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1. Herman Travelers is examining a Pareto diagram in their company. Which of the following data cannot be measured? A.

Currency units B. Time C. Number of accidents D. Principles pertaining to why E. Opinion and complaints ANS. D EXP: Pareto diagrams can be applied to any measurable data such as currency units, time, number of accidents, and opinion or complaints. 2. Abby Farms, Inc. is examining the root cause data analysis. Doing this helps to do which of the following? A. Isolate sources of customer complaints B. Uncover the original cause that might lie underneath more superficial complaints C. Account for the number of defects that represent product failures D. Account for the number of defects that represent service failures E. Manage the process as well as fix it ANS: B EXP: Root cause analysis helps uncover the original cause that might lie underneath more superficial complaints. 3. Slippery Soap Car Wash is planning to set up a focus group and provide extensive research data to its board. Who should lead the group? A. Any capable and willing employee B. The customer who has written multiple complaints C. A trained facilitator backed up by representatives of the process improvement team D. The process improvement team only E. The CEO or COO exclusively ANS: C EXP: A focus group should be led by a trained facilitator and observed by representatives of the process improvement team. 4. Team A of Slippery Soap Car Wash is examining data in a control chart. The control chart reveals process-tracking outcomes in several ways. Which is a way process outcome can be tracked? A. Size of a component B. Pareto diagram C. Brainstorming D. Customer complaints E. Surveys ANS: A EXP: A straightforward type of control chart tracks numbers, such as size of component.

5. Cloak and Dagger Swords is carefully and completely describing the process to a group and identifying the pattern of variability. Error tracking is especially important for the company evaluation. A visual method for tracking process variance is needed, and this method is called which of the following? A. Control chart B. Six-sigma approach C. Value spikes D. Defect measurement E. Strategic planning ANS: A EXP: The control chart is a visual method for tracking process variance. 6. Fintucky Trucks, Inc. is experiencing blocked visibility and is unable to implement process improvement. One obstacle to visibility along supply chains is which of the following? A. The unwillingness of partners to share information. B. The wrong team members working together to achieve success. C. Not enough quality control and assessment. D. Limited resources. E. Budget cuts. ANS: A EXP: One obstacle to visibility along supply chains has been the unwillingness of partners to share information. 7. Crunchy Croutons, Inc. is having trouble seeing whats happening within their supply chain. The company is a traditional and functionally oriented firm. What is this company lacking? A. Velocity B. Process improvements C. Visibility D. Analysis E. Scope ANS: C EXP: Visibility means being able to, figuratively; see whats happening in the supply chain. 8. Online Letters, LLC is examining the evolution of its supply chains. As their supply chains have evolved across new frontiers, they have noticed that they are in need of process improvement. What specific areas should they not address? A. Organization B. Technological Complexity C. Scope D. Cost E. Communications and software ANS: D EXP: As supply chains evolve across new frontiers of organization, technology, and scope they are in constant need of process improvement. 9. GSD Incorporated is evaluating their lean system and takt time. When a lean system is running on takt

time, the JIT delivery of supplies is which of the following? A. A necessity to honor the commitment to zero accumulation of inventory B. A best in class benchmark C. An entry-level performance D. A supply chain on the verge of destruction E. A demand for improvement strategies ANS: A EXP: When a lean system is running on takt time, the JIT delivery of supplies is a necessity to honor the commitment to zero accumulation of inventory. 10. Castle Superstore is in a highly competitive market. In competitive markets, success goes only to those organizations that pursue what kind of improvement using all appropriate quality strategies? A. Rapid improvement B. Continuous improvement C. Cycle improvement D. Stalled improvement E. Organized improvement ANS: B EXP: In competitive markets, success goes only to those organizations that pursue continuous improvement using all appropriate quality strategies. 11. Michelangelo Corp. is a highly successful real estate company that promotes continuous improvement programs. The most successful continuous improvement programs rely on which of the following? A. More than one technique B. Only one technique C. Six-sigma attention only D. Reduction errors E. No techniques ANS: A EXP: The most successful continuous improvement programs rely on more than one technique. 12. At Janes Jewels, a nationwide high-end jewelry designer and store, business is being disrupted. If not handled properly, this can affect a large organization and disrupt the business enormously and in all areas. Which of the following must be looked at closely? A. Change B. Competition C. Cooperation D. Communication E. Organization ANS: A EXP: Change can be enormously disruptive across a large organization if it isnt handled properly. 13. Cost Less Carpet specializes in bringing the right product to customers at the right time and at the

right prices means which of the following? A. Never being satisfied with current levels of product quality or supply chain performance B. Always being satisfied with current levels of product quality or supply chain performance C. Occasionally being satisfied with current levels of product quality or supply chain performance D. Routinely being satisfied with current levels of product quality or supply chain performance E. Daily being satisfied with current levels of product quality or supply chain performance ANS: A EXP: Bringing the right product to customers at the right time and at the right prices means never being satisfied with current levels of product quality or supply chain performance. 14. Just as the four minute mile changed from a superhuman ideal goal to back of the pack performance, which of the following are not constantly evolving? A. Supply chains B. Markets C. Customer demand D. Improvement strategies E. Prices ANS: E EXP: Prices are not evolving constantly to ensure that todays best in class benchmark will be entry-level performance tomorrow. 15. Smokin Oakin Cigars is moving toward a lean or JIT approach to production, as a result they will need this from your suppliers in your efforts to reduce inventories and squeeze all waste out of the system: A. Compassion B. Cooperation C. Competition D. Capacity E. Communication ANS: B EXP: If you are moving toward a lean or JIT approach to production, you will need cooperation from your suppliers in your efforts to reduce inventories and squeeze all waste out of the system. 16. Raw Foods Farm Incorporated has analyzed a process, identified improvement they want to make, selected a benchmark as their target, and are now ready to do what? A. Sell the company B. Merge with another C. Implement a solution D. Establish growth E. Expand internationally ANS: C EXP: Once youve analyzed a process, identified improvement they want to make, selected a benchmark as their target, youre ready to implement the solution.

