Question 1

Green Frog Ltd is a consultancy organisation that has around 50 different customers. Their new CEO Patal is investigating the different customers and believes that using a Cost to Serve tool will help better understand customer profitability. Is this the right approach?

Options :

A : yes- Cost to Serve will allow Patal to identify customers that are unprofitable

B : yes- this is an expensive tool but will allow a high level of visibility for the organisation into its customers

C : no- all customers are equally profitable if they pay the same rates

D : no - Patal should use a Total Cost of Ownership approach to measure this

Answer: A

Question 2

Which of the following is an approach that aims to increase profits by maximising the performance of constraints?

Options :

A : Lean

B : Six-Sigma

C : Total Quality Management

D : Theory of Constraint

Answer: D

Question 3

Which governing body is responsible for the creation and management of INCOTERMS? (Rules that state the responsibilities of buyers and sellers regarding delivery of goods under sales contracts).

Options :

A : World Trade Organisation

B : United Nations

C : International Labour Organisation

D : International Chamber of Commerce

Answer: D

Question 4

Which of the following statements about Sales and Operations Planning are TRUE? Select TWO

Options :

A : it is a process of planning future aggregate resource levels so that supply will balance with demand

B : it is a fundamental financial plan to ensure business profitability in relation to supply and demand

C : it is a cross-functional department activity

D : competitors' behaviour is not accounted for in Sales and Operations Planning

Answer: A,C

Question 5

Paul is a Warehouse Manager at a large online retailer. He is conducting an analysis into his current inventory and plans to use an ABC method to classify his inventory. Which of the following classes of items would his most expensive products fall under?

Options :

A : A

B : B

C : C

D : any- an ABC analysis does not categorise by cost

Answer: A

Free L5M10 Mock Exam – Practice Online Confidently

Buying Options: