Study Online CSCP Exam Dumps to Pass

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July 5, 2024

CSCP dumps questions can help you identify areas where you need to focus your studies. As you answer questions, you will be able to see which topics you are comfortable with and which ones you need to spend more time studying. APICS CSCP dumps questions provide realistic practice for the certification exam. CSCP dumps are designed to simulate the actual exam environment, and they will give you a chance to practice answering questions under time pressure. Study free APICS CSCP online dumps below.

Page 1 of 17

1. The most stringent measurement of fill rate to support product availability is:

Line

Order

Value

Customer

2. Which of the following processes is key to customer relationship management (CRM)?

Event logging

Demand planning

Market segmentation

Market research

3. In order to decrease shipping costs, a shipper would take which of the following actions?

Utilize less-than-truckload (LTL) shipments versus truckload (TL).

Use a common carrier rather than a contract carrier.

Decrease the weight shipped and use break-bulk shipments.

Increase the weight shipped and consolidate shipments.

4. Which of the following terms represents a time series forecasting technique?

Mean absolute deviation (MAD)

Moving average

Causal

Multiple regression

5. Which of the following statements represents a major assumption needed to effectively use days of supply as a measure?

The reorder point for the inventory has been calculated correctly.

The forecast for the item usage is reasonably accurate.

The item is in the growth phase of the product life cycle.

The item is subjected to statistical process control (SPC) during production.

6. Which of the following techniques typically is most effective for controlling variability of demand in a supply chain?

Holding consignment inventory at a customer's location

Holding additional stock at the distributor’s location

Closer monitoring of product promotions at the retailer

Centralizing demand information

7. A methodology in which inventory is increasingly likely to be placed on consignment instead of being sold first to the retailer and then to the end customer is known as:

Collaborative planning, forecasting, and replenishment (CPFR)

Vendor-managed inventory

A quick-response program (QRP)

A continuous replenishment system.

8. Which of the following statements is true when selecting the mode of transportation to use in a global supply chain?

The difference in cost of warehousing in different countries makes air transportation viable only for very lightweight items.

When moving heavy items long distances, water transportation offers the lowest cost and highest availability in most countries.

Pipeline usage is limited because of the high variable cost of operation and difficulty moving between pipelines

The availability, specifications, and geographic reach of rail transportation varies greatly from country to country.

9. The use of standardized components typically results in:

increased planning and control efforts to avoid shortages.

fewer inventory items and inventory levels.

more items, larger bills of material (BOMS), and increased material requirements planning (MRP) run time.

smaller bills of materials, fewer routings, and fewer manufacturing orders.

10. Sell-side e-commerce must include:

automated returns processing.

advance ship notice (ASN).

electronic data interchange (EDI).

automated order entry and tracking.

Page 2 of 17

11. A company has a high product mix and has decided to increase its supply chain flexibility.

The most appropriate action for the company to take is to:

implement a new inventory management system.

increase the standardization of equipment and processes.

decrease the cycle time of product development.

implement principles of theory of constraints (TOC).

12. Which of the following inputs is used in developing a project charter?

Business case

Work breakdown structure

Project management plan

Proposed solutions

13. The primary business advantage of developing an international supply chain is to:

reduce transportation costs.

decrease inventory costs.

limit the number of component suppliers.

realize economies of scale in production and distribution.

14. A company wants to improve its transportation strategy to focus on its core manufacturing competence and reduce costs.

Which of the following options is most likely to enable the company to achieve its objectives?

Implement a transportation management system (TMS)

Transition to leased transportation equipment

Engage a third-party logistics (3PL) company

Redesign the distribution network

15. An organization is redesigning its processes to maximize the use of parallel operations. An expected outcome of this effort typically would include:

increased processing costs.

increased buffer capacity.

reduced requirement for support materials.

reduced lead times.

16. A company that is effectively managing its cash will have which of the following conditions?

Low accounts receivable, tow inventory, high accounts payable

High accounts receivable, low inventory, high accounts payable

Low accounts receivable, high inventory, low accounts payable

High accounts receivable. high inventory. low accounts payable

17. Which of the following is the most important result when a company implements customer relationship management?

A. Profits are maximized.

B. Retention of key customers is increased.

C. Product options are increased.

D. Transaction costs are decreased.

18. Which of the following measures best describes fill rate?

Ratio of available inventory to cost of goods sold (COGS)

Ratio of cost of goods sold to available inventory

Percentage of demand satisfied by available inventory

Percentage of closed orders to total orders

19. Organizations can take which of the following actions as an outcome of SWOT analysis?

Publish their internal positive factors.

