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Module 1

Question 1
All of the following are key components of the definition of supply chain management,
A. monitoring of supply chain activities with the objective of creating net value
B. synchronizing of supply and demand
C. building a competitive infrastructure
D. selecting suppliers
Question 2
Which of the following is a key supply chain process?
A. forecast
B. source
C. benchmark
D. analyze
Question 3
Supply chains create value by:
A. increasing profitability and return to shareholders
B. providing multiple variants of products for customers
C. making transaction processing more efficient
D. developing more accurate forecasts
Question 4
Which of the following is not an entity of a supply chain?
A. producer
B. supplier
C. customer
D. manager
Question 5
Which of the following describes the typical flow of cash in a supply chain?

A. customer to producer to supplier

B. producer to customer to supplier
C. supplier to producer to customer
D. customer to supplier to producer
Question 6
Suppliers provide all of the following to a supply chain, EXCEPT:
A. materials
B. energy
C. services
D. demand
Question 7
All of the following describe a supply chain flow, EXCEPT:
A. the flow of physical materials and services from supplier to other entities
B. the flow of cash upstream to raw material suppliers
C. the flow of information within a supply chain
D. the flow of employees from one department to another
Question 8
Reverse supply chain is employed for the following reasons, EXCEPT:
A. repairs
B. disposal
C. recycling
D. quality control
Question 9
Tier 2 suppliers:
A. provide materials or services to suppliers of the producer
B. provide lower quality raw materials
C. serve only as a back-up to Tier 1 suppliers
D. supply raw materials to the secondary products of a company

Question 10
Which of the following best describes the term lateral supply chain?
A. processes are no longer performed internally and become dependent on outsourced
B. the supply chain grows incrementally
C. a supply chain that is applicable in various industries
D. a supply chain that holds significant centralized control of processes

Module 2
Question 1
What condition describes the magnification of demand fluctuations up the supply chain?
A. bullwhip effect
B. demand variability
C. exponential smoothing
D. square root rule
Question 2
Each of the terms below are sources of demand variability, EXCEPT:
A. competition
B. seasonality
C. life cycle trends
D. manufacturing delays
Question 3
What is one cause of the bullwhip effect?
A. lead times
B. seasonality
C. weather
D. quality control
Question 4
Each of the following is an approach to avoiding multiple forecasts, EXCEPT:
A. information sharing

B. system integration
C. vendor-managed inventory (VMI)
D. transactional processing
Question 5
What is one way to reduce the contribution of lead time to the bullwhip effect?
A. reducing order batch size
B. time management
C. prioritization
D. cost reduction
Question 6
Which of the following is true about forecasting?
A. It should be done once a year
B. It should be conducted by the supply chain leadership
C. It is more accurate for groups than for individual items
D. It is better to under-forecast rather than over-forecast
Question 7
Independent demand is best defined by:
A. demand for the finished product
B. demand forecast of an unbiased third party provider
C. demand that is based on actual orders
D. demand for manufacturing raw materials
Question 8
When do corporations employ qualitative forecasting?
A. When products are low value
B. When products are at the end of life stage
C. For new product introductions
D. When reliable historical sales data is available
Question 9

Intrinsic forecasting focuses on:

A. data about demand for the product itself
B. variables that affect the demand of the product
C. leveraging the collective experience possessed by employees
D. the inherent value of the product to the customer
Question 10
Which of the following is true about nave forecasting?
A. assumes the demand will be consistent from one period to the next
B. makes educational guesses on demand for a new product
C. request input from employees outside of the supply chain
D. it is an error prone forecast

Module 3
Question 1
Customer relationship management (CRM) is best described as:
A. a focus on managing long term supplier relationships
B. a marketing philosophy based on putting the customer first
C. managing customers to promote your products
D. transactional guidelines when dealing with customers
Question 2
One general goal of supplier relationship management (SRM) is:
A. ensure mutual profitability while meeting customer needs
B. manage supplier costs
C. build relationships with as many suppliers as possible
D. improve negotiation process
Question 3
What impact has the focus on CRM and SRM had on business mindset?
A. lower costs
B. greater integration

C. shorter cycle times

D. focus on bottom-line results
Question 4
What is a key reason for the move to greater integration with suppliers?
A. consolidation of the industry
B. technology transfer
C. improved relationships
D. reduce complexity
Question 5
All of the following are typical requirements when implementing CRM and SRM EXCEPT:
A. new job definitions
B. new organization structure
C. new corporate vision
D. new technology platform
Question 6
Independent organizations that cooperate based on mutual values and act as a single entity is
called a:
A. lateral organization
B. integrated supply chain
C. lean supply chain
D. virtual organization
Question 7
What role has technology played in CRM?
A. It has made it easier for business to gather information on customer buying habits
B. It has spawned new software companies
C. It has changed the roles of participants
D. It has reduced the complexity of the supply chain
Question 8

Technology has played all of the following roles in SRM, EXCEPT:

A. Systems can show current status of operations
B. Suppliers can communicate with customers in real time
C. Transactional processes can be automated
D. Security enhancements now effectively segregate enterprise business processes
Question 9
Based on the APICS definition of SRM, a firm will implement this philosophy with:
A. all tier 1 type suppliers
B. a selected group of suppliers
C. all suppliers
D. a few suppliers who are deemed indispensable
Question 10
A firm that has a customer first marketing philosophy practices:

Module 4
Question 1
Which one is NOT among the three largest companies presently providing ERP software:
B. Oracle
C. Microsoft
D. Sybase
Question 2
All of the following are key characteristics of enterprise resource planning (ERP) systems
A. modularized business applications
B. common data source

C. seamless integration enabling the flow of information throughout the firm

D. normalized application structure
Question 3
All of the following are key to maximizing the ROI of an ERP system EXCEPT:
A. hiring skilled employees and providing adequate training
B. system monitoring and constraint improvement
C. early global launch
D. business process mapping
Question 4
The MOST significant characteristic of leadership in determining the value realized by an
ERP system is:
A. competence
B. vision
C. intelligence
D. analytical strength
Question 5
A successful deployment of a fully integrated ERP system is a characteristic of a:
A. Stage 1, functional focused supply chain
B. Stage 2, internally integrated supply chain
C. Stage 3, externally integrated supply chain
D. Stage 4, cross-enterprise collaboration and optimized supply chain
Question 6
What provides the foundation for a supply chain to move to Stage 3 and ultimately Stage 4 of
supply chain development?
Question 7

The ERP software design shift from proprietary, closed applications to web-based modules:
A. increased user training requirements
B. increased costs
C. eased system implementation
D. eased system integration with legacy and 3rd party systems
Question 8
When selecting an ERP system, it is important to ensure the business model implicit in the
system is:
A. based on the industry standard
B. robust
C. aligned with your business model
D. scalable
Question 9
What percentage of your required functionality should you expect in an industry leading ERP
system off-the-shelf product:
A. 50%
B. 70%
C. 80%
D. 90%
Question 10
What is MOST likely to increase if an off-the-shelf ERP system lacks at least 80% of your
required functionality?
A. training costs
B. consulting costs
C. license costs
D. hardware costs
Question 1
All of the following are reasons for relying on a lateral supply chain, EXCEPT:

A. to achieve economies of scale and scope

B. to improve business focus and expertise
C. leverage advances in communication technology
D. improve level of control within the supply chain
Question 2
Customer value creation is determined by improving all of the following EXCEPT:
A. quality
B. reliability
C. availability
D. affordability
Section B: Supply Chain Alignment with Business Strategy
Question 3
During strategic planning, supply chain management places an emphasis on:
A. business process monitoring
B. business process transparency
C. business process accountability
D. business process excellence
Question 4
Each of the following is an example of collaboration between partners in a supply chain,
A. vendor-managed inventory (VMI)
B. continuous replenishment (CR)
C. total quality management (TQM)
D. quick response (QR)
Question 5
Which of the following is part of the 2nd lowest degree of communication between partners?
A. forecast sharing
B. strategy development
C. design collaboration
D. mergers
Section C: Supply Chain Design and Improvement Considerations

Question 6
Each of the following is a general approach to benchmarking EXCEPT:
A. competitive benchmarking
B. best-in-class benchmarking
C. process benchmarking
D. financial benchmarking
Section D: Inventory Management
Question 7
Increasing the lead-time on information within the supply has what impact on total supply
chain inventory levels assuming all other factors unchanged?
A. decreased inventory
B. constant inventory
C. increased inventory
D. no impact
Question 8
A company operating at excessive working captial levels may attempt to do what to increase
cash flow or finance operations?
A. increase days of sale outstanding
B. reduce accounts payable
C. reduce inventory
D. increase accounts receivable
Section E: Logistics Fundamentals
Question 9
Which is the least important concern when considering outsourcing logistics operations?
A. contractor customer skills
B. contractor special strengths
C. contractor ability to hire the most qualified partners
D. contractor vehicle age
Section F: Market Segmentation
Question 10
How does contact channel strategy increase profitability?

