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 supply manager for JKL, Inc. is negotiating a contract with a supplier of a component. The component will be used in a new product JKL Is manufacturing and plans to bring to market early next year. Which of the following will be the MOST important provision for the supply manager to negotiate for?

Options :

A : A fixed cost of raw materials that will remain stable over the following year

B : A low minimum order quantity that allows flexibility to buy additional materials

C : A sustainable packaging solution with recyclable transport crating

D : Ownership of the molds and dies used to manufacture the component

Answer: B

Question 3

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 4

A graph of a firm’s inventory replenishment system reveals the followingWhich of the following is TRUE’

Options :

A : The order cycle is two and a half days.

B : The average inventory is 1,850 units.

C : There is a fixed order quantity of 500 units.

D : There is a fixed order quantity of 500 units.

Answer: D

Question 5

A firm needs to provide raw materials to accommodate a recent increase in manufacturing production. The supply manager uses the material forecast from the material requirements planning (MRP) software and the storage capacity from the warehouse management system (WMS) to forecast the firm's requirements. Which of the following will impact this forecast MOST significantly?

Options :

A : Validation of data by supply management

B : The type of planning system used

C : The interface between the MRP software and the WMS

D : Accounting for storage of works in progress

Answer: C

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