Question 1

Which of the following attributes best represents how an organization regards the relationship between the cost of lost sales and inventory costs?

Options :

A : Willingness to spend increasing amounts on inventory to decrease lost sales at a greater rate

B : Willingness to spend increasing amounts on inventory but expect only minor changes in lost sales

C : Unwillingness to spend increasing amounts on inventory because they see no correlation between inventory costs and the cost of lost sales

D : Unwillingness to spend increasing amounts on inventory even though they understand that an inverse relationship exists between inventory costs and the cost of lost sales

Answer: C

Question 2

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 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

A seller wishes to pay for all carriage to a named destination (except for costs related to import clearance) and assume all risks prior to the point that the goods are ready for unloading by the buyer. Which of the following Incoterms is being applied?

Options :

A : DAT – delivered at terminal

B : DAP – delivered at place

C : DDP – delivered duty paid

D : CPT – carriage paid to

Answer: A

Question 5

Which of the following supply chain risk management maturity model attributes provides visibility to impending disruptions and enables the establishment of effective, preventive, and mitigation plans?

Options :

A : Visibility

B : Predictability

C : resiliency

D : Sustainability

Answer: C