EMT Practice Test

1. Question Content...

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Question1: DEF, Inc. is in the ramp-up phase of a unique medical device. The device has a two-year life expectancy. The sales forecast for the ramp-up period is as follows:
MonthJulAugSepOctNovDecJanFeb
Unit Sales1001502006001,4002,2004,00010,000
Demand after February is expected to remain at 10,000 units per month for several months, then decrease gradually. The units are small, and thus maintaining an inventory of up to 10,000 units is possible.
There are only three suppliers capable of providing the specialized component critical to this product. The production capacities of these suppliers are as follows:
*Supplier X has a capacity of 500 units per month at a cost of S20 per unit, representing 80% of its total business
*Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its total business
*Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its total business Two of these companies-Supplier X and Supplier Y-are minority businesses.
Given this situation, DEF should contract with

Question2: FGH, Inc. is a beverage manufacturer. FGH is having difficulty coordinating daily delivery requirements of bottles from Supplier X. Delivery schedules are set weekly, but often need to be changed. However, the supplier has otherwise established itself as reliable. In the hope of speeding up the replenishment process and reducing coordination efforts, FGH is prepared to share production and inventory information with Supplier X.
In this situation, which of the following should FGH implement with Supplier X?

Question3: A large retailer and one of its suppliers establish a process to combine intelligence from both organizations in order to improve product availability while reducing inventory, transportation, and logistics costs. This process is known as which of the following?

Question4: BCD, Inc. is an electronics manufacturer. For many years, BCD has purchased custom white packaging with the company's signature black and red logo. Recently, BCD's quality team rejected a large number of these boxes due to the red and black portions of the logo not being correctly aligned. In addition, BCD's program manager has requested that supply management reduce the costs of the packaging, which have risen dramatically in recent years.
BCD's supply manager meets with the current supplier and learns the following:
1)The two-tone logo requires multiple setups, and the logo is often misaligned, leading to scrap
2)A single-color logo will not have alignment problems
3)The white boxes are more expensive to produce than plain cardboard boxes
4)The marketing team has determined that the all-white packages are no longer a unique way to brand the organization's products Given this situation, which of the following would be the BEST course of action for BCD's supply manager to take?

Question5: A firm completes its near level production, five-month demand plan for the next business planning cycle:
Month 1Month 2Month 3Month 4Month 5
Demand Forecast15,00020,00025,00025,00018,000
Production Plan (Regular Time)20,00020,00020,00020,00018,000
Production Plan (Overtime)5,000
Ending Inventory5,0005,000
Average Inventory2,5005,0002,500
Workforce PlanningStarting WorkforceMonth 1Month 2Month 3Month 4Month 5 Hires7 Layoffs2 Actual Workforce Size132020202018 Regular Time Hours Required2,0002,0002,0002,0001,800 Overtime Hours Required500 Costs Regular time cost per unit$15 Overtime cost per unitS25 Monthly inventory cost per unit$1 Cost of hire$1,500 Cost of layoffS400 What is the cost of this demand plan?

Question6: A buyer is reviewing a quote for a shipment of electronic materials from Europe to Africa. The supplier offers a reasonable price for the materials and plans to deliver them using its regular shipping service. The terms are such that the buying company takes possession of the goods once they are loaded onto a boat in Europe.
Which of the following information should be of GREATEST concern to the buyer?

Question7: A chemical supply company creates a new liquid chemical product which must be shipped by tanker truck.
The new chemical is expected to constitute 10% of the firm's sales over the next five years. The company's other sales are all solid powder chemicals. Given these circumstances, which of the following will be the MOST cost effective method for the company to ship the new product'

Question8: A supply manager receives four bids for a special piece of equipment. The equipment is large and does not fit into a normal sea container. The bids are as follows:
Supplier 1Supplier 2Supplier 3Supplier 4
Bid$2,110,000$2,105,000$2,110,000$2,115,000
Incoterms 2020 RuleGIFDPUFCAFAS
The costs of transportation, included within each bid price, are as follows:
Responsibility for Payment to CarrierTransfer of Risk to BuyerCost of Transportation Supplier, before goods are loaded onto vessel: purchaser thereafterAlongside vessel nominated by purchaser$50,000 Supplier to named port of destination: purchaser thereafterOnce goods have been loaded onto the vessel$55,000 Supplier to named place of destination once unloaded: purchaser thereafterOnce goods have been unloaded at named place of destination540,000 PurchaserWhere goods are loaded onto the collecting vehicle$30,000 The supply manager has taken account the firm's risk profile and wishes to use FCA for its Incoterms 2020 rules. Adjusting the pricing in the tenders to reflect this, which supplier should be awarded the contract (based on the lowest price)?

