CSCP_questions bank.pdf

CERTIFICATIONS We provide the latest IT certification practice exams in a variety of formats and for all types of IT professionals. Our commitment to get you certified in the shortest and easiest way is evident in the quality of our products. Our state-of-the-art Test Engine Software simulates the r...

CERTIFICATIONS We provide the latest IT certification practice exams in a variety of formats and for all types of IT professionals. Our commitment to get you certified in the shortest and easiest way is evident in the quality of our products. Our state-of-the-art Test Engine Software simulates the real exam environment and are available for: Windows (.EXE), Android App (.APK) and eReader (eBook) formats. These questions and answers will help you pass your certification exam on your first try or we refund your MONEY in full. Xcerts Certifications [email protected] | https://Xcerts.com APICS CSCP Certified Supply Chain Professional CSCP QUESTION: 1 The question below is based on the following flowchart: Which of the following phrases most accurately describes the complete flow of demand information? A. From supplier to customer B. From customer to manufacturer C. From customer to supplier D. From supplier to manufacturer Answer(s): C QUESTION: 2 The focus of collaborative supply chain management differs from a transactional approach by its emphasis on the: A. transportation of goods to the next link in the chain. B. flow of product information up to the next level of the chain. C. flow of demand information and cash up the chain. D. flow of supply into an organization. Answer(s): C QUESTION: 3 Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference- model (SCOR)? A. Sales and marketing refers to SCOR to improve demand generation. B. Production and engineering uses SCOR best practices to design a new "make" process flow. C. Distribution and logistics selects suppliers from the SCOR reference list. D. Marketing and development incorporates SCOR Level I metrics for new product design. Answer(s): B https://Xcerts.com 2 CSCP QUESTION: 4 The primary objective of supply chain management is: A. minimizing transportation costs. B. reducing inventory levels. C. taking a systems approach. D. implementing advanced technologies. Answer(s): C QUESTION: 5 Which of the following levels in a supply chain network represents the most upstream external activity? A. Supplier to contractor B. Manufacturing to supplier C. Customer to distribution D. Customer to contractor Answer(s): A QUESTION: 6 Which of the following marketing strategies emphasizes offering services at a lower price than rival services with comparable features? A. Cost leadership B. Service differentiation C. Customer focus D. Market responsiveness Answer(s): A QUESTION: 7 The primary reason for the evolution of the supply chain is: A. fewer rejects due to poor quality. B. increased on-time delivery. C. increased cost savings. D. increased communication. Answer(s): D QUESTION: 8 https://Xcerts.com 3 CSCP Which of the following factors typically is the most significant impediment to implementing collaborative commerce? A. Technology barriers B. Security C. Corporate culture D. Return on investment (ROI) Answer(s): C QUESTION: 9 Compared to a global strategy, a multicountry strategy would be characterized by: A. strategy coordination across countries. B. preferred suppliers located in host countries. C. major strategic decisions coordinated centrally. D. products adapted to local needs. Answer(s): D QUESTION: 10 Which of the following corporate strategies is most consistent with a flexible supply chain strategy? A. Being the low-price leader B. Providing the highest-quality service C. Providing mature products with stable sales D. Emphasizing the quality of the product Answer(s): B QUESTION: 11 Which of the following considerations is an important supply chain design decision? A. Product design B. Selecting supporting information systems C. Identifying labor force requirements D. Identifying training programs Answer(s): B QUESTION: 12 When designing a supply chain for strategic advantage, a company first should consider: https://Xcerts.com 4 CSCP A. the impact on customers using Just-in-Time manufacturing. B. the financial stability of suppliers. C. matching the supply chain to product type. D. whether to use custom or standard parts. Answer(s): C QUESTION: 13 Supply chains delivering products or services are most able to respond quickly to changing market requirements when: A. products have been standardized. B. products have a modular design. C. production processes have been standardized. D. production processes have been simplified. Answer(s): B QUESTION: 14 Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions? A. Inventory turnover ratio can be reduced. B. Aggregate demand is more accurate than disaggregate demand. C. The planning time fence can be adjusted as needed. D. The supplier shares some risk for holding inventory. Answer(s): B QUESTION: 15 The purpose of continuous improvement in the supply chain is to: A. eliminate the root causes of problems. B. improve interorganizational communication. C. develop better written procedures. D. reduce product costs. Answer(s): A QUESTION: 16 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? A. Implement a higher-speed data communications network. https://Xcerts.com 5 CSCP B. Change procedures so data is communicated more frequently. C. Identify the root causes for the delays. D. Map and analyze the value stream. Answer(s): C QUESTION: 17 Which of the following situations is an example of postponement? A. Shipments are broken down into small groups for reshipment. B. Shipments are consolidated immediately for reshipment. C. Production begins after a customer order is received. D. Partially assembled goods are assembled at a later stage. Answer(s): D QUESTION: 18 Which of the following situations is an example of inventory being held as a way to balance supply and demand? A. A manufacturer holds inventory of key components to maintain a level production schedule. B. A manufacturer of seasonal products builds finished-goods inventory before the peak selling period. C. A distributor maintains safety stock of slow-moving items at a central distribution center. D. A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales. Answer(s): B QUESTION: 19 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: A. $29,000,000. B. $15,750,000. C. $10,500,000. D. $ 5,250,000. Answer(s): D QUESTION: 20 Continuous improvement is best described as: A. a never-ending effort to expose and eliminate root causes of problems. https://Xcerts.com 6 CSCP B. a never-ending effort by the management team to reduce cycle time. C. identifying and implementing big-step improvements within a process. D. a process in which a supplier commits to replenishing inventory based on demand without receiving replenishment orders. Answer(s): A QUESTION: 21 The factors to consider in the make-or-buy decision include costs, proprietary knowledge, and: A. design history. B. available capacity. C. inventory balance. D. warehouse location. Answer(s): B QUESTION: 22 Using an independent service provider for logistics would be most appropriate in which of the following situations? A. A shoe company that wants to penetrate a foreign market B. A business that owns plants and warehouses globally C. A financial services company that wants to expand its services D. A cable television company that wants to add services Answer(s): A QUESTION: 23 The most likely benefit of implementing a collaborative transportation management system is: A. lower distribution center operating costs. B. fewer transportation planners. C. less variability in picking and packing time. D. less variability in transportation costs. Answer(s): D QUESTION: 24 Which of the following attributes typically makes reverse logistics processes more complicated than outbound logistics processes? A. Lead times for shipments are more variable. B. Individual packages and cartons are less uniform. https://Xcerts.com 7 CSCP C. There are more regulations mandated by local governments. D. There is more competition for scarce transportation lanes. Answer(s): B QUESTION: 25 A remanufacturer of equipment is most likely to have what type of supply chain? A. Modular logistics B. Reverse logistics C. Mixed model D. Lateral Answer(s): B QUESTION: 26 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: A. create a more loyal customer base. B. improve customer satisfaction rates. C. increase market share. D. target higher-profit customers. Answer(s): A QUESTION: 27 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? A. Customer differentiation B. Order winner segregation C. Market segmentation D. Channel definition Answer(s): C QUESTION: 28 The value that logistics provides within the supply chain can best be summarized as: A. satisfying customer expectations about availability and delivery at an acceptable total cost. B. meeting promised location and on-time delivery goals with minimal use of expediting. https://Xcerts.com 8 CSCP C. establishing inventory and delivery goals with various customers that fulfill the firm's profit objectives. D. providing accurate in-transit and delivery information to customers and salespeople. Answer(s): A QUESTION: 29 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? A. Analyzing the buying history for each of the market segments B. Asking the manufacturer's direct customers C. Conducting a market research project D. Sending samples of potential future products to the final customers Answer(s): C QUESTION: 30 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. a quick response program. B. quality function deployment. C. total quality management. D. early supplier involvement. Answer(s): B QUESTION: 31 A manufacturer can simplify the forecasting process by pooling demand forecasts for a product group and then: A. averaging total demand and spreading it evenly across all items. B. disaggregating demand to the item level based on marketing input. C. disaggregating demand to the item level based on historical proportions. D. allocating demand to each production site. Answer(s): C QUESTION: 32 Which of the following types of information would be an appropriate basis for a qualitative forecast? https://Xcerts.com 9 CSCP A. Leading indicators B. Market