1. Which of the following actions typically is most important when building a collaborative supply chain?

A) Investing sufficient capital
B) Building mutual trust
C) Integrating information systems
D) Developing a common culture



2. Which of the following manufacturing strategies would run the greatest risk of increasing obsolete inventory costs?

A) Make-to-stock
B) Assemble-to-order
C) Make-to-order
D) Engineer-to-order



3. A firm has determined its cash-to-cash cycle time to be 60 days. The number of days' payables outstanding is 25, and number of days' sales outstanding is 35. If the firm reduces its inventory by 20%, the new cash-to-cash cycle time, in days, will be approximately:

A) 48.
B) 50.
C) 60.
D) 88.



4. A procurement manager wants to reduce costs on commodity items. Which of the following actions is likely to result in the greatest savings?

A) Conducting a supplier review and recertification
B) Renegotiating contracts with commodity suppliers
C) Standardizing and eliminating redundant items
D) Leveraging group purchasing power



5. A company has recently implemented a vendor-managed inventory (VMI) program with several key suppliers but quality issues are disrupting production. Which of the following actions would be more effective in dealing with these issues?

A) Tighten the quality tolerances
B) Implement a supplier certification program
C) Implement quality inspection at the receiving dock
D) Charge back to the supplier the rework and scrap costs