Certified Supply Chain Manager | International Lean Six Sigma Institute

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1. In determining warehouse velocity, the average inventory level is calculated by dividing the annual sales through the warehouse by the:*

total square footage of the warehouse.

annual cube through the warehouse.

inventory turnover rates for the warehouse.

annual weight through the warehouse.

2. An operations manager wants to measure variability in the delivery time of insurance policies to clients. Which of the following quality tools most appropriately would show the level of variability?*

Check sheet

Histogram

Scatterplot

Pareto chart

3. Which of the following actions best exemplifies an appropriate demand management strategy?*

Prioritizing demand when supply is constrained

Maximizing sales orders from customers

Updating the sales and operations planning (S&OP) to changes in production capacity

Reducing costs in the procurement of goods

4. A company produces to stock and sells its products to distributors. The factor that most likely will contribute to the risk of loss in inventory investment is the:*

replenishment lead time.

accuracy of demand forecasts.

level of product quality.

variability in supply.

5. Which of the following activities typically is included in a warehouse management system?*

Freight-bill auditing

Vehicle routing

Order processing

Invoicing

6. A supplier has decided to improve its forecast accuracy by reducing the information lead time from the retailer. Which of the following actions would be most appropriate to achieve the desired result?*

Reducing its quoted lead time

Eliminating sales and promotions

Utilizing electronic data interchange

Decentralizing demand information

7. Which of the following characteristics typically is a feature of supplier relationship management?*

Inventory is verified before the supplier ships the goods.

Supplier employees are located at the firm's facilities.

Performance of both firms is measured and reported regularly.

The supplier is the sole source for the goods.

8. Which of the following activities is critical to successful synchronization of supply and demand throughout a supply chain?*

Maintaining increased inventories

Reducing the number of deliveries

Placing large orders to obtain lower prices

Sharing demand information

9. Organizations that change from a traditional purchasing perspective to a supply chain perspective most likely will adopt techniques related to:*

centralized decision making.

sourcing multiple suppliers.

value stream analysis.

product pricing.

10. Which of the following benefits should a supplier expect to receive by becoming a certified supplier?*

Reduction in number of items utilizing vendor-managed inventory

Increase in access to competitive information

Reduction in redundant processes with buyer

Increase in price of items sold

11. Which of the following factors is most important to consider when deciding on offshore outsourcing of manufacturing to a supplier?*

Supplier performance history

Total cost of ownership

Supplier certification

Size of the supplier organization

12. Value stream mapping is a useful tool primarily because it:*

is used to improve efficiency in a specific area.

is completed in 1 or 2 days.

looks at the entire supply chain rather than an isolated process.

redefines supply chain relationships.

13. Which of the following activities is the most appropriate use of an advanced planning and scheduling system?*

Selecting the target market for a product

Creating a daily demand forecast

Identifying constraints within a facility

Optimizing transportation routes

14. Which of the following outcomes is most likely a result of allocating excess capacity to a supply chain facility?*

Higher utilization which leads to higher cost

Higher utilization which leads to lower cost

Lower utilization which leads to higher cost

Lower utilization which leads to lower cost

15. Which of the following outcomes most likely is the primary reason for outsourcing production of a new product?*

Reduce required capital investment

Increase flexibility of the supply chain

Increase control of the supply chain

Reduce the need for skilled workers

16. The primary risk that must be considered when lean practices are applied to a supply chain network is:*

decreased operations flexibility.

decreased inventory availability.

increased customer returns.

increased total ordering costs.

17. Standardization of supply chain processes is most likely to facilitate achievement of which of the following activities?*

Creating project consensus

Tracking the effects of improvement initiatives

Understanding of operational metrics

Reducing the total cost of ownership

18. The make-to-stock model is an effective inventory strategy when the product:*

is designed by the customer.

has a long manufacturing lead time.

has a limited set of features.

is frequently out of stock.

