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