Question 1

Enterprise resources planning (ERP) is defined as a:

Options :

A : framework for organizing, defining, and standardizing business processes to use its internal knowledge to seek external advantage.

B : production control system that determines priorities of in-process work.

C : software module used to determine whether sufficient capacity is available to ship customer orders on time.

D : process whereby sales, marketing, and operations determine what products will be sold and what resources will be required for production.

Answer: A

Question 2

A company that produces a set of standard products, which are sold through multiple channels, would segment its sales by:

Options :

A : brand

B : product

C : customer

D : region

Answer: C

Question 3

Mass customization results in savings due to economies of scale and which of the following additional benefits?

Options :

A : An opportunity to invest in equipment and training

B : A greater appeal of differentiated products to different markets

C : Facilitation of a pull system

D : Elimination of friction among distributors

Answer: B

Question 4

Which of the following actions hedges against commodity price fluctuations in a supply chain?

Options :

A : Purchase always from the lowest bidder.

B : Increase safety stock levels.

C : Establish an online auction site.

D : Purchase future options.

Answer: A

Question 5

The most appropriate reason for a business to comply with the United Nations (UN) Global Compact practices typically would be to:

Options :

A : enhance the competitive advantage.

B : gain access to proven management tools.

C : reduce the threat of organized labor.

D : reduce the cost of operating in multiple countries.

Answer: A

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