research data C. Order history D. Shipment history Answer(s): B QUESTION: 33 The use of a seasonal index as a forecasting technique measures the ratio of the: A. average seasonal demand to the average demand for all periods. B. average demand for all periods to the average seasonal demand. C. average seasonal demand to the standard deviation of the demand for all periods. D. standard deviation of the seasonal demand to the standard deviation of demand for all periods. Answer(s): A QUESTION: 34 Medium-term demand management projections are used primarily to: A. complete strategic business planning of facilities. B. complete forecasts at the item level. C. aggregate demand for production planning. D. develop the master production schedule. Answer(s): C QUESTION: 35 Which of the following strategies is used primarily for demand planning? A. Build-to-order scheduling B. Push-pull replenishment C. Collaborative planning, forecasting, and replenishment D. Vendor-managed inventory Answer(s): C QUESTION: 36 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? A. Inventory levels B. Contractual obligations https://Xcerts.com 10 CSCP C. Customer profitability D. Scheduled marketing activities Answer(s): D QUESTION: 37 Demand management involves which of the following undertakings? A. Adjusting capacity to support expected demand B. Engaging in activities associated with customer relationship management C. Creating higher customer demand by improving performance in areas such as lead time and service levels D. Understanding events and managing activities that could influence future demand Answer(s): D QUESTION: 38 Which of the following forecasting methods relies on the opinions of a panel of experts? A. Delphi technique B. Survey method C. Causal method D. Time series analysis Answer(s): A QUESTION: 39 What is the primary role of marketing in supporting supply chain management? A. Selecting favored supplier partners B. Developing efficient customer channels C. Focusing on short-term forecasting accuracy D. Working with research and development on slow-moving products Answer(s): B QUESTION: 40 Which of the following practices has improved management of the customer pipeline? A. Reverse auctions B. Sales force automation C. Finite capacity planning D. Point-of-purchase metrics https://Xcerts.com 11 CSCP Answer(s): B QUESTION: 41 The probability of customer dissatisfaction is highest when which of the following conditions exists? A. Customer expectations are clearly defined. B. Supplier execution is too low. C. There is a gap between expected performance and perceived performance. D. There is a gap between what was indicated and what was accomplished. Answer(s): C QUESTION: 42 Which of the following actions typically would be the first step in implementing the philosophy of customer relationship management? A. Creating a customer-centric organization B. Developing a map of the customer segments C. Documenting the objectives for implementation D. Selecting an information technology solution Answer(s): A QUESTION: 43 Which of the following customer relationship management activities most appropriately is used for revenue generation? A. Generating customer leads B. Generating graphic sales models C. Measuring customer preferences D. Identifying customer margins Answer(s): A QUESTION: 44 Compared to mass-media marketing, customer relationship management has the advantage of allowing the organization to: A. compete for customers based on service. B. reach a larger number of potential customers. C. reduce inventory to improve cash flow. D. focus on attracting new customers. https://Xcerts.com 12 CSCP Answer(s): A QUESTION: 45 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? A. Price concessions B. Make-or-buy C. Distribution warehouse locations D. Freight terms Answer(s): B QUESTION: 46 Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by: A. efficient material replenishment processes. B. clearly identified roles for the buyer and seller. C. a shared vision of added value. D. a sole-source agreement. Answer(s): C QUESTION: 47 Incorporating supplier input into product and process design helps to: A. maintain quality. B. stabilize product costs. C. reduce time to market. D. save costs to the buyer. Answer(s): C QUESTION: 48 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: A. create a contract for the new market. B. enter into a partnership. C. form a strategic alliance. D. acquire the distributor. https://Xcerts.com 13 CSCP Answer(s): C QUESTION: 49 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? A. Contacting the country's consulate for leads B. Contacting the country's local government for recommendations C. Visiting several potential providers before making a selection D. Finding a trusted local business agent to help in the search Answer(s): D QUESTION: 50 Which of the following benefits of supplier relationship management typically results from collaboration with a few critical suppliers? A. Automation of supplier sales activities B. Elimination of formal contracts C. Reduction in customer and supplier inventories D. Standardization of communications Answer(s): C QUESTION: 51 Which of the following organizational design choices is an example of vertical integration? A. Contracting with a third-party logistics provider B. Producing components used internally C. Externally staffing a customer service center D. Awarding a one-time trade show contract Answer(s): B QUESTION: 52 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 businessstrategy change? A. Local distribution centers serving retailers and online sales B. Centralized cross-docking facilities serving retailers and online sales https://Xcerts.com 14 CSCP C. A centralized distribution center serving retailers and direct shipment from the factory serving online sales D. A centralized distribution center serving retailers with transshipment arrangements serving online sales Answer(s): C QUESTION: 53 A company manufactures special products for select customers. When demand for these products drops, the manufacturer can switch the production line to a commodity-type product that can be sold on the open market at reduced terms to generate cash. The company is executing a corporate strategy that is based on: A. customer focus and alignment. B. forecast accuracy. C. multiple downstream channels. D. multiple upstream supply chains. Answer(s): D QUESTION: 54 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? A. Selling and leasing back equipment. B. Renting equipment on consignment. C. Using a third-party logistics provider. D. Using an owner-operator fleet. Answer(s): C QUESTION: 55 Reverse supply chain activity typically peaks nearest the beginning of which of the following stages of the product life cycle? A. Introduction B. Growth C. Maturity D. Decline Answer(s): D QUESTION: 56 https://Xcerts.com 15 CSCP Which of the following actions typically would be considered part of a reverse logistics strategy? A. Offering a discount on new purchases when used products are returned B. Reducing the amount of packaging material used in shipping C. Manufacturing products in batches consistent with full-truckload shipments D. Batching returns of defective components to the suppliers Answer(s): A QUESTION: 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? A. Customer service ratio metrics B. Market segmentation C. Customer relationship management (CRM) D. Supply Chain Operations Reference (SCOR®) Answer(s): B QUESTION: 58 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? A. Group B. Channel C. Regional D. Location Answer(s): B QUESTION: 59 Which of the following is the most important result when a company implements customer relationship management? A. Profits are maximized. B. Retention of key customers is increased. C. Product options are increased. D. Transaction costs are decreased. Answer(s): B https://Xcerts.com 16 CSCP QUESTION: 60 Maintaining a long-term collaborative relationship with a trading partner requires: A. formal and informal communication. B. interconnected information systems. C. one partner regularly exercising power. D. standardized terms of agreement. Answer(s): A QUESTION: 61 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? A. Delivery lead times are consistent. B. Risk pooling benefits are negated. C. Distribution overhead is increased. D. Order-fill rate is decreased. Answer(s): B QUESTION: 62 Which of the following results can be expected from sharing a common understanding of demand and consumption patterns among supply chain participants? A. Improved transparency of collaboration relationships B. Increased performance in balanced scorecard C. Reduced inventory levels for key items D. Better synchronization of planning and operations Answer(s): D QUESTION: 63 An advantage of using a third-party logistics service (3PL) is improved: A. on-time delivery of shipments due to higher inventory levels. B. cost structure due to economies of scale. C. access to smaller markets due to localization. D. risk visibility due to inventory consolidation. Answer(s): B QUESTION: 64 https://Xcerts.com 17 CSCP A return material authorization (RMA) policy is used in reverse logistics to: A. physically transport returned items by using an efficient transportation mode. B. minimize the number of returned items by involving product design and demand forecasting. C. reduce the cost of returned items by refusing to accept items that should not be returned. D. reclaim substantial value from returned items by recycling. Answer(s): C QUESTION: 65 A company's decision to charge different prices for the same service sold in different market segments is most likely based on which of the following metrics? A. Internal rate of return (IRR) B. Lifetime customer value (LCV) C. Net present value (NPV) D. Return on investment (ROI) Answer(s): B QUESTION: 66 Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)? A. Reducing the size of the sales force by automating activities B. Gaining a better understanding of customer requirements C. Implementing automated inter-organizational processes D. Focusing sales efforts on the most profitable customers Answer(s): B QUESTION: 67 A main benefit of using customer relationship management (CRM) is: A. maximization of on-time delivery. B. minimization of product returns. C. identification of customers with high lifetime