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CSCP Exam Dumps - Certified Supply Chain Professional

Question # 4

Which of the following characteristics are reflective of a resilient supply chain?

A.

Proactive in anticipating events and fast recovery from undesirable events

B.

Reactive in anticipating events and fast recovery from undesirable events

C.

Proactive in anticipating events and slow recovery from undesirable events

D.

Reactive in anticipating events and slow recovery from undesirable events

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Question # 5

When an importer and manufacturer are operating in a free trade zone, payment of a customs duty is triggered when products are:

A.

returned.

B.

assembled.

C.

stored.

D.

distributed.

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Question # 6

Which of the following methods is used to minimize the bullwhip effect?

A.

Outsourcing noncore business activities

B.

Reducing the number of stock keeping units (SKUs)

C.

Reducing lead time

D.

Increasing factory inventory

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Question # 7

The most cost-effective way to increase the velocity of goods in a supply chain is to:

A.

improve the way the supply chain handles goods that are not in motion.

B.

switch to a faster mode of transportation.

C.

establish warehouses near major retail outlets.

D.

subcontract with multiple third-party logistics (3PL) providers who are located at strategic locations.

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Question # 8

Which of the following metrics is typically the most appropriate measure of product and service quality?

A.

Internal inspection

B.

Product performance

C.

Customer perception

D.

Warranty claims

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Question # 9

The customer who provides point-of-sale data remains the sole decision-maker regarding order quantities when what type of inventory strategy is used?

A.

Continuous replenishment

B.

Advanced continuous replenishment

C.

Vendor-managed replenishment

D.

Quick response

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Question # 10

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.

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Question # 11

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.

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Question # 12

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.

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Question # 13

Which of the following distribution approaches for a low-volume, high-variety product line typically will result in the highest level of customer service and the lowest total distribution costs?

A.

Direct shipment from plant to customers

B.

Shipment from a central distribution warehouse

C.

Shipment through a multi-echelon distribution network

D.

Outsourcing the distribution function

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Question # 14

A manufacturer offers a trade-in allowance on a new machine when the customer returns the old machine. The manufacturer reconditions the returned machine locally and then sells it on the used market for a profit. This program is an example of a focus on:

A.

environmentally sensitive engineering.

B.

gray box design.

C.

green manufacturing.

D.

sustainability in operations.

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Question # 15

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

A.

Direct shipment

B.

Cross-docking

C.

Mass customization

D.

Flexibility

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Question # 16

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

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Question # 17

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.

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Question # 18

The mission of the global reporting initiative (GRI) is to provide a:

A.

comparison of key metrics for companies in the same industries across the globe.

B.

feasible business plan that can be shown to global potential investors.

C.

trusted and credible framework for reports regarding sustainability practices.

D.

transparent collaboration between non-profit organizations and governments.

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Question # 19

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

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Question # 20

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.

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Question # 21

The most important challenge to consider when sourcing globally is:

A.

the identification of sources capable of producing the materials.

B.

the availability of low-cost labor and energy.

C.

complying with specific import/export issues.

D.

balancing the difference between piece price and total cost.

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Question # 22

Allowing for organizational restructuring is an example of which of the following steps in creating successful strategic alliances among suppliers?

A.

Managing multifaceted relationships

B.

Negotiating a win-win deal

C.

Planning for change

D.

Conducting pulse checks

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Question # 23

The globalization of a supply chain typically increases uncertainty and:

A.

production lead time.

B.

local competition.

C.

documentation complexity.

D.

product standardization.

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Question # 24

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

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Question # 25

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

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Question # 26

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.

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Question # 27

Which of the following actions most likely will increase market share for products that are critical manufacturing components for customers?

A.

Reducing prices below those of the competition

B.

Providing a level of service to increase customer uptime

C.

Incorporating the latest technology in the products

D.

Storing a range of the products on customer sites

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Question # 28

A company has a single manufacturing facility. It distributes the products through retail stores located in various regions. Which of the following distribution strategies will minimize the company’s warehousing costs?

A.

Utilizing third-party logistics (3PL) providers

B.

Pooling inventory in regional warehouses shipping to multiple retail

C.

