1. Transforming company policies into objectives and specific goals creates a:

A) performance standard.
B) organizational benchmark.
C) supply chain metric.
D) balanced scorecard.



2. A well-grounded program in which a company focuses on customer success involves:

A) a thorough understanding of individual customers×?â?¬â?¢ requirements.
B) a commitment to focus on short-term business relationships.
C) a focus on relationships having high profitability and low potential for growth.
D) making similar commitments to customers in order to maintain lasting relationships.



3. A company faces highly unpredictable demand for an end item. Which of the following production methods would work best for meeting customer demand within a reasonable lead time?

A) Engineer-to-order (ETO)
B) Make-to-order (MTO)
C) Assemble-to-order (ATO)
D) Make-to-stock (MTS)



4. One of the key benefits of adopting a lean supply chain philosophy is the reduction of inventories that allow:

A) decreased obsolescence.
B) freeing up working capital for investment.
C) reduced material handling surcharges.
D) lower transaction costs.



5. Which of the following measures of a supply chain performance is most desirable from a stockholder perspective?

A) Diversity of sales channels
B) Lean manufacturing performance
C) Time to market of new products
D) Velocity and return on assets (ROA)