value. D. finding new markets for existing products and services. Answer(s): C QUESTION: 68 Which of the following indicators is most appropriate to use as a measure of supply chain utilization? https://Xcerts.com 18 CSCP A. Production equipment productivity B. Net asset turns C. Value-added productivity per employee D. Upside flexibility Answer(s): B QUESTION: 69 The main benefit of a mass customization product design strategy is to: A. sell high quantities of product to specific customer segments. B. achieve economies of scale in purchasing components. C. offer more product variety while keeping inventories low. D. avoid assembly of finished products. Answer(s): C QUESTION: 70 Keeping all other factors equal, a company typically will try to maintain higher service levels for products with: A. wider variety. B. shorter lead time. C. higher profit margins. D. lower sales volumes. Answer(s): C QUESTION: 71 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: A. fourth party logistics providers. B. third party logistics providers. C. retail services providers. D. distribution services providers. Answer(s): B QUESTION: 72 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: https://Xcerts.com 19 CSCP A. forward supply chain. B. marketing process. C. manufacturing process. D. sales and operations planning process. Answer(s): A QUESTION: 73 The primary reason for a firm to pursue strategic supply chain activities is to: A. gain competitive advantage. B. reduce costs. C. increase productivity. D. decrease product lead time. Answer(s): A QUESTION: 74 A firm supplies a single line of products to consumers using retail stores and on-line sales, distributors, and wholesalers. Currently the firm has common pricing and response times for sales in each sales channel. Which of the following tools is most appropriate to employ to improve profitability? A. Customer segmentation B. Customer-facing ordering systems C. Customer relationship management (CRM) D. Supply Chain Operations Reference (SCORֲ®) Answer(s): A QUESTION: 75 A company has been delivering a global product that no longer appears profitable. Senior management's best response is to: A. analyze product profitability by market segment. B. discontinue the product based on eroding profitability. C. provide additional incentives to the sales force. D. increase promotional activity across all markets. Answer(s): A QUESTION: 76 https://Xcerts.com 20 CSCP Which of the following statements represents a major assumption needed to effectively use days of supply as a measure? A. The reorder point for the inventory has been calculated correctly. B. The forecast for the item usage is reasonably accurate. C. The item is in the growth phase of the product life cycle. D. The item is subjected to statistical process control (SPC) during production. Answer(s): D QUESTION: 77 Attaching a fuel tank cap to a fuel tank door on a car is an example of which of the following lean techniques? A. Five Ss B. Five whys C. Poka-yoke D. Kaizen Answer(s): A Reference: https://sashaphilosophy.com/2012/02/06/645/ QUESTION: 78 When evaluating several possible supply chain options, a firm considering the minimal total cost should: A. ensure that the inventory levels are as low as possible to minimize holding costs while still providing adequate customer service. B. account for the combined costs of holding buffer inventory and incurring inventory shortages. C. consider the costs of acquiring, holding, and transporting inventory and of servicing customers. D. place buffer inventory in the lowest cost locations that meet lead time and service level requirements from customers. Answer(s): C QUESTION: 79 A primary objective of a lean enterprise is to: A. analyze and focus the value stream along all functions to maximize value for the ultimate customer. B. employ people who have enhanced abilities to learn and adapt to the corporate culture. C. continuously improve processes and procedures to maintain a level production schedule. https://Xcerts.com 21 CSCP D. create value for its suppliers by incorporating lean manufacturing principles into a supplier certification process. Answer(s): A Reference: https://www.investopedia.com/terms/l/lean-enterprise.asp QUESTION: 80 Cost reduction, improvement of company focus, and freeing assets from noncore activities are among the results achieved through effective implementation of: A. supply chain management. B. service supplier management. C. collaboration. D. outsourcing. Answer(s): C QUESTION: 81 Which of the following methods is used to minimize the bullwhip effect? A. Outsourcing noncore business activities B. Reducing the number of stock keeping units (SKUs) C. Reducing lead time D. Increasing factory inventory Answer(s): C Explanation: Demand-driven material requirements planning (DDMRP) is a relatively new type of ordering system that can be used for dependent and independent demand items at any point in the supply chain. DDMRP strategically positions inventory to achieve all the benefits of modern supply chain management (reduce inventory, lead times to the customer, and the bullwhip effect and increase customer service and asset usage efficiency) without needing to rely on safety stocks of finished goods or a pure make-to-order environment. Instead, DDMRP determines how to shrink total lead times by creating buffer inventories of key components that have longer lead times than other components making up a finished good. QUESTION: 82 Requirements for successful application of a demand-driven supply network include: A. demand synchronization between stakeholders. B. automatic communications of data from point-of-sale (POS) terminals. C. safety stock determined jointly by suppliers and customers. D. supply provided by a single source. https://Xcerts.com 22 CSCP Answer(s): A QUESTION: 83 In the analysis of costs, fixed costs are those that are: A. independent of the volume of output. B. dependent on the utilization of the asset. C. inversely proportionate to the volume of output. D. constant through the useful life of the asset. Answer(s): D QUESTION: 84 Which of the following actions by a group of trading partners is most likely to quickly improve their economic performance? A. Developing a comprehensive product and service strategy B. Implementing collaborative interorganizational systems C. Outsourcing interorganizational business processes D. Redesigning product packaging to reduce volume and weight Answer(s): A QUESTION: 85 One key factor to consider when selecting suppliers for their potential to sustain long-term, mutually profitable relationships is: A. landed cost. B. quality metrics. C. operational performance. D. financial viability. Answer(s): C QUESTION: 86 A high level of which of the following attributes is considered to be undesirable in a supply chain? A. Velocity B. Variability C. Visibility D. Variety https://Xcerts.com 23 CSCP Answer(s): B QUESTION: 87 Which of the following measures best describes fill rate? A. Ratio of available inventory to cost of goods sold (COGS) B. Ratio of cost of goods sold to available inventory C. Percentage of demand satisfied by available inventory D. Percentage of closed orders to total orders Answer(s): C Reference: http://www.apics.org/docs/default-source/industry-content/fill-rate-discussion.pdf?sfvrsn=4(2) QUESTION: 88 Which of the following statements regarding transportation negotiation is correct? A. The lowest possible cost for transportation is the lowest total cost of logistics. B. The lowest possible rate must be consistent with the level of service required. C. The key to effective negotiation is to maximize distributor profitability. D. The key to building solid career relationships is the acceptance of a carrier's rate. Answer(s): B QUESTION: 89 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? A. Theory of constrains (TOC) B. Supply/demand balancing C. Decoupling D. Pull production Answer(s): C Explanation: Decoupling allows economy of scale within a single facility and permits each process to operate at maximum efficiency rather than having the speed of the entire process constrained by the slowest. QUESTION: 90 Which of the following relationship activities is most impacted by a lack of trading partner trust? A. Collaboration https://Xcerts.com 24 CSCP B. Coordination C. Cooperation D. Communication Answer(s): A Explanation: A lack of trust among trading partners often creates a condition where every transaction has to be scrutinized and verified, thereby increasing the transaction costs to an unacceptably high level. Productivity is lost and efficiency and effectiveness, cornerstones of supply chain goals, will be compromised. Creating value-added activities with such partners becomes almost impossible and the supply chain tools used to improve efficiency, effectiveness and productivity (such as vendor- managed inventory (VMI), cross-docking (CD), and collaborative forecasting, planning and replenishment (CFPR)) eventually become ineffective. Under the less than opentrust conditions, decision makers often spend their time mostly on analyzing their trading partner's credibility, reliability and trustworthiness, rather than optimizing their operations. Although there are studies focusing on the relationship between related variables and the level of trust, there is a lack of empirical studies that examine the relationship between trust and the ultimate facilitator of supply chain success, commitment. This study attempts to bridge the gap in supply chain management. QUESTION: 91 A role-based entry into a company's system that aggregates all required sources of information into a single environment is known as: A. a portal. B. a hub. C. a local area network (LAN). D. an extranet. Answer(s): B QUESTION: 92 Enterprise resources planning (ERP) is defined as a: A. framework for organizing, defining, and standardizing business processes to use its internal knowledge to seek external advantage. B. production control system that determines priorities of in-process work. C. software module used to determine whether sufficient capacity is available to ship customer orders on time. D. process whereby sales, marketing, and operations determine what products will be sold and what resources will be required for production. Answer(s): A Reference: https://Xcerts.com 25 CSCP