APICS Certified Supply Chain Professional Exam CSCP Test Questions Online

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People who are seeking in-depth knowledge of their company’s supply chain can pass the Certified Supply Chain Professional (CSCP) exam to prove themselves. The APICS CSCP certification is the first and only supply chain certification that encompasses the end-to-end global supply chain. The real CSCP exam consists of 150 multiple choice questions answered within 3.5 hours. As a computer-based exam available globally, the CSCP exam can be through Pearson VUE. Choose CSCP test questions online to prepare for CSCP exam well. We guarantee that you can complete the CSCP exam smoothly. Below are the APICS CSCP free demo questions.

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1. 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:

customer focus and alignment.

forecast accuracy.

multiple downstream channels.

multiple upstream supply chains.

2. Which of the following corporate strategies is most consistent with a flexible supply chain strategy?

Being the low-price leader

Providing the highest-quality service

Providing mature products with stable sales

Emphasizing the quality of the product

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

sell high quantities of product to specific customer segments.

achieve economies of scale in purchasing components.

offer more product variety while keeping inventories low.

avoid assembly of finished products.

4. A company plans to maximize profitability by charging more for its products at retail locations than on its website.

Which of the following segmentation strategies would best support this plan?

Group

Channel

Regional

Location

5. Companies are more likely to consider the consequences of their product design decisions when they view the reverse supply chain as an extension of the:

forward supply chain.

marketing process.

manufacturing process.

sales and operations planning process.

6. The primary objective of supply chain management is:

minimizing transportation costs.

reducing inventory levels.

taking a systems approach.

implementing advanced technologies.

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

design history.

available capacity.

inventory balance.

warehouse location.

8. A return material authorization (RMA) policy is used in reverse logistics to:

physically transport returned items by using an efficient transportation mode.

minimize the number of returned items by involving product design and demand forecasting.

reduce the cost of returned items by refusing to accept items that should not be returned.

reclaim substantial value from returned items by recycling.

9. Compared to mass-media marketing, customer relationship management has the advantage of allowing the organization to:

compete for customers based on service.

reach a larger number of potential customers.

reduce inventory to improve cash flow.

focus on attracting new customers.

10. Demand management involves which of the following undertakings?

Adjusting capacity to support expected demand

Engaging in activities associated with customer relationship management

Creating higher customer demand by improving performance in areas such as lead time and service levels

Understanding events and managing activities that could influence future demand

Page 2 of 16

11. Maintaining a long-term collaborative relationship with a trading partner requires:

formal and informal communication.

interconnected information systems.

one partner regularly exercising power.

standardized terms of agreement.

12. Which of the following organizational design choices is an example of vertical integration?

Contracting with a third-party logistics provider

Producing components used internally

Externally staffing a customer service center

Awarding a one-time trade show contract

13. A company that produces standardized products and sells them through retailers via a responsive transportation system has decided to expand its sales with an online store for customized products.

Which of the following distribution strategies would be the most appropriate for the business-strategy change?

Local distribution centers serving retailers and online sales

Centralized cross-docking facilities serving retailers and online sales

A centralized distribution center serving retailers and direct shipment from the factory serving online sales

A centralized distribution center serving retailers with transshipment arrangements serving online sales

14. The primary reason for the evolution of the supply chain is:

fewer rejects due to poor quality.

increased on-time delivery.

increased cost savings.

increased communication.

15. The question below is based on the following flowchart:

Which of the following phrases most accurately describes the complete flow of demand information?

From supplier to customer

From customer to manufacturer

From customer to supplier

From supplier to manufacturer

16. In addition to sales history, current customer orders, and forecasted demand, which of the following data sources should be used as part of a demand management process?

Inventory levels

Contractual obligations

Customer profitability

Scheduled marketing activities

17. The most likely benefit of implementing a collaborative transportation management system is:

lower distribution center operating costs.

fewer transportation planners.

less variability in picking and packing time.

less variability in transportation costs.

