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A supplier with a previously good performance record has recently been shipping parts with a number of flaws, making them unusable for production. The firm's supply manager would like to resolve these problems before taking more drastic measures. Which of the following actions should the supply manager take FIRST'

AExplore possible root causes, including changes in the supplier's production processes

BAsk engineering to review tolerances on non-critical specifications and relax them if possible

CTest the parts at an independent laboratory and notify the supplier of the results

DRe-work the parts in-house and bill the supplier for any costs incurred

Question 2

A supply manager is reviewing safety stock for a particular unit. The unit is small, Inexpensive, non-perishable, and easily stored, but is critical to the firm's manufacturing process. The following information is known about this unit:

Maximum lead time = 8 Days

Average lead time = 3 Days

Maximum daily usage = 6,000 Units

Average daily usage = 4,000 Units

What is the maximum safety stock that should be maintained for this unit?

A12,000

B10,000

C36,000

D48,000

Question 3

A company requires a physical tracking system for goods received and handled in its warehouse. The firm's executive management requests a report to justify funding for the tracking system. Which of the following is the PRIMARY point the report should address?

ATraining opportunities on scanner technology

BWaste stream tracking

Cinventory accuracy

DUse of physical tracking by competitors

Question 4

A supply manager oversees three distribution centers. Which of the following will be MOST useful for understanding the capacity of these centers7

AWarehouse Management System (WMS)

BCapacity Requirements Planning (CRP)

CAn Enterprise Resource Planning (ERP) system's forecasting tool

DAn external consultant s analysis of the distribution centers

Question 5

A supply manager receives four bids for a special piece of equipment. The equipment is large and does not fit into a normal sea container. The bids are as follows:

Supplier 1 Supplier 2 Supplier 3 Supplier 4

Bid $2,110,000 $2,105,000 $2,110,000 $2,115,000

Incoterms 2020 Rule GIF DPU FCA FAS

The costs of transportation, included within each bid price, are as follows:

Responsibility for Payment to Carrier Transfer of Risk to Buyer Cost of Transportation

Supplier, before goods are loaded onto vessel: purchaser thereafter Alongside vessel nominated by purchaser $50,000

Supplier to named port of destination: purchaser thereafter Once goods have been loaded onto the vessel $55,000

Supplier to named place of destination once unloaded: purchaser thereafter Once goods have been unloaded at named place of destination 540,000

Purchaser Where goods are loaded onto the collecting vehicle $30,000

The supply manager has taken account the firm's risk profile and wishes to use FCA for its Incoterms 2020 rules. Adjusting the pricing in the tenders to reflect this, which supplier should be awarded the contract (based on the lowest price)?

ASupplier 4

BSupplier 2

CSupplier 1

DSupplier 3

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