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NEW QUESTION 24
Functional products have all of the following characteristics EXCEPT:

• A. predictable demand
• B. average forced end-of-season markdown of 10% to 25% of full price
• C. product life cycle of more than 2 years
• D. low product variety
• E. average stockout rates of 1% to 2%

Answer: B

NEW QUESTION 25
An advantage of using a third-party logistics service (3PL) is improved:

• A. on-time delivery of shipments due to higher inventory levels.
• B. access to smaller markets due to localization.
• C. cost structure due to economies of scale.
• D. risk visibility due to inventory consolidation.

Answer: C

NEW QUESTION 26
Which of the following processes enables joint planning of key supply chain activities?

• A. Supply chain event management (SCEM)
• B. Vendor-managed inventory (VMI)
• C. Collaborative planning forecasting, and replenishment (CPFR)
• D. Distribution requirements planning (DRP)

Answer: C

NEW QUESTION 27
To achieve the objective of increased profits, a company that implements supply chain tactics must effectively address the conflicts between inventory investment and:

• A. order-fill rates.
• B. lead times.
• C. plant capacity.
• D. sales volume.

Answer: C

NEW QUESTION 28
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