Shipping directly from the manufacturing facility to retail locations

D.

Cross-docking at regional warehouses shipping to multiple retail stores

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Question # 29

Which of the following is the most important result when a company implements customer relationship management?

A.

Profits are maximized.

B.

Retention of key customers is increased.

C.

Product options are increased.

D.

Transaction costs are decreased.

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Question # 30

Maintaining a long-term collaborative relationship with a trading partner requires:

A.

formal and informal communication.

B.

interconnected information systems.

C.

one partner regularly exercising power.

D.

standardized terms of agreement.

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Question # 31

Which of the following customer relationship management activities most appropriately is used for revenue generation?

A.

Generating customer leads

B.

Generating graphic sales models

C.

Measuring customer preferences

D.

Identifying customer margins

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Question # 32

A company that produces standardized products and sells them through retailers via a responsive transportation system has decided to expand its sales with an online store for customized products. Which of the following distribution strategies would be the most appropriate for the business-strategy change?

A.

Local distribution centers serving retailers and online sales

B.

Centralized cross-docking facilities serving retailers and online sales

C.

A centralized distribution center serving retailers and direct shipment from the factory serving online sales

D.

A centralized distribution center serving retailers with transshipment arrangements serving online sales

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Question # 33

Which of the following strategies is used primarily for demand planning?

A.

Build-to-order scheduling

B.

Push-pull replenishment

C.

Collaborative planning, forecasting, and replenishment

D.

Vendor-managed inventory

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Question # 34

The question below is based on the following flowchart:

Which of the following phrases most accurately describes the complete flow of demand information?

A.

From supplier to customer

B.

From customer to manufacturer

C.

From customer to supplier

D.

From supplier to manufacturer

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Question # 35

Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:

A.

wider variety.

B.

shorter lead time.

C.

higher profit margins.

D.

lower sales volumes.

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Question # 36

The factors to consider in the make-or-buy decision include costs, proprietary knowledge, and:

A.

design history.

B.

available capacity.

C.

inventory balance.

D.

warehouse location.

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Question # 37

Which of the following levels in a supply chain network represents the most upstream external activity?

A.

Supplier to contractor

B.

Manufacturing to supplier

C.

Customer to distribution

D.

Customer to contractor

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Question # 38

Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

A.

Inventory turnover ratio can be reduced.

B.

Aggregate demand is more accurate than disaggregate demand.

C.

The planning time fence can be adjusted as needed.

D.

The supplier shares some risk for holding inventory.

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Question # 39

A manufacturer can simplify the forecasting process by pooling demand forecasts for a product group and then:

A.

averaging total demand and spreading it evenly across all items.

B.

disaggregating demand to the item level based on marketing input.

C.

disaggregating demand to the item level based on historical proportions.

D.

allocating demand to each production site.

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Question # 40

A company’s decision to charge different prices for the same service sold in different market segments is most likely based on which of the following metrics?

A.

Internal rate of return (IRR)

B.

Lifetime customer value (LCV)

C.

Net present value (NPV)

D.

Return on investment (ROI)

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Question # 41

Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by:

A.

efficient material replenishment processes.

B.

clearly identified roles for the buyer and seller.

C.

a shared vision of added value.

D.

a sole-source agreement.

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Question # 42

When designing a supply chain for strategic advantage, a company first should consider:

A.

the impact on customers using Just-in-Time manufacturing.

B.

the financial stability of suppliers.

C.

matching the supply chain to product type.

D.

whether to use custom or standard parts.

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Question # 43

Medium-term demand management projections are used primarily to:

A.

complete strategic business planning of facilities.

B.

complete forecasts at the item level.

C.

aggregate demand for production planning.

D.

develop the master production schedule.

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Question # 44

Which of the following actions typically would be considered part of a reverse logistics strategy?

A.

Offering a discount on new purchases when used products are returned

B.

Reducing the amount of packaging material used in shipping

C.

Manufacturing products in batches consistent with full-truckload shipments

D.

Batching returns of defective components to the suppliers

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Question # 45

The value that logistics provides within the supply chain can best be summarized as:

A.

satisfying customer expectations about availability and delivery at an acceptable total cost.