https://www.aptean.com/en-US/insights/blog/erp-system-definition QUESTION: 93 The use of break-bulk warehouses allows for reduced transportation costs by receiving: A. large shipments and arranging for distribution to locations as smaller shipments. B. sorting multiple receipts for outgoing shipments based on final destination. C. converting individual pallets of goods into truckloads (TLs). D. staging products for delayed delivery to customers. Answer(s): A Reference: https://iimm.org/wp-content/uploads/2019/12/Logistics-and-Warehousing-Management.pdf (115, 116) QUESTION: 94 The purpose of Incotermsֲ® is to establish common: A. software system terminology between supply chain partners. B. contracts for trade within the supply chain. C. company communication channels within the supply chain. D. quality measures for use in the supply chain. Answer(s): B Reference: https://www.investopedia.com/terms/i/incoterms.asp QUESTION: 95 Which of the following statements about warehouse layout and storage is correct? A. Product weight is the major factor driving warehouse layout. B. Products with low volume are typically placed at the lower level in storage racks. C. Warehouses that utilize fixed locations storage typically minimize space requirements. D. A typical warehouse is engaged in a combination of short term and extended storage alternatives. Answer(s): D QUESTION: 96 Replacing a raw material in a manufacturing process with an alternate material that reduces emissions is an example of using: A. the global reporting initiative (GRI). B. recycling. https://Xcerts.com 26 CSCP C. rework. D. life cycle assessment (LCA). Answer(s): B QUESTION: 97 When determining lot sizes, consideration should be given to balancing which of the following costs? A. Quality costs and product costs B. Cost of goods sold (COGS) and indirect labor costs C. Unit sales price and unit cost D. Ordering costs and carrying costs Answer(s): C QUESTION: 98 Which of the following documents includes the valuation of goods for assessment of duties? A. Insurance certificate B. Export declaration C. Bill of landing (B/L) D. Commercial invoice Answer(s): D Explanation: The commercial invoice states the value of the goods in the shipment and specifies payment terms and methods. It constitutes the seller's and buyer's invoice for the transaction. It also may be required for the letter of credit and by other entities that need to know the value of the goods for insurance or the assessment of duties. The information required and the language it's written in may vary from country to country. QUESTION: 99 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. a central warehouse for each market segment. B. the distribution centers (DCs) closest to the customers. C. each node in the distribution channel. D. each production facility. Answer(s): A https://Xcerts.com 27 CSCP QUESTION: 100 A company has significant cash invested in its finished goods inventories. What action can this company take to significantly reduce its inventory investment while maintaining its customer service levels? A. Begin production after receipt of customer orders B. Move the customer decoupling point from finished goods to components C. Increase component assembly lead times D. Plan key component material with preferred suppliers Answer(s): D Reference: https://www.industryweek.com/supply-chain/inventory-management/article/21957774/inventoryoptimization-five-steps-to-improve-process-effectiveness QUESTION: 101 A company distributes products through a multitiered distribution network. Recently there has been high demand variability for a mature product that had experienced stable demand for several years. The most appropriate way to address the variability of demand is to: A. extend forecast horizon. B. increase distribution safety stock targets. C. increase manufacturing throughput. D. increase demand visibility with all partners. Answer(s): C QUESTION: 102 Which mode of long distance transportation would cost the least per ton mile? A. Water B. Air C. Truck D. Rail Answer(s): A Reference: https://askinglot.com/which-mode-of-transportation-is-the-least-expensive-per-ton-mile QUESTION: 103 Which of the following costing approaches directly reflects logistics performance? A. Activity-based B. Total landed https://Xcerts.com 28 CSCP C. Standard D. Weighted average Answer(s): D QUESTION: 104 When a company works on controlling stockout frequency, the company is addressing which of the following attributes of customer service? A. Availability B. Delivery time C. Service reliability D. Service recovery Answer(s): B QUESTION: 105 Products that share characteristics of predictable demand and low profit margin will have competition based on which of the following? A. Fastest to market B. Lowest landed cost C. Product improvements D. Supply flexibility Answer(s): A QUESTION: 106 A key challenge in managing the supply chain for an innovative product is that: A. contribution margins will be slim. B. the product life cycle will be long. C. product demand will be volatile. D. inventory levels must be minimal. Answer(s): C QUESTION: 107 Bullwhip effect can be reduced by which of the following combinations of actions? A. Information sharing, batch ordering, variable pricing B. Shortage gaming, frequent ordering, consistent pricing C. Information sharing, frequent ordering, variable pricing D. Information sharing, frequent ordering, consistent pricing https://Xcerts.com 29 CSCP Answer(s): B Reference: https://www.ascm.org/ascm-insights/cracking-the-bullwhip-effect/ QUESTION: 108 A company would like to benchmark its inventory levels against other companies. Which of the following metrics is best to use for this purpose? A. Fill rate B. Days of supply C. Net asset turns D. Cash-to-cash cycle time Answer(s): D Explanation: CCC has days inventory outstanding, days sales and payables outstanding values in its formulae. A breakup of all this if available can be a good metric as it can talk of various parameters connected to the inventory position, negotiating power with the supplier/ distributors etc. Reference: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2 ahUKEwj_98PXlP7xAhW98uAKHYMkCB0QFjAAegQIBxAD&url=https%3A%2F%2Fwww.resea rchgate.net%2Fprofile%2FMohamed_Mourad_Lafifi%2Fpost%2FWhere_can_I_find_SCOR_me trics_any_level_to_use_in_a_supply_chain_evaluation%2Fattachment%2F5f91ad2c760009000 1f0280e%2FAS%253A949469478666249%25401603382572650%2Fdownload%2FSupplyChain%2BBenchmarking%2Bwith%2BSCOR.pdf&usg=AOvVaw33LXq2CKgYsqM6Hie7pR1P QUESTION: 109 Sustainable business practices are those capable of meeting the: A. environmental protection requirements of today. B. requirements of producing products with minimum resources. C. environmental protection requirements of the future. D. needs of the present while considering the needs of the future. Answer(s): C QUESTION: 110 Which of the following elements typically is considered to be an output of demand planning? A. Transportation routes and schedules B. Detailed production schedules https://Xcerts.com 30 CSCP C. Product family and item forecasts D. Customer historic tracking report Answer(s): C Reference: https://learn.apics.org/wp-content/uploads/2019/11/APICS_CLTD_2020_Excerpt.pdf(2) QUESTION: 111 A pattern of increased shipments from manufacturing plants to a central warehouse at monthend and quarter-end typically would cause which of the following situations in a central warehouse? A. Fluctuation in required labor resources B. Decreased use of storage capacity C. Decreased transportation costs D. Increased outbound shipments Answer(s): D QUESTION: 112 The use of standardized components typically results in: A. increased planning and control efforts to avoid shortages. B. fewer inventory items and inventory levels. C. more items, larger bills of material (BOMS), and increased material requirements planning (MRP) run time. D. smaller bills of materials, fewer routings, and fewer manufacturing orders. Answer(s): D QUESTION: 113 An organization is striving to improve the transfer of multiple levels of data about products and services to trading partners in the supply chain network. Which of the following solutions is most appropriate? A. Business analytics B. Electronic commerce C. Enterprise resources planning (ERP) D. Advanced planning and scheduling (APS) Answer(s): C QUESTION: 114 The process of continuous improvement can be defined best as a continuous effort to: https://Xcerts.com 31 CSCP A. concurrently improve performance on several measures through incremental improvements. B. eliminate root causes of waste through incremental improvements. C. eliminate root causes of problems through radical changes. D. reduce direct and indirect costs through incremental changes. Answer(s): A Reference: https://www.apics.org/apics-for-individuals/apics-magazine-home/magazine-detailpage/2017/03/10/targeting-continuous-improvement-with-laser-focus QUESTION: 115 A retailer that imports furniture from several manufactures in low-wage countries wants to reduce variability in quality. The retailer has proposed merging with one of the manufacturers and giving it sole responsibility for one product family. The proposed merger is an example of: A. parallel integration. B. internal integration. C. horizontal integration. D. vertical integration. Answer(s): D Reference: https://www.investopedia.com/ask/answers/051315/what-difference-between-horizontalintegration-and-vertical-integration.asp QUESTION: 116 Which of the following activities is forbidden in a free trade zone (FTZ)? A. Cross-docking goods B. Reconfiguring product C. Re-exporting goods D. Conducting retail trade Answer(s): A Reference: https://www.adaptalift.com.au/blog/2011-12-23-what-is-cross-docking-understanding-theconcept-definition QUESTION: 117 Which of the following metrics is typically the most appropriate measure of product and service quality? A. Internal inspection https://Xcerts.com 32 CSCP B. Product performance C. Customer perception D. Warranty claims Answer(s): D Reference: http://www.apics.org/docs/default-source/scc-non-research/ccor-metrics-framework.pdf QUESTION: 118 A company that sells 60 units of product in a given year and has an average quantity on hand of 10 units. There are 360 selling days and 261 production days in the year. The company has on hand how many days of product inventory? A. 0.16 B. 0.23 C. 43 D. 60 