EMT Practice Test

1. Question Content...

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Question1: 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:

Question2: A master scheduler receives a new order with a due date inside the demand time fence (DTF). The best response is to:

Question3: Which of the following measures of a supply chain performance is most desirable from a stockholder perspective?

Question4: Customizing can be an effective warehousing strategy because it allows a company to:

Question5: When developing a supply chain strategy, which of the following actions would be used to evaluate the achievement of the long-term goals of a business?

Question6: 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?

Question7: A company desires to use customer relationship management (CRM) to enable supply chain collaboration.
Implementation of CRM will enable the organization to most effectively:

Question8: Which of the following types of risk typically would be most difficult to plan for and mitigate?

Question9: A company's cash-to-cash cycle time is 36 days. How many weeks of inventory are on hand if the average collection time from customers is 60 days, and the company pays its vendors in 45 days?

Question10: A pattern of increased shipments from manufacturing plants to a central warehouse at month-end and quarter-end typically would cause which of the following situations in a central warehouse?

Question11: One of the drawbacks to using ISO 26000 is that it:

Question12: Which of the following tools is most appropriate for understanding why products fail?

Question13: When deciding whether to make a component internally or to outsource production, a company must:

Question14: A company has been delivering a global product that no longer appears profitable. Senior management's best response is to:

Question15: Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

Question16: The purpose of a supply chain metrics dashboard is to:

Question17: The voice-of-the-customer (VOC) approach is used most appropriately as a way to:

Question18: Which of the following documents includes the valuation of goods for assessment of duties?

Question19: Which of the following metrics is the most appropriate measure of the availability of products to ship in a make-to-stock environment?

Question20: A company is transitioning its fulfillment strategy from direct consumer shipment to shipping through an intermediary. Which of the following impacts can be expected?

Question21: A company's competitive advantage is product differentiation. The company has multiple new products with unique features targeted to various customer groups. It plans to sell its products via retail channels and online.
One of the activities the company should focus on first when determining inventory levels for each product is:

Question22: 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?

Question23: Which of the following activities is an aspect of proper demand management?

Question24: 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?

Question25: Which of the following conditions are most indicative of a company that is effectively managing its cash?

Question26: A large retailer would like to reduce inventory investment in its distribution network. Which of the following actions is most likely to produce the desired result in the shortest time?

Question27: 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?

Question28: Which of the following activities is critical to successful synchronization of supply and demand throughout a supply chain?

Question29: Which of the following risks does currency fluctuation pose if a company is operating globally?

Question30: 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?

Question31: Which of the following considerations are essential to a company's advanced supply chain strategy that utilizes cloud computing?

Question32: Sell-side e-commerce must include:

Question33: Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?

Question34: 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?

Question35: 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:

Question36: Which of the following cost elements typically would be included in the cost of carrying inventory?

Question37: Which type of purchase is best suited for single sourcing with a preferred supplier to reduce supply chain risk?

Question38: The diagram below shows the process of manufacturing of item D and the capacity of each operation. Each operation requires one unit from the previous step.

Which of the following is the total production throughput?

Question39: Which of the following techniques is most effective for a company to sell high-volume products to multiple market segments?

Question40: Which of the following actions typically would be the first step in implementing the philosophy of customer relationship management?

Question41: Which of the following areas of concern is an important strategic inventory management decision?

Question42: 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?

Question43: Which of the following actions by a manufacturer most likely would improve service levels throughout the supply chain?

Question44: Which of the following distribution strategies is characterized by items flowing through a warehouse in an almost continuous manner?

Question45: 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?

Question46: 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?

Question47: An item must be added to inventory to support new business. Which of the following inputs should be considered to determine minimum inventory level?

Question48: A global manufacturing is implementing a remanufacturing program to improve its triple bottom line (TBL).
Which dimension of TBL will the new program positively affect?

Question49: The primary reason to establish a customer-dedicated warehouse is to:

Question50: What is the inventory turnover for a company with the following financial data?

Question51: Attaching a fuel tank cap to a fuel tank door on a car is an example of which of the following lean techniques?

