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Question 1

A firm is deciding to increase the number of warehouses from 4 to 5. If the safety stock level of the product is currently at 500 units, which of the following quantities is an estimate of the revised safety stock levels as a result of increasing the number of warehouses?

Options :

A : 250

B : 450

C : 560

D : 660

Answer: C

Question 2

A manufacturing company seeking to improve load planning and tendering, status tracking, and appointment scheduling processes of inbound management would implement which of the following technologies?

Options :

A : Distribution requirements planning (DRP)

B : Enterprise resources planning (ERP)

C : Transportation management system (TMS)

D : Warehouse management system (WMS)

Answer: C

Question 3

Excluding cost, which of the following sets of criteria describes the primary drivers for transportation mode selection?

Options :

A : Capacity, transit time, reliability, safety, and supply chain security participation

B : Accessibility, capacity, transit time, reliability, and financial stability

C : Accessibility, capacity, transit time, reliability, and safety

D : Capacity, transit time, safety, supply chain security participation, and availability

Answer: D

Question 4

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 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