Real World Supply Chain - 2013 CSCP Review (Volume 2)

VOLUME 2

From the team at

REAL WORLD SUPPLY CHAIN

CSCP R

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V

I

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Prepare for the CSCP exam and learn supply chain while you’re at it.

Over 550 Practice Questions Instructor Support Organized by Modules Answer Key Provided Updated for 2013

CSCP Review Volume 2

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Table of Contents Module 1: Fundamentals of Supply Chain Management

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Module 2: Supply Chain Strategy, Design and Compliance

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Module 3: Implementation and Operations

139

Answers

160

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About Real World Supply Chain We’re supply chain practitioners just like you. Over the years, we’ve heard lots of people newer to the field complain about not finding practical supply chain training. The available programs and materials tend to either be too theoretical or too basic. This gave us the motivation to use the Internet to share concrete, straightforward, and down-to-earth supply chain insights that people could actually use. As a team, we’ve managed supply chains representing revenues close to $20 billion. We bring approximately 17 years of combined supply chain experience. We hold several masters degrees. But most important, we like to share and learn. So we invite you to please come visit us at http://realworldsupplychain.com or send us an email at [email protected]. We look forward to meeting you.

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Stuff We Have to Discuss Please bear with us as we take care of some admin stuff. You probably already understand these, but we put together this page just to make sure. The Partners of Real World Supply Chain LLC are not affiliated in any way with its past or present employers. It is also not affiliated with any industry association. Exam questions provided here were independently developed by our team. They are not actual test questions. While it was our supreme goal to develop questions that represent the actual exam, there is no way a third party can do that perfectly. Each person’s experience, dedication and motivation will be different. So, as you can assume, we cannot guarantee any specific results even if you practice with the questions in this book. The purchaser or reader of this book assumes responsibility for use of the content. Thank you for understanding. We worked very hard to ensure that this report is free of errors. But we’re a small team. So some details can and do get missed. We do not assume any responsibility for errors, omissions and varied individual interpretations of the content. Though if you do spot an error, we’d appreciate it if you could let us know so we can make the required corrections. Here’s the great part. We are committed to helping you grow and succeed. And we don’t say those words lightly. We’d love to hear about your own challenges. If the book alone doesn’t do the trick, then maybe a collaborative approach will. We’ll certainly try our best. Please contact us for anything.

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Module 1: Fundamentals of Supply Chain Management

Section A: Supply Chain Management Concepts Question 1 A common process reference model used in supply chain management is: A. the SCOR model B. the conceptual model C. the operating plan D. the linear optimization model

Question 2 A functional focused firm is likely to have: A. an ERP implementation B. CRM & SRM C. siloed departments and legacy systems with minimal integration D. CPFR

Question 3 A patent protected product with a predictable demand and in the mature phase of its product life-cycle would utilize which of the following supply chain strategies? A. stable B. reactive C. proactive D. efficient reactive

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Question 4 A strong nucleus firm that is able to leverage its position in the market place with its suppliers to demand cost reductions is most likely utilizing which of the following supply chain strategies? A. low cost B. best cost C. targeted cost D. broad differentiation

Question 5 A Supply Chain professional is best described by: A. being a specialist in traditional functions B. being able to see the supply chain as one continuous entity made of linked processes C. being able to see the weak links in the supply chain D. being able to communicate well with all the elements of the supply chain

Question 6 According to APICS, a global network used to delivery products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash is: A. a value chain B. a supply chain C. the SCOR model D. a consortium

Question 7 All of the following are basic components of a supply chain EXCEPT: A. suppliers B. manufacturers C. customers D. governments

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Question 8 All of the following are benefits of lateral integration EXCEPT: A. perfect synchronization of the activities of the chain B. information can be shared simultaneously C. independent elements develop more expertise than in-house elements D. achieve economies of scale

Question 9 All of the following are drivers of change in today's supply chains EXCEPT: A. terrorism B. technology C. complexity reduction D. global trade

Question 10 All of the following are key components of the definition of supply chain management, EXCEPT: A. monitoring of supply chain activities with the objective of creating net value B. synchronizing of supply and demand C. building a competitive infrastructure D. selecting suppliers

Question 11 All of the following are part of the basic supply chain model EXCEPT: A. distributor B. producer C. customer D. supplier

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Question 12 All of the following are trends that increase the need for supply chain integration EXCEPT: A. longer product life cycles B. global expansion C. increased project complexity and scope D. greater market volatility

Question 13 All of the following are types of product or service differentiation EXCEPT: A. quality B. diversity C. customer features D. mass marketing

Question 14 All of the following have brought supply chain management to the forefront of business focus EXCEPT: A. rapid rate of change in web-based IT technologies B. longer product life cycles C. globalization D. financial pressures

Question 15 An arm's length relationship is best for: A. value added partners B. proprietary information C. single sourced partnerships D. commodity suppliers

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Question 16 As companies continue to face pressures on margins, organizations are looking for supply chain efficiencies in all of the following areas EXCEPT: A. inventory optimization B. payment terms with suppliers C. reductions of manufacturing lead-times D. extensions on customer payment terms

Question 17 Customer value creation is determined by improving all of the following EXCEPT: A. quality B. reliability C. availability D. affordability

Question 18 During Stage 2 of supply chain management evolution, the nucleus firm undertakes all of the following specific initiatives EXCEPT: A. integrate training techniques of different departments B. develop reliable research techniques C. find ways to reduce levels of inventory D. reduce transportation costs

Question 19 Given the trend towards globalization and outsourcing, effective supply chain management requires: A. higher levels of communication B. more efficient delivery routes C. better tracking technologies D. more formal coordination and collaboration

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Question 20 High-end jewelry is most likely marketing using which of the following techniques? A. mass marketing B. niche marketing C. telemarketing D. internet marketing

Question 21 In a typical supply chain, raw materials are transformed into products at which node of the supply chain? A. suppliers B. manufacturers C. distributors D. customers

Question 22 In the SCOR model, the DELIVER process involves all of the following EXCEPT: A. warehouse management B. customer invoicing C. selecting carriers D. releasing product

Question 23 In the SCOR model, the PLAN process involves all of the following EXCEPT: A. management of the transportation activities B. balance resources C. management of supply chain performance D. align supply chain unit plan with the financial plan

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Question 24 In the SCOR model, the SOURCE process involves all of the following EXCEPT: A. schedule deliveries B. schedule production activities C. assess supplier performance D. maintain data

Question 25 Lateral integration involves which of the following? A. decreasing departments to consolidate the work B. arranging for suppliers and customers to have stakes in one another C. maintaining control of activities D. outsourcing various activities

Question 26 Niche products for niche customer segments is best supply using which of the following supply chain strategies? A. focused differentiation B. best cost C. focused low cost D. broad differentiation

Question 27 Reverse supply chain is employed for the following reasons, EXCEPT: A. repairs B. disposal C. recycling D. quality control

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Question 28 Stage 1 technical communications are MOST likely to be: A. collaboration focused B. functional focused C. role-based D. cross-enterprise

Question 29 Studies currently estimate that supply chain costs often are approximately what percentage of top line revenues? A. 0.5 B. 0.1 C. 0.9 D. 0.05

Question 30 Supply chain management aims to create value for all of the following EXCEPT: A. customers of the firm B. suppliers of the firm C. employees of the firm D. industry organizations

Question 31 Supply chain management should aim to: A. lower cost of logistics B. reduce cost without reducing customer service C. increase the chain revenue D. remove defects and unnecessary motion

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Question 32 Supply chain visibility systems reduce customer service costs by: A. reducing stock outs B. reducing customer phone calls C. increasing inventory D. optimizing transportation

Question 33 Supply chains create value by: A. increasing profitability and return to shareholders B. providing multiple variants of products for customers C. making transaction processing more efficient D. developing more accurate forecasts

Question 34 Supply chains should be configured to: A. customers needs as well as trading partners capacities B. suppliers capacity as well as retailers reach C. manufacturers schedule as well as customers need D. retailers network as well as suppliers capacity

Question 35 The customers that supply chain professions normally refer to are: A. the retailers because they control product sales B. the large, national accounts because they account for the majority of revenues C. the end users because they are ultimate consumers of the product D. subject matter experts because their opinion is most relevant to our product

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Question 36 The first step in Stage 4 supply chain management evolution is: A. develop a fully integrated end to end supply chain B. collaboration on planning and design between supplier and producer C. extending one business process beyond the boundary of the individual D. the development of more efficient replenishment policies

Question 37 The largest benefit of increased information sharing across the enterprise is: A. cost reduction B. better bottom line results C. demand enhancement D. agility improvement

Question 38 The most accurate way to differentiate vertical from horizontal chain management is: A. vertical chain management dictates all the activities in a supply chain B. vertical chain management brings the supply chain inside one organization C. vertical chain management aims to garner the expertise in elements that have been judged to be least effective D. vertical chain management aims to outsource those elements not directly involved in the chain

Question 39 The reverse flow of products in a supply chain is necessary for: A. obsolete products B. products returned for repairs C. rejected products D. unclaimed products

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Question 40 The stages of supply chain management evolution are based on: A. the need for clear internal goals B. the introduction of new advances C. the reproduction of advances made over the past few decades D. the need to increase efficiency

Question 41 The supply chains contribution to society can include all of the following EXCEPT: A. job creation B. positive environmental impact C. increased barriers to entry D. increased access to products and / or services

Question 42 Tier 2 suppliers are: A. service suppliers that cater both to tier 1 and customers alike B. materials suppliers that cater both to tier 1 and customers alike C. materials and / or service suppliers that cater to tier 1 suppliers D. materials and / or service suppliers that handle less important products that the customer may need

Question 43 Trust and communication between internal departments increases as a firm moves to: A. an internally integrated firm B. an externally integrated firm C. a functionally focused firm D. a cross-enterprise collaboration firm

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Question 44 Vertical supply chain management refers to: A. bringing the supply chain inside one organization B. lining up the entities one of top of the other for analysis C. strategically outsourcing parts of the supply chain D. forming a virtual supply chain

Question 45 What is one attribute that supply chain management professionals must possess? A. a big picture view of the supply chain in order to see all processes as linked B. expertise in all aspects of operations management C. financial management skills D. ability to adjust to the various goals of each entity the supply chain

Question 46 What two processes do Tier 2 customers perform in the SCOR model? A. deliver and return B. source and deliver C. source and return D. plan and source

Question 47 When differentiating supply chain and value chain which statement is most accurate? A. The value chain and supply chain have no relation to each other and are mutually exclusive. B. The supply chain is but one part of the value chain. C. The term value chain is used when the supply chain handles expensive items. D. The value chain is a supply chain that increase a products value.

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Question 48 Which of the following best defines the term "supply chain"? A. a global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash B. a set of linked processes that take place in the extraction of materials for transformation into products for distribution to customers C. the process of ensuring raw materials are available for production D. a collaboration of various companies outside of the manufacturing corporation

Question 49 Which of the following describes the typical flow of cash in a supply chain? A. customer to producer to supplier B. producer to customer to supplier C. supplier to producer to customer D. customer to supplier to producer

Question 50 Which of the following flows both upstream and downstream across all nodes of the supply chain? A. information B. cash C. physical materials and services D. complaints

Question 51 Which of the following flows from upstream in the supply chain starting at raw material suppliers to customers located downstream in the supply chain? A. physical materials and services B. information C. returns D. cash Copyright © 2013 Real World Supply Chain LLC

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Question 52 Which of the following is not addressed by the SCOR model? A. availability B. reliability C. synergy D. quality

Question 53 Which of the following is not an example of a supplier? A. utility providers for electricity and water B. office supplies manufacturer C. accounting firms D. distributors

Question 54 Which of the following is not part of the Three Vs of supply chain management? A. viability B. velocity C. visibility D. variability

Question 55 Which of the following is the LEAST significant challenge in managing today's global supply chains? A. data availability B. global competition C. shorter product life cycles D. increase product variety

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Section B: Supply Chain Alignment with Business Strategy Question 1 A limited number of suppliers necessitates which of the following? A. a strategic alliance to corner the market B. a strategic alliance to insure that competitors are limited in acquiring the product C. a strategic alliance to guarantee the continued availability of the product D. a strategic alliance to protect any trademarks

Question 2 A residential appliance manufacturer teaming up with a professional kitchen equipment manufacturer is a good example of: A. strategic growth B. increased market access C. operations strengthening D. adding value to products

Question 3 A significant change in business direction may lead to: A. a complete recasting of the supply chain B. a partial recasting of the supply chain C. an increase in efficiency of the supply chain D. an increase in flexibility of the supply chain

Question 4 All of the following are areas of strategic planning focus EXCEPT: A. organizational design B. processes C. metrics D. inventory

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Question 5 All of the following are barriers to collaboration EXCEPT: A. misalignment of incentives B. technology C. end-to-end view of the supply chain D. equitable distribution of gains and challenges

Question 6 All of the following are forms of participant resistance to implementing CRM and SRM EXCEPT: A. customer resistance B. distributor resistance C. universal resistance D. supplier resistance

Question 7 All of the following are steps to creating integrated supply chain networks, EXCEPT: A. adopt the right attitudes B. adhere to collaborative principles C. ask the right questions D. hire consultant with expertise in building collaborative partnerships

Question 8 All of the following are typical requirements when implementing CRM and SRM EXCEPT: A. new job definitions B. new organization structure C. new corporate vision D. new technology platform

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Question 9 An area of Strategic Planning is Organizational Design. Which of the following is associated with the 3rd stage of Organizational Design? A. Cross functional teams are centrally coordinated. B. Tactical job related matters are coursed through formal communication. C. Cross functional teams are formed. D. Communication flows horizontally in departmental teams.

