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Free Certified Supply Chain Professional Exam Practice Questions

Question # 16

A return material authorization (RMA) policy is used in reverse logistics to:

Options:

A.  

physically transport returned items by using an efficient transportation mode.

B.  

minimize the number of returned items by involving product design and demand forecasting.

C.  

reduce the cost of returned items by refusing to accept items that should not be returned.

D.  

reclaim substantial value from returned items by recycling.

Discussion 0
Question # 17

The process of gathering data about what customers need and ensuring that desired features are included in the design and initial planning phase of a new product or service is known as:

Options:

A.  

a quick response program.

B.  

quality function deployment.

C.  

total quality management.

D.  

early supplier involvement.

Discussion 0
Question # 18

Compared to a global strategy, a multicountry strategy would be characterized by:

Options:

A.  

strategy coordination across countries.

B.  

preferred suppliers located in host countries.

C.  

major strategic decisions coordinated centrally.

D.  

products adapted to local needs.

Discussion 0
Question # 19

A firm wants to lose customers that don't value the unique products and services the firm offers and to attract and retain customers that want what the firm offers. Engaging in this activity should allow the firm to:

Options:

A.  

create a more loyal customer base.

B.  

improve customer satisfaction rates.

C.  

increase market share.

D.  

target higher-profit customers.

Discussion 0
Question # 20

Reverse supply chain activity typically peaks nearest the beginning of which of the following stages of the product life cycle?

Options:

A.  

Introduction

B.  

Growth

C.  

Maturity

D.  

Decline

Discussion 0
Question # 21

An advantage of using a third-party logistics service (3PL) is improved:

Options:

A.  

on-time delivery of shipments due to higher inventory levels.

B.  

cost structure due to economies of scale.

C.  

access to smaller markets due to localization.

D.  

risk visibility due to inventory consolidation.

Discussion 0
Question # 22

Demand management involves which of the following undertakings?

Options:

A.  

Adjusting capacity to support expected demand

B.  

Engaging in activities associated with customer relationship management

C.  

Creating higher customer demand by improving performance in areas such as lead time and service levels

D.  

Understanding events and managing activities that could influence future demand

Discussion 0
Question # 23

Which of the following consequences is a result of shipping directly from the point of manufacture to the customer rather than through a distribution network?

Options:

A.  

Delivery lead times are consistent.

B.  

Risk pooling benefits are negated.

C.  

Distribution overhead is increased.

D.  

Order-fill rate is decreased.

Discussion 0
Question # 24

A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:

Options:

A.  

$29,000,000.

B.  

$15,750,000.

C.  

$10,500,000.

D.  

$ 5,250,000.

Discussion 0
Question # 25

Which of the following corporate strategies is most consistent with a flexible supply chain strategy?

Options:

A.  

Being the low-price leader

B.  

Providing the highest-quality service

C.  

Providing mature products with stable sales

D.  

Emphasizing the quality of the product

Discussion 0
Question # 26

Which of the following actions typically would be considered part of a reverse logistics strategy?

Options:

A.  

Offering a discount on new purchases when used products are returned

B.  

Reducing the amount of packaging material used in shipping

C.  

Manufacturing products in batches consistent with full-truckload shipments

D.  

Batching returns of defective components to the suppliers

Discussion 0
Question # 27

Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by:

Options:

A.  

efficient material replenishment processes.

B.  

clearly identified roles for the buyer and seller.

C.  

a shared vision of added value.

D.  

a sole-source agreement.

Discussion 0
Question # 28

What is the primary role of marketing in supporting supply chain management?

Options:

A.  

Selecting favored supplier partners

B.  

Developing efficient customer channels

C.  

Focusing on short-term forecasting accuracy

D.  

Working with research and development on slow-moving products

Discussion 0
Question # 29

A company that produces standardized products and sells them through retailers via a responsive transportation system has decided to expand its sales with an online store for customized products. Which of the following distribution strategies would be the most appropriate for the business-strategy change?

Options:

A.  

Local distribution centers serving retailers and online sales

B.  

Centralized cross-docking facilities serving retailers and online sales

C.  

A centralized distribution center serving retailers and direct shipment from the factory serving online sales

D.  

A centralized distribution center serving retailers with transshipment arrangements serving online sales

Discussion 0
Question # 30

Maintaining a long-term collaborative relationship with a trading partner requires:

Options:

A.  

formal and informal communication.

B.  

interconnected information systems.

C.  

one partner regularly exercising power.

D.  

standardized terms of agreement.

Discussion 0

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