Question 1

What is the primary role of marketing in supporting supply chain management?

Options :

A : Selecting favored supplier partners

B : Developing efficient customer channels

C : Focusing on short-term forecasting accuracy

D : Working with research and development on slow-moving products

Answer: B

Question 2

Which of the following situations is an example of inventory being held as a way to balance supply and demand?

Options :

A : A manufacturer holds inventory of key components to maintain a level production schedule.

B : A manufacturer of seasonal products builds finished-goods inventory before the peak selling period.

C : A distributor maintains safety stock of slow-moving items at a central distribution center.

D : A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.

Answer: B

Question 3

Which of the following actions is most likely to increase total supply chain risk?

Options :

A : Standardizing components used in a product family

B : Expanding operations to multiple locations

C : Consolidating manufacturing locations

D : Reducing the supplier base for commodity-type components

Answer: C

Question 4

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 5

Which of the following reasons supports dividing component purchases among numerous suppliers instead of utilizing a single supplier for multiple components?

Options :

A : Different suppliers enable averaging overall purchase pricing, allowing for more accurate product costing.

B : Different suppliers tend to protect any one supplier from access to overall design intellectual property.

C : Fewer supplier product requirements allow each supplier to focus major efforts on required product quality.

D : Each supplier will be more responsive as they attempt to be recognized and approved for additional purchasing.

Answer: A

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