Question 1

Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?

Options :

A : Use a more rapid transportation mode.

B : Increase safety stock.

C : Extend product warranty.

D : Employ lean principles.

Answer: D

Question 2

A corporation must consider which of the following factors when selecting its enterprise resources planning system?

Options :

A : Uniqueness of operations

B : Corporate profitability

C : MRP and MRP II processing

D : Industry benchmarks

Answer: A

Question 3

Risk management assessment tools are common techniques used in which certification program?

Options :

A : ISO 31000

B : ISO 14000

C : ISO 26000

D : ISO 9000

Answer: A

Question 4

A firm using which of the following demand fulfillment approaches typically can respond most quickly to an urgent request to increase the quantity of product in a client's order?

Options :

A : Make-to-stock (MTS)

B : Make-to-order (MTO)

C : Assemble-to-order (ATO)

D : Engineer-to-order (ETO)

Answer: A

Question 5

Using which of the following elements, in addition to purchase price, describes the use of the total cost of ownership (TCO) model to make procurement decisions?

Options :

A : Life cycle costs

B : Transportation costs

C : Quantity discounts

D : Economic order quantity (EOQ)

Answer: A