Question9: A company would like to reduce its inventory. The firm's investment in inventory represents 12% of the company's $11 million total assets. The inventory carrying cost is 20%. An inventory reduction of $1 million is considered a feasible goal. What impact would meeting this goal have on profit?

Question10: Which of the following is a key requirement of xRP7

Question11: XYZ, Inc. has experienced a significant increase in the number of expedited orders with a key supplier over the last few months. In this situation, XYZ should

Question12: A retailer of high-value consumer electronics experiences a significant increase in theft within its forward and reverse logistics operations, both of which are subcontracted to third parties. Which of the following is the FIRST course of action the retailer should undertake in order to mitigate loss within the subcontractors' chain of custody?

Question13: During an inventory review, a supply manager confirms that parts used for the maintenance of equipment sold during the previous year are still being stored in the warehouse. These parts cannot be used on current equipment. Which of the following BEST describes these parts'

Question14: An engineering team requests assistance from a supply manager to resolve an issue related to a new product under development. The product is seasonal, and the organization has a short lead time to bring the product to market. Given this situation, which of the following is the BEST course of action for the supply manager to take7

Question15: A company is designing a new warehousing strategy. The firm wants to hire the most qualified personnel, utilize the best technology, and minimize the repetition of inventory across operations. Which of the following warehousing strategies will be BEST suited toward attaining the organization's goals?

Question16: Which of the following refers to the practice of buying a commodity on the open market for immediate delivery?

Question17: A company supply manager conducts a review of current freight contracts and finds that payments to the primary carrier for outbound shipments have been based on a published rate schedule, which is revised annually. The supply manager believes the shipping costs may be higher than necessary. In order to reduce outbound transportation costs, which of the following should the supply manager do FIRST'

Question18: A manufacturing firm prepares the following materials requirement plan (MRP):
Master Production Schedule
Week123456
Item A101015152020
Relevant Information
ItemItem's ParentItem's Lead TimeItem's Lot SizeItem's Current Inventory ANone1 weekLFL50 BA2 weeks5010 CB2 weeks5010 Using MRP methodology, how much of Item B should be ordered, and when should it be ordered7

Question19: A distributor receives orders from a customer for the following parts:
PO1801: 6 pcs of Item #XYZ-06
3 pcs of Item #XYZ-09
PO1802: 3 pcs of Item #XYZ-09
Item #XYZ-06 is currently out of stock. The shipping manager contacts the customer, who gives authorization to ship the available parts and back order the rest. What is the line count fill rate for the customer?

Question20: A manufacturer has historically ordered fasteners utilizing monthly fixed order quantities. The firm wishes to explore the feasibility of using economic order quantity (EOQ), and determines that the EOQ is less than the supplier's quoted price break. Which of the following is the BEST course of action for the firm to take?

Question21: A disaster response manager plans to deliver pallets of bottled water to volunteers at a disaster site. The water comes from a nearby bottling company at a preferential cost of $50 per pallet. The number of pallets of bottled water needed is impossible to know in advance due to numerous variables, although experience indicates that the likelihood of consumption is equal: a 25% chance each for 1, 2, 3 or 4 pallets of bottled water. If a full pallet is returned, a restocking fee of 520 is charged. If not enough water is brought in, the cost of purchasing a pallet of water on location is expected to be $200.
How many pallets should the manager deliver?

Question22: MNO, Inc. is a manufacturing firm. MNO's end-of-year inventory is 54,000,000 and its cost of goods sold is
$2,300,000. For the previous year, MNO's end-of-year inventory was $5,000,000 and the cost of goods sold was $3,000,000. What is this year's inventory turnover?

Question23: How long after the delivery date must a freight claim on a motor carriage shipment be presented and filed with the carrier in the United States'

Question24: UVX, Inc. is seeking suppliers of components to be used in a new heavy equipment product UVX is introducing in the marketplace. The firm conducts a market intelligence analysis and spend analysis to determine feasibility. These findings are reported to the company stakeholders, who decide to produce 25 units every two weeks. UVX issues a solicitation for bids and includes the stakeholders' requirements with the specifications.
At the close of the bidding process, UVX receives one offer that can deliver enough components to produce 15 units every four weeks. The remaining potential bidders decline altogether, citing an inability to meet UVX's specifications.
Which of the following should UVX have done in order to ensure a better response to the solicitation?

Question25: Material accumulated for a well-defined future need is called

Question26: A supply manager for JKL, Inc. is negotiating a contract with a supplier of a component. The component will be used in a new product JKL Is manufacturing and plans to bring to market early next year. Which of the following will be the MOST important provision for the supply manager to negotiate for?

