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Question 1 Procurement activities include which of the following? A. Consumption management B. Market research C. Customer relationship management D. Order entry management []Question 2 Indirect products…

Question 1 Procurement activities include which of the following? A. Consumption management B. Market research C. Customer relationship management D. Order entry management []Question 2 Indirect products…

Daniel Kevins

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Question 1

Procurement activities include which of the following?

A. Consumption management
B. Market research
C. Customer relationship management
D. Order entry management

Question 2

Indirect products are best defined as which of the following?

A. Maintenance, repair, and operating supplies
B. Specialized goods
C. Customized goods
D. High volume production materials

Question 3

Which statement is true about “days of sales outstanding”?

A. It is used by sales to generate the forecast.
B. It is primarily used by sales to gauge sales performance.
C. It is a measurement used to analyze receivables.
D. It is used to manage inventories.

Question 4

Once management has a grasp of the company’s receivable situation, the next step is to do which of the following?

A. Place all orders on credit hold
B. Establish the same payment terms for all customers
C. Delegate receivable terms to sales
D. Set or change risk acceptance criteria

Question 5

Which of the following is part of the credit and collections function?

A. Sales of order entry
B. Setting credit policy
C. Comparing purchase order terms with company policy
D. Writing order entry processes

Question 6

Credit analysis is necessary to ensure which of the following?

A. Credit terms are extended to customers who can pay according to the terms of the sale
B. That sales is collecting payments on time
C. Terms are properly extended to only alliance partners
D. That special deals are structured

Question 7

Which statement is true regarding product design?

A. Costs can account for 50% or more of the product’s final cost.
B. The goal is to have many inexpensive simple designs.
C. Assembly design is generally discouraged.
D. Modularization is OK, but only for spare parts.

Question 8

Which of the following statements is true regarding product design?

A. Product development should be done solely by engineering.
B. There are rarely conflicting perspectives between design, procurement, and manufacturing.
C. Has little impact on availability of product.
D. Product design defines the shape of the supply chain.

Question 9

Which of the following steps was used by Toyota and Honda to build supplier relationships?

A. Develop suppliers’ technical capabilities
B. Dictate problem-solving techniques that should be used
C. Require that suppliers divulge all financial data
D. Focus on low cost in the supply chain

Question 10

The four Ms of manufacturing include which of the following?

A. Measurements
B. Master scheduling
C. Maximization
D. Money

Question 11

In regard to production scheduling, which of the following are NOT considered competing objectives?

A. High utilization rates
B. Low inventories
C. High productivity
D. High customer service

Question 12

Scheduling “types” include which of the following?

A. Dispatching
B. Capacity scheduling
C. Material requirements planning
D. Resource scheduling

Question 13

What tends to be true about companies in terms of facility decisions?

A. Companies live with consequences of poor decisions because of high costs to make changes.
B. They have little to do with supply chain management decisions.
C. They have nothing to do with flexibility.
D. They have nothing to do with decisions related to allocation of suppliers to a specific facility.

Question 14

How does facilities management impact the supply chain?

A. Facilities management dictates activities to be performed by suppliers
B. Capacity allocation influences supply chain performance and profitability
C. Has little to do with transportation costs
D. There is no relationship between the two

Question 15

The procurement process considers which of the following when looking for a supplier?

A. Whether to use single source or not
B. If an adversarial relationship is needed
C. The amount of money that can be squeezed out of the supplier
D. If the supplier can be trusted with shared data

Question 16

Multiple sourcing can be which of the following?

A. Adversarial
B. Alliance
C. Exclusive
D. Specialized

Question 17

Direct materials include which of the following?

A. Repair products
B. Consumable products
C. Materials used to produce finished goods sold to customers
D. Maintenance projects

Question 18

E-Procurement is best described by which of the following?

A. Electronic data interchange
B. Internet purchasing
C. Use of Internet forms
D. Hubs with multiple suppliers

Question 19

Effective consumption management requires procurement staff to track which of the following?