B.

meeting promised location and on-time delivery goals with minimal use of expediting.

C.

establishing inventory and delivery goals with various customers that fulfill the firm's profit objectives.

D.

providing accurate in-transit and delivery information to customers and salespeople.

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Question # 46

A company has been delivering a global product that no longer appears profitable. Senior management’s best response is to:

A.

analyze product profitability by market segment.

B.

discontinue the product based on eroding profitability.

C.

provide additional incentives to the sales force.

D.

increase promotional activity across all markets.

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Question # 47

A large manufacturer wanting to be more competitive in the global market place decided to outsource its transportation and return processing to other companies on a contractual basis. The companies providing the services would be referred to as:

A.

fourth party logistics providers.

B.

third party logistics providers.

C.

retail services providers.

D.

distribution services providers.

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Question # 48

Supply chains delivering products or services are most able to respond quickly to changing market requirements when:

A.

products have been standardized.

B.

products have a modular design.

C.

production processes have been standardized.

D.

production processes have been simplified.

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Question # 49

The primary reason for the evolution of the supply chain is:

A.

fewer rejects due to poor quality.

B.

increased on-time delivery.

C.

increased cost savings.

D.

increased communication.

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Question # 50

Which of the following consequences is a result of shipping directly from the point of manufacture to the customer rather than through a distribution network?

A.

Delivery lead times are consistent.

B.

Risk pooling benefits are negated.

C.

Distribution overhead is increased.

D.

Order-fill rate is decreased.

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Question # 51

A return material authorization (RMA) policy is used in reverse logistics to:

A.

physically transport returned items by using an efficient transportation mode.

B.

minimize the number of returned items by involving product design and demand forecasting.

C.

reduce the cost of returned items by refusing to accept items that should not be returned.

D.

reclaim substantial value from returned items by recycling.

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Question # 52

Reverse supply chain activity typically peaks nearest the beginning of which of the following stages of the product life cycle?

A.

Introduction

B.

Growth

C.

Maturity

D.

Decline

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Question # 53

Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?

A.

Sales and marketing refers to SCOR to improve demand generation.

B.

Production and engineering uses SCOR best practices to design a new "make" process flow.

C.

Distribution and logistics selects suppliers from the SCOR reference list.

D.

Marketing and development incorporates SCOR Level I metrics for new product design.

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Question # 54

Incorporating supplier input into product and process design helps to:

A.

maintain quality.

B.

stabilize product costs.

C.

reduce time to market.

D.

save costs to the buyer.

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Question # 55

The use of a seasonal index as a forecasting technique measures the ratio of the:

A.

average seasonal demand to the average demand for all periods.

B.

average demand for all periods to the average seasonal demand.

C.

average seasonal demand to the standard deviation of the demand for all periods.

D.

standard deviation of the seasonal demand to the standard deviation of demand for all periods.

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Question # 56

The purpose of continuous improvement in the supply chain is to:

A.

eliminate the root causes of problems.

B.

improve interorganizational communication.

C.

develop better written procedures.

D.

reduce product costs.

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Question # 57

The most likely benefit of implementing a collaborative transportation management system is:

A.

lower distribution center operating costs.

B.

fewer transportation planners.

C.

less variability in picking and packing time.

D.

less variability in transportation costs.

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Question # 58

A manufacturer of plastic components that are sold either directly or through distributors wants to identify the requirements of the end customers for each market segment. Which of the following approaches would be most appropriate?

A.

Analyzing the buying history for each of the market segments

B.

Asking the manufacturer's direct customers

C.

Conducting a market research project

D.

Sending samples of potential future products to the final customers

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Question # 59

A firm supplies products and services to a wide variety of industries with varying requirements for responsiveness and reliability. Many customers across these industries are not satisfied with the firm’s ability to meet the lead time and on time delivery requirements. Which of the following tools is most appropriate for the firm to use to improve customer service?

A.

Customer service ratio metrics

B.

Market segmentation

C.

Customer relationship management (CRM)

D.

Supply Chain Operations Reference (SCOR®)

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Question # 60

Which of the following situations is an example of inventory being held as a way to balance supply and demand?

