Question 1

A manufacturing firm's facility operates a level production strategy. The initial demand plan is as follows:

MonthJanFebMarAprMayJunJulAug

Unit Sales12,00026,00026,00021,00020,00020,00015,00020,000

Production20,00020,00020,00020,00020,00020,00020,00020,000

The supply management department learns that one of its retailers is planning a promotional event on August

1st that it expects will require an additional 19,000 units. There are 5,000 units in stock for the beginning of

January, and maximum inventory holding is 15,000 units.

How many units per month should production increase in order to meet the requirements of its retailer and

minimize overall inventory levels?

Options :

A : 2,000

B : 2,500

C : 14,000

D : 2,715

Answer: A

Question 2

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

Question 3

BCD Manufacturing's products have very high velocity. Accordingly, the firm is redesigning its warehouse to

accommodate additionalimplement a system that

will allow its products to be stored in flexible locations, due to the high demand of different SKUs. This

strategy should also allow the orgfeization to improve warehouse efficiency. In this situation, which of the

following types of storage strategies should BCD employ?

Options :

A : Overflow locations

B : Fixed item locations

C : Floating locations

D : Point-of-use locations

Answer: C

Question 4

XYZ, Inc. notices that one of its suppliers has been failing to achieve on-time delivery, even though XYZ sends it a 6-month projected order forecast every month. The supplier claims that it takes nine months to receive important raw materials, and that this causes the poor delivery performance. Nevertheless, XYZ must continue purchasing from this supplier, as it is a sole supplier. Given this situation, which of following is the BEST course of action for XYZ to take

Options :

A :

Send the 6-month forecast data weekly instead of monthly to the supplier, and request it purchase raw materials based on the projections

B :

Request that the supplier submit an open order report on a weekly basis with details on the latest shipment status

C :

Discuss the issue with engineering to determine if the firm can use different raw materials to manufacture the product

D :

Extend the forecast timeline from six months to one year, and request the supplier purchase raw materials based on the projections

Answer: D

Question 5

A company finds that tracking demand for products sold at its retail outlets makes forecasting a challenge. Which of the following would be MOST useful in providing rapid updates when dealing with suppliers?

Options :

A : Regression analysis of future sales

B : Safety stock review

C : Safety stock review

D : Probability modeling

Answer: C

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