19. Which of the following tools is most appropriate to use to determine projects that will achieve the greatest net benefits?*

Fishbone diagram

Operation process chart

Process flow diagram

Pareto diagram

20. When trying to decide whether to outsource its customer relationship management function, a company primarily should consider which of the following factors?*

Transaction costs

Location of the service provider

Internal controls of the company

Compatibility of computer hardware

21. Which of the following strategies typically will require the lowest inventory investment and deliver the shortest lead time?*

Producing finished goods to forecast and distributing through a multi-echelon network

Producing subassemblies to forecast and doing final assembly and shipping from the factory

Producing subassemblies to forecast and doing final assembly and shipping from regional centers

Producing finished goods to forecast and shipping directly to customers

22. A manufacturer of fast-moving consumer goods wants to implement a process improvement method to increase flexibility and decrease the risk of obsolete inventory. Which of the following approaches is most likely to help reach these goals?*

Total quality management

Advanced planning and scheduling

Six sigma

Lean manufacturing

23. A large, global third party logistics provider (3PL) is contemplating the switch to the use of ethanolbased fuel in its truck fleet and wants to identify the impact of this change on food prices. Which of the following attributes of the triple bottom line (TBL) are part of this trade off decision?*

Social, financial and environmental

Social, environmental and organizational

Organizational, financial and social

Organizational, financial and environmental

24. Which of the following tools is most important in developing strategic sourcing?*

Price break analysis

Network analysis

Blanket purchase order

Spend analysis

25. The relative speed at which all transactions within the supply chain process occur is known as:*

the cycle time.

latency.

velocity.

throughput.

26. A primary reason for enhancing supply chain security is to:*

meet government requirements.

reduce insurance costs.

improve lead time.

protect brand image.

27. A company that locates manufacturing facilities in different countries so that an economic downturn in one country most likely will be offset by business in another country is employing what type of strategy?*

Speculative

Forecast

Hedge

Flexible

28. The theory of constraints (TOC) is a suitable tool to use in which of the following scenarios ? :*

we have identified too many intermediaries in the supply chain

we suspect we have too much variation in product quality

there are too many defects reported by customers

there is poor flow and insufficient throughput of goods in the supply chain

29. An organization is partnering with a supplier. The most appropriate tool to ensure that the supplier has the necessary capabilities is:*

a supplier-input-process-output-customer diagram.

supplier performance evaluation.

supplier relationship management.

supplier certification.

30. What is the appropriate supply chain strategy for a product with low demand uncertainty and high economies of scale?*

Push

Postponement

Push-pull

Pull

31. Which of the following tradeoffs should be considered when selecting logistics options?*

Inventory levels and scheduling operations

Transportation cost and speed of delivery

Centralized and decentralized distribution network

Safety stock levels and customer service levels

32. Variability in product design can best be reduced by:*

broadening design specifications.

outsourcing the design process.

applying Six Sigma principles.

initiating 100% product inspection.

33. Which of the following supplier performance factors typically is most critical for organizations that outsource production?*

Reliability

Malfunction recovery

Speed

Flexibility

34. A company recently implemented a new supplier rating system. Data was collected from the enterprise resources planning system about each vendor's rating for cost, quality, and delivery over 12 months. A cutoff point was established for poor performers. The responsible purchasing agent then scheduled meetings with each supplier. Which of the following actions is most appropriate to take with suppliers whose ratings were below the cutoff point?*

Immediately cancel outstanding contracts with those suppliers.

Tell the suppliers they are on probation for 3 months.

Ask the suppliers to explain the poor performance.

Discuss ways to raise the ratings for the next review period.

35. The most appropriate frequency for the sales and operations planning process typically is:*

weekly.

quarterly.

monthly.

annually.

36. Incorporating information technology into its supply chain allows a company to efficiently:*

manage order entry, scheduling, warehousing, and order tracking.

collect, store, encode, process, analyze, transmit, receive, and print data.

upgrade enterprise resources planning revisions in a timely and secure manner.

incorporate elements of Six Sigma into supplier relationships.

37. A company has limited visibility of global customer sales. Which of the following methods is the most appropriate way to sense and respond to customer demand?*

Point of sale

Sales and operations planning

Demand-driven supply network

Customer relationship management

38. Which of the following constituents typically must provide information first to effectively improve supply chain design?*

Customer

Manufacturing

Distribution system

Supplier

39. A firm experiences a supply chain interruption from a second-tier supplier. Which of the following actions is the firm likely to take to minimize future interruptions?*

Conduct an ISO 14001 audit of the supplier.

Map the supplier's supply chain to identify risks and opportunities.

Require the supplier to submit weekly cycle count reports.

Require the supplier to implement a sales and operations planning process.