A. by utilizing the most cost-effective and customer preferred channel

B. by delivering a constant stream of new transactional customers
C. by using only a single channel
D. by leveraging the least complex channel
Section G: Demand Planning
Question 11
All of the following are factors of seasonal demand EXCEPT:
A. hour of day
B. severity of weather
C. product introductions
D. type of holiday
Question 12
The general principle at work when basing forecasts on a larger product group is:
A. more data, more accuracy
B. risk pooling
C. balancing high-low forecasts
D. determining true average
Section H: Customer Relationship Management (CRM) Concepts
Question 13
A key goal of CRM is the creation of:
A. win back customers
B. life cycle customers
C. lifetime customers
D. new customers
Section I: Supply Management Concepts
Question 14
All of the following are different types of supplier relationships EXCEPT:
A. buy on the market
B. ongoing relationship
C. partnership
D. sell the market

Module 2: Supply Chain Strategy, Design and Compliance

Section A: Sustainability
Question 15
The triple bottomline associated with sustainability includes all of the following EXCEPT:
A. economic benefits
B. health beneifts
C. social benefits
D. environmental benefits
Section B: Risk Management
Question 16
The Sarbanes-Oxley Act (SOX) was passed by US congress in:
A. 2001
B. 2000
C. 2003
D. 2002
Section C: Globalization
Question 17
Which of the following is true about bills of lading (B/L)?
A. It is a letter issued by a bank
B. It serves as the carriers contract
C. It is similar to a certificate of origin
D. It attests that a policy is taken out to cover the cargo
Section D: Logistics
Question 18
Which activity does not typically take place in a warehouse?
A. receiving
B. order picking
C. selling
D. packaging
Question 19
Which of the following provides specialized packaging services?

A. Export Packing Companies

B. Expert Packing Companies
C. Specialist Packing Companies
D. Professional Packing Companies
Section E: Managing the Supply Chain
Question 20
The supply chains ability to react to changes in market demand is:
A. supply chain responsiveness
B. supply chain adaptability
C. supply chain reactiveness
D. supply chain agility
Section F: Technology
Question 21
The private network within an organization is the:
A. intranet
B. extranet
C. internet
Section G: Influencing and Prioritizing Demand
Question 22
Which of the following statements is most true about the implications of placement decisions
to CRM?
A. After determining the different customer segments, not only do the contact strategy
channels have to be customized to suit each segment, but the products as well have to have to
contain the necessary variations to adapt to each segment.
B. The contact strategy channel will depend on the potential business value of the customer.
C. Identical products can be distributed through different channels that match communication
and contact preferences of different customer groups.
D. One-way channels may have worked before, but interactive channels are now the only
option when it comes to customers with specific requirements.
Section H: Customer Relationship Management (CRM)

Question 23
Customer care activities that are launched during the maturity stage of the product life cycle
should focus on:
A. brand image
B. customer feedback gathering
C. attracting new customers
D. enticing competitor customer switching
Section I: Supplier Relationship Management (SRM)
Question 24
A close strategic alliance with a supplier is the best option when:
A. the supplier is known to have proprietary knowledge or processes that could be available
to competitors if not acquired
B. the suppliers are known to offer the lowest true cost to a purchased component
C. the organization is looking to cross-train its own workers with expertise that lies outside its
core competencies
D. the organization cannot develop the in-house manufacturing capability to produce a
component that is critical to competitive differentiation
Section J: Inventory Planning and Control
Question 25
All other things being equal, an increase in order frequency:
A. increases inventory carrying cost
B. lowers the order cost
C. increases order cost
D. increases total supply chain inventory
Module 3: Implementation and Operations

Section A: Supply Chain Dynamics

Question 26
A reduction in demand variability tends to:
A. decrease the bullwhip effect
B. increase the bullwhip effect
C. increase supply variability
D. decrease supply variability

Section B: Managing Supply from Internal Sources

Question 27
The most basic requirement for DRP is:
A. independent demand forecasts
B. complete list of order dates
C. the calculation of all lead times
D. availability of goods
Section C: Managing Supply from External Sources
Question 28
Sharing of information with key suppliers enables all of the following EXCEPT:
A. better supply and demand matching
B. increased inventory levels
C. lowered costs
D. improved product availability
Section D: Implementation of Demand Plans
Question 29
Available-to-promise provides:
A. support to move from a push strategy to a pull strategy
B. capacity leveling
C. guaranteed delivery dates
D. quantity and delivery dates in response to customer inquires
Section E: Continuous Improvement
Question 30
A Kaizen event / Kaizen blitz will involve:
A. a step by step improvement of a limited process area
B. a step by step improvement of the whole process
C. a rapid improvement of a limited process area
D. a rapid improvement of the whole process area