1. A company finds that one of its warehouses is out of capacity to store products. Expanding the physical size of the warehouse is not an option. The most appropriate solution would be to increase the:

A) cash-to-cash cycle of slow-moving items
B) inventory turn of slow-moving items
C) use of break-bulk warehousing
D) inventory days of supply of fast-moving items



2. A company embarking on the establishment of strategic partnerships and ready to relinquish control over inventory management would choose which of the following customer-supplier interactions?

A) Continuous replenishment
B) Collaborative planning, forecasting, and replenishment (CPFR)
C) Quick response
D) Vendor-managed inventory (VMI)



3. Which of the following procurement strategies would be most appropriate for items required by a bottleneck operation?

A) Long-term contracts
B) Global sourcing
C) Automated ordering processes
D) Decentralized policy



4. Which of the following financial measurements is common to reverse logistics?

A) Scrap as a percentage of total cost
B) Warranty reserves
C) Quality appraisal cost
D) Accounts receivable



5. A company has prioritized customers A, B, and C, filling orders in that sequence. What are the impacts to customer service levels for customers B and C?

A) 100% service levels for B and C
B) Customer B has higher service level
C) Customer C has higher service level
D) Customer B and C have same service level