1. A primary objective of a lean enterprise is to:

A) analyze and focus the value stream along all functions to maximize value for the ultimate customer.
B) employ people who have enhanced abilities to learn and adapt to the corporate culture.
C) continuously improve processes and procedures to maintain a level production schedule.
D) create value for its suppliers by incorporating lean manufacturing principles into a supplier certification process.



2. Cost reduction, improvement of company focus, and freeing assets from noncore activities are among the results achieved through effective implementation of:

A) supply chain management.
B) service supplier management.
C) collaboration.
D) outsourcing.



3. Which of the following methods is used to minimize the bullwhip effect?

A) Outsourcing noncore business activities
B) Reducing the number of stock keeping units (SKUs)
C) Reducing lead time
D) Increasing factory inventory



4. Requirements for successful application of a demand-driven supply network include:

A) demand synchronization between stakeholders.
B) automatic communications of data from point-of-sale (POS) terminals.
C) safety stock determined jointly by suppliers and customers.
D) supply provided by a single source.



5. In the analysis of costs, fixed costs are those that are:

A) independent of the volume of output.
B) dependent on the utilization of the asset.
C) inversely proportionate to the volume of output.
D) constant through the useful life of the asset.