Emphasize their internal negative factors.

Take advantage of external positive factors.

Control external negative factors.

20. A company that produces a set of standard products, which are sold through multiple channels, would segment its sales by:

brand.

product.

customer.

region.

Page 3 of 17

21. The purpose of price differentiation is to:

reduce sales variability.

clear out inventories.

increase total revenue.

increase customer loyalty.

22. Which of the following factors is a key motivation for supply chain collaboration?

Technology

Traditional accounting methods

Regular negotiations

A common interest

23. Unresolved conflicts from the sales and operations planning (S&OP) process will result in which of the following outcomes?

Supply and demand will come to a consensus

Demand will take precedence

Supply will take precedence

Senior management resolution

24. Which of the following processes would a company use to evaluate the risk profile for end-of-life planning for a product family?

A. Distribution requirements planning

B. Sales and operations planning

C. Rough-cut capacity planning

D. Production activity control

25. Which of the following strategies can be used to help manage global risks?

Direct shipment

Cross-docking

Mass customization

Flexibility

26. Continuous improvement is best described as:

a never-ending effort to expose and eliminate root causes of problems.

a never-ending effort by the management team to reduce cycle time.

identifying and implementing big-step improvements within a process.

a process in which a supplier commits to replenishing inventory based on demand without receiving replenishment orders.

27. The primary risk associated with outsourcing innovative components to suppliers is:

decreased flexibility.

higher carrying costs.

employee turnover.

loss of competitive knowledge.

28. The most cost-effective way to increase the velocity of goods in a supply chain is to:

improve the way the supply chain handles goods that are not in motion.

switch to a faster mode of transportation.

establish warehouses near major retail outlets.

subcontract with multiple third-party logistics (3PL) providers who are located at strategic locations.

29. What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?

Reduced need for bar codes and radio frequency identification technology

Reduced material handling costs

Ease of control and count accuracy

Maintain a cleaner shop floor

30. The demand side of a traditional warehouse management system primarily is concerned with:

receiving incoming goods.

assigning storage locations.

assembling outbound orders.

forecasting product demand.

Page 4 of 17

31. A company has determined that products sold to a large, strategic customer have unacceptable low variable margins.

Which of the following strategies should the company use to improve profitability of sales to that customer?

End the relationship and seek out a profitable customer to replace it.

Implement a balanced scorecard.

Evaluate the products' value to the customer and adjust prices accordingly.

Move the production of the products to a low labor cost location.

32. Which of the following characteristics are reflective of a resilient supply chain?

Proactive in anticipating events and fast recovery from undesirable events

Reactive in anticipating events and fast recovery from undesirable events

Proactive in anticipating events and slow recovery from undesirable events

Reactive in anticipating events and slow recovery from undesirable events

33. A company has been delivering a global product that no longer appears profitable. Senior management’s best response is to:

A. analyze product profitability by market segment.

B. discontinue the product based on eroding profitability.

C. provide additional incentives to the sales force.

D. increase promotional activity across all markets.

34. Which of the following components of advanced planning and scheduling (APS) defines and coordinates constraints?

Demand management

Resource management

Resource optimization

Resource allocation

35. A company with a fleet of trucks is considering using a third-party logistics (3PL) provider to distribute a new product.

Which of the following benefits most likely will result?

Fewer tax implications

Limited exposure to regulatory violations

Fixed delivery costs

Better market accessibility

36. In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing most likely will be:

company policy

viewed as a way to reduce costs

considered necessary

considered risky

37. After two firms have established an initial relationship to apply the principles of collaborative planning, forecasting, and replenishment (CPFR) for products, the next logical step is to:

share forecasts for the products with each other.

obtain orders for the products and enter them into the master schedule.

create joint business plans for the products.

negotiate prices and profit expectations for the products.

38. The purchasing manager of a company wants to minimize stock-outs as well as obsolete inventory.

Which of the following tools needs to be implemented?

Blanket purchase order

Advanced planning and scheduling (APS)

Buy-back contracts

Business-to-business integration software

39. A supplier disputes a low rating generated by a company's enterprise resources planning (ERP) system.

Which of the following actions by the purchasing agent is most appropriate?

Advise the ERP information technology manager that there is a flaw in the rating system.

Scrap the vendor rating system until the company can figure out what is wrong.

Compare the vendor and company detail records, and interview company employees who handled the data.

Tell the supplier that, regardless of the disputed claims, the supplier must improve performance.