A.

A manufacturer holds inventory of key components to maintain a level production schedule.

B.

A manufacturer of seasonal products builds finished-goods inventory before the peak selling period.

C.

A distributor maintains safety stock of slow-moving items at a central distribution center.

D.

A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.

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Question # 61

The focus of collaborative supply chain management differs from a transactional approach by its emphasis on the:

A.

transportation of goods to the next link in the chain.

B.

flow of product information up to the next level of the chain.

C.

flow of demand information and cash up the chain.

D.

flow of supply into an organization.

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Question # 62

Which of the following situations is an example of postponement?

A.

Shipments are broken down into small groups for reshipment.

B.

Shipments are consolidated immediately for reshipment.

C.

Production begins after a customer order is received.

D.

Partially assembled goods are assembled at a later stage.

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Question # 63

Demand management involves which of the following undertakings?

A.

Adjusting capacity to support expected demand

B.

Engaging in activities associated with customer relationship management

C.

Creating higher customer demand by improving performance in areas such as lead time and service levels

D.

Understanding events and managing activities that could influence future demand

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Question # 64

Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

A.

Production equipment productivity

B.

Net asset turnover

C.

Value-added productivity per employee

D.

Upside flexibility

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Question # 65

Potential customers of a company's new product have tight tolerance requirements. The company plans to purchase a critical component. To meet customer requirements, the company should first:

A.

implement statistical process control for the component.

B.

bring manufacturing of the critical component in-house.

C.

develop an alternate source of supply.

D.

certify the supplier of the component.

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Question # 66

Distribution from which of the following types of sites enables goods to enter a country, undergo further modification, and then be exported without paying customs duties?

A.

Public warehouse

B.

Value-added territory

C.

Free trade zone

D.

Customs clearing house

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Question # 67

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

A.

Distribution requirements planning

B.

Sales and operations planning

C.

Rough-cut capacity planning

D.

Production activity control

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Question # 68

Which of the following measures effectively evaluates overall resources in a distribution warehouse?

A.

Throughput

B.

Cube utilization

C.

Filled pallet positions

D.

Labor efficiency

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Question # 69

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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Question # 70

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.

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Question # 71

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.

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Question # 72

A company that has consistently achieved a high level of on-time delivery performance has decided to reduce its inventory level significantly. Which of the following outcomes is the most likely effect of that decision on the company's on time delivery performance?

A.

There will be no effect.

B.

It will decline and then stabilize at a lower level.

C.

It will improve and then stabilize at a higher level.

D.

It will decline until sales erode.

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Question # 73

Customizing can be an effective warehousing strategy because it allows a company to:

A.

allocate available storage space to optimize handling costs.

B.

address trade-offs between space and material handling needs.

C.

effectively design its inbound and outbound dock areas.

D.

add value to the product through modification, labeling, and packaging.

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Question # 74

A company's supply chain depends heavily on sourcing from international suppliers. Conditions increasingly threaten supply continuity. Which of the following actions is most appropriate?

A.

Source from domestic suppliers.

B.

Conduct a risk assessment.

C.

Carry additional safety stock.

D.

Spread logistics across multiple carriers.

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Question # 75

A product design that can be produced to requirements even when conditions in the production process are unfavorable typically is known as what type of design?

A.

Universal

B.

Computer-aided

C.

Modular

D.

Robust

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Question # 76

What are the steps in the supplier relationship process?

A.

Measure, fulfill, document, model

B.

Source, document, manage

C.

Measure, procure, fulfill, model

D.

Source, procure, fulfill, manage

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Question # 77

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

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Question # 78

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

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Question # 79

Which of the following actions is most likely to increase total supply chain risk?

A.

Standardizing components used in a product family

B.

Expanding operations to multiple locations

C.

Consolidating manufacturing locations

D.

Reducing the supplier base for commodity-type components

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Question # 80

When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements?

A.

Loyalty

B.

Scoring

C.

Segmentation

D.

Prospecting

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Question # 81

Benchmarking a firm's performance against industry competitors is most valuable because it can reveal:

A.

a competitor's manufacturing processes.

