Question 1

A supply manager for JKL, Inc. is negotiating a contract with a supplier of a component. The component will be used in a new product JKL Is manufacturing and plans to bring to market early next year. Which of the following will be the MOST important provision for the supply manager to negotiate for?

Options :

A : A fixed cost of raw materials that will remain stable over the following year

B : A low minimum order quantity that allows flexibility to buy additional materials

C : A sustainable packaging solution with recyclable transport crating

D : Ownership of the molds and dies used to manufacture the component

Answer: B

Question 2

A firm needs to provide raw materials to accommodate a recent increase in manufacturing production. The supply manager uses the material forecast from the material requirements planning (MRP) software and the storage capacity from the warehouse management system (WMS) to forecast the firm's requirements. Which of the following will impact this forecast MOST significantly?

Options :

A : Validation of data by supply management

B : The type of planning system used

C : The interface between the MRP software and the WMS

D : Accounting for storage of works in progress

Answer: C

Question 3

A firm sells an average of 2,000 units of snacks from its existing stock while it waits for orders to be delivered. Demand during lead time varies in accordance with a normal distribution. The firm's supply manager prepares a presentation to explain the concept of customer service and safety stock levels using the following figure:

What does the shaded area D (in red) represent?

Options :

A : Average demand during lead-time

B : Service level

C : Stock-out risk

D : Re-order point

Answer: C

Question 4

How long after the delivery date must a freight claim on a motor carriage shipment be presented and filed with the carrier in the United States’

Options :

A : 3 months

B : 120 days

C : 30 days

D : 9 months

Answer: D

Question 5

An organization purchases material from several countries. These materials are assembled into products and sold in several other countries. This firm's product specifications will MOST likely reference

Options :

A : International standards

B : Incoterms® 2010 rules

C : North American Free Trade Act

D : exchange rates

Answer: A

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