- (Topic 3)
A firm decides to reduce the number of distribution centers it uses. Which of the following outcomes is the most likely result of this change?

1. A. Order-fill rate will increase.
2. B. Total safety stock will increase.
3. C. Delivery lead time will decrease.
4. D. Outbound transportation cost will decrease.

Correct Answer: A

- (Topic 3)
Which of the following techniques allows users to automate the notification of appropriate parties when exceptions to specific business rules occur?

1. A. Enterprise resources planning
2. B. Supply chain event management
3. C. Advanced planning and scheduling
4. D. Automatic identification and data capture

Correct Answer: B

- (Topic 3)
A company that is having difficulties prioritizing resources against a long list of improvement projects should use which of the following processes?

1. A. Control chart
2. B. Competitive benchmarking
3. C. Pareto analysis
4. D. Six Sigma

Correct Answer: C

- (Topic 3)
The theory of constraints (TOC) works best in an environment where the:

1. A. product mix for the operation changes daily.
2. B. constraint cannot be easily managed.
3. C. constraint cannot be easily identified.
4. D. constraint persists long enough to be managed effectively.

Correct Answer: D

- (Topic 2)
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:

1. A. increase.
2. B. decrease.
3. C. not change.
4. D. become less predictable.

Correct Answer: A