B.

a firm's leadership ranking relative to industry peers.

C.

which processes require improvement.

D.

that no further improvement is possible.

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Question # 82

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

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Question # 83

A company that is focused on customer relationship management is most likely to take which of the following actions for customers who have been profitable over time?

A.

Reduce the cost of serving them.

B.

Target them for higher margin services.

C.

Target them for greater attention.

D.

Charge them for administrative services used.

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Question # 84

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

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Question # 85

Implementation of supply chain applications based on which of the following technologies is most likely to have the lowest fixed costs?

A.

Best of breed packages

B.

One integrated package

C.

Service-oriented architecture

D.

Software-as-a-service

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Question # 86

The strategy to implement supplier relationship management has been developed. The most appropriate next step is to:

A.

develop criteria for prospective partners.

B.

develop policies for alliances.

C.

select initial partners.

D.

conduct a pilot implementation.

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Question # 87

An effective procurement strategy for commodity products should focus on:

A.

driving down cost and reducing risk.

B.

spreading purchases equally across suppliers.

C.

selecting primary and alternate sources.

D.

selecting suppliers with value-added products.

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Question # 88

A company's product cannot be sold beyond 12 months from the date of manufacture. The product contains hazardous material and must be returned to the factory to be neutralized. This situation is an example of product:

A.

reuse.

B.

remanufacturing.

C.

recovery.

D.

refurbishing.

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Question # 89

Bar codes and radio frequency identification systems are key technologies in supply chain systems because they perform which of the following functions?

A.

Tracking truck locations on cross-country deliveries

B.

Facilitating timely and accurate data acquisition

C.

Providing paperless invoicing of goods

D.

Producing schedule broadcasts for suppliers

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Question # 90

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.

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Question # 91

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.

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Question # 92

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

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Question # 93

Which of the following factors typically is most important in successfully implementing sales and operations planning (S&OP)?

A.

Involvement of specialists from all functional groups within an organization

B.

Creation of a dedicated S&OP organizational unit

C.

Involvement and accountability at senior management level

D.

Focus on 3 months to 18 months in the future

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Question # 94

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.

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Question # 95

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.

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Question # 96

Managing supply chain risks includes which of the following activities?

A.

Developing alternatives to key suppliers

B.

Setting aside funds for disruption-recovery efforts

C.

Charging each supply chain partner a portion of risk cost

D.

Creating extra inventory to cover disruptions in the supply chain

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Question # 97

Which of the following organizational design choices is an example of vertical integration?

A.

Contracting with a third-party logistics provider

B.

Producing components used internally

C.

Externally staffing a customer service center

D.

Awarding a one-time trade show contract

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Question # 98

A company plans to maximize profitability by charging more for its products at retail locations than on its website. Which of the following segmentation strategies would best support this plan?

A.

Group

B.

Channel

C.

Regional

D.

Location

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Question # 99

After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?

A.

Implement a higher-speed data communications network.

B.

Change procedures so data is communicated more frequently.

C.

Identify the root causes for the delays.

D.

Map and analyze the value stream.

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Question # 100

A manufacturer uses standard costing, and a potential supplier uses activity-based costing. This difference most likely will have implications for which of the following types of future decisions?

A.

Price concessions

B.

Make-or-buy

C.

Distribution warehouse locations

D.

Freight terms

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Question # 101

Which of the following actions typically would be the first step in implementing the philosophy of customer relationship management?

A.

Creating a customer-centric organization

B.

Developing a map of the customer segments

C.

Documenting the objectives for implementation

D.

Selecting an information technology solution

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Question # 102

A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of its trucks and now purchases transportation services from fleet operators. This is an example of which of the following strategies?

A.

Selling and leasing back equipment.

B.

Renting equipment on consignment.

C.

Using a third-party logistics provider.

D.

Using an owner-operator fleet.

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Question # 103

In addition to sales history, current customer orders, and forecasted demand, which of the following data sources should be used as part of a demand management process?

A.

Inventory levels

B.

Contractual obligations

C.

Customer profitability

D.

