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1. Which of the following is true regarding supply chain organizations?

A. Service supplier considerations are important only after a manufacturing site has been
selected.
B. Supply chains can loop back on themselves, making suppliers into customers.
C. A raw material producer has no Tier 1 suppliers.
D. There is a long but always finite number of tiers of suppliers in any supply chain.
Answer :- B
2. Which of the following is true of collaborative relationships in the supply chain?
A. Power-based relationships place long-term gains ahead of short-term results.
B. Incompatible hardware or legacy systems are no longer a barrier to collaboration due to new
methods of integration.
C. The most technologically advanced supply chain partner will determine the level of supply
chain development for the network.
D. Companies will always have a good reason to treat competitors in a different class from other
types of supply chain members.
Answer :- D
3. Which one of the following approaches to production scheduling accurately incorporates the
theory of constraints?
A. Speed up production after the bottleneck.
B. Slow the process down to the bottleneck's speed.
C. Decrease inventory at the front of the bottleneck.
D. Speed up production in front of the bottleneck.
Answer :- B
4. In a TQM initiative, the definition of "defect" is determined by which of the following?
A. Project team
B. Supply chain manager
C. Customer
D. Top management
Answer :- C

5. According to a noted Japanese approach to analyzing business process problems, why is it


necessary to ask "Why?" as many as five times when seeking the cause of a process defect?
A. First responses tend to name superficial causes rather than the root causes.
B. There may be more than one cause for the defect.
C. Most defects tend to have multiple causes, not just one.
D. Most employees won't admit making an error the first few times they are asked.
Answer :- A.

6. JIT "cells" are laid out to accommodate which of the following?


A. One production process
B. One product family with similar manufacturing processes
C. One specialized type of worker
D. One type of machine
Answer :- B.
7. Which of the following is true advice for ensuring that one's supply chain is agile and flexible?
A. Mixing products to achieve full truckload shipments may be highly inefficient for high-dollar,
lightweight items.
B. When designing products for maximum supply chain flexibility, putting customers on the design
team will help create modular designs.
C. Cost efficiencies and velocity must take precedence in the supply chain such as always
requiring that full truckloads are used.
D. A manufacturer's trends in demand are best monitored through visibility with Tier 1 customers.
Answer :- A.
8. Which of the following is a benefit of a vertical supply chain rather than a lateral supply chain?
A. Technology to handle the increased complexity
B. Improved business focus and expertise
C. Economies of scale and scope for individual functions
D. Complete control and visibility of operations
Answer :- D.
9. In SCOR Level 1, if you divide the sum of the cycle times for all orders delivered by the total
number of orders delivered, you are using a metric for which of the following supply chain
attributes?
A. Responsiveness
B. Reliability
C. Adaptability
D. Flexibility
Answer :- A.
10. In an electrical generation supply chain, which of the following is a Tier 1 service supplier?
A. Fuel supplier
B. Electric power utility
C. Manufacturer connected to electric grid
D. Facility maintenance
Answer :- D.

11. Which of the following phrases best characterizes the approach to change in total quality
management initiatives?
A. "Big step" overhaul of whole systems
B. Short-term initiatives with precisely defined endpoints
C. Tight focus on the improvement of end-item features
D. Successive approximations of a perfected process
Answer :- D.

12. Which of the following phrases best characterizes the approach to change in total quality
management initiatives?
A. "Big step" overhaul of whole systems
B. Short-term initiatives with precisely defined endpoints
C. Tight focus on the improvement of end-item features
D. Successive approximations of a perfected process
Answer :- A.

13. The Japanese term "kaizen" refers to which of the following business processes?
A. Root cause
B. Continuous process improvement
C. Interlocking business ownership
D. Display cards used as production signals
Answer :- B.
14. A manager decides to source their key Just-in-Time (JIT) manufacturing goods from a local
producer even though an overseas producer sells identical goods for less, even with the added
cost of shipping. Which of the following is this manager most likely emphasizing?
A. Affordability
B. Quality
C. Positive supply chain contribution
D. Availability
Answer :- D.
15. According to the functional and innovative product categories designated by Marshall L.
Fisher, which of the following would be a proper performance indicator for a typical innovative
product?
A. Design for maximum performance at minimal cost
B. Inventory reduction
C. High inventory turns
D. Aggressively reducing lead times
Answer :- D.

