- (Topic 3)
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?

1. A. Tree diagram
2. B. Pareto chart
3. C. Process map
4. D. Affinity diagram

Correct Answer: D

- (Topic 3)
A firm has increased finished-goods inventories for several products to compensate for increased variability in demand. The firm analyzed shipment data and determined that the variability was due to a few customers placing large orders for single shipments to obtain discounts. Which of the following actions is the firm most likely to take to maintain sales and reduce variability in demand?

1. A. Reducing discounts for large orders
2. B. Encouraging high-volume customers to place blanket orders
3. C. Implementing extrinsic forecasting methods
4. D. Increasing the level of safety stock on high-volume products

Correct Answer: B

- (Topic 3)
The practice of purchasing items in large quantities and requesting that shipments be
delivered directly to customers is referred to as:

1. A. drop shipping.
2. B. cross-docking.
3. C. breaking bulk.
4. D. freight equalization.

Correct Answer: A

- (Topic 3)
Which of the following constraints is most important to consider when adapting a vertical integration strategy?

1. A. Location of suppliers
2. B. Location of customers
3. C. Capital requirements
4. D. Size of existing manufacturing plant

Correct Answer: C

- (Topic 3)
Which of the following principles is a core value of the UN Global Compact?

1. A. Anti-Corruption
2. B. Profitability
3. C. Discrimination
4. D. Employment

Correct Answer: A