1. Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

A) Inventory turnover ratio can be reduced.
B) Aggregate demand is more accurate than disaggregate demand.
C) The planning time fence can be adjusted as needed.
D) The supplier shares some risk for holding inventory.



2. The purpose of continuous improvement in the supply chain is to:

A) eliminate the root causes of problems.
B) improve interorganizational communication.
C) develop better written procedures.
D) reduce product costs.



3. After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?

A) Implement a higher-speed data communications network.
B) Change procedures so data is communicated more frequently.
C) Identify the root causes for the delays.
D) Map and analyze the value stream.



4. Which of the following situations is an example of postponement?

A) Shipments are broken down into small groups for reshipment.
B) Shipments are consolidated immediately for reshipment.
C) Production begins after a customer order is received.
D) Partially assembled goods are assembled at a later stage.



5. Which of the following factors typically is the most significant impediment to implementing collaborative commerce?

A) Technology barriers
B) Security
C) Corporate culture
D) Return on investment (ROI)