16. A firm that is always claiming it has the best processes and highest quality has recently
suffered losses because even though they dictate these processes to their long-term Asian
suppliers, several of them have, without any explanation, recently had a string of additional costs
and quality problems. Which of the following would best help this firm resolve its problems?
A. Increase visibility with the suppliers and allow the suppliers to suggest processes that work for
them.
B. Move production so that it is once again performed correctly in-house.
C. Find new suppliers who can follow the firm's process more closely.
D. Enforce the provisions of the suppliers' contracts through litigation.
Answer :- A.

17. Which of the following results from having a firm's enterprise resources planning (ERP)
software designed for automatic calculation of corporate taxes?
A. The firm will most likely underreport income.
B. The firms will risk violating Sarbanes-Oxley (SOX) reporting requirements.
C. The software will earn a tax deduction based on its use in tax planning.
D. The software will most likely fail to take legally available deductions.
Answer :- C.
18. Which of the following could be a key performance indicator (KPI) for replenishment?
A. Introduction lead time
B. Inventory turns
C. Volume growth
D. Order fill rate
Answer :- D
19. Which of the following is true of the Supply-Chain Operations Reference (SCOR) model?
A. SCOR applies to all product transactions (physical material and service).
B. SCOR applies to all areas of postdelivery customer support including returns.
C. SCOR applies to demand generation in sales and marketing.
D. SCOR applies to product development.
Answer :- A.
20. What enforcement authority does the U.S. Securities and Exchange Commission bring to its
role in regard to the provisions of the Sarbanes-Oxley Act?
A. Authority to bring civil court actions
B. Authority to impose jail sentences on executives
C. Authority to bring cases to criminal court
D. Investigative authority only
Answer :- A.

21. When setting supply chain strategy at a firm that isn't the nucleus firm, which of the following
is the most important to focus on?
A. What's good for the nucleus firm
B. What's good for extended supply chain partners
C. What's good for one's own firm
D. What's good for the final customer
Answer :- D.
22. In a supply chain context, measurable key performance indicators (KPIs) should be identified
for which of the following?
A. A limited number of top-level corporate and supply chain strategies
B. Performance of all products or services from a customer perspective
C. A limited number of essential supply chain processes
D. Objectives of all key personnel in related functional areas
Answer :- C.
23. Which one of the following tools provides a visual method for tracking process variance as
part of an improvement initiative?
A. Pareto diagram
B. Control chart
C. Process map
D. Oliver Wight checklist
Answer :- B.
24. The Level 2 SCOR measure for cost of goods sold includes which of the following supply
chain costs?
A. Costs of sourcing and making
B. Costs of sourcing, making, and delivering
C. Costs of planning, sourcing, making, and delivering
D. Total costs of planning, sourcing, making, delivering, and returning
Answer :- D.

25. Consider a simplified supply chain in which Lucy sells psychiatric advice from a booth to her
classmates for five cents. Subconsciously, she gets her information from her psychiatrist parent
and from her pastor. Which of the following are Tier 2 suppliers in this model?
A. Lucy
B. Parent/pastor
C. Higher education/seminary
D. There are no Tier 2 suppliers in this situation.
Answer :- C.

26. Which of the following usually implicitly exists in very simple supply chains such as a
lemonade stand but must be explicitly managed in a complex supply chain of massive scale?
A. Compliance with government regulations
B. Collection and accounting for sales taxes
C. Supplier management
D. Collaboration between manufacturer and retailer
Answer :- D.
27. Where on a balanced scorecard would you enter a seminar on financial management for
nonfinancial managers developed for the sales managers?
A. Financial perspective
B. Customer perspective
C. Innovation and learning perspective
D. Business process perspective
Answer :- C.
28. A manager wants to move to the Supply-Chain Operations Reference (SCOR) model because
their current strategy emphasizes reducing inventory costs by eliminating warehouses and
increasing volume through sales promotions rather than innovation. Which of the following
orientations is the manager moving from and which is he moving to by adopting SCOR?
A. From oriented to functional area to oriented to process
B. From oriented to functional area to oriented to entity collaboration
C. From oriented to process to oriented to product or service
D. From oriented to entity manufacturing to oriented to entity collaboration
Answer :- A.
29. When defining roles for each party in a collaboration, how should these interactions be
structured and why?
A. Sequential interdependence; redundancy of effort is minimized.
B. Reciprocal interdependence; both parties become dependent upon one another.
C. Sequential interdependence; both parties become dependent upon one another.
D. Reciprocal interdependence; redundancy of effort is minimized.
Answer :- B.
30. Which of the following members of the firm are typically involved in continuous process
improvement initiatives?
A. Shop-floor workers and supervisors
B. Middle managers
C. Executives
D. All members of the firm, including executives, managers, and labor
Answer :- D.

