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

How long after the delivery date must a freight claim on a motor carriage shipment be presented and filed with the carrier in the United States’

Options :

A : 3 months

B : 120 days

C : 30 days

D : 9 months

Answer: D

Question 3

A buyer is reviewing a quote for a shipment of electronic materials from Europe to Africa. The supplier offers a reasonable price for the materials and plans to deliver them using its regular shipping service. The terms are such that the buying company takes possession of the goods once they are loaded onto a boat in Europe. Which of the following information should be of GREATEST concern to the buyer?

Options :

A : The risks involved in the shipping terms

B : Whether or not export regulations will be followed

C : The reason for choosing sea transportation over air

D : The details of the proposed Incoterms® 2020 rule

Answer: A

Question 4

A manufacturer of gas-powered motors realigns its supply chain to fit a new business segment. In the past, the firm focused on customized designs. Now, it wishes to compete in the electric motor market, which is highly competitive and price-sensitive. Given this situation, which of the following will ensure that the firm has the proper planning in place?

Options :

A :

Negotiating prices with suppliers with a focus on total cost of ownership models, to minimize inventory and logistics costs

B :

Working with engineering to ensure the inclusion of customizable product and service features, in order to meet customer demands

C : Requiring suppliers to verify that sustainability metrics for various programs are closely monitored

D : Working with engineering and suppliers to develop new product designs

Answer: A

Question 5

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