A high fashion retailer should rely on
A) historical data to forecast next season’s demand.
B) interpretation of industry trends and customer tastes to forecast next season’s
demand.
C) store-level POS data to forecast next season’s demand.
D) distribution center withdrawals to forecast next season’s demand.
Flexibility should be valued by taking into account uncertainty in demand and
economic factors. In general, flexibility will tend to
A) decrease in value with a decrease in certainty.
B) increase in value with an increase in uncertainty.
C) decrease in value with an increase in uncertainty.
D) increase in value with an increase in certainty.
The student chapter of the Association of Information technology Professionals (AITP)
notices the success that the APICS student chapter has with their traditional barbecue
sauce fundraiser. Blinded by their jealousy, the club officers decide to sell a competing
product, clocks made out of junk computer parts that the club sponsor whips up in his
garage. Club officers set up a card table in the atrium of the business building and take
turns staffing it for the duration of the computer clock season, which is four months.
Twenty-five 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 20-p1, in
the second month as 20-1.4p2, in the third month 20-1.8p3, and in the fourth month
20-2.2p4.
The components needed to produce a computer clock cost twenty-five cents. What is
the expected profit if the AITP club sponsor produces the optimal number of clocks?
A) $263.72
B) $262.54
C) $260.97
D) $269.41
In the context of greenhouse gas emission, the GHG protocol initiative defines levels of
scope. This level refers to emissions from GHG sources that are owned or controlled by
the reporting entity.
A) Scope 1
B) Scope 2
C) Scope 3
D) Scope 4
Concerns related to the environment and sustainability
A) are becoming less important to the consuming public.
B) are sometimes dictated by regulations and sometimes by perception.
C) result in increased cost for the supply chain.
D) are relevant to only the retail member of each supply chain.
The objective of the first phase of network design is to
A) maximize total profits, taking into account the expected margin and demand in each
market.
B) select a set of desirable sites within each region where facilities are to be located.
C) identify regions where facilities will be located, their potential roles, and their
approximate capacity.
D) specify what capabilities the supply chain network must have to support a firm’s
competitive strategy.
Pricing schedules with all unit quantity discounts encourage retailers to
A) decrease the size of their lots.
B) increase the size of their lots.
C) decrease the size of their inventory.
D) increase the price of their products.
The goal when making the overbooking decision is to maximize supply chain profits by
A) maximizing the value of wasted capacity and the cost of capacity shortage.
B) maximizing supply chain profits.
C) minimizing the cost of wasted capacity and the cost of capacity shortage.
D) minimizing the cost of wasted capacity and minimizing capacity shortages.
The bullwhip effect decreases
A) transportation cost.
B) profitability.
C) replenishment lead time.
D) shipping and receiving cost.
A price discount where the pricing schedule offers discounts based on the quantity
ordered in a single lot is
A) customer based.
B) lot size based.
C) supplier based.
D) volume based.
The ability of a supply chain to delay product differentiation or customization until
closer to the time the product is sold is
A) information centralization.
B) specialization.
C) product substitution.
D) postponement.
In the context of greenhouse gas emission, the GHG protocol initiative defines levels of
scope. This level refers to indirect emissions from grid-sourced electricity and other
utility services of heat, steam and cooling.
A) Scope 1
B) Scope 2
C) Scope 3
D) Scope 4
Which distribution network design is being used when the distributor/retailer delivers
the product to the customer’s home instead of using a package carrier?
A) Manufacturer storage with direct shipping
B) Manufacturer/distributor storage with customer pickup
C) Distributor storage with package carrier delivery
D) Distributor storage with last mile delivery
A third party increases the supply chain surplus if it aggregates the sourcing for many
small players and facilitates economies of scale in ordering, inbound transportation and
production. This is called
A) capacity aggregation.
B) procurement aggregation.
C) information aggregation.
D) relationship aggregation.
One of the best ways to speed up the process of financial analysis and arrive at a good
decision is to
A) use estimates of inputs when it appears that finding a very accurate input would take
an inordinate amount of time.
B) use estimates backed up by sensitivity analysis when it appears that finding a very
accurate input would take an inordinate amount of time.
C) use estimates of inputs except when it appears that finding a very accurate input
would take an inordinate amount of time.
D) make sure that every detail is very accurate.