31. In a JIT system, reduction in lot sizes may result in which of the following tradeoffs?
A. Increased cumulative setup time
B. Increased holding costs
C. Increased inventory accumulation
D. Increased handling costs
Answer :- A.
32. If customer demand is running at 500 units per day and available production time is 300
minutes per day, what is the takt time?
A. 6 seconds per unit
B. 16.7 second per unit
C. 36 seconds per unit
D. 1.67 minutes per unit
Answer :- C.
33. When an enterprise buys new technology, which one of the following should be the primary
selection criterion?
A. Processing power
B. Features representing the very latest designs
C. Appropriateness to supply chain strategy
D. Low cost
Answer :- C.
34. Which of the following is a true prerequisite for developing collaborative relationships central
to supply chain strategy?
A. Auditable information exchange to share knowledge, not just data
B. Deterrence-based arrangements such as aligning sales and management goals to
collaborative objectives
C. Sharing some benefits but none of the burdens of collaboration with partners
D. The most advanced communications hardware and software
Answer :- A.
35. Which of the following is true of contracts for partnerships?
A. Courts can become involved in conflicts in most Asian countries without long-term detriment to
a relationship.
B. Contracts should be fixed at the start of the relationship because alterations are difficult to
enact between multiple parties.
C. Cultural differences in contracts and problem resolution styles should be a primary
consideration when arranging formal contracts.
D. Contracts should always be used in the negotiation process to keep relationships true to the
agreement.
Answer :- C.

36. Which of the following scenarios is most likely to occur at the Stage 3 (integrated enterprise)
level of supply chain evolution or higher?
A. Warehouses are located near each market and have more than enough inventory to handle
the next big sale.
B. Manager provides a broad mission and backs it up with threats for nonconformance.
C. Dominant partner coerces others to force price concessions.
D. Sales rep finds a market opportunity but is unable to bring it to the attention of new product
development.
Answer :- C.
37. Which of the following is true regarding a supply chain?
A. Services may be part of a manufacturing supply chain but do not have a distinct supply chain
themselves.
B. Information flows upstream, downstream, and between network members and external
entities.
C. Cash flows downstream while materials flow upstream.
D. An electrical power producer that powers a manufacturer's plant is downstream from the
manufacturer.
Answer :- B.
38. The developers of the balanced scorecard approach to performance were concerned that
traditional metrics placed too much emphasis on which of the following considerations?
A. Current profitability
B. Customer complaints
C. Past financial performance
D. Future performance objectives
Answer :- C.
39. Which one of the following constitutes the range of acceptable variability on a six-sigma
control chart?
A. Zero variability
B. Mean defects plus/minus 3 sigmas
C. Mean defects plus 6 sigmas
D. Mean defects plus/minus 6 sigmas
Answer :- D.
40. When the APICS Dictionary, 11th edition, refers to a supply chain as a "global network," which
of the following correctly indicates what could comprise this network?
A. Only international entities or global processes
B. Entities and processes of any size or configuration
C. Processes of any size or configuration but only international entities
D. Entities of any size or configuration but not processes
Answer :- B.

41. Corporate participants in C-TPAT (Customs-Trade Partnership against Terrorism) receive


which one of the following benefits?
A. Greater reliance on self-policing
B. Exemption from border inspections
C. Increased protection for overseas shipments
D. Reduced tariffs
Answer :- A.
42. Which of the following is a significant risk to consider when selecting a complex,
enterprisewide software system?
A. Lack of future upgrade potential for the software
B. Decreased velocity of processes because of software complexity
C. Decreased synchronicity of functions automated by the software
D. Lack of flexibility to improve processes automated by the software
Answer :- D.
43. What is the minimum level of enterprise evolution in which a firm might use a logistics supplier
to integrate with external members and also internally combine warehousing and transportation
activities to optimize cost versus customer service?
A. Stage 1: Multiple dysfunction
B. Stage 2: Semifunctional enterprise
C. Stage 3: Integrated enterprise
D. Stage 4: Extended enterprise
Answer :- C.
44. Which of the following continuous improvement methodologies focuses on reduction of
defects to statistical insignificance?
A. Just-in-Time (JIT)
B. Six-sigma
C. Lean
D. Theory of constraints
Answer :- B.
45. A design engineer is creating a product that conforms to customer needs according to the
supply chain's market intelligence. Which of the following is the most important secondary design
element that the engineer should include in the design?
A. Has a lower price than the competitor's product
B. Can be sold for a positive return
C. Has more features than the competitor's product
D. Can reach the market quickly
Answer :- B.

