited number of top-level corporate and supply chain
strategies B. Performance of all products or services from a
customer perspective C. A limited number of essential supply chain
processes D. Objectives of all key personnel in related functional
areas
Answer :- C.
23. Which one of the following tools provides a visual method
for tracking process variance as part of an improvement
initiative?
A. Pareto diagram B. Control chart C. Process map D. Oliver
Wight checklist
Answer :- B.
24. The Level 2 SCOR measure for cost of goods sold includes
which of the following supply chain costs?
A. Costs of sourcing and making B. Costs of sourcing, making,
and delivering C. Costs of planning, sourcing, making, and
delivering D. Total costs of planning, sourcing, making,
delivering, and returning
Answer :- D.
25. Consider a simplified supply chain in which Lucy sells
psychiatric advice from a booth to her classmates for five cents.
Subconsciously, she gets her information from her psychiatrist
parent and from her pastor. Which of the following are Tier 2
suppliers in this model?
A. Lucy B. Parent/pastor C. Higher education/seminary D. There
are no Tier 2 suppliers in this situation.
Answer :- C.
26. Which of the following usually implicitly exists in very
simple supply chains such as a lemonade stand but must be
explicitly managed in a complex supply chain of massive scale?
A. Compliance with government regulations B. Collection and
accounting for sales taxes C. Supplier management D. Collaboration
between manufacturer and retailer
Answer :- D.
27. Where on a balanced scorecard would you enter a seminar on
financial management for nonfinancial managers developed for the
sales managers?
A. Financial perspective B. Customer perspective C. Innovation
and learning perspective D. Business process perspective
Answer :- C.
28. A manager wants to move to the Supply-Chain Operations
Reference (SCOR) model because their current strategy emphasizes
reducing inventory costs by eliminating warehouses and increasing
volume through sales promotions rather than innovation. Which of
the following orientations is the manager moving from and which is
he moving to by adopting SCOR?
A. From oriented to functional area to oriented to process B.
From oriented to functional area to oriented to entity
collaboration C. From oriented to process to oriented to product or
service D. From oriented to entity manufacturing to oriented to
entity collaboration
Answer :- A.
29. When defining roles for each party in a collaboration, how
should these interactions be structured and why?
A. Sequential interdependence; redundancy of effort is
minimized. B. Reciprocal interdependence; both parties become
dependent upon one another. C. Sequential interdependence; both
parties become dependent upon one another. D. Reciprocal
interdependence; redundancy of effort is minimized.
Answer :- B.
30. Which of the following members of the firm are typically
involved in continuous process improvement initiatives?
A. Shop-floor workers and supervisors B. Middle managers C.
Executives D. All members of the firm, including executives,
managers, and labor
Answer :- D.31. In a JIT system, reduction in lot sizes may
result in which of the following tradeoffs?
A. Increased cumulative setup time B. Increased holding costs C.
Increased inventory accumulation D. Increased handling costs
Answer :- A.
32. If customer demand is running at 500 units per day and
available production time is 300 minutes per day, what is the takt
time?
A. 6 seconds per unit B. 16.7 second per unit C. 36 seconds per
unit D. 1.67 minutes per unit
Answer :- C.
33. When an enterprise buys new technology, which one of the
following should be the primary selection criterion?
A. Processing power B. Features representing the very latest
designs C. Appropriateness to supply chain strategy D. Low cost
Answer :- C.
34. Which of the following is a true prerequisite for developing
collaborative relationships central to supply chain strategy?
A. Auditable information exchange to share knowledge, not just
data B. Deterrence-based arrangements such as aligning sales and
management goals to collaborative objectives C. Sharing some
benefits but none of the burdens of collaboration with partners D.
The most advanced communications hardware and software
Answer :- A.
35. Which of the following is true of contracts for
partnerships?
A. Courts can become involved in conflicts in most Asian
countries without long-term detriment to a relationship. B.
Contracts should be fixed at the start of the relationship because
alterations are difficult to enact between multiple parties. C.
Cultural differences in contracts and problem resolution styles
should be a primary consideration when arranging formal contracts.