Answer(s): D QUESTION: 119 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? A. $5,400 B. $9,000 C. $15,000 D. $25,000 Answer(s): B QUESTION: 120 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? A. Assign personnel to manage the items. B. Standardize the items. C. Increase minimum inventory levels for the items. D. Initiate a vendor-managed inventory (VMI) program for the items. Answer(s): C https://Xcerts.com 33 CSCP QUESTION: 121 Effective data acquisition for supply chain management requires: A. establishment of market standards for forecasting accuracy. B. establishment of a six-segment matrix classifying function and innovation. C. identification of products that have market predictability. D. identification of the proper supply chain profile for the product type. Answer(s): D QUESTION: 122 The primary business advantage of developing an international supply chain is to: A. reduce transportation costs. B. decrease inventory costs. C. limit the number of component suppliers. D. realize economies of scale in production and distribution. Answer(s): D QUESTION: 123 Transforming company policies into objectives and specific goals creates a: A. performance standard. B. organizational benchmark. C. supply chain metric. D. balanced scorecard. Answer(s): A QUESTION: 124 A well-grounded program in which a company focuses on customer success involves: A. a thorough understanding of individual customers' requirements. B. a commitment to focus on short-term business relationships. C. a focus on relationships having high profitability and low potential for growth. D. making similar commitments to customers in order to maintain lasting relationships. Answer(s): D QUESTION: 125 A company faces highly unpredictable demand for an end item. Which of the following production methods would work best for meeting customer demand within a reasonable lead time? https://Xcerts.com 34 CSCP A. Engineer-to-order (ETO) B. Make-to-order (MTO) C. Assemble-to-order (ATO) D. Make-to-stock (MTS) Answer(s): D Reference: http://ddegjust.ac.in/2017/Uploads/11/POM-326.pdf(134) QUESTION: 126 One of the key benefits of adopting a lean supply chain philosophy is the reduction of inventories that allow: A. decreased obsolescence. B. freeing up working capital for investment. C. reduced material handling surcharges. D. lower transaction costs. Answer(s): C QUESTION: 127 Which of the following measures of a supply chain performance is most desirable from a stockholder perspective? A. Diversity of sales channels B. Lean manufacturing performance C. Time to market of new products D. Velocity and return on assets (ROA) Answer(s): B QUESTION: 128 Using new housing construction data as a predictor of construction equipment sales is an example of what type of forecasting method? A. Causal B. Time series C. Judgement D. Market survey Answer(s): D QUESTION: 129 https://Xcerts.com 35 CSCP Which of the following consequences is typical of a push-based supply chain? A. Longer lead times B. Higher product obsolescence C. Lower economies of scale D. Smaller production batches Answer(s): B QUESTION: 130 An item must be added to inventory to support new business. Which of the following inputs should be considered to determine minimum inventory level? A. Consumption rate B. Qualified supplier C. ABC classification D. Number of sales transactions Answer(s): A QUESTION: 131 Which of the following factors is a measure of supply chain reliability? A. Order-fulfillment cycle time B. Perfect order fulfillment rate C. Upside supply chain flexibility D. Downside supply chain adaptability Answer(s): A QUESTION: 132 Which of the following inputs is used in developing a project charter? A. Business case B. Work breakdown structure C. Project management plan D. Proposed solutions Answer(s): A Reference: https://www.dummies.com/careers/project-management/pmp-certification/inputs-for-developinga-charter-you-should-know-for-the-pmp-certification-exam/ QUESTION: 133 https://Xcerts.com 36 CSCP A third-party logistics (3PL) provider most likely will add the greatest contributed value in the supply chain by: A. allowing a company to improve focus on core competencies. B. lowering a company's logistics budget. C. enhancing a company's own logistics organization. D. increasing a company's transportation assets. Answer(s): A QUESTION: 134 Sell-side e-commerce must include: A. automated returns processing. B. advance ship notice (ASN). C. electronic data interchange (EDI). D. automated order entry and tracking. Answer(s): C QUESTION: 135 Kaizen is a process used in supply chain networks primarily to achieve: A. long-term stability of suppliers. B. radical changes in interorganizational processes. C. higher profits for the dominant member. D. improved performance. Answer(s): D Reference: https://mexicomlogistics.com/how-to-start-applying-the-kaizen-principles-in-logistics-and-supplychain/ QUESTION: 136 Which of the following actions is most likely to improve the flow of funds between a group of supply chain partners? A. Increasing the level of information sharing and collaboration B. Negotiating a single set of terms for the trading partners C. Increasing a partner's cash-to-cash cycle time D. Selecting a single currency for all group transactions Answer(s): D https://Xcerts.com 37 CSCP QUESTION: 137 A key assumption of the economic order quantity (EOQ) is that: A. future demand cannot be projected. B. the rate of demand is continuous and constant. C. reorder frequency is fixed. D. as the lot size decreases, the setup cost per unit decreases. Answer(s): B Reference: http://financialmanagementpro.com/economic-order-quantity-eoq-model/ QUESTION: 138 A company is seeking to attract recent college graduates as customers. Which of the following market characteristics should the company use in order to segment its customers? A. Geographic B. Demographic C. Price sensitivity D. Cultural Answer(s): B QUESTION: 139 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? A. Fewer tax implications B. Limited exposure to regulatory violations C. Fixed delivery costs D. Better market accessibility Answer(s): B QUESTION: 140 Which of the following cost elements typically would be included in the cost of carrying inventory? A. Scrap during production B. Depreciation of product equipment C. Direct materials D. Obsolescence https://Xcerts.com 38 CSCP Answer(s): C QUESTION: 141 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? A. Sales and operations planning B. Distribution requirements planning C. Supply Chain Operations Reference-model D. Supply chain event management Answer(s): A QUESTION: 142 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: A. reuse. B. remanufacturing. C. recovery. D. refurbishing. Answer(s): C QUESTION: 143 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: A. environmentally sensitive engineering. B. gray box design. C. green manufacturing. D. sustainability in operations. Answer(s): D QUESTION: 144 The social dimension of sustainability typically would be addressed when developing and implementing policies regarding: https://Xcerts.com 39 CSCP A. accounting practices. B. biodiversity protection. C. conflicts of interest. D. waste reduction. Answer(s): C QUESTION: 145 Which of the following actions is in accordance with the Ten Principles in the United Nations (UN) Global Compact? A. Preventing a group of employees from forming a collective bargaining (union) group B. Paying different wages in different parts of the world for a given job classification C. Requiring an individual to pay a fee for consideration in hiring or promotion decisions D. Withholding certain employment opportunities from specific groups of people Answer(s): B QUESTION: 146 The most appropriate reason for a business to comply with the United Nations (UN) Global Compact practices typically would be to: A. enhance the competitive advantage. B. gain access to proven management tools. C. reduce the threat of organized labor. D. reduce the cost of operating in multiple countries. Answer(s): A QUESTION: 147 A company most likely would consider moving a portion of its manufacturing to a second location to: A. improve competitive advantage through economies of scale. B. avoid manufacturing downtime due to material shortages. C. maximize security for customer shipments. D. minimize the impact of natural disasters. Answer(s): D QUESTION: 148 Which of the following strategies can be used to help manage global risks? A. Direct shipment https://Xcerts.com 40 CSCP B. Cross-docking C. Mass customization D. Flexibility Answer(s): D QUESTION: 149 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: A. implement statistical process control for the component. B. bring manufacturing of the critical component in-house. C. develop an alternate source of supply. D. certify the supplier of the component. Answer(s): D QUESTION: 150 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? A. Source from domestic suppliers. B. Conduct a risk assessment. C. Carry additional safety stock. D. Spread logistics across multiple carriers. Answer(s): B QUESTION: 151 Managing supply chain risks includes which of the following activities? A. Developing alternatives to key suppliers B. Setting aside funds for disruption-recovery efforts C. Charging each supply chain partner a portion of risk cost D. Creating extra inventory to cover disruptions in the supply chain Answer(s): A QUESTION: 152 The most important challenge to consider when sourcing globally is: A. the identification of sources capable of producing the materials. https://Xcerts.com 41 CSCP B. the availability of low-cost labor and energy. C. complying with specific import/export issues. D. balancing the difference between piece price and total cost. Answer(s): D QUESTION: 153 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: A. consolidator. B. overseas carrier. C. shipping association. D. freight forwarder. Answer(s): D QUESTION: 154 When an importer and manufacturer are operating in a free trade zone, payment of a customs duty is triggered when products are: A. returned. B. assembled. C. stored. D. distributed. Answer(s): D QUESTION: 155 In an advanced planning system, which of the following modules feeds the master planning module? A. Purchasing planning B. Demand planning C. Distribution planning D. Fulfillment planning Answer(s): B QUESTION: 156 The globalization