The tailored strategy “Focus on low-cost, decentralized capacity for predictable
demand” follows which risk mitigation strategy?
A) Get redundant suppliers.
B) Increase capacity.
C) Increase responsiveness.
D) Increase inventory.
The phenomenon where each actor is incentivized to maximize his gain from a public
asset at the expense of all others is
A) the tragedy of the commons.
B) cap-and-trade.
C) the closed loop.
D) the social pillar.
Remanufacturing helps improve profits as long as
A) the comparatively low margin of remanufactured to newly-produced products exists.
B) the comparatively high cost of remanufacturing to newly-produced products exists.
C) the fear exists that remanufactured products will be purchased instead of
newly-produced products.
D) two distinct segments of demand exist for the product – one for new and one for old
products.
As retailers decrease the level of safety inventory they carry, the distributor will have to
A) decrease his or her safety inventory.
B) increase his or her safety inventory.
C) keep his or her safety inventory at the same level.
D) increase his or her cycle inventory.
On a recent road trip to the Big Easy, the absentee landlord recorded his gasoline
purchases in a logbook that he intended to support his rental expenses for the year. The
entries are in the table below:
What is the range of sale price of the gasoline?
A) 7.51
B) 10
C) 0.69
D) 22.54
A contract that allows a retailer to return unsold inventory up to a specified amount, at
an agreed upon price is a
A) buyback or returns contract.
B) revenue-sharing contract.
C) quantity flexibility contract.
D) quantity discount contract.
Activities involved in the Internal Supply Chain Management (ISCM) macro process
include
A) marketing.
B) order fulfillment.
C) sales.
D) order management.
The traditional fundraiser for the student chapter of APICS is pint mason jars filled with
a tangy barbecue sauce that the club sponsor whips up in his kitchen. Club officers set
up a card table in the atrium of the business building and take turns staffing it for the
duration of the barbecue season, which is four months. Eighteen sad years of experience
have revealed that demand varies depending on the month of the season. Customer
demand in the first month can be described as 400-p1, in the second month as
400-1.4p2, in the third month 400-1.8p3, and in the fourth month 400-2.2p4.
What should the price be in period 1?
A) $287.50
B) $275.00
C) $262.50
D) $250.00
The Stone Lion, a bed and breakfast located in a sleepy town, caters to two groups of
customers, young couples interested in something marginally more exotic than a
staycation, and corporate clients interested in doing some team-building at a location
with no cellular service. Corporations know they can get rooms with minimal notice,
but young couples on tight budgets tend to plan well in advance of their planned stay at
the property. The corporate rate for rooms is $250 per person and the demand pattern is
normal with a mean of 20 and a standard deviation of 10. The proprietor of the Stone
Lion takes pity on the young couples and charges them only $150 for identical
accommodations.
How many rooms should be reserved for corporate clients?
A) 17
B) 14
C) 13
D) 10
Over the past several decades
A) the life cycle of products has increased.
B) most firms have become more vertically integrated.
C) the number of owners per supply chain has increased.
D) product variety has decreased.
To create a win-win negotiation, the two parties must
A) guarantee each other an agreed upon level of business.
B) identify more than one issue to negotiate.
C) identify an impartial mediator to oversee the negotiations.
D) possess an equivalent level of power.
Operational improvements that reduce lot sizes can dampen the bullwhip effect by
A) decreasing the uncertainty of demand during the lead time.
B) decreasing the amount of fluctuation that can accumulate between any pair of stages
of a supply chain.
C) discouraging retailers from artificially inflating their orders in the case of a shortage.
D) allocating the available supply based on past retailer sales.
Safety inventory is carried because
A) demand forecasts are accurate.
B) demand forecasts are uncertain.
C) adequate supplies are available.
D) excess product was manufactured.
Sourcing a product overseas may have
A) higher product cost and will generally incur a higher inbound transportation cost.
B) higher product cost but will generally incur a lower inbound transportation cost.
C) lower product cost and will generally incur a lower inbound transportation cost.
D) lower product cost but will generally incur a higher inbound transportation cost.
Serving a medium density of customers at a medium distance is best done using
A) an LTL carrier.
B) a cross dock distribution center with milk runs.
C) a package carrier.
D) a private fleet with milk runs.
Lisa rented her goats out to anyone interested in clearing underbrush the natural way on
their acreage. She received a call from her client Mary on June 21 and delivered her
herd of goats to the site on June 24. The goats were done on June 30 and Lisa presented
Mary with an invoice the same day. Mary wrote Lisa a check on July 18 and Lisa
cashed it on July 21. What was Lisa’s days payable outstanding for Mary’s job?
A) 18 days
B) 24 days
C) 27 days
D) 30 days
A company’s partners in the supply chain determine
A) the company’s success.
B) the scope of strategic fit.
C) the relevance of sustainability initiatives.
D) the need for customers.
Forecasting methods that imitate the consumer choices that give rise to demand to
arrive at a forecast are known as
A) qualitative forecasting methods.
B) time series forecasting methods.
C) causal forecasting methods.
D) simulation forecasting methods.
Long-term forecasts are usually less accurate than short-term forecasts because
A) short-term forecasts have a larger standard deviation of error relative to the mean
than long-term forecasts.
B) short-term forecasts have more standard deviation of error relative to the mean than
long-term forecasts.
C) long-term forecasts have a smaller standard deviation of error relative to the mean
than short-term forecasts.
D) long-term forecasts have a larger standard deviation of error relative to the mean
than short-term forecasts.