40. Which of the following outcomes is an advantage of automating the request-for-quote process?*

Enabling contract management

Centralization of product service content

Disposing of excess inventories

Reducing cycle time

41. Which of the following factors should be considered when establishing an inventory policy?*

Selling price history

Number of customers

Historical service levels

Customer demand

42. Number of customers*

Weight and volume of packaging materials used

Hours of employee education about environmental stewardship

Total number of people making a living wage

Amount of funds invested in infrastructure improvements

43. Which of the following circumstances best describes a roadblock to implementing customer relationship management and supplier relationship management?*

Concern about conflicts of interest with partners in the supply chain

Lack of defined industry standards

Increased access to information for supply chain partners

Deterioration of customer service levels

44. A common benefit of including an automatic identification system (AIS) at the point of sale (POS) in retail stores is improved:*

information integrity of freight bills.

sales revenue tracking.

unit inventory precision.

shipment traceability.

45. A supply chain visibility application helps an organization by:*

providing flexibility in customer delivery locations.

planning raw material requirements.

providing comprehensive information from any point of contact.

removing outliers from independent demand forecasts.

46. Which of the following metrics would be most appropriate for a group of trading partners that is trying to gain competitive advantage through supply chain reliability?*

Value-added productivity per employee

Order-fill rate performance

Supply chain response time

Cash-to-cash cycle time

47. Which of the following fill rates is the most rigorous measure of a firm's availability performance?*

Order

Value

Item

Line

48. A manufacturer of consumer goods has purchased one of its distributors. The distributor's inventory system is archaic and will not integrate into the manufacturer's enterprise resources planning (ERP) system. Which of the following approaches is the most appropriate long-term solution for the manufacturer?*

Buy a warehouse management system that integrates into the ERP system.

Hire a software contractor to write an interface with batch update to the ERP system.

Run the existing warehouse inventory system and update the ERP system manually.

Buy a complete ERP system that includes seamlessly integrated distribution.

49. Which of the following methodologies is most appropriate to use to drive continuous improvement?*

Define-measure-analyze-improve-control process

Poka-yoke

Kanban

Pareto analysis

50. Which of the following factors are fundamental to transportation performance?*

Cost, speed, delivery consistency

Full truck loads, maintenance, discounts

Contract performance, order tracking, flexibility

Quality, Just-in-Time, invoicing

51. Which of the following issues recently has caused companies to rethink implementation or continued use of a Just-in-Time system?*

Higher transportation costs

The reduced number of potential suppliers

The elimination of billing documents

The upward trend in inventory carrying costs

52. A supplier disputes a low rating generated by a company's enterprise resources planning (ERP) system. Which of the following actions by the purchasing agent is most appropriate?*

Scrap the vendor rating system until the company can figure out what is wrong

Compare the vendor and company detail records, and interview company employees who handled the data.

Advise the ERP information technology manager that there is a flaw in the rating system.

Tell the supplier that, regardless of the disputed claims, the supplier must improve performance.

53. Measurement of service to the customer should consider which of the following strategic priorities?*

Forecast accuracy

Order cycle time

Responsiveness

Cash flow

54. The practice of purchasing items in large quantities and requesting that shipments be delivered directly to customers is referred to as:*

freight equalization.

breaking bulk.

drop shipping.

cross-docking.

55. Prioritizing customer needs is best accomplished by:*

sharing information with key customers.

establishing policies and procedures for honoring customer requests.

installing a new enterprise resources planning system.

responding to customer requests in the order they are received.

56. Some firms that have licensed other companies to manufacture their products run the risk of:*

the products being overpriced.

the products becoming a commodity.

the other companies becoming competitors.

losing market share.

57. A service company has decided to create a customer-focused business and has identified the following steps in the process: 1. Analyze information to reach the root cause 2. Measure Existing performance 3. Monitor the process until solution becomes ingrained 4. Define/Determine the nature of problem 5. Improve the process Which of the following sequences of steps is correct for implementing the company's decision?*

4,2,5,1,3

4,2,1,5,3

3,5,2,4,1

2,1,4,3,5

58. A manufacturer experiences frequent changes in product technology and market preferences, resulting in new product introductions each year. Which of the following sourcing strategies would be most appropriate?*

Sole sourcing

Strategic partnering

Multiple sourcing

Long-term contracting

59. A manufacturer is the sole supplier of a product family. It sells to regional distributors that sell to retailers. The manufacturer uses batch production processes that have long setup times. All nodes in the supply chain have agreed to pursue a quick response to changes in the level of demand as a competitive priority. Which of the following factors is most likely to hinder their pursuit of this competitive priority?*

