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QUESTION 36

- (Topic 2)
A company that sells engineered-to-order products is planning implementation of a supplier relationship management system (SRM) for direct materials. Which of the following factors is most likely to make the implementation difficult?

  1. A. Complexity of the purchasing process
  2. B. Cost of the application software upgrades
  3. C. Management of variable lead times
  4. D. Resistance of material suppliers

Correct Answer: A

QUESTION 37

- (Topic 3)
Electronic data interchange reduces costs primarily through:

  1. A. standardization of trading document formats.
  2. B. adaptability across hardware platforms.
  3. C. simplified software development.
  4. D. replacement of proprietary systems.

Correct Answer: A

QUESTION 38

- (Topic 3)
The most appropriate strategy for a firm that makes and sells a wide range of items typically would be to domestically source items that have which of the following characteristics?

  1. A. Short product life cycle and many variations
  2. B. Short product life cycle and few variations
  3. C. High labor value and low transport uncertainty
  4. D. High labor value and high transport uncertainty domestically

Correct Answer: A

QUESTION 39

- (Topic 3)
When profit impact is high and supply risk is low for an item, which of the following procurement strategies is most likely to be effective and successful?

  1. A. Leveraging purchasing power
  2. B. Forming a long-term partnership
  3. C. Automating the procurement process
  4. D. Ensuring continuous supply

Correct Answer: A

QUESTION 40

- (Topic 1)
Which of the following corporate strategies is most consistent with a flexible supply chain strategy?

  1. A. Being the low-price leader
  2. B. Providing the highest-quality service
  3. C. Providing mature products with stable sales
  4. D. Emphasizing the quality of the product

Correct Answer: B

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