1. Which of the following statements best describes a fundamental requirement for developing and maintaining good business relationships in an effective supplier partnership?

A) The supplier must commit to meeting the customer×?â?¬â?¢s performance metrics
B) The buyer must commit to improving processes
C) A means of periodic feedback must be in place for issue resolution
D) Both parties must focus on cost reduction to improve competitiveness



2. A company's competitive advantage is product differentiation. The company has multiple new products with unique features targeted to various customer groups.It plans to sell its products via retail channels and online. One of the activities the company should focus on first when determining inventory levels for each product is:

A) identifying and documenting each market segment×?â?¬â?¢s need
B) planning equivalent inventory levels for each product
C) setting price points for each product
D) determining inventory levels at retail outlets



3. What is the inventory turnover for a company with the following financial data?

A) 1.91
B) 4.64
C) 08.03
D) 19.50



4. In order to improve the ability of a multiple plant manufacturer to reduce inventory, a warehouse should:

A) train employees in managing inbound and outbound shipments
B) implement an automated storage/retrieval system (AS/RS)
C) sort and sequence a variety of materials for shipment to the plants
D) implement postponement on high volume goods



5. Goods were damaged during transit on a less-than-truckload (LTL) shipment. The goods were shipped free on board (FOB) destination. Who is responsible to file a freight claim?

A) The carrier
B) The seller
C) The buyer
D) The distribution warehouse