Question52: A well-grounded program in which a company focuses on customer success involves:

Question53: 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:

Question54: A manufacturer can simplify the forecasting process by pooling demand forecasts for a product group and then:

Question55: The primary objective of supply chain management is:

Question56: 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?

Question57: Using an independent service provider for logistics would be most appropriate in which of the following situations?

Question58: The most cost-effective way to increase the velocity of goods in a supply chain is to:

Question59: When implementing e-commerce in the supply chain, a company's toughest challenge most likely will be:

Question60: A main benefit of using customer relationship management (CRM) is:

Question61: A remanufacturer of equipment is most likely to have what type of supply chain?

Question62: The ABC classification system answers which two of the following questions?

Question63: Which of the following arguments are made against traditional accounting methods for logistics expenses to an organization?

Question64: Which of the following terms represents a time series forecasting technique?

Question65: The social dimension of sustainability typically would be addressed when developing and implementing policies regarding:

Question66: Which of the following results can be expected from sharing a common understanding of demand and consumption patterns among supply chain participants?

Question67: Throughout most of the supply chain, safety stock will be de-emphasized as a result of improved:

Question68: 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:

Question69: Which of the following four perspectives are used in the balanced scorecard?

Question70: The use of standardized components typically results in:

Question71: 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?

Question72: 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:

Question73: An advanced planning system differs primarily from enterprise resources planning by:

Question74: Which of the following strategies can be used to help manage global risks?

Question75: Which of the following documentation represents a carrier's method of charging for transportation services performed?

Question76: The most likely benefit of implementing a collaborative transportation management system is:

Question77: The primary reason for the evolution of the supply chain is:

Question78: 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?

Question79: Which of the following descriptions represents cash-to-cash conversion?

Question80: Which of the following elements is critical to successfully using a sales and operations planning process?

Question81: Which of the following statements best identifies the value of using a supplier rating system?

Question82: A shipping company investing to reduce damages due to weather conditions is an example of:

Question83: Overall supply chain risk may be increased by implementing which of the following strategies?

Question84: 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:

Question85: Which of the following statements about functional products is true?

Question86: Which of the following benefits would a company realize by implementing software-as-a-service (SaaS)?

Question87: 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?

Question88: Which of the following statements regarding intellectual property protection is correct?

Question89: The probability of customer dissatisfaction is highest when which of the following conditions exists?

Question90: The mission of the global reporting initiative (GRI) is to provide a:

Question91: Which of the following tools would help a team of operators to prioritize causes of equipment failures?

Question92: 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?

Question93: 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:

Question94: Which of the following statements regarding ANSI Z.10 occupational satisfy and health standards is correct?

Question95: 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:

Question96: Which of the following outcomes is an expected benefit of effectively implementing supply chain event management software?

Question97: 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:

Question98: 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?

Question99: 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?

Question100: 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?

Question101: Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?

Question102: Which of the following elements typically is considered to be an output of demand planning?

Question103: Which of the following costing approaches directly reflects logistics performance?

Question104: Which of the following approaches most likely will help a company reduce its cost of sales while increasing customer loyalty.

Question105: In a service environment, a decrease in demand over the long term will most likely result in:

Question106: Which of the following processes would a company use to evaluate the risk profile for end-of-life planning for a product family?

Question107: Which of the following tools a appropriate to overall organizational performance?

Question108: The factors to consider in the make-or-buy decision include costs, proprietary knowledge, and:

Question109: In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing most likely will be:

Question110: Which of the following metrics is the most appropriate measure of supply chain responsiveness?

Question111: One of the difficulties in purchasing services is to:

Question112: A firm is assessing the risk of business disruption due to several types of natural disasters. When determining the risk of each type of disaster, the firm should consider the probability of each type of disaster and the:

Question113: 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?

Question114: Incorporating supplier input into product and process design helps to:

Question115: Which of the following reasons it often why many companies fail ' to achieve the implementation benefits of reverse logistics?

Question116: Which of the following principles is included in the United Nations (UN) Global Compact?

Question117: When a company works on controlling stockout frequency, the company is addressing which of the following attributes of customer service?

