1. A company that sells direct to industrial and commercial businesses has become successful by being responsive to the needs of its customers. The company currently produces in each country all of the products it sells in that country. Several countries in which the company operates have negotiated an agreement to establish a trading bloc. Which of the following actions by the company would be most appropriate if the agreement is implemented?
A) Consolidate production outside the trading bloc to reduce total costs.
B) Consolidate production within the trading bloc to reduce tariffs paid.
C) Outsource the production of products with low sales volumes to reallocate capacity.
D) Reassign products so that each is produced in a single facility within the trading bloc to get economies of scale.
2. The transportation manager at a consumer goods manufacturer has decided to begin shipping full truckload rather than less-than-truckload quantities. Which of the following outcomes is likely following implementation of this decision?
A) Inventory levels at the manufacturer will decrease.
B) Lead times as seen by the customer will increase.
C) Production efficiencies at the manufacturer will increase.
D) Transportation costs as seen by the customer will increase.
3. Which of the following processes would a company use to evaluate the risk profile for end-of-life planning for a product family?
A) Distribution requirements planning
B) Sales and operations planning
C) Rough-cut capacity planning
D) Production activity control
4. A business is changing from a business to business model to a business to consumer model. Which of the following statements about this supply chain change is true?
A) Returns from customers will decrease.
B) Number of supplier orders will increase.
C) Number of customer orders will increase.
D) Average supplier order size will increase.
5. Which of the following actions is most likely to increase total supply chain risk?
A) Standardizing components used in a product family
B) Expanding operations to multiple locations
C) Consolidating manufacturing locations
D) Reducing the supplier base for commodity-type components
Write a public review