D. Contracts should always be used in the negotiation process to
keep relationships true to the agreement.
Answer :- C.
36. Which of the following scenarios is most likely to occur at
the Stage 3 (integrated enterprise) level of supply chain evolution
or higher?
A. Warehouses are located near each market and have more than
enough inventory to handle the next big sale. B. Manager provides a
broad mission and backs it up with threats for nonconformance. C.
Dominant partner coerces others to force price concessions. D.
Sales rep finds a market opportunity but is unable to bring it to
the attention of new product development.
Answer :- C.
37. Which of the following is true regarding a supply chain?
A. Services may be part of a manufacturing supply chain but do
not have a distinct supply chain themselves. B. Information flows
upstream, downstream, and between network members and external
entities. C. Cash flows downstream while materials flow upstream.
D. An electrical power producer that powers a manufacturer's plant
is downstream from the manufacturer.
Answer :- B.
38. The developers of the balanced scorecard approach to
performance were concerned that traditional metrics placed too much
emphasis on which of the following considerations?
A. Current profitability B. Customer complaints C. Past
financial performance D. Future performance objectives
Answer :- C.
39. Which one of the following constitutes the range of
acceptable variability on a six-sigma control chart?
A. Zero variability B. Mean defects plus/minus 3 sigmas C. Mean
defects plus 6 sigmas D. Mean defects plus/minus 6 sigmas
Answer :- D.
40. When the APICS Dictionary, 11th edition, refers to a supply
chain as a "global network," which of the following correctly
indicates what could comprise this network?
A. Only international entities or global processes B. Entities
and processes of any size or configuration C. Processes of any size
or configuration but only international entities D. Entities of any
size or configuration but not processes
Answer :- B.41. Corporate participants in C-TPAT (Customs-Trade
Partnership against Terrorism) receive which one of the following
benefits?
A. Greater reliance on self-policing B. Exemption from border
inspections C. Increased protection for overseas shipments D.
Reduced tariffs
Answer :- A.
42. Which of the following is a significant risk to consider
when selecting a complex, enterprisewide software system?
A. Lack of future upgrade potential for the software B.
Decreased velocity of processes because of software complexity C.
Decreased synchronicity of functions automated by the software D.
Lack of flexibility to improve processes automated by the
software
Answer :- D.
43. What is the minimum level of enterprise evolution in which a
firm might use a logistics supplier to integrate with external
members and also internally combine warehousing and transportation
activities to optimize cost versus customer service?
A. Stage 1: Multiple dysfunction B. Stage 2: Semifunctional
enterprise C. Stage 3: Integrated enterprise D. Stage 4: Extended
enterprise
Answer :- C.
44. Which of the following continuous improvement methodologies
focuses on reduction of defects to statistical insignificance?
A. Just-in-Time (JIT) B. Six-sigma C. Lean D. Theory of
constraints
Answer :- B.
45. A design engineer is creating a product that conforms to
customer needs according to the supply chain's market intelligence.
Which of the following is the most important secondary design
element that the engineer should include in the design?
A. Has a lower price than the competitor's product B. Can be
sold for a positive return C. Has more features than the
competitor's product D. Can reach the market quickly
Answer :- B.
46. When measuring the success of a supply chain management
strategy by the balanced scorecard approach, each key performance
indicator (KPI) should be linked to which one of the following?
A. Employee learning and growth B. Financials C. Internal
business process improvement D. Customer perspective
Answer :- B.
47. Which of the following would a material be that was tightly
linked to the company's brand equity even though it was basically a
cheap but branded plastic toy that didn't require much quality?
A. Direct/core competency materials B. Leveragable materials C.
Commodity materials D. Bottleneck materials
Answer :- B.
48. Which one of the following authorities has issued directives
mandating reporting, reduction, and recycling of heavy metals in
end-of-life electronics products?
A. United States government B. European Union C. United Nations
D. Chinese government
Answer :- B.
49. Which of the following is among the Global Supply Chain
Forum's eight essential supply chain management processes?
A. Purchasing B. Order fulfillment C. Logistics D.
Production
Answer :- B.