Question27: Which of the following forecasting methods is regarded as participatory7

Question28: Which of the following will be MOST useful for measuring service quality?

Question29: A cell phone retailer experiences excess inventory of a particular model due to errors in demand forecasting.
In addition, remorse returns of this model are greater than anticipated. Which of the following is the BEST course of action the company can take to recover value from these assets?

Question30: A company saves packaging from incoming shipments and utilizes the cartons to sort parts and pad outgoing pallets. This can BEST be described as

Question31: A manufacturer purchased a piece of production equipment over 20 years ago. The equipment is still in use, though for the last few quarters, it has been getting more difficult to keep it operational, as many of the required components are turning obsolete. According to the service agreement, the supplier must ensure the availability of the component parts for 3 more years. In this situation, the buying firm should expect that the supplier will

Question32: A company's average inventory value has remained relatively constant, while its cost of goods sold has increased. Which of the following will also likely show an increase for this firm?

Question33: A supplier with a previously good performance record has recently been shipping parts with a number of flaws, making them unusable for production. The firm's supply manager would like to resolve these problems before taking more drastic measures. Which of the following actions should the supply manager take FIRST'

Question34: A supply manager wishes to implement an enterprise resource planning (ERP) system. During which phase of the system development process should the supply manager communicate with end users to review their business environments?

Question35: A supply manager is analyzing potential costs associated with the raw materials needed for a new product launch. Tooling costs are known, but the range of forecasts for future sales-and therefore demand for materials-varies widely. Given these circumstances, the supply manager should consider using which of the following?

Question36: Which of the following refers to an operations management philosophy whose objective is to reduce waste and cycle time?

Question37: Which of the following is the PRIMARY benefit of project governance?

Question38: A manufacturer of gas-powered motors realigns its supply chain to fit a new business segment. In the past, the firm focused on customized designs. Now, it wishes to compete in the electric motor market, which is highly competitive and price-sensitive. Given this situation, which of the following will ensure that the firm has the proper planning in place?

Question39: XYZ, Inc. notices that one of its suppliers has been failing to achieve on-time delivery, even though XYZ sends it a 6-month projected order forecast every month. The supplier claims that it takes nine months to receive important raw materials, and that this causes the poor delivery performance. Nevertheless, XYZ must continue purchasing from this supplier, as it is a sole supplier. Given this situation, which of following is the BEST course of action for XYZ to take?

Question40: A company introduces a new product line. Although the line is selling well, profit margins are barely at the break-even point. In this situation, which of the following is MOST likely to improve profit margins'

Question41: Which of the following is calculated by taking the selling price of the buyer's end product and subtracting the required profit?

Question42: XYZ, Inc. is a company based in the United States. XYZ purchases a large quantity of raw materials from a supplier in the Dominican Republic. The supplier packages the materials and delivers them to the shipping company designated by XYZ and loads them onto the ship. The contract specifies Free Carrier At (FCA) Caucedo, Dominican Republic. While the ship is still in port, a hurricane damages the ship and ruins its cargo.
Under Incoterms 2020 rules, who owns the shipment at this point?

Question43: In preparation for a new product launch, a company reviews the production capabilities of several regional plants in comparison with anticipated demand. Plant A is expected to have the highest demand, but consistent supply of parts is less reliable there than in other locations. The firm locates a supplier near the plant, which, although qualified, currently does not have enough space to store the large volume of finished parts Plant A will need for production. However, this supplier plans to expand.
To support plant operations during new product ramp-up, which of the following is MOST likely to be effective?

Question44: A supplier of aircraft seating receives a forecast from a major aircraft manufacturer. The forecast information is considered confidential, and thus the supplier must sign a Non-Disclosure Agreement (NDA). Given this situation, which of the following is MOST likely to be protected by the NDA?

Question45: A company that manufactures rubber balls wishes to discontinue production and move into the golf ball industry. Consider the following steps in the disposition of the current inventory of rubber balls:
I. Dispose of the rubber balls per local regulations
II. Sell the rubber balls on the open market
III. Grind up the rubber balls and donate the material for a playground in the community IV. Work with engineering to determine if the rubber can be used in the new golf ball line In order to maximize recovery of its investment, which of the following is the BEST order for the application of these steps (from first to last)?

Question46: A supply manager is reviewing safety stock for a particular unit. The unit is small, Inexpensive, non-perishable, and easily stored, but is critical to the firm's manufacturing process. The following information is known about this unit:
Maximum lead time = 8 Days
Average lead time = 3 Days
Maximum daily usage = 6,000 Units
Average daily usage = 4,000 Units
What is the maximum safety stock that should be maintained for this unit?