46. When measuring the success of a supply chain management strategy by the balanced
scorecard approach, each key performance indicator (KPI) should be linked to which one of the
following?
A. Employee learning and growth
B. Financials
C. Internal business process improvement
D. Customer perspective
Answer :- B.
47. Which of the following would a material be that was tightly linked to the company's brand
equity even though it was basically a cheap but branded plastic toy that didn't require much
quality?
A. Direct/core competency materials
B. Leveragable materials
C. Commodity materials
D. Bottleneck materials
Answer :- B.
48. Which one of the following authorities has issued directives mandating reporting, reduction,
and recycling of heavy metals in end-of-life electronics products?
A. United States government
B. European Union
C. United Nations
D. Chinese government
Answer :- B.
49. Which of the following is among the Global Supply Chain Forum's eight essential supply chain
management processes?
A. Purchasing
B. Order fulfillment
C. Logistics
D. Production
Answer :- B.
50. Members of a supply chain want to become demand-driven to reduce the bullwhip effect they
are experiencing. Which of the following should each partner in the supply chain do?
A. Reduce their contracted or owned transportation modes to match the new lowered transport
needs.
B. Improve their forecasting by basing the information on actual Tier 1 customer orders.
C. Develop agility for more frequent changeovers, staffing, or process switching.
D. Adopt new enterprise software systems that match current operating processes as closely as
possible.
Answer :- C.

51. A manufacturer, distributor, wholesaler, and retailer all agree to base their orders on actual
consumer orders instead of performing detailed forecasts based on each party's Tier 1 customer's
actual orders. Which of the following will result, and what are the likely risks of this method?
A. Pull moves back and push takes its place at the manufacturer but at the risk of inventory
obsolescence or the bullwhip effect.
B. Push moves back and pull takes its place at the manufacturer but at the risk of inventory
obsolescence or the bullwhip effect.
C. Pull moves back and push takes its place at the manufacturer but at the risk of greater
overtime or rush orders.
D. Push moves back and pull takes its place at the manufacturer but at the risk of greater
overtime or rush orders.
Answer :- D.
52. When preparing for a potential business disruption, which of the following is valid advice for
contingency planners?
A. Create contingency plans for yourself and for your supply chain partners.
B. Contingency plans are the responsibility of each departmental manager in addition to their
regular duties.
C. After assessing all potential risks, ensure that each one has a plan for continued functioning
regardless of the cost.
D. Having extra stores of inventory is inadequate protection against a disruption in production.
Answer :- D.
53. Slip sheets can be used in place of which of the following?
A. Protective packaging
B. Pallets
C. Shipping containers
D. Conveyers
Answer :- B.
54. Company A has installed supply chain management (SCM) software to achieve crossfunctional integration. However, some members of the overall value chain that are not directly
part of the supply chain itself have not provided the desired level of support for SCM initiatives.
Which of the following departments is most likely to be the one lacking in support?
A. Human resources
B. Inbound logistics
C. Customer service
D. Marketing and sales
Answer :- A.

55. The Sarbanes-Oxley Act (SOX) of 2002 focuses on which of the following areas?

A. Financial reporting and controls


B. Hazardous materials
C. Terrorism
D. Material content reporting
Answer :- A.
56. Which of the following is likely when a retailer of children's toys uses traditional forecasting to
anticipate demand (as does their wholesaler) and adds some safety stock to orders both to
smooth out the inevitable variations from the forecast and to replenish supplies after a promotion
(not communicated to their suppliers) that the retailer plans to have to liquidate excess inventory?
A. Low inventory holding costs for the retailer and low variability of demand for the wholesaler
B. Low inventory holding costs for the retailer and high variability of demand for the wholesaler
C. High inventory holding costs for the retailer and low variability of demand for the wholesaler
D. High inventory holding costs for the retailer and high variability of demand for the wholesaler
Answer :- D.
57. The Global Supply Chain Forum (GSCF) defines supply chain management as "the
integration of key business processes from end user through original suppliers that provides
products, services, and information that add value for customers and other stakeholders." Which
two processes are considered to constitute the core of supply chain management in the GSCF
model?
A. Customer service management and manufacturing flow management
B. Customer and supplier management
C. Demand management and supplier management
D. Order management and supplier relationship management
Answer :- B.
58. With the theory of supply chain versus supply chain in competition, which of the following is
true?
A. When supply chains share suppliers, alignment of business strategies with supply chain
strategies is facilitated.
B. Industries with a small number of dominant suppliers are not ideal but are best coordinated
using horizontal supply chains.
C. Use of common suppliers in competing chains may work to the advantage of both competitors
at a risk of losing proprietary data.
D. Investments in suppliers shared by a competitor will increase the partnership with that supplier
to the detriment of the competitor.
Answer :- C.