Manufacturing lot sizes

Information sharing practices

Information technology standards

Contractual terms and conditions

60. Which of the following situations is a consequence of global operations?*

Increased logistic complexity

Longer lead times

Decreased logistic cost

Reduced product variety

61. The lowest-cost supply network design requires balancing inventory costs and which of the following types of costs?*

Sales and marketing

Transportation

Administrative

Manufacturing

62. A firm expands distribution of its products into additional countries. Some customers initiate order batching, which could lead to which of the following outcomes?*

Rationing

Bullwhip effect

Price fluctuations

Better forecasting

63. Companies interested in developing programs to pinpoint customer loyalty rely on customer relationship management tools that produce which of the following outputs?*

Forecast, process, and information sharing

Event and service management

Churn analysis and prediction

Transaction management

64. Which of the following objectives is the primary driver in the design and implementation of lean process management?*

Integrating processes between departments

Decreasing the cash-to-cash cycle

Reducing the level of inventory

Satisfying customer requirements

65. Which of the following techniques allows users to automate the notification of appropriate parties when exceptions to specific business rules occur?*

Enterprise resources planning

Automatic identification and data capture

Advanced planning and scheduling

Supply chain event management

66. The use of kanban for item replenishment by external suppliers requires:*

a process for the reverse supply chain.

returnable plastic containers.

accurate long-term forecasts.

close communication about component usage.

67. Which of the following actions by a group of trading partners is most likely to improve the flow of funds among them?*

Negotiating a single set of terms for the trading partners

Increasing the level of information sharing and collaboration

Implementing links among their information systems

Reducing the time allowed for the timely payment discount

68. The primary reason to establish a customer-dedicated warehouse is to:*

integrate and consolidate an assortment of inventory.

equalize inbound and outbound logistics costs.

position inventory to improve response time.

balance inventory with consumption.

69. Which of the following changes often leads to higher levels of inventory?*

Increase in warehouse holding costs

Increase in economies of scale

Decrease in customer service level

Decrease in vendor lead times

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

Standardizing and eliminating redundant items

Conducting a supplier review and recertification

Leveraging group purchasing power

Renegotiating contracts with commodity suppliers

71. A typical advantage of a production outsourcing strategy for a company focusing on agility as a competitive priority is that:*

production lead time is increased.

product quality is increased.

product introduction time is decreased.

monitoring costs are decreased.

72. A retailer wants to partner with its suppliers to implement automatic replenishment of inventories and joint sales forecasts. Which of the following supply chain management technologies most likely would support the retailer's strategy?*

Radio frequency identification (RFID) tags

Advanced planning and scheduling

Supplier relationship management applications

Collaborative planning, forecasting, and replenishment

73. Which of the following statements describes a continuous replenishment strategy in a retail environment?*

Vendors use sales data and prepare shipments to maintain the desired level of inventory.

Vendors take full control of inventory policy.

Retailers prepare individual orders and share sales data with vendors to improve customer service.

Retailers make replenishment decisions.

74. Which of the following behaviors is appropriate for a progressive company that is responding to changes in its supply chain? *

Ensuring demand before committing to a change in the supply chain

Developing multiple supply chains for different product lines

Pursuing cost reduction continuously

Designing products for maximum lifetime

75. Marketing affects supply chain management decisions primarily by its involvement in:*

analyzing economic indicators.

pricing, placing, and promoting products.

determining forecast error.

determining product requirements.

76. A company handling sale of product discarded by consumers is what type of provider?*

Reverse logistics

Warehousing

Fourth party logistics (4PL)

Third party logistics (3PL)

77. Turning the request-for-quotes process into a real-time auction setting most likely will:*

increase process costs.

reduce cycle time.

improve product quality.

reduce bid cost.

78. E-business allows a firm to capitalize on the use of systems that:*

permit the use of batch-processed data.

speed the receipt of e-mails between companies.

permit real-time use of supply chain data.

ensure security of proprietary data.

79. A supervisor knows that employees have good ideas for improving department operations but are hesitant to share them. Which of the following tools would be most appropriate for encouraging the employees to participate in identifying opportunities?*

Process map

Pareto chart

Tree diagram

Affinity diagram

80. Which of the following technologies directly enables pulling products through the supply chain?*

Point of sale (POS) system

Supply chain event management (SCEM)

Customer relationship management (CRM)

Automatic identification system (AIS)

81. Which of the following attributes is an example of both supply and operational risk?*

Order quantities

Robust processes

Quality

Product mix

82. The primary focus of lean manufacturing is:*

maximizing the output of constraints.

optimizing production activities.

eliminating activities that do not add value.

reducing inventory levels.