40. Which of the following types of information would be an appropriate basis for a qualitative forecast?

Leading indicators

Market research data

Order history

Shipment history

Page 5 of 17

41. Effective collaboration for item replenishment by external suppliers requires:

accurate long-term forecasts.

returnable plastic containers.

close communication about component usage.

a process for the reverse supply chain.

42. The ISO 31000 standard can be best used for which of the following actions?

Certifying in risk management

Seeking generic guidelines on risk management

Comparing risk management practices

Creating industry specific risk management practices

43. A company redesigning their supply chain should review which of the following strategic levels first?

transportation strategies

Inventory policies

Customer segmentation

Flow of material through network

44. The purpose of Incoterms® is to establish common:

software system terminology between supply chain partners.

contracts for trade within the supply chain.

company communication channels within the supply chain.

quality measures for use in the supply chain.

45. A manufacturer and the distributors of its products have decided to focus on price and product availability as strategic priorities.

Which of the following values would be the most appropriate measure of customer service?

Manufacturer's volume flexibility

Order-fulfillment lead times

Distributors' order-fill rates

Supply chain inventory days of supply

46. Implementing a balanced scorecard for a supply chain typically would include which of the following actions?

Responding to resistance

Calculating partner performance

Communicating the strategic purpose to partner organizations

Aligning partner performance based on channel-master requirements

47. A work center's demonstrated capacity for the last week was 160 standard hours. Its demonstrated capacity for the last 6 weeks was 140 standard hours.

Which of the following numbers would be best to use to determine the appropriate future load for the work center?

160 standard hours, because it reflects what the work center has proven it can do.

160 standard hours, because it reflects what happened most recently.

150 standard hours, because it is the average of the last two periods.

140 standard hours, because it is based on a greater number of periods.

48. Which of the following actions by trading partners will likely reduce the goods that will be processed by the reverse supply chain?

Contracting with a third party to process returned goods

Designing products that are easy to disassemble

Working to delay regulations that require accepting returns

Providing support and service for proper product use

49. Which of the following types of competitive strategies most likely will be effective for an industry in which the product is a standardized commodity?

Low-cost leadership

Best-cost provider

Broad differentiation

Focused differentiation

50. A firm supplies a single line of products to consumers using retail stores and on-line sales, distributors, and wholesalers. Currently the firm has common pricing and response times for sales in each sales channel.

Which of the following tools is most appropriate to employ to improve profitability?

A. Customer segmentation

B. Customer-facing ordering systems

C. Customer relationship management (CRM)

D. Supply Chain Operations Reference (SCOR®)

Page 6 of 17

51. Which of the following actions is most likely to improve the cash-to-cash cycle time?

Find suppliers with lower total cost of ownership (TCO)

Implement vendor-managed inventory (VMI) with key suppliers

Implement vendor-managed inventory (VMI) with key customers

Establish targeted promotions for the most profitable market segments

52. Which of the following attributes is an advanced functionality of a warehouse management system (WMS)?

Inventory management

Work order management

Labor management

Task management

53. A remanufacturer of equipment is most likely to have what type of supply chain?

Modular logistics

Reverse logistics

Mixed model

Lateral

54. Which of the following actions hedges against commodity price fluctuations in a supply chain?

Purchase always from the lowest bidder

Increase safety stock levels

Establish an online auction site

Purchase future options

55. The practice of purchasing items in large quantities and requesting that shipments be delivered directly to customers is referred to as:

drop shipping.

cross-docking.

breaking bulk.

freight equalization.

56. Which of the following techniques is most effective for a company to sell high-volume products to multiple market segments?

Market targeting

Mass customization

Mass production

Commoditization

57. A product design that can be produced to requirements even when conditions in the production process are unfavorable typically is known as what type of design?

Universal

Computer-aided

Modular

Robust

58. Which of the following tools will facilitate greater collaboration as the supply chain matures?

Supplier relationship management (SRM) to select a vendor

Customer relationship management (CRM) to automate the sales force

Supply chain event management (SCEM) to increase visibility of changing situations

Enterprise resources planning (ERP) to forecast demand

59. Which of the following conditions are most indicative of a company that is effectively managing its cash?

Low accounts receivable, low inventory, high accounts payable

High accounts receivable, low inventory, high accounts payable

Low accounts receivable , high inventory, low accounts payable

High accounts receivable, high inventory, low accounts payable

60. When designing a supply chain for strategic advantage, a company first should consider:

the impact on customers using Just-in-Time manufacturing.

the financial stability of suppliers.

matching the supply chain to product type.

whether to use custom or standard parts.

Page 7 of 17

61. Which of the following actions by a manufacturer most likely would improve service levels throughout the supply chain?

