EMT Practice Test

1. Question Content...

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Question1: A company most likely would implement a supplier certification program to:

Question2: 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?

Question3: Production of a company's highest profit items is dependent upon the purchase of high-quality circuit boards. Which level of collaboration should the company develop with their supplier?

Question4: The implementation of major enterprise-wide changes to eliminate or significantly reduce waste is related to which of the following concepts?

Question5: Which of the following metrics is the most appropriate measure of supply chain responsiveness?

Question6: Which of the following cost elements typically would be included in the cost of carrying inventory?

Question7: Which of the following factors typically is the most significant impediment to implementing collaborative commerce?

Question8: Which of the following outcomes occurs when direct shipping is used instead of a distribution network?

Question9: Which of the following metrics is typically the most appropriate measure of product and service quality?

Question10: Which of the following activities occurs as part of the sales and operations planning process?

Question11: 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?

Question12: A company has been delivering a global product that no longer appears profitable. Senior management's best response is to:

Question13: Variability in product design can best be reduced by:

Question14: Which of the following objectives is emphasized most in an integrated logistics strategy?

Question15: Which of the following benefits of supplier relationship management typically results from collaboration with a few critical suppliers?

Question16: 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:

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: 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?

Question19: 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:

Question20: Which of the following distribution strategies is characterized by items flowing through a warehouse in an almost continuous manner?

Question21: Which of the following elements typically is considered to be an output of demand planning?

Question22: Which of the following factors typically is most important in successfully implementing sales and operations planning (S&OP)?

Question23: A company has a single manufacturing facility. It distributes the products through retail stores located in various regions. Which of the following distribution strategies will minimize the company's warehousing costs?

Question24: Attaching a fuel tank cap to a fuel tank door on a car is an example of which of the following lean techniques?

Question25: Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by:

Question26: Which of the following objectives is the primary driver in the design and implementation of lean process management?

Question27: The primary reason to establish a customer-dedicated warehouse is to:

Question28: Which of the following factors is most likely to slow the adoption of collaborative planning, forecasting, and replenishment (CPFR)?

Question29: In an advanced planning and scheduling (APS) system, which of the following processes feeds the master schedule?

Question30: The purpose of a supply chain metrics dashboard is to:

Question31: A company's market is characterized be frequently changing product demand and pressure for short lead times. The company also faces intense competition. To enhance its competitiveness, the company should stress which of the following strategies?

Question32: 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?

Question33: Variation in upstream requirements can be reduced by increasing:

Question34: 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?

Question35: A company is seeking to attract recent college graduates as customers. Which of the following market characteristics should the company use in order to segment its customers?

Question36: An organization is striving to improve the transfer of multiple levels of data about products and services to trading partners in the supply chain network. Which of the following solutions is most appropriate?

Question37: Which of the following tools is most appropriate for understanding why products fail?

Question38: 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:

Question39: 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?

Question40: 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?

Question41: Which of the following corporate strategies is most consistent with a flexible supply chain strategy?

Question42: Which of the following methods is used to minimize the bullwhip effect?

Question43: The factors to consider in the make-or-buy decision include costs, proprietary knowledge, and:

Question44: In an advanced planning system, which of the following modules feeds the master planning module?

Question45: 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:

Question46: Products that share characteristics of predictable demand and low profit margin will have competition based on which of the following?

Question47: 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?

Question48: Continuous improvement is best described as:

Question49: One of the drawbacks to using ISO 26000 is that it:

Question50: When multiple warehouses are combined into one centralized warehouse, the requirement for safety stock is reduced because:

Question51: 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?

Question52: An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in:

Question53: In order to bring a new product to market quickly while maximizing customer value and minimizing costs, a company should leverage:

Question54: The production scheduler for a bottleneck resource should:

Question55: 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?

Question56: Which of the following types of competitive strategies most likely will be effective for an industry in which the product is a standardized commodity?

Question57: Which of the following activities is the most appropriate use of an advanced planning and scheduling system?

Question58: What is the primary role of marketing in supporting supply chain management?

Question59: Implementation of supply chain applications based on which of the following technologies is most likely to have the lowest fixed costs?

Question60: The customer who provides point-of-sale data remains the sole decision-maker regarding order quantities when what type of inventory strategy is used?

Question61: Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange?