Question 10 Channel partners not directly related to the firm's production or customers are part of what collaboration dimension? A. vertical B. horizontal C. open D. closed

Question 11 CRM and SRM must be implemented at the: A. main partners in a supply chain B. external and internal customer level C. micro and macro level D. management level downwards

Question 12 Decisions at the following level typically have the largest impact on the firm's long term success: A. supply chain master planning B. operational planning C. strategic network design D. operational execution

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Question 13 Each of the following is an example of collaboration between partners in a supply chain, EXCEPT: A. vendor-managed inventory (VMI) B. continuous replenishment (CR) C. total quality management (TQM) D. quick response (QR)

Question 14 How many degrees of collaboration are between informal collaboration and supplier design? A. 0 B. 3 C. 2 D. 1

Question 15 Implementing CRM and SRM may require all of the following EXCEPT: A. new business vision and mission statement B. new business organization C. new job definitions D. new definitions for communication and collaboration

Question 16 In a forecast driven enterprise strategy, the initial forecasts are collected from: A. suppliers with access to raw material inventories B. retailers with access to customer demand data C. manufacturers with access to production schedules D. retailers with current inventory data

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Question 17 In integrating the supply chain, the 4th of the six logical steps is: A. develop an effective export-import strategy B. select transportation modes and carriers C. develop state-of-the-art information systems D. select warehouse locations

Question 18 Increasing information sharing within supply chain networks benefits their participants by increasing their ability to efficiently reach common goals and by: A. decreasing redundancies B. resolving possible conflicts of interest C. decreasing visibility in the chain D. reducing total costs

Question 19 Of the following, which is not a common response to an anticipated change in the market? A. pursue cost efficiencies B. watching trends in demand at the next step downstream C. design modular products D. develop multiple supply chains

Question 20 One characteristic of a customer-focused business is: A. shares insights about customers within supply chain B. develops strategies to offer stream of products to customers C. maintains elaborate and multi-step purchase processes D. provides stable products that tend to remain unchanged

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Question 21 Suppliers and customers are part of what collaboration dimension? A. horizontal B. lateral C. open D. vertical

Question 22 The definition of supply chain responsiveness is: A. the speed at which a supply chain changes products to satisfy the customer B. the speed at which a supply chain provides products to the customer C. the speed at which a supply chain adapts products to the customer demand D. the speed at which a supply chain recalls products from the customer

Question 23 The following are common reasons to change the supply chain strategy EXCEPT: A. market dynamics B. realignment of business direction C. prediction of market changes D. change in management

Question 24 The following are major considerations when setting up a demand-driven supply chain, EXCEPT: A. real demand data visibility along the chain B. supply chain partner trust and collaboration C. responsiveness and ability to effect change D. input to corporate forecasting exercise

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Question 25 The most important aspect of the supply chain strategy should: A. be forward looking B. be on the cutting edge of technology C. focus on customer needs D. integrate various entities that delivery the sub processes

Question 26 The simplest reason for collaboration over complex items is: A. the level of security necessary to safeguard the items B. the level of planning needed to get the item right in the necessary time frame C. the number of suppliers supplying the raw materials D. the number of customers demanding the product at the same time

Question 27 To ensure ongoing effective and efficient collaboration, organizations must create all of the following EXCEPT: A. a structure for decision making B. structured methods for managing information flow C. common models, techniques and expectations D. structured cross training sessions for its workers

Question 28 What is a significant risk when employing a demand-driven supply chain? A. higher stock out rates B. demands change C. manufacturing changes the forecast D. excess inventory

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Question 29 What is the main reason for increasing the number of warehouses? A. reducing sorting time B. easier administration C. increase customer service D. presence in various time zones

Question 30 Which is least important when discussing changing the supply chain strategy due to market conditions? A. availability B. customer service C. flexibility D. efficiency

Question 31 Which of the following describes a push supply chain? A. A supply chain that operates based on end user forecasts B. A supply chain that manufactures products based on historical production volume C. A supply chain wherein availability of raw materials determines products to push downstream D. A supply chain that focuses on pushing cycle time lower

Question 32 Which of the following is key to realizing the full benefits of an integrated supply chain network? A. total information sharing B. common business goals C. collaborative planning D. communication

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Question 33 Which of the following is not a criteria in determining the level of collaboration? A. precision B. quality C. cost D. availability

Question 34 Which of the following is not a typical roadblock to implementing CRM/ SRM? A. participant resistance B. technological limitations C. CRM and SRM cannot coexist D. supply chain solutions are overly complex

Question 35 Which of the following is part of the 2nd lowest degree of communication between partners? A. forecast sharing B. strategy development C. design collaboration D. mergers

Question 36 Which of the following is part of the specific principles organizations in a supply chain must adhere to in order to achieve a successful collaborative relationship? A. focus on the weakest link B. focus on the most profitable partners C. focus on the whole chain D. focus on the individual partners

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Question 37 Which of the following statements is most accurate when discussing a customer focused strategy? A. The supply chain customer deserves a balance of quality, price and availability. B. The supply chain customer deserves the most advanced product. C. The nucleus company considers whats good for the customer but not at the expense of the good of the company itself. D. The whole supply chain balances whats good for the customer with whats good for the supply chain.

Question 38 Which statement is most true? A. After developing supply chain strategies the next step is aligning the strategies with the financial plans. B. After developing supply chain strategies the next step is setting up the communication channels. C. After developing supply chain strategies the next step is developing the contingency plans. D. After developing supply chain strategies the next step is defining measurable objectives.

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Section C: Supply Chain Design and Improvement Considerations Question 1 A best-in-class benchmark is found: A. among competitors B. even in other industries C. with the industry leader D. in theory only

Question 2 A way to measure supply chain performance is to assess: A. the industry’s weakest performance B. a competitors previous performance C. the industry average performance D. a competitors future desired performance

Question 3 All of the following perspectives are measured by the Balanced Scorecard (BSC) EXCEPT: A. customer perspective B. business process perspective C. innovation and learning perspective D. technology perspective

Question 4 Each of the following is a general approach to benchmarking EXCEPT: A. competitive benchmarking B. best-in-class benchmarking C. process benchmarking D. financial benchmarking

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Question 5 Progressing towards a benchmark necessitates: A. a direct road map or blueprint to identify the fastest and most efficient steps B. a flexible road map or blueprint to identify steps needed, but that can change when necessary C. a series of short road maps or blueprint to identify the immediate steps that can affect the most change D. a long road map or blueprint that identifies the ultimate goal and the minor goals along the way

Question 6 TQM defines its goal as a search for perfection that is: A. never-ending B. attained when the industry best is surpassed C. completed when the company becomes the industry benchmark D. reach when the organization has found and solved all the problems

Question 7 What is one of the most important requirements for a metric to be a KPI? A. It should be applicable to the processes across the entire supply chain. B. It should be written in financial terms. C. It needs to include inventory levels in the distribution centers. D. It should only measure performance within the last 12 months.

Question 8 When planning improvement initiatives, one has to: A. simultaneously improve all the processes in the chain to prevent weak links B. select the weakest process to focus attention on then list the next weakest and so on. C. select the processes that are central to the supply chain strategy D. benchmark competitor processes Copyright © 2013 Real World Supply Chain LLC

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Question 9 Which is a specific key element of a balanced scorecard? A. Communicate the strategic purpose of the balanced scorecard to key partners B. Develop goals and measures consistent with financial plans C. Develop goals and measures consistent with the corporate and supply chain strategies D. Communicate the strategic purpose of the balanced scorecard with key

Question 10 Which is not a KPI of product introductions? A. production schedules B. lead time C. warranties D. returns

Question 11 Why is it not effective to simply improve one process in the supply chain? A. because the supply chain is a system with a lot of interrelated processes B. improving only one processes may lead to deterioration in the others C. from an organization point of view, you want all employees developing at the same rate D. it is difficult to choose what process to address first

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Section D: Inventory Management Question 1 MRO inventory is kept to address: A. customers returning products with defects B. production machinery breakdowns C. orders lost in transit D. products that need rework

Question 2 Reducing manufacturing cycle time reduces WIP inventory levels and costs. Cycle time is: A. the time from when the raw materials arrives until product components are assembled B. the time it takes between shifting from downtime to production time C. the time needed to develop / revise products D. the entire time it takes to make a product

Question 3 What is the term for inventory that has only been partially converted to finished goods? A. raw materials B. work-in-process C. on-hold D. MRO

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Question 4 Which is most true about keeping finished goods in inventory? A. Finished good inventory should be kept in inventory at the minimum level required to meet customer service targets. B. Finished good inventory should be kept in warehouses nearest to the market to minimize the delivery costs. C. Finished good inventory should be at maximum levels to protect against stock D. Finished good inventory should be carefully maintained since any defects will immediately be noticed but not easily repaired.

Question 5 WIP inventory, finished good inventory, and MRO inventory are types of inventory along with: A. supplies inventory B. capacity inventory C. raw materials inventory D. resources inventory

Question 6 Inventory is: A. an expense B. a liability C. a necessary cost of doing business D. long-term asset

Question 7 Two key components for successful inventory management and inventory optimization are: A. supply chain collaboration and standard cost reduction initiatives B. supply chain collaboration and inventory visibility C. supply chain information visibility and increased manufacturing leadtime D. reduced supply variability and increase forecast error Copyright © 2013 Real World Supply Chain LLC

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Question 8 All other things being equal, a decrease in inventory will most likely result in: A. an increase in working capital B. an increase in days sales outstanding C. reduction in working capital D. a decrease in accounts payable

Question 9 Defining target inventory levels at all nodes of the supply chain and for all materials is part of: A. inventory management B. inventory policy C. supply chain design D. supply chain planning

Question 10 How much safety stock inventory is required within the supply chain if supply variability is zero and forecast error is zero % at all forecast lags? A. 2 sigma B. sigma C. zero D. 60 days of supply

Question 11 Reductions in forecast error support: A. reduced inventory levels B. increased sales C. reduced transportation lead times D. reduced inventory turns

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Question 12 Increasing the lead-time on information within the supply has what impact on total supply chain inventory levels assuming all other factors unchanged? A. decreased inventory B. constant inventory C. increased inventory D. no impact

Question 13 Aggregate forecasts tend to be: A. more accurate than SKU level forecasts B. less accurate than SKU level forecasts C. as accurate as SKU level forecasts D. less valuable than SKU level forecasts

Question 14 Unreleased inventory that is procured from outside suppliers for use as inputs to manufacturing operations is considered: A. work-in-process inventory B. finished goods inventory C. raw material inventory D. buffer inventory

Question 15 Material released for sale to final customers is considered: A. work-in-process inventory B. safety stock inventory C. buffer inventory D. finished good inventory

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Question 16 Moving from air transportation to ocean transportation has what impact on inventory? A. a decrease in inventory due to lowered transportation expense B. an increase risk of inventory write-off C. an inventory increase equal to the difference between air and ocean transportation lead-time D. an increase risk of inventory theft

Question 17 Inventory maintained within the supply chain to buffer anticipated supply and demand variability is considered: A. buffer inventory B. work-in-process inventory C. in-transit inventory D. safety stock inventory

Question 18 A decoupling inventory strategy to manage a capacity constrained resource would be A. maintain lower finished good safety stock levels B. increase manufacturing lead-times C. maintain buffer inventory in front of the constrained resource to reduce the risk of downtime caused by the unavailability of input materials D. increase demand variability

Question 19 Product cost plus logistics costs is referred to as: A. landed cost B. acquisition cost C. standard cost D. procurement cost

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Question 20 An increase in the frequency of ordering material tends to result in: A. reduced ordering cost B. increased inventory carrying cost C. increased ordering costs D. increased risk cost

Question 21 The goal of inventory management should be: A. increasing customer service levels, increasing inventory turns while maintaining a flexible supply chain B. increase customer service levels and decrease inventory turns C. decrease inventory turns and maintain customer service levels D. increase inventory value and increase inventory turns

Question 22 Excessive work-in-process inventory levels tend to: A. lead to poor manufacturing capacity management B. reduced finished good inventory levels C. increase inventory write-off exposure associated with unforeseen quality issues D. decreased customer service levels

Question 23 A financial reserve is often set up for: A. inventory produced for downside risk B. inventory produced for upside risk C. inventory projected to be sold within the next 3 months D. inventory projected to be written off due to expiration exposure

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Question 24 A company operating at excessive working capital levels may attempt to do what to increase cash flow or finance operations? A. increase days of sale outstanding B. reduce accounts payable C. reduce inventory D. increase accounts receivable

Question 25 Customers and suppliers financing your operations occurs when a company achieves: A. positive working capital B. neutral working capital C. inverse working capital D. negative working capital

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Section E: Logistics Fundamentals Question 1 A recent trend in 3PL arrangements is: A. shorter but more flexible contractual relationships B. integration of storage and tracking C. cross training of executives to develop better working relationships D. long-term contractual relationships

Question 2 All of the following are benefits of using third party partners EXCEPT: A. leverage of current logistics technology B. increase in business focus C. scalability D. control

Question 3 All of the following are true about the term "logistics" EXCEPT: A. it is part of supply chain management B. the largest contributor to its cost is transportation C. it may be defined to include inventory management and forecasting D. it may be defined to include manufacturing

Question 4 In the reverse logistics hierarchy, the 4th level of the five levels is A. repair items that have potential B. reclaim any proprietary technology C. recover energy during disposal D. dispose in responsible landfill

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Question 5 Substituting information for inventory may utilize postponement centers which are used to: A. store WIPS B. divert wrong orders C. delay product assembly D. hold important components

Question 6 The method of reducing stock outs by consolidating stock in centralized warehouses is: A. stock merging B. inventory integration C. finished goods grouping D. risk pooling

Question 7 The process supporting the return of material due to returns, repairs and recycling is called: A. third-party logistics B. reverse logistics C. rapid response D. cross-docking

Question 8 What is the typical risk of contracting with a fourth-party provider? A. Loss of direct control over the logistics operations B. Reduced customer service C. Reduced capacity D. Lack of business flexibility

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Question 9 Which is a 4PL benefit? A. A 4PL allows a firm to adapt to different technologies. B. A 4PL lets the firm hire a contract specialist rather than train or hire new workers. C. A 4PL gives a firm the ability to adapt its warehousing, transportation & packaging needs more rapidly. D. A 4PL enables faster implementation of new technology.

Question 10 Which is not true about reverse logistics? A. It will always be handled at a loss. B. It handles products destined for recycling or disposal. C. It takes care of items that make the reverse journey from customer to supplier. D. Items for reuse can be taken care of by this area of logistics.

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Section F: Market Segmentation Question 1 A source of customer information that provides information on customer values is: A. supplier data B. transaction records C. distribution points D. forecast data

Question 2 After an organization has aligned on the mission and goals associated with creating a customer-focused business, the business should next compare: A. the perspective of customers with the greatest lifetime value to that of customers with low lifetime value B. the contribution of the few top level customers versus the many low level customers C. the expectations of long-term customers and new customers D. the level of satisfaction among its customer base with that of the nearest competitor

Question 3 Creating a map for customer segments entails: A. recognizing businesses have more than one type of customer B. developing individualized CRM programs C. ranking customers according to contribution and length of relationship D. segmenting the customer base into high value and low value categories

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Question 4 Each of the following are typical customer segments, EXCEPT: A. segments by customer value B. segments by income C. segments by customer needs D. segments by preferred channel

Question 5 How does contact channel strategy increase profitability? A. by utilizing the most cost-effective and customer preferred channel B. by delivering a constant stream of new transactional customers C. by using only a single channel D. by leveraging the least complex channel

Question 6 Purchased data as a source for customer information for CRM may be more useful for: A. determining market potential B. getting a broader look at existing customers C. increasing the information in an organizations customer database D. acquiring new customers

Question 7 The information source that can best show purchase frequency is: A. sales representatives B. transaction records C. distribution points D. service representatives

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Question 8 The systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services is: A. market assessment B. market troubleshooting C. market evaluation D. market research

Question 9 What is not a specific purpose of market research? A. setting prices B. finding market potential C. analyzing markets D. refining product design

Question 10 When creating a customer-focused business, after a customer segment map is created, the company should next: A. determine how to define customer service B. develop a CRM program C. implement CRM programs for the most appropriate customers D. determine the customers needs

Question 11 Which is most true about total marketing costs? A. It tends to increase to maintain customer interest. B. It tends to be level as new and old customers begin to mix. C. It tend to rise and fall, depending on competitor reactions. D. It tends to decline after the first in year in a customer relationship.

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Question 12 Which of the following is not a business-to-business customers specific area of expectation from the companies they do business with? A. potential for long term partnership B. complementary core competencies C. continuous improvement D. knowledge of the customers business requirements

Question 13 Which of the following shows how often things are purchased and how those purchases are financed? A. buyer habits B. product invoices C. sales receipts D. transaction records

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Section G: Demand Planning Question 1 A specific drawback to using the moving average algorithm is that it: A. corrects immediately chance variation, thus not allowing for further study B. generally fails to recognize trends C. requires a large collection of data D. is of limited use on products that have no seasonal variations

Question 2 A steady movement up or down in recorded data is a: A. trend B. development C. leaning D. shift

Question 3 All of the following are factors of seasonal demand EXCEPT: A. hour of day B. severity of weather C. product introductions D. type of holiday

Question 4 All of the following are ways that Marketing contributes to the demand planning process EXCEPT: A. market research B. new product introductions C. product management D. financial management

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Question 5 An external factor that affects demand is the business cycle. The business cycle may stimulate or depress demand in: A. many markets in long term waves B. the market which the company is focusing on C. the products that the company is currently producing D. an immediate way

Question 6 Demand planning needs to take promotions into account because they: A. affect the budget B. can cause upward demand fluctuations C. trigger production schedule changes D. divert inventory stocks

Question 7 During most product life cycles, peak demand occurs at all of the following points EXCEPT: A. after product refinements are made B. after customers become aware of the product C. before product launch D. at the end of product life cycle

Question 8 Forecast error is defined as: A. the difference between actual demand and the forecast B. the absolute value of the difference between forecast and demand C. the error due to choosing the wrong forecasting method D. the periodic percent error from one period to the next

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Question 9 Given multiple years of data, the monthly seasonality index is found by: A. dividing the average of a particular month by overall monthly average B. multiplying the particular months average by an index factor C. adding 12 monthly averages and dividing by 12 D. dividing the total number of sales in a particular month by total number of years covered

Question 10 In the pyramid forecasting method, demand is often disaggregated to individual products based on: A. inputs of the sales force B. expected demand of a new product C. historical demand for a product D. consensus of the management panel

Question 11 Independent demand is for: A. multiple components B. raw materials C. materials from a single supplier D. finished products

Question 12 Mean Absolute Deviation for sales and forecasts is calculated by: A. average errors multiplied by standard deviation B. standard deviation multiplied by number of periods C. sum of errors divided by number of errors D. average of errors divided by number of errors

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Question 13 The best reason for the qualitative approach to forecasting is: A. not all data is 100% accurate B. forecasting still requires the human touch C. balance needs to be maintained D. historical data does not go back far enough

Question 14 The following statement “a product that has dependent demand cannot have independent demand” is: A. false, as products can be both individual products or just components of bigger products B. true, as products can only be classified as either components or as finished C. false, as products change demand classification in the stages of the supply chain D. true, as products maintain classification throughout the supply chain

Question 15 The introduction of a second smoothing constant into the exponential smoothing equation is called: A. advanced smoothing B. seasonal adjustment C. complex smoothing D. trend adjustment

Question 16 The quantitative approach to forecasting that focuses upon the demand related to the product rather than the demand for the product itself is: A. inherent B. extrinsic C. intrinsic D. nonessential

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Question 17 The term "seasonal" as it relates to forecast refers to: A. any forecasting period B. one of the four seasons C. one month D. one year

Question 18 To be credible, time series forecasts should: A. include only reliable data sources B. show at least include 1 type of variability C. graph as a straight line D. include an estimate of the degree of potential error

Question 19 When discussing forecasting, seasonality best refers to any changes that are brought about: A. by predictable occurrences B. by temporal phenomenon or by seasons of the year C. by the cyclical change in product demand D. by the evolving needs of customers

Question 20 When planning for demand changes due to competition, it is best to have: A. a large budget B. flexibility to increase or reduce capacity C. new product innovations ready for launch D. a reliable system of getting customer feedback

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Question 21 Which of the following is true about nave forecasting? A. assumes the demand will be consistent from one period to the next B. makes educational guesses on demand for a new product C. request input from employees outside of the supply chain D. it is an error prone forecast

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Section H: Customer Relationship Management (CRM) Concepts Question 1 A key aspect of sales operations for effective CRM is: A. capturing and storing relevant customer data B. a decentralized business data warehouse C. an end-to-end supply chain planning system D. a supply chain optimization system

Question 2 A challenge to effective CRM in today's large, global organizations is: A. too little information B. too much information C. long lead-time on information D. legacy system integration

Question 3 All of the following are true of lifetime customers EXCEPT: A. marketing costs tend to reduce over time B. relationship management costs can exceed total marketing costs C. decreased effort to maintain same level of customer satisfaction D. increased profitability and growth opportunities

Question 4 All of the following are key processes in effective CRM EXCEPT: A. measure B. monitor C. alliance building D. report

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Section I: Supply Management Concepts Question 1 A benefit of strategic sourcing is collaboration. This generally means: A. the company has access to supplier data in real time B. suppliers will be able to dictate product changes as long as it is within agreed parameters C. the company will broker partnerships between rival suppliers to get the optimal results D. suppliers can participate in improving the system

Question 2 A partnership type of supplier relationship involves: A. medium term contracts B. some interaction with competitors C. awareness and adaptation to each others cultures D. extensive communication enforced via contracts

Question 3 A strategy to manage risk when outsourcing is: A. constant data integration B. maintaining an acceptable level of redundancy C. purchasing insurance against errors by 3PLs D. maintaining primary control of outsourced activities

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Question 4 After considering market differential carefully, the company can learn that: A. there are never good reasons for outsourcing a core competency B. there are never good reasons to maintain an adequate of poor competency C. there are some good reasons to maintain an adequate or poor competency D. there is no option but to collaborate with specialized partners to strengthen weak areas

Question 5 An account manager usually works in which type of supplier relationship? A. partnerships B. ongoing relationship C. buy on the market D. strategic alliance

Question 6 Each of the following is a benefit derived from strategic sourcing, EXCEPT: A. focus on true cost to the customer B. collaborative C. increased visibility across the supply chain D. clear separation of business processes

Question 7 It is essential for management when assessing the current supply chain to have: A. a group of strong managers B. a set of goals to achieve C. a group from outside of the company to assess objectively D. a set of meaningful metrics

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Question 8 Measuring the success of CRM outsourcing is done by all of the following EXCEPT: A. measuring performance expectations at regular intervals so that changes can be made when needed B. maintaining ultimate responsibility for CRM to have a close watch over customers needs and expectations C. maintaining an exit strategy to reduce operational disruptions that come with switching D. maintaining separate relationships among multiple vendors to create specialized practices

Question 9 One approach to sourcing where organizations buy based on immediate needs is A. ongoing relationship B. strategic sourcing C. buy on the market D. strategic alliance

Question 10 Strategic sourcing involves finding and building ongoing relationships with partners who do all of the following EXCEPT: A. account for the majority of the organization's purchases B. provide key materials and services C. can help the purchaser meeting profitability and customer satisfaction goals D. can provide the ultimate lowest cost

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Question 11 The merging of cultures is associated with which type of supplier relationship? A. collaboration B. mergers C. partnership D. ongoing relationship

Question 12 What is most true? When all the components of a complex electronic system are made off-shore: A. knowledge of the systems at the organization is maintained through supplier communications B. knowledge of the systems at the organization is no longer maintained C. knowledge of the systems at the organization is diluted because of the transfer of information D. knowledge of the systems at the organization is enhanced due to the training done at the supplier

Question 13 What is one significant risk of outsourcing? A. The firm loses related knowledge and skills related to manufacture of the product B. Prices of the material decrease while the shipment is in-transit C. Suppliers may not deliver on time D. Materials received are of lower quality

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Question 14 Which of the following best describes the term landed costs? A. all the other expenses that are added to the purchase price of the material in order to make a fair comparison of prices across various sources B. the cost required to ship materials from Asia C. the fees associated with unloading raw materials at the destination port D. the duties paid when importing materials from outside the country

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Module 2: Supply Chain Strategy, Design and Compliance

Section A: Sustainability Question 1 In order for a company to be sustainability, it must: A. have an economically viable business model B. minimize raw material usage C. minimize energy usage D. minimize its carbon footprint

Question 2 All of the following are lagging economic indicators EXCEPT: A. outstanding business loans B. S&P stock index C. company profits D. average duration of unemployment

Question 3 How often does ISO certification need to be renewed? A. every year B. every three years C. every five years D. every four years

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Question 4 Materials considered to present a unreasonable risk to health, safety and property when transported are considered: A. cold chain goods B. dangerous goods C. in-transit goods D. unreleased goods

Question 5 The ISO that references social sustainability is: A. ISO 14000 B. ISO 26000 C. ISO 9000 D. ISO 3000

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Section B: Risk Management Question 1 A specific risk that supply chain strategists assess during risk prevention is: A. loss of property B. loss of communication between supply chain elements C. loss of a customer D. loss of a key asset or supplier

Question 2 All of the following are part of supply chain risk management strategies EXCEPT: A. redundancy in the supply chain B. having contingency plans C. optimizing the supply chain D. doing research

Question 3 ISO certification must be renewed every: A. 1 year B. 3 years C. 5 years D. never

Question 4 Managing risk in the supply chain is the responsibility of the: A. company and its suppliers B. company and its retailers C. channel master and individual partners D. top management of the supply chain elements

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Question 5 The fourth key concept in risk prevention strategy is: A. share risk among stakeholders B. share risk among key suppliers C. share risk among supply chain partners D. share risk among investors

Question 6 The primary benefits of a Customs-Trade Partnership Against Terrorism (C-TPAT) importer are all of the following EXCEPT: A. reduced supply chain disruptions risk following a terrorist attack B. reduced customs fees C. a more secure supply chain for all stakeholders D. a reduced number of inspections and shortened border wait times

Question 7 Tracking the performance of a broad portion of the supply chain base is considered: A. a risk management technique B. a necessary certification measurement C. an effective supplier performance measurement system D. an integral part of a benchmarking system

Question 8 Which of the following is not a specific tactic to consider when preparing for disruption? A. Pay special attention to maintenance of information flows. B. Develop a sourcing process that takes into account the loss of a key retailer. C. Do not rely only on extra stores of inventory. D. Research best practices in your industry and globally.