Increasing promotions

Increasing market penetration

Reducing product variety

Reducing profit-margin expectations

62. The focus of collaborative supply chain management differs from a transactional approach by its emphasis on the:

transportation of goods to the next link in the chain.

flow of product information up to the next level of the chain.

flow of demand information and cash up the chain.

flow of supply into an organization.

63. A possible risk of licensing other companies to manufacture products is:

losing market share.

the other companies becoming competitors

the products becoming a commodity

the products being over priced

64. Attaching a fuel tank cap to a fuel tank door on a car is an example of which of the following lean techniques?

Five Ss

Five whys

Poka-yoke

Kaizen

65. A company is aggressively pursuing improvements in the financial performance of its supply chain.

The company should first focus its efforts on which of the following metrics?

Process takt time

Cycle count accuracy

Number of inventory turns

Number of first-tier suppliers

66. In order to bring a new product to market quickly while maximizing customer value and minimizing

costs, a company should leverage:

top performing suppliers in the areas of quality, cost, and availability.

crowdsourcing for design capital requirements.

e-commerce trading methods.

concurrent engineering or participative design.

67. A company is evaluating a potential supplier for a strategic, long-term relationship.

Which of the following metrics would be the best indicator to assess the supplier's fiscal health and ...t potential bankruptcy?

quick ratio

aggregate inventory turnover

Financial Z-Score

Days of supply

68. Which of the following areas of concern is an important strategic inventory management decision?

How much inventory to order for each replenishment cycle

Who is responsible for inventory record accuracy

Where in the supply chain inventory should be kept

When requests for additional inventory should be created for supply chain partners

69. A key concept distinguishing six sigma from lean manufacturing and just-in-time (JIT) concepts is:

reducing waste.

eliminating inventories.

keeping process variability within limits.

designing quality into products and processes.

70. An organization is striving to improve the transfer of multiple levels of data about products and services to trading partners in the supply chain network.

Which of the following solutions is most appropriate?

Business analytics

Electronic commerce

Enterprise resources planning (ERP)

Advanced planning and scheduling (APS)

Page 8 of 17

71. The most appropriate reason for a business to comply with the United Nations (UN) Global Compact practices typically would be to:

enhance the competitive advantage.

gain access to proven management tools.

reduce the threat of organized labor.

reduce the cost of operating in multiple countries.

72. The strategy to implement supplier relationship management has been developed.

The most appropriate next step is to:

develop criteria for prospective partners.

develop policies for alliances.

select initial partners.

conduct a pilot implementation.

73. A company recently implemented a new supplier rating system. Data was collected from the enterprise resources planning system about each vendor's rating for cost, quality, and delivery over 12 months. A cutoff point was established for poor performers. The responsible purchasing agent then scheduled meetings with each supplier.

Which of the following actions is most appropriate to take with suppliers whose ratings were below the cutoff point?

Discuss ways to raise the ratings for the next review period.

Tell the suppliers they are on probation for 3 months.

Immediately cancel outstanding contracts with those suppliers.

Ask the suppliers to explain the poor performance.

74. A procurement manager wants to reduce costs on commodity items.

Which of the following actions is likely to result in the greatest savings?

Conducting a supplier review and recertification

Renegotiating contracts with commodity suppliers

Standardizing and eliminating redundant items

Leveraging group purchasing power

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

demand synchronization between stakeholders.

automatic communications of data from point-of-sale (POS) terminals.

safety stock determined jointly by suppliers and customers.

supply provided by a single source.

76. A company develops annual forecasts for key products and enters into annual contracts with key suppliers based on the forecasts.

Which of the following benefits would the company most likely receive from this approach?

Shorter delivery lead times

Lower prices

Improved service

Higher-quality products

77. Which of the following rider less material handling systems can be characterized by movement along the floor using optical, magnetic, or wireless control?

Automated storage/retrieval system (AS/RS)

Automated guided vehicle system (AGVS)

Robotics

Sortation

78. A firm has discovered a product quality issue.

What should be the first step in responding to this issue?

Determine the root cause of the quality issue.

Separate the non-conforming products.

Trace the location of the faulty product in the supply chain.

Replace faulty products when they are returned by the end user.

79. Which of the following factors is crucial to advancing cooperation between customers and suppliers?

A legal agreement

Mutual trust

Mutual need

Financial dependency

80. A company distributes its products through wholesale, retail stores, and its e-commerce website. Inventory and demand forecasting for each channel is managed separately. The company is experiencing high levels of obsolete inventory.

Which of the following strategies is most likely to reduce the levels of obsolescence?

Place smaller orders with suppliers.

Pool inventory and the forecast.

Open more outlet stores.

Negotiate lower costs with suppliers.

Page 9 of 17

81. A business is changing from a business to business model to a business to consumer model.

Which of the following statements about this supply chain change is true?

Returns from customers will decrease.

Number of supplier orders will increase.

Number of customer orders will increase.

Average supplier order size will increase.

82. Which of the following distribution approaches for a low-volume, high-variety product line typically will result in the highest level of customer service and the lowest total distribution costs?

Direct shipment from plant to customers

Shipment from a central distribution warehouse

Shipment through a multi-echelon distribution network

Outsourcing the distribution function

83. A firm usually buys one month of requirements at a time but has decided to buy two months of requirements for a certain product to take advantage of an order quantity discount...kely made this decision because:

..transportation costs will decrease since the firm is buying less often.

..The firm would like to spend less time on placing orders.

..The firm has determined that the price savings are greater than the extra holding cost.

The firm wants to improve its inventory turns.

84. A company has decided to source, manufacture, and distribute its products from its own facilities located throughout the world.

This strategy is best described as:

horizontal integration.

a universal distribution system.

vertical integration.

an outsourced supply chain.

85. Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by:

efficient material replenishment processes.

clearly identified roles for the buyer and seller.

a shared vision of added value.

a sole-source agreement.

86. Which of the following results can be expected from sharing a common understanding of demand and consumption patterns among supply chain participants?

A. Improved transparency of collaboration relationships

B. Increased performance in balanced scorecard

C. Reduced inventory levels for key items

D. Better synchronization of planning and operations

87. Which mode of long distance transportation would cost the least per ton mile?

Water

Air

Truck

Rail

88. Which of the following actions by trading partners would be most appropriate to protect against variability in supply and demand?

Improve product quality.

Increase inventory levels.

Increase information sharing.

Reduce product complexity.

89. Allowing for organizational restructuring is an example of which of the following steps in creating successful strategic alliances among suppliers?

Managing multifaceted relationships

Negotiating a win-win deal

Planning for change

Conducting pulse checks

90. Which of the following arguments are made against traditional accounting methods for logistics expenses to an organization?

They are more difficult to accumulate.

They overstate the costs of logistics.

They obscure important logistics costs.

They incorrectly state the timing of logistics costs.

Page 10 of 17

91. A master scheduler receives a new order with a due date inside the demand time fence (DTF).

The best response is to:

accept the order and schedule.

reject the order and inform sales.

identify the impact on current orders and escalate.

accept the order but change the due date.

92. In a reverse supply chain, which of the following tools enables forecasting the usability of each part in the returned product?

Reverse network design

Warranty return rate analysis

A disassembly bill of material (BOM)

Design for service

93. Due diligence for conflict- or high-risk-materials should include which of the following processes:

a method to track the country of origin of materials when they leave the country.

a system of controls and transparency regarding the traceability of materials through the supply chain.

certification primarily by companies that are selling directly to consumers about the firm’s tier one suppliers.

ability to provide documentation of the source materials when they are imported into United Nations countries.

94. The purpose of continuous improvement in the supply chain is to:

eliminate the root causes of problems.

improve interorganizational communication.

develop better written procedures.

reduce product costs.

95. The factors to consider in the make-or-buy decision include costs, proprietary knowledge, and:

design history.

available capacity.

inventory balance.

warehouse location.

96. Which of the following documentation represents a carrier's method of charging for transportation services performed?

Shipment manifest

Bill of lading (B/L)

Letter of credit (L/C)

Freight invoice

97. In an advanced planning system, which of the following modules feeds the master planning module?

Purchasing planning

Demand planning

Distribution planning

Fulfillment planning

98. When implementing e-commerce in the supply chain, a company's toughest challenge most likely will be:

getting all vendors to computerize.

translating data into universal standards.

convincing the information technology department of the value.

explaining the reason for change to customers.

99. The most appropriate frequency for the sales and operations planning process typically is:

weekly.

monthly.

quarterly.

annually.

100. A company whose business strategy is to be environmentally responsible would most likely have a supply chain focused on:

reducing the size of facilities.

reducing supply chain costs.

increasing process efficiency.

increasing product throughput.

Page 11 of 17

101. Which of the following actions typically would be considered part of a reverse logistics strategy?

A. Offering a discount on new purchases when used products are returned

B. Reducing the amount of packaging material used in shipping

C. Manufacturing products in batches consistent with full-truckload shipments

D. Batching returns of defective components to the suppliers

102. A key challenge in managing the supply chain for an innovative product is that:

contribution margins will be slim.

the product life cycle will be long.

product demand will be volatile.

inventory levels must be minimal.

