Latest APICS CSCP Dumps Questions - Pass Exam With Ease [2023]

Latest APICS CSCP Dumps Questions – Pass Exam With Ease [2023]

Jonnie Karnath2023-04-07T08:07:57+00:00

APICS CSCP dumps questions are designed to help you pass the Certified Supply Chain Professional exam with ease. It covers all the topics and concepts that you need to know to pass the exam. They are designed by industry experts who have in-depth knowledge of the subject matter and can provide you with the most relevant and accurate information. Using APICS CSCP dumps questions will give you a realistic exam experience, as the questions are similar in format and difficulty to the actual exam questions. This will help you prepare better for the exam and reduce exam anxiety. By using these APICS CSCP dumps questions, you can increase your chances of passing the exam on your first attempt.

Page 1 of 16

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

maintain quality.

stabilize product costs.

reduce time to market.

save costs to the buyer.

2. A company that has selected the hybrid production method has multiple alternatives for the timing of activating and deactivating capacity.

The inventory carrying costs and which of the following categories of costs would typically be relevant in the analysis of the alternatives?

Strategic sourcing

Capital tooling

New employee training

Fixed plant

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

Introduction

Growth

Maturity

Decline

4. Which of the following circumstances best describes a roadblock to implementing customer relationship management (CRM)?

Lack of strategic alignment and integration within the organization

Limited defined industry standards

Deterioration of customer service levels

Increased access to information for supply chain partners

5. 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.

6. 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.

7. Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?

Use a more rapid transportation mode.

Increase safety stock.

Extend product warranty.

Employ lean principles.

8. Which of the following entities assumes ownership of goods once loaded on an ocean vessel using Incoterms® freight on board (FOB)?

The carrier

The buyer

The seller

The insurer

9. Which of the following strategies can be used to help mitigate negative effects of events that rarely occur?

Adaptive supply chain community

Revenue-sharing contract

Global optimization

Continuous replenishment

10. A firm has increased finished-goods inventories for several products to compensate for increased variability in demand. The firm analyzed shipment data and determined that the variability was due to a few customers placing large orders for single shipments to obtain discounts.

Which of the following actions is the firm most likely to take to maintain sales and reduce variability in demand?

Reducing discounts for large orders

Encouraging high-volume customers to place blanket orders

Implementing extrinsic forecasting methods

Increasing the level of safety stock on high-volume products

Page 2 of 16

11. Variation in upstream requirements can be reduced by increasing:

demand visibility.

production capacity.

product features.

safety stock.

12. 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

13. A company considers moving a portion of its production to a distant country to support a major customer.

Which of the following actions is most effective in mitigating the risk of financial loss in the event of a global economic downturn?

Expanding the customer base globally

Reducing the global work force

Reducing prices of all products

Adding features for all products

14. Which of the following reasons it often why many companies fail ' to achieve the implementation benefits of reverse logistics?

Many lop managers fad to have a good grasp of the cost and benefits of returns

Often too much time passes between a product sale and a return

The quality issues surrounding returns are too difficult to assess.

Transportation costs tor returns are uncertain and usually higher than for sales

15. 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.

16. Which of the following benefits should a supplier expect to receive by becoming a certified supplier?

Reduction in redundant processes with buyer

Increase in price of items sold

Increase in access to competitive information

Reduction in number of items utilizing vendor-managed inventory (VMI)

17. Transforming company policies into objectives and specific goals creates a:

performance standard.

organizational benchmark.

supply chain metric.

balanced scorecard.

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

Event logging

Demand planning

Market segmentation

Market research

19. 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

20. Effective data acquisition for supply chain management requires:

establishment of market standards for forecasting accuracy.

establishment of a six-segment matrix classifying function and innovation.

identification of products that have market predictability.

identification of the proper supply chain profile for the product type.

Page 3 of 16

21. 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.

22. 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

23. 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

24. 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

25. Which of the following techniques require close coordination between product and process design?

Concurrent engineering

Sequential engineering

Priority planning

Voice of the customer (VOC)

26. A company's competitive advantage is product differentiation. The company has multiple new products with unique features targeted to various customer groups. It plans to sell its products via retail channels and online.

One of the activities the company should focus on first when determining inventory levels for each product is:

identifying and documenting each market segment's need.

planning equivalent inventory levels for each product.

setting price points for each product.

determining inventory levels at retail outlets.

27. Cash-to-cash cycle time is a measure of a firm’s:

responsiveness to customer’s requirements

working capital utilization

agility to meet changing customer requirements

total supply chain accounts receivable

28. 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

29. Customer demand is 120 units per week. The company works on a 9-hour shift per day, 5-day per week basis. Each shift has a ½-hour lunch break and two 15-minute coffee breaks. The cycle time is 12 minutes.

To meet demand, production must occur at the rate of one unit every:

12 minutes.

20 minutes.

22.5 minutes.

28 minutes.

30. Which of the following actions would be the most practical for a supply chain manager to take in the handling of conflict minerals?

Keep track of the lot number at factory floor.

Maintain a relationship with the raw material supplier.

Conduct a reasonable country of origin inquiry.

Disclose distribution channel and transportation tactics.

Page 4 of 16

31. Which of the following activities is critical to successful synchronization of supply and demand throughout a supply chain?

Sharing demand information

Placing large orders to obtain lower prices

Reducing the number of deliveries

Maintaining increased inventories

32. 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.

33. In a service environment, a decrease in demand over the long term will most likely result in:

decreased cost of service.

increased cost of service

decreased cycle time.

Increased cycle time.

34. Which of the following strategies is most appropriate for managing unknown risks in a global supply chain?

Vertical integration

Technology integration with suppliers

Investing in redundancy

Strengthening supplier relationships

35. Which of the following circumstances must exist to implement a warehouse management system (WMS)?

The warehouse must utilize a random location system

The facility must be able to put away product and identify the physical product location

The facility must have implemented radio frequency identification (RFID)

The warehousing and enterprise resources planning (ERP) systems must directly interact

36. A supervisor knows that employees have good ideas for improving department operations but are hesitant to share them.

Which of the following tools would be most appropriate for encouraging the employees to participate in identifying opportunities?

Tree diagram

Pareto chart

Process map

Affinity diagram

37. 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.

38. A benefit of using radio frequency identification (RFID) instead of bar coding would be:

lower cost

decreased cycle count requirements

the ability to read multiple items

the ability to locate an individual item in a warehouse

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

A legal agreement

Mutual trust

Mutual need

Financial dependency

40. Which of the following actions is most likely to improve the flow of funds between a group of supply chain partners?

Increasing the level of information sharing and collaboration

Negotiating a single set of terms for the trading partners

Increasing a partner’s cash-to-cash cycle time

Selecting a single currency for all group transactions

Page 5 of 16

41. A large bicycle company has outsourced manufacturing and needs to respond immediately to any logistics problems in the supply chain.

The best technological solution to meet this need is:

enterprise resources planning.

supply chain event management.

supplier relationship management.

a transportation management system.

42. Which of the following metrics is the most appropriate measure of supply chain responsiveness?

Order fulfillment lead times

Percentage of orders delivered on time

Retail inventory days of supply

Upside production flexibility

43. 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.

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

brand.

product.

customer.

region.

45. Value stream mapping provides the most benefit when:

analyzing customer requirements.

identifying nonvalue-added activities.

planning kaizen events.

implementing an information technology strategy.

46. Which of the following statements best identifies the value of using a supplier rating system?

It provides an objective means for a company to determine outstanding suppliers.

It allows customers to post chargebacks to suppliers.

It offers a company an effective way to control suppliers' delivery processes.

It ensures that all suppliers are using the same quality standards to manufacture products.

47. 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

48. 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.

49. A sales and marketing directory who wants to transform a company into a customer-driven organization most likely would consider:

Allowing customers to use their preferred channels to interact will the company.

Implementing an independent system to capture customer data

initiating a social media presence.

focusing product design on manufacturing strengths

50. In an assemble-to-order manufacturing environment, the master production schedule is typically the schedule of:

resources.

customer orders.

components and subassemblies.

the final assembly.

Page 6 of 16

51. The six sigma approach to quality focuses on increasing customer satisfaction by:

increasing efficiency

reducing variability

reducing waste

simplifying processes

52. For an item with high profit impact and low supply risk, what would be a likely procurement strategy to support the overall supply strategy?

Ensure supply, even at a premium cost.

Vertically integrate the supply chain.

Exploit purchasing power and minimize cost.

Form a strategic sourcing group.

53. 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

54. 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.

55. 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

56. Which of the following tools would help a team of operators to prioritize causes of equipment failures?

Brainsforming

Control chart

Pareto chart

Process flowchart

57. Which of the following processes enables joint planning of key supply chain activities?

Vendor-managed inventory (VMI)

Supply chain event management (SCEM)

Distribution requirements planning (DRP)

Collaborative planning forecasting, and replenishment (CPFR)

58. 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.

59. The primary reason for having supply contracts appropriate for make-to-stock (MTS) and make-to-order (MTO) business environments is consideration of:

quality.

revenue.

risk.

market share.

60. Which of the following costs is an example of carrying cost?

Training

Transportation

Warehouse rent

Inspection labor

Page 7 of 16

61. A manufacturer experiences frequent changes in product technology and market preferences, resulting in new product introductions each year.

Which of the following sourcing strategies would be most appropriate?

Sole sourcing

Multiple sourcing

Long-term contracting

Strategic partnering

62. Which of the following types of data most likely will be communicated between two parties who have formed a strategic alliance?

Stochastic

Proprietary

Bill of material (BOM)

Product specifications

63. 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.

64. 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.

65. 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

66. 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.

67. 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.

68. 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

69. 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

70. When developing an environmentally responsible purchasing program, which of the following alternatives should be considered?

Proximity of skilled labor

Transportation impact

Infrastructure development

Regional market share

Page 8 of 16

71. 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.

72. The purpose of price differentiation is to:

reduce sales variability.

clear out inventories.

increase total revenue.

increase customer loyalty.

73. 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

74. 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.

75. 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®)

76. 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

77. 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.

78. A shipping company investing to reduce damages due to weather conditions is an example of:

risk tolerance.

risk exposure.

risk mitigation.

risk resilience.

79. The European Union (EU) is an example of:

globalization.

country-to-country commerce.

a nongovernmental organization (NGO).

a trading bloc.

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

Outsourcing noncore business activities

Reducing the number of stock keeping units (SKUs)

Reducing lead time

Increasing factory inventory

Page 9 of 16

81. An information technology system that couples enterprise resources planning and an advanced planning system would be most appropriate for which of the following types of business operations?

Multiple plants in multiple industries

Multiple plants in the same supply chain

Multiple supply chains of different products

Multiple supply chains of the same product

82. 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

83. 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.

84. 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.

85. Which of the following considerations are essential to a company’s advanced supply chain strategy that utilizes cloud computing?

Understanding the history and evolution of supply chain technologies

Understanding the complexity of information services configuration

Understanding the content and scope of a company’s cloud implementation

Understanding the product offering of local and global internet service providers (ISPs)

86. 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.

87. 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

88. The most useful inventory costing method which enables purchase price variance analysis is:

average costing.

standard costing.

last in first out (LIFO) costing.

first in first out (FIFO) costing.

89. 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.

90. 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

Page 10 of 16

91. Activity costing (ABC) is an example of:

Generally accepted accounting principles.

Inventory classification system.

Asset cost estimate technique.

Cost allocation technique.

92. Which of the following principles is included in the United Nations (UN) Global Compact?

Trading blocs

Anti-corruption

Risk management

Accounting standards

93. 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.

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

Business case

Work breakdown structure

Project management plan

Proposed solutions

95. Returning product containing hazardous material to the factory to be neutralized after its expiration date is an example of product:

reuse.

remanufacturing.

recovery.

refurbishing.

96. 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.

97. Which of the following consequences are primary objectives in network design?

Improve service level and increase revenue.

Improve service level and reduce inventory cost.

Increase market share and revenue.

Reduce inventory cost and increase market share.

98. Which of the following statements defines the function of the bill of lading (B/L)?

A document that itemizes freight charges and receipt of freight services

A legally binding contract between the shipper and the buyer

A document that replaces the terms of agreement on the purchase order so that the driver can take possession of the freight

A legally binding document providing the driver and the carrier all the details needed to process the freight shipment

99. Which of the following actions typically is most important when building a collaborative supply chain?

Investing sufficient capital

Building mutual trust

Integrating information systems

Developing a common culture

100. A company has an asset turnover ratio of 1.8, inventory of $3,000, a 20% profit margin, and $5,000 in total assets.

What is the total sales volume for the company?

$5,400

$9,000

$15,000

$25,000

Page 11 of 16

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

Distribution

Inspection

inbound freight

Commodity management

102. Replacing a raw material in a manufacturing process with an alternate material that reduces emissions is an example of using:

the global reporting initiative e (GRI).

recycling.

rework.

life cycle assessment (LCA).

103. 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.

104. Which of the following factors typically is most important to a company that uses the chase production strategy when evaluating potential suppliers for a component?

Supplier’s agility

Supplier’s certification status

Quoted delivery time

Quoted total price

105. A company's strategic plan includes marketing products in countries that have environmental laws covering complete product life cycles.

The most appropriate practice to ensure compliance in these countries is implementation of:

environmentally responsible manufacturing.

environmental scanning.

value stream analysis.

logistics social responsibility.

106. 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.

107. Bullwhip effect can be reduced by which of the following combinations of actions?

Information sharing, batch ordering, variable pricing

Shortage gaming, frequent ordering, consistent pricing

Information sharing, frequent ordering, variable pricing

Information sharing, frequent ordering, consistent pricing

108. Which of the following activities is an aspect of proper demand management?

Prioritizing shop orders to meet demand

Facilitating the use of resources to meet demand

Using demand to calculate takt time

Considering all sources of demand

109. Supply chain disruption avoidance measures typically are based on distinguishing:

common and special causes of variation.

supplier issues from distribution issues.

planned events from unplanned events.

certified trading partners from other trading partners.

110. 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.

Page 12 of 16

111. A manufacturing company has several inexpensive items that are critical to the production process. The supply of these items has been depleted several times.

Which of the following actions is most likely to reduce stockouts?

Assign personnel to manage the items.

Standardize the items.

Increase minimum inventory levels for the items.

Initiate a vendor-managed inventory (VMI) program for the items.

112. 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

113. 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

114. 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

115. 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

116. A company planning to build collaborative relationships with trading partners should first:

implement technology for information sharing.

document transaction rules and procedures.

organize cross-enterprise teams.

ensure commitment from top management.

117. 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.

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

Measure, fulfill, document, model

Source, document, manage

Measure, procure, fulfill, model

Source, procure, fulfill, manage

119. A master production schedule serves a company best by functioning as a:

dispatch list.

forecast system buffer.

priority planning tool.

supplier scheduling system.

120. 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.

Page 13 of 16

121. 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

122. 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.

123. A company has designed its supply chain so that financial losses in one part of the supply chain will be offset by gains in another part.

The company is employing which of the following strategies to address global risk?

Speculation

Flexibility

Product shifting

Hedging

124. 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

125. The design process by which a firm structures and manages the supply chain to achieve optimization is called:

an information network.

network planning.

smoothing.

logistical planning.

126. 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)

127. 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.

128. 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

129. 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

130. The Global Reporting Initiative (GRI) is intended to:

track the country's general business practices for country-to-country comparisons.

provide guidance on best practices for preparing a sustainability report.

allow for appropriate tariffs and fees for cross-border shipments.

establish the minimum standards that a firm should achieve for best-in-class.

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131. Which of the following objectives is the primary driver in the design and implementation of lean process management?

Reducing the level of inventory

Decreasing the cash-to-cash cycle

Integrating processes between departments

Satisfying customer requirements

132. A company recently faced an increase in backorders. The company’s marketing department recently ran a sales promotion. The purchasing and planning departments were not aware of the promotional activity.

Which of the following processes will help to solve this type of problem in the future?

Sales and operations planning (S&OP)

Advanced planning and scheduling (APS)

Supplier relationship management (SRM)

Customer relationship management (CRM)

133. 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.

134. 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

135. 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

136. 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.

137. Which of the following objectives is emphasized most in an integrated logistics strategy?

Lowest transportation cost

Lowest total cost

Optimal warehouse location

Improved third-party logistics (3PL) collaboration

138. In a supply chain network, the distribution center (DC) provides which of the following functions for the factory?

Obsolete inventory location

Substitute producer

Buffer from customer demand

Source of supply

139. A group of trading partners that produce and distributes supplies to commercial and industrial customers has decided to pursue competitive advantage by being responsive to customers’ needs.

The most appropriate positioning of safety stock to support this initiative would be at:

a central warehouse for each market segment.

the distribution centers (DCs) closest to the customers.

each node in the distribution channel.

each production facility.

140. 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.

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141. The use of break-bulk warehouses allows for reduced transportation costs by receiving:

large shipments and arranging for distribution to locations as smaller shipments.

sorting multiple receipts for outgoing shipments based on final destination.

converting individual pallets of goods into truckloads (TLs).

staging products for delayed delivery to customers.

142. Which of the following practices allows each process to operate at maximum efficiency rather than having the speed of the entire process constrained by the slowest operation?

Theory of constrains (TOC)

Supply/demand balancing

Decoupling

Pull production

143. 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

144. Companies with manufacturing facilities in one country are more cost-competitive in exporting goods to world markets when:

the local currency is strong.

the local currency is weak.

the local currency is stable.

the local currency is pegged to the target market.

145. 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

146. 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

147. 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.

148. 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

149. Production of a company’s highest profit items is dependent upon the purchase of high-quality circuit boards.

Which level of collaboration should the company develop with their supplier?

Pull replenishment

Strategic partnership

Revenue sharing

Vendor-managed inventory (VMI)

150. Which of the following statements describes a continuous replenishment strategy in a retail environment?

Retailers make replenishment decisions.

Retailers prepare individual orders and share sales data with vendors to improve customer service.

Vendors use sales data and prepare shipments to maintain the desired level of inventory.

Vendors take full control of inventory policy.

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151. 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.

152. When a company works on controlling stockout frequency, the company is addressing which of the following attributes of customer service?

Availability

Delivery time

Service reliability

Service recovery

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

Reverse auctions

Sales force automation

Finite capacity planning

Point-of-purchase metrics

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