EMT Practice Test

1. Question Content...

---

Question1: Sustainable business practices are those capable of meeting the:

Question2: When determining lot sizes, consideration should be given to balancing which of the following costs?

Question3: Which of the following product records is internationally recognized for providing detailed categorization and descriptions?

Question4: Which of the following factors is the key determinant of safety stock for finished goods?

Question5: Which of the following elements of total quality management (TQM) results in a lower overall cost of the product?

Question6: When an importer and manufacturer are operating in a free trade zone, payment of a customs duty is triggered when products are:

Question7: 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:

Question8: Which of the following forecasting methods relies on the opinions of a panel of experts?

Question9: Which of the following strategies is most appropriate for managing unknown risks in a global supply chain?

Question10: Kaizen is a process used in supply chain networks primarily to achieve:

Question11: Which of the following processes enables joint planning of key supply chain activities?

Question12: Which of the following activities occurs as part of the sales and operations planning process?

Question13: A key to increasing supply chain management integration is to:

Question14: A well-grounded program in which a company focuses on customer success involves:

Question15: Which of the following levels in a supply chain network represents the most upstream external activity?

Question16: A remanufacturer of equipment is most likely to have what type of supply chain?

Question17: The purpose of continuous improvement in the supply chain is to:

Question18: Transforming company policies into objectives and specific goals creates a:

Question19: The customer who provides point-of-sale data remains the sole decision-maker regarding order quantities when what type of inventory strategy is used?

Question20: The most likely benefit of implementing a collaborative transportation management system is:

Question21: A company that has selected the hybrid production method has multiple alternatives for the timing of activating and deactivating capacity. The inventory carrying costs and which of the following categories of costs would typically be relevant in the analysis of the alternatives?

Question22: Companies with manufacturing facilities in one country are more cost-competitive in exporting goods to world markets when:

Question23: What is the primary benefit of using modular rather than integral designs?

Question24: Medium-term demand management projections are used primarily to:

Question25: 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?

Question26: Which of the following situations is an example of inventory being held as a way to balance supply and demand?

Question27: Which of the following tools has improved management of the customer pipeline?

Question28: When of the following outcomes is achieved through the reduction in the number of a firm's supplier?

Question29: Which of the following outcomes is an expected benefit of effectively implementing supply chain event management software?

Question30: Which of the following types of data most likely will be communicated between two parties who have formed a strategic alliance?

Question31: Which of the following criteria are important when establishing a warehouse distribution system?

Question32: Which of the following statements represents a major assumption needed to effectively use days of supply as a measure?

Question33: Which of the following characteristics typically is required for a collaborative strategic relationship?

Question34: A retailer that operates a three-level distribution network is considering eliminating one level in the network and shipping directly from the regional warehouses to the retail outlets. Which of the following outcomes is most likely to result?

Question35: An effective company strategy results when combining innovative products with:

Question36: In the Supply Chain Operations Reference (SCOR) model, which of the following metrics measures responsiveness of a supply chain?

Question37: The focus of collaborative supply chain management differs from a transactional approach by its emphasis on the:

Question38: 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?

Question39: Which of the following objectives is a major principle of theory of constraints (TOC) accounting when applied to a supply chain?

Question40: Unresolved conflicts from the sales and operations planning (S&OP) process will result in which of the following outcomes?

Question41: Which of the following measures of a supply chain performance is most desirable from a stockholder perspective?

Question42: Which of the following descriptions represents cash-to-cash conversion?

Question43: The purpose of price differentiation is to:

Question44: To achieve the objective of increased profits, a company that implements supply chain tactics must effectively address the conflicts between inventory investment and:

Question45: What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?

Question46: Cash-to-cash cycle time is a measure of a firm's:

Question47: A company most likely would consider moving a portion of its manufacturing to a second location to:

Question48: A possible risk of licensing other companies to manufacture products is:

Question49: Which of the following circumstances must exist to implement a warehouse management system (WMS)?

Question50: Which of the following statements regarding transportation negotiation is correct?

Question51: Which of the following activities is critical to successful synchronization of supply and demand throughout a supply chain?

Question52: Reverse supply chain activity typically peaks nearest the beginning of which of the following stages of the product life cycle?

Question53: Replacing a raw material in a manufacturing process with an alternate material that reduces emissions is an example of using:

Question54: A company has determined that products sold to a large, strategic customer have unacceptable low variable margins. Which of the following strategies should the company use to improve profitability of sales to that customer?