83. The primary contribution from an enterprise resources planning system in building supply chain capability is:*

real-time manufacturing planning.

timely order tracking.

improved decision making.

ease of implementation.

84. Which of the following costs is an example of ordering cost?*

Inspection labor

Cost of capital invested

Obsolescence

Insurance

85. A company uses multiple ingredients to make a product that is sold in multiple countries. Each country requires country-specific labels. A third-party supplier provides the country- specific labels. The most appropriate push-pull interface is:*

customer to finished product.

finished product with labels.

product to labels.

raw materials to product.

86. A manufacturer with operations in an area prone to natural disasters is reviewing its sustainability strategy. Which of the following production strategies should the company implement to reduce the risk of supply interruptions?*

Decentralized

Engineer-to-order

Make-to-order

Centralized

87. Which of the following statements best identifies the value of using a supplier rating system?*

It ensures that all suppliers are using the same quality standards to manufacture products.

It allows customers to post chargebacks to suppliers.

It provides an objective means for a company to determine outstanding suppliers.

It offers a company an effective way to control suppliers' delivery processes.

88. Which of the following characteristics is typical of a highly complex product when compared with a simple commodity product?*

Lower profitability

Lower product cost

Increased ability to change

Longer cycle time

89. A disadvantage of capable-to-promise (CTP) when compared to available-to-promise (ATP) is: *

the loss of potential sales based on earlier allocations.

it requires the purchase of additional equipment.

it does not include inventory levels.

it requires more complex calculations.

90. Qualitative forecasting methods are most appropriate for projecting demand for:*

families of products.

breakthrough products.

raw materials.

commodity products.

91. The profit margin for a product that is currently made in the company's facility has decreased during the past 2 years. Which of the following factors should be considered when deciding whether to make or buy the product?*

Landed cost

Distribution channels

Production capabilities

Transportation capabilities

92. ABC Corporation is implementing a website that connects clothing distributors and retailers with many different garment manufacturers from whom they can buy finished goods. This website would be an example of:*

intranet commerce.

an Internet storefront.

virtual auction site.

a vertical exchange.

93. Effective sales and operation planning (S&OP) is most likely to result in which of the following benefits?*

Lower product cost

Better product quality

Better customer service

Lower work-in-process (WIP) inventory

94. One operation in a four-stage process has been producing more than required and is causing elevated levels of work in process. Which of the following approaches would be most appropriate to address the situation?*

Keiretsu

Kanban

Kaizen

Kano

95. Which of the following steps is first in developing a product differentiation strategy?*

Establish competitive priorities

Study customer needs

Define customer segments

Determine design modifications

96. A large retailer has negotiated buyback contracts with several suppliers. The suppliers typically will need which of the following systems to effectively implement the contracts?*

Monitoring the retailer's revenue

Well-developed reverse logistics

Point-of-sale tracking

Sales incentives to reward the retailer

97. What benefit does Radio Frequency Identification (RFID) technology provide for a high- volume, lowcost manufacturer?*

Reduces store thefts

Eliminates stock out at store level

Eliminates the effects of bullwhip

Reduces number of touch points in pallet handling

98. Which of the following performance indicators can be used to measure the effectiveness of a vendormanaged inventory program?*

Number of inventory receipts

Inventory usage

In-stock rate

Inventory returns

99. A project team has received 30 improvement ideas from subject matter experts in the business. Which of the following continuous improvement tools would be most appropriate to use to sequence implementation timing based on an agreed-upon weighted criteria?*

Prioritization matrix

Affinity diagram

Interrelationship digraph

Matrix diagram

100. A company used Global Reporting Initiative guidelines to complete a self-assessment. Which of the following actions would be the most appropriate next step?*

Identify action items

Obtain top management support

Share information with all stakeholders

Conduct gap analysis

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Dear %NAME%,

Congratulations on passing your ILSSI Accredited Supply Chain Manager Certification.
We have reviewed your exam results.

You scored %SCORE% out of %MSCORE% (%SCOREPERCENT%). It is therefore our great pleasure to inform you that you have successfully qualified for your ILSSI Accredited Supply Chain Manager Certification.

Your Certificate is attached.

You can also verify your certification at https://ilssi.org/ilssi-certification/

ILSSI Certifications Team

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