1. A company would like to benchmark its inventory levels against other companies. Which of the following metrics is best to use for this purpose?

A) Fill rate
B) Days of supply
C) Net asset turns
D) Cash-to-cash cycle time



2. Sustainable business practices are those capable of meeting the:

A) environmental protection requirements of today.
B) requirements of producing products with minimum resources.
C) environmental protection requirements of the future.
D) needs of the present while considering the needs of the future.



3. Which of the following elements typically is considered to be an output of demand planning?

A) Transportation routes and schedules
B) Detailed production schedules
C) Product family and item forecasts
D) Customer historic tracking report



4. A pattern of increased shipments from manufacturing plants to a central warehouse at month-end and quarter-end typically would cause which of the following situations in a central warehouse?

A) Fluctuation in required labor resources
B) Decreased use of storage capacity
C) Decreased transportation costs
D) Increased outbound shipments



5. The use of standardized components typically results in:

A) increased planning and control efforts to avoid shortages.
B) fewer inventory items and inventory levels.
C) more items, larger bills of material (BOMS), and increased material requirements planning (MRP) run time.
D) smaller bills of materials, fewer routings, and fewer manufacturing orders.