EMT Practice Test

1. Question Content...

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Question1: Managing supply chain risks includes which of the following activities?

Question2: A company is formally adhering to the principles of the UN Global Compact. After a review of their supply chain, they have found that a key supplier is in violation of the compact. The best action for the company to do first is:

Question3: An advantage of using a third-party logistics service (3PL) is improved:

Question4: A manufacturer can simplify the forecasting process by pooling demand forecasts for a product group and then:

Question5: When designing a supply chain for strategic advantage, a company first should consider:

Question6: Implementation of supply chain applications based on which of the following technologies is most likely to have the lowest fixed costs?

Question7: A manufacturer and the distributors of its products have decided to focus on price and product availability as strategic priorities. Which of the following values would be the most appropriate measure of customer service?

Question8: The globalization of a supply chain typically increases uncertainty and:

Question9: On-time delivery performance in the supply chain can best be improved by aligning required capacity with what type of capacity?

Question10: Which of the following attributes typically makes reverse logistics processes more complicated than outbound logistics processes?

Question11: A main benefit of using customer relationship management (CRM) is:

Question12: Which of the following forecasting methods relies on the opinions of a panel of experts?

Question13: Customer demand is 120 units per week. The company works on a 9-hour shift per day, 5-day per week basis. Each shift has a ½-hour lunch break and two 15-minute coffee breaks. The cycle time is 12 minutes.
To meet demand, production must occur at the rate of one unit every:

Question14: Which of the following strategies is most appropriate for managing unknown risks in a global supply chain?

Question15: The strategy to implement supplier relationship management has been developed. The most appropriate next step is to:

Question16: Which of the following is the most important result when a company implements customer relationship management?

Question17: It is most appropriate to measure spending per customer as a proportion of profitability during which of the following phases of a supplier/customer relationship?

Question18: Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?

Question19: Which of the following organizational design choices is an example of vertical integration?

Question20: The most useful inventory costing method which enables purchase price variance analysis is:

Question21: Which of the following outcomes occurs when direct shipping is used instead of a distribution network?

Question22: A manufacturer experiences frequent changes in product technology and market preferences, resulting in new product introductions each year. Which of the following sourcing strategies would be most appropriate?

Question23: Which of the following manufacturing strategies would run the greatest risk of increasing obsolete inventory costs?

Question24: Using an independent service provider for logistics would be most appropriate in which of the following situations?

Question25: An organization is partnering with a supplier. The most appropriate tool to ensure that the supplier has the necessary capabilities is:

Question26: Which of the following actions is in accordance with the Ten Principles in the United Nations (UN) Global Compact?

Question27: Which of the following activities is critical to successful synchronization of supply and demand throughout a supply chain?

Question28: Value stream mapping provides the most benefit when:

Question29: Which of the following objectives is the primary driver in the design and implementation of lean process management?

Question30: In an assemble-to-order manufacturing environment, the master production schedule is typically the schedule of:

Question31: The factors to consider in the make-or-buy decision include costs, proprietary knowledge, and:

Question32: A company recently implemented a new supplier rating system. Data was collected from the enterprise resources planning system about each vendor's rating for cost, quality, and delivery over 12 months. A cutoff point was established for poor performers. The responsible purchasing agent then scheduled meetings with each supplier. Which of the following actions is most appropriate to take with suppliers whose ratings were below the cutoff point?

Question33: Variability in product design can best be reduced by:

Question34: Which of the following considerations is an important supply chain design decision?

Question35: A company considers outsourcing its information technology support to a low-cost region on another continent. The company currently has no business presence there. Which of the following actions is most effective in helping to select a service provider?

Question36: A firm wants to lose customers that don't value the unique products and services the firm offers and to attract and retain customers that want what the firm offers. Engaging in this activity should allow the firm to:

Question37: The most appropriate frequency for the sales and operations planning process typically is:

Question38: A company manufactures special products for select customers. When demand for these products drops, the manufacturer can switch the production line to a commodity-type product that can be sold on the open market at reduced terms to generate cash. The company is executing a corporate strategy that is based on:

Question39: Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?