Scheduled marketing activities

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Question # 104

A remanufacturer of equipment is most likely to have what type of supply chain?

A.

Modular logistics

B.

Reverse logistics

C.

Mixed model

D.

Lateral

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Question # 105

The main benefit of a mass customization product design strategy is to:

A.

sell high quantities of product to specific customer segments.

B.

achieve economies of scale in purchasing components.

C.

offer more product variety while keeping inventories low.

D.

avoid assembly of finished products.

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Question # 106

Which of the following measures of a supply chain performance is most desirable from a stockholder perspective?

A.

Diversity of sales channels

B.

Lean manufacturing performance

C.

Time to market of new products

D.

Velocity and return on assets (ROA)

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Question # 107

The most effective means to measure customer loyalty would use which of the following approaches?

A.

Determine the ability to satisfy a customer’s delivery date

B.

Conduct customer survey for direct feedback

C.

Analyzing customer repurchase patterns

D.

Monitor rate of call center activity

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Question # 108

A firm experiences a supply chain interruption from a second-tier supplier. Which of the following actions is the firm likely to take to minimize future interruptions?

A.

Require the supplier to submit weekly cycle count reports.

B.

Require the supplier to implement a sales and operations planning process.

C.

Map the supplier's supply chain to identify risks and opportunities.

D.

Conduct an ISO 14001 audit of the supplier.

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Question # 109

Total line-haul costs vary directly with:

A.

weight shipped.

B.

distance shipped.

C.

shipping time.

D.

the number of times a shipment is handled.

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Question # 110

A large retailer has negotiated buyback contracts with several suppliers. The suppliers typically will need which of the following systems to effectively implement the contracts?

A.

Point-of-sale tracking

B.

Well-developed reverse logistics

C.

Monitoring the retailer's revenue

D.

Sales incentives to reward the retailer

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Question # 111

A company desires to use customer relationship management (CRM) to enable supply chain collaboration. Implementation of CRM will enable the organization to most effectively:

A.

sell their products and services to customers by using economic incentives.

B.

provide supply chain visibility to customers and enable them to view the status of orders.

C.

provide means of identifying, capturing, and retaining customers by aligning all resources and capabilities.

D.

enable web-based order entry and electronic data interface.

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Question # 112

Which of the following factors typically is most important to a company that uses the chase production strategy when evaluating potential suppliers for a component?

A.

Supplier’s agility

B.

Supplier’s certification status

C.

Quoted delivery time

D.

Quoted total price

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Question # 113

An organization is redesigning its processes to maximize the use of parallel operations. An expected outcome of this effort typically would include:

A.

increased processing costs.

B.

increased buffer capacity.

C.

reduced requirement for support materials.

D.

reduced lead times.

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Question # 114

A distribution requirements planning (DRP) system it implemented to primary to monitor or manage:

A.

supplier capacity

B.

customer demand

C.

inventory replenishment

D.

demand variation

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Question # 115

Which of the following benefits would a company realize by implementing software-as-a-service (SaaS)?

A.

Software tailored to the needs of the company

B.

Low costs to install and upgrade

C.

Sharing of information among supply chain partners

D.

Secure data and transactions

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Question # 116

The ISO 31000 standard can be best used for which of the following actions?

A.

Certifying in risk management

B.

Seeking generic guidelines on risk management

C.

Comparing risk management practices

D.

Creating industry specific risk management practices

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Question # 117

When a company works on controlling stockout frequency, the company is addressing which of the following attributes of customer service?

A.

Availability

B.

Delivery time

C.

Service reliability

D.

Service recovery

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Question # 118

Which of the following factors is the key determinant of safety stock for finished goods?

A.

Forecast variance

B.

Mean absolute deviation (MAD)

C.

Standard deviation

D.

Desired service level

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Question # 119

A company is seeking to attract recent college graduates as customers. Which of the following market characteristics should the company use in order to segment its customers?

A.

Geographic

B.

Demographic

C.

Price sensitivity

D.

Cultural

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Question # 120

An organization is striving to improve the transfer of multiple levels of data about products and services to trading partners in the supply chain network. Which of the following solutions is most appropriate?

A.