Question55: 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?

Question56: 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?

Question57: Which of the following situations is an example of postponement?

Question58: Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

Question59: Which of the following benefits would a company realize by implementing software-as-a-service (SaaS)?

Question60: Which of the following relationship activities is most impacted by a lack of trading partner trust?

Question61: A lean supply chain transformation initiative requires:

Question62: 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?

Question63: The United Nations Global Compact uses 10 guiding principles to:

Question64: The four risks of supply chain risk management are supply, demand,:

Question65: When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements?

Question66: In an advanced planning system, which of the following modules feeds the master planning module?

Question67: The primary reason for the evolution of the supply chain is:

Question68: When a company works on controlling stockout frequency, the company is addressing which of the following attributes of customer service?

Question69: Inbound logistics is a supply chain management term used for:

Question70: A high level of which of the following attributes is considered to be undesirable in a supply chain?

Question71: Which of the following actions by trading partners will likely reduce the goods that will be processed by the reverse supply chain?

Question72: What is the primary role of marketing in supporting supply chain management?

Question73: An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in:

Question74: Interpersonal communication skills and negotiation with suppliers is important because it:

Question75: Supply chains delivering products or services are most able to respond quickly to changing market requirements when:

Question76: A key assumption of the economic order quantity (EOQ) is that:

Question77: Which of the following strategies can be used to help mitigate negative effects of events that rarely occur?

Question78: Bill of lading (B/L) documentation includes which of the following?

Question79: Which of the following actions is most likely to improve the cash-to-cash cycle time?

Question80: When multiple warehouses are combined into one centralized warehouse, the requirement for safety stock is reduced because:

Question81: A retailer that imports furniture from several manufactures in low-wage countries wants to reduce variability in quality. The retailer has proposed merging with one of the manufacturers and giving it sole responsibility for one product family. The proposed merger is an example of:

Question82: The ISO 31000 standard can be best used for which of the following actions?

Question83: Which of the following metrics is the most appropriate measure of supply chain responsiveness?

Question84: Customizing can be an effective warehousing strategy because it allows a company to:

Question85: An organization is redesigning its processes to maximize the use of parallel operations. An expected outcome of this effort typically would include:

Question86: Which of the following techniques typically is most effective for controlling variability of demand in a supply chain?

Question87: Which of the following actions most likely will increase market share for products that are critical manufacturing components for customers?

Question88: Which of the following activities is most appropriate in the implementation of a lean production strategy?

Question89: Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

Question90: A sales and marketing directory who wants to transform a company into a customer-driven organization most likely would consider:

Question91: The implementation of major enterprise-wide changes to eliminate or significantly reduce waste is related to which of the following concepts?

Question92: A warehouse supervisor has discovered a shortage of material to fulfill a customer order. If the inventory report shows that there should be enough material to fill the order, what should be done next?

Question93: Which of the following statements best identifies the value of using a supplier rating system?

Question94: The most important challenge to consider when sourcing globally is:

Question95: 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:

Question96: Which of the following statements about the use of bar code labels for product identification in the supply chain is true?

Question97: A clothing company focuses its attention on high-fashion products and rapid product development. Which of the following types of value is the company trying to create?

Question98: One key factor to consider when selecting suppliers for their potential to sustain long-term, mutually profitable relationships is:

Question99: In order to bring a new product to market quickly while maximizing customer value and minimizing costs, a company should leverage:

Question100: Which of the following criteria is the primary factor when considering storage locations for high volume products?

Question101: A manufacturing company has several inexpensive items that are critical to the production process. The supply of these items has been depleted several times. Which of the following actions is most likely to reduce stockouts?

Question102: Which of the following objectives is emphasized most in an integrated logistics strategy?

Question103: Which of the following forecasting techniques is most appropriate when data is scarce?

Question104: The value that logistics provides within the supply chain can best be summarized as:

Question105: When designing a supply chain for strategic advantage, a company first should consider:

Question106: 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?

Question107: Continuous improvement is best described as:

Question108: Which of the following practices has improved management of the customer pipeline?

Question109: A product should be designed for a manufacturing process with the smallest number of:

Question110: 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?

Question111: 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?

Question112: Which of the following elements is critical to successfully using a sales and operations planning process?

Question113: Which of the following considerations is an important supply chain design decision?

Question114: The Delphi forecasting method offers which of the following advantages?