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Section C: Globalization Question 1 A firm that arranges transportation for commercial cargo is called a: A. freight forwarder B. broker C. consolidator D. export packer

Question 2 A shipping association is: A. a group of carriers that partner up to have better leverage at various ports B. shipping line partners that group together against competition C. smaller exporters banded together in an effort to qualify for rate discounts D. smaller shippers joining to compete with large shippers

Question 3 Consolidators offer a service generally suited for: A. consolidation of small shipments for presentation to an air carrier B. combining smaller shipments into larger shipments bound for international destinations C. smaller firms needing other partners to take advantage of large shipment discounts D. filling containers for intermodal shipment

Question 4 In the US, export documentation is needed for shipments valued at: A. $1,500 B. $2,000 C. $2,500 D. $3,000

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Question 5 NAFTA was formalized in: A. 1997 B. 1996 C. 1995 D. 1994

Question 6 The clear distinction between EMCs and ETCs is: A. ETCs deal will foreign transactions B. EMCs are not necessarily exporters, rather consultants C. ETCs buy the exporters goods and resell them in a foreign market D. EMCs will locate importers to buy goods from companies looking to expand internationally

Question 7 The most common tool in currency hedging is: A. currency options B. currency swaps C. currency futures D. currency forwards

Question 8 The set of terms used in contracts of carriage is called: A. Incoterms B. terms of service C. master agreement D. payment terms

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Question 9 Which is always true in free trade zones? A. Retail trade is forbidden. B. Goods will have an agreed time limit on storage. C. Reduction of import duties is assured. D. Potential compliance problems need to be solved before entry.

Question 10 Which of the following is true about bills of lading (B/L)? A. It is a letter issued by a bank B. It serves as the carrier's contract C. It is similar to a certificate of origin D. It attests that a policy is taken out to cover the cargo

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Section D: Logistics Question 1 A firm that leases a fleet of vehicles to move its own products is called a: A. private carrier B. common carrier C. contract carrier D. exempt carrier

Question 2 A set of procedures for the efficient operation of a warehouse is called: A. an automated storage and retrieval system B. a warehouse management system C. an automated guided vehicle system D. a ERP system

Question 3 A type of operation that may be done at a value-added warehouse is: A. consolidation of parts and total assembly of simple products B. parts storage to open up space at factories C. cycle/ physical counts of inventory D. final assembly of products for mass customization

Question 4 Air transport is especially suited to: A. cargo requiring significant packaging B. specialized cargo C. valuable, fragile and perishable cargoes D. cargo that needs to be delivered immediately

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Question 5 All of the following are crucial to effective consolidation of movement EXCEPT: A. expeditious unloading of products B. accurate tracking of items C. fast reloading of cargo D. large fleet of delivery trucks

Question 6 All of the following are major liability concerns for transport EXCEPT: A. perishability B. possibility of weather damage C. value per pound D. susceptibility to explosion

Question 7 An agreed potential trade-off to reduction in transportation cost is: A. increase in transit times B. increase in inventory cost C. increase in environmental impact D. infrequent deliveries

Question 8 As the number of warehouses increase, which is most true? A. Inventory costs may go down because it is shared among the warehouses. B. Transportation costs may increase because the distances between warehouses increases. C. Generally, cost of lost sales will decline before rising again. D. Total cost will not always increase.

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Question 9 Assortment capability of warehousing benefits customers by: A. increasing the number of options for customers in terms of product choices B. reducing the number of suppliers a customer has to deal with to acquire related goods C. eliminating the need to shop around for other product sources D. providing a wider range of seasonal goods

Question 10 Cross-docking occurs when: A. products are stored at strategic locations B. stocks are transferred directly from supplier vehicles to distribution vehicles C. warehousing of stocks are shared among supply chain partners D. multiple products can be stored in one location

Question 11 Each of the following is a form of warehouse ownership, EXCEPT: A. private warehouses B. public warehouses C. contract warehouses D. interim warehouses

Question 12 Generally, the more strategically a warehouse is placed in relationship to markets, the: A. shorter the delivery routes B. easier it is to maintain an accurate inventory of products C. less inventory will build up in the system D. more manpower is needed to handle frequent deliveries

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Question 13 In terms of costs, which is true when adding warehouses to the system? A. inventory costs rise B. transportation cost rise C. setup costs decrease D. costs do not rise

Question 14 Independently owned warehouses for hire are classified as: A. private warehouses B. public warehouses C. contract warehouses D. service warehouses

Question 15 Logistics reengineering projects can best help increase tax savings by: A. rerouting delivery through longer but less tax-ridden routes B. reducing manufacturing costs by choosing suppliers from low-tax jurisdictions C. reducing lead times to avoid tax penalties D. reducing tax liabilities by moving facilities away from high tax jurisdictions

Question 16 One of the most common modes of transportation is: A. air B. water C. multimodal D. truck

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Question 17 Rail transport has an edge over water transport in carrying very heavy loads in what area? A. accessibility to diverse destinations and points of origin B. ease of loading products unto the mode of transport C. product security with little chance of theft D. minimization of damage to product while in transit

Question 18 Shipment of products from multiple sources that are broken down and assembled into the desired product mix is a process of which warehouse capability? A. break bulk B. consolidation C. mixing D. assortment

Question 19 Sorting and consolidation is MOST significant with which picking strategy? A. basic order picking B. batch picking C. zone picking D. wave picking

Question 20 The area of logistics management dealing with product welfare while not in transit is: A. storage B. cargo care C. warehousing D. product storing

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Question 21 The birdyback service is best suited for: A. highly valuable packages that need to be delivered immediately to the destination B. small packages that may or may not be perishable C. cargo that can fit in the cargo hold on a plane D. commodities that originate or conclude in smaller cities not served by major airports

Question 22 The combination of different modes of transportation is called: A. intermodal transport B. variable transport C. flexible transport D. open transport

Question 23 The following are examples of the use of vehicles for temporary storage, EXCEPT: A. short-term storage B. crowded facility C. changed destination D. increased security

Question 24 The least used method of transport is: A. pipeline transport B. air transport C. water transport D. rail transport

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Question 25 The main benefit to the postponement capability of warehouses is: A. training for staff to develop final production skills B. delivery lead-time to customers can be increased C. risk pooling can be utilized resulting in more efficient use of component inventory D. finished goods can easily be adapted to changing market conditions

Question 26 The Motor-Carrier Act of 1980 changed what aspect of the contract carrier business? A. the maximum price that can be charged per contract B. the routes the carrier must take C. the number of active contracts allowed at any one time D. the type of cargo allowed

Question 27 The natural market for truck transport is: A. high value items that need immediate point-to-point delivery B. large shipments that have multiple destinations C. low value shipments that have small risk of theft D. relatively small shipment of high value items traveling a short distance

Question 28 The number, placement and efficient operation of a warehouse should be primarily concerned with: A. introduction phase of product B. growth phase of product C. end phase of product D. the entire product life cycle

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Question 29 The piggyback service is when: A. a truck travels on a train to cover long stretches of the delivery route B. a truck trailer or container of cargo is placed on a railroad flatcar C. smaller cargo is placed in available spaces of bulky cargo going in the same direction D. cargo will not be sent direct, rather through a series of different cheaper routes

Question 30 The primary value water transport provides is: A. huge loads B. reliability C. reduction of road congestion D. low cost

Question 31 The tactical level of shipment planning involves: A. distribution center network design B. evaluation of routes and carriers C. daily shipment schedule development D. hourly shipment schedule development

Question 32 The warehouse stockpiling capability is best suited for which type of product? A. technological B. industrial C. pharmaceutical D. agricultural

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Question 33 To qualify as a private carrier, the firm must: A. own or lease vehicles for its use, manage their operation and not be primarily in the transportation business B. own a fleet of vehicles to transport cargo of another firm exclusively C. have exclusive access to various types of vehicles that it can use at its own discretion D. own all the vehicles it uses to transport its cargo and have the option to rent out the vehicles when not in use

Question 34 Unmanned machines that move along optical tape or magnetic wire are: A. automated guided vehicle B. automatic pallet trucks C. autonomous retrieval lifter D. robotic forklifts

Question 35 Water transportation was the only way to conduct trade until the: A. 17th century B. 18th century C. 19th century D. 20th century

Question 36 What is one type of piggyback service? A. trailer on flatcar B. express service C. custom critical D. small package service

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Question 37 What is the trade-off to the benefit of speed provided by air transport? A. safety B. cost C. pollution D. noise

Question 38 What will cost more per pound to ship? A. ping-pong balls B. gold bars C. steel D. oil

Question 39 When considering the volume of the cargo to be shipped, it is best to: A. avoid large loads to lessen cost B. minimize mixing loads to avoid confusion later C. consolidate small loads into larger ones D. ship more often to eliminate chances of losing large volume of cargo at one time

Question 40 Which is an example of a land bridge in the context of intermodal transport? A. from Norway through Finland by highway, through Russia on rails, down to China via truck B. from Mexico through the US via railway up to Canada C. from the coast of Asia to the US west coast by ocean vessel, from west to east on rails, the from the Atlantic coast to Europe on another ship D. from New Zealand via ship to Australia, onto Singapore via another ocean vessel

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Question 41 Which is not a factor of transportation economics? A. space availability B. handling C. liability concerns D. density

Question 42 Which is not a straightforward benefit to private warehouses? A. budget flexibility B. control C. market presence D. no markup

Question 43 Which is not true about pipelines capabilities? A. cargo damage is nonexistent B. extreme weather will not affect them C cargo loss is nonexistent D. power outages do not affect them

Question 44 Which of the following provides specialized packaging services? A. Export Packing Companies B. Expert Packing Companies C. Specialist Packing Companies D. Professional Packing Companies

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Question 45 Which transportation mode is available for continuous use? A. truck B. air C. pipeline D. water

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Section E: Managing the Supply Chain Question 1 An essential requirement for successful supply chain management is: A. goal-driven organizations B. fast adapting organizations C. process-oriented organizations D. lean but efficient organizations

Question 2 Supply Chain Management Cost (SCMC) is defined as: A. all direct and indirect operational SCOR business process expenses B. the landed cost of the material plus the manufacturing cost C. opportunity cost related to not implementing continuous improvement projects D. all operating expenses associated with logistics and warehousing

Question 3 Upside supply chain adaptability is the amount of increased production an organization can achieve and sustain in: A. 1 year B. 6 months C. 1 month D. 2 weeks

Question 4 All of the following are common customer-focused metrics EXCEPT: A. stockout frequency B. inventory turns C. backorders D. fill rate

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Question 5 Which of the following metric measures product support? A. perfect order fulfillment B. fill rate C. backorder value D. customer complaints

Question 6 The percentage of orders delivered on time with the appropriate documentation and with no delivery issues is measured in which of the following metrics? A. perfect order fulfillment B. fill rate C. line order fulfillment D. order quantity fulfillment

Question 7 The order fulfillment cycle is: A. order fulfillment process time plus order fulfillment dwell time B. order fulfillment process time plus transportation lead-time C. transportation lead-time plus lead-time on information D. lead-time on information plus lead-time on planning cycle

Question 8 A supply chain's ability to react to significant decreases in demand without experiencing excess expenses is called: A. supply chain adaptability B. downside supply chain adaptability C. supply chain reactiveness D. supply chain agility

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Question 9 Direct material plus direct labor plus overhead costs is: A. supply chain management cost B. cost of goods sold C. supply chain planning cost D. inventory carrying cost

Question 10 All other things being equal, which of the following would positively impact the cash-to-cash cycle metric: A. reduced inventory B. increased accounts receivable C. increased inventory D. increased manufacturing lead-time

Question 11 All other things being equal, which of the following would positively impact the cash-to-cash cycle metric: A. increased manufacturing lead-time B. increased inventory C. increased accounts payable D. reduced accounts receivable

Question 12 Products with short life cycles and high forecast error are best sourced with: A. an efficient supply chain B. a mature supply chain C. a responsive supply chain D. a short supply chain

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Section F: Technology Question 1 A centralized repository of metadata is a: A. data dictionary B. database C. schema D. data cube

Question 2 A company's IT infrastructure enables supply chain operations by all of the following EXCEPT: A. reliably and efficiently sharing actionable data amongst all relevant supply chain stakeholders B. reducing the lead-time and cost of information C. controlling access to sensitive or proprietary information D. lowering global inventory levels

Question 3 A computer network that spans geographic boarders and often utilizes leased lines is called a: A. LAN B. VPN C. WAN D. Wireless LAN

Question 4 A denial of service attack is LEAST likely to impact a: A. thin client B. fat client C. server D. mainframe

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Question 5 A directory or advertising service for web services is: A. UDDI B. SOAP C. WSDL D. ebXML

Question 6 A flow chart or process map is a: A. mathematical model B. simulation model C. conceptual model D. decision support system

Question 7 A hosting service that transports secure, structured data between business partners is A. VAN B. EDI C. EDT D. LAN

Question 8 A language designed to control the presentation of web pages on mobile devices is: A. XML B. ebXML C. WML D. ANSI X12

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Question 9 A negative impact to sellers of B2B market places is: A. shorter product life cycles B. increased overhead C. reduced volumes D. reduced margins

Question 10 A private exchange is be part of which e-business layer? A. business layer B. foundation layer C. application layer D. aggregation layer

Question 11 A protocol for accessing a web service is: A. UDDI B. SOAP C. WSDL D. XML

Question 12 A repository of a company’s electronic data is a: A. data mart B. object-oriented database C. ERP systems D. data warehouse

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Question 13 A secured connection from an intranet into an unsecured network is a: A. VPN B. consumer portal C business portal D. EDT

Question 14 A semi passive RFID tag utilizes energy from the interrogators signal for communications and uses a small power source to: A. increase life span B. record environmental information C. communicate with active RFID tags D. increase transmission distance

Question 15 A simplified representation of a process or a system that incorporates the most important variables is: A. a tool B. a model C. a simulation D. a concept