Question40: A master production schedule serves a company best by functioning as a:

Question41: A product design that can be produced to requirements even when conditions in the production process are unfavorable typically is known as what type of design?

Question42: Which of the following processes would a company use to evaluate the risk profile for end-of-life planning for a product family?

Question43: A company has been delivering a global product that no longer appears profitable. Senior management's best response is to:

Question44: A firm has identified groups of customers based on specific characteristics the customers desire from products and services the firm can provide. Characteristics include lead times, pricing tiers, and service levels. The firm is engaged in which of the following activities?

Question45: An operations manager wants to measure variability in the delivery time of insurance policies to clients.
Which of the following quality tools most appropriately would show the level of variability?

Question46: A manufacturer of consumer packaged goods with a single plant and nine regional distribution centers is considering reducing the number of distribution centers in its system. Reducing the number of distribution centers most likely will reduce fixed warehousing and the cost of:

Question47: A company that sells direct to industrial and commercial businesses has become successful by being responsive to the needs of its customers. The company currently produces in each country all of the products it sells in that country. Several countries in which the company operates have negotiated an agreement to establish a trading bloc. Which of the following actions by the company would be most appropriate if the agreement is implemented?

Question48: When doing international business, a company's total line-haul costs will vary with the:

Question49: Organizations that change from a traditional purchasing perspective to a supply chain perspective most likely will adopt techniques related to:

Question50: A firm is undertaking a revision of its financial metrics to make them more comprehensive and has decided to use metrics such as return on investment (ROI), return on assets (ROA), and economic value added (EVA). This is an example of utilizing which of the following types of metrics?

Question51: The probability of customer dissatisfaction is highest when which of the following conditions exists?

Question52: A large manufacturer wanting to be more competitive in the global market place decided to outsource its transportation and return processing to other companies on a contractual basis. The companies providing the services would be referred to as:

Question53: The primary objective of supply chain management is:

Question54: A company that sells engineered-to-order products is planning implementation of a supplier relationship management system (SRM) for direct materials. Which of the following factors is most likely to make the implementation difficult?

Question55: A company most likely would implement a supplier certification program to:

Question56: Which of the following statements best identifies the value of using a supplier rating system?

Question57: Which of the following types of information would be an appropriate basis for a qualitative forecast?

Question58: A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:

Question59: The main benefit of a mass customization product design strategy is to:

Question60: The mission of the global reporting initiative (GRI) is to provide a:

Question61: Which of the following customer relationship management activities most appropriately is used for revenue generation?

Question62: An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in:

Question63: The process used to determine the impact of promotions, price discounts, and rebates on demand forecasts commonly is referred to as demand:

Question64: The United Nations Global Compact uses 10 guiding principles to:

Question65: Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange?

Question66: Point-of-sale information fails to measure actual demand most likely because:

Question67: Which of the following outcomes is an expected benefit of effectively implementing supply chain event management software?

Question68: Which of the following statements about the use of bar code labels for product identification in the supply chain is true?

Question69: Potential customers of a company's new product have tight tolerance requirements. The company plans to purchase a critical component. To meet customer requirements, the company should first:

Question70: A firm has determined its cash-to-cash cycle time to be 60 days. The number of days' payables outstanding is 25, and number of days' sales outstanding is 35. If the firm reduces its inventory by 20%, the new cash-to-cash cycle time, in days, will be approximately:

Question71: Which of the following actions is most likely to improve the cash-to-cash cycle time?

Question72: A manufacturer's inventory levels are growing and service levels are dropping. Which of the following supply chain strategies is most appropriate to reduce inventory and improve service?

Question73: Direct shipment distribution typically offers which of the following advantages?

