Question 1

Which of the following systems would be the most cost-efficient for inventory management of a low value item?

Options :

A : Order point

B : Material requirements planning (MRP)

C : Periodic review

D : Economic order quantity(EOQ)

Answer: C

Question 2

If all other factors remain the same, when finished goods inventory investment is increased, service levels typically will:

Options :

A : remain the same.

B : increase in direct (linear) proportion.

C : increase at a decreasing rate.

D : increase at an increasing rate.

Answer: C

Question 3

Substituting capital equipment in place of direct labor can be economically Justified for which of the following scenarios?

Options :

A : Volumes are forecasted to increase

B : Material prices are forecasted to increase

C : Implementing a pull system in production

D : Functional layouts are being utilized

Answer: A

Question 4

In a rapidly changing business environment, a primary advantage of an effective customer relationship management (CRM) program is:

Options :

A : reduced forecast variability.

B : fewer customer order changes.

C : fewer customer defections.

D : earlier Identification of shifts Incustomer preferences.

Answer: D

Question 5

One advantage of adopting a supply network perspective Is that it:

Options :

A : protects global markets.

B : enhances understanding of competitive and cooperative forces.

C : defines the market relationships and partnerships.

D : encourages rivals to collaborate.

Answer: B