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Total 170 Questions | Updated On: Sep 12, 2024

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Question 1

An organization purchases material from several countries. These materials are assembled into products and sold in several other countries. This firm's product specifications will MOST likely reference

A : International standards

B : Incoterms® 2010 rules

C : North American Free Trade Act

D : exchange rates

Answer: A

Question 2

A manufacturing firm's facility operates a level production strategy. The initial demand plan is as follows:

MonthJanFebMarAprMayJunJulAug

Unit Sales12,00026,00026,00021,00020,00020,00015,00020,000

Production20,00020,00020,00020,00020,00020,00020,00020,000

The supply management department learns that one of its retailers is planning a promotional event on August

1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning of

January, and maximum inventory holding is 15,000 units.

How many units per month should production increase in order to meet the requirements of its retailer and

minimize overall inventory levels?

A : 2,000

B : 2,500

C : 14,000

D : 2,715

Answer: A

Question 3

An ERP purchasing module indicates a gross requirement of 100 units for part number A123. There is an open purchase order for 55 units. The item master for this supplier shows an order lot size of 30 units each. In this situation, how many units of this part will the exception report indicate should be ordered7

A : 60

B : 100

C : 45

D : 30

Answer: C

Question 4

A manufacturer of gas-powered motors realigns its supply chain to fit a new business segment. In the past, the firm focused on customized designs. Now, it wishes to compete in the electric motor market, which is highly competitive and price-sensitive. Given this situation, which of the following will ensure that the firm has the proper planning in place?

A : Negotiating prices with suppliers with a focus on total cost of ownership models, to minimize inventory and logistics costs

B : Working with engineering to ensure the inclusion of customizable product and service features, in order to meet customer demands

C : Requiring suppliers to verify that sustainability metrics for various programs are closely monitored

D : Working with engineering and suppliers to develop new product designs

Answer: A

Question 5

XYZ, Inc. notices that one of its suppliers has been failing to achieve on-time delivery, even though XYZ sends it a 6-month projected order forecast every month. The supplier claims that it takes nine months to receive important raw materials, and that this causes the poor delivery performance. Nevertheless, XYZ must continue purchasing from this supplier, as it is a sole supplier. Given this situation, which of following is the BEST course of action for XYZ to take

A : Send the 6-month forecast data weekly instead of monthly to the supplier, and request it purchase raw materials based on the projections

B : Request that the supplier submit an open order report on a weekly basis with details on the latest shipment status

C : Discuss the issue with engineering to determine if the firm can use different raw materials to manufacture the product

D : Extend the forecast timeline from six months to one year, and request the supplier purchase raw materials based on the projections

Answer: D

Page: 1 / 34

Total 170 Questions | Updated On: Sep 12, 2024

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