Question47: In an effort to cut expenses, GHI, Inc. moves responsibility for logistics to the supply management department. Some officers in the firm are skeptical that this move will be beneficial, since most shipping providers use published rates, and there will be little room for cost improvement. Which of the following will be the BEST way for GHTs supply manager to demonstrate that supply management skills can obtain better value in shipping?

Question48: A supply manager is tasked with creating a business continuity plan in the event of natural disasters. The firm is most concerned with understanding the impacts and consequences of events. Which of the following steps of a business continuity plan should be the PRIMARY focus of the supply manager?

Question49: A firm engaging in low-cost country sourcing wants to assume the least amount of risk when importing goods into its own country. Which of the following Incoterms 2020 rules would be MOST useful in achieving this goal7

Question50: XYZ, Inc. is implementing a new automated system in its distribution center. The supply manager is developing measures to evaluate the success of the automated system pilot. Which of the following is the BEST metric to measure overall success of the pilot7

Question51: A firm needs to provide raw materials to accommodate a recent increase in manufacturing production. The supply manager uses the material forecast from the material requirements planning (MRP) software and the storage capacity from the warehouse management system (WMS) to forecast the firm's requirements. Which of the following will impact this forecast MOST significantly?

Question52: A company requires a physical tracking system for goods received and handled in its warehouse. The firm's executive management requests a report to justify funding for the tracking system. Which of the following is the PRIMARY point the report should address?

Question53: A manufacturer receives notice from one of its largest customers stating that, from this point on, it will only accept environmentally friendly boxes for packaging. The manufacturer checks the remaining packaging in its inventory and finds that it still has over six months' worth of boxes that are not made of environmentally-friendly materials. These boxes are custom-designed and cannot be returned to the packaging material supplier. In this situation, the manufacturer would be BEST served by doing which of the following?

Question54: When identifying complex market conditions affecting product or service demand factors, which of the following methods is typically MOST useful?

Question55: A company develops long range material forecasts, analyzes industry trends, determines commodities for value analysis, and assesses supplier capabilities to assure continual economic supply of goods and services.
This company is engaged in

Question56: Which of the following is MOST likely to be an advantage of a standardization program?

Question57: Which of the following refers to an agreement between a buyer and supplier in which vendor-owned inventory is stored on the buyer's floor until it is used in production?

Question58: Which of the following is the MOST important reason for establishing and maintaining a supplier quality certification program?

Question59: A manufacturer of gardening products has many international suppliers. Because of extended lead-times and logistical concerns, it is critical that the company provides accurate seasonal demand planning data to its suppliers. Given this situation, which of the following types of feedback from the supplier would be MOST critical to the manufacturer?

Question60: Which of the following circumstances MOST warrants expediting?

Question61: A firm wants to contract with two suppliers to develop a cellphone tower servicing five million customers. The new technology is required within the next 36 months and has a large budget. The following suppliers are under consideration:
*Supplier A - Has been in business for 20 years; however, every two to three years, its labor force goes on strike
*Supplier B - An established business located in an overseas country which may charge an additional 2% duty on some imported goods
*Supplier C - An established business which has been closed on recent occasions by governing authorities due to health and safety violations
*Supplier D - Has the smallest facilities and workforce of the four, but will be expanding over the next three months and has successfully subcontracted work in order to meet timelines Based on this information, which two suppliers offer the BEST capacity and capability?

Question62: Which of the following are the quickest ways to ship food products in order to ensure they do not spoil?

Question63: BCD, Inc. owns five warehouses in various locations around the country. Three of these warehouses are performing poorly. BCD asks supply management to review options for improving this situation. Which of following is the BEST course of action for supply management to take?

Question64: A project charter addresses which of the following areas?

Question65: Through cycle counting, a supply manager learns that inventory inaccuracies are being caused by errors made when received goods are entered into the company's enterprise business system. Which of the following is the FIRST course of action the supply manager should take to reduce these inaccuracies?

Question66: A manufacturer has facilities around the world and purchases steel from various global markets. The firm uses decentralized purchasing, with a procurement team in each of its various markets. Management would like to see a corporate approach to steel procurement. Which of the following should the firm's supply manager recommend?

Question67: A graph of a firm's inventory replenishment system reveals the following:

Which of the following is TRUE'

Question68: According to Six Sigma methodology, what percentage of parts should be free from manufacturing defects?

Question69: Which of the following buying strategies refers to planning inbound material purchases and flows without the need for significant inventory levels7