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QUESTION NO: 1
Which of the following is NOT an asset requirement determinant of an organization?
A. Value added asset requirement.
B. Business strategy asset requirement.
C. Weather patterns during operations asset requirement.
D. Customer satisfaction asset requirement.
Answer: C
Explanation: Which of the following is not an asset requirement determinant of an organization - weather patterns. Business strategy. Customer satisfaction, and Value are an asset requirement determinant of an organization.
QUESTION NO: 2
In benchmarking a project or process the planning stage involves 10 steps which step happens fourth?
A. Establish functional goals.
B. Determine the performance gap.
C. Communicate benchmark findings and gain acceptance.
D. Project future performance levels.
Answer: B
Explanation: In benchmarking the planning stage involves 10 steps. Determine the performance gap is the fourth step. Project future performance levels is the fifth step. Communicate benchmark findings and gain acceptance is the sixth step. Establish functional goals is the seventh step.
QUESTION NO: 3
Michelle Uttley works as the supply management professional for Duncan Dairy Farms which form of transportation is the fastest and most expensive method?
A. Air transportation
B. Pipeline
C. Gasline
D. Water shipping
Answer: A
Explanation: Air transportation is the fastest and most expensive method of transportation. Pipeline,
Gas, and Water shipping are not the fastest and most expensive method of transportation.
QUESTION NO: 4
In order to effectively manage risks, the supply management professional must conduct risk planning which includes confirming the current state of the organization as well as conducting impact assessments.
If the supply management professional was developing a comprehensive list of risks which step of risk planning are they performing?
A. Valuation phase of risk planning
B. The probability estimation phase of risk planning
C. The Identification phase of risk planning
D. The scope phase of risk planning
Answer: C
Explanation: In order to effectively manage risks, the supply management professional must conduct risk planning which includes confirming the current state of the organization as well as conducting impact assessments. If the supply management professional was developing a comprehensive list of risks which step of risk planning are they performing the identification phase of risk planning.
Valuation phase of risk planning involves the direct and indirect costs associated with identified risks.
The scope phase of risk planning involves exploring immediate problems and their effects on second and third tier events. The probability estimation phase of risk planning determines the occurrence for identified risks based on available information.
QUESTION NO: 5
The supply management professional may encounter very complex arrangements of authority.
This may be in the form of actual authority, apparent authority, express or implied authority. The type of authority used to describe job description authority and is contained in a written formal statement such as an employment contract is?
A. Apparent authority
B. Expressed authority
C. Implied authority
D. Actual authority
Answer: B
Explanation: The supply management professional may encounter very complex arrangements of authority. This may be in the form of actual authority, apparent authority, express or implied authority. The type of authority used to describe job description authority and is contained in a written formal statement such as an employment contract is expressed authority. Authority intentionally granted by the principal to the agent is referred to as actual authority. The type of authority used to describe an authority that is implied by law to enable the agent to carry out the express authority granted by the principal is implied authority. Apparent authority is a type of authority created in an agency when a principal permits an individual to operate in a fashion that makes third parties believe the individual is an authorized agent of the principal.
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Updated: May 28, 2022