50. Members of a supply chain want to become demand-driven to
reduce the bullwhip effect they are experiencing. Which of the
following should each partner in the supply chain do?
A. Reduce their contracted or owned transportation modes to
match the new lowered transport needs. B. Improve their forecasting
by basing the information on actual Tier 1 customer orders. C.
Develop agility for more frequent changeovers, staffing, or process
switching. D. Adopt new enterprise software systems that match
current operating processes as closely as possible.
Answer :- C.51. A manufacturer, distributor, wholesaler, and
retailer all agree to base their orders on actual consumer orders
instead of performing detailed forecasts based on each party's Tier
1 customer's actual orders. Which of the following will result, and
what are the likely risks of this method?
A. Pull moves back and push takes its place at the manufacturer
but at the risk of inventory obsolescence or the bullwhip effect.
B. Push moves back and pull takes its place at the manufacturer but
at the risk of inventory obsolescence or the bullwhip effect. C.
Pull moves back and push takes its place at the manufacturer but at
the risk of greater overtime or rush orders. D. Push moves back and
pull takes its place at the manufacturer but at the risk of greater
overtime or rush orders.
Answer :- D.
52. When preparing for a potential business disruption, which of
the following is valid advice for contingency planners?
A. Create contingency plans for yourself and for your supply
chain partners. B. Contingency plans are the responsibility of each
departmental manager in addition to their regular duties. C. After
assessing all potential risks, ensure that each one has a plan for
continued functioning regardless of the cost. D. Having extra
stores of inventory is inadequate protection against a disruption
in production.
Answer :- D.
53. Slip sheets can be used in place of which of the
following?
A. Protective packaging B. Pallets C. Shipping containers D.
Conveyers
Answer :- B.
54. Company A has installed supply chain management (SCM)
software to achieve cross-functional integration. However, some
members of the overall value chain that are not directly part of
the supply chain itself have not provided the desired level of
support for SCM initiatives. Which of the following departments is
most likely to be the one lacking in support?
A. Human resources B. Inbound logistics C. Customer service D.
Marketing and sales
Answer :- A.
55. The Sarbanes-Oxley Act (SOX) of 2002 focuses on which of the
following areas?
A. Financial reporting and controls B. Hazardous materials C.
Terrorism D. Material content reporting
Answer :- A.56. Which of the following is likely when a retailer
of children's toys uses traditional forecasting to anticipate
demand (as does their wholesaler) and adds some safety stock to
orders both to smooth out the inevitable variations from the
forecast and to replenish supplies after a promotion (not
communicated to their suppliers) that the retailer plans to have to
liquidate excess inventory?
A. Low inventory holding costs for the retailer and low
variability of demand for the wholesaler B. Low inventory holding
costs for the retailer and high variability of demand for the
wholesaler C. High inventory holding costs for the retailer and low
variability of demand for the wholesaler D. High inventory holding
costs for the retailer and high variability of demand for the
wholesaler
Answer :- D.
57. The Global Supply Chain Forum (GSCF) defines supply chain
management as "the integration of key business processes from end
user through original suppliers that provides products, services,
and information that add value for customers and other
stakeholders." Which two processes are considered to constitute the
core of supply chain management in the GSCF model?
A. Customer service management and manufacturing flow management
B. Customer and supplier management C. Demand management and
supplier management D. Order management and supplier relationship
management
Answer :- B.
58. With the theory of supply chain versus supply chain in
competition, which of the following is true?
A. When supply chains share suppliers, alignment of business
strategies with supply chain strategies is facilitated. B.
Industries with a small number of dominant suppliers are not ideal
but are best coordinated using horizontal supply chains. C. Use of
common suppliers in competing chains may work to the advantage of
both competitors at a risk of losing proprietary data. D.
Investments in suppliers shared by a competitor will increase the
partnership with that supplier to the detriment of the
competitor.
Answer :- C.
59. In the SCOR model, which performance attribute is associated
with the Level 1 metric, perfect order fulfillment?
A. Supply chain responsiveness B. Supply chain reliability C.
Supply chain adaptability D. Supply chain flexibility
Answer :- B.