Question 16 A software system that incorporates procedures for the efficient operation of a warehouse is: A. WCS B. RFID C. WMS D. EDI

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Question 17 A subset database that is typically designed to meet a specific user community's needs versus being designed to optimally store an organizations data is a: A. data warehouse B. object-oriented database C. relational database D. data mart

Question 18 A successful WMS implementation combined with the appropriate AIDC and communication devices should increase productivity by: A. 10 to 20% B. 0 to 10% C. 30 to 40% D. 20 to 30%

Question 19 A supply chain is considered optimized when: A. inventory is minimized B. customer service is maximized C. cash flow is maximized D. overall benefits are maximized

Question 20 A supply chain optimization model is MOST likely included in: A. SCM B. APS C. IMS D. TMS

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Question 21 A text file containing comma delimited data is: A. XML B. a flat file C. EDI D. WML

Question 22 A third party that handles EDI transmissions is: A. a value-add network B. an internet service provider C. a leased line provider D. private exchange

Question 23 A transactional ERP system is an: A. exploitative system B. automation system C. optimization system D. exploratory system

Question 24 A virtual company requires all of the following EXCEPT: A. trust B. shared competitive vision C. strategic alliance D. real-time data

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Question 25 Adjusting an ERP system's parameters is: A. customization B. implementation C. configuration D. roll-out

Question 26 Advanced optimization tools typically provide the most benefit by: A. managing dedicated capacity B. performing scenario analysis C. enabling inventory and labor to be replaced by information D. providing conceptual models

Question 27 AIDC devices do all of the following EXCEPT: A. reduce implementation costs B. reduce errors C. increase productivity D. reduce shrinkage

Question 28 All of the following are AIDC devices EXCEPT: A. bar codes B. RFID C. magnetic stripes D. check by

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Question 29 All of the following are benefits of automated data collection EXCEPT: A. reduced lead-time on information B. reduced inventory C increased reliability D. reduced errors

Question 30 All of the following are benefits of TMS EXCEPT: A. reduced dwell time B. reduced idle manufacturing capacity C. reduced freight costs D. reduced document errors

Question 31 All of the following are benefits to sellers of B2B market places EXCEPT: A. increased market access B. reduced transaction costs C. volume leveraging D. increased differentiation

Question 32 All of the following are common characteristics of local area networks (LAN) EXCEPT: A. radio waves B. high data transfer rates C. small geographic area D. lack of leased lines

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Question 33 All of the following are common reasons for implementing an ERP upgrade EXCEPT: A. staying current B. improved open architecture that eases system integration C. critical new functionality D. more user friendly leading to increased acceptance

Question 34 All of the following are considered competitive advantages of ERP systems EXCEPT: A. increased, efficient communication of all supply chain stakeholders B. security C. reduced lead-time on information D. automation

Question 35 All of the following are disadvantages of EDI EXCEPT: A. batch processing B. custom software C. difficulty transmitting complex data D. error handling

Question 36 All of the following are examples of dynamic supply chain data EXCEPT: A. SKU numbers B. inventory C. forecast D. safety stock levels

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Question 37 All of the following are financial benefits of e-business EXCEPT: A. reduced cash-to-cash cycle B. reduced transportation costs C. increased customer lifetime profitability D. dynamic pricing to balance supply and demand

Question 38 All of the following are included in the EPC code transmitted by an RFID tag EXCEPT: A. manufacturer B. customer C. SKU D. serial number

Question 39 All of the following are key characteristics of enterprise resource planning (ERP) systems EXCEPT: A. modularized business applications B. common data source C. seamless integration enabling the flow of information throughout the firm D. normalized application structure

Question 40 All of the following are key to maximizing the ROI of an ERP system EXCEPT: A. hiring skilled employees and providing adequate training B. system monitoring and constraint improvement C. early global launch D. business process mapping

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Question 41 All of the following are part of the e-business application layer EXCEPT: A. billing applications B. search engines C. shopping carts D. portals

Question 42 All of the following are parts of the e-business aggregation layer EXCEPT: A. portals B. service providers C. brokers D. exchanges

Question 43 All of the following are steps associated with data acquisition EXCEPT: A. defining hardware B. providing access to data C. ensuring data accuracy D. data collection

Question 44 All of the following SCM systems exist at the operation level EXCEPT: A. IMS B. WMS C. DSS D. LMS

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Question 45 An advantage of an active RFID tag is: A. increased transmission distance B. reduced cost C. increased size D. reduced size

Question 46 An example of an operational execution system is: A. receiving system B. network design system C. inventory planning system D. customer relationship management system

Question 47 An example of an operational planning IT system is: A. DSS B. production scheduling C. transportation planning system D. supplier relationship management system

Question 48 An Excel pivot table is MOST applicable for displaying the output of: A. search results B. a simulation model C. an OLAP query D. an SQL query

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Question 49 An inexpensive computer terminal is an example of: A. a thin client B. a fat client C. server D. mobile device

Question 50 An RFID tag that requires a power source and broadcasts information is: A. an active tag B. a semi passive tag C. a passive tag D. a semi-active tag

Question 51 An XML document describing a web services and explaining how to access it is: A. SOAP B. ebXML C. WSDL D. UDDI

Question 52 Automated event notification based on business rules and triggers is part of: A. SCV B. ERP C. SCEM D. VMI

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Question 53 B2C is: A. business-to-consumer e-commerce B. content management e-commerce C. buy-side e-commerce D. business-to-business e-commerce

Question 54 BPM is a key step when implementing: A. data-oriented middleware B. process-oriented middleware C. customized solutions D. configurable solutions

Question 55 Business portals when initially extended to suppliers are most likely: A. open B. read only C. read/write D. web-based

Question 56 Business-to-business membership-based exchanges were developed to mitigate the risk of: A. credit B. market changes C. quality issues D. unknown suppliers

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Question 57 Buying or selling products and services over the internet is: A. online trading B. e-commerce C. web exchange D. web-based ERP

Question 58 Classical mathematical modeling is being replaced by the following to solve complex transportation problems: A. linear programming B. nonlinear programming C. artificial intelligence D. mixed integer programming

Question 59 Compensation is part of which of the following ERP modules: A. human resources B. finance C. assets D. customer management

Question 60 Core ERP processes typically focus on all of the following areas EXCEPT: A. finance B. manufacturing C. distribution D. customer relationship management

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Question 61 Data aggregation supports the analysis of large volumes of data by: A. ignoring data outliers B. limiting the scope of data included C. grouping information in high level categories D. reducing variability

Question 62 Data warehouse updates are typically: A. real-time B. batch processed C. weekly D. nightly

Question 63 Documenting and communicating lessons learned from an IT project is a key step of A. post-implementation review B. post-mortem review C. knowledge sharing process D. pilot project

Question 64 Each host in the following architecture can act as both a client and a server: A. client / server B. peer-to-peer C. mobile D. hosted

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Question 65 EDI stands for: A. Electronic Data Interface B. Electronic Data Interaction C. Electronic Data Intercommunication D. Electronic Data Interchange

Question 66 Electricity, telephones and the internet are consider what type of technology? A. innovative B. advancing C. cutting edge D. disruptive

Question 67 Fast-paced, high volume operations are potential environments for: A. bar coders B. manual operations C. batch data processing D. RFID

Question 68 Flow process charts was one of the early tools used in what is today known as: A. flow charting B. SCOR C. operation reengineering D. business process mapping

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Question 69 Forecast error reductions, decreased inventory levels and increased order fill rates resulting from successful IT projects are considered: A. intangible benefits B. KPI benefits C. tangible benefits D. metric benefits

Question 70 GRI stands for: A. Global Reporting Initiative B. Global Reaction Initiative C. Global Response Initiative D. Global Reaching Initiative

Question 71 In a client / server system, the client is typically designed to handle: A. content sharing B. low data demand tasks C. resource sharing D. peer-to-peer networking

Question 72 In the business-to-business world, which of the following is critical to understanding and communicating a customers unique requirements? A. sales representatives B. efficient communication channels C. fast feedback gathering system D. trained customer service representatives

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Question 73 Information systems can best help resolve lead time vs. transportation costs by: A. better planning of delivery routes to reduce transportation costs B. better scheduling of production which can lead to goods being transported as they are manufactured C. better deployment of transport vehicles to maximize the loading capacities of each vehicle D. better anticipation of demand which can lead to better planning which increases a manufacturers ability to ship full truckloads

Question 74 Interrogators are used to: A. poll customers B. automatically read RFID tags C. boost data transmission signals D. check warehouse system status

Question 75 IT provides all of the following roles in supply chain management EXCEPT: A. storing and analyzing supply chain data B. enabling strategic, tactical and operational activities C. product development D. managing data flow throughout the supply chain

Question 76 Metadata used to automate a web site's presentation is MOST important for: A. buy-side e-commerce B. content management e-commerce C. sell-side e-commerce D. B2B e-commerce

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Question 77 Most retail stores operate independently from the corporation's ERP system, but do share: A. inventory levels B. labor utilization C. customer service levels D. POS data

Question 78 Object-oriented database are MOST likely to be used for: A. storing pictures and videos B. enterprise data warehouses C. ERP systems D. business intelligence tools

Question 79 Operational information technology tools tend to be separated into the following levels: A. planning and execution B. scheduling and execution C. design and implementation D. design and decision

Question 80 Passive or automatic data capture does all of the following EXCEPT: A. increases capacity utilization B. increase productivity C. improve data accuracy D. reduce information lead-time

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Question 81 Product mix is determined by which retail SCM system? A. merchandise planning B. location planning C. SCP D. assortment planning

Question 82 Reprogramming an ERP system to include functionality specific to your business is: A. configuration B. customization C. implementation D. roll-out

Question 83 Risk pooling is a concept included in which of the following systems? A. IMS B. WMS C. TMS D. EDI

Question 84 Sharing data with external customers and suppliers tends to lead to: A. increased profits B. reduced inventory levels C. optimal network decisions D. minimal forecast error

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Question 85 Software containing services that enable otherwise incompatible applications to communicate is: A. middleware B. ERP C. web services D. business portals

Question 86 Sourcing and procurement systems attempt to do all of the following EXCEPT: A. leverage purchasing power across the entire supply chain B. assist managers in differentiating suppliers C. analyze global taxation D. segment customers

Question 87 Structured Query Language (SQL) is a: A. data manipulation language B. compiled language C. html language D. web service language

Question 88 Supply chain event management systems are MOST beneficial for: A. regional supply chains B. large, complex supply chains C. high volume, local supply chains D. vertically integrated supply chains

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Question 89 Supply chain planning systems (SCP) are designed to: A. optimize supply chain operations B. assist managers in making better, data driven decisions C. reduce inventory levels D. minimize transaction costs

Question 90 Tactical IT tools are LEAST likely to be designed for: A. demand forecasting B. supply chain event management C. advanced planning and optimization D. shop floor management

Question 91 The business justification for a new supply chain IT project should include ROI analysis which for an IT project is: A. benefits divided by costs B. costs divided by benefits C. net benefits D. cash flows divided by costs

Question 92 The computer language commonly associated with relational databases and designed for data management is: A. object-oriented B. structured query language C. JAVA D. PERL

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Question 93 The database design strategy of grouping data together by common categories and creating table links is: A. normalization B. standardization C. simplification D. redundancy

Question 94 The ERP software design shift from proprietary, closed applications to web-based modules: A. increased user training requirements B. increased costs C. eased system implementation D. eased system integration with legacy and 3rd party systems

Question 95 The following is utilized to provide a secure extension of private network into an unsecured network: A. LAN B. WAN C. value-added network D. VPN

Question 96 The global network of TCP/IP networks is the: A. WAN B. intranet C. internet D. extranet

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Question 97 The importance of a robust business process designed to manage data changes with an ERP system increases when: A. global KPI's are implemented to managed the firm B. centralized management increases C. data visibility increases D. complexity and integration increases

Question 98 The key difference between supply chain planning (SCP) and advance planning and optimization (APO) is: A. a simulation engine B. APO systems make decisions C. SCP systems D. inventory modeling

Question 99 The least significant benefit of increasing supply chain data visibility is: A. tracking the physical location of materials and services B. one version of the supply chain plan C. active alerts transmitted in real-time to relevant stakeholders D. reduced forecast error

Question 100 The LEAST significant consideration prior to launching an e-business initiative is: A. competitors' capabilities B. internet reliability C. economic environment D. supply chain development state

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Question 101 The LEAST significant contributor to supply chain data errors is: A. data entry B. data manipulation C. bar coders D. legacy system integration

Question 102 The least sophisticated inventory system is a: A. perpetual inventory system B. cycle counting inventory system C. continuous inventory system D. periodic inventory system

Question 103 The main goal of service-oriented architecture (SOA) is: A. normalization B. loose coupling C. standardization D. decoupling

Question 104 The MOST common types of data updates to physical data warehouses are: A. daily and weekly B. real-time and nightly C. manual and automated D. real-time and batch

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Question 105 The MOST significant benefit of data aggregation is: A. reduced variability B. increased visibility C. reduced storage requirements D. data transmission speed

Question 106 The MOST significant benefit of extending transactional ERP information to suppliers is: A. strategic planning B. task automation C. enterprise scheduling D. reduced forecast error

Question 107 The MOST significant characteristic of leadership in determining the value realized by an ERP system is: A. competence B. vision C. intelligence D. analytical strength

Question 108 The MOST significant cost associated with RFID is: A. passive RFID tags B. employee training C. infrastructure changes D. active RFID tags

