- (Topic 3)
What are the three principle categories of forecasting methods?

1. A. Seasonal, trend, and promotional events
2. B. Moving average, exponential smoothing, and Holt-Winters
3. C. Qualitative, extrinsic, and intrinsic
4. D. Annual, monthly, and daily requirements

Correct Answer: C

- (Topic 3)
An advanced planning system differs primarily from enterprise resources planning by:

1. A. optimizing operations scheduling.
2. B. translating plans into action.
3. C. concentrating on production.
4. D. linking to the transportation management system.

Correct Answer: A

- (Topic 3)
A company has outsourced a high volume of assembly work to top-tier suppliers, thereby reducing the overall number of suppliers they directly manage. Which of the following actions must the company perform to mitigate risk?

1. A. Monitor lead times at sub-tier suppliers
2. B. Maintain direct relationships with sub-tier suppliers
3. C. Execute all terms of contracts at sub-tier suppliers
4. D. Purchase all critical components for assembly at the company

Correct Answer: B

- (Topic 3)
Outsourcing is most appropriate when a product is:

1. A. modular and independent of knowledge and capacity.
2. B. modular and dependent on knowledge and capacity.
3. C. integral and independent of knowledge and capacity.
4. D. integral and dependent on knowledge and capacity.

Correct Answer: A

- (Topic 2)
The globalization of a supply chain typically increases uncertainty and:

1. A. production lead time.
2. B. local competition.
3. C. documentation complexity.
4. D. product standardization.

Correct Answer: C