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Topic
No. of Questions
74
Operations
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Question No : 1 - (Topic 1)
The factors to consider in the make-or-buy decision include costs, proprietary knowledge,
and:
A. design history.
B. available capacity.
C. inventory balance.
D. warehouse location.
Answer: B
Question No : 2 - (Topic 1)
Which of the following is the most important result when a company implements customer
relationship management?
Question No : 3 - (Topic 1)
Which of the following corporate strategies is most consistent with a flexible supply chain
strategy?
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Question No : 5 - (Topic 1)
A firm has identified groups of customers based on specific characteristics the customers
desire from products and services the firm can provide. Characteristics include lead times,
pricing tiers, and service levels. The firm is engaged in which of the following activities?
A. Customer differentiation
B. Order winner segregation
C. Market segmentation
D. Channel definition
Answer: C
Question No : 6 - (Topic 1)
Which of the following factors typically is the most significant impediment to implementing
collaborative commerce?
A. Technology barriers
B. Security
C. Corporate culture
D. Return on investment (ROI)
Answer: C
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Question No : 8 - (Topic 1)
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?
Question No : 9 - (Topic 1)
The use of a seasonal index as a forecasting technique measures the ratio of the:
Question No : 10 - (Topic 1)
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Question No : 11 - (Topic 1)
Which of the following practices has improved management of the customer pipeline?
A. Reverse auctions
B. Sales force automation
C. Finite capacity planning
D. Point-of-purchase metrics
Answer: B
Question No : 12 - (Topic 1)
The primary reason for a firm to pursue strategic supply chain activities is to:
Question No : 13 - (Topic 1)
Reverse supply chain activity typically peaks nearest the beginning of which of the
following stages of the product life cycle?
A. Introduction
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Question No : 14 - (Topic 1)
Incorporating supplier input into product and process design helps to:
A. maintain quality.
B. stabilize product costs.
C. reduce time to market.
D. save costs to the buyer.
Answer: C
Question No : 15 - (Topic 1)
In addition to sales history, current customer orders, and forecasted demand, which of the
following data sources should be used as part of a demand management process?
A. Inventory levels
B. Contractual obligations
C. Customer profitability
D. Scheduled marketing activities
Answer: D
Question No : 16 - (Topic 1)
A companys decision to charge different prices for the same service sold in different
market segments is most likely based on which of the following metrics?
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Question No : 17 - (Topic 1)
What is the primary role of marketing in supporting supply chain management?
Question No : 18 - (Topic 1)
A firm supplies products and services to a wide variety of industries with varying
requirements for responsiveness and reliability. Many customers across these industries
are not satisfied with the firms ability to meet the lead time and on time delivery
requirements. Which of the following tools is most appropriate for the firm to use to improve
customer service?
Question No : 19 - (Topic 1)
A media company offers a majority of its movies through a specific distributor. The media
company is beginning to produce content for a new foreign market to which the distributor
has exclusive access. To maximize savings and gain entry to this new market, the media
company should:
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Question No : 20 - (Topic 1)
Maintaining a long-term collaborative relationship with a trading partner requires:
Question No : 21 - (Topic 1)
Which of the following situations is an example of postponement?
Question No : 22 - (Topic 1)
Which of the following marketing strategies emphasizes offering services at a lower price
than rival services with comparable features?
A. Cost leadership
B. Service differentiation
C. Customer focus
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Question No : 23 - (Topic 1)
After identifying the potential causes for delays in communicating demand information up
the supply chain, the trading partners should take which of the following actions?
Question No : 24 - (Topic 1)
When designing a supply chain for strategic advantage, a company first should consider:
Question No : 25 - (Topic 1)
A large manufacturer wanting to be more competitive in the global market place decided to
outsource its transportation and return processing to other companies on a contractual
basis. The companies providing the services would be referred to as:
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Question No : 26 - (Topic 1)
Medium-term demand management projections are used primarily to:
Question No : 27 - (Topic 1)
A remanufacturer of equipment is most likely to have what type of supply chain?
A. Modular logistics
B. Reverse logistics
C. Mixed model
D. Lateral
Answer: B
Question No : 28 - (Topic 1)
The probability of customer dissatisfaction is highest when which of the following conditions
exists?
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11
Question No : 29 - (Topic 1)
A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of
its trucks and now purchases transportation services from fleet operators. This is an
example of which of the following strategies?
