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QUESTION 76

- (Topic 3)
Which of the following changes often leads to higher levels of inventory?

  1. A. Decrease in customer service level
  2. B. Decrease in vendor lead times
  3. C. Increase in economies of scale
  4. D. Increase in warehouse holding costs

Correct Answer: C

QUESTION 77

- (Topic 2)
The mission of the global reporting initiative (GRI) is to provide a:

  1. A. comparison of key metrics for companies in the same industries across the globe.
  2. B. feasible business plan that can be shown to global potential investors.
  3. C. trusted and credible framework for reports regarding sustainability practices.
  4. D. transparent collaboration between non-profit organizations and governments.

Correct Answer: C

QUESTION 78

- (Topic 3)
Which of the following characteristics is typical of a highly complex product when compared with a simple commodity product?

  1. A. Lower product cost
  2. B. Longer cycle time
  3. C. Increased ability to change
  4. D. Lower profitability

Correct Answer: B

QUESTION 79

- (Topic 3)
The most appropriate frequency for the sales and operations planning process typically is:

  1. A. weekly.
  2. B. monthly.
  3. C. quarterly.
  4. D. annually.

Correct Answer: B

QUESTION 80

- (Topic 1)
Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

  1. A. Inventory turnover ratio can be reduced.
  2. B. Aggregate demand is more accurate than disaggregate demand.
  3. C. The planning time fence can be adjusted as needed.
  4. D. The supplier shares some risk for holding inventory.

Correct Answer: B

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