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QUESTION NO: 1
A company's decision to charge different prices for the same service sold in different market segments is most likely based on which of the following metrics?
A.Internal rate of return (IRR)
B.Lifetime customer value (LCV)
C.Net present value (NPV)
D.Return on investment (ROI)
Answer: B

QUESTION NO: 2
Variation in upstream requirements can be reduced by increasing:
A.demand visibility.
B.production capacity.
C.product features.
D.safety stock.
Answer: A

QUESTION NO: 3
Which of the following situations is an example of inventory being held as a way to balance supply and demand?
A.A manufacturer holds inventory of key components to maintain a level production schedule.
B.A manufacturer of seasonal products builds finished-goods inventory before the peak selling period.
C.A distributor maintains safety stock of slow-moving items at a central distribution center.
D.A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.
Answer: B

QUESTION NO: 4
A company manufactures special products for select customers. When demand for these products drops, the manufacturer can switch the production line to a commodity-type product that can be sold on the open market at reduced terms to generate cash. The company is executing a corporate strategy that is based on:
A.customer focus and alignment.
B.forecast accuracy.
C.multiple downstream channels.
D.multiple upstream supply chains.
Answer: D

QUESTION NO: 5
A main benefit of using customer relationship management (CRM) is:
A.maximization of on-time delivery.
B.minimization of product returns.
C.identification of customers with high lifetime value.
D.finding new markets for existing products and services.
Answer: C

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Updated: May 27, 2022