103. Quality function deployment (QFD) is a methodology designed to ensure that:

quality is maintained at all levels of the organization.

suppliers providing high-quality parts are certified.

defective products do not reach customers.

customer requirements are understood and met.

104. Which of the following elements of total quality management (TQM) results in a lower overall cost of the product?

Aesthetics of the product

Prevention of failures

Speed to deliver

Compliance to regulations

105. Which of the following types of alignments between extended supply chain partners will yield the highest level of competitive advantage?

Financial

Social

Process

Strategic

106. Which of the following operations is the best example of reuse?

Manufacturing new products from worn tires

Utilizing wastepaper as packaging material

Making animal feed from fresh food scraps

Extracting precious metals from used electronics

107. What is the primary role of marketing in supporting supply chain management?

Selecting favored supplier partners

Developing efficient customer channels

Focusing on short-term forecasting accuracy

Working with research and development on slow-moving products

108. A company has applied lean thinking and tools to its internal operations over the last several years. The company is now concerned about its ability to recover from a supply disruption.

Which of the following actions would be most appropriate for the company to take to increase its resiliency?

Arrange for multiple sources for key components.

Maintain 1 week’s supply f safety stock for key components.

Required the suppliers of key components to maintain safely stock

Add capacity to enable quick recovery from a disruption

109. A clothing company focuses its attention on high-fashion products and rapid product development.

Which of the following types of value is the company trying to create?

Financial

Customer

Social

Environmental

110. Which of the following attributes typically makes reverse logistics processes more complicated than outbound logistics processes?

Lead times for shipments are more variable.

Individual packages and cartons are less uniform.

There are more regulations mandated by local governments.

There is more competition for scarce transportation lanes.

Page 12 of 17

111. Value stream mapping provides the most benefit during which of the following tasks?

Analyzing a supplier relationship management (SRM) system

Identifying non-value-added activities

Planning kaizen events

Implementing a quality improvement initiative

112. A company most likely would consider moving a portion of its manufacturing to a second location to:

improve competitive advantage through cost control.

avoid manufacturing downtime due to material shortages.

maximize security for customer shipments.

minimize the impact of natural disasters.

113. Sourcing via an internet-based trading exchange would be most appropriate for which of the following types of raw materials?

Expensive material that is critical to the finished product

Inexpensive material for which there are several substitutes

Expensive material for which there are many sources

Inexpensive material that is critical to the finished product

114. The main purpose of market research for supply chain design is to identify:

Minimal marketing costs

Potential markets and analyzing them

The best use of information technology (IT)

The best location of markets to minimize transportation costs

115. Kaizen is a process used in supply chain networks primarily to achieve:

long-term stability of suppliers.

radical changes in interorganizational processes.

higher profits for the dominant member.

improved performance.

116. Compared to a global strategy, a multicountry strategy would be characterized by:

strategy coordination across countries.

preferred suppliers located in host countries.

major strategic decisions coordinated centrally.

products adapted to local needs.

117. Which of the following product records is internationally recognized for providing detailed categorization and descriptions?

Stock keeping unit (SKU)

Electronic product code (EPC)

Harmonized system classification code

Universal product code (UPC)

118. Which of the following tools is most appropriate to use to determine projects that will achieve the greatest net benefits?

Pareto diagram

Fishbone diagram

Process flow diagram

Operation process chart

119. A warehouse supervisor has discovered a shortage of material to fulfill a customer order.

If the inventory report shows that there should be enough material to fill the order, what should be done next?

Ask the customer to provide safety lead time.

Review service level for the safety stock.

Perform daily inventory counts.

Analyze the root cause of inventory differences.

120. Medium-term demand management projections are used primarily to:

complete strategic business planning of facilities.

complete forecasts at the item level.

aggregate demand for production planning.

develop the master production schedule.

Page 13 of 17

121. An insurance broker is interested in increasing price competition among its carriers.

Which of the following strategies would be an efficient way to enable the price reductions?

Consolidate the market.

Utilize business-to-business (B2B) e-marketplaces.

Automate manual processes.

Establish long-term partnerships.

122. In an advanced planning and scheduling (APS) system, which of the following processes feeds the master schedule?

Purchasing planning

Demand planning

Distribution planning

Fulfillment planning

123. Which of the following outcomes is most likely to result when lot size increases?

Setup costs will increase.

Inventory carrying cost will increase.