of a supply chain typically increases challenges in communication and: A. production lead time. B. local competition. https://Xcerts.com 42 CSCP C. documentation complexity. D. product standardization. Answer(s): C QUESTION: 157 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? A. Globally integrated B. Domestic C. Multinational D. Virtual Answer(s): C QUESTION: 158 When doing international business, a company's total line-haul costs will vary with the: A. weight shipped. B. distance shipped. C. pallets shipped. D. volume shipped. Answer(s): B QUESTION: 159 Customizing can be an effective warehousing strategy because it allows a company to: A. allocate available storage space to optimize handling costs. B. address trade-offs between space and material handling needs. C. effectively design its inbound and outbound dock areas. D. add value to the product through modification, labeling, and packaging. Answer(s): D QUESTION: 160 Which of the following measures effectively evaluates overall resources in a distribution warehouse? A. Throughput B. Cube utilization https://Xcerts.com 43 CSCP C. Filled pallet positions D. Labor efficiency Answer(s): A QUESTION: 161 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: A. storing cycle inventory in the distribution centers. B. storing finished-goods inventory at the manufacturing plants. C. transportation from the distribution centers to the customer. D. transportation from the plant to the distribution centers. Answer(s): D QUESTION: 162 Benchmarking a firm's performance against industry competitors is most valuable because it can reveal: A. a competitor's manufacturing processes. B. a firm's leadership ranking relative to industry peers. C. which processes require improvement. D. that no further improvement is possible. Answer(s): C QUESTION: 163 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? A. Public warehouse B. Value-added territory C. Free trade zone D. Customs clearing house Answer(s): C QUESTION: 164 An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in: A. prices to the end user. https://Xcerts.com 44 CSCP B. supply chain cost of sales. C. the manufacturer's inventory. D. the total supply chain inventory. Answer(s): D QUESTION: 165 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? A. Produce both product families to forecast and push through the distribution system. B. Produce both product families only after receipt of a distributor order. C. Produce the current product family to forecast and the new product family to order. D. Produce the current product family to order and the new product family to forecast. Answer(s): C QUESTION: 166 Which of the following actions would be most appropriate for an enterprise that has successfully integrated internal supply chain management systems and functions? A. Focusing on reducing setup times B. Implementing a firewall to limit access to supply and demand data C. Working with key suppliers to reduce costs and lead times D. Working with trading partners to reduce channel redundancies Answer(s): C QUESTION: 167 A corporation must consider which of the following factors when selecting its enterprise resources planning system? A. Uniqueness of operations B. Corporate profitability C. MRP and MRP II processing D. Industry benchmarks Answer(s): A QUESTION: 168 The demand side of a traditional warehouse management system primarily is concerned with: https://Xcerts.com 45 CSCP A. receiving incoming goods. B. assigning storage locations. C. assembling outbound orders. D. forecasting product demand. Answer(s): C QUESTION: 169 Bar codes and radio frequency identification systems are key technologies in supply chain systems because they perform which of the following functions? A. Tracking truck locations on cross-country deliveries B. Facilitating timely and accurate data acquisition C. Providing paperless invoicing of goods D. Producing schedule broadcasts for suppliers Answer(s): B QUESTION: 170 When implementing e-commerce in the supply chain, a company's toughest challenge most likely will be: A. getting all vendors to computerize. B. translating data into universal standards. C. convincing the information technology department of the value. D. explaining the reason for change to customers. Answer(s): B QUESTION: 171 Implementation of supply chain applications based on which of the following technologies is most likely to have the lowest fixed costs? A. Best of breed packages B. One integrated package C. Service-oriented architecture D. Software-as-a-service Answer(s): D QUESTION: 172 In the Supply Chain Operations Reference-model (SCORֲ®), the cash-to-cash cycle time for a manufacturing company is the number of days between which two of the following situations? https://Xcerts.com 46 CSCP A. Paying for raw materials and getting paid for the product B. Shipping the product from the warehouse and receiving it at the customer's location C. Paying for raw materials and sending an invoice to the customer D. Billing the customer and getting paid for the product Answer(s): A QUESTION: 173 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? A. Universal B. Computer-aided C. Modular D. Robust Answer(s): D QUESTION: 174 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: A. using benchmark data for products in the same product groups. B. incorporating results from market surveys. C. involving customers in the product design process. D. using electronic communications to receive customer complaints. Answer(s): C QUESTION: 175 Component commonality in manufacturing primarily allows a company to: A. optimize production runs for the components. B. use less-specialized machinery. C. decrease single-minute exchange of die processes. D. increase planning and control. Answer(s): A QUESTION: 176 What is the primary benefit of using modular rather than integral designs? https://Xcerts.com 47 CSCP A. Lower cost of manufacturing B. Increased product performance C. Greater responsiveness in marketing and production D. Reduced complexity of bills of material Answer(s): C QUESTION: 177 The process used to determine the impact of promotions, price discounts, and rebates on demand forecasts commonly is referred to as demand: A. planning. B. forecasting. C. aggregating. D. shaping. Answer(s): D QUESTION: 178 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? A. Customer acquisition B. Customer retention C. Customer dependency D. Strategic customer care Answer(s): B QUESTION: 179 When a company undertakes a win-back strategy without considering the profitability of customer accounts, it is neglecting which of the following key elements? A. Loyalty B. Scoring C. Segmentation D. Prospecting Answer(s): C QUESTION: 180 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? https://Xcerts.com 48 CSCP A. Reduce the cost of serving them. B. Target them for higher margin services. C. Target them for greater attention. D. Charge them for administrative services used. Answer(s): C QUESTION: 181 Which of the following warehousing tools enables wireless scanning of products? A. Magnetic stripes B. Universal product codes C. Radio frequency devices D. Local area network Answer(s): C QUESTION: 182 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? A. Manufacturer's volume flexibility B. Order-fulfillment lead times C. Distributors' order-fill rates D. Supply chain inventory days of supply Answer(s): C QUESTION: 183 The best way to manage a business relationship is to measure performance to: A. cost of ownership metrics. B. quality targets. C. on-time delivery. D. agreed-upon metrics. Answer(s): D QUESTION: 184 What are the steps in the supplier relationship process? A. Measure, fulfill, document, model B. Source, document, manage https://Xcerts.com 49 CSCP C. Measure, procure, fulfill, model D. Source, procure, fulfill, manage Answer(s): D QUESTION: 185 The strategy to implement supplier relationship management has been developed. The most appropriate next step is to: A. develop criteria for prospective partners. B. develop policies for alliances. C. select initial partners. D. conduct a pilot implementation. Answer(s): A QUESTION: 186 Allowing for organizational restructuring is an example of which of the following steps in creating successful strategic alliances among suppliers? A. Managing multifaceted relationships B. Negotiating a win-win deal C. Planning for change D. Conducting pulse checks Answer(s): C QUESTION: 187 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? A. There will be no effect. B. It will decline and then stabilize at a lower level. C. It will improve and then stabilize at a higher level. D. It will decline until sales erode. Answer(s): B QUESTION: 188 What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage? https://Xcerts.com 50 CSCP A. Reduced need for bar codes and radio frequency identification technology B. Reduced material handling costs C. Ease of control and count accuracy D. Maintain a cleaner shop floor Answer(s): C QUESTION: 189 The customer who provides point-of-sale data remains the sole decision-maker regarding order quantities when what type of inventory strategy is used? A. Continuous replenishment B. Advanced continuous replenishment C. Vendor-managed replenishment D. Quick response Answer(s): D QUESTION: 190 Which of the following statements about the use of bar code labels for product identification in the supply chain is true? A. They have been replaced by radio frequency identification tags. B. They can be read by devices 1 to 3 meters from the item. C. They facilitate the capture of information about the location of items. D. Each of the trading partners must apply a unique label. Answer(s): C QUESTION: 191 Inventory parameters established using analytic inventory techniques typically are based on balancing: A. supply and dependent demand. B. customer service and inventory costs. C. transportation and warehousing costs. D. inventory levels and decision-making costs. Answer(s): B QUESTION: 192 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 https://Xcerts.com 51 CSCP economic value added (EVA). This is an example of utilizing which of the following types of metrics? A. Activity based B. Stakeholder focused C. Financial sustainability D. Value chain Answer(s): C QUESTION: 193 Which of the following ISO standards is used to assist organizations with sustainable development? A. ISO 