Question74: A company most likely would consider moving a portion of its manufacturing to a second location to:

Question75: A supplier disputes a low rating generated by a company's enterprise resources planning (ERP) system.
Which of the following actions by the purchasing agent is most appropriate?

Question76: Which of the following levels in a supply chain network represents the most upstream external activity?

Question77: Which of the following corporate strategies is most consistent with a flexible supply chain strategy?

Question78: What is the primary benefit of using modular rather than integral designs?

Question79: A company develops annual forecasts for key products and enters into annual contracts with key suppliers based on the forecasts. Which of the following benefits would the company most likely receive from this approach?

Question80: A manufacturer is the leader of a group of trading partners that are collaborating to improve customer service levels and profitability. Which of the following methodologies would be most appropriate for synchronizing supply and demand across the supply chain?

Question81: A manufacturer uses standard costing, and a potential supplier uses activity-based costing. This difference most likely will have implications for which of the following types of future decisions?

Question82: A large bicycle company has outsourced manufacturing and needs to respond immediately to any logistics problems in the supply chain. The best technological solution to meet this need is:

Question83: Bar codes and radio frequency identification systems are key technologies in supply chain systems because they perform which of the following functions?

Question84: Which of the following situations is an example of inventory being held as a way to balance supply and demand?

Question85: Inventory parameters established using analytic inventory techniques typically are based on balancing:

Question86: Continuous improvement is best described as:

Question87: A company has recently implemented a vendor-managed inventory (VMI) program with several key suppliers but quality issues are disrupting production. Which of the following actions would be more effective in dealing with these issues?

Question88: Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

Question89: Component commonality in manufacturing primarily allows a company to:

Question90: Which of the following factors typically is the most significant impediment to implementing collaborative commerce?

Question91: When an importer and manufacturer are operating in a free trade zone, payment of a customs duty is triggered when products are:

Question92: Benchmarking a firm's performance against industry competitors is most valuable because it can reveal:

Question93: A media company offers a majority of its movies through a specific distributor. The media company is beginning to produce content for a new foreign market to which the distributor has exclusive access. To maximize savings and gain entry to this new market, the media company should:

Question94: Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

Question95: When implementing e-commerce in the supply chain, a company's toughest challenge most likely will be:

Question96: When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements?

Question97: Which of the following actions by trading partners would be most appropriate to protect against variability in supply and demand?

Question98: The transportation manager at a consumer goods manufacturer has decided to begin shipping full truckload rather than less-than-truckload quantities. Which of the following outcomes is likely following implementation of this decision?

Question99: What is the primary role of marketing in supporting supply chain management?

Question100: Which of the following processes ensures that functional plans are consistent?

Question101: Which of the following results can be expected from sharing a common understanding of demand and consumption patterns among supply chain participants?

Question102: A firm supplies a single line of products to consumers using retail stores and on-line sales, distributors, and wholesalers. Currently the firm has common pricing and response times for sales in each sales channel.
Which of the following tools is most appropriate to employ to improve profitability?

Question103: A toy company decides to buy more products from an overseas company to reduce costs. To make sure that goods clear customs more quickly, the company most likely would engage a:

Question104: A company's decision to charge different prices for the same service sold in different market segments is most likely based on which of the following metrics?

Question105: Which of the following consequences is a result of shipping directly from the point of manufacture to the customer rather than through a distribution network?

Question106: The process of gathering data about what customers need and ensuring that desired features are included in the design and initial planning phase of a new product or service is known as:

Question107: Which of the following factors is the most important driver of supply chain change?

Question108: A company ships from its manufacturing facilities directly to its warehouses. If the number of warehouses increases, transportation costs between manufacturing facilities and warehouses most likely will:

Question109: A supervisor knows that employees have good ideas for improving department operations but are hesitant to share them. Which of the following tools would be most appropriate for encouraging the employees to participate in identifying opportunities?