Operating expenses will increase.

Total profit will increase.

124. Which of the following warehousing tools enables wireless scanning of products?

Magnetic stripes

Universal product codes

Radio frequency devices

Local area network

125. The primary purpose of implementing supplier relationship management (SRM) is to:

minimize legal contracts.

Identity strategic sources of supply.

enable sole or single sourcing.

streamline the procurement process.

126. Value stream mapping provides the most benefit when:

analyzing customer requirements.

identifying nonvalue-added activities.

planning kaizen events.

implementing an information technology strategy.

127. Supply chains delivering products or services are most able to respond quickly to changing market requirements when:

products have been standardized.

products have a modular design.

production processes have been standardized.

production processes have been simplified.

128. Which of the following tools a appropriate to overall organizational performance?

Supplier scorecard

Benchmarking

Balanced scorecard

Quoted-benefit analysis

129. Which of the following actions is most likely to increase total supply chain risk?

Standardizing components used in a product family

Expanding operations to multiple locations

Consolidating manufacturing locations

Reducing the supplier base for commodity-type components

130. Which of the following sustainability tools is most appropriate for managing environmental compliance with regulatory requirements?

ISO 14000

Global Reporting Initiative (GRI)

ISO 26000

United Nations Global Compact

Page 14 of 17

131. The production scheduler for a bottleneck resource should:

schedule additional preventive maintenance for the resource.

ensure a constant queue of work waiting to be processed.

increase production lot sizes to increase utilization of resources.

implement pull signals for production of the bottleneck resource.

132. The main benefit of a mass customization product design strategy is to:

A. sell high quantities of product to specific customer segments.

B. achieve economies of scale in purchasing components.

C. offer more product variety while keeping inventories low.

D. avoid assembly of finished products.

133. Which of the following forecasting techniques is often used in causal forecasting?

Qualitative

Moving average

Regression

Delphi

134. A company is transitioning its fulfillment strategy from direct consumer shipment to shipping through an intermediary.

Which of the following impacts can be expected?

Higher transportation costs

Higher warehousing costs

Lower transportation costs

Lower warehousing costs

135. To achieve the objective of increased profits, a company that implements supply chain tactics must effectively address the conflicts between inventory investment and:

plant capacity.

sales volume.

lead times.

order-fill rates.

136. A toy company decides to buy more products from an overseas company to reduce costs.

To make sure that goods clear customs more quickly, the company most likely would engage a:

consolidator.

overseas carrier.

shipping association.

freight forwarder.

137. When developing a supply chain strategy, which of the following actions would be used to evaluate the achievement of the long-term goals of a business?

terminal drivers.

Measure performance.

less process variables

Perform benchmarking.

138. Which of the following characteristics typically is required for a collaborative strategic relationship?

High levels of trust

History of successful collaboration

Awareness of cultural differences

Formal contracts defining the relationship

139. A company is considering relocating production to a lower-wage country.

Volatility in which of the following areas most likely would impact profitability without modifying product landed costs?

Labor costs

Currency exchange rates

Commodity prices

Product quality

140. Which of the following responses to risk best describes the evolving concept of flexibility in supply chain risk management?

The practice of adjusting capacities in a manufacturing environment

The ability to react quickly to changes or events while maintaining customer service levels

The ability to produce high volume stock keeping units (SKUs) in multiple locations

The ability to produce complex configurations of a product within the standard lead time

Page 15 of 17

141. A company finds that one of its warehouses is out of capacity to store products. Expanding the physical size of the warehouse is not an option.

The most appropriate solution would be to increase the:

cash-to-cash cycle of slow-moving items.

inventory turn of slow-moving items.

use of break-bulk warehousing.

inventory days of supply of fast-moving items

142. A company exports products to emerging markets.

Which of the following approaches would be used to enhance compliance, minimize risks, and connect supply chain activities?

Logistics network planning

Distribution requirements planning

Supply chain event management

Global trade management

143. A firm experiences a supply chain interruption from a second-tier supplier.

Which of the following actions is the firm likely to take to minimize future interruptions?

Require the supplier to submit weekly cycle count reports.

Require the supplier to implement a sales and operations planning process.

Map the supplier's supply chain to identify risks and opportunities.

Conduct an ISO 14001 audit of the supplier.

144. A global manufacturing is implementing a remanufacturing program to improve its triple bottom line (TBL).

Which dimension of TBL will the new program positively affect?