59. In the SCOR model, which performance attribute is associated with the Level 1 metric, perfect
order fulfillment?

A. Supply chain responsiveness


B. Supply chain reliability
C. Supply chain adaptability
D. Supply chain flexibility
Answer :- B.
60. If a firm has 25 days of accounts payables outstanding and 30 days invested in inventory and
their cash-to-cash cycle time is 80 days, how many days of accounts receivables do they have?
A. 105 days
B. 80 days
C. 75 days
D. 50 days
Answer :- C.
61. The antiterrorism measures developed by the Customs-Trade Partnership against Terrorism
(C-TPAT) apply to which of the following entities?
A. C-TPAT corporate participants
B. All domestic and foreign firms involved in U.S. supply chains
C. All U.S. importers
D. All U.S. exporters
Answer :- A.
62. A channel master is finding that many of its current partners have begun finding ways of
bypassing the firm, while others are performing redundant functions that cause unnecessary
competition among supply chain members. Which of the following is a likely cause of this
behavior?
A. Individual incentives conflicting with organizational goals
B. Working with competitors as peers
C. Exploitation of power-based relationships
D. Weakest collaborative links becoming bottlenecks
Answer :- C.
63. Which of the following is true of the processes or information technology (IT) that comprises
supply chain management strategy?
A. The most significant barrier to the use of IT for collaboration and networking among firms is the
cost of the IT.
B. A virtual network describes a network composed solely of IT linkages that a single entity runs.
C. Orders in the delivery chain should be pulled through by manufacturer capacity.
D. Having two supply chains helps when order timing and fulfillment is crucial in one supply chain
but secondary in another.
Answer :- D.
64. Which of the following is a tool that helps visually identify the 20 percent of causes
responsible for 80 percent of problems (using those percentages as approximations)?

A. Pareto diagram
B. Checklist
C. Focus group
D. Process map
Answer :- A.
65. Many Japanese companies use keiretsu to avoid which of the following?
A. The challenges of synchronizing a network of independent firms
B. Needing to abandon the control and full integration of a vertical environment
C. Lacking specialization and focus in a network of independent firms
D. The semifunctional enterprise stage (Stage 2)
Answer :- A.
66. A focus on quality, affordability, or availability indicates a focus on which of the following?
A. Customer value
B. Collaborative value
C. Social value
D. Financial value
Answer :- A.
67. According to research by Rice and Hoppe, the theory that supply chains of companies allied
as partners in supply networks may compete directly with other similar supply chain networks in
reality exists only with which of the following?
A. Horizontal supply chains such as PC sales
B. Vertical supply chains such as poultry sellers
C. Individual companies such as an automobile manufacturer based on their supply chain
management capabilities
D. Channel masters such as retail consumer good giants
Answer :- B.
68. If a firm locates a centralized procurement and processing facility in a low-tax foreign country,
which of the following tax rates will apply to income generated at the facility?
A. A compromise rate between the local and home country rates
B. A special international rate
C. The local country rate
D. The rate in the country of the headquarters
Answer :- C.

