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QUESTION NO: 1
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: 2
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: 3
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.
QUESTION NO: 4
Using Ebay and local recycling facilities to dispose of excess inventory would be described as using?
A. Asset recovery channel method of excess inventory disposal.
B. Investment recovery channel method of excess inventory disposal.
C. Recycling channel method of excess inventory disposal.
D. Surplus channel method of excess inventory disposal.
Answer: B
Explanation: Using Ebay and local recycling facilities to dispose of excess inventory would be described as using investment recovery channels. The remaining choices are incorrect and fabricated responses:
Asset recovery channels, Recycling channels, and Surplus channels method of excess inventory disposal.
QUESTION NO: 5
Supply management goals and organizational goals do not exactly match. When proposing to organizational management a supply management change or initiative the MOST important issue is?
A. The show that the proposal is innovative.
B. To show that a SWOT analysis has been performed on the proposal.
C. To show how the proposal will support the achievement of organizational goals and objectives.
D. To show that the proposal is of least cost.
Answer: C
Explanation: Supply management goals and organizational goals do not exactly match. When proposing to organizational management a supply management change or initiative the MOST important issue is to show how the proposal will support the achievement of organizational goals and objectives. The remaining answers are incorrect: To show that the proposal is of least cost. The show that the proposal is innovative. And, to show that a SWOT analysis has been performed on the proposal.
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Updated: May 28, 2022