- (Topic 3)
A company uses cash-to-cash cycle time to assess how long it takes from:

1. A. receiving inventory from the supplier to paying the invoice from the supplier.
2. B. receiving inventory from the supplier to invoicing the customer.
3. C. paying the supplier for inventory received to receiving payment from the customer.
4. D. invoicing a customer to receiving payment from the customer.

Correct Answer: C

- (Topic 1)
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:

1. A. fourth party logistics providers.
2. B. third party logistics providers.
3. C. retail services providers.
4. D. distribution services providers.

Correct Answer: B

- (Topic 2)
What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?

1. A. Reduced need for bar codes and radio frequency identification technology
2. B. Reduced material handling costs
3. C. Ease of control and count accuracy
4. D. Maintain a cleaner shop floor

Correct Answer: C

- (Topic 3)
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?

1. A. Advise the ERP information technology manager that there is a flaw in the rating system.
2. B. Scrap the vendor rating system until the company can figure out what is wrong.
3. C. Compare the vendor and company detail records, and interview company employees who handled the data.
4. D. Tell the supplier that, regardless of the disputed claims, the supplier must improve performance.

Correct Answer: C

- (Topic 2)
Which of the following activities typically would be an appropriate application of the ISO 31000 Risk Management Principles and Guidelines?

1. A. Calculating a risk index for each facility
2. B. Establishing external risk communications processes
3. C. Projecting the ability of a facility to recover from an event
4. D. Preparing for risk management accreditation

Correct Answer: B