Business analytics

B.

Electronic commerce

C.

Enterprise resources planning (ERP)

D.

Advanced planning and scheduling (APS)

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Question # 121

Which of the following factors is a measure of supply chain reliability?

A.

Order-fulfillment cycle time

B.

Perfect order fulfillment rate

C.

Upside supply chain flexibility

D.

Downside supply chain adaptability

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Question # 122

Which of the following activities is included in the source process of the Supply Chain Operations Reference (SCOR) model?

A.

Managing warehouses

B.

Managing inventory

C.

Scheduling production

D.

Aligning functional plans

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Question # 123

A company that produces a set of standard products, which are sold through multiple channels, would segment its sales by:

A.

brand.

B.

product.

C.

customer.

D.

region.

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Question # 124

A grocery store found that ground beef sales increased when burns were a featured sales item. This customer relationship management (CRM) technique is called:

A.

data mining

B.

data trading

C.

point-of-purchase (POP) promotion

D.

upselling.

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Question # 125

Quality function deployment (QFD) is a methodology designed to ensure that:

A.

quality is maintained at all levels of the organization.

B.

suppliers providing high-quality parts are certified.

C.

defective products do not reach customers.

D.

customer requirements are understood and met.

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Question # 126

Which of the following factors is a key motivation for supply chain collaboration?

A.

Technology

B.

Traditional accounting methods

C.

Regular negotiations

D.

A common interest

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Question # 127

An item must be added to inventory to support new business. Which of the following inputs should be considered to determine minimum inventory level?

A.

Consumption rate

B.

Qualified supplier

C.

ABC classification

D.

Number of sales transactions

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Question # 128

Which of the following tools is most appropriate for understanding why products fail?

A.

Run chart

B.

Control chart

C.

Pareto analysis

D.

Root cause analysis

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Question # 129

Which of the following factors is crucial to advancing cooperation between customers and suppliers?

A.

A legal agreement

B.

Mutual trust

C.

Mutual need

D.

Financial dependency

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Question # 130

Which of the following strategies is most appropriate for managing unknown risks in a global supply chain?

A.

Vertical integration

B.

Technology integration with suppliers

C.

Investing in redundancy

D.

Strengthening supplier relationships

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Question # 131

A high level of which of the following attributes is considered to be undesirable in a supply chain?

A.

Velocity

B.

Variability

C.

Visibility

D.

Variety

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Question # 132

A global manufacturing is implementing a remanufacturing program to improve its triple bottom line (TBL). Which dimension of TBL will the new program positively affect?

A.

Ergonomic

B.

Social

C.

Environmental

D.

Employee

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Question # 133

A manufacturer has direct relationships with its tier 1 suppliers. Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?

A.

Provides smaller lot sizes

B.

Provides components with short lead times

C.

Provides Just in Time deliveries

D.

Provides information about impending shifts in the economy

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Question # 134

Which of the following descriptions represents cash-to-cash conversion?

A.

The conversion time from material acquisition to sales revenue

B.

The conversion time from sales order lo receipt of payment

C.

The currency conversion rate when buying and selling goods

D.

The measure of an organization's effective use of inventory

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Question # 135

A quick-response program (QRP) will add value to the supply chain by:

A.

accelerating new product introduction

B.

lowering the total cost of ownership (TCO)

C.

linking sales with production

D.

improving overall cash velocity

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Question # 136

To achieve the objective of increased profits, a company that implements supply chain tactics must effectively address the conflicts between inventory investment and:

A.

plant capacity.

B.

sales volume.

C.

lead times.

D.

order-fill rates.

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Question # 137

Customer demand is 120 units per week. The company works on a 9-hour shift per day, 5-day per week basis. Each shift has a ½-hour lunch break and two 15-minute coffee breaks. The cycle time is 12 minutes. To meet demand, production must occur at the rate of one unit every:

A.

12 minutes.

B.

20 minutes.

C.

22.5 minutes.

D.

28 minutes.

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Question # 138

Which of the following performance measurements identifies supply chain flexibility?

A.

Total days of inventory in supply goods

B.

Customer order fill rate greater than 90 percent

C.

