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Which of the following factors is the most important driver of supply chain change?
Health and safety concerns
Competitor actions
Government regulations
Customer perceptions of value
A company is considering relocating production to a lower-wage country. Volatility in which of the following areas most likely would impact profitability without modifying product landed costs?
Labor costs
Currency exchange rates
Commodity prices
Product quality
Managing risk should be a strategic part of supply chain management because:
the occurrence of unanticipated risks essentially can be eliminated.
not all members of the supply chain consider and respond to the same types of risks.
substantial financial penalties can be assessed if legal requirements are not met.
it helps to reduce the occurrence and consequences of unplanned negative events.
The primary contribution from an enterprise resources planning system in building supply chain capability is:
real-time manufacturing planning
improved decision making.
ease of implementation
timely order tracking
Which of the following factors is most important to consider when deciding on offshore outsourcing of manufacturing to a supplier?
Size of the supplier organization
Total cost of ownership
Supplier performance history
Supplier certification
Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?
Use a more rapid transportation mode.
Increase safety stock.
Extend product warranty
Employ lean principles.
Which of the following factors should be considered when establishing an inventory policy?
Customer demand
Selling price history
Historical service levels
Number of customers
On-time delivery performance in the supply chain can best be improved by aligning required capacity with what type of capacity?
Demonstrated
Rated
Budgeted
Theoretical
Which of the following processes ensures that functional plans are consistent?
Strategic planning
Sales and operations planning
Project planning
Master scheduling
When evaluating several possible supply chain options, a firm considering the minimal total cost should:
ensure that the inventory levels are as low as possible to minimize holding costs while
still providing adequate customer service.
account for the combined costs of holding buffer inventory and incurring inventory
shortages
consider the costs of acquiring, holding, and transporting inventory, and of servicing
customers.
place buffer inventory in the lowest cost locations that meet lead time and service level
requirements from customers.
The benefit most likely to result from a collaborative forecasting process is:
improvement in forecast accuracy.
improvement in forecast responsiveness.
reduction of the coefficient of variation.
reduction of forecasting effort.
Which of the following tools is most important in developing strategic sourcing?
Price break analysis
Network analysis
Blanket purchase order
Spend analysis
A company discovers that several high-volume customers have very erratic ordering patterns. Which of the following actions is most likely to reduce variability?
Checking the demand status multiple times daily
Establishing Internet-enabled collaborative relationships
Implementing electronic data interchange transactions
Increasing safety-stock levels for items these customers order
A distributor has a network consisting of a central distribution center serving five regional distribution centers that ships to multiple retailers. The distributor wants to reduce inventory while maintaining product availability. Which of the following actions is most likely to produce the desired outcome?
Centralizing inventory for slow-moving items
Reducing the quoted price for slow-moving item
Implementing cross-docking at the central distribution center
Implementing continuous replenishment at the regional centers
A company understates current revenue forecasts and delays the delivery of orders to meet the forecast. The most likely result of this practice is that shipments will peak:
at the beginning of reporting periods.
randomly throughout reporting periods
at both the beginning and end of reporting periods.
at the end of reporting periods.