Question No : 30 - (Topic 1)
A firm supplies a single line of products to consumers using retail stores and on-line sales,
distributors, and wholesalers. Currently the firm has common pricing and response times
for sales in each sales channel. Which of the following tools is most appropriate to employ
to improve profitability?
A. Customer segmentation
B. Customer-facing ordering systems
C. Customer relationship management (CRM)
D. Supply Chain Operations Reference (SCOR)
Answer: A
Question No : 31 - (Topic 1)
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
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Question No : 32 - (Topic 1)
Which of the following results can be expected from sharing a common understanding of
demand and consumption patterns among supply chain participants?
Question No : 33 - (Topic 1)
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:
A. $29,000,000.
B. $15,750,000.
C. $10,500,000.
D. $ 5,250,000.
Answer: D
Question No : 34 - (Topic 1)
Demand management involves which of the following undertakings?
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Question No : 35 - (Topic 1)
Compared to mass-media marketing, customer relationship management has the
advantage of allowing the organization to:
Question No : 36 - (Topic 1)
The question below is based on the following flowchart:
Which of the following phrases most accurately describes the complete flow of demand
information?
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Question No : 37 - (Topic 1)
An advantage of using a third-party logistics service (3PL) is improved:
Question No : 38 - (Topic 1)
A manufacturer uses standard costing, and a potential supplier uses activity-based costing.
This difference most likely will have implications for which of the following types of future
decisions?
A. Price concessions
B. Make-or-buy
C. Distribution warehouse locations
D. Freight terms
Answer: B
Question No : 39 - (Topic 1)
Which of the following considerations is an important supply chain design decision?
A. Product design
B. Selecting supporting information systems
C. Identifying labor force requirements
D. Identifying training programs
Answer: B
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Question No : 41 - (Topic 1)
Compared to a blanket purchase order, a supplier alliance agreement is best differentiated
by:
Question No : 42 - (Topic 1)
Using an independent service provider for logistics would be most appropriate in which of
the following situations?
Question No : 43 - (Topic 1)
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A. Group
B. Channel
C. Regional
D. Location
Answer: B
Question No : 44 - (Topic 1)
Which of the following scenarios represents a correct application of the Supply-Chain
Operations Reference-model (SCOR)?
Question No : 45 - (Topic 1)
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:
Question No : 46 - (Topic 1)
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Question No : 47 - (Topic 1)
Which of the following actions typically would be the first step in implementing the
philosophy of customer relationship management?
Question No : 48 - (Topic 1)
Which of the following benefits of supplier relationship management typically results from
collaboration with a few critical suppliers?
Question No : 49 - (Topic 1)
Which of the following types of information would be an appropriate basis for a qualitative
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A. Leading indicators
B. Market research data
C. Order history
D. Shipment history
Answer: B
Question No : 50 - (Topic 1)
Which of the following indicators is most appropriate to use as a measure of supply chain
utilization?
Question No : 51 - (Topic 1)
Which of the following attributes typically makes reverse logistics processes more
complicated than outbound logistics processes?
Question No : 52 - (Topic 1)
Continuous improvement is best described as:
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Question No : 53 - (Topic 1)
Which of the following situations is an example of inventory being held as a way to balance
supply and demand?
Question No : 54 - (Topic 1)
Which of the following customer relationship management activities most appropriately is
used for revenue generation?
Question No : 55 - (Topic 1)
The most likely benefit of implementing a collaborative transportation management system
is:
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Question No : 56 - (Topic 1)
The primary reason for the evolution of the supply chain is:
Question No : 57 - (Topic 1)
The focus of collaborative supply chain management differs from a transactional approach
by its emphasis on the:
Question No : 58 - (Topic 1)
Which of the following organizational design choices is an example of vertical integration?
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Question No : 59 - (Topic 1)
A manufacturer of plastic components that are sold either directly or through distributors
wants to identify the requirements of the end customers for each market segment. Which of
the following approaches would be most appropriate?
Question No : 60 - (Topic 1)
Which of the following scenarios represents a correct application of the Supply-Chain
Operations Reference-model (SCOR)?
Question No : 61 - (Topic 1)
Keeping all other factors equal, a company typically will try to maintain higher service levels
for products with:
A. wider variety.
B. shorter lead time.
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