18. A firm has identified groups of customers based on specific characteristics the customers desire from products and services the firm can provide. Characteristics include lead times, pricing tiers, and service levels.

The firm is engaged in which of the following activities?

Customer differentiation

Order winner segregation

Market segmentation

Channel definition

19. A firm wants to lose customers that don't value the unique products and services the firm offers and to attract and retain customers that want what the firm offers.

Engaging in this activity should allow the firm to:

create a more loyal customer base.

improve customer satisfaction rates.

increase market share.

target higher-profit customers.

20. Which of the following consequences is a result of shipping directly from the point of manufacture to the customer rather than through a distribution network?

Delivery lead times are consistent.

Risk pooling benefits are negated.

Distribution overhead is increased.

Order-fill rate is decreased.

Page 3 of 16

21. The primary reason for a firm to pursue strategic supply chain activities is to:

gain competitive advantage.

reduce costs.

increase productivity.

decrease product lead time.

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

analyze product profitability by market segment.

discontinue the product based on eroding profitability.

provide additional incentives to the sales force.

increase promotional activity across all markets.

23. Using an independent service provider for logistics would be most appropriate in which of the following situations?

A shoe company that wants to penetrate a foreign market

A business that owns plants and warehouses globally

A financial services company that wants to expand its services

A cable television company that wants to add services

24. Which of the following strategies is used primarily for demand planning?

Build-to-order scheduling

Push-pull replenishment

Collaborative planning, forecasting, and replenishment

Vendor-managed inventory

25. Which of the following actions typically would be the first step in implementing the philosophy of customer relationship management?

Creating a customer-centric organization

Developing a map of the customer segments

Documenting the objectives for implementation

Selecting an information technology solution

26. 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.

27. 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

28. Which of the following factors typically is the most significant impediment to implementing collaborative commerce?

Technology barriers

Security

Corporate culture

Return on investment (ROI)

29. 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.

30. Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

Production equipment productivity

Net asset turnover

Value-added productivity per employee

Upside flexibility

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31. An advantage of using a third-party logistics service (3PL) is improved:

on-time delivery of shipments due to higher inventory levels.

cost structure due to economies of scale.

access to smaller markets due to localization.

risk visibility due to inventory consolidation.

32. Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:

wider variety.

shorter lead time.

higher profit margins.

lower sales volumes.

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

Profits are maximized.

Retention of key customers is increased.

Product options are increased.

Transaction costs are decreased.

34. 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.

35. Which of the following situations is an example of postponement?

Shipments are broken down into small groups for reshipment.

Shipments are consolidated immediately for reshipment.

Production begins after a customer order is received.

Partially assembled goods are assembled at a later stage.

36. A manufacturer can simplify the forecasting process by pooling demand forecasts for a product group and then:

averaging total demand and spreading it evenly across all items.

disaggregating demand to the item level based on marketing input.

disaggregating demand to the item level based on historical proportions.

allocating demand to each production site.

37. Which of the following practices has improved management of the customer pipeline?

Reverse auctions

Sales force automation

Finite capacity planning

Point-of-purchase metrics

38. Incorporating supplier input into product and process design helps to:

maintain quality.

stabilize product costs.

reduce time to market.

save costs to the buyer.

39. The use of a seasonal index as a forecasting technique measures the ratio of the:

average seasonal demand to the average demand for all periods.

average demand for all periods to the average seasonal demand.

average seasonal demand to the standard deviation of the demand for all periods.

standard deviation of the seasonal demand to the standard deviation of demand for all periods.

40. Which of the following considerations is an important supply chain design decision?

Product design

Selecting supporting information systems

Identifying labor force requirements

Identifying training programs

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

Modular logistics

Reverse logistics

Mixed model

Lateral

42. A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of its trucks and now purchases transportation services from fleet operators.

This is an example of which of the following strategies?

Selling and leasing back equipment.

Renting equipment on consignment.

Using a third-party logistics provider.

Using an owner-operator fleet.

43. A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns.

The cost savings resulting from increasing inventory turns from four to six would be:

$29,000,000.

$15,750,000.

$10,500,000.

$ 5,250,000.

44. Which of the following benefits of supplier relationship management typically results from collaboration with a few critical suppliers?

Automation of supplier sales activities

Elimination of formal contracts

Reduction in customer and supplier inventories

Standardization of communications

45. A company considers outsourcing its information technology support to a low-cost region on another continent. The company currently has no business presence there.

Which of the following actions is most effective in helping to select a service provider?

Contacting the country's consulate for leads

Contacting the country's local government for recommendations

Visiting several potential providers before making a selection

Finding a trusted local business agent to help in the search

46. After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?

Implement a higher-speed data communications network.

Change procedures so data is communicated more frequently.

Identify the root causes for the delays.

Map and analyze the value stream.

47. Which of the following marketing strategies emphasizes offering services at a lower price than rival services with comparable features?

Cost leadership

Service differentiation

Customer focus

Market responsiveness

48. Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?

Sales and marketing refers to SCOR to improve demand generation.

Production and engineering uses SCOR best practices to design a new "make" process flow.

Distribution and logistics selects suppliers from the SCOR reference list.

Marketing and development incorporates SCOR Level I metrics for new product design.

49. 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.

50. A media company offers a majority of its movies through a specific distributor. The media company is beginning to produce content for a new foreign market to which the distributor has exclusive access.

To maximize savings and gain entry to this new market, the media company should:

create a contract for the new market.

enter into a partnership.

form a strategic alliance.

acquire the distributor.

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51. The value that logistics provides within the supply chain can best be summarized as:

satisfying customer expectations about availability and delivery at an acceptable total cost.

meeting promised location and on-time delivery goals with minimal use of expediting.

establishing inventory and delivery goals with various customers that fulfill the firm's profit objectives.

providing accurate in-transit and delivery information to customers and salespeople.

52. The process of gathering data about what customers need and ensuring that desired features are included in the design and initial planning phase of a new product or service is known as:

a quick response program.

quality function deployment.

total quality management.

early supplier involvement.

53. A main benefit of using customer relationship management (CRM) is:

maximization of on-time delivery.

minimization of product returns.

identification of customers with high lifetime value.

finding new markets for existing products and services.

54. Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

Inventory turnover ratio can be reduced.

Aggregate demand is more accurate than disaggregate demand.

The planning time fence can be adjusted as needed.

The supplier shares some risk for holding inventory.

55. 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.

56. Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?

Reducing the size of the sales force by automating activities

Gaining a better understanding of customer requirements

Implementing automated inter-organizational processes

Focusing sales efforts on the most profitable customers

57. A firm supplies products and services to a wide variety of industries with varying requirements for responsiveness and reliability. Many customers across these industries are not satisfied with the firm’s ability to meet the lead time and on time delivery requirements.

Which of the following tools is most appropriate for the firm to use to improve customer service?

Customer service ratio metrics

Market segmentation

Customer relationship management (CRM)

Supply Chain Operations Reference (SCOR®)

58. 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

59. A large manufacturer wanting to be more competitive in the global market place decided to outsource its transportation and return processing to other companies on a contractual basis.

The companies providing the services would be referred to as:

fourth party logistics providers.

third party logistics providers.

retail services providers.

distribution services providers.

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

Improved transparency of collaboration relationships

Increased performance in balanced scorecard

Reduced inventory levels for key items

Better synchronization of planning and operations

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61. 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.

62. A manufacturer uses standard costing, and a potential supplier uses activity-based costing.

This difference most likely will have implications for which of the following types of future decisions?

Price concessions

Make-or-buy

Distribution warehouse locations

Freight terms

63. The probability of customer dissatisfaction is highest when which of the following conditions exists?

Customer expectations are clearly defined.

Supplier execution is too low.

There is a gap between expected performance and perceived performance.

There is a gap between what was indicated and what was accomplished.

64. Which of the following situations is an example of inventory being held as a way to balance supply and demand?

A manufacturer holds inventory of key components to maintain a level production schedule.

A manufacturer of seasonal products builds finished-goods inventory before the peak selling period.

A distributor maintains safety stock of slow-moving items at a central distribution center.

A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.

65. 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.

66. 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?

Customer segmentation

Customer-facing ordering systems

Customer relationship management (CRM)

Supply Chain Operations Reference (SCOR®)

67. Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?

Sales and marketing refers to SCOR to improve demand generation.

Production and engineering uses SCOR best practices to design a new "make" process flow.

Distribution and logistics selects suppliers from the SCOR reference list.

Marketing and development incorporates SCOR Level I metrics for new product design.

68. 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.

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

Offering a discount on new purchases when used products are returned

Reducing the amount of packaging material used in shipping

Manufacturing products in batches consistent with full-truckload shipments

Batching returns of defective components to the suppliers

70. Which of the following customer relationship management activities most appropriately is used for revenue generation?

Generating customer leads

Generating graphic sales models

Measuring customer preferences

Identifying customer margins

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71. A manufacturer of plastic components that are sold either directly or through distributors wants to identify the requirements of the end customers for each market segment.

Which of the following approaches would be most appropriate?

Analyzing the buying history for each of the market segments

Asking the manufacturer's direct customers

Conducting a market research project

Sending samples of potential future products to the final customers

72. Which of the following forecasting methods relies on the opinions of a panel of experts?

Delphi technique

Survey method

Causal method

Time series analysis

73. Reverse supply chain activity typically peaks nearest the beginning of which of the following stages of the product life cycle?

Introduction

Growth

Maturity

Decline

74. 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?

Internal rate of return (IRR)

Lifetime customer value (LCV)

Net present value (NPV)

Return on investment (ROI)

75. Which of the following levels in a supply chain network represents the most upstream external activity?

Supplier to contractor

Manufacturing to supplier

Customer to distribution

Customer to contractor

76. 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.

77. Which of the following factors typically is most important in successfully implementing sales and operations planning (S&OP)?

Involvement of specialists from all functional groups within an organization

Creation of a dedicated S&OP organizational unit

Involvement and accountability at senior management level

Focus on 3 months to 18 months in the future

78. A company that has consistently achieved a high level of on-time delivery performance has decided to reduce its inventory level significantly.

Which of the following outcomes is the most likely effect of that decision on the company's on time delivery performance?

There will be no effect.

It will decline and then stabilize at a lower level.

It will improve and then stabilize at a higher level.

It will decline until sales erode.

79. 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.

80. The mission of the global reporting initiative (GRI) is to provide a:

comparison of key metrics for companies in the same industries across the globe.

feasible business plan that can be shown to global potential investors.

trusted and credible framework for reports regarding sustainability practices.

transparent collaboration between non-profit organizations and governments.

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81. A company that sells direct to industrial and commercial businesses has become successful by being responsive to the needs of its customers. The company currently produces in each country all of the products it sells in that country. Several countries in which the company operates have negotiated an agreement to establish a trading bloc.

Which of the following actions by the company would be most appropriate if the agreement is implemented?

Consolidate production outside the trading bloc to reduce total costs.

Consolidate production within the trading bloc to reduce tariffs paid.

Outsource the production of products with low sales volumes to reallocate capacity.

Reassign products so that each is produced in a single facility within the trading bloc to get economies of scale.

82. A firm is undertaking a revision of its financial metrics to make them more comprehensive and has decided to use metrics such as return on investment (ROI), return on assets (ROA), and economic value added (EVA).

This is an example of utilizing which of the following types of metrics?

Activity based

Stakeholder focused

Financial sustainability

Value chain

83. 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

84. A company's supply chain depends heavily on sourcing from international suppliers. Conditions increasingly threaten supply continuity.

Which of the following actions is most appropriate?

Source from domestic suppliers.

Conduct a risk assessment.

Carry additional safety stock.

Spread logistics across multiple carriers.

85. 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

86. Distribution from which of the following types of sites enables goods to enter a country, undergo further modification, and then be exported without paying customs duties?

Public warehouse

Value-added territory

Free trade zone

Customs clearing house

87. Benchmarking a firm's performance against industry competitors is most valuable because it can reveal:

a competitor's manufacturing processes.

a firm's leadership ranking relative to industry peers.

which processes require improvement.

that no further improvement is possible.

88. Direct shipment distribution typically offers which of the following advantages?

Risk pooling is facilitated.

Demand variability is reduced.

Service levels are increased.

Lead times are reduced.

89. It is most appropriate to measure spending per customer as a proportion of profitability during which of the following phases of a supplier/customer relationship?

Customer acquisition

Customer retention

Customer dependency

Strategic customer care

90. A company is formally adhering to the principles of the UN Global Compact. After a review of their supply chain, they have found that a key supplier is in violation of the compact.

The best action for the company to do first is:

do nothing. The company is not responsible for compliance of suppliers.

replace the supplier as soon as possible with a compliant supplier.

notify the supplier of non-compliance.

require the supplier to become compliant.

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91. A company that is focused on customer relationship management is most likely to take which of the following actions for customers who have been profitable over time?

Reduce the cost of serving them.

Target them for higher margin services.

Target them for greater attention.

Charge them for administrative services used.

92. 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

93. An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in:

prices to the end user.

supply chain cost of sales.

the manufacturer's inventory.

the total supply chain inventory.

94. A manufacturer is the leader of a group of trading partners that are collaborating to improve customer service levels and profitability.

Which of the following methodologies would be most appropriate for synchronizing supply and demand across the supply chain?

Sales and operations planning

Distribution requirements planning

Supply Chain Operations Reference-model

Supply chain event management

95. A company ships from its manufacturing facilities directly to its warehouses.

If the number of warehouses increases, transportation costs between manufacturing facilities and warehouses most likely will:

increase.

decrease.

not change.

become less predictable.

96. Bar codes and radio frequency identification systems are key technologies in supply chain systems because they perform which of the following functions?

Tracking truck locations on cross-country deliveries

Facilitating timely and accurate data acquisition

Providing paperless invoicing of goods

Producing schedule broadcasts for suppliers

97. 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

98. 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.

99. A corporation must consider which of the following factors when selecting its enterprise resources planning system?

Uniqueness of operations

Corporate profitability

MRP and MRP II processing

Industry benchmarks

100. Managing supply chain risks includes which of the following activities?

Developing alternatives to key suppliers

Setting aside funds for disruption-recovery efforts

Charging each supply chain partner a portion of risk cost

Creating extra inventory to cover disruptions in the supply chain

Page 11 of 16

101. 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.

102. The globalization of a supply chain typically increases uncertainty and:

production lead time.

local competition.

documentation complexity.

product standardization.

103. Which of the following strategies would increase overall supply chain risk?

Single sourcing a product that makes the highest annual profit

Outsourcing a product that is not well suited to your operations

Identify multiple sources for a product that has a potential for supply chain disruption

Internally manufacturing a product that has a high level of technical intellectual property

104. A manufacturer offers a trade-in allowance on a new machine when the customer returns the old machine. The manufacturer reconditions the returned machine locally and then sells it on the used market for a profit.

This program is an example of a focus on:

environmentally sensitive engineering.

gray box design.

green manufacturing.

sustainability in operations.

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

Direct shipment

Cross-docking

Mass customization

Flexibility

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

Throughput

Cube utilization

Filled pallet positions

Labor efficiency

107. A company originally based in Germany sets up companies in India, China, Vietnam, Mexico, and Brazil. It sources most of the raw materials locally and employs the local workforce to manage and produce finished goods. Most of the goods produced are consumed in the same country.

The company can be classified as what type of enterprise?

Globally integrated

Domestic

Multinational

Virtual

108. The most important challenge to consider when sourcing globally is:

the identification of sources capable of producing the materials.

the availability of low-cost labor and energy.

complying with specific import/export issues.

balancing the difference between piece price and total cost.

109. Potential customers of a company's new product have tight tolerance requirements. The company plans to purchase a critical component.

To meet customer requirements, the company should first:

implement statistical process control for the component.

bring manufacturing of the critical component in-house.

develop an alternate source of supply.

certify the supplier of the component.

110. 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

Page 12 of 16

111. The best way to manage a business relationship is to measure performance to:

cost of ownership metrics.

quality targets.

on-time delivery.

agreed-upon metrics.

112. When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements?

Loyalty

Scoring

Segmentation

Prospecting

113. Customizing can be an effective warehousing strategy because it allows a company to:

allocate available storage space to optimize handling costs.

address trade-offs between space and material handling needs.

effectively design its inbound and outbound dock areas.

add value to the product through modification, labeling, and packaging.

114. Implementation of supply chain applications based on which of the following technologies is most likely to have the lowest fixed costs?

Best of breed packages

One integrated package

Service-oriented architecture

Software-as-a-service

115. The customer who provides point-of-sale data remains the sole decision-maker regarding order quantities when what type of inventory strategy is used?

Continuous replenishment

Advanced continuous replenishment

Vendor-managed replenishment

Quick response

116. Which of the following actions would be most appropriate for an enterprise that has successfully integrated internal supply chain management systems and functions?

Focusing on reducing setup times

Implementing a firewall to limit access to supply and demand data

Working with key suppliers to reduce costs and lead times

Working with trading partners to reduce channel redundancies

117. 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.

118. 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.

119. When an importer and manufacturer are operating in a free trade zone, payment of a customs duty is triggered when products are:

returned.

assembled.

stored.

distributed.

120. The transportation manager at a consumer goods manufacturer has decided to begin shipping full truckload rather than less-than-truckload quantities.

Which of the following outcomes is likely following implementation of this decision?

Inventory levels at the manufacturer will decrease.

Lead times as seen by the customer will increase.

Production efficiencies at the manufacturer will increase.

Transportation costs as seen by the customer will increase.

Page 13 of 16

121. 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

122. Which of the following statements about the use of bar code labels for product identification in the supply chain is true?

They have been replaced by radio frequency identification tags.

They can be read by devices 1 to 3 meters from the item.

They facilitate the capture of information about the location of items.

Each of the trading partners must apply a unique label.

123. 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

124. What is the primary benefit of using modular rather than integral designs?

Lower cost of manufacturing

Increased product performance

Greater responsiveness in marketing and production

Reduced complexity of bills of material

125. 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.

126. The process used to determine the impact of promotions, price discounts, and rebates on demand forecasts commonly is referred to as demand:

planning.

forecasting.

aggregating.

shaping.

127. Inventory parameters established using analytic inventory techniques typically are based on balancing:

supply and dependent demand.

customer service and inventory costs.

transportation and warehousing costs.

inventory levels and decision-making costs.

128. 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.

129. 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

130. The social dimension of sustainability typically would be addressed when developing and implementing policies regarding:

accounting practices.

biodiversity protection.

conflicts of interest.

waste reduction.

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

Purchasing planning

Demand planning

Distribution planning

Fulfillment planning

132. Which of the following activities typically would be an appropriate application of the ISO 31000 Risk Management Principles and Guidelines?

Calculating a risk index for each facility

Establishing external risk communications processes

Projecting the ability of a facility to recover from an event

Preparing for risk management accreditation

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

Magnetic stripes

Universal product codes

Radio frequency devices

Local area network

134. A company closely monitors supplier performance and notices recent late deliveries from one supplier. The supplier discloses flood damage at the plant. The company quickly shifts sourcing to a new supplier and has minimal loss of sales.

Which of the following risk strategies reflects the company's actions?

Achieving low cost through reaction

Creating an adaptive supply chain community

Reducing supply chain vulnerability

Investing in redundancy

135. Component commonality in manufacturing primarily allows a company to:

optimize production runs for the components.

use less-specialized machinery.

decrease single-minute exchange of die processes.

increase planning and control.

136. A manufacturer of consumer packaged goods with a single plant and nine regional distribution centers is considering reducing the number of distribution centers in its system.

Reducing the number of distribution centers most likely will reduce fixed warehousing and the cost of:

storing cycle inventory in the distribution centers.

storing finished-goods inventory at the manufacturing plants.

transportation from the distribution centers to the customer.

transportation from the plant to the distribution centers.

137. A company wants to implement a system for managing environmental compliance with legislative and regulatory requirements.

Which of the following sustainability tools is most appropriate?

ISO 14000

Global Reporting Initiative (GRI)

ISO 26000

UN Global Compact

138. Which of the following outcomes occurs when direct shipping is used instead of a distribution network?

Outbound transportation cost is reduced.

Inventory velocity is reduced.

Order-fill rates are reduced.

Inventory obsolescence is reduced.

139. What are the steps in the supplier relationship process?

Measure, fulfill, document, model

Source, document, manage

Measure, procure, fulfill, model

Source, procure, fulfill, manage

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

Distribution requirements planning

Sales and operations planning

Rough-cut capacity planning

Production activity control

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141. 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.

142. When doing international business, a company's total line-haul costs will vary with the:

weight shipped.

distance shipped.

pallets shipped.

volume shipped.

143. Which of the following ISO standards is used to assist organizations with sustainable development?

ISO 31000

ISO 14001

ISO 26000

ISO 9001

144. 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.

145. A company's product cannot be sold beyond 12 months from the date of manufacture. The product contains hazardous material and must be returned to the factory to be neutralized.

This situation is an example of product:

reuse.

remanufacturing.

recovery.

refurbishing.

146. A company produces and distributes a family of soft drinks in a single country. It has developed and will introduce a new family of soft drinks for weight- and health-conscious individuals. There currently are no competitors with nationwide distribution for this category of soft drinks.

Which of the following supply chain strategies would be most appropriate for the two product families?

Produce both product families to forecast and push through the distribution system.

Produce both product families only after receipt of a distributor order.

Produce the current product family to forecast and the new product family to order.

Produce the current product family to order and the new product family to forecast.

147. Which of the following actions is in accordance with the Ten Principles in the United Nations (UN) Global Compact?

Preventing a group of employees from forming a collective bargaining (union) group

Paying different wages in different parts of the world for a given job classification

Requiring an individual to pay a fee for consideration in hiring or promotion decisions

Withholding certain employment opportunities from specific groups of people

148. 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.

149. The United Nations Global Compact uses 10 guiding principles to:

reduce uncertainty for multinational firms regarding legal, import/export, labor, and environmental standards across countries.

set minimum levels of compliance across a broad range of transactional areas for businesses operating in multiple geographic regions.

align the needs of businesses to increase profitability and the needs of individual countries to ensure their specific legal requirements are met.

help ensure that markets, commerce, technology, and finance promote advancement of economies and societies everywhere.

150. Which of the following metrics is the most appropriate measure of the availability of products to ship in a make-to-stock environment?

Backlog level

Fill rate

Perfect order percentage

Average customer order lead time

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151. One key factor to consider when selecting suppliers for their potential to sustain long-term, mutually profitable relationships is:

landed cost.

quality metrics.

operational performance.

financial viability.

152. In which of the following logistics structures does the flow of products typically proceed through an established arrangement of firms from origin to destination?

Direct

Combined

Echelon

Indirect

153. Which of the following actions by a group of trading partners is most likely to quickly improve their economic performance?

Developing a comprehensive product and service strategy

Implementing collaborative interorganizational systems

Outsourcing interorganizational business processes

Redesigning product packaging to reduce volume and weight

APICS Certified Supply Chain Professional Exam CSCP Test Questions Online

APICS Certified Supply Chain Professional Exam CSCP Test Questions Online

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