Question110: When multiple warehouses are combined into one centralized warehouse, the requirement for safety stock is reduced because:

Question111: Distribution from which of the following types of sites enables goods to enter a country, undergo further modification, and then be exported without paying customs duties?

Question112: A company's product cannot be sold beyond 12 months from the date of manufacture. The product contains hazardous material and must be returned to the factory to be neutralized. This situation is an example of product:

Question113: The social dimension of sustainability typically would be addressed when developing and implementing policies regarding:

Question114: A firm has captured the following information for a product family:

The cash-to-cash cycle time is how many days?

Question115: Supplier certification procedures verify that a supplier:

Question116: In addition to sales history, current customer orders, and forecasted demand, which of the following data sources should be used as part of a demand management process?

Question117: A remanufacturer of equipment is most likely to have what type of supply chain?

Question118: The purchasing manager of a company wants to minimize stock-outs as well as obsolete inventory. Which of the following tools needs to be implemented?

Question119: In an advanced planning system, which of the following modules feeds the master planning module?

Question120: The use of a seasonal index as a forecasting technique measures the ratio of the:

Question121: The most important challenge to consider when sourcing globally is:

Question122: Which of the following factors typically is most important in successfully implementing sales and operations planning (S&OP)?

Question123: Which of the following marketing strategies emphasizes offering services at a lower price than rival services with comparable features?

Question124: A manufacturer offers a trade-in allowance on a new machine when the customer returns the old machine.
The manufacturer reconditions the returned machine locally and then sells it on the used market for a profit. This program is an example of a focus on:

Question125: Which of the following types of lead times is related most closely to a supplier performance measure?

Question126: Supply chains delivering products or services are most able to respond quickly to changing market requirements when:

Question127: Which of the following variables is the most appropriate customer-facing goal used to determine the target inventory level?

Question128: Which of the following measures effectively evaluates overall resources in a distribution warehouse?

Question129: The question below is based on the following flowchart:

Which of the following phrases most accurately describes the complete flow of demand information?

Question130: A large retailer has negotiated buyback contracts with several suppliers. The suppliers typically will need which of the following systems to effectively implement the contracts?

Question131: Compared to mass-media marketing, customer relationship management has the advantage of allowing the organization to:

Question132: Which of the following activities occurs as part of the sales and operations planning process?

Question133: Which of the following situations is an example of postponement?

Question134: Which of the following activities is the most appropriate use of an advanced planning and scheduling system?

Question135: Which of the following strategies can be used to help manage global risks?

Question136: A company that has consistently achieved a high level of on-time delivery performance has decided to reduce its inventory level significantly. Which of the following outcomes is the most likely effect of that decision on the company's on time delivery performance?

Question137: Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:

Question138: A company closely monitors supplier performance and notices recent late deliveries from one supplier. The supplier discloses flood damage at the plant. The company quickly shifts sourcing to a new supplier and has minimal loss of sales. Which of the following risk strategies reflects the company's actions?

Question139: The production scheduler for a bottleneck resource should:

Question140: Which of the following elements is critical to successfully using a sales and operations planning process?

Question141: The primary reason to establish a customer-dedicated warehouse is to:

Question142: Which of the following conditions are most indicative of a company that is effectively managing its cash?

Question143: Which of the following actions typically is most important when building a collaborative supply chain?

Question144: The primary reason for a firm to pursue strategic supply chain activities is to:

Question145: What are the steps in the supplier relationship process?

Question146: Demand management involves which of the following undertakings?

Question147: Which of the following activities typically would be an appropriate application of the ISO 31000 Risk Management Principles and Guidelines?

Question148: Which of the following tools is most appropriate to use to determine projects that will achieve the greatest net benefits?

Question149: The customer who provides point-of-sale data remains the sole decision-maker regarding order quantities when what type of inventory strategy is used?

Question150: Reverse supply chain activity typically peaks nearest the beginning of which of the following stages of the product life cycle?

