Question 1

Random stocking can be greatly improved through the use of a(n):

Options :

A : advanced planning system (APS)

B : inventory management system (IMS)

C : transportation management system (TMS).

D : warehouse management system (WMS).

Answer: A

Question 2

An organization encourages proactive internal design efforts and collaboration with supply chain partners in order to consume less raw materials. This business practice reflects which of the following dimensions of sustainability?

Options :

A : Education

B : Ethics

C : Economics

D : Environmental

Answer: D

Question 3

Which of the following attributes best represents how an organization regards the relationship between the cost of lost sales and inventory costs?

Options :

A : Willingness to spend increasing amounts on inventory to decrease lost sales at a greater rate

B : Willingness to spend increasing amounts on inventory but expect only minor changes in lost sales

C : Unwillingness to spend increasing amounts on inventory because they see no correlation between inventory costs and the cost of lost sales

D : Unwillingness to spend increasing amounts on inventory even though they understand that an inverse relationship exists between inventory costs and the cost of lost sales

Answer: C

Question 4

Which of the following types benchmarking would a company utilize in order to determine why a significant gap exists in its order fill rates?

Options :

A : Performance benchmarking

B : Process benchmarking

C : Product benchmarking

D : Strategic benchmarking

Answer: B

Question 5

Which of the following methods of payment involves complete trust in the importer given that the exporter ships the merchandise without any guarantee of payment by the importer?

Options :

A : Open account

B : Cash is advance

C : Factoring

D : Letter of credit (L/C)

Answer: A

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