60. If a firm has 25 days of accounts payables outstanding and
30 days invested in inventory and their cash-to-cash cycle time is
80 days, how many days of accounts receivables do they have?
A. 105 days B. 80 days C. 75 days D. 50 days
Answer :- C.
61. The antiterrorism measures developed by the Customs-Trade
Partnership against Terrorism (C-TPAT) apply to which of the
following entities?
A. C-TPAT corporate participants B. All domestic and foreign
firms involved in U.S. supply chains C. All U.S. importers D. All
U.S. exporters
Answer :- A.
62. A channel master is finding that many of its current
partners have begun finding ways of bypassing the firm, while
others are performing redundant functions that cause unnecessary
competition among supply chain members. Which of the following is a
likely cause of this behavior?
A. Individual incentives conflicting with organizational goals
B. Working with competitors as peers C. Exploitation of power-based
relationships D. Weakest collaborative links becoming
bottlenecks
Answer :- C.
63. Which of the following is true of the processes or
information technology (IT) that comprises supply chain management
strategy?
A. The most significant barrier to the use of IT for
collaboration and networking among firms is the cost of the IT. B.
A virtual network describes a network composed solely of IT
linkages that a single entity runs. C. Orders in the delivery chain
should be pulled through by manufacturer capacity. D. Having two
supply chains helps when order timing and fulfillment is crucial in
one supply chain but secondary in another.
Answer :- D.
64. Which of the following is a tool that helps visually
identify the 20 percent of causes responsible for 80 percent of
problems (using those percentages as approximations)?
A. Pareto diagram B. Checklist C. Focus group D. Process map
Answer :- A.
65. Many Japanese companies use keiretsu to avoid which of the
following?
A. The challenges of synchronizing a network of independent
firms B. Needing to abandon the control and full integration of a
vertical environment C. Lacking specialization and focus in a
network of independent firms D. The semifunctional enterprise stage
(Stage 2)
Answer :- A.
66. A focus on quality, affordability, or availability indicates
a focus on which of the following?
A. Customer value B. Collaborative value C. Social value D.
Financial value
Answer :- A.
67. According to research by Rice and Hoppe, the theory that
supply chains of companies allied as partners in supply networks
may compete directly with other similar supply chain networks in
reality exists only with which of the following?
A. Horizontal supply chains such as PC sales B. Vertical supply
chains such as poultry sellers C. Individual companies such as an
automobile manufacturer based on their supply chain management
capabilities D. Channel masters such as retail consumer good
giants
Answer :- B.
68. If a firm locates a centralized procurement and processing
facility in a low-tax foreign country, which of the following tax
rates will apply to income generated at the facility?
A. A compromise rate between the local and home country rates B.
A special international rate C. The local country rate D. The rate
in the country of the headquarters
Answer :- C.
69. A kaizen event would bring stakeholders together to design
which of the following?
A. A new supply chain B. A short-term project to improve a
process of limited scale C. A new corporate organization chart D. A
new product
Answer :- B.
70. Developing a JIT supply chain generally implies adopting
which of the following strategies with suppliers?
A. Short-term contracts with revolving suppliers B. Competitive
bidding among the widest possible number of suppliers C. Open
bidding for flexibility supported by frequent inspection of
incoming shipments D. Long-term relationships with a limited number
of suppliersAnswer :- D.71. Which of the following identifies the
emphasis of the Global Reporting Initiative?
A. Developing and publishing environmentally sustainable trade
practices B. Enforcing UN trade sanctions C. Monitoring terrorist
activities D. Policing corporate and supply chain activities
Anaswer :- A.
72. Which of the following is true of supply chains?
A. Supply chain processes are entirely contained within each
entity within a supply chain. B. Supply chains run in only one
direction, toward the customer. C. Competition is an outside
stakeholder to a supply chain that threatens or energizes it. D.
There are two flows that can be engineered in a chain, products and
cash.
Answer :- C.
73. According to SCOR Level 1 metrics, which of the following
attributes of an organization is measured by the increase in
production it can achieve and sustain in 30 days' time?