Question151: A company produces and distributes a family of soft drinks in a single country. It has developed and will introduce a new family of soft drinks for weight- and health-conscious individuals. There currently are no competitors with nationwide distribution for this category of soft drinks. Which of the following supply chain strategies would be most appropriate for the two product families?

Question152: Incorporating supplier input into product and process design helps to:

Question153: Variation in upstream requirements can be reduced by increasing:

Question154: A company exports products to emerging markets. Which of the following approaches would be used to enhance compliance, minimize risks, and connect supply chain activities?

Question155: A manufacturer of plastic components that are sold either directly or through distributors wants to identify the requirements of the end customers for each market segment. Which of the following approaches would be most appropriate?

Question156: Compared to a global strategy, a multicountry strategy would be characterized by:

Question157: A company recently faced an increase in backorders. The company's marketing department recently ran a sales promotion. The purchasing and planning departments were not aware of the promotional activity.
Which of the following processes will help to solve this type of problem in the future?

Question158: A firm supplies products and services to a wide variety of industries with varying requirements for responsiveness and reliability. Many customers across these industries are not satisfied with the firm's ability to meet the lead time and on time delivery requirements. Which of the following tools is most appropriate for the firm to use to improve customer service?

Question159: A company that produces standardized products and sells them through retailers via a responsive transportation system has decided to expand its sales with an online store for customized products. Which of the following distribution strategies would be the most appropriate for the business-strategy change?

Question160: Which of the following actions would be most appropriate for an enterprise that has successfully integrated internal supply chain management systems and functions?

Question161: Which of the following metrics would be most appropriate for a group of trading partners that is trying to gain competitive advantage through supply chain reliability?

Question162: Which of the following practices has improved management of the customer pipeline?

Question163: A retailer wants to partner with its suppliers to implement automatic replenishment of inventories and joint sales forecasts. Which of the following supply chain management technologies most likely would support the retailer's strategy?

Question164: A company's supply chain depends heavily on sourcing from international suppliers. Conditions increasingly threaten supply continuity. Which of the following actions is most appropriate?

Question165: Companies are more likely to consider the consequences of their product design decisions when they view the reverse supply chain as an extension of the:

Question166: Which of the following distribution approaches for a low-volume, high-variety product line typically will result in the highest level of customer service and the lowest total distribution costs?

Question167: Which of the following actions is most appropriate when implementing a strategy to create customer- affordable value?

Question168: The practice of purchasing items in large quantities and requesting that shipments be delivered directly to customers is referred to as:

Question169: The demand side of a traditional warehouse management system primarily is concerned with:

Question170: The best way to manage a business relationship is to measure performance to:

Question171: Medium-term demand management projections are used primarily to:

Question172: An advanced planning system differs primarily from enterprise resources planning by:

Question173: Which of the following strategies would increase overall supply chain risk?

Question174: Which of the following statements describes a continuous replenishment strategy in a retail environment?

Question175: A company is aggressively pursuing improvements in the financial performance of its supply chain. The company should first focus its efforts on which of the following metrics?

Question176: The implementation of major enterprise-wide changes to eliminate or significantly reduce waste is related to which of the following concepts?

Question177: Which of the following actions is most likely to increase total supply chain risk?

Question178: The purpose of continuous improvement in the supply chain is to:

Question179: A company plans to maximize profitability by charging more for its products at retail locations than on its website. Which of the following segmentation strategies would best support this plan?

Question180: Which of the following factors is the most appropriate measure of delivery performance for finished goods?

Question181: A juice manufacturer wants to determine the time required to convert a dollar spent on materials into a dollar received in sales. Which of the following metrics would be most appropriate to make this determination?

Question182: An information technology system that couples enterprise resources planning and an advanced planning system would be most appropriate for which of the following types of business operations?

Question183: A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of its trucks and now purchases transportation services from fleet operators. This is an example of which of the following strategies?

Question184: A company that is having difficulties prioritizing resources against a long list of improvement projects should use which of the following processes?