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Question 109 The MOST significant reason for the initial widespread failures of ebusinesses was: A. immature technology infrastructure B. poor business plan or strategy C. economic environment D. over investment

Question 110 The objective function of an APO system is MOST likely to be defined as: A. minimize total cost while achieving a defined customer service level B. maximize revenue C. maximize inventory D. minimize transportation cost

Question 111 The output of the IMS is a key input for which of the following execution systems? A. WMS B. TMS C. VMI D. EDI

Question 112 The primary goal of business intelligence tools is: A. improved decision making B. suggesting answers to difficult business issues C. supply chain optimization D. increased data visibility

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Question 113 The processes setup to capture and transmit data need to be all of the following EXCEPT: A. global B. cost-effective C. frequent enough to be useful D. validated

Question 114 The technology used to store all information typically printed and physically attached to a product is: A. bar coding B. WMS C. EDI D. Auto ID

Question 115 The three largest companies providing ERP software are all of the following EXCEPT: A. SAP B. Oracle C. Microsoft D. Sybase

Question 116 Transportation management systems do all of the following EXCEPT: A. optimize shipping routes B. increase the efficiency of the transportation network C. direct picking D. carrier collaboration

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Question 117 Virtual supply chains strengthen relationships, improve performance and increase trust amongst stakeholders by: A. sharing real-time information B. maintaining separate objectives C. separating operations and protecting intellectual property D. implementing aggressive cost cutting initiatives

Question 118 Warehouse management systems (WMS): A. calculate optimal safety stock levels B. optimize the material flow at storage locations C. optimize the transportation network D. maximize trucking capacity

Question 119 Web and database access systems are MOST likely to use the following architecture: A. client / server architecture B. object oriented C. local D. wireless

Question 120 What information is LEAST likely to be included in strategic IT tools? A. noncustomer demographics B. economic trends C. year end inventory levels D. technological advancements and anticipated changes

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Question 121 What is MOST likely to increase if an off-the-shelf ERP system lacks at least 80% of your required functionality? A. training costs B. consulting costs C. license costs D. hardware costs

Question 122 What is the reason that MRP software was one of the first developed for A. MRP often requires heavy calculation B. There is a lot of uncertainty in the MRP process C. MRP is a very complicated concept D. MRP is the fundamental process that drives other plans

Question 123 What portal type is designed to leverage procurement economies of scale across industries? A. horizontal B. web C. flat D. vertical

Question 124 What set of methods would MOST likely be utilized to integrate a legacy business system with a SAP transactional ERP system? A. EDI B. EAI C. EDT D. EFT

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Question 125 What system is focused on increasing product data visibility? A. TMS B. WMS C. PCDM D. IMS

Question 126 What type of supply chain IT system MOST likely has the broadest user base? A. strategic B. operational C. tactical D. execution

Question 127 When expanding supply chain data visibility, the LEAST important characteristic of the data is: A. accuracy B. timeliness C. increased visibility D. comprehensiveness

Question 128 When selecting an ERP system, it is important to ensure the business model implicit in the system is: A. based on the industry standard B. robust C. aligned with your business model D. scalable

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Question 129 Which level of management typically utilize strategic IT tools: A. middle B. executive C. operational D. tactical

Question 130 Which of the following contains all product information and is attached to the side of the product? A. bar code B. stock card C. product description D. item data

Question 131 Which of the following is LEAST likely to be a goal of an e-business strategy: A. collaboration B. customer integration C. supplier integration D. transition to a push model

Question 132 Which of the following is LEAST likely to be considered a tactical IT tool? A. transportation planning system B. ERP planning module C. procurement software D. customer segmentation software

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Question 133 Which of the following is MOST likely to reduce following an e-business launch: A. number of customers B. order size C. returns D. supply network complexity

Question 134 Which of the following is the application hosting software responsible for hardware interfacing and resource management? A. middleware B. web service C. relational database D. operating system

Question 135 Which of the following is the LEAST significant issue with legacy ERP systems? A. inflexibility B. manual processes C. functionality gaps D. user training

Question 136 Which of the following MOST likely increases with an e-business initiative: A. inventory turns B. customer service C. product returns D. order size

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Question 137 Which of the following supply chains is LEAST likely to benefit from RFID? A. high volume, global supply chain B. low volume, local supply chain C. low volume, global supply chain D. high volume, local supply chain

Question 138 Which of the following, if properly thought-out and included in the overall IT strategy, has the MOST significant impact of the types of supply chain planning and execution systems that can be implemented? A. operating system B. database structure C. application suite D. hardware

Question 139 Which SCM system often includes a portal to online market places? A. manufacturing B. sourcing and procurement C. advance planning and scheduling D. inventory management

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Section G: Influencing and Prioritizing Demand Question 1 A contact channel strategy needs to be evaluated to ensure: A. that it is fulfilling the needs of both the customer and the business B. that it is meeting specific targets of customer satisfaction and product sales C. that it is flexible enough to change based on market needs D. that it is achieving both identified and unidentified goals

Question 2 A product designed with universality strategy may have all of the following drawbacks EXCEPT: A. less customer loyalty B. shorter product life cycle C. less suited to a market than a specialized product D. lengthened product life cycle

Question 3 All of the following are varieties of design collaboration EXCEPT: A. Design for Engineering B. Design for Manufacture C. Design for Logistics D. Design for Environment

Question 4 An agreed benefit of design for reverse logistics / environment is: A. customer loyalty B. longer product life cycles C. lower tax liability D. higher product demand

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Question 5 Completeness of an effective contact channel strategy in CRM refers to: A. the business offering a product with all the options B. the customer receiving a product that answers most needs C. the customer getting accurate and current answers D. the business presenting the customer with multiple variants

Question 6 Control and consistency is determined by the ability of a contact channel strategy to: A. communicate to the customer the corporations values B. deliver on promises made C. manage unforeseen events with the same performance D. provide the same treatment to all customers

Question 7 From the customers point of view, a secure and error free contact channel strategy will have all of the following characteristics EXCEPT: A. all electronic transactions are encrypted B. all orders are accurately taken C. all products arrive as specified and as requested D. all channels are accessible

Question 8 Pricing based on competition, perceived value and brand identity is: A. a sales decision B. a reactive decision C. a strategic decision D. a marketing decision

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Question 9 Promotion includes all of the following activities EXCEPT: A. creation of brand image B. segmentation of audience C. market analysis D. competitor check

Question 10 Speed as a characteristic of an effective contact channel strategy is measured by: A. the rate at which a business delivers the product B. the pace of product innovations C. the time to respond to customer inquiries D. the promptness of any reaction to product demands

Question 11 The characteristic of an effective contact channel strategy that means it is easily contacted by customers is: A. approachable B. accessible C. reachable D. available

Question 12 The involvement of manufacturing engineers in the design process allows for the: A. elimination of unnecessary production steps B. planning of production schedules C. amending of unrealistic assumptions D. creation of products options

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Question 13 The planning and design of new products that can use existing parts and can be easily upgraded in the future is called: A. component commonality B. integral design C. modular design D. interchangeability design

Question 14 What is one benefit of a design for manufacture (DFM) approach? A. manufacturing experts can identify unrealistic production assumptions early in the process B. the final product is typically more innovative C. lower production costs are achieved D. suppliers can submit their quotations early in the process

Question 15 Which is a common tradeoff when using a component commonality strategy? A. copying of design becomes easier B. reduction in quality C. increase in cost of manufacture of the common part D. reduction in machine utilization

Question 16 Which of the following statements best describes a contact channel strategy that is considered flexible? A. Customers are accommodated despite unreasonable expectations. B. Customers are assisted despite being deemed low level. C. Customers can be assured of prompt service even beyond limitations such as office hours. D. Customers can reach the business despite any disadvantages or barriers such as language or technology.

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Question 17 Which type of supply chain design is defined by early supplier involvement? A. concurrent engineering B. over-the-wall design C. design to scale D. make to order

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Section H: Customer Relationship Management (CRM) Question 1 A customer data warehouse (CDW) contains information about: A. an organization's customers, products and markets B. various product price points C. customer account balances D. competition's promotions and pricing

Question 2 A firm that has a customer first marketing philosophy practices: A. CRM B. TPM C. SRM D. CTM

Question 3 A specific implication of value-added products for a CRM program is: A. product design should be innovative or at least par with competition B. promotion and distribution must be customized C. marketing of the product will be targeted towards customers with the biggest potential value D. sales methods will be measured against competition

Question 4 Account management as a CRM technology tool is tasked to handle all of the following EXCEPT: A. customer inquiries B. problem solving C. channel partner management D. help line

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Question 5 All of the following are stated filters/factors that influence the shape of a CRM program EXCEPT: A. targeted customer needs B. preferred channels of communication C. historical contribution of the customers D. position in the product life cycle

Question 6 CRM activity to win back customers who have discontinued service should be implemented during which time frame? A. within the first 7 days B. within the first 15 days C. within the first month D. within the first 45 days

Question 7 CRM stresses that the firm should: A. achieve mutual profitability B. integrate customer friendly practices C. put the customer first D. retool business processes towards customer satisfaction

Question 8 Customer care activities that are launched during the maturity stage of the product life cycle should focus on: A. brand image B. customer feedback gathering C. attracting new customers D. enticing competitor customer switching

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Question 9 Each of the following are benefits of implementing a customer data warehouse (CDW), EXCEPT: A. strategic marketing B. channel management C. one-to-one marketing D. increased customer base

Question 10 How does CRM benefit the promotion efforts of an organization? A. customization of the offer is possible B. multiple offers can be delivered quickly C. profit is increased D. promotions are delivered faster

Question 11 In CRM, the service channel technology supports: A. delivery of products to customers B. quicker response to customer problems C. determination of the impact of customer service programs D. activities that measure effectiveness of promotions

Question 12 On the decline stage of the product life cycle, customer care will now have to promote: A. newer products in the pipeline B. lifetime customer development C. replacement parts availability D. brand loyalty to prolong profitability

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Question 13 One difference of CRM segmentation versus historical segmentation is: A. segments are defined based on actual buying behaviors B. segments are based on preconceptions of certain groups C. segments based on research on small representative groups D. segments based on age groups and buying power

Question 14 The Chief Customer Officer of some firms is responsible for: A. being the voice of customers at the regular CRM development meeting B. becoming the initial touch point between the business and customers C. identifying key customers and helping them become life long customers D. integrating and leveraging customer information across the organization

Question 15 The focus of CRM during the introduction stage of the product life cycle is on: A. the customer feedback program B. the product distribution program C. the promotional program D. the customer awareness program

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Question 16 The growth stage of the product life cycle is characterized by rapid revenue growth. At this time it is best for a CRM focused business to: A. analyze what the competition has done or will do in reaction to the success to minimize the risk of future surprises B. increase distribution of the product to maximize revenue C. minimize promotional costs and let word-of-mouth take over the role of promotion D. commit increased resources to both satisfying the markets needs and gathering / analyzing data in an ongoing manner

Question 17 The opposite of loyal customers are: A. prospective customers B. potential customers C. win-back customers D. untapped customers

Question 18 The significant difference between EMA and traditional marketing campaign processes A. the use of computers B. the use of software applications C the use of the Internet D. the use of IVR programs

Question 19 To win back a customer, communications have to be made as soon as possible, ideally: A. within 1 week B. within 1 month C. within 6 months D. within 12 months

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Question 20 What is the first stage in the product life cycle? A. introduction B. development C. maturity D. growth

Question 21 When developing a CRM strategy for reaching customers via technological channels, businesses must: A. first check the exact technological requirements needed B. carefully test how receptive their own customers are to this contact point C. analyze the best technological channel available to them D. ask their customers to first participate in test runs

Question 22 Which is not a specific loyalty program design consideration? A. customer behavior B. customer preference C. positioning D. communication

Question 23 Which is not a typical CRM data integration point? A. online sales B. call center C. order provisioning system D. online forums

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Question 24 Which of the following best describes vulnerable customers? A. customers that are hard to satisfy B. customers about to stop purchasing C. customers that have reduced ability to pay D. customers that are difficult to reach

Question 25 Which of the following is a way CRM technology is used in a typical organization? A. distribution resource planning B. sales and marketing C. supplier management D. operations planning

Question 26 Which of the following is true about pricing in a CRM environment? A. price is another way to differentiate products B. price and product are essentially disconnected C. price is base on manufacturing cost plus an acceptable margin D. price does not have to deliver profit

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Section I: Supplier Relationship Management (SRM) Question 1 A key benefit of an ITX is: A. reduced supplier risk B. reduced cost compared to other exchanges C. increased product differentiation D. collaboration

Question 2 A proactive reason for SRM is that organizations learn from each other. This is best described as: A. building organizational skills B. strengthening operations C. increasing organizational expertise D. developing common training

Question 3 A short term alliance between independent organizations in a potentially long term relationship is a: A. virtual organization B. strategic partnership C. tactical joint venture D. deliberate enterprise

Question 4 A successful business alliance that involves an alliance partner that is also a competitors in a different field requires: A. multifaceted relationship management B. closed business systems C. controlled communication D. legal agreements

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Question 5 All of the following activities are typically part of the full implementation stage of developing a supplier alliance EXCEPT: A. supplier identification B. problem solving meetings C. alliance pulse checks D. regular business processes

Question 6 All of the following are core electronic business system functions EXCEPT: A. procurement history B. accounting C. performance measurement D. product search

Question 7 All of the following SRM functions can be outsourced EXCEPT: A. customer service accountability B. sourcing C. contract deployment D. compliance management

Question 8 An auction characterized by dynamic pricing based on buyer and seller offers is a: A. Dutch auction B. forward auction C. reverse auction D. stock-market style auction

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Question 9 An auction with multiple buyers and one seller for one item is a: A. reverse auction B. Dutch auction C. forward auction D. demand management auction

Question 10 An early step in building a success alliance that promotes mutual profitability is: A. establishing ground rules B. appointing a dedicated alliance manager C. negotiating a win/win deal D. initiating collaboration

Question 11 An exchange that connects buyers and sellers within an industry is a: A. horizontal trade exchange B. hybrid trade exchange C. independent trade exchange D. vertical trade exchange

Question 12 Based on the APICS definition of SRM, a firm will implement this philosophy with: A. all tier 1 type suppliers B. a selected group of suppliers C. all suppliers D. a few suppliers who are deemed indispensable

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Question 13 Commodities are MOST likely to be traded in a: A. horizontal trade exchange B. vertical trade exchange C. private trade exchange D. hybrid trade exchange

Question 14 Each of the following is an example of a strategic alliance, EXCEPT: A. supplier-managed inventory B. distributor integration C. 3PLs D. trade organization

Question 15 If a sourcing relationship has the potential to jeopardize attaining business objectives, it is best for the purchasing company to: A. find alternative suppliers B. decrease the dependency on that particular supplier C. develop a closer relationship with that supplier D. increase the stock ordered to counteract uncertainty

Question 16 Intense collaboration and trust should be reserved for: A. all partners in the supply chain B. only a select few suppliers C. highest volume partners D. highest value add partners

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Question 17 Private trade exchanges are often created by: A. a consortium of small, similar businesses B. market-dominant companies C. an independent service provider D. trade organizations

Question 18 SRM allows for increased visibility in the supply chain. This additional information is least likely used for: A. contingency planning B. lessening bullwhip effect C. negotiating pricing D. faster response to problems

Question 19 Strategic alliances between organizations can most help improve operations by: A. eliminating redundant job positions B. increasing cross-training of personnel C. lowering system costs D. increasing the shared information

Question 20 Strategic growth is available through alliances for: A. companies looking for new opportunities B. small companies that are facing closure C. medium companies facing market stagnation D. large companies focusing on having the dominant position

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Question 21 Technology has played all of the following roles in SRM, EXCEPT: A. Systems can show current status of operations B. Suppliers can communicated with customers in real time C. Transactional processes can be automated D. Security enhancements now effectively segregate enterprise business processes

Question 22 The goal of SRM is: A. the evolution of the entire supply chain B. achieving more with a fewer number of suppliers C. to focus less efficient suppliers towards business goals D. mutual profitability and meeting marketplace needs

Question 23 The least common reason for the need to commitment to change in a supplier relationship is: A. shorter product life B. high cost of inventory C. large profit margins D. fast changing environment

Question 24 The role of promoting relationships between partners and building joint initiatives belongs to the: A. relationship manager B. alliance manager C. partnership manager D. liaison manager

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Question 25 Traditional purchasing focuses on purchase price. Strategic sourcing focuses on: A. landed cost B. purchase price and delivery cost C. true cost D. total cost

Question 26 What is the first step in certifying a supplier? A. select suppliers B. evaluate alternative suppliers C. define requirements, process and roles D. conduct measurements

Question 27 What is the first step to successful alliances? A. select proper partners B. establish ground rules C. align internally D. appoint a dedicated alliance manager

Question 28 When building successful alliances, after business processes are established to routinely determine the health and performance of the alliance, it is important for the alliance to: A. prepare of change so the alliance can make the necessary adaptations in the B. determine additional participants that need to be included in the alliance C. plan for changes in the supplier environment D. prepare for shorter product life cycles

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Question 29 When establishing successful supplier relationships, typically it is valuable to perform what prior to a full implementation? A. supplier qualification assessment B. risk assessment C. alliance pulse check D. pilot program

Question 30 When selection proper partners, which is not a specific characteristic that should be evaluated? A. operating style B. business practices C. historical performance D. corporate culture

Question 31 Which is most true about strategic alliances? A. Alliances that dominate the marketplace will intensify competition. B. Company core competencies evolve through alliances. C. Alliances can decrease economic effect of competition. D. Companies with certain types of supply situations may be better off forgoing alliances.

Question 32 Which is not a clear benefit of SRM technologies? A. reduced number of sub par materials supplied B. reduced cycle time on sourcing products C. ease of standardizing purchasing decisions D. ease of selecting suppliers

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Question 33 Which is not a specific source of data for supplier rating systems? A. conformation rates B. time line performance C. amount of conditionally accepted materials D. number of quality investigations

Question 34 Which is not part of the suite of SRM services? A. supplier search B. accounting C. financing/billing D. strategic sourcing

Question 35 Which of the following steps in building a successful alliance entails developing the business processes for how the participants will work together? A. establish ground rules B. encourage collaboration C. align internally D. conduct pulse checks

Question 36 Workflow management in the context of internet-enabled SRM toolsets falls under: A. SRM processing B. SRM services C. SRM technology and external interfaces D. EBS backbone

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Section J: Inventory Planning and Control Question 1 An inventory item designated as class B will typically make up what percent of total inventory? A. 0.2 B. 0.25 C. 0.3 D. 0.35

Question 2 Periodic counting, done typically once a year, is also called: A. warehouse inventory B. annual inventory C. physical counting D. physical inventory

Question 3 The analysis used to determine the cost optimal quantity to order is called: A. Lot size B. Fixed order quantity C. Economic Order Quantity D. Minimum order

Question 4 The fixed order quantity strategy is applicable to which situation? A. large, multiple customer demand B. the need to fill shipping containers to attain discounts C. stable, predictable customer demand D. required levels of stock to avoid penalties

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Question 5 The replenishment strategy where a firm allows inventory to drop to a specified minimum quantity before replenishing is called: A. production lumping B. order batching C. max-min strategy D. economies of scale advantage

Question 6 Class C inventory items tend to be characterized by: A. the largest number of items and the lowest aggregated inventory value B. the lowest number of items and the lowest aggregate inventory value C. the highest aggregate inventory value and the largest number of items D. the highest aggregate inventory value and the lowest number of items

Question 7 Finished good demand from an end customer is considered: A. dependent demand B. firm demand C. fixed orders D. independent demand

Question 8 The intersection of the inventory carrying cost curve and the order cost curve is: A. the minimum order quantity B. the maximum order quantity C. the economic order quantity D. the recommended order quantity

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Question 9 All other things being equal, an increase in order frequency A. increases inventory carrying cost B. lowers the order cost C. increases order cost D. increases total supply chain inventory

Question 10 All other things being equal, lowering the order quantity and increasing the order frequency: A. increases inventory carrying cost B. lowers inventory carrying cost C. increases total inventory value D. increases total inventory units

Question 11 All other things being equal, in a Periodic Review System for replenishment ordering, a decrease in the replenishment lead-time will result in: A. increased replenishment quantity B. increased demand variability C. reduced replenishment quantity D. increased supply variability

Question 12 In a Min-Max system for replenishment ordering, if the minimum level is 100 units, the current inventory is 50 units and the maximum level is 500 units, what is the replenishment order quantity? A. 650 units B. 400 units C. 325 units D. 450 units

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Question 13 Assuming a coverage safety stock strategy is implemented with a target of 75 days and forecast demand of 100 units, 400 units and 30 units over the next three 30 day periods, what is the target unit inventory level? A. 515 units B. 442 units C. 250 units D. 625 units

Question 14 If manufacturing success rates decrease yet forecast error and replenishment lead time remain unchanged, A. total inventory decreases and customer service levels are unchanged B. total inventory increases yet customer service levels increase C. total inventory increases in order to maintain customer service levels D. total inventory is unchanged and customer service levels increase

Question 15 As raw materials are converted into intermediates and finished goods inventory value typically: A. increases B. decreases C. remains unchanged D. decreases significantly

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Module 3: Implementation and Operations

Section A: Supply Chain Dynamics Question 1 A longer lead time will lead to: A. a greater magnification of the bullwhip effect B. a greater chance to complete the order C. a greater effect on the safety stock D. a greater possibility of stock outs

Question 2 Avoiding multiple forecasts as a countermeasure to the bullwhip effect is accomplished by all of the following EXCEPT: A. supplier data made available to customers B. demand data made available by retailer C. electronic data interchange D. vendor managed inventory

Question 3 Demand forecast error, lead times, order batching and rationing are 4 of 5 known causes of the bullwhip effect. The fifth is: A. competitor product innovations B. increased spending of customers C. price fluctuations and promotions D. decrease in supplier provisions

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Question 4 Each of the terms below is a source of demand variability, EXCEPT: A. competition B. seasonality C. life cycle trends D. manufacturing delays

Question 5 Short gaming occurs when: A. manufacturers partially fill orders B. manufactures fill some orders while delaying others C. customers decreasing demand of non-rationed products D. customers inflate orders in anticipation of manufacturer supply rationing

Question 6 The bullwhip effect travels from: A. customer to supplier B. tier 2 customer to producer C. tier 2 supplier to producer D. supplier to customer

Question 7 What is one cause of the bullwhip effect? A. lead times B. seasonality C. weather D. quality control

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Question 8 Increasing the distance between suppliers and customers tends to: A. decreases the bullwhip effect B. increase the bullwhip effect C. has no impact on the bullwhip effect D. reduces in-transit inventory

Question 9 Unforecasted pricing promotions can: A. reduce demand variability B. increase supply variability C. increase the bullwhip effect D. decrease the bullwhip effect

Question 10 In periods of short supply, it is not uncommon for customers to: A. constrain orders submitted to the finished good packaging facility B. artificially increase orders C. leave orders unchanged D. submit orders based on historic sales rates

Question 11 In periods of short supply, it is often beneficial to plan replenishments: A. based on historic demand B. based on current orders C. based on elevated orders D. based on customer demands

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Question 12 A process to ensure alignment of demand and supply given existing financial and supply constraints is: A. S&OP B. supply chain planning C. MPS D. MRP II

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Section B: Managing Supply from Internal Sources Question 1 A challenge to the supply-demand assemble-to-order strategy is: A. the need for a reasonably skilled labor force B. short production lead times C. static customer tastes D. suppliers with very specific demands

Question 2 A master production schedule takes a monthly bucketed plan and determines the weekly production schedule of: A. product families B. individual products C. specialized parts D. most common parts

Question 3 A slushy zone is marked off by a: A. demand time fence B. schedule time fence C. production time fence D. planning time fence

Question 4 A tradeoff of a level production strategy is: A. inventory builds during periods of low demand B. last minute hiring of temps C. increased machine downtime D. high cost of maintaining constant raw materials supply

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Question 5 All of the following are inputs needed in MRP EXCEPT: A. inventory status B. operation schedule C. bills of materials D. planning factors

Question 6 All of the following are sales and marketing related contributors to the S&OP EXCEPT: A. sales forecasts B. sales strategy C. market analysis D. life cycle strategy

Question 7 Capacity in supply chain context is all about: A. what can be manufactured at 100% machine efficiency B. what can be accomplished by employing all the resources in the network C. what can be produced during a given time period D. what can be planned to be launched given enough resources and time

Question 8 Components that go into manufacturing finished products follow a delivery schedule based on: A. master production schedule B. distribution resources plan C. factory operation schedule D. material requirements planning

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Question 9 Counting backwards from a due date accommodating lead time is: A. compensating B. offsetting C. equalizing D. balancing

Question 10 Efficiency can be calculated by: A. hours worked / hours downtime B. actual output / target output * 100 C. standard hours worked / hour worked * 100 D. total hours used for production / total hours used for non production (maintenance, tool changes, shift changes)

Question 11 In measuring available capacity as output for a given period, the following inputs are needed, EXCEPT: A. available time B. utilization C. efficiency D. cycle time

Question 12 MRP II incorporates which specific function not available in previous MRP programs? A. financials B. activities planning C. inventory D. order status

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Question 13 Nervousness in the supply chain occurs when: A. there are too much feedback from elements B. there is apprehension that delivery times will not be met C. there are frantic adjustments to the MRP D. there is concern about reception to a NPI

Question 14 Production scheduling and transportation routing occurs at the following level: A. operational planning B. strategic network design C. supply chain master planning D. operational execution

Question 15 Rough-cut capacity planning is performed against the: A. master production plan B. strategic plan C. master production schedule D. demand forecast

Question 16 S&OP is best conducted: A. once per year B. once per month C. once per week D. daily

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Question 17 Tactical information is used to develop demand, production and distribution plans aimed at: A. achieving operational objectives B. achieving execution objectives C. achieving process improvements D. achieving strategic objectives

Question 18 The best supply-demand strategy for a product with stable demand is: A. make-to-order B. assemble-to-order C. make-to-stock D. assemble-to-specification

Question 19 The cost of disrupting the production of another product to fulfill an order is considered: A. capable-to-promise B. available-to-promise C. opportunity cost D. profitable-to-promise

Question 20 The general KPI for capacity is: A. neither too much nor too little B. correct output delivered on time C. high machine utilization percentage D. high overall equipment efficiency

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Question 21 The gross requirement in a DRP system is: A. sales forecast B. production volume C. total capacity D. number of distribution centers

Question 22 The longest-term type of capacity planning is: A. rough-cut capacity planning B. resource requirements planning C. capacity requirements planning D. production activity control

Question 23 The MOST significant input to the MPS in determining what to make is the: A. production plan B. long range forecast C. rough-cut capacity plan D. material requirements plan

Question 24 The period of time for which plans are made is called: A. long-term view B. forecasting horizon C. planning horizon D. lead time

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Question 25 The small bucket or no bucket system is one way to reconcile JIT and MRP. The second is: A. stabilized flow B. Kanban system C. back flushing process D. balanced flow