A. Who is buying what
B. What materials are for primary products
C. Contract purchasing
D. Vendor selection

Question 20

In terms of product design, how can cross-functional teams contribute?

A. By developing company strategy
B. By determining purchased order terms
C. By evaluating supplier’s manufacturing facilities
D. By establishing master production schedule quantities

Question 21

The process of accepting returned or defective goods back through the system is called which of the following?

A. Reverse logistics
B. Pick ticket processing
C. Milk run deliveries
D. End use returns

Question 22

Order management includes which of the following?

A. Management of warehouse orders
B. The process of passing information about product substitutions through the supply chain to customers
C. Managing recent orders from customers only
D. Generation and distribution of production orders

Question 23

Product stockouts at Procter & Gamble are blamed on which of the following?

A. Two-thirds of manufacturers shipped the wrong products.
B. Customers unexpectedly over-ordered product.
C. One-third of manufacturers shipped the wrong order.
D. Two-thirds of stock-outs were associated with problems in the warehouse.

Question 24

Which of the following is true regarding milk run deliveries?

A. They are a direct delivery system where goods are transported to one end user.
B. Deliveries are routed to bring products from a single originating location to multiple receiving locations.
C. Delivery of the milk is made to people who can’t get to the store.
D. Deliveries are routed to bring products to a single originating location based on an EOQ calculation.

Question 25

Which of the following would be considered a delivery “method”?

A. Cross-distribution delivery
B. Cross-docking delivery
C. Single product location delivery
D. Direct delivery

Question 26

Despite the use of new technology, estimates of out-of-stock incidents in retail range from __________ of the items in a store?

A. 4 to 6 percent
B. 6 to 8 percent
C. 8 to 10 percent
D. 12 to 14 percent

Question 27

The saving matrix is one of two techniques for routing milk run deliveries and is best used in which of the following situations?

A. When there are many different constraints that need to be satisfied by the delivery schedule
B. When more cost-effective solutions can be found
C. When delivery constraints are simple
D. When the EOQ quantities are the same size as the shipment quantities

Question 28

Capturing data electronically as close to its original source as possible falls under which of the order management rules?

A. Rule 3, make order status available
B. Rule 2, automate order routing
C. Rule 1, entering the order once and only once
D. Rule 4, use an integrated order management system

Question 29

Allowing customers to see order status without enlisting assistance from other people is part of which order management rule?

A. Rule 1, entering the order once and only once
B. Rule 2, automate order routing
C. Rule 3, make order status available
D. Rule 4, use an integrated order management system

Question 30

In which scenario are direct deliveries efficient?

A. When there are many different constraints that need to be satisfied by the delivery schedule
B. If the receiving location generates EOQs that are the same size as the shipment quantities
C. When there are many different customers scheduled for deliveries
D. When there is less than a truckload

Question 31

Milk run deliveries allow orders for different products to be combined under which of the following circumstances?

A. When there is less than a truckload
B. Only when the EOQ is used to calculate quantities
C. Until quantities equal a truckload
D. Only when the shipment is made to long-distance customers

Question 32

Which statement is true regarding the generalized assignment technique?

A. This technique has a harder time generating good delivery schedules as more constraints are included.
B. This technique is best used when delivery constraints are complex.
C. This technique is best when quantities are calculated using the EOQ.
D. This technique should never be used when the savings matrix can be used.

Question 33

Which statement best describes “single product locations”?

A. They offer poor economies of scale when used.
B. Customer locations usually receive products in small lot sizes.
C. They are facilities where multiple products are available for shipment.
D. They are facilities, such as factories or warehouses, where a narrow range of related items are available for shipment.

Question 34

Which statement best describes cross-docking?

A. As a truck is unloaded, the numerous small lots are repacked into large lots and loaded immediately onto the original truck.
B. As a truck is unloaded, the bulk shipments are broken down into smaller lots and loaded immediately onto other trucks.
C. Cross-docking is a technique that was pioneered by K-Mart.
D. Cross-docking inhibits product flow in most cases.

