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NEW QUESTION # 11
Which of the following can be used to pre-assess the consequences of a network member not meeting the control requirements set by the organisation?
Answer: B
Explanation:
The key term in this question is"pre-assess."Anescalation strategyidentifies risks in the supply network and outlines how to manage disruptions before they escalate. It ensures control issues are handled efficiently by escalating them to senior management when necessary. (See p.194)
NEW QUESTION # 12
Giant Gymsis a fitness chain where clientspay a monthly subscriptionfor full access to gym facilities. The company typically experiences ahuge spike in new memberships in Januarydue to New Year's fitness resolutions. However, toreduce this seasonal surge, Giant Gyms introduces apricing structure that makes it cheaper to sign up in November, which is typically itsslowest month.
What is this strategy called?
Answer: D
Explanation:
Demand smoothingattempts toinfluence customer behaviorto balancedemand fluctuations. Giant Gyms wants more customers inNovemberrather than inJanuary, preventingseasonal peaks and troughs.
#Note:
* Lead Strategy= expanding capacitybefore demand increases
* Capacity Expansion= increasing production ability
* Optimal Capacity= achieving thebest cost-to-production ratio
(See LO 1.3, p.55)
NEW QUESTION # 13
Which of the following is atechnique for continuous improvementthat employs afull-time specialist improvement team?
Answer: A
Explanation:
* Six Sigmaemploysdedicated full-time teamsfocused oncontinuous improvement.
* Kaizen (A)is anongoing improvement philosophybut does not require aspecialist team.
* Employee suggestion schemes (B)are informal.
* Value stream mapping (D)is a tool, not a full-time methodology.
(LO 2.3, See p.121)
NEW QUESTION # 14
Which of the following arecontract pricing arrangementsused to control costs?Select ALL that apply.
Answer: A,B,C,E
Explanation:
* Fixed price: The supplier cannot change the price, ensuring cost control.
* Use of price index: Prices can only change based on an agreed index, preventing arbitrary cost increases.
* Gain-share agreement: The supplier is incentivized to save costs as they share in the profits, reducing the likelihood of overcharging.
* Open book: The buyer has full visibility of the supplier's pricing, preventing overcharging.
Variable price (D) is incorrectbecause it allows the supplier to change prices freely, making cost control difficult. (See p.199)
NEW QUESTION # 15
Risks are always present within organisational strategies, and it is important that they are assessed. Which of the following arestrategies for dealing with risk?
Answer: D
Explanation:
Thefour risk management strategiesare often remembered asTEAR:
* Transfer: Shift the risk to another party (e.g., insurance, outsourcing).
* Eliminate: Remove the risk entirely where possible.
* Avoid: Choose not to engage in activities that introduce the risk.
* Reduce: Take measures to minimize the impact or likelihood of the risk occurring.
(See p.200)
NEW QUESTION # 16
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