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QUESTION NO: 1
In an organization where warehouse management is not a competency, the result may be lower efficiencies and?
A. Increased movement costs for the supply organization.
B. Increased leasing costs for the supply organization.
C. Higher labor costs for the supply organization.
D. Increased transportation costs for the supply organization.
Answer: C
Explanation: In an organization where warehouse management is not a competency, the result may be lower efficiencies and high labor costs. Increased transportation costs, Increased movement costs, and
Increased leasing costs would not be correct responses.
QUESTION NO: 2
Which of the following is the correct definition of a corrective action process as defined by the
ISM glossary?
A. Action taken to request an audit determining issues requiring correction.
B. A list of steps to be performed in order to correct a problem.
C. The formal request of an audit to determine deficiencies.
D. Action taken to bring a process that has veered off the planned course back on track.
Answer: D
Explanation: Action taken to bring a process that has veered off the planned course back on track is the correct definition of a corrective action process as defined by the ISM glossary. Action taken to request an audit determining issues requiring correction as well as the formal request of an audit to determine deficiencies and a list of steps to be performed in order to correct a problem are all incorrect fabricated responses.
QUESTION NO: 3
A replenishment system where time based demand is used from the distribution center to balance the customer fill rate against the inventory is referred to as?
A. Customer fill rate planning (CFRP)
B. Distribution requirements planning (DRP)
C. Supplier replenishment system (SRS)
D. Inventory replenishment system (IRS)
Answer: B
Explanation: A replenishment system where time based demand is used from the distribution center to balance the customer fill rate against the inventory is referred to as distribution requirements planning
(DRP). Supplier replenishment system (SRS), Customer fill rate planning (CFRP), and Inventory replenishment system (IRS) are not true systems.
QUESTION NO: 4
In order to achieve the optimal structure of the supply management environment, which best practice would the supply management professional use in order to gather, analyze, and manage information about external business environments?
A. Competitive intelligence
B. Business intelligence
C. Reengineering
D. Benchmarking
Answer: A
Explanation: In order to gather, analyze, and manage information about external business environments the supply management professional would use competitive intelligence. Business intelligence is used to analyze data for the purpose of helping users make better business decisions.
Reengineering involves the analysis and redesign of workflow within an organization. Benchmarking compares the organization to other organizations and involves inventing, improvising, and learning each day.
QUESTION NO: 5
The purpose of an escort for an external auditor is to?
A. Ensure the auditor does not take proprietary information or techniques.
B. Point the auditor in the right direction if the auditor asks a question such as "I would like to speak with the loading dock manager".
C. Prevent the appearance of theft.
D. Steer the auditor away from bad findings.
Answer: B
Explanation: The purpose of an escort for an external auditor is to point the auditor in the right direction if the auditor asks a question such as "I would like to speak with the loading dock manager".
The remaining responses are not correct, steer the auditor away from bad findings, ensure the auditor does not take proprietary information or techniques and prevent the appearance of theft.
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Updated: May 28, 2022