Free Achieving Competitive Advantage Through the Supply Chain Exam L5M7 Exam Practice Test

Which of the following are incentives for suppliers to perform well on a contract? Select TWO.

• Revenue-based pricing
• Market-based pricing
• Outcome-based pricing
• Quality-based pricing

Plastic Fantastic Ltd manufactures plastic homeware. Customers can return used products to the retailer, who passes them back to the manufacturer for reprocessing. What type of supply chain is this?

• Open Loop Supply Chain
• Forward Loop Supply Chain
• Manufacturing Supply Chain
• Closed Loop Supply Chain

In Six Sigma, a Black Belt is the highest level that can be achieved. Is this correct?

• Yes – a Black Belt implements Six Sigma full-time
• Yes – a Black Belt trains project teams
• No – there are higher levels such as Master Black Belt and Champion
• No – Green Belt is the highest

In a confectionery factory, quality inspection occurs before packaging. If a product is found defective, which type of cost of quality is incurred?

• Internal failure cost
• External failure cost
• Prevention cost
• Appraisal cost

A marketplace which is described as a ‘red ocean’ has which of the following characteristics?

• Highly competitive
• No competition
• Easy to enter
• Lots of substitute products available

Which of the following relationship styles is the least collaborative?

• Strategic alliance
• Arm’s-length
• Transactional
• Outsourced

ABC produces electronics in a highly competitive, fast-changing market. Which supply chain strategy should ABC employ?

• Lean
• Just-in-Time
• Responsive
• Agile

Data needs to be collected, measured, and analysed to ensure quality in processes. Which of the following should the data be?

• Specific, Measurable, Achievable
• Achievable, Time-bound, and Qualitative
• Quick, Relevant, and Measurable
• Time-bound, Detailed, and Impartial

Open-Book Costing relies on which of the following? Select TWO.

• Finding the lowest cost
• Splitting profit 50:50
• Good communication
• Transparency of costs and justifications

When implementing Business Process Re-engineering (BPR), which should be the first step?

• Analyse and document the existing process
• Appoint a process owner
• Identify and prioritise improvement opportunities
• Establish customer requirements