1. In order to achieve economies of scale, a manufacturer is interested in producing large quantities. Which of the following functions of inventory will assist the manufacturer in achieving this goal?

A) Geographical specialization
B) Decoupling
C) Balancing supply and demand
D) Buffering uncertainty



2. A lean supply chain transformation initiative requires:

A) external resources
B) top management commitment
C) social responsibility
D) positive return on investment (ROI)



3. Interpersonal communication skills and negotiation with suppliers is important because it:

A) enables the buying organization to partner with suppliers
B) drives higher price breaks and lot size discounts
C) allows the most competitive suppliers to remain viable
D) is essential to achieve cost-cutting targets



4. Which of the following characteristics typically is required for a collaborative strategic relationship?

A) High levels of trust
B) History of successful collaboration
C) Awareness of cultural differences
D) Formal contracts defining the relationship



5. Which of the following measures would be an appropriate indicator of the marketing and sales organization's support of the sales and operations planning (S&OP) process?

A) Finished goods inventory as a percent of planned inventory
B) Percent of product introductions completed on schedule
C) Total revenue as a percent of planned revenue
D) New customers as a percent of total customers