Question 26 Transportation shipment tracking occurs at the following level: A. strategic network design B. supply chain master planning C. operational execution D. operational planning

Question 27 Utilization is calculated by: A. hours worked / available hours * 100 B. hours worked - hours downtime C. hours available / hours worked * 100 D. hours with production - hours without production

Question 28 What is one of the biggest challenges to Sales & Operations Planning (S&OP)? A. supply chain partners refuse to collaborate and make decisions within their own silos B. sales and marketing plans differ from manufacturing C. plans are hard to implement without IT support D. the resulting plans are too complicated to implement

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Question 29 What is the key next step after the S&OP? A. Creation of the distribution plan B. Creation of the master production schedule C. Development of the marketing plan D. Continuous improvement review exercise

Question 30 What is the plan that verifies if production targets are feasible? A. master production schedule B. rough-cut capacity planning C. sales forecast D. purchasing plan

Question 31 Which is not a contribution made by the sales and marketing side to the S&OP? A. time phased forecasts B. selection of target markets C. determination of territories D. inventory levels

Question 32 Which is one of Production Activity Controls main objectives? A. maximize work in process B. limit resources waste C. reduce worker downtime D. maintain customer service

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Question 33 Which of the following provides a complete list of components required for production of a product? A. sales forecast B. S&OP C. bill of materials D. MRP

Question 34 Which of the following should resource requirements planning be involved in: A. materials B. output C. quarterly workforce planning D. inventory

Question 35 Which serves as a contract between sales and operations? A. S&OP B. Production Plan C. MPS D. MRP

Question 36 Within a demand time fence, the projected available balance uses: A. forecasted amount B. customer orders C. the lower value between forecast and customer order D. the higher value between forecast and customer order

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Section C: Managing Supply from External Sources Question 1 Which is not part of an external data network? A. resellers B. suppliers C. external customers D. channel support partners

Question 2 Sharing of information with key suppliers enables all of the following EXCEPT: A. better supply and demand matching B. increased inventory levels C. lowered costs D. improved product availability

Question 3 All of the following are key areas of the balanced scorecard EXCEPT: A. business process perspective B. customer perspective C. financial perspective D. competitive perspective

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Section D: Implementation of Demand Plans Question 1 A hurdle to the make-to-order supply-demand strategy is the issue of: A. complex customer orders B. low product demand C. high machine utilization time D. short delivery lead time requirements

Question 2 All of the following tasks are performed by the supplier in a VMI arrangement EXCEPT: A. determine how inventory is stored B. inventory replenishment based on customer demand C. track and report inventory levels D. accounts receivable

Question 3 Available-to-Promise provides: A. support to move from a push strategy to a pull strategy B. capacity leveling C. guaranteed delivery dates D. quantity and delivery dates in response to customer inquires

Question 4 Continuous replenishments goal is: A. no stock outs B. a continuous reduction in inventory levels as forecast error reduces C. to maintain a constant amount of supply being delivered D. to increase product off-take

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Question 5 Inventory on hand plus scheduled receipts less booked orders defines: A. first period available-to-promise B. make-to-order C. fill rate D. stock out probability

Question 6 Suppliers often use point of sale data from retailers to: A. schedule production and determine inventory levels B. develop joint forecasts with the retailer C. adjust safety stocks D. determine reorder points

Question 7 The term used to represent the end products uncommitted inventory that is available to ship to customers is: A. available-to-distribute B. available-to-release C. available-to-promise D. available-to-order

Question 8 What is the key benefit of an assemble-to-order approach? A. allows mass customization B. reduces labor costs C. reduces stock outs D. improves product reliability

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Question 9 Which is not a measure of VMI success? A. reduction or elimination of bullwhip effect B. greater percentage of on time deliveries to the retailer C. transfer of inventory from supplier to customers D. reduction of lead times for deliveries

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Section E: Continuous Improvement Question 1 A Pareto diagram can be applied to: A. any feedback from customers B. any measurable data C. any deviation from design D. any quality problems

Question 2 All of the following are Lean supply chain objectives EXCEPT: A. develop systems to produce perfect results B. reduce number of jobs C. eliminate almost all inventory D. increase inspections to detect defects earlier

Question 3 An element of six-sigma is process. The goal of this element is: A. zero errors always B. low number of errors with consistent performance C. acceptable number of errors D. consistent results to prove reliability

Question 4 Continuous process improvement begins all of the following EXCEPT: A. fixing the budget B. finding the weakest process C. developing the training plan D. implementing corrective actions

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Question 5 It is most necessary for those initiating quality improvement: A. to be able to focus on local activities B. to be able to communicate with management and workers alike C. to be able to set immediate, small step goals D. to be able to see end to end supply chain processes

Question 6 Kaizen is the Japanese term that signifies: A. continuous improvement B. high quality C. reducing risk D. operational excellence

Question 7 Process mapping helps: A. an improvement team identify every bottleneck in the process B. an improvement team identify the areas that need minimal support C. an improvement team identify every significant aspect of an inefficient process D. an improvement team identify the key areas and players who can contribute the most

Question 8 Six sigma training starts with green belt and ends with master black belt. How many levels are in between? A. 2 B. 3 C. 1 D. 0

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Question 9 The best definition of continuous improvement is: A. a continuous effort to improve processes to eliminate waste B. a continuous improvement process to eliminate problems C. a never-ending effort to expose and eliminate root causes of problems D. a never-ending effort to expose and eliminate root causes of waste

Question 10 The definition of root cause is: A. the original problem that leads to process inefficiency B. the original problem that causes the most harm C. the original problem that leads to an unacceptable rate of defects D. the original problem that causes other problems

Question 11 The goal of workflow management systems is: A. to provide a framework for customer focused activities such as customer service and order management B. to connect customer information to the specific customer service point at the right time C. automation of procedures D. integration of data from different transaction points to anticipate customer needs

Question 12 Value stream mapping is: A. a theoretical method tool B. a paper and pencil tool C. a virtual tool D. an advanced technology tool

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Question 13 What defects are measured when identifying the pattern during process analysis? A. defect according to the suppliers specs B. defect according to the quality benchmark C. defect according to the design plan D. defects according to the customer

Question 14 What is the 80-20 rule? A. 80% of problems can be attributed to 20% of possible causes B. 80% of problems happen at 20% of processes C. 80% of solutions come at the first 20% of ideas D. 80% of solutions can be done by 20% of the personnel

Question 15 Which is not a benefit of Just-in-time? A. inventory reduction B. multi-skilled labor force C. manufacturing cycle reduction D. improved vendor relationships

Question 16 Which of the following is a specific reason for adopting continuous improvement? A. SCM relies on flexibility. B. SCM is goal oriented. C. SCM is process oriented. D. SCM depends on adaptability.

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Answers Module 1: Fundamentals of Supply Chain Management

Section A: Supply Chain Management Concepts 1. A 2. C 3. A 4. A 5. B 6. B 7. D 8. A 9. C 10. D 11. A 12. A 13. D 14. B 15. D 16. D 17. B 18. A 19. D

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20. B 21. B 22. D 23. A 24. B 25. D 26. A 27. D 28. B 29. A 30. D 31. B 32. B 33. A 34. A 35. C 36. C 37. D 38. B 39. B 40. C 41. C 42. C 43. A 44. A 45. A

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46. C 47. B 48. A 49. A 50. A 51. A 52. D 53. D 54. A 55. A

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Section B: Supply Chain Alignment with Business Strategy 1. C 2. B 3. A 4. D 5. D 6. C 7. D 8. D 9. C 10. B 11. C 12. C 13. C 14. D 15. D 16. B 17. B 18. B 19. B 20. A 21. D 22. B 23. D 24. D 25. C

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26. B 27. D 28. A 29. C 30. D 31. A 32. C 33. D 34. C 35. C 36. B 37. A 38. D

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Section C: Supply Chain Design and Improvement Considerations 1. B 2. C 3. D 4. D 5. B 6. A 7. A 8. C 9. C 10. A 11. B

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Section D: Inventory Management 1. B 2. D 3. B 4. A 5. C 6. C 7. B 8. C 9. B 10. C 11. A 12. C 13. A 14. C 15. D 16. C 17. D 18. C 19. A 20. C 21. A 22. C 23. D 24. C 25. D

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Section E: Logistics Fundamentals 1. D 2. D 3. D 4. C 5. C 6. D 7. B 8. A 9. C 10. A

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Section F: Market Segmentation 1. C 2. A 3. B 4. B 5. A 6. D 7. B 8. D 9. A 10. C 11. D 12. A 13. D

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Section G: Demand Planning 1. B 2. A 3. C 4. D 5. A 6. B 7. D 8. A 9. A 10. C 11. D 12. C 13. B 14. A 15. D 16. B 17. A 18. D 19. B 20. B 21. A

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Section H: Customer Relationship Management (CRM) Concepts 1. A 2. B 3. B 4. C

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Section I: Supply Management Concepts 1. D 2. C 3. B 4. C 5. B 6. D 7. D 8. D 9. C 10. D 11. A 12. B 13. A 14. A

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Module 2: Supply Chain Strategy, Design and Compliance Section A: Sustainability 1. A 2. B 3. B 4. B 5. B

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Section B: Risk Management 1. D 2. C 3. B 4. C 5. C 6. B 7. C 8. B

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Section C: Globalization 1. A 2. C 3. D 4. C 5. D 6. B 7. C 8. A 9. A 10. B

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Section D: Logistics 1. A 2. B 3. D 4. C 5. D 6. B 7. B 8. D 9. B 10. B 11. D 12. C 13. A 14. B 15. D 16. D 17. A 18. C 19. D 20. C 21. D 22. A 23. D 24. B 25. C

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26. C 27. D 28. D 29. B 30. D 31. B 32. D 33. A 34. A 35. C 36. A 37. B 38. A 39. C 40. C 41. A 42. A 43. D 44. A 45. C

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Section E: Managing the Supply Chain 1. C 2. A 3. C 4. B 5. D 6. A 7. A 8. B 9. B 10. A 11. D 12. C

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Section F: Technology 1. A 2. D 3. C 4. B 5. A 6. C 7. A 8. C 9. D 10. A 11. B 12. D 13. A 14. D 15. B 16. C 17. D 18. A 19. D 20. B 21. B 22. A 23. A 24. D 25. C

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26. C 27. A 28. D 29. B 30. B 31. D 32. A 33. A 34. B 35. D 36. A 37. B 38. B 39. D 40. C 41. D 42. D 43. A 44. C 45. A 46. A 47. B 48. C 49. A 50. A 51. C

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52. C 53. A 54. B 55. B 56. D 57. B 58. C 59. A 60. D 61. C 62. B 63. A 64. B 65. D 66. D 67. D 68. D 69. C 70. A 71. B 72. A 73. D 74. B 75. C 76. B 77. D

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78. A 79. A 80. A 81. D 82. B 83. A 84. C 85. A 86. D 87. A 88. B 89. B 90. D 91. A 92. B 93. A 94. D 95. D 96. C 97. D 98. B 99.

D

100.

B

101.

C

102.

D

103. B

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104.

D

105.

A

106.

B

107.

B

108.

C

109.

B

110.

A

111.

A

112.

A

113.

A

114.

A

115.

D

116.

C

117.

A

118.

B

119.

A

120.

C

121.

B

122.

A

123.

A

124.

B

125.

C

126.

B

127.

D

128.

C

129. B

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130.

A

131.

D

132.

D

133.

B

134.

D

135.

D

136.

C

137.

B

138.

B

139. B

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Section G: Influencing and Prioritizing Demand 1. A 2. D 3. A 4. A 5. C 6. A 7. D 8. C 9. D 10. C 11. B 12. C 13. C 14. A 15. B 16. D 17. A

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Section H: Customer Relationship Management (CRM) 1. A 2. A 3. B 4. C 5. C 6. A 7. C 8. A 9. D 10. A 11. A 12. B 13. A 14. D 15. C 16. D 17. C 18. C 19. A 20. B 21. B 22. B 23. D 24. B 25. B

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26. A

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Section I: Supplier Relationship Management (SRM) 1. B 2. A 3. A 4. A 5. A 6. D 7. A 8. D 9. C 10. C 11. D 12. B 13. A 14. D 15. C 16. D 17. B 18. C 19. C 20. A 21. D 22. D 23. C 24. B 25. C

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26. C 27. C 28. A 29. D 30. C 31. C 32. A 33. D 34. B 35. A 36. C

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Section J: Inventory Planning and Control 1. C 2. D 3. C 4. C 5. B 6. A 7. D 8. C 9. C 10. B 11. C 12. D 13. A 14. C 15. A

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Module 3: Implementation and Operations Section A: Supply Chain Dynamics 1. A 2. A 3. C 4. D 5. D 6. A 7. A 8. B 9. C 10. B 11. A 12. A

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Section B: Managing Supply from Internal Sources 1. A 2. B 3. D 4. A 5. B 6. D 7. B 8. D 9. B 10. C 11. D 12. A 13. C 14. A 15. C 16. B 17. D 18. C 19. D 20. A 21. A 22. B 23. A 24. C 25. D

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26. C 27. A 28. A 29. B 30. B 31. D 32. D 33. C 34. C 35. C 36. B

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Section C: Managing Supply from External Sources 1. C 2. B 3. D

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Section D: Implementation of Demand Plans 1. D 2. D 3. D 4. B 5. A 6. A 7. C 8. A 9. C

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Section E: Continuous Improvement 1. B 2. D 3. B 4. D 5. D 6. A 7. C 8. C 9. C 10. C 11. B 12. B 13. D 14. A 15. B 16. C

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