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Question 20

A retailer of high-value consumer electronics experiences a significant increase in theft within its forward and reverse logistics operations, both of which are subcontracted to third parties. Which of the following is the FIRST course of action the retailer should undertake in order to mitigate loss within the subcontractors' chain of custody?

Options:

Redesign product packaging to add tamper proof capabilities

Invest in a Transportation Management System in order to track the movement of products in real time

Invest in radio-frequency identification (RFID) technology, in order to track inventory within the entire supply chain

Assess internal process flow diagrams and those of the subcontractors to identify areas where risk of loss can occur

Question 21

A supply manager negotiates a volume discount with a key supplier. The supplier will provide a discount on screws, bolts, and nuts, based on the quantity indicated on the purchase order (PO). Which of the following would be the BEST way for the buying firm to maximize the benefits of this discount?

Options:

Raise the reorder point on these items so that the firm can take the advantage of the volume discount arrangement

Communicate the volume discount arrangement to the engineering department so that the firm can consume these items in greater quantities

Set up the fixed order quantity on these items to ensure that each purchase order issued will meet the required quantity for the volume discount

Lower the reorder point on these items so that the firm can take the advantage of the volume discount arrangement

Question 22

Which of the following refers to the exporting of a product by a country or company at a price that is lower in the foreign importing market than the price charged in the exporter's domestic market?

Options:

Short selling

Dumping

Hedging

Recovery

Question 23

A company that has never focused on supply management in the past is now faced with increasing competition from new, innovative products entering its market. As a result, the firm's business strategy includes an increased focus on cost containment. Given this situation, which of the following should the company do FIRST?