1. Future demand should be forecasted to avoid what?

A - Raising retail prices

B - Manufacturing and shipping complications

C - Overproduction and underproduction

D - Failing to respond to new fads

2. Inventory management affects the following four elements of financial statements: (1) income/sales, (2) cash flows, (3) balance sheet, and (4) working capital. Which statement analyzing inventory management's effect on one of these elements is correct?

A - Income/sales: The costs associated with inventory directly affect the cost of goods sold (COGS) on the income/sales statement.

B - Working capital: Since working capital is defined simply as money in the bank, it is not affected by inventory account errors.

C - Cash flows: Low inventory costs decrease net profits and taxes, leading to higher cash flow.

D - Balance sheet: On a balance sheet listing of assets and liabilities, an incorrect inventory balance increases liabilities.

3. Which demand forecasting model uses events in the present to predict future demand?

A - Econometric model

B - Moving average model

C - Barometric model

D - Trend projection model

4. Which statement is a correct inventory tracking method explanation?

A - Kanban is a system of cards that are uncovered to show when a shelf needs to be restocked or an inventory item needs to be reordered.

B - In a tag system, merchandise is tagged when it arrives, with tags removed and destroyed at point of sale.

C - Radio frequency identification (RFID) readers require human interaction to function.

D - A stock book lists inventory items and deletes or crosses them out when the stock is depleted.

5. A product has these life cycle stages: introduction, growth, early maturity, late maturity, and what?

A - Renewal

B - Revision

C - Decline

D - Death

6. A contract between an organization and a supplier is what?

A - A document that favors one side

B - A legal document

C - A flexible understanding

D - An impediment to a respectful relationship

7. Suppliers are often frustrated by having to deal with multiple contacts in your organization and getting different answers from different people. What is a good way to prevent confused communications?

A - Ask the supplier to designate one person to communicate with members of your company and resolve conflicting statements.

B - Ignore the situation, which is normal when multiple people communicate with each other, and handle each situation as it arises.

C - Designate one employee as the supplier contact person to speak for your entire company.

D - Encourage executives representing various departments in your company to meet with supplier executives to exchange information.

8. Supply chain strategy that is aligned with the corporate business strategy strengthens the company's advantage over whom?

A - Retail outlets

B - Wholesalers

C - The competition

D - Other countries

9. What is the correct definition of an exclusive distributor?

A - A distributor who delivers your product directly to the customer with no middleman

B - The only distributor your company uses in a given geographic area

C - A distributor who works in a niche area where there are few distributors

D - A distributor who works only for your company

10. As a supply chain manager, you are concerned that a broad variety of factors including changes in the labor market, economic shifts, extreme weather, natural disasters, or global crisis events can influence what?

A - Your reputation

B - Elections

C - Demand

D - The stock market

11.Sourcing that takes into account public consequences and bringing about positive social change is known as what kind of sourcing?

A - Environmental

B - Econometric

C - Ethical

D - Exemplary

12. While quantitative forecasting methods rely on statistics, qualitative forecasting often relies on what?

A - Data

B - Opinion

C - Economics

D - History

13. In supply chain management, "lead time" refers to the time between what and what?

A - Order production and order delivery

B - Order placement and order delivery

C - Order placement and order production

D - Order placement and retail sales

14. The two primary kinds of financial statements are the income statement and the balance sheet. What does the balance sheet include?

A - Product costs

B - Administrative costs

C - Revenues

D - Accounts payable

15. A useful strategy in supplier relationship management is making a chart showing goals such as cost-saving, increased profitability, better use of assets, lowering risk, and improving customer satisfaction. This will help identify areas where intervention may be necessary or beneficial. This strategy is called what?

A - Spend optimization

B - Positive return on investment

C - Value mapping

D - Top down approach

16. Enterprise Resource Planning (ERP) systems are especially important in the 21^st century by enhancing engagement in what modern development?

A - Smart phones

B - Economics

C - Globalization

D - Computer systems

17. Which of these is a benefit of supply chain planning and execution?

A - Reduced fulfillment demands

B - Reduced working capital requirements

C - Elimination of lost sales

D - Increased inventory requirements

18.A major function of supply chain management is obtaining the goods, materials, and equipment the company needs to manufacture products. The function of obtaining these items is called what?

A - Securing

B - Buying

C - Purchasing

D - Sourcing

19. A common inventory classification, related to the flow of materials, is (1) raw materials, (2) work-in-process (WIP), and (3) Finished goods. Which of the following is a correct statement about work-in-process?

A - Work-in process occurs when raw materials are being used or are waiting to be used in the manufacturing process.

B - Work-in-process is the entire operation from initial planning to final sales and distribution.

C - Work-in-process is the list of products currently being developed by the company.

D - Work-in-process is the factory assembly line.

20. Supply chain strategy is the playbook for supporting which aspect of a company?

A - Business strategy

B - Data bases

C - Pricing policy

D - Reputation

21. Order costs decrease as volume increases; however, inventory costs increase with the volume that must be held. So there must be a balance between ordering enoughbut not too much to satisfy demand. This balance, or set point, that minimizes the costs of ordering and holding inventory is called what?

A - Balanced Purchase Formula (BPF)

B - Demand/Purchase/Inventory (DPI)

C - Economic Order Quantity (EOQ)

D - Purchase/Inventory Equilibrium (PIE)

22. Outsourcing a company function, such as customer service, marketing, or supply chain management, can have both benefits and disadvantages. Which of the following is a possible benefit of outsourcing?

A - Efficiency

B - Knowledge of non-core functions

C - Dependence

D - Broad data access

23. When a company asks its supply chain management and its suppliers, "Where do your raw materials come from and under what conditions?" they are practicing what kind of sourcing?

A - Sustainable

B - Ecological

C - Responsible

D - Social

24. To be in a position to weather economic ups and downs, the supplier needs to have at hand plenty of what?

A - Capacity

B - Employees

C - Cash

D - Customers

25. What is meant by the term "fill rate"?

A - The speed at which warehouses are filled with inventory

B - The percent of customer orders immediately filled from inventory

C - The rate at which products flow down the supply chain from raw materials to the customer

D - The number of corporate goals that are deemed to be filled each year

26. Two inventory control methods are identified as FIFO and LIFO. Which is a correct explanation of one of these methods?

A - FIFO means first in, first out. It presumes that older inventory will be sold first.

B - LIFO means last in, final out. It presumes that older inventory will be sold last.

C - FIFO means freshest in, final out. It presumes that newer inventory will be sold last.

D - LIFO means longest in, fastest out. It means that older inventory sells faster than newer inventory.

27. In a world of scarce resources, companies have come to realize that irresponsible, unethical, or opportunistic behavior has become what?

A - Difficult to eliminate or control

B - A detriment to the company's reputation

C - The new normal

D - Sometimes necessary in order to compete

28. An inventory model is a mathematical model to help manufacturers decide optimal frequency, quantity, and flow of orders and purchases Which statement correctly explains a common inventory model?

A - A quantity discount model assumes lower costs per unit when purchasing smaller quantities.

B - An independent demand system bases purchasing quantities on the cost of manufacturing the finished product.

C - An economic manufacturing quantity model combines inventory storage costs and fixed order costs to calculate the quantity to purchase.

D - A dependent demand system bases purchasing quantities on the cost of the finished product's components.

29. Benchmarking is evaluating something by comparing to the standards of what?

A - Expectations of your customers

B - Critiques that appear on social media

C - The industry's best companies

D - Your company's top competition

30. In ethical and sustainable sourcing, environmental issues are important. What other kind of issues are just as important?

A - Cost issues

B - Transportation issues

C - Political issues

D - Social issues