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QUESTION 66

- (Topic 1)
Which of the following situations is an example of inventory being held as a way to balance supply and demand?

  1. A. A manufacturer holds inventory of key components to maintain a level production schedule.
  2. B. A manufacturer of seasonal products builds finished-goods inventory before the peak
  3. C. selling period.
  4. D. A distributor maintains safety stock of slow-moving items at a central distribution center.
  5. E. A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.

Correct Answer: B

QUESTION 67

- (Topic 3)
A car manufacturer has 40000 cars in inventory, of which 5000 are electric. The manufacturer expects to sell 5000 cars per day, of which 4000 are estimated to be gasoline cars. The days of supply for electric cars is:

  1. A. 40 days.
  2. B. 10 days.
  3. C. 8 days.
  4. D. 5 days.

Correct Answer: D

QUESTION 68

- (Topic 3)
A company most likely would implement a supplier certification program to:

  1. A. improve the supplier's procurement process.
  2. B. abide by ISO standards.
  3. C. validate the supplier's compliance with requirements.
  4. D. implement point-of-sale (POS) terminals.

Correct Answer: :C

QUESTION 69

- (Topic 3)
A company is having trouble with raw material deliveries and decides to develop a supplier certification program. The certification process most appropriately would start with which of the following suppliers?

  1. A. Suppliers of "A" classified items
  2. B. Suppliers recently ISO 9000-certified
  3. C. Suppliers with the worst performance records
  4. D. Competitors of suppliers with the worst performance records

Correct Answer: A

QUESTION 70

- (Topic 2)
A company is formally adhering to the principles of the UN Global Compact. After a review of their supply chain, they have found that a key supplier is in violation of the compact. The
best action for the company to do first is:

  1. A. do nothin
  2. B. The company is not responsible for compliance of suppliers.
  3. C. replace the supplier as soon as possible with a compliant supplier.
  4. D. notify the supplier of non-compliance.
  5. E. require the supplier to become compliant.

Correct Answer: C

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