- (Topic 3)
A manufacturing company with limited competence in logistics plans to expand into an international market. The most appropriate initial action the company should take is to:

1. A. buy a distribution company.
2. B. build a distribution network.
3. C. engage a third-party logistics company.
4. D. gain logistics experience.

Correct Answer: C

- (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 3)
Which of the following tools is most important in developing strategic sourcing?

1. A. Price break analysis
2. B. Network analysis
3. C. Blanket purchase order
4. D. Spend analysis

Correct Answer: D

- (Topic 3)
Which of the following fill rates is the most rigorous measure of a firm's availability performance?

1. A. Line
2. B. Item
3. C. Order
4. D. Value

Correct Answer: C

- (Topic 2)
The most important challenge to consider when sourcing globally is:

1. A. the identification of sources capable of producing the materials.
2. B. the availability of low-cost labor and energy.
3. C. complying with specific import/export issues.
4. D. balancing the difference between piece price and total cost.

Correct Answer: D