Percent of unplanned orders that can be shipped within the same week

D.

Reduction in order fulfillment lead time in a given period

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Question # 139

The primary use of the ISO 14001 standard is to allow firms to:

A.

improve the occupational health and safety of employees within the firm's buildings and factories.

B.

demonstrate compliance to allow for faster and easier movement of goods across country borders.

C.

reduce costs by becoming eligible for tax advantages offered for meeting climate goals.

D.

provide guidance in monitoring the impact of activities throughout the life cycle.

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Question # 140

A company plans to implement a new software application for inventory optimization. Which of the following actions will most likely reduce the implementation time?

A.

Purchase the new software and host it on secure cloud servers

B.

Develop the new software in-house and purchase additional hardware

C.

Purchase the new software and customize it

D.

Integrate the new software with supply chain partners

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Question # 141

When maintaining a material requirements plan, scheduled receipts are best represented by which of the following terms?

A.

Planned orders

B.

On-hand inventory

C.

Replenishment shipments

D.

Maintenance, repair, and operating (MRO) supplies

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Question # 142

Using financial tools to minimize the impact of currency fluctuations is an example of what type of risk management strategy?

A.

Mitigation

B.

Recovery

C.

Prevention

D.

Diversification

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Question # 143

A shipping company investing to reduce damages due to weather conditions is an example of:

A.

risk tolerance.

B.

risk exposure.

C.

risk mitigation.

D.

risk resilience.

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Question # 144

A primary objective of a lean enterprise is to:

A.

analyze and focus the value stream along all functions to maximize value for the ultimate customer.

B.

employ people who have enhanced abilities to learn and adapt to the corporate culture.

C.

continuously improve processes and procedures to maintain a level production schedule.

D.

create value for its suppliers by incorporating lean manufacturing principles into a supplier certification process.

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Question # 145

Which of the following risks does currency fluctuation pose if a company is operating globally?

A.

It creates a requirement for additional inventory.

B.

It impacts supplier performance due to frequent replenishment.

C.

It requires compensation to local governments.

D.

It changes the relative profit expected from the sales.

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Question # 146

The European Union (EU) is an example of:

A.

globalization.

B.

country-to-country commerce.

C.

a nongovernmental organization (NGO).

D.

a trading bloc.

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Question # 147

An insurance broker is interested in increasing price competition among its carriers. Which of the following strategies would be an efficient way to enable the price reductions?

A.

Consolidate the market.

B.

Utilize business-to-business (B2B) e-marketplaces.

C.

Automate manual processes.

D.

Establish long-term partnerships.

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Question # 148

The first information necessary in order to effectively improve product design should come from which of the following supply chain members?

A.

Supplier

B.

Distributor

C.

Manufacturer

D.

Customer

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Question # 149

Which of the following considerations is an important supply chain design decision?

A.

Product design

B.

Selecting supporting information systems

C.

Identifying labor force requirements

D.

Identifying training programs

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Question # 150

Which of the following benefits of supplier relationship management typically results from collaboration with a few critical suppliers?

A.

Automation of supplier sales activities

B.

Elimination of formal contracts

C.

Reduction in customer and supplier inventories

D.

Standardization of communications

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Question # 151

Companies are more likely to consider the consequences of their product design decisions when they view the reverse supply chain as an extension of the:

A.

forward supply chain.

B.

marketing process.

C.

manufacturing process.

D.

sales and operations planning process.

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Question # 152

A main benefit of using customer relationship management (CRM) is:

A.

maximization of on-time delivery.

B.

minimization of product returns.

C.

identification of customers with high lifetime value.

D.

finding new markets for existing products and services.

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Question # 153

Which of the following factors typically is the most significant impediment to implementing collaborative commerce?

A.

Technology barriers

B.

Security

C.

Corporate culture

D.

Return on investment (ROI)

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Question # 154

A firm wants to lose customers that don't value the unique products and services the firm offers and to attract and retain customers that want what the firm offers. Engaging in this activity should allow the firm to:

A.

create a more loyal customer base.

B.

improve customer satisfaction rates.

C.

increase market share.

D.

target higher-profit customers.

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