Question 1

Which of the following actions is most likely to reduce inventory carrying costs?

Options :

A : Utilize ABC classification

B : Standardize the items in inventory

C : Set minimum inventory levels

D : Initiate a vendor-managed inventory (VMI) program

Answer: D

Question 2

It is most appropriate to measure spending per customer as a proportion of profitability during which of the following phases of a

supplier/customer relationship?

Options :

A : Customer acquisition

B : Customer retention

C : Customer dependency

D : Strategic customer care

Answer: B

Question 3

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

Question 4

Risk management assessment tools are common techniques used in which certification program?

Options :

A : ISO 31000

B : ISO 14000

C : ISO 26000

D : ISO 9000

Answer: A

Question 5

The production scheduler for a bottleneck resource should:

Options :

A : schedule additional preventive maintenance for the resource.

B : ensure a constant queue of work waiting to be processed

C : increase production lot sizes to increase utilization of resources.

D : implement pull signals for production of the bottleneck resource.

Answer: B

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