Question 35

Which of the following statements is true regarding reasons to track returns?

A. Tracking returns is good if you have resources, but it is not a critical function.
B. Returns can point to bigger-picture issues such as safety concerns.
C. Returns help companies find more revenue because they can re-sell returned goods.
D. Return policies are getting stricter and soon there will not be a need for tracking returns.

Question 36

Benefits of cross-docking include which of the following?

A. Product flows slower
B. Product flows faster
C. More expensive to handle merchandise
D. Goods have to be put away then retrieved

Question 37

Which of the following is true regarding future trends for distribution centers (DC)?

A. Engineering functions may be added.
B. Manufacturing functions may be placed next door.
C. Others functions may be performed at the DC such as order processing.
D. DCs will not be needed because the function is expected to go away.

Question 38

Reverse logistics has what impact on the supply chain?

A. Maximizes the benefits of returns
B. Impacts the retail store, but not suppliers in the supply chain
C. Impacts each company’s costs of doing business
D. Impacts inventory, but not costs

Question 39

Issues related to reverse logistics include all EXCEPT which of the following?

A. Items often come back without the original packaging.
B. Items come in as singles instead of cases or lots.
C. Someone has to decide what to do with returned items.
D. Deliveries are scheduled.

Question 40

Which of the following is NOT a reason that companies outsource?

A. Third-party providers already have people, processes, and infrastructure in place.
B. Companies use this as a strategy for going out of business.
C. Speed and efficiency are important reasons.
D. Companies are small and don’t have people, processes, or infrastructure in place.

Question 41

Data sharing allows companies to work together to achieve supply chain efficiencies and increase customer satisfaction. What term best describes this coordination?

A. Boom-to-bust business cycle
B. Order balancing
C. Performance incentives
D. Supply chain integration

Question 42

Which statement is true about the bullwhip effect?

A. It reflects reality in the supply chain.
B. It is caused by certain types of technology.
C. It is also called CPFR.
D. It is a ripple effect.

Question 43

Which of the following is an activity of collaborative planning, forecasting, and replenishment (CPFR)?

A. CPFR negotiates a back-end agreement that defines responsibilities.
B. CPFR neglects exception reporting.
C. CRFR creates forecasts that are interdependent to each company.
D. CPFR identifies exceptions or differences between companies.

Question 44

Which statement is true regarding eXtensible Markup Language (XML)?

A. XML neglects the relationship between humans and computers.
B. XML is another term for electronic data interchange.
C. XML transmits data in flexible formats among computers.
D. XML is limited in the type of structured data that can be transmitted.

Question 45

__________ systems are highly analytical applications from which plant capacity, material availability, and customer demand are assessed.

A. Revenue management
B. Sales force automation
C. Transportation planning
D. Advanced planning and scheduling

Question 46

__________ lets a company experiment with different price mixes for its various products in light of the predicted demand.

A. Revenue management
B. Sales force automation
C. Demand planning
D. Advanced planning and scheduling

Question 47

Which statement is true regarding supply chain management systems?

A. They tend to focus on tactical level capabilities.
B. They focus on tactical level decision making.
C. They rely on ERP or legacy systems to provide data to support analysis and planning.
D. They function better when not integrated.

Question 48

A __________ system focuses on carrying out the production activities in a factory.

A. warehouse management
B. manufacturing execution
C. transportation scheduling
D. demand planning

Question 49

Which statement is true regarding data storage and retrieval?

A. Views can be created and made available to people who need them to do their jobs.
B. It provides for different retrieval needs of the people who do the programming.
C. It restricts views to customer use.
D. All data and storage retrieval systems have pre-designed views that are not flexible in terms of customization.

Question 50

Which statement is true regarding standard generalized markup language?

A. It is another term for enterprise resource planning.
B. It is a scaled down version of eXtensible Markup Language.
C. It is so huge that using it would bog down most applications.
D. It is another term for electronic data interchange.

