Question 1

A buyer is reviewing a quote for a shipment of electronic materials from Europe to Africa. The supplier offers a reasonable price for the materials and plans to deliver them using its regular shipping service. The terms are such that the buying company takes possession of the goods once they are loaded onto a boat in Europe. Which of the following information should be of GREATEST concern to the buyer?

Options :

A : The risks involved in the shipping terms

B : Whether or not export regulations will be followed

C : The reason for choosing sea transportation over air

D : The details of the proposed Incoterms® 2020 rule

Answer: A

Question 2

A graph of a firm’s inventory replenishment system reveals the following

Which of the following is TRUE’

Options :

A : The order cycle is two and a half days.

B : The average inventory is 1,850 units.

C : There is a fixed order quantity of 500 units.

D : There is a fixed order quantity of 500 units.

Answer: D

Question 3

A manufacturer of gas-powered motors realigns its supply chain to fit a new business segment. In the past, the firm focused on customized designs. Now, it wishes to compete in the electric motor market, which is highly competitive and price-sensitive. Given this situation, which of the following will ensure that the firm has the proper planning in place?

Options :

A :

Negotiating prices with suppliers with a focus on total cost of ownership models, to minimize inventory and logistics costs

B :

Working with engineering to ensure the inclusion of customizable product and service features, in order to meet customer demands

C : Requiring suppliers to verify that sustainability metrics for various programs are closely monitored

D : Working with engineering and suppliers to develop new product designs

Answer: A

Question 4

An ERP purchasing module indicates a gross requirement of 100 units for part number A123. There is an open purchase order for 55 units. The item master for this supplier shows an order lot size of 30 units each. In this situation, how many units of this part will the exception report indicate should be ordered7

Options :

A : 60

B : 100

C : 45

D : 30

Answer: C

Question 5

A firm hires a new staff member in its warehousing department. As a FIRST step in the training of this employee, the warehouse manager should

Options :

A : verify that the employee knows how to operate the warehouse equipment and tools correctly

B :

demonstrate how to package products in the correct manner, so that the employee can begin with packaging assignments

C :

explain the company-s safety policy and verify that the employee understands all safety-related requirements

D :

show the employee how to separate disposable vs recyclable packaging, to ensure the employee understands environmental compliance requirements

Answer: C

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