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Question 1

A company is sending a shipment to its customer in Italy. It elects to pay the freight and be responsible for any liability and damage claims. Which of the following free on board (FOB) terms is the company using?

Options :

A : FOB destination, freight collect

B : FOB destination, freight prepaid

C : FOB origin, freight prepaid

D : FOB origin, freight collect

Answer: B

Question 2

From a strategic customer relationship management (CRM) perspective, a company should strive to:

Options :

A : not refuse to do business with a customer.

B : provide customer intimacy to all customers.

C : realize that the same approach may be inappropriate for all customers.

D : realize that all customers desire close relationships with the company.

Answer: D

Question 3

Which of the following activities best describes the functionality of decoupling stock within firms’ inventory systems?

Options :

A : Separation of the manufacturing process from order processing

B : Separation of the manufacturing process from the selling process.

C : Maintaining inventory to accommodate uncertainty in demand at different geographical positions

D : Maintaining inventory at a central location for all stages of the value-creation process

Answer: A

Question 4

If a firm desires to upgrade its current logistics performance measurement system to incorporate comprehensive financial and non-financial metrics, they should implement:

Options :

A : an activity-based costing (ABC) system

B : an advanced planning system (APS).

C : a balanced scorecard.

D : the Supply Chain Operation Reference (SCOR) model.

Answer: C

Question 5

Which of the following items undermines the attempts to simplify transportation pricing?

Options :

A : rate-basis numbers

B : Class rate

C : Commodity rate

D : Incentive rate

Answer: A