31000 B. ISO 14001 C. ISO 26000 D. ISO 9001 Answer(s): C QUESTION: 194 The mission of the global reporting initiative (GRI) is to provide a: A. comparison of key metrics for companies in the same industries across the globe. B. feasible business plan that can be shown to global potential investors. C. trusted and credible framework for reports regarding sustainability practices. D. transparent collaboration between non-profit organizations and governments. Answer(s): C QUESTION: 195 An effective procurement strategy for commodity products should focus on: A. driving down cost and reducing risk. B. spreading purchases equally across suppliers. C. selecting primary and alternate sources. D. selecting suppliers with value-added products. Answer(s): A QUESTION: 196 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 https://Xcerts.com 52 CSCP 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? A. Consolidate production outside the trading bloc to reduce total costs. B. Consolidate production within the trading bloc to reduce tariffs paid. C. Outsource the production of products with low sales volumes to reallocate capacity. D. Reassign products so that each is produced in a single facility within the trading bloc to get economies of scale. Answer(s): D QUESTION: 197 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? A. Inventory levels at the manufacturer will decrease. B. Lead times as seen by the customer will increase. C. Production efficiencies at the manufacturer will increase. D. Transportation costs as seen by the customer will increase. Answer(s): B QUESTION: 198 Which of the following processes would a company use to evaluate the risk profile for end-of-life planning for a product family? A. Distribution requirements planning B. Sales and operations planning C. Rough-cut capacity planning D. Production activity control Answer(s): B QUESTION: 199 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? A. Returns from customers will decrease. B. Number of supplier orders will increase. C. Number of customer orders will increase. D. Average supplier order size will increase. https://Xcerts.com 53 CSCP Answer(s): C QUESTION: 200 Which of the following actions is most likely to increase total supply chain risk? A. Standardizing components used in a product family B. Expanding operations to multiple locations C. Consolidating manufacturing locations D. Reducing the supplier base for commodity-type components Answer(s): C QUESTION: 201 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: A. do nothing. The company is not responsible for compliance of suppliers. B. replace the supplier as soon as possible with a compliant supplier. C. notify the supplier of non-compliance. D. require the supplier to become compliant. Answer(s): C QUESTION: 202 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? A. Achieving low cost through reaction B. Creating an adaptive supply chain community C. Reducing supply chain vulnerability D. Investing in redundancy Answer(s): B QUESTION: 203 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: A. increase. https://Xcerts.com 54 CSCP B. decrease. C. not change. D. become less predictable. Answer(s): A QUESTION: 204 Which of the following outcomes occurs when direct shipping is used instead of a distribution network? A. Outbound transportation cost is reduced. B. Inventory velocity is reduced. C. Order-fill rates are reduced. D. Inventory obsolescence is reduced. Answer(s): D QUESTION: 205 Which of the following factors typically is most important in successfully implementing sales and operations planning (S&OP)? A. Involvement of specialists from all functional groups within an organization B. Creation of a dedicated S&OP organizational unit C. Involvement and accountability at senior management level D. Focus on 3 months to 18 months in the future Answer(s): C QUESTION: 206 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? A. Complexity of the purchasing process B. Cost of the application software upgrades C. Management of variable lead times D. Resistance of material suppliers Answer(s): A QUESTION: 207 The United Nations Global Compact uses 10 guiding principles to: https://Xcerts.com 55 CSCP A. reduce uncertainty for multinational firms regarding legal, import/export, labor, and environmental standards across countries. B. set minimum levels of compliance across a broad range of transactional areas for businesses operating in multiple geographic regions. C. align the needs of businesses to increase profitability and the needs of individual countries to ensure their specific legal requirements are met. D. help ensure that markets, commerce, technology, and finance promote advancement of economies and societies everywhere. Answer(s): D QUESTION: 208 Which of the following sustainability tools is most appropriate for managing environmental compliance with regulatory requirements? A. ISO 14000 B. Global Reporting Initiative (GRI) C. ISO 26000 D. United Nations Global Compact Answer(s): A QUESTION: 209 A firm has discovered a product quality issue. What should be the first step in responding to this issue? A. Determine the root cause of the quality issue. B. Separate the non-conforming products. C. Trace the location of the faulty product in the supply chain. D. Replace faulty products when they are returned by the end user. Answer(s): C QUESTION: 210 Which of the following activities typically would be an appropriate application of the ISO 31000 Risk Management Principles and Guidelines? A. Calculating a risk index for each facility B. Establishing external risk communications processes C. Projecting the ability of a facility to recover from an event D. Preparing for risk management accreditation Answer(s): B https://Xcerts.com 56 CSCP QUESTION: 211 Direct shipment distribution typically offers which of the following advantages? A. Risk pooling is facilitated. B. Demand variability is reduced. C. Service levels are increased. D. Lead times are reduced. Answer(s): D QUESTION: 212 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? A. Direct shipment from plant to customers B. Shipment from a central distribution warehouse C. Shipment through a multi-echelon distribution network D. Outsourcing the distribution function Answer(s): A QUESTION: 213 The most cost-effective way to increase the velocity of goods in a supply chain is to: A. improve the way the supply chain handles goods that are not in motion. B. switch to a faster mode of transportation. C. establish warehouses near major retail outlets. D. subcontract with multiple third-party logistics (3PL) providers who are located at strategic locations. Answer(s): D Explanation: The third-party logistics provider is better positioned to adapt to different technologies used by the company's clients. This potentially expands the company's customer base at a reduced cost. QUESTION: 214 In a reverse supply chain, which of the following tools enables forecasting the usability of each part in the returned product? A. Reverse network design B. Warranty return rate analysis C. A disassembly bill of material (BOM) https://Xcerts.com 57 CSCP D. Design for service Answer(s): C Reference: https://help.sap.com/doc/474a13c5e9964c849c3a14d6c04339b5/100/enUS/583fb221a06445daa78038179fa27e9e.html QUESTION: 215 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? A. Speculation B. Flexibility C. Product shifting D. Hedging Answer(s): D Explanation: Hedge inventory is not a commonly used term in organizations, but many organizations do practice hedging when it comes to inventory. Hedging involves managing risk by building, buying, or contractually guaranteeing additional inventory at a set price if supply could be threatened or prices could rise. These decisions involve speculating on events such as the weather, the economy, labor strikes, civil strife, or political actions. QUESTION: 216 Which of the following actions by trading partners will likely reduce the goods that will be processed by the reverse supply chain? A. Contracting with a third party to process returned goods B. Designing products that are easy to disassemble C. Working to delay regulations that require accepting returns D. Providing support and service for proper product use Answer(s): D QUESTION: 217 In order to bring a new product to market quickly while maximizing customer value and minimizing costs, a company should leverage: A. top performing suppliers in the areas of quality, cost, and availability. B. crowdsourcing for design capital requirements. C. e-commerce trading methods. D. concurrent engineering or participative design. https://Xcerts.com 58 CSCP Answer(s): A QUESTION: 218 Quality function deployment (QFD) is a methodology designed to ensure that: A. quality is maintained at all levels of the organization. B. suppliers providing high-quality parts are certified. C. defective products do not reach customers. D. customer requirements are understood and met. Answer(s): D QUESTION: 219 Which of the following objectives is a major principle of theory of constraints (TOC) accounting when applied to a supply chain? A. Total inventory reduction B. Maximize process utilization C. Maximize revenue generation D. Product design simplification Answer(s): D QUESTION: 220 The design process by which a firm structures and manages the supply chain to achieve optimization is called: A. an information network. B. network planning. C. smoothing. D. logistical planning. Answer(s): C QUESTION: 221 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? A. Place smaller orders with suppliers. B. Pool inventory and the forecast. C. Open more outlet stores. https://Xcerts.com 59 CSCP D. Negotiate lower costs with suppliers. Answer(s): B QUESTION: 222 For an item with high profit impact and low supply risk, what would be a likely procurement strategy to support the overall supply strategy? A. Ensure supply, even at a premium cost. B. Vertically integrate the supply chain. C. Exploit purchasing power and minimize cost. D. Form a strategic sourcing group. Answer(s): C Reference: https://www.mindtools.com/pages/article/newSTR_49.htm QUESTION: 223 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? A. Supplier's agility B. Supplier's certification status C. Quoted delivery time D. Quoted total price Answer(s): A QUESTION: 224 Using financial tools to minimize the impact of