Question185: The most appropriate reason for a business to comply with the United Nations (UN) Global Compact practices typically would be to:

Question186: The primary reason for the evolution of the supply chain is:

Question187: Which of the following performance indicators can be used to measure the effectiveness of a vendor- managed inventory program?

Question188: A manufacturer has direct relationships with its tier 1 suppliers. Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?

Question189: A company that is focused on customer relationship management is most likely to take which of the following actions for customers who have been profitable over time?

Question190: Which of the following actions typically would be considered part of a reverse logistics strategy?

Question191: Maintaining a long-term collaborative relationship with a trading partner requires:

Question192: Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?

Question193: The focus of collaborative supply chain management differs from a transactional approach by its emphasis on the:

Question194: Which of the following benefits of supplier relationship management typically results from collaboration with a few critical suppliers?

Question195: A business is changing from a business to business model to a business to consumer model. Which of the following statements about this supply chain change is true?

Question196: Which of the following actions typically would be the first step in implementing the philosophy of customer relationship management?

Question197: A corporation must consider which of the following factors when selecting its enterprise resources planning system?

Question198: A procurement manager wants to reduce costs on commodity items. Which of the following actions is likely to result in the greatest savings?

Question199: A firm has increased finished-goods inventories for several products to compensate for increased variability in demand. The firm analyzed shipment data and determined that the variability was due to a few customers placing large orders for single shipments to obtain discounts. Which of the following actions is the firm most likely to take to maintain sales and reduce variability in demand?

Question200: The most likely benefit of implementing a collaborative transportation management system is:

Question201: Which of the following ISO standards is used to assist organizations with sustainable development?

Question202: A company currently produces custom goods for a limited market. To increase market share, the company will implement a strategy to reduce the number of products it produces and reduce delivery lead time. The company can increase its chances of achieving the strategy by:

Question203: In the Supply Chain Operations Reference-model (SCOR®), the cash-to-cash cycle time for a manufacturing company is the number of days between which two of the following situations?

Question204: A company has adequate average available capacity but does not maintain surge capacity. With a distribution route to manage, which of the following actions will provide the most capacity relief?

Question205: Customizing can be an effective warehousing strategy because it allows a company to:

Question206: What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?

Question207: The value that logistics provides within the supply chain can best be summarized as:

Question208: A firm has discovered a product quality issue. What should be the first step in responding to this issue?

Question209: Which of the following metrics is the most appropriate measure of supply chain responsiveness?

Question210: A company wants to implement a system for managing environmental compliance with legislative and regulatory requirements. Which of the following sustainability tools is most appropriate?

Question211: Which of the following strategies is used primarily for demand planning?

Question212: A supplier has decided to improve its forecast accuracy by reducing the information lead time from the retailer. Which of the following actions would be most appropriate to achieve the desired result?

Question213: A company that manufactures complex mechanical assemblies to customer order and ships them directly to the customer is implementing manufacturing cells. The benefit most likely to result from this effort is a reduction in the:

Question214: Which of the following factors is most likely to slow the adoption of collaborative planning, forecasting, and replenishment (CPFR)?

Question215: A company originally based in Germany sets up companies in India, China, Vietnam, Mexico, and Brazil. It sources most of the raw materials locally and employs the local workforce to manage and produce finished goods. Most of the goods produced are consumed in the same country. The company can be classified as what type of enterprise?

Question216: A return material authorization (RMA) policy is used in reverse logistics to:

Question217: 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?

Question218: An effective procurement strategy for commodity products should focus on:

Question219: Allowing for organizational restructuring is an example of which of the following steps in creating successful strategic alliances among suppliers?

Question220: After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?

Question221: Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by:

Question222: A firm experiences a supply chain interruption from a second-tier supplier. Which of the following actions is the firm likely to take to minimize future interruptions?

Question223: Which of the following warehousing tools enables wireless scanning of products?