Question 1

Price negotiation is most appropriate when purchasing which of the following product categories?

Options :

A : Commodities

B : Standard products

C : Items of small value

D : Made-to-order (MTO) items

Answer: A

Question 2

Which of the following prioritization rules will have the greatest impact In reducing the number of orders In queue?

Options :

A : Critical ratio

B : Shortest processing time

C : Fewest operations remaining

D : First come, first served

Answer: B

Question 3

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 4

Which of the following strategies is most appropriate for a business unit with a low relative market share in a high-growth market?

Options :

A : Using excess cash generated to fund other business units

B : Investing in the acquisition of competitors

C : Investing in projects to maintain market share

D : Designing product improvements to protect market share

Answer: C

Question 5

Forecast error typically triggers forecast revision when it is:

Options :

A : used in computing the tracking signal.

B : associated with the Introduction stage of the product life cycle.

C : continually increasing.

D : caused by random variation.

Answer: C