Question 51

In terms of starting supply chain collaboration, the best place to start in an effort to promote collaboration is to:

A. immediately invest in an enterprise resource planning system.
B. make all suppliers alliance partners.
C. measure the bullwhip effect within a company.
D. make all suppliers provide weekly demand reports.

Question 52

Voluntary Interindustry Commerce Standards (VICS) Association does which of the following?

A. It created a technique known as collaborative planning, forecasting, and replenishment.
B. It documents best practices for collaborative planning, forecasting, and replenishment; it also creates guidelines.
C. It keeps up-to-date on the technique known as collaborative planning, scheduling, and replenishment.
D. It is a European association which has not yet done business in the United States.

Question 53

Which of the following is considered a major factor that causes the bullwhip effect?

A. Performance incentives
B. Product development
C. Line balancing
D. Product costing

Question 54

The collaborative planning, forecasting, and replenishment process is broken down into three activities, which include which of the following?

A. Collaborative costing, forecasting, and replenishment
B. Collaborative planning, forecasting, and warranty returns
C. Collaborative planning, scheduling, and replenishment
D. Collaborative planning, forecasting, and replenishment

Question 55

Which statement is true regarding product development?

A. It encompasses a company’s and a supply chain’s ability to stabilize the markets they serve.
B. It encompasses a company’s and a supply chain’s ability to continue to evolve.
C. It is strictly an engineering function.
D. It encompasses a company’s ability to develop products, but has little to do with the supply chain.

Question 56

Products that are made in advance in anticipation of sale are called:

A. just-in-time.
B. build-to-order.
C. build-to-stock.
D. build-to-demand.

Question 57

Which of the following statements best describes build-to-order products?

A. The way Dell assembles PCs and stores finished products in inventory until an order comes in.
B. Batch products are built and stored for mass distribution.
C. The way Dell assembles PCs to fit individual customer specifications.
D. Products are engineered (designed) when customer orders are received.

Question 58

In terms of collecting and using performance data, which of the following statements is true?

A. Level 1 looks at diagnostic measures.
B. Level 2 looks at operational data.
C. Level 3 looks at diagnostic measures.
D. Level 4 looks at tactical data.

Question 59

Which statement is true regarding dashboards?

A. They are exception reports for production.
B. They are a one-page display of key indicators.
C. They are good for historical data, but they neglect projected performance.
D. They are one of many reports that are generated, but they add no value.

Question 60

One cure for the bullwhip effect includes which of the following?

A. Better sharing of data
B. Restrict data sharing
C. Implement an EDI system
D. Dictate that suppliers implement an EDI system

Question 61

Which of the following describes one of the project management principles?

A. Tell teams what you want, but don’t tell them how to do it.
B. Give team members clear instructions how to get the job done.
C. Assign project objectives to individuals to complete.
D. Within a team, the operative word is “me” because each person must achieve his or her objectives.

Question 62

In terms of project management, work should be broken into tasks that are a week or less in duration and that produce something of value every __________ days.

A. 5 to 10
B. 20 to 40
C. 30 to 90
D. 90 to 120

Question 63

Types of systems in retail include which of the following?

A. Enterprise resource planning, bar code readers, and pin pad devices
B. Bar code recorders, kiosks, and uninterruptible power supplies
C. Material requirements planning, bar code recorders, and kiosks
D. Distribution planning systems, bar code recorders, and kiosks

Question 64

Which two major steps are taken to lay out a work plan for a conceptual system design?

A. Conduct process mapping and build the technical architecture
B. Utilize time boxing and conduct process mapping
C. Create a process flow diagram and conduct process mapping
D. Create a process flow diagram and build and test a prototype

Question 65

The steps taken to lay out a work plan for a conceptual system design should be done under which of the following conditions?

A. In different phases
B. In sequence
C. Simultaneously
D. In most cases, completed 6 to 9 months apart

Question 66

A system prototype is best described by which of the following?

A. A model or sample system that is believed to effectively support new processes
B. A floor plan or facade
C. A systems hardware, data base, and operating system
D. A second system test in a live environment

Question 67

Which of the following best describes one of the two kinds of prototypes?

