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Which of the following factors is the most important driver of supply chain change?
Health and safety concerns
Competitor actions
Government regulations
Customer perceptions of value
A company is considering relocating production to a lower-wage country. Volatility in which of the following areas most likely would impact profitability without modifying product landed costs?
Labor costs
Currency exchange rates
Commodity prices
Product quality
Managing risk should be a strategic part of supply chain management because:
the occurrence of unanticipated risks essentially can be eliminated.
not all members of the supply chain consider and respond to the same types of risks.
substantial financial penalties can be assessed if legal requirements are not met.
it helps to reduce the occurrence and consequences of unplanned negative events.
The primary contribution from an enterprise resources planning system in building supply chain capability is:
real-time manufacturing planning
improved decision making.
ease of implementation
timely order tracking
Which of the following factors is most important to consider when deciding on offshore outsourcing of manufacturing to a supplier?
Size of the supplier organization
Total cost of ownership
Supplier performance history
Supplier certification
Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?
Use a more rapid transportation mode.
Increase safety stock.
Extend product warranty
Employ lean principles.
Which of the following factors should be considered when establishing an inventory policy?
Customer demand
Selling price history
Historical service levels
Number of customers
On-time delivery performance in the supply chain can best be improved by aligning required capacity with what type of capacity?
Demonstrated
Rated
Budgeted
Theoretical
Which of the following processes ensures that functional plans are consistent?
Strategic planning
Sales and operations planning
Project planning
Master scheduling
When evaluating several possible supply chain options, a firm considering the minimal total cost should:
ensure that the inventory levels are as low as possible to minimize holding costs while
still providing adequate customer service.
account for the combined costs of holding buffer inventory and incurring inventory
shortages
consider the costs of acquiring, holding, and transporting inventory, and of servicing
customers.
place buffer inventory in the lowest cost locations that meet lead time and service level
requirements from customers.