A. Sustainability B. Reliability C. Adaptability D.
Responsiveness
Answer :- C.
74. Which of the following is true of the people or the metrics
involved in supply chain management?
A. Performance must be measured by ratios of profitability and
velocity, not by a checklist. B. Supply chain management must be
the responsibility of a department-level manager who is equal in
hierarchy to other department heads. C. Current supply chain
performance is better quantitatively benchmarked against the firm's
desired performance than qualitatively benchmarked. D. Supply chain
strategy and control of the related processes depend on having
people educated in functional rather than department thinking.
Answer :- C.
75. According to the Supply-Chain Operations Reference (SCOR)
model, if a refrigerator manufacturing company is at the center of
the model, the supplier of materials to the sheet metal supplier
has only which of the following processes to perform in relation to
the manufacturer?
A. Make, source, deliver B. Plan, source, make, deliver, return
C. Plan, source, return D. Plan, deliver, return
Answer :- D.
76. A value stream map is associated with which of the following
improvement methods?
A. Focus groups B. Six-sigma C. Lean D. Job redesign
Answer :- C.
77. In the Global Supply Chain Forum supply chain management
model, which of the following combine to create a link between
adjacent partners and form a context for the other six
processes?
A. Manufacturing flow management and order fulfillment B.
Customer relationship management and supplier relationship
management C. Supplier relationship management and demand
management D. Product development and commercialization and
manufacturing flow management
Answer :- B
78. Measures of success and incentives for a supply chain
improvement initiative should be linked to which of the
following?
A. Judgment of each participant's direct supervisor B. Four
quadrants of the balanced scorecard C. Approval of top management
D. Outcome of the change initiative
Answer :- B.
79. Strategic objectives and KPIs for supplier relationship
management would be developed during which stage of the SCOR
model?
A. Planning B. Delivering C. Making D. Sourcing
Answer :- A.
80. Which of the following best describes the potential for
different quality methods to work together?
A. Six-sigma and lean are compatible with each other but not
with JIT. B. JIT and lean are compatible with each other but not
with six-sigma. C. JIT, lean, and six-sigma work best when
combined. D. JIT and six-sigma are compatible with each other but
not with lean.
Answer :- A.81. Which of the following is true regarding supply
chain organizations?
A. There is a long but always finite number of tiers of
suppliers in any supply chain. B. Service supplier considerations
are important only after a manufacturing site has been selected. C.
Supply chains can loop back on themselves, making suppliers into
customers. D. A raw material producer has no Tier 1 suppliers.
Answer :- C.
82. Which of the following cost-cutting measures will be most
likely to create net financial value?
A. Eliminating retail locations and selling direct to customers
B. Eliminating inventory holding costs by having suppliers carry
more inventory and ship on demand C. Eliminating partial truckload
shipments and sending only full truckload shipments to retail
outlets to save on shipping D. Eliminating local storage facilities
to save on warehousing costs
Answer :- A.
83. What enforcement authority does the U.S. Securities and
Exchange Commission bring to its role in regard to the provisions
of the Sarbanes-Oxley Act?
A. Investigative authority only B. Authority to bring cases to
criminal court C. Authority to impose jail sentences on executives
D. Authority to bring civil court actions
Answer :- D.84. Which of the following would a material be that
was tightly linked to the company's brand equity even though it was
basically a cheap but branded plastic toy that didn't require much
quality?
A. Leveragable materials B. Bottleneck materials C. Commodity
materials D. Direct/core competency materials
Answer :- A.
85. Which of the following would a material be that was tightly
linked to the company's brand equity even though it was basically a
cheap but branded plastic toy that didn't require much quality?
A. Leveragable materials B. Bottleneck materials C. Commodity
materials D. Direct/core competency materials
Answer: -B.
86. Which of the following is a tool that helps visually
identify the 20 percent of causes responsible for 80 percent of
problems (using those percentages as approximations)?
A. Checklist B. Focus group C. Process map D. Pareto diagram
Answer :- D.
87. A supply chain that produces and sells cigarettes using
traditional forecasting at each stage has been experiencing the
bullwhip effect. Which of the following has the strongest influence
on this effect?
A. Safety stock B. Seasonal fluctuations C. Excess supply
liquidation D. Announced promotionsAnswer :- A.
88. Benchmarking is a tool used to carry out which function of a
quality initiative?
A. Analyze the steps in a process. B. Assess process
performance. C. Determine the roles in an initiative. D. Implement
a process improvement initiative.
Answer :- B.
89. Which one of the following tools provides a visual method
for tracking process variance as part of an improvement
initiative?
A. Control chart B. Oliver Wight checklist C. Process map D.
Pareto diagram
Answer :- A.
90. Consider a simplified supply chain in which Lucy sells
psychiatric advice from a booth to her classmates for five cents.
Subconsciously, she gets her information from her psychiatrist
parent and from her pastor. Which of the following are Tier 2
suppliers in this model?
A. Lucy B. Parent/pastor C. Higher education/seminary D. There
are no Tier 2 suppliers in this situation.
Answer :- C.
91. At which of the following stages would a company be if it
has multiple uncoordinated improvement efforts occurring
sequentially instead of in concurrence, such as inventory
reduction, better forecasting techniques, and lower cost
procurement?
A. Stage 1: Multiple dysfunction B. Stage 2: Semifunctional
enterprise C. Stage 3: Integrated enterprise D. Stage 4: Extended
enterprise
Answer :- B.
92. When defining roles for each party in a collaboration, how
should these interactions be structured and why?
A. Sequential interdependence; both parties become dependent
upon one another. B. Reciprocal interdependence; redundancy of
effort is minimized. C. Sequential interdependence; redundancy of
effort is minimized. D. Reciprocal interdependence; both parties
become dependent upon one another.
Answer :- D.
93. Which of the following is the technique of using visual
signals to "pull" components through the manufacturing process?
A. Lean B. Kanban C. JIT D. Six-sigma
Answer :- B.
94. Which of the following is a true prerequisite for developing
collaborative relationships central to supply chain strategy?
A. Deterrence-based arrangements such as aligning sales and
management goals to collaborative objectives B. Auditable
information exchange to share knowledge, not just data C. The most
advanced communications hardware and software D. Sharing some
benefits but none of the burdens of collaboration with partners
Answer :- B.
95. Strategic objectives and KPIs for supplier relationship
management would be developed during which stage of the SCOR
model?
A. Planning B. Making C. Sourcing D. DeliveringAnswer :- A.
96. Which of the following phrases best characterizes the
approach to change in total quality management initiatives?
A. Short-term initiatives with precisely defined endpoints B.
Successive approximations of a perfected process C. "Big step"
overhaul of whole systems D. Tight focus on the improvement of
end-item features.
Answer :- B.
97. In SCOR Level 1, if you divide the sum of the cycle times
for all orders delivered by the total number of orders delivered,
you are using a metric for which of the following supply chain
attributes?
A. Flexibility B. Responsiveness C. Adaptability D.
Reliability
Answer :- B.
98. A kaizen event would bring stakeholders together to design
which of the following?
A. A short-term project to improve a process of limited scale B.
A new product C. A new corporate organization chart D. A new supply
chain
Answer :- A.
99. A manager wants to move to the Supply-Chain Operations
Reference (SCOR) model because their current strategy emphasizes
reducing inventory costs by eliminating warehouses and increasing
volume through sales promotions rather than innovation. Which of
the following orientations is the manager moving from and which is
he moving to by adopting SCOR?
A. From oriented to process to oriented to product or service B.
From oriented to functional area to oriented to entity
collaboration C. From oriented to functional area to oriented to
process D. From oriented to entity manufacturing to oriented to
entity collaboration
Answer :- C.
100. Which of the following is true of the Supply-Chain
Operations Reference (SCOR) model?
A. SCOR applies to all areas of postdelivery customer support
including returns. B. SCOR applies to product development. C. SCOR
applies to demand generation in sales and marketing. D. SCOR
applies to all product transactions (physical material and
service).
Answer :- D.