69. A kaizen event would bring stakeholders together to design which of the following?

A. A new supply chain


B. A short-term project to improve a process of limited scale
C. A new corporate organization chart
D. A new product
Answer :- B.
70. Developing a JIT supply chain generally implies adopting which of the following strategies
with suppliers?
A. Short-term contracts with revolving suppliers
B. Competitive bidding among the widest possible number of suppliers
C. Open bidding for flexibility supported by frequent inspection of incoming shipments
D. Long-term relationships with a limited number of suppliers
Answer :- D.
71. Which of the following identifies the emphasis of the Global Reporting Initiative?
A. Developing and publishing environmentally sustainable trade practices
B. Enforcing UN trade sanctions
C. Monitoring terrorist activities
D. Policing corporate and supply chain activities
Anaswer :- A.
72. Which of the following is true of supply chains?
A. Supply chain processes are entirely contained within each entity within a supply chain.
B. Supply chains run in only one direction, toward the customer.
C. Competition is an outside stakeholder to a supply chain that threatens or energizes it.
D. There are two flows that can be engineered in a chain, products and cash.
Answer :- C.
73. According to SCOR Level 1 metrics, which of the following attributes of an organization is
measured by the increase in production it can achieve and sustain in 30 days' time?
A. Sustainability
B. Reliability
C. Adaptability
D. Responsiveness
Answer :- C.

74. Which of the following is true of the people or the metrics involved in supply chain
management?

A. Performance must be measured by ratios of profitability and velocity, not by a checklist.


B. Supply chain management must be the responsibility of a department-level manager who is
equal in hierarchy to other department heads.
C. Current supply chain performance is better quantitatively benchmarked against the firm's
desired performance than qualitatively benchmarked.
D. Supply chain strategy and control of the related processes depend on having people educated
in functional rather than department thinking.
Answer :- C.
75. According to the Supply-Chain Operations Reference (SCOR) model, if a refrigerator
manufacturing company is at the center of the model, the supplier of materials to the sheet metal
supplier has only which of the following processes to perform in relation to the manufacturer?
A. Make, source, deliver
B. Plan, source, make, deliver, return
C. Plan, source, return
D. Plan, deliver, return
Answer :- D.
76. A value stream map is associated with which of the following improvement methods?
A. Focus groups
B. Six-sigma
C. Lean
D. Job redesign
Answer :- C.
77. In the Global Supply Chain Forum supply chain management model, which of the following
combine to create a link between adjacent partners and form a context for the other six
processes?
A. Manufacturing flow management and order fulfillment
B. Customer relationship management and supplier relationship management
C. Supplier relationship management and demand management
D. Product development and commercialization and manufacturing flow management
Answer :- B
78. Measures of success and incentives for a supply chain improvement initiative should be
linked to which of the following?
A. Judgment of each participant's direct supervisor
B. Four quadrants of the balanced scorecard
C. Approval of top management
D. Outcome of the change initiative
Answer :- B.
79. Strategic objectives and KPIs for supplier relationship management would be developed
during which stage of the SCOR model?

A. Planning
B. Delivering
C. Making
D. Sourcing
Answer :- A.
80. Which of the following best describes the potential for different quality methods to work
together?
A. Six-sigma and lean are compatible with each other but not with JIT.
B. JIT and lean are compatible with each other but not with six-sigma.
C. JIT, lean, and six-sigma work best when combined.
D. JIT and six-sigma are compatible with each other but not with lean.
Answer :- A.
81. Which of the following is true regarding supply chain organizations?
A. There is a long but always finite number of tiers of suppliers in any supply chain.
B. Service supplier considerations are important only after a manufacturing site has been
selected.
C. Supply chains can loop back on themselves, making suppliers into customers.
D. A raw material producer has no Tier 1 suppliers.
Answer :- C.
82. Which of the following cost-cutting measures will be most likely to create net financial value?
A. Eliminating retail locations and selling direct to customers
B. Eliminating inventory holding costs by having suppliers carry more inventory and ship on
demand
C. Eliminating partial truckload shipments and sending only full truckload shipments to retail
outlets to save on shipping
D. Eliminating local storage facilities to save on warehousing costs
Answer :- A.
83. What enforcement authority does the U.S. Securities and Exchange Commission bring to its
role in regard to the provisions of the Sarbanes-Oxley Act?
A. Investigative authority only
B. Authority to bring cases to criminal court
C. Authority to impose jail sentences on executives
D. Authority to bring civil court actions
Answer :- D.

84. Which of the following would a material be that was tightly linked to the company's brand
equity even though it was basically a cheap but branded plastic toy that didn't require much
quality?