Question115: A new distribution warehouse is added to an existing supply chain network. Which of the following factors primarily is responsible for the resulting overall reduction of customer delivery lead times?

Question116: The primary reason for a firm to pursue strategic supply chain activities is to:

Question117: Which of the following tools would help a team of operators to prioritize causes of equipment failures?

Question118: A company planning to build collaborative relationships with trading partners should first:

Question119: 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?

Question120: Which of the following metrics is the most appropriate measure of the availability of products to ship in a make-to-stock environment?

Question121: Which of the following variables is the most appropriate customer-facing goal used to determine the target inventory level?

Question122: Allowing for organizational restructuring is an example of which of the following steps in creating successful strategic alliances among suppliers?

Question123: Which of the following conditions are most indicative of a company that is effectively managing its cash?

Question124: A company with a fleet of trucks is considering using a third-party logistics (3PL) provider to distribute a new product. Which of the following benefits most likely will result?

Question125: Which of the following processes would a company use to evaluate the risk profile for end-of-life planning for a product family?

Question126: Implementation of supply chain applications based on which of the following technologies is most likely to have the lowest fixed costs?

Question127: A shipping company investing to reduce damages due to weather conditions is an example of:

Question128: Which of the following customer relationship management activities most appropriately is used for revenue generation?

Question129: Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange?

Question130: The primary reason to establish a customer-dedicated warehouse is to:

Question131: The process of continuous improvement can be defined best as a continuous effort to:

Question132: 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?

Question133: The six sigma approach to quality focuses on increasing customer satisfaction by:

Question134: A corporation must consider which of the following factors when selecting its enterprise resources planning system?

Question135: Which of the following processes is key to customer relationship management (CRM)?

Question136: A company has a high product mix and has decided to increase its supply chain flexibility. The most appropriate action for the company to take is to:

Question137: Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by:

Question138: Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?

Question139: 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?

Question140: Cost reduction, improvement of company focus, and freeing assets from noncore activities are among the results achieved through effective implementation of:

Question141: Which of the following statements about warehouse layout and storage is correct?

Question142: Variability in product design can best be reduced by:

Question143: Which of the following characteristics are reflective of a resilient supply chain?

Question144: 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?

Question145: A supplier is offering a price discount if more is ordered at one time. The offer should be analyzed to determine if a larger order is appropriate considering: the impact of the

Question146: Which of the following measures would be most appropriate for a supply chain focused on reliability as a competitive priority?

Question147: 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:

Question148: The social dimension of sustainability typically would be addressed when developing and implementing policies regarding:

Question149: In the analysis of costs, fixed costs are those that are:

Question150: 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?

Question151: Which of the following actions hedges against commodity price fluctuations in a supply chain?

Question152: Which of the following tools will facilitate greater collaboration as the supply chain matures?

Question153: The globalization of a supply chain typically increases uncertainty and:

Question154: Which of the following supply chain areas utilize order management cost metrics?

Question155: 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?

Question156: Which of the following marketing strategies emphasizes offering services at a lower price than rival services with comparable features?

Question157: Which of the following factors typically is most important in successfully implementing sales and operations planning (S&OP)?

Question158: Which of the following statements defines the function of the bill of lading (B/L)?

Question159: A company has been delivering a global product that no longer appears profitable. Senior management's best response is to:

Question160: Which of the following actions typically is most important when building a collaborative supply chain?

Question161: Which of the following factors is a measure of supply chain reliability?

Question162: A company that produces a set of standard products, which are sold through multiple channels, would segment its sales by:

Question163: A key challenge in managing the supply chain for an innovative product is that:

Question164: Compared to a global strategy, a multicountry strategy would be characterized by:

Question165: Risk pooling is a concept that suggests:

Question166: A quick-response program (QRP) will add value to the supply chain by:

Question167: 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?

Question168: 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?

Question169: A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer service levels for customers B and C?

Question170: In order to achieve economies of scale, a manufacturer is interested in producing large quantities. Which of the following functions of inventory will assist the manufacturer in achieving this goal?

Question171: Demand management involves which of the following undertakings?

Question172: Which of the following results can be expected from sharing a common understanding of demand and consumption patterns among supply chain participants?

Question173: 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:

Question174: 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:

Question175: 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?

Question176: Which of the following cost elements typically would be included in the cost of carrying inventory?

Question177: Which of the following strategies can be used to help manage global risks?