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QUESTION 96

- (Topic 3)
The most common method for coping with demand variability in the manufacture of products with a lengthy cycle time is to have:

  1. A. higher raw material inventory.
  2. B. higher finished-goods inventory.
  3. C. lower finished-goods inventory.
  4. D. lower raw material inventory.

Correct Answer: B

QUESTION 97

- (Topic 2)
A company that sells direct to industrial and commercial businesses has become successful by being responsive to the needs of its customers. The company currently produces in each country all of the products it sells in that country. Several countries in which the company operates have negotiated an agreement to establish a trading bloc. Which of the following actions by the company would be most appropriate if the agreement is implemented?

  1. A. Consolidate production outside the trading bloc to reduce total costs.
  2. B. Consolidate production within the trading bloc to reduce tariffs paid.
  3. C. Outsource the production of products with low sales volumes to reallocate capacity.
  4. D. Reassign products so that each is produced in a single facility within the trading bloc to get economies of scale.

Correct Answer: D

QUESTION 98

- (Topic 3)
Variation in upstream requirements can be reduced by increasing:

  1. A. demand visibility.
  2. B. production capacity.
  3. C. product features.
  4. D. safety stock.

Correct Answer: A

QUESTION 99

- (Topic 1)
Which of the following benefits of supplier relationship management typically results from collaboration with a few critical suppliers?

  1. A. Automation of supplier sales activities
  2. B. Elimination of formal contracts
  3. C. Reduction in customer and supplier inventories
  4. D. Standardization of communications

Correct Answer: C

QUESTION 100

- (Topic 3)
Which of the following approaches reduces lead times from supplier to customer using point of sale data?

  1. A. Advanced shipping notice (ASN)
  2. B. Continuous quality improvement (CQI)
  3. C. Vendor-managed inventory (VMI)
  4. D. Efficient consumer response (ECR)

Correct Answer: D

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