CLTD

CLTD practice questions, page 12 of 14, with answer review and explanations.

Question 56

A company has prioritized A, B, and C, filling orders in that sequence. What are the impact to customer service levels for customers B and C?

  1. 100% service levels for B and C
  2. Customer B has higher service level
  3. Customer C has higher service level
  4. Customer B and C have the same service level

Question 57

Which of the following modes of transportation is characterized as having the highest fixed cost and lowest variable cost?

  1. Air
  2. Water
  3. Rail
  4. Pipeline

Question 58

Procurement professional are focused on the total cost of ownership (TCO) in their vendor selection strategies. This implies that:

  1. procurement is now increasingly charged with pushing back inventory to vendors.
  2. there is increased consideration of trade-offs among purchase price, quality, and vendor capability.
  3. procurement is decreasing its emphasis on the importance of vendor certification and audit programs.
  4. there is increased emphasis on procuring at the lowest purchase price possible.

Question 59

Higher throughput operations enable private warehouses to:

  1. spread out variable costs over large output volumes
  2. spread out fixed costs over large output volumes.
  3. allocate total unit costs on the basis of traffic volume.
  4. accomplish better facility utilization with declining overheads.

Question 60

Which of the following activities best describes the functionality of decoupling stock within firms' inventory systems?

  1. Separation of the manufacturing process from order processing
  2. Separation of the manufacturing process from the selling process.
  3. Maintaining inventory to accommodate uncertainty in demand at different geographical positions.
  4. Maintaining inventory at a central location for all stages of the value-creation process.