A. Technical architecture, which will support the user interface
B. User interface, which is the behind-the-scenes activities
C. Technical architecture, which is what users see
D. Technical architecture, which should be “intuitively obvious”

Question 68

A process decomposition diagram is best described by which of the following?

A. Another word for beta
B. Called technical architecture
C. A model that will effectively support new processes
D. A fancy term for maps or flow charts

Question 69

Which statement is true regarding hardware and software to be used?

A. The technical architecture should not be challenged.
B. Components must be assembled in a test environment and tried out to see if they work as advertised.
C. Database packages need not be installed on the system platform on which it is intended to run.
D. Benchmarking data is not important.

Question 70

Which statement is true regarding technical components?

A. Until they have been used for two years, it is not wise to take performance statistics at face value.
B. They need not be installed on the system platform on which it is intended to run.
C. Their performance statistics gathered in the first year are completely reliable.
D. Poor performance statistics do not mean that the production version will be bad.

Question 71

Which statement below best describes one of the most basic concepts of a user interface?

A. A person should be able to figure out the coding procedures even without programming training.
B. A person should be able to figure out the basics of the new system within 20 minutes if they already know the activity.
C. A person should be able to figure out the technical architecture.
D. A person who uses the user interface would add no value in the development process.

Question 72

Project teams are assigned responsibility for specific objectives. The people on the teams are responsible for:

A. mapping out the objectives in the overall plan.
B. looking for opportunities to do tasks in sequence so there is no overlap.
C. mapping out the sequence of tasks they will perform to achieve objectives.
D. working with the project office personnel regarding overruns to the project.

Question 73

Project teams are assigned responsibility for specific objectives. The team leader is responsible for:

A. overseeing the creation of a detailed plan and budget.
B. laying out the sequence of tasks to achieve objectives.
C. looking for opportunities to do tasks in sequence so there is no overlap.
D. looking for opportunities to hire close friends and family.

Question 74

Project teams are assigned responsibility for specific objectives. The team leader is also responsible for:

A. looking for ways to run activities in parallel.
B. establishing goals and performance objectives for another team.
C. working with project office personnel to map the sequence of tasks.
D. redesigning the technical infrastructure as he or she sees fit.

Question 75

Project teams are assigned responsibility for specific objectives, which fall under the deliverable “detailed plan and budget.” This is part of what system development sequence?

A. Performance target
B. Define
C. User interface
D. Design

Question 76

Which statement is true regarding the budget bottom line at the end of the planning process?

A. It can have an error rate of +/- 10%.
B. It should be close, but no one expects it to be too close.
C. It should be the final, accurate cost of the project.
D. It can be a best guess or best effort.

Question 77

By the end of the deliverable “detailed plan and budget,” __________ of the total project costs have been spent.

A. 5 to 10%
B. 10 to 20%
C. 20 to 40%
D. Nearly 70%

Question 78

What statement is true regarding the Build phase?

A. It is the point at which changes should be made.
B. It is the “go for it” phase.
C. The costs of false starts are insignificant.
D. Having a realistic time frame is not significant until the project gets closer to the end.

Question 79

What statement is true regarding planning and budgeting at the Build phase?

A. There is a great deal of flexibility in regard to schedule changes and cost overruns.
B. There is a tendency for people to hide bad news or cost overruns.
C. The administrative office is not too involved at this point.
D. The plan and budget generally do not become outdated in this phase of the project.

Question 80

What statement is true regarding system test and rollout?

A. Step 1 is to do a system test with all system components in place.
B. Step 1 is to go to beta testing.
C. Step 1 is to go to pilot testing.
D. Step 1 is to develop field documentation.

Question 81

According to your text, what has happened in the world since the invention of online communication?

A. The invention of inventory management and truck identification technology
B. The combining of types of technology with people skills
C. The evolution of the always-off connection
D. Less efficiency in terms of speed

Question 82

Supply chain management is:

A. a domination game.
B. an effort to form monopolies.
C. a process of coordination between companies.
D. a process to exploit trading partners.

