Question 1

The first step a company would typically take when designing and implementing a cycle count program is to:

Options :

A : segment all available inventory by velocity, value, or other criteria.

B : stop operations in order to conduct a physical inventory.

C : reconcile discrepancies within the warehouse management system (WMS).

D : hire an outside company to conduct the cycle count program.

Answer: A

Question 2

Which of the following prerequisites is essential in order to establish an effective order management system?

Options :

A : An ability to reserve inventory and determine a delivery date

B : An ability to understand customer needs

C : An ability to plan and build loads

D : An ability to receive, enter, and validate an orders

Answer: C

Question 3

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

Question 4

Which of the following forecasting methods attempts to identify patterns of repeating demand over a period of time?

Options :

A : Trend

B : Seasonality

C : Exponential smoothing

D : Delphi

Answer: C

Question 5

Which of the following rules specifies whether the importer or exporter is responsible for insuring cargo?

Options :

A : World Trade Organization (WTO) rule

B : Lloyds of London rule

C : Incoterms® rule

D : Shipper’s rule

Answer: A

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