A. Leveragable materials
B. Bottleneck materials
C. Commodity materials
D. Direct/core competency materials
Answer :- A.
85. Which of the following would a material be that was tightly linked to the company's brand
equity even though it was basically a cheap but branded plastic toy that didn't require much
quality?
A. Leveragable materials
B. Bottleneck materials
C. Commodity materials
D. Direct/core competency materials
Answer: -B.
86. Which of the following is a tool that helps visually identify the 20 percent of causes
responsible for 80 percent of problems (using those percentages as approximations)?
A. Checklist
B. Focus group
C. Process map
D. Pareto diagram
Answer :- D.
87. A supply chain that produces and sells cigarettes using traditional forecasting at each stage
has been experiencing the bullwhip effect. Which of the following has the strongest influence on
this effect?
A. Safety stock
B. Seasonal fluctuations
C. Excess supply liquidation
D. Announced promotions
Answer :- A.
88. Benchmarking is a tool used to carry out which function of a quality initiative?
A. Analyze the steps in a process.
B. Assess process performance.
C. Determine the roles in an initiative.
D. Implement a process improvement initiative.
Answer :- B.

89. Which one of the following tools provides a visual method for tracking process variance as
part of an improvement initiative?
A. Control chart
B. Oliver Wight checklist

C. Process map
D. Pareto diagram
Answer :- A.
90. Consider a simplified supply chain in which Lucy sells psychiatric advice from a booth to her
classmates for five cents. Subconsciously, she gets her information from her psychiatrist parent
and from her pastor. Which of the following are Tier 2 suppliers in this model?
A. Lucy
B. Parent/pastor
C. Higher education/seminary
D. There are no Tier 2 suppliers in this situation.
Answer :- C.
91. At which of the following stages would a company be if it has multiple uncoordinated
improvement efforts occurring sequentially instead of in concurrence, such as inventory
reduction, better forecasting techniques, and lower cost procurement?
A. Stage 1: Multiple dysfunction
B. Stage 2: Semifunctional enterprise
C. Stage 3: Integrated enterprise
D. Stage 4: Extended enterprise
Answer :- B.
92. When defining roles for each party in a collaboration, how should these interactions be
structured and why?
A. Sequential interdependence; both parties become dependent upon one another.
B. Reciprocal interdependence; redundancy of effort is minimized.
C. Sequential interdependence; redundancy of effort is minimized.
D. Reciprocal interdependence; both parties become dependent upon one another.
Answer :- D.
93. Which of the following is the technique of using visual signals to "pull" components through
the manufacturing process?
A. Lean
B. Kanban
C. JIT
D. Six-sigma
Answer :- B.

94. Which of the following is a true prerequisite for developing collaborative relationships central
to supply chain strategy?
A. Deterrence-based arrangements such as aligning sales and management goals to
collaborative objectives

B. Auditable information exchange to share knowledge, not just data


C. The most advanced communications hardware and software
D. Sharing some benefits but none of the burdens of collaboration with partners
Answer :- B.
95. Strategic objectives and KPIs for supplier relationship management would be developed
during which stage of the SCOR model?
A. Planning
B. Making
C. Sourcing
D. Delivering
Answer :- A.
96. Which of the following phrases best characterizes the approach to change in total quality
management initiatives?
A. Short-term initiatives with precisely defined endpoints
B. Successive approximations of a perfected process
C. "Big step" overhaul of whole systems
D. Tight focus on the improvement of end-item features.
Answer :- B.
97. In SCOR Level 1, if you divide the sum of the cycle times for all orders delivered by the total
number of orders delivered, you are using a metric for which of the following supply chain
attributes?
A. Flexibility
B. Responsiveness
C. Adaptability
D. Reliability
Answer :- B.
98. A kaizen event would bring stakeholders together to design which of the following?
A. A short-term project to improve a process of limited scale
B. A new product
C. A new corporate organization chart
D. A new supply chain
Answer :- A.

99. A manager wants to move to the Supply-Chain Operations Reference (SCOR) model because
their current strategy emphasizes reducing inventory costs by eliminating warehouses and
increasing volume through sales promotions rather than innovation. Which of the following
orientations is the manager moving from and which is he moving to by adopting SCOR?

A. From oriented to process to oriented to product or service


B. From oriented to functional area to oriented to entity collaboration
C. From oriented to functional area to oriented to process
D. From oriented to entity manufacturing to oriented to entity collaboration
Answer :- C.
100. Which of the following is true of the Supply-Chain Operations Reference (SCOR) model?
A. SCOR applies to all areas of postdelivery customer support including returns.
B. SCOR applies to product development.
C. SCOR applies to demand generation in sales and marketing.
D. SCOR applies to all product transactions (physical material and service).
Answer :- D.