Question118: Which of the following organizational design choices is an example of vertical integration?

Question119: Which of the following measures best describes fill rate?

Question120: Which of the to the financial following descriptions applies balance sheet for a firm?

Question121: Compared to a global strategy, a multicountry strategy would be characterized by:

Question122: The six sigma approach to quality focuses on increasing customer satisfaction by:

Question123: The Delphi forecasting method offers which of the following advantages?

Question124: When determining lot sizes, consideration should be given to balancing which of the following costs?

Question125: Which of the following responses to risk best describes the evolving concept of flexibility in supply chain risk management?

Question126: When developing an environmentally responsible purchasing program, which of the following alternatives should be considered?

Question127: 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?

Question128: 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?

Question129: Organizations that change from a traditional purchasing perspective to a supply chain perspective most likely will adopt techniques related to:

Question130: Which of the following practices has improved management of the customer pipeline?

Question131: The most useful inventory costing method which enables purchase price variance analysis is:

Question132: Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?

Question133: Which of the following tools has improved management of the customer pipeline?

Question134: In a supply chain network, the distribution center (DC) provides which of the following functions for the factory?

Question135: A company has significant cash invested in its finished goods inventories. What action can this company take to significantly reduce its inventory investment while maintaining its customer service levels?

Question136: Which of the following operations is the best example of reuse?

Question137: The main purpose of market research for supply chain design is to identify:

Question138: A company that is effectively managing its cash will have which of the following conditions?

Question139: 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?

Question140: When an importer and manufacturer are operating in a free trade zone, payment of a customs duty is triggered when products are:

Question141: An effective company strategy results when combining innovative products with:

Question142: Which of the following tools will facilitate greater collaboration as the supply chain matures?

Question143: 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?

Question144: In an assemble-to-order manufacturing environment, the master production schedule is typically the schedule of:

Question145: Which of the following performance indicators can be used to measure the effectiveness of a vendor-managed inventory program?

Question146: 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?

Question147: Which of the following methods is used to minimize the bullwhip effect?

Question148: Which of the following warehousing approaches combines inventory from multiple suppliers into a consolidated shipment to a specific customer?

Question149: Which of the following inputs is used in developing a project charter?

Question150: Continuous improvement is best described as:

Question151: 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?

Question152: The most effective means to measure customer loyalty would use which of the following approaches?

Question153: Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

Question154: The United Nations Global Compact uses 10 guiding principles to:

Question155: 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:

Question156: Improving fill rate is an objective related to which of the following perspectives of a balanced scorecard?

Question157: The globalization of a supply chain typically increases uncertainty and:

Question158: Which of the following situations is an example of inventory being held as a way to balance supply and demand?

Question159: Which of the following types of competitive strategies most likely will be effective for an industry in which the product is a standardized commodity?

Question160: Which of the following activities is the most appropriate use of an advanced planning and scheduling system?

Question161: The primary risk associated with outsourcing innovative components to suppliers is:

Question162: In a reverse supply chain, which of the following tools enables forecasting the usability of each part in the returned product?

Question163: 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?

Question164: Which of the following techniques typically is most effective for controlling variability of demand in a supply chain?

Question165: A key concept distinguishing six sigma from lean manufacturing and just-in-time (JIT) concepts is:

Question166: Which of the following rider less material handling systems can be characterized by movement along the floor using optical, magnetic, or wireless control?

Question167: Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange?

Question168: In the Supply Chain Operations Reference (SCOR) model, which of the following metrics measures responsiveness of a supply chain?

Question169: Which of the following types of alignments between extended supply chain partners will yield the highest level of competitive advantage?

Question170: Which of the following activities is most appropriate in the implementation of a lean production strategy?

Question171: Which of the following relationship activities is most impacted by a lack of trading partner trust?

Question172: Which of the following factors is the key determinant of safety stock for finished goods?

Question173: 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?

Question174: Which of the following actions is most likely to reduce the risk of product shortages for a company planning to use a subcontractor to produce some of its products?

