- (Topic 3)
A manufacturer experiences frequent changes in product technology and market preferences, resulting in new product introductions each year. Which of the following sourcing strategies would be most appropriate?

1. A. Sole sourcing
2. B. Multiple sourcing
3. C. Long-term contracting
4. D. Strategic partnering

Correct Answer: D

- (Topic 3)
When evaluating several possible supply chain options, a firm considering the minimal total cost should:

1. A. ensure that the inventory levels are as low as possible to minimize holding costs while still providing adequate customer service.
2. B. account for the combined costs of holding buffer inventory and incurring inventory shortages.
3. C. consider the costs of acquiring, holding, and transporting inventory, and of servicing customers.
4. D. place buffer inventory in the lowest cost locations that meet lead time and service level requirements from customers.

Correct Answer: C

- (Topic 1)
A manufacturer uses standard costing, and a potential supplier uses activity-based costing. This difference most likely will have implications for which of the following types of future decisions?

1. A. Price concessions
2. B. Make-or-buy
3. C. Distribution warehouse locations
4. D. Freight terms

Correct Answer: B

- (Topic 2)
When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements?

1. A. Loyalty
2. B. Scoring
3. C. Segmentation
4. D. Prospecting

Correct Answer: C

- (Topic 3)
During the sales and operations planning (S&OP) horizon, planned inventory can best be used to:

1. A. implement a time-phased stock replenishment plan.
2. B. allow for consistent production lot sizing.
3. C. buffer the company against unknown fluctuations in demand.
4. D. minimize storage and transportation costs.

Correct Answer: C