Question62: The use of a seasonal index as a forecasting technique measures the ratio of the:

Question63: Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

Question64: A company distributes products through a multitiered distribution network. Recently there has been high demand variability for a mature product that had experienced stable demand for several years. The most appropriate way to address the variability of demand is to:

Question65: Which of the following actions typically is most important when building a collaborative supply chain?

Question66: 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?

Question67: The primary objective of supply chain management is:

Question68: Requirements for successful application of a demand-driven supply network include:

Question69: When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements?

Question70: A master production schedule serves a company best by functioning as a:

Question71: Interpersonal communication skills and negotiation with suppliers is important because it:

Question72: Which of the following measures of a supply chain performance is most desirable from a stockholder perspective?

Question73: Which of the following actions by a group of trading partners is most likely to quickly improve their economic performance?

Question74: 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?

Question75: The demand side of a traditional warehouse management system primarily is concerned with:

Question76: A distributor wants to run a promotion on an item that a manufacturer has just introduced. Which of the following processes would provide the most useful input data for evaluating the impact of promotions?

Question77: The use of theory of constraints (TOC) differs from traditional decision making because it:

Question78: The Delphi forecasting method offers which of the following advantages?

Question79: Which of the following documents includes the valuation of goods for assessment of duties?

Question80: Which of the following strategies would increase overall supply chain risk?

Question81: Supplier certification procedures verify that a supplier:

Question82: In the analysis of costs, fixed costs are those that are:

Question83: The process of continuous improvement can be defined best as a continuous effort to:

Question84: Which of the following organizational design choices is an example of vertical integration?

Question85: Incorporating supplier input into product and process design helps to:

Question86: A company is transitioning its fulfillment strategy from direct consumer shipment to shipping through an intermediary. Which of the following impacts can be expected?

Question87: Demand management involves which of the following undertakings?

Question88: 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?

Question89: A well-grounded program in which a company focuses on customer success involves:

Question90: The best way to manage a business relationship is to measure performance to:

Question91: Which of the following four perspectives are used in the balanced scorecard?

Question92: 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?

Question93: 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:

Question94: Bill of lading (B/L) documentation includes which of the following?

Question95: Medium-term demand management projections are used primarily to:

Question96: A quick-response program (QRP) will add value to the supply chain by:

Question97: 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:

Question98: Using new housing construction data as a predictor of construction equipment sales is an example of what type of forecasting method?

Question99: 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?

Question100: For an item with high profit impact and low supply risk, what would be a likely procurement strategy to support the overall supply strategy?

Question101: Which of the following factors typically is most important to a company that uses the chase production strategy when evaluating potential suppliers for a component?

Question102: Which of the following actions is most likely to improve the flow of funds between a group of supply chain partners?

Question103: Customizing can be an effective warehousing strategy because it allows a company to:

Question104: A company faces highly unpredictable demand for an end item. Which of the following production methods would work best for meeting customer demand within a reasonable lead time?

Question105: Which of the following measures effectively evaluates overall resources in a distribution warehouse?

Question106: A company would like to benchmark its inventory levels against other companies. Which of the following metrics is best to use for this purpose?

Question107: 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?

Question108: An organization is partnering with a supplier. The most appropriate tool to ensure that the supplier has the necessary capabilities is:

Question109: A lean supply chain transformation initiative requires:

Question110: Which of the following variables is the most appropriate customer-facing goal used to determine the target inventory level?

Question111: Compared to a global strategy, a multicountry strategy would be characterized by:

Question112: Unresolved conflicts from the sales and operations planning (S&OP) process will result in which of the following outcomes?

Question113: 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?

Question114: 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 1/2-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:

Question115: Which of the following actions is most likely to improve the cash-to-cash cycle time?

Question116: What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?

Question117: Bullwhip effect can be reduced by which of the following combinations of actions?

Question118: A company has an asset turnover ratio of 1.8, inventory of $3,000, a 20% profit margin, and $5,000 in total assets. What is the total sales volume for the company?

Question119: An effective company strategy results when combining innovative products with:

Question120: 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?

Question121: The probability of customer dissatisfaction is highest when which of the following conditions exists?

Question122: Which of the following actions by trading partners would be most appropriate to protect against variability in supply and demand?

Question123: Which of the following processes would a company use to evaluate the risk profile for end-of-life planning for a product family?

Question124: Organizations that change from a traditional purchasing perspective to a supply chain perspective most likely will adopt techniques related to:

Question125: A firm has discovered a product quality issue. What should be the first step in responding to this issue?