17. Roe Fish Farm, a nationwide bait and tackle company, wants to apply two techniques applied in lean quality initiatives. Which should they apply? A. Value stream mapping and takt time B. Value stream mapping and the kaizen event C. Takt time and kaizen event D. Takt time and production time E. Value stream mapping and WIP ANS: B EXP: Two techniques commonly applied in lean quality initiatives are value stream mapping and the kaizen event or kaizen blitz. 18. By developing the workforce by improved job design, training opportunities, more challenging work, more responsibility and participation at all employee levels, and more teamwork, Crochet for Less, Corp. is showing that they are adapting what supply chain system? A. Lean Supply Chain B. Takt time C. JIT D. Stream mapping E. Root cause analysis ANS: A EXP: By developing the workforce by improved job design, training opportunities, more challenging work, more responsibility and participation at all employee levels, and more teamwork a lean supply chain is in place. 19. Pinnell Copiers is implementing process improvement and taking action to do so. Which of the following is not a step in choosing KPIs and establishing baselines? A. Limit the KPIs to a workable order B. Monitor the performance of the KPIs C. Eliminate key performance indicators using a balanced scorecard approach D. Be sure the change provides a measurable and positive effect on customers E. Establish baseline measures ANS: C EXP: Key performance indicators should be established but not eliminated. 20. B&B Specialties Incorporated has analyzed a process, identified improvement they want to make, selected a benchmark as their target, and are now ready to do what? A. Sell the company B. Merge with another C. Implement a solution D. Establish growth E. Expand internationally ANS: C EXP: Once youve analyzed a process, identified improvement they want to make, selected a benchmark as their target, youre ready to implement the solution.

21. If Krispies, Inc, a dog food store is planning to increase its CPI from a holistic perspective, it should do which of the following? A. Look for people to blame and then replace B. Focus first on budgets and budget cuts C. Recognize that it is solely a management system D. Acknowledge that training needs must be assessed E. Assess the whole process and then break into parts ANS: E EXP: Continuous improvement is about the whole process, not about one of its contributing parts. 22. If All About Beads, Incprporated is looking to continually improve their company, what four keys should be implemented? A. Process, Never-Ending, Process Assessment, Process Analysis B. Process Analysis, Process Assessment, Project Planning, Small-Step Improvement C. Process, Never-Ending, Root Causes, Small-Step Improvement D. Process, Never-Ending, Process Assessment, Small-Step Improvement ANS: C EXP: The key words in the definition process are process, never-ending, root causes, and small-step improvement. 23. Crush, Inc. a nationwide chain of childrens hair styling centers, decides to make a few limited and localized changes to the overall improvement of their stores. They are finding it a bit difficult to implement all of the changes required. What is the concept they are trying to accomplish overall? A. Visibility B. Visibility and Analysis C. Process Analysis D. Continuous Improvement E. Identifying Root Causes ANS: D EXP: Continuous improvement is all about changing complex human systems one step at a time. 24. Key Largo Realty would like to improve its business in a big way, and knows that continuous improvement is crucial to its success and longevity. Why is continuous improvement evolutionary and not revolutionary? A. It sets high goals and creates dramatic change, but does so incrementally B. It is crucial to budget abiding C. It is the only way a business can be successful D. It creates change and inspiration among employees and improves productivity E. It takes things slow and slow change is necessary for success ANS: A EXP: Small-step improvement may set very high goals and may create dramatic change, but does so incrementally.

25. Why is it not possible for top management at Brisk Foods to lead and implement the improvement process while maintaining a kaizen-oriented firm? A. It is possible for management to lead and implement the improvement process because it takes leaders to get things done B. It takes leaders and employees to lead and implement and contribution must be made at every level in order to achieve continuous improvement. C. It takes time to achieve results and employees at every level should examine and give input. D. Root causes are being examined and top management is the only ones who can give imperative insight. E. A kaizen-oriented firm requires numerous meetings and a great deal of time. This principle is antiquated and no longer accepted internationally. ANS: B EXP: It is not possible to change a process without involving all those who contribute to it at every level. 26. All About Sushi, Inc. would like to improve its business in a big way, and knows that continuous improvement is crucial to its success. Why is continuous improvement evolutionary and not revolutionary? A. It sets high goals and creates dramatic change, but does so incrementally B. It is crucial to budget abiding C. It is the only way a business can be successful D. It creates change and inspiration among employees and improves productivity E. It takes things slow and slow change is necessary for success ANS: A EXP: Small-step improvement may set very high goals and may create dramatic change, but does so incrementally. 27. Carls Jr. is examining a way of setting goals by comparing themselves to others, like McDonalds and In-N-Out Burger. They are following which model? A. Benchmarking B. Six-sigma C. JIT D. Comparative analysis E. SCOR metrics ANS: A EXP: A way of setting goals by comparing yourself to someone else is called benchmarking. 28. Cascade Company is attempting to benchmark. Which of the following is not a broad approach to benchmarking? A. Competitive benchmarking B. Best-in-class benchmarking C. Process benchmarking D. Validity benchmarking E. Comparison with a leading competitor ANS: D

EXP: There are three broad approaches to benchmarking, competitive benchmarking or comparison with a leading competitor, best in class and process benchmarking. 29. Busy Bees Honey Company is a leading honey supply business, and is assessing other top performing honey supply stores in the country. Which benchmarking strategy is it targeting? A. Competitive benchmarking B. Assessment benchmarking C. Best in class benchmarking D. Root analysis benchmarking E. Top performance benchmarking ANS: C EXP: With the best in class benchmarking strategy, you look to the best anywhere to set an inspiring target instead of comparing yourself to a competitor. 30. Fit for You Fitness Equipment is focusing on reducing inventories to zero so that products always appear when they are needed and not before. This is called which of the following? A. JIT B. Six-sigma C. Competitive benchmarking D. Process benchmarking E. Lean ANS: A EXP: JIT or Just in Time is the process of focusing on reducing inventories to zero so that products always appear when they are needed and not before. 31. Cascade Lamp Supplies is adopting the six-sigma approach. Which of the following is not a key concept in the continuous improvement Six-sigma approach? A. Total quality management B. Train at all levels C. Defects defined from customer perspective D. Keep process variability within target value E. No more than 3.4 defects per million opportunities ANS: A EXP: Total quality management is a JIT approach to continuous improvement but not Six-sigma. 32. Mentors and Machines was a participating business for instituting C-TPAT security guidelines and as a result received benefits. Which of the following was not a benefit received for this company? A. Fewer inspections for reduced border time B. An assigned account manager C. Eligibility for account-based processes such as monthly payments D. Tax breaks and generalized benefits E. An emphasis on self-policing rather than customs verification ANS: D EXP: Fewer inspections, assigned account manager, access to the C-TPAT membership list, eligibility for account-based processes such as monthly payments, and an emphasis on self-policing are all benefits

received. 33. Jiffy Car Wash is experiencing some compliance issues at their company. Which of the following is not listed as a compliance issue? A. Tariffs and taxes B. Financial reporting C. Identification of transaction activities D. Environmental issues regarding materials E. Workspace cleanliness ANS: E EXP: Workspace cleanliness is not considered a compliance issue. 34. Katherine started up a business selling candy to her neighbors that her mom bought wholesale for her at Costco. What role does Jills mom fulfill as part of the supply chain? A. Retailer B. Producer C. Customer D. Manufacturing Center E. No role ANS: B EXP: The mother is the producer. 35. Carolyn started up a business selling jam in the neighborhood that her mom made for her. What role does Carolyns mom fulfill as part of the supply chain? A. Retailer B. Producer C. Customer D. Manufacturing Center E. No role ANS: B EXP: The mother is the producer who turns the ingredients into jam. 36. Carolyns mother makes the jam for Carolyns business in the home kitchen. What role within the supply chain does the kitchen play? A. Retailer B. Material Supplier C. Distributor D. Manufacturing Center E. Warehouse ANS: D EXP: The kitchen is the manufacturer center where the jam is made. 37. Benton PUD dispenses its services into what three distribution channels? A. Home customers, Manufacturers, Fuel Suppliers

B. Commercial customers, Programming services, Other utilities C. Home customers, Commercial Customers, Other utilities D. Other utilities, Distributors, Marketing agency E. Other utilities, Manufacturers, Fuel Suppliers ANS: C EXP: It receives products, services and supplies of its own and dispenses its services into three distribution channels: home customers, commercial customers, and other utilities. 38. Mail by the Mall just hired Merry Maids as their new janitorial service. Where would Merry Maids best fit within the structure of the supply chain of Mail by the Mall? A. Tier 1 service provider B. Tier 1 materials provider C. Distributor D. Tier 2 service provider E. Stakeholder ANS: A EXP: Merry Maids would best be described as a tier 1 service provider within the supply chain of Mail by the Mall. 39. IBS Systems would like to create a supply chain. What should they know about supply chain management creation? A. Lower Costs B. Higher Gross Sales C. Net Value D. Less Taxation E. Higher Stock Prices ANS: C EXP: SCM is about creating net value 40. IBS Systems would like to implement SCOR. Which does not apply to SCORs activities? A. Plan B. Source C. Make D. Market E. Deliver ANS: D EXP: Market is outside of one of the five SCOR defined processes. 41. IBS Systems would like to implement SCOR. Which of the following does SCOR not address? A. Information technology B. Product engineering C. Warehousing D. Product inventories E. Return of defective products

ANS: A EXP: SCOR does not address the following but assumes they exists; Training, Quality, Information Technology, Administration (other than SCM Administration). 42. IBS Systems would like to implement SCOR. Which of the following is not part of the SCOR planning process? A. Align the supply chain unit plan with the financial plan B. Balance resources with requirements C. Manage business rules D. Schedule deliveries E. Manage supply chain performance ANS: D EXP: Scheduling deliveries is part of the Source process. 43. Intricate Landscape, Inc. would like to implement SCOR. Which is the main intent of the SCOR model, as stated by the Supply-Chain Council (SCC)? A. Enhance the understanding of supply chains and associated processes and to improve supply chain performance B. Understand all customer transactions from order entry through paid invoice C. Enhance all market interactions from understanding aggregate demand through order fulfillment D. Describe, measure, and improve the supply chain process in Your Company E. Improve sales and marketing strategies 44. Intricate Landscape, Inc. would like to implement SCOR. What is the most important point to remember about the SCOR model? A. Distribution B. Strategic planning C. Reverse flow of information D. Manufacturing processes E. Processes ANS: E EXP: The most important point to remember from this introduction to the model is the focus on processes. 45. Intricate Landscape, Inc. would like to implement SCOR and get things moving at their company. The SCOR model provides useful guidance in developing cross functional as well as what other type of approach to managing the supply chain process? A. Cross-cultural B. Cross-training C. Cross-company D. Cross-distributing E. Cross-administering ANS: C EXP: The SCOR model provides useful guidance in developing cross functional, cross company

approaches to managing supply chain processes. 46. Bruchis Deli has abandoned the idea of vertical integration and is now outsourcing to India all of their packaging needs and materials. What is a negative aspect of switching to a lateral strategy such as outsourcing? A. More difficult to achieve economies of scale and scope B. Business expertise and focus weakens C. Communication technology becomes less effective D. Pricing and quality go down E. Synchronizing the activities of a lateral chain of independent firms is more challenging ANS: E EXP: Despite the attractions of a lateral chain, however, the fact remains that synchronizing the activities of a network of independent firms can be enormously challenging. 47. P.F. Changs has taken on some initiatives to move from a multiple dysfunctional enterprise to a semi functional enterprise. Which of the following is not an example initiative of a semi functional enterprise? A. Largely manual operations in warehouses may be augmented by the addition of basic materialshandling equipment B. Inventory management may find ways to reduce levels of inventory within the firms own facilities. C. Procurement might take advantage of new purchasing strategies to obtain supplies and services at the lowest possible prices. D. Marketing may develop more reliable research and forecasting techniques E. Management may develop new training programs such as needs-based selling, coaching, career development, and effective communication skills. ANS: E EXP: Management developing new training programs such as needs-based training, coaching, career development, and effective communication skills are initiatives put in place by a integrated enterprise. 48. Big Boy Auto Company, which started out as a single dealership, has a vertical supply chain owning all links within its supply chain. The company is experiencing explosive growth and is planning on opening up an additional 500 dealerships nationwide calling for them to switch to a lateral supply chain. Which of the following is a benefit of lateral supply chain management? A. The ability to be self-sufficient B. All divisions are completely visible to the parent company C. The ability to remain in control D. All company operations can be synchronized by directives from the top. E. The ability to outsource least effective areas of the business. ANS: E EXP: The ability to outsource least effective areas of a business is a benefit of a lateral supply chain not a vertical supply chain.

49. Christos Supply is in a lateral chain. What are separately owned companies able to focus better on compared to companies with vertical supply chains? A. Outsourcing B. Diversification C. Control D. Core competencies E. Production ANS: D EXP: In a lateral chain, separately owned firms are able to focus on core competencies. 50. Derriere Diapers and More, LLC makes baby products and has a vertical supply chain. What is the main benefit of having a vertical supply chain? A. Parent company has visibility of other functions B. Control C. Ability to achieve economies of scale D. Improved business focus E. Higher quality ANS: Control EXP: The primary benefit of vertical integration is control. 51. Sesby and Me Electronics is a Japanese company that favors an intermediate form of integrating their supply chain operations called keiretsu. What is the relationship between suppliers and customers like in this type of integration? A. Suppliers and customers are completely dependent of each other B. Suppliers and customers are not completely dependent of each other C. Suppliers and customers are completely independent of each other D. Suppliers and customers are not completely independent of each other E. Suppliers and customers have no relationship with each other ANS: D EXP: Japanese companies favor an intermediate form of integration called keiretsu, in which suppliers and customers are not completely independent but instead own significant stakes in one another. 52. Cisco Auto Parts has been more astute in segmentation of markets and the development of more efficient replenishment policies suited to each segment which has caused improvements in which department? A. Purchasing B. Research and Development C. Customer Service D. Distribution E. Warehousing ANS: C EXP: Other advances in Stage 3 include improvements in customer service arising from more astute in segmentation of markets and the development of more efficient replenishment policies suited to each segment.

53. Flounder Optometry has made significant improvements in advanced equipment and automation which benefits which of the following? A. Purchasing B. Customer Service C. Logistics D. Distribution E. Warehouse management ANS: E EXP: Warehouse management benefits from advanced equipment and automation. 54. To improve their supply chain Hot Topic has implemented Just-In-Time procedures, more accurate demand planning and improved logistics. The result has been which of the following? A. Purchasing B. Customer Service C. Logistics D. Distribution E. Warehouse management ANS: E EXP: Warehouse management benefits from advanced equipment and automation. 55. Miscellaneous Solutions, wants to make decisions along the chain regarding the right design, the right production, and the right materials. All must be coordinated in order to achieve the appropriate level of which of the following? A. Price B. Products made C. Popularity with consumers D. Quality E. Profit ANS: D EXP: Decisions all along the chain have to be coordinated to get the appropriate level of quality through the right decision, the right production, and the right materials. 56. Which of the following does SCOR Version 7.0 NOT apply to? A. Lateral integration B. Vertical integration C. Horizontal integration D. Corporate integration E. Supply chain integration ANS: B EXP: By bringing much supply chain activities in-house and putting them under corporate management vertical integration solves the problem of who will design, plan, execute, monitor, and control supply chain activities.

57. KB Toys is making supply chain decisions in order to maintain success. The primary driver of supply chain decisions should be which of the following? A. Serving partners within the supply chain B. Serving all stakeholders C. Serving the end user customer D. Serving the manufacturing partners E. Cutting the cost of utility costs throughout the entire supply chain ANS: C EXP: First, serving the end user customer is the primary driver of supply chain decisions. 58. Kalamazoo Industries is initiating a supply chain. Where does the chain of demand begin on the supply chain? A. The far retail end of the supply chain B. Raw material provider C. Manufacturer D. Distributor E. Utility provider ANS: A EXP The chain of demand beings on the far retail end of the supply chain. 59. According to Robert J. Trents Article What Everyone Needs to Know About SCM Which of the following is not a part of the supply chain? A. Warehouse that stores the product B. Customer service department C. Manufacturer of the product D. Public Utility that supplies power to the company E. Farmer who grows the product to be stored in the warehouse ANS: Customer Service Department. EXP: Customer Service supports the supply chain but is not part of it. 60. Henry Ford is often mentioned as a successful example of which approach to supply chain management? A. Lateral integration B. Vertical integration C. Horizontal integration D. Diagonal integration E. Outflow integration ANS: B EXP: Henry Ford often receives mention as an especially successful avatar of vertical integration. 61. Carrie and her sister Jann are starting up a new online business. They would like to make sure their supply chain creates value in every area. Which of the following is not one of the three types of values that supply chains create?

A. Retail B. Financial C. Customer D. Social ANS: A EXP: The three types of value that supply chains can and must create: financial value, customer value, and social value. 62. Uppity Updo Salon and Spa like to establish a vertical supply chain management system. Vertical integration refers to the practice of bringing the supply chain inside how many organizations? A. 2 B. 1 C. 4 D. 3 E. 0 ANS: 1 EXP: Vertical integration refers to the practice of brining the supply chain inside one organization. 63. Chicos Tacos Incorporated is in a lateral chain and would like to know what benefits exist in a lateral chain. What are separately owned companies able to focus better on compared to companies with vertical supply chains? A. Outsourcing B. Diversification C. Control D. Core competencies E. Production ANS: D EXP: In a lateral chain, separately owned firms are able to focus on core competencies. 64. Eggo Egg Company has obtained a new focus on cross functional collaboration. The companies that have been developing new training programs and knowledge bases include which of the following types of skills? A. Technology and public speaking skills B. Management and conflict resolution skills C. Team building and selling skills D. Hard and soft skills E. Coaching and leadership skills ANS: D EXP: Along with the new focus on cross functional collaboration, companies have been developing new training programs and knowledge bases that include hard and soft skills. 65. Which is Eggo Egg Companys most powerful way to gain an edge on the competition, to move faster, and deliver more value? A. Cutting costs

B. Increasing manufacturers C. Increasing logistical partners D. Designing and building the right supply chain E. Hiring low cost employees ANS: D EXP: Designing and building the right supply chain may just be the most powerful way to gain an edge on the competition, to move faster, and deliver more value. 66. Activities that are planned and coordinated between two or more entities of the supply chain are known as which of the following? A. Management activities B. Strategic activities C. Coordinated activities D. Value-creating activities E. Efficiency activities ANS: D EXP: Activities that are planned and coordinated between two or more entities of the chain are valuecreating activities. 67. Cost Less Carpet is setting up a supply chain and has acquired direct relationships with other companies. What part of the supply chain has a direct relationship with the end user and actually sees that person or entity? A. Distributer B. Manufacturer C. Sales person D. Manager E. Retailer ANS: E EXP: But only the retailer actually sees the end user and has a direct relationship with that person or entity. 68. Cost Less Carpet is implementing the bull whip effect into their way of business. What is the bullwhip effect driven by? A. Production times B. Demand forecasts C. Manufacturing processes D. Selling quotas E. Reverse cash flow ANS: B EXP: The bullwhip effect is driven by demand forecasts. 69. Cost Less Carpet is implementing the bull whip effect into their way of business. What solution will the bullwhip effect provide the company with? A. Substitute actual information for the demand forecasts

B. Speed up manufacturing times C. Make more efficient logistical plans to speed up routs D. Better locate distribution centers E. Automate all warehousing activities ANS: A EXP: The bullwhip effect is driven by demand forecasts; the solution is to substitute actual information for the demand forecasts. 70. Pampered Chef Inc. is experiencing some challenges in business and requires clarification. What is the challenge in changing from forecast-driven to demand-driven? A. Reducing inventory without lowering profit margins B. Reducing inventory without raising fixed costs C. Reducing inventory without lowering customer satisfaction D. Reducing inventory without lowering quality E. Reducing inventory without lowering availability ANS: C EXP: The challenge in changing from forecast-driven to demand-driven, from push to pull is reducing inventory without also lowering customer satisfaction. 71. Zappos.com operates in a demand-driven system and when properly managed can actually enhance customer service while reducing what? A. Costs B. Inventory C. Reverse cash flow D. Manufacturing mistakes E. Logistical costs ANS: A EXP: A demand driven system, when properly managed can actually enhance customer service while reducing. 72. FTD Florists wants to build a demand-driven system. Building a demand-driven enterprise requires significant changes in which of the following? A. Manufacturing speed B. Distribution location C. Purchasing expense D. Return processes E. All supply chain processes ANS: E EXP: Building a demand-driven enterprise can require significant changes in all supply chain processes. 73. Continuous improvement at RST Incorporated includes the elimination of what factor discovered in the system no matter what the source, whether internal or external? A. Waste reduction B. Production materials

C. Pulling materials into production D. Variability reduction E. Buffers ANS: D EXP: Continuous improvement includes the elimination of variability discovered in the system no matter what the source, whether internal or external. 74. MAC Cosmetics noticed some erratic and unpredictable changes in company performance. Delivery has changed and slowed due to company cutbacks. This issue could cause which of the following? A. Disgruntled and unhappy customers B. Employee clean-up appreciation C. An increase in customer retention D. Good scores on company survey E. Six-sigma initiatives ANS: A EXP: This may well produce enough disgruntled customers that a significant number would shift business to the more predictable carrier. 75. Simplicity First, a home management corporation, is setting up JIT production. Which of the following is not listed as a benefit feature of JIT or Just in Time Production? A. Inventory reduction B. Labor cost reduction C. Material cost reduction D. Improved vendor relationship E. Overcoming client dissatisfaction ANS: E EXP: JIT benefits include inventory reduction, labor cost reduction, and material cost reduction, improved vendor relationship, and manufacturing cycle time reduction. 76. When a process measurably fails to meet customer requirements by producing more than 3.4 defects per million opportunities which principle offers a set of tools for developing solutions? A. Lean B. JIT C. Root cause analysis D. Six-sigma E. Quality control ANS: D EXP: When a process measurably fails to meet customer requirements by producing more than 3.4 defects per million opportunities six-sigma offers a set of tools for developing solutions. 77. Beauty Inc. wants to start mapping. There are several types of processes within a company that can be mapped. Which process is not one that is normally mapped? A. Financial transactions B. Information flow

C. Manufacturing flow D. Budget and cash flow E. Employee satisfaction ANS: E EXP: All types of processes can be mapped but the most common include manufacturing flow, information flow, or the stages of a financial transaction. 78. Throughout process analysis, the first order of business is to develop a thorough description of the process. Several techniques exist in this, but the most widely and successful applied is known as which of the following? A. Control Charting B. Process Mapping C. Finding root causes D. Root cause analysis E. Strategic planning ANS: B EXP: Process mapping is the most widely and successful process applied. 79. Why is it not possible for management at Cal Tech Business Solutions to lead and implement the improvement process while maintaining a kaizen-oriented firm? A. It is possible for management to lead and implement the improvement process because it takes leaders to get things done B. It takes leaders and employees to lead and implement and contribution must be made at every level in order to achieve continuous improvement. C. It takes time to achieve results and employees at every level should examine and give input. D. Root causes are being examined and top management is the only ones who can give imperative insight. E. A kaizen-oriented firm requires numerous meetings and a great deal of time. This principle is antiquated and no longer accepted internationally. ANS: B EXP: It is not possible to change a process without involving all those who contribute to it at every level. 80. Clams and Creatures, Inc. has implemented exponential smoothing software in their demand planning. Which of the following is not part of the exponential smoothing equation? A. Last periods forecast B. A smoothing constant C. Last periods actual demand D. Last periods expenses ANS: D EXP: The exponential smoothing equation requires only 3 basic terms: the last periods forecast, the last periods actual demand, and a smoothing constant. 81. Which of the following basic techniques of forecasting uses the most recent period to forecast demand for the next period?

A. Exponential smoothing B Weighted moving averages C. Moving Averages D. Informed E. Nave ANS: C EXP: Moving averages uses the most recent period to forecast demand for the next period. 82. Furry Toys and More, LLC shows that sales are increasing because of changes in the population. This increase will be reflected as which of the following in the data? A. Trend B. Cycle C. Seasonality D. Variability E. Probability ANS: A EXP: A steady movement up or down represents a trend in the data, for example because of change in the population. 83. Extrinsic forecasting techniques are known as which of the following because they analyze data on conditions thought to be associated with changes in demand for a particular item or group of items. A. Forecasting series models B. Time series models C. Quality time series models D. Associative models E. Relational models ANS: D EXP: Extrinsic forecasting techniques are known as associative models because they analyze data on conditions thought to be associated with changes in demand for a particular item or group of items. 84. Futons and More, Inc. is noticing their furniture sales increase due to the increase in housing sales in the area. Which sort of forecasting technique is this? A. Extrinsic B. Historic C. Intrinsic D. Internal E. External ANS: A EXP: Extrinsic forecasting bases their predictions on factors related to demand for the product. 85. Intrinsic forecasting techniques are known as which of the following because they incorporate data collected during set intervals of time hours, days, weeks, months? A. Forecasting series models B. Time series models

C. Quality time series models D. Timeframes ANS: B EXP: Intrinsic techniques are known as time series models because they incorporate data collected during set intervals of time hours, days, weeks, months. 86. Which of the following incorporates data collected during set intervals of time? A. Extrinsic B. Historic C. Internal D. External E. Intrinsic ANS: E EXP: Intrinsic forecasting techniques are known as which of the following because they incorporate data collected during set intervals of time hours, days, weeks, months. 87. Inward Creations, Inc. desires to move final product configuration closer to the customer. Which of the following is the practice of moving final product configuration closer to the customer? A. Mass customization B. Seasonality C. Universality D. Modular Design E. Cycle ANS: A EXP: Mass customization is the practice of moving final product configuration closer to the customer. 88. The purpose of which of the following, is to establish rules for the relationship, define the mix of products, and develop plans for upcoming events? A. Demand and supply management B. Strategy and planning C. Execution D. Order fulfillment E. Order generation ANS: B EXP: The purpose of strategy and planning is to establish rules for the relationship, define the mix of products, and develop plans for upcoming events. 89. Which of the following involves setting business goals, defining the scope of collaboration, and assigning roles, responsibilities, checkpoints, and escalation procedures? A. Joint business plan B. Order fulfillment C. Collaboration management D. Sales forecasting E. Execution

ANS: C EXP: Collaborations management involves setting business goals, defining the scope of collaboration, and assigning roles, responsibilities, checkpoints, and escalation procedures. 90. Cascade Enterprises is taking the CE approach toward supply chain design. One of the first steps along the path toward supply-chain-oriented design is sometimes called CE for short. What does CE stand for? A. Communicative enterprise B. Capacity engineering C. Concurrent engineering D. Concurrent enterprise E. Capital engineering ANS: C EXP: One of the first steps along the path toward supply-chain-oriented design is sometimes called CE, or concurrent engineering. 91. Which of the following is a major tradeoff in mass customization? A. Stimulates competition B. Drives marketing changes C. Staff complacency D. Potential friction with distributors who dont want added tasks ANS: D EXP: One of the major tradeoffs in mass customization is potential friction with distributors who dont want added tasks. 92. Costs of investing in equipment and training to enable distributors to assemble the product is a tradeoff in which of the following? A. Mass customization B. Universality C. Modular design D. Component commonality E. Mass communication ANS: A EXP: One of the tradeoffs of mass customization is costs of investing in equipment and training to enable distributors to assemble the product. 93. EZ Cheeses, Inc. is conducting some market research. Which of the following is not an example of market analysis? A. Product potential studies B. Determining size C. Determining the characteristics of the market D. Determining location E. Historical analogy ANS: E

EXP: Historical analogy is not an example of market analysis. 94. Golf Pro Shoppe, Inc. is conducting some market research. Market research includes all of the following except which of the following? A. Sales analysis B. Consumer research C. Market analysis D. Product potential studies E. Pyramid forecasting ANS: E EXP: Market research does not include pyramid forecasting. 95. Aspire Inc. is examining the tradeoffs of areas in business. Costs of investing in equipment and training to enable distributors to assemble the product is a tradeoff in which of the following? A. Mass customization B. Universality C. Modular design D. Component commonality E. Mass communication ANS: A EXP: One of the tradeoffs of mass customization is costs of investing in equipment and training to enable distributors to assemble the product. 96. Investing in mutual funds rather than individual securities, at least in theory, benefits from the same principle as which of the following? A. Forecasting B. Forecasting sales C. Risk pooling D. Demand forecasting E. Pooling inventory ANS: C EXP: Investing in mutual funds rather than individual securities, at least in theory, benefits from the same principle as risk pooling. 97. Casper, Inc. is classifying their demand into two types. Which of the following is a type of demand that this company should use as classification? A. Dependant B. Risk C. Dominant D. Pooled E. Demand ANS: A EXP: Demand can be classified into two types: dependant and independent.

98. REST, Inc. is reducing inventory costs, because aggregation of demand increases the accuracy of forecasts and allows each region to reduce its inventory. This is a benefit of which of the following? A. Mass customization B. Universality C. Modular design D. Integral design E. Component commonality ANS: A EXP: Reducing inventory costs, because aggregation of demand increases the accuracy of forecasts and allows each region to reduce its inventory is a benefit of mass customization. 99. REST, Inc. is reducing increasing its sales volume because of appeal of differentiated products to different markets. This is a benefit of which of the following? A. Mass customization B. Universality C. Modular design D. Component commonality E. Mass communication ANS: A EXP: Reducing inventory costs, because aggregation of demand increases the accuracy of forecasts and allows each region to reduce its inventory is a benefit of mass customization. 100. All wholesalers who order the same brand or style of blue jeans can assist the manufacturer in improving forecasting accuracy and which of the following? A. Forecasting near-term demand B. Forecasting long-term demand C. Pooling the demand forecasts D. Assessing the errors E. Pooling errors and examining data ANS: C EXP: A manufacturer can improve forecasting accuracy by pooling the demand forecasts for all customers who order the same product.

1. Sporting Goods Inc. is basing their prediction of sales on factors related to demand for specific products. Which of the following bases their predictions on factors related to demand for the product? A. Extrinsic B. Historic C. Intrinsic D. Internal E. External ANS: A EXP: Extrinsic forecasting bases their predictions on factors related to demand for the product.

2. California Orange Juice, Inc. is examining graphs during a nationwide sales meeting. A time series based on sales data seldom graphs as a straight line. Instead it is liable to show some combination of four types of which of the following? A. Variability B. Probability C. Forecasting overall D. Cycles E. Data forecasting ANS: A EXP: A time series based on sales data seldom graphs as a straight line. Instead it is liable to show some combination of four types of variability. 3. Going Bananas, Inc. is examining intrinsic techniques within their company. Intrinsic forecasting techniques are known as which of the following because they incorporate data collected during set intervals of time such as hours, days, weeks, months? A. Forecasting series models B. Time series models C. Quality time series models D. Timeframes ANS: B EXP: Intrinsic techniques are known as time series models because they incorporate data collected during set intervals of time hours, days, weeks, months. 4. Ace of Cakes shows that sales are increasing because of changes in the population. This increase will be reflected as which of the following in the data? A. Trend B. Cycle C. Seasonality D. Variability E. Probability ANS: A EXP: A steady movement up or down represents a trend in the data, for example because of change in the population. 5. Bridal Details Inc. is noticing some variation that occurs randomly and cannot be explained. Variation that occurs randomly and can neither be predicted nor explained after the fact refers to which of the following? A. Circumstance B. Unforeseen forecasting C. Probability D. Seasonality E. Chance ANS: E EXP: Variation that occurs randomly and can be predicted nor explained after the fact refers to chance.

6. Chez Montaine Inc. Restaurant Supplies assumes demand will always be the same regardless of which time period. Which of the following assumes demand in the next time period will be the same as demand in the last time period? A. Nave B. Informed C. Moving average D. Weighted moving average E. Exponential smoothing ANS: A EXP: Nave forecasting assumes that demand in the next time period will be the same as demand in the last time period. 7. Cell Phone Covers Inc. wants orders to not vary in number so much from time to time. Which of the following mitigates the effects of random variation, so that orders dont vary in number quite so much from time to time? A. Exponential smoothing B Weighted moving averages C. Moving Averages D. Informed E. Nave ANS: C EXP: Moving averages uses the most recent period to forecast demand for the next period. 8. This approach requires that the retailer provide point-of-sale (POS) information to the supplier. This approach is referred to as which of the following? A. Quick response strategy B. Fast response strategy C. Slow response strategy D. Open communication strategy E. Capitol communication strategy ANS: A EXP: Quick response strategy often that the retailer provides point-of-sale (POS) information to the supplier. 9. Decorative Cake Stylings, Inc. has implemented exponential smoothing software in their demand planning. Which of the following is not part of the exponential smoothing equation? A. Last periods forecast B. A smoothing constant C. Last periods actual demand D. Last periods expenses ANS: D EXP: The exponential smoothing equation requires only 3 basic terms: the last periods forecast, the last periods actual demand, and a smoothing constant.

10. In the traditional customer-vendor relationship, the customer stocks its shelves with products that it buys from a supplier, basing its orders upon which of the following? A. Demand forecasts B. Supply forecasts C. Continuous replenishment D. Seasonal swings E. In-store promotions ANS: A EXP: In the traditional customer-vendor relationship, the customer stocks its shelves with products that it buys from a supplier, basing its orders upon demand forecasts. 11. Blue Moon Restaurant is always running out of food and disappointing its customers, and ultimately causing sales to drop. How can the restaurant change this? A. Forecast demand by hour, day, week, etc. B. Stock more perishable items C. Order more food D. Close the store when this happens E. Make an alternative menu ANS: A EXP: Restaurants, or service sector, must take into account variations in amount and type by hour of day, day of week, and season of year. 12. Pie Crusts International is looking for basic techniques of forecasting and determining which to use. Which of the following basic techniques of forecasting uses the most recent period to forecast demand for the next period? A. Exponential smoothing B Weighted moving averages C. Moving Averages D. Informed E. Nave ANS: C EXP: Moving averages uses the most recent period to forecast demand for the next period. 13. Echo Field Farms is running some calculations to make some determinations on their sales and projected sales. Which of the following is simply the difference between the actual demand and the forecast? A. Forecast error B. Demand C. Sum of errors D. Forecast number E. Smoothing constant ANS: A EXP: Forecast error is simply the difference between the actual demand and the forecast.

14. VMI involves a tradeoff between control and which of the following for customer and supplier? A. Moving averages B. Inventory management costs C. Smoothing constant D. Forecast E. Replenishment ANS: B EXP: VMI involves a tradeoff between control and inventory management costs for customer and supplier. 15. Ruby Imports and Fancy Import are in the traditional customer-vendor relationship, the customer stocks its shelves with products that it buys from a supplier, basing its orders upon which of the following? A. Demand forecasts B. Supply forecasts C. Continuous replenishment D. Seasonal swings E. In-store promotions ANS: A EXP: In the traditional customer-vendor relationship, the customer stocks its shelves with products that it buys from a supplier, basing its orders upon demand forecasts. 16. CitiFinancial Group wants orders to not vary in number so much from time to time. Which of the following mitigates the effects of random variation, so that orders dont vary in number quite so much from time to time? A. Exponential smoothing B Weighted moving averages C. Moving Averages D. Informed E. Nave ANS: C EXP: Moving averages uses the most recent period to forecast demand for the next period. 17. Java Beans Espresso Co. has implemented exponential smoothing software in their demand planning. Which of the following is not part of the exponential smoothing equation? A. Last periods forecast B. A smoothing constant C. Last periods actual demand D. Last periods expenses ANS: D EXP: The exponential smoothing equation requires only 3 basic terms: the last periods forecast, the last periods actual demand, and a smoothing constant.

18. The purpose of which of the following, is to establish rules for the relationship, define the mix of products, and develop plans for upcoming events? A. Demand and supply management B. Strategy and planning C. Execution D. Order fulfillment E. Order generation ANS: B EXP: The purpose of strategy and planning is to establish rules for the relationship, define the mix of products, and develop plans for upcoming events. 19. Which of the following involves setting business goals, defining the scope of collaboration, and assigning roles, responsibilities, checkpoints, and escalation procedures? A. Joint business plan B. Order fulfillment C. Collaboration management D. Sales forecasting E. Execution ANS: C EXP: Collaborations management involves setting business goals, defining the scope of collaboration, and assigning roles, responsibilities, checkpoints, and escalation procedures. 20. In which of the following does the manufacturer analyze market data, while the retailer undertakes replenishing planning? A. Order generation B. Sales forecasting C. Order planning D. Demand and supply management E. Analysis ANS: B EXP: In sales forecasting, the manufacturer analyze market data, while the retailer undertakes replenishing planning. 21. The manufacturer at Chicos analyzes market data, while retailer undertakes replenishing planning. Which of the following is going on in this scenario? A. Order generation B. Order Planning C. Sales forecasting D. Demand and supply management E. Analysis ANS: C EXP: In sales forecasting, the manufacturer analyze market data, while the retailer undertakes replenishing planning.

22. According to Kerosene Inc. the manufacturer does production and supply planning, while the retailer conducts the activities associated with buying. Which is one of the execution tasks? A. Order fulfillment B. Order processing C. Order generation D. Order type E. Order reduction ANS: C EXP: In order generation the manufacturer does production and supply planning, while the retailer conducts the activities associated with buying. 23. According to Crossroads Refinery the execution task that involves logistics and distribution management for both manufacturer and retailer? A. Order fulfillment B. Order processing C. Order generation D. Order type E. Order reduction ANS: A EXP: Order fulfillment is the execution task that involves logistics and distribution management for both manufacturer and retailer. 24. B&B Sporting Goods is in the analysis phase and the supply chain partners monitor planning execution activities to identify exceptions. B&Bs analysis involves which of the following? A. Exception management B. Performance assessment C. Order generation D. Order type E. Performance reduction ANS: B EXP: Performance assessment is when the supply chain partners monitor planning execution activities to identify exceptions. 25. Eggs and Hens Inc. is demand planning. Demand planning begins with the introduction of a product and continues throughout which of the following? A. Life cycle B. Trend C. Demand state D. Placement curve E. Market trend ANS: A EXP: Demand planning begins with the introduction of a product and continues throughout the life cycle.

26. Which of the following at Eggs and Ham, Inc. involves setting business goals, defining the scope of collaboration, and assigning roles, responsibilities, checkpoints, and escalation procedures? A. Joint business plan B. Order fulfillment C. Collaboration management D. Sales forecasting E. Execution ANS: C EXP: Collaborations management involves setting business goals, defining the scope of collaboration, and assigning roles, responsibilities, checkpoints, and escalation procedures. 27. Cakes and More, Inc. has a new product. They are aware that most new products fail. What is not a way that they can get their product noticed and gain success? A. Educating customers B. Educating supply chain customers C. Pricing product high D. Placement E. Packaging ANS: C EXP: Pricing the product at the right price will allow product to penetrate the market. 28. In the analysis phase at ULINE BOX Co, the supply chain partners monitor planning execution activities to identify exceptions. Analysis involves which of the following? A. Exception management B. Performance assessment C. Order generation D. Order type E. Performance reduction ANS: B EXP: Performance assessment is when the supply chain partners monitor planning execution activities to identify exceptions. 29. Mint and More, LLC is looking at the QR strategy or quick response strategy. The QR can achieve significant reductions in which of the following? A. Continuous replenishment B. Lead times C. Prices D. Marketing E. Supply cost ANS: B EXP: The QR strategy or quick response strategy can achieve significant reductions in lead times. 30. At Plastic Wares, Co. the execution task that involves logistics and distribution management for both manufacturer and retailer? A. Order fulfillment

B. Order processing C. Order generation D. Order type E. Order reduction ANS: A EXP: Order fulfillment is the execution task that involves logistics and distribution management for both manufacturer and retailer. 31. Which of the following technique will enable management at Pages and More, LLC to review and adjust forecasts made at an aggregate level and to keep lower-level forecasts in balance? A. Historical analogy B. Pyramid forecasting C. Demand forecasting D. Supply forecasting ANS: B EXP: Pyramid forecasting technique enables management to review and adjust forecasts made at an aggregate level and to keep lower-level forecasts in balance. 32. Instituting CPFR and realizing its benefits may require meeting several predictable challenges including which of the following? A. Increased costs B. Decreased costs C. Market research D. Product management E. New product introduction ANS: A EXP: Instituting CPFR and realizing its benefits may require meeting increased costs. 33. As marketing researchers become better acquainted with prospects, they may contribute to which of the following? A. Market research B. Product design C. Product management D. Increased cost E. New product introduction ANS: B EXP: Marketing researchers become better acquainted with prospects; they may contribute to product design.