Question 1

Which of the following costing approaches directly reflects logistics performance?

Options :

A : Activity-based

B : Total landed

C : Standard

D : Weighted average

Answer: D

Question 2

A company has applied lean thinking and tools to its internal operations over the last several years. The company is now concerned about its ability to recover from a supply disruption. Which of the following actions would be most appropriate for the company to take to increase its resiliency?

Options :

A : Arrange for multiple sources for key components.

B : Maintain 1 week-s supply of safety stock for key components.

C : Require the suppliers of key components to maintain safety stock.

D : Add capacity to enable quick recovery from a disruption.

Answer: A

Question 3

Using which of the following elements, in addition to purchase price, describes the use of the total cost of ownership (TCO) model to make procurement decisions?

Options :

A : Life cycle costs

B : Transportation costs

C : Quantity discounts

D : Economic order quantity (EOQ)

Answer: A

Question 4

A large manufacturer wanting to be more competitive in the global market place decided to outsource its transportation and return processing to

other companies on a contractual basis. The companies providing the services would be referred to as:

Options :

A : fourth party logistics providers.

B : third party logistics providers.

C : retail services providers.

D : distribution services providers.

Answer: B

Question 5

An objective of global supply chain management is to:

Options :

A : build a chain of suppliers who will increase value to the customer.

B : minimize inventory at each level in the supply chain.

C : invest aggressively to reduce production lead times.

D : shorten resupply time while maintaining costs and flexibility.

Answer: B

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