1. Which of the following statements describes a continuous replenishment strategy in a retail environment?
A) Retailers make replenishment decisions.
B) Retailers prepare individual orders and share sales data with vendors to improve customer service.
C) Vendors use sales data and prepare shipments to maintain the desired level of inventory.
D) Vendors take full control of inventory policy.
2. A supplier disputes a low rating generated by a company's enterprise resources planning (ERP) system. Which of the following actions by the purchasing agent is most appropriate?
A) Advise the ERP information technology manager that there is a flaw in the rating system.
B) Scrap the vendor rating system until the company can figure out what is wrong.
C) Compare the vendor and company detail records, and interview company employees who handled the data.
D) Tell the supplier that, regardless of the disputed claims, the supplier must improve performance.
3. On-time delivery performance in the supply chain can best be improved by aligning required capacity with what type of capacity?
A) Demonstrated
B) Rated
C) Budgeted
D) Theoretical
4. In an assemble-to-order manufacturing environment, the master production schedule is typically the schedule of:
A) resources.
B) customer orders.
C) components and subassemblies.
D) the final assembly.
5. Which of the following activities occurs as part of the sales and operations planning process?
A) Time fences are matched to master production schedule horizons.
B) The next quarter's forecasts are presented by sales staff to finance and operations personnel at the final meeting.
C) Strategic plans are adjusted based on changing operating situations.
D) Plans are converted to financial projections and capacity requirements.
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