- (Topic 3)
In determining warehouse velocity, the average inventory level is calculated by dividing the
annual sales through the warehouse by the:

1. A. total square footage of the warehouse.
2. B. inventory turnover rates for the warehouse.
3. C. annual weight through the warehouse.
4. D. annual cube through the warehouse.

Correct Answer: B

- (Topic 3)
Which of the following benefits should a supplier expect to receive by becoming a certified supplier?

1. A. Reduction in redundant processes with buyer
2. B. Increase in price of items sold
3. C. Increase in access to competitive information
4. D. Reduction in number of items utilizing vendor-managed inventory

Correct Answer: A

- (Topic 1)
When designing a supply chain for strategic advantage, a company first should consider:

1. A. the impact on customers using Just-in-Time manufacturing.
2. B. the financial stability of suppliers.
3. C. matching the supply chain to product type.
4. D. whether to use custom or standard parts.

Correct Answer: C

- (Topic 2)
When an importer and manufacturer are operating in a free trade zone, payment of a customs duty is triggered when products are:

1. A. returned.
2. B. assembled.
3. C. stored.
4. D. distributed.

Correct Answer: D

- (Topic 1)
Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

1. A. Production equipment productivity
2. B. Net asset turnover
3. C. Value-added productivity per employee
4. D. Upside flexibility

Correct Answer: B