Question 1

An organization purchases material from several countries. These materials are assembled into products and sold in several other countries. This firm's product specifications will MOST likely reference

Options :

A : International standards

B : Incoterms® 2010 rules

C : North American Free Trade Act

D : exchange rates

Answer: A

Question 2

A firm hires a new staff member in its warehousing department. As a FIRST step in the training of this employee, the warehouse manager should

Options :

A : verify that the employee knows how to operate the warehouse equipment and tools correctly

B : demonstrate how to package products in the correct manner, so that the employee can begin with packaging assignments

C : explain the company-s safety policy and verify that the employee understands all safety-related requirements

D : show the employee how to separate disposable vs recyclable packaging, to ensure the employee understands environmental compliance requirements

Answer: C

Question 3

A firm sells an average of 2,000 units of snacks from its existing stock while it waits for orders to be delivered. Demand during lead time varies in accordance with a normal distribution. The firm's supply manager prepares a presentation to explain the concept of customer service and safety stock levels using the following figure:What does the shaded area D (in red) represent?

Options :

A : Average demand during lead-time

B : Service level

C : Stock-out risk

D : Re-order point

Answer: C

Question 4

XYZ, Inc. notices that one of its suppliers has been failing to achieve on-time delivery, even though XYZ sends it a 6-month projected order forecast every month. The supplier claims that it takes nine months to receive important raw materials, and that this causes the poor delivery performance. Nevertheless, XYZ must continue purchasing from this supplier, as it is a sole supplier. Given this situation, which of following is the BEST course of action for XYZ to take

Options :

A : Send the 6-month forecast data weekly instead of monthly to the supplier, and request it purchase raw materials based on the projections

B : Request that the supplier submit an open order report on a weekly basis with details on the latest shipment status

C : Discuss the issue with engineering to determine if the firm can use different raw materials to manufacture the product

D : Extend the forecast timeline from six months to one year, and request the supplier purchase raw materials based on the projections

Answer: D

Question 5

Over the past 90 days, a buying company's manufacturing engineers have reported an increase in the number of defective parts received from a key supplier. The engineers report that there are three different types of defects occurring, and that they are all being discovered during production. The supplier states that it does not have enough resources to assess the root cause of the three types of defects all at one time. Which of the following should the buying firm do in this instance?

Options :

A : Work with engineering to determine the impact each defect type has on the customer base and assist the supplier in prioritizing and solving the defect type with the highest customer impact first

B : Calculate the number of times each of the defect types have occurred over the past 90 days, and instruct the supplier to work on finding the root cause of the defect with the highest frequency

C : Calculate the number of times each of the defect types have occurred over the past two weeks, and instruct the supplier to work on finding the root cause of the defect with the highest frequency

D : Work with engineering to submit three corrective action requests and ask the supplier to address all three

Answer: A

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