Question175: The design process by which a firm structures and manages the supply chain to achieve optimization is called:

Question176: A third-party logistics (3PL) provider most likely will add the greatest contributed value in the supply chain by:

Question177: After two firms have established an initial relationship to apply the principles of collaborative planning, forecasting, and replenishment (CPFR) for products, the next logical step is to:

Question178: Which of the following forecasting techniques is most appropriate when data is scarce?

Question179: Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:

Question180: A group of trading partners that produce and distributes supplies to commercial and industrial customers has decided to pursue competitive advantage by being responsive to customers' needs. The most appropriate positioning of safety stock to support this initiative would be at:

Question181: Interpersonal communication skills and negotiation with suppliers is important because it:

Question182: Which of the following approaches would be used to enhance compliance, minimize risks, and connect supply chain activities when exporting products to emerging markets?

Question183: Unresolved conflicts from the sales and operations planning (S&OP) process will result in which of the following outcomes?

Question184: A role-based entry into a company's system that aggregates all required sources of information into a single environment is known as:

Question185: A lean supply chain transformation initiative requires:

Question186: Inbound logistics is a supply chain management term used for:

Question187: Which of the following is the key benefit obtained by using technology in supply chain?

Question188: Which of the following outcomes is the principal result of a successful sales and operations planning (S&OP) session?

Question189: What is the primary role of marketing in supporting supply chain management?

Question190: Cost reduction, improvement of company focus, and freeing assets from noncore activities are among the results achieved through effective implementation of:

Question191: A firm has discovered a product quality issue. What should be the first step in responding to this issue?

Question192: An advantage of using a third-party logistics service (3PL) is improved:

Question193: Products that share characteristics of predictable demand and low profit margin will have competition based on which of the following?

Question194: Which of the following e-auctions is ideal for selling off obsolete maintenance, repair, and operating (MRO) supplies?

Question195: A lack of which of the following elements is most likely to impede the implementation of a demand management system?

Question196: Component commonality in manufacturing primarily allows a company to:

Question197: Which of the following factors would typically represent period demand?

Question198: Which of the following risks is associated with outsourcing?

Question199: The most appropriate reason for a business to comply with the United Nations (UN) Global Compact practices typically would be to:

Question200: Which of the following factors is the most important driver of supply chain change?

Question201: 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?

Question202: Which of the following actions is in accordance with the Ten Principles in the United Nations (UN) Global Compact?

Question203: Bullwhip effect can be reduced by which of the following combinations of actions?

Question204: Which of the following statements is true when selecting the mode of transportation to use in a global supply chain?

Question205: Which of the following factors is most likely to slow the adoption of collaborative planning, forecasting, and replenishment (CPFR)?

Question206: A possible risk of licensing other companies to manufacture products is:

Question207: A benefit of using radio frequency identification (RFID) instead of bar coding would be:

Question208: The Global Reporting Initiative (GRI) is intended to:

Question209: A company most likely would consider moving a portion of its manufacturing to a second location to:

Question210: An insurance broker is interested in increasing price competition among its carriers. Which of the following strategies would be an efficient way to enable the price reductions?

Question211: 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:

Question212: A primary objective of a lean enterprise is to:

Question213: Which of the following statements describes a continuous replenishment strategy in a retail environment?

Question214: An effective procurement strategy for commodity products should focus on:

Question215: Which of the following consequences is typical of a push-based supply chain?

Question216: Which of the following measures would be an appropriate indicator of the marketing and sales organization's support of the sales and operations planning (S&OP) process?

Question217: The production scheduler for a bottleneck resource should:

Question218: Transforming company policies into objectives and specific goals creates a:

Question219: The use of theory of constraints (TOC) differs from traditional decision making because it:

Question220: 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?

Question221: The use of break-bulk warehouses allows for reduced transportation costs by receiving:

Question222: 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?

Question223: Reverse supply chain activity typically peaks nearest the beginning of which of the following stages of the product life cycle?

Question224: Which of the following objectives is emphasized most in an integrated logistics strategy?

Question225: A company considers moving a portion of its production to a distant country to support a major customer.
Which of the following actions is most effective in mitigating the risk of financial loss in the event of a global economic downturn?

Question226: 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?

Question227: Variability in product design can best be reduced by: