Which of the following levels in a supply chain network represents the most upstream external activity?
A. Supplier to contractor
B. Manufacturing to supplier
C. Customer to distribution
D. Customer to contractor
For innovative products, what is the typical average margin of forecast error at the time
production is committed?
A. 1%
B. 10%
C. 25%
D. 40% to 100%
E. 200%
A formal currency review as an approach for managing supply chain risk is appropriate when relative currency value:
A. moves above a certain level
B. moves below a certain level
C. moves above or below a certain level
D. maintains a constant value
The purpose of a supply chain metrics dashboard is to:
A. monitor sales performance against plan
B. measure demand management performance
C. provide data on personnel performance
D. monitor supply network performance
The purchasing manager of a company wants to minimize stock-outs as well as obsolete inventory. Which of the following tools needs to be implemented?
A. Blanket purchase order
B. Advanced planning and scheduling (APS)
C. Buy-back contracts
D. Business-to-business integration software
What would the percentage of supply chain expenses need to be in order to achieve a 50% increase in gross profits? The current percentages are 100% for revenue, 10% for supply chain expense, 80% for other expenses, and hence, gross profit is 10%. Assume the revenues remain constant and the other expenses percentage remains constant at 80%.
A. 1 percent
B. 5 percent
C. 10 percent
D. 50 percent
E. 150 percent
Which of the following planning systems would the demand forecast typically be fed into first?
A. DRP
B. MPS
C. MRP
D. CRP
E. business plan
A green purchasing strategy is employed by organizations to:
A. ensure United Nations (UN) Global Compact fair trade practices are followed.
B. purchase products that meet environmental objectives.
C. purchase products that promote ISO 14000 principles.
D. improve product quality.
Which of the following outcomes is the principal result of a successful sales and operations planning (SandOP) session?
A. Level production schedule
B. Cross-functional alignment
C. Increased sales
D. Strategic business plan
A manufacturing company produces equipment in which several subassemblies are now also required for sale as replacement parts. To satisfy both types of demand, the company should first:
A. review their part numbering and bills of material (BOMs) to identify the subassemblies differently when sold as an end-item.
B. review the production process to determine the cost to produce the subassemblies when sold as an end-item.
C. review the timing and quantity requirements for the subassemblies demand for production versus when sold as an end-item.
D. review the warehouse system to ensure that subassemblies for production can be segregated from those to be sold as an end-item.