1. A company is formally adhering to the principles of the UN Global Compact. After a review of their supply chain, they have found that a key supplier is in violation of the compact. The best action for the company to do first is:
A) do nothing. The company is not responsible for compliance of suppliers.
B) replace the supplier as soon as possible with a compliant supplier.
C) notify the supplier of non-compliance.
D) require the supplier to become compliant.
2. A company closely monitors supplier performance and notices recent late deliveries from one supplier. The supplier discloses flood damage at the plant. The company quickly shifts sourcing to a new supplier and has minimal loss of sales. Which of the following risk strategies reflects the company's actions?
A) Achieving low cost through reaction
B) Creating an adaptive supply chain community
C) Reducing supply chain vulnerability
D) Investing in redundancy
3. A company ships from its manufacturing facilities directly to its warehouses. If the number of warehouses increases, transportation costs between manufacturing facilities and warehouses most likely will:
A) increase.
B) decrease.
C) not change.
D) become less predictable.
4. Which of the following outcomes occurs when direct shipping is used instead of a distribution network?
A) Outbound transportation cost is reduced.
B) Inventory velocity is reduced.
C) Order-fill rates are reduced.
D) Inventory obsolescence is reduced.
5. Which of the following factors typically is most important in successfully implementing sales and operations planning (S&OP)?
A) Involvement of specialists from all functional groups within an organization
B) Creation of a dedicated S&OP organizational unit
C) Involvement and accountability at senior management level
D) Focus on 3 months to 18 months in the future
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