Question 83

Power on demand refers to which of the following?

A. The level of visibility in demand
B. That multidirectional communication networks are always on
C. The functionality of software
D. The inability to maintain integration

Question 84

Which of the following best describes global sourcing?

A. The ability of a company to get what it needs from anywhere on the globe
B. The exploitation of resources in developing countries
C. A process of in-sourcing
D. A governmental initiative to help develop third-world countries

Question 85

Which of the following has been identified as technology that has allowed the development of global sourcing?

A. System development processes such as the “system development sequence”
B. The emergence of project management
C. The use of communication technology
D. The use of common currency

Question 86

In terms of global sourcing, which of the following is considered an external risk category?

A. Supply risk
B. Process risk
C. Mitigation risk
D. Control risk

Question 87

Internal risks can be categorized by which of the following?

A. Control risks
B. Environmental risks
C. Demand risks
D. Upstream flow of information

Question 88

Retail supply chain partners will most likely be impacted by which of the following types of technology in the future?

A. Radio frequency product codes
B. Global trade identification numbers
C. Voice-activated frequency identification
D. Frequency identification bar codes

Question 89

Universal product codes are commonly known as which of the following?

A. Radio frequency identification
B. Bar codes
C. Voice-activated technology
D. Global trade identification numbers

Question 90

Radio frequency identification is best described by which of the following?

A. Small computer chips, which are placed on products
B. Capable of transmitting only small volumes of information
C. Has a 13-digit electronic numbering system
D. Works off voice-activation technology

Question 91

Which statement is true regarding trade exchanges?

A. Participants are typically mom-and-pop shops.
B. They were designed to be a one-stop shop for small firms.
C. They are competitors that promote unfair trade.
D. They are competitors that join forces to buy goods together.

Question 92

Which statement best describes a self-adjusting feedback loop?

A. It is also known as “plan, do, check, act.”
B. It is a popular quality control philosophy.
C. It tracks performance and makes necessary adjustments.
D. It was developed by Edward Deming.

Question 93

How does a self-adjusting feedback loop impact the supply chain?

A. Companies begin to collect and share data as a by-product of their interactions.
B. It really does not affect the supply chain.
C. It is a huge administrative effort.
D. It detracts from product development efforts.

Question 94

In relationship to strategy, which of the following are prerequisite conditions to qualify as a “game”?

A. People must be careful not to have a stake in the game.
B. People must allow assignment of roles.
C. People must understand the rules of the game.
D. People must be OK with not being able to see results of their actions.

Question 95

Current supply chain management trends include which of the following?

A. Inventory management and product identification technology
B. The “always off” connection
C. Tactical thinking in supply chains
D. Combining various type of technology without people

Question 96

Which of the following has been identified as technology that has allowed the development of global sourcing?

A. The use of common currency
B. The emergence of project management
C. International freight companies have developed more sophisticated vessels
D. System development processes such as the “system development sequence”

Question 97

Which statement is true regarding total acquisition costs?

A. They should only consider labor costs.
B. They should exclude transportation costs as this is a cost of doing business.
C. They should exclude known risk factors in different countries.
D. When all costs (to include transportation) are considered, outsourcing may not be as attractive as originally thought.

Question 98

Emergent behavior is best described by which of the following?

A. It is a combination of disconnected ideas from around the globe.
B. It is governed by one-way feedback.
C. It is an old term for domination.
D. It begins to self-organize to form a more intelligent higher-level system.

Question 99

Which statement is true regarding Grocery Manufacturers of America?

A. It is just another grocery store chain.
B. It is a division of the Federal Food Administration.
C. It was developed to monitor quality standards.
D. It is one of the largest trade exchanges.

Question 100

Which statement best describes adaptive networks?

A. They use real-time information to control excessive market swings.
B. This theory is less powerful than what was created by the steam engine.
C. Retailers should be very concerned about their use.
D. They stifle collaboration.

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