Ergonomic

Social

Environmental

Employee

145. Which of the following factors is the key determinant of safety stock for finished goods?

Forecast variance

Mean absolute deviation (MAD)

Standard deviation

Desired service level

146. Products that share characteristics of predictable demand and low profit margin will have competition based on which of the following?

Fastest to market

Lowest landed cost

Product improvements

Supply flexibility

147. Which of the following four perspectives are used in the balanced scorecard?

Customer, internal process, workforce learning and growth, financial

Customer, operations, internal process, financial

Customer, operations, internal process, workforce learning and growth

Customer, marketing, operations, financial

148. Which of the following outcomes typically is the primary benefit from implementing a reverse logistics system?

Reducing returns processing costs

Reducing legal costs

Extending the product life cycle

Complying with the SCOR framework

149. An effective procurement strategy for commodity products should focus on:

driving down cost and reducing risk.

spreading purchases equally across suppliers.

selecting primary and alternate sources.

selecting suppliers with value-added products.

150. Inbound logistics is a supply chain management term used for:

receiving, storing, and issuing finished goods to consumers.

activities associated with transforming inputs into final products.

receiving, inventorying, and issuing materials to the production activities.

providing services to customers to maintain the value of the product.

Page 16 of 17

151. Which of the following actions is most appropriate to take with a supplier whose ratings are below the agreed-upon performance levels?

Discuss ways to raise the ratings for the next review period.

Inform the supplier that they are on probation for 3 months.

Place outstanding contracts with the supplier on hold.

Modify the supplier performance expectations.

152. Which of the following outcomes is most likely a result of allocating excess capacity to a chain facility?

Lower utilization which leads to higher cost

Higher utilization which leads to higher cost

High utilization which leads to lower cost

Lower utilization which leads to lower cost

153. A company currently produces custom goods for a limited market. To increase market share, the company will implement a strategy to reduce the number of products it produces and reduce delivery lead time.

The company can increase its chances of achieving the strategy by:

using benchmark data for products in the same product groups.

incorporating results from market surveys.

involving customers in the product design process.

using electronic communications to receive customer complaints.

154. A company is concerned that a component in their product could be harmful if disposed in a landfill.

Which of the following disciplines should they utilize?

Multisourcing

Global strategy

Glocalization

Reverse logistics

155. Which of the following tools has improved management of the customer pipeline?

Third-party logistics (3PL)

Sales force automation (SFA)

Business-to-business (B2B) commerce

Point-sale (POS) metrics

156. When determining lot sizes, consideration should be given to balancing which of the following costs?

Quality costs and product costs

Cost of goods sold (COGS) and indirect labor costs

Unit sales price and unit cost

Ordering costs and carrying costs

157. In the Supply Chain Operations Reference-model (SCOR®), the cash-to-cash cycle time for a manufacturing company is the number of days between which two of the following situations?

Paying for raw materials and getting paid for the product

Shipping the product from the warehouse and receiving it at the customer's location

Paying for raw materials and sending an invoice to the customer

Billing the customer and getting paid for the product

158. Which of the following variables is the most appropriate customer-facing goal used to determine the target inventory level?

Inventory turns

Level of service

Total delivery cost

Delivery lead time

159. A company has recently implemented a vendor-managed inventory (VMI) program with several key suppliers but quality issues are disrupting production.

Which of the following actions would be more effective in dealing with these issues?

Tighten the quality tolerances

Implement a supplier certification program

Implement quality inspection at the receiving dock

Charge back to the supplier the rework and scrap costs

160. Total line-haul costs vary directly with:

weight shipped.

distance shipped.

shipping time.

the number of times a shipment is handled.

Page 17 of 17

161. Which of the following supply chain areas utilize order management cost metrics?

Distribution

Inspection

inbound freight

Commodity management

162. Which of the following factors would typically represent period demand?

National sates projections, on-hand inventory, and product life cycle

Customer orders, product life cycle, and forecasts

On-hand inventory, promotions, and national sales projections

Forecasts, customer orders, and promotions

163. Which of the following measures effectively evaluates overall resources in a distribution warehouse?

Throughput

Cube utilization

Filled pallet positions

Labor efficiency

164. A company that sells engineered-to-order products is planning implementation of a supplier relationship management system (SRM) for direct materials.

Which of the following factors is most likely to make the implementation difficult?

Complexity of the purchasing process

Cost of the application software upgrades

Management of variable lead times

Resistance of material suppliers

165. The most appropriate benchmark for an organization to use to evaluate its supply chain management practices is a firm that:

has a global supply chain.

has a high level of product availability.

has driven down its cost, lead times, and late deliveries.

uses electronic data interchange (EDI) for supply chain information sharing.

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