currency fluctuations is an example of what type of risk management strategy? A. Mitigation B. Recovery C. Prevention D. Diversification Answer(s): A QUESTION: 225 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? https://Xcerts.com 60 CSCP A. Pull replenishment B. Strategic partnership C. Revenue sharing D. Vendor-managed inventory (VMI) Answer(s): D Explanation: In the vendor-managed inventory (VMI) model, the vendor, through mutual agreement, has access to the customer's POS inventory data for items they supply. The vendor is responsible for maintaining the inventory level required by the customer and performs actual resupply. The inventory is counted, damaged or outdated goods are removed, and the inventory is restocked to predefined levels. The vendor obtains a receipt for the restocked inventory and accordingly invoices the customer. QUESTION: 226 A company has a single manufacturing facility. It distributes the products through retail stores located in various regions. Which of the following distribution strategies will minimize the company's warehousing costs? A. Utilizing third-party logistics (3PL) providers B. Pooling inventory in regional warehouses shipping to multiple retail C. Shipping directly from the manufacturing facility to retail locations D. Cross-docking at regional warehouses shipping to multiple retail stores Answer(s): B QUESTION: 227 A firm has identified key benefits for developing a strategic alliance and has selected appropriate supply chain partners. Which of the following actions should the firm take to build a successful alliance with a supplier who is also a competitor? A. Establish processes to control shared information. B. Negotiate contracts that maximize the firm's profits. C. Instruct employees to ignore the competitive aspect of the relationship. D. Analyze market for competitive advantage. Answer(s): D QUESTION: 228 Which of the following considerations are essential to a company's advanced supply chain strategy that utilizes cloud computing? A. Understanding the history and evolution of supply chain technologies https://Xcerts.com 61 CSCP B. Understanding the complexity of information services configuration C. Understanding the content and scope of a company's cloud implementation D. Understanding the product offering of local and global internet service providers (ISPs) Answer(s): B QUESTION: 229 Which of the following supply chain fulfillment strategies is more commonly associated with ecommerce enabled supply chains? A. Push system B. Parcel shipments C. Small number of niche customers D. Fewer reverse logistics activities Answer(s): B QUESTION: 230 Which of the following distribution strategies is characterized by items flowing through a warehouse in an almost continuous manner? A. Cross-docking B. Direct shipment C. Multilevel D. One-piece flow Answer(s): A Explanation: Cross-docking is a distribution technique in which items are brought into a distribution center for immediate dispatch. Instead of being received and stored away, these items are loaded into the distribution center's sorting system or are taken directly to shipping for sorting and dispatch. This may require the vendor to perform some additional value-added step, such as hanging garments on hangers, repackaging the item for easier sorting, or adding labels such as a price tag to the item. QUESTION: 231 A company's market is characterized be frequently changing product demand and pressure for short lead times. The company also faces intense competition. To enhance its competitiveness, the company should stress which of the following strategies? A. Increase the labor force B. Increase work-in-process (WIP) inventory C. Reduce cycle times D. Match competitors' prices https://Xcerts.com 62 CSCP Answer(s): C QUESTION: 232 An effective company strategy results when combining innovative products with: A. an efficient supply chain. B. a responsive supply chain. C. accurate forecasts. D. high inventory levels. Answer(s): A QUESTION: 233 Which type of purchase is best suited for single sourcing with a preferred supplier to reduce supply chain risk? A. Strategic B. Routine C. Bottleneck D. Leverage Answer(s): A QUESTION: 234 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? A. Strategic sourcing B. Capital tooling C. New employee training D. Fixed plant Answer(s): A QUESTION: 235 A new supplier in a different country will offer substantial savings on existing components. Which part of the organization should be consulted to ensure this is a good strategy for the firm? A. Logistics B. Human resources C. Marketing D. Information technology https://Xcerts.com 63 CSCP Answer(s): A QUESTION: 236 Which of the following responses to risk best describes the evolving concept of flexibility in supply chain risk management? A. The practice of adjusting capacities in a manufacturing environment B. The ability to react quickly to changes or events while maintaining customer service levels C. The ability to produce high volume stock keeping units (SKUs) in multiple locations D. The ability to produce complex configurations of a product within the standard lad time Answer(s): C QUESTION: 237 Which of the following principles is included in the United Nations (UN) Global Compact? A. Trading blocs B. Anti-corruption C. Risk management D. Accounting standards Answer(s): B Reference: https://www.unglobalcompact.org/what-is-gc/mission/principles QUESTION: 238 Which of the following types of risk typically would be most difficult to plan for and mitigate? A. Currency fluctuation B. Forecast error C. Geopolitical D. Supplier performance Answer(s): C QUESTION: 239 Due diligence for conflict- or high-risk-materials should include which of the following processes: A. a method to track the country of origin of materials when they leave the country. B. a system of controls and transparency regarding the traceability of materials through the supply chain. C. certification primarily by companies that are selling directly to consumers about the firm's tier one suppliers. https://Xcerts.com 64 CSCP D. ability to provide documentation of the source materials when they are imported into United Nations countries. Answer(s): B QUESTION: 240 The Delphi forecasting method offers which of the following advantages? A. It is based on widely used statistical formulas. B. It compensates for the individual biases of the participants. C. It assigns more weight to the demand from key customers. D. It reduces the risk that a few individuals will dominate the process. Answer(s): D Reference: https://s4be.cochrane.org/blog/2017/11/15/the-delphi-technique/ QUESTION: 241 Which of the following product records is internationally recognized for providing detailed categorization and descriptions? A. Stock keeping unit (SKU) B. Electronic product code (EPC) C. Harmonized system classification code D. Universal product code (UPC) Answer(s): C Reference: http://www.wcoomd.org/-/media/wco/public/global/pdf/topics/nomenclature/activities-andprogrammes/30-years-hs/hs-compendium.pdf?la=en QUESTION: 242 When relocating production offshore, volatility in which of the following areas most likely would impact profitability without modifying product landed costs? A. Labor costs B. Currency exchange rates C. Commodity prices D. Product quality Answer(s): B QUESTION: 243 Variability in product design can best be reduced by: https://Xcerts.com 65 CSCP A. initiating 100% product inspection. B. outsourcing the design process. C. broadening design specifications. D. applying Six Sigma principles. Answer(s): D QUESTION: 244 Which of the following factors is most likely to slow the adoption of collaborative planning, forecasting, and replenishment (CPFR)? A. The reluctance to share detailed information B. The cost of electronic data interchange services C. The risk that changed processes will disrupt operations D. The risk of security breaches Answer(s): A QUESTION: 245 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? A. Sole sourcing B. Multiple sourcing C. Long-term contracting D. Strategic partnering Answer(s): D QUESTION: 246 Which of the following statements describes a continuous replenishment strategy in a retail environment? A. Retailers make replenishment decisions. B. Retailers prepare individual orders and share sales data with vendors to improve customer service. C. Vendors use sales data and prepare shipments to maintain the desired level of inventory. D. Vendors take full control of inventory policy. Answer(s): C QUESTION: 247 https://Xcerts.com 66 CSCP A supplier disputes a low rating generated by a company's enterprise resources planning (ERP) system. Which of the following actions by the purchasing agent is most appropriate? A. Advise the ERP information technology manager that there is a flaw in the rating system. B. Scrap the vendor rating system until the company can figure out what is wrong. C. Compare the vendor and company detail records, and interview company employees who handled the data. D. Tell the supplier that, regardless of the disputed claims, the supplier must improve performance. Answer(s): C QUESTION: 248 On-time delivery performance in the supply chain can best be improved by aligning required capacity with what type of capacity? A. Demonstrated B. Rated C. Budgeted D. Theoretical Answer(s): A QUESTION: 249 In an assemble-to-order manufacturing environment, the master production schedule is typically the schedule of: A. resources. B. customer orders. C. components and subassemblies. D. the final assembly. Answer(s): C QUESTION: 250 Which of the following activities occurs as part of the sales and operations planning process? A. Time fences are matched to master production schedule horizons. B. The next quarter's forecasts are presented by sales staff to finance and operations personnel at the final meeting. C. Strategic plans are adjusted based on changing operating situations. D. Plans are converted to financial projections and capacity requirements. https://Xcerts.com 67 CSCP Answer(s): D QUESTION: 251 The most appropriate frequency for the sales and operations planning process typically is: A. weekly. B. monthly. C. quarterly. D. annually. Answer(s): B QUESTION: 252 Successfully using a sales and operations planning (S&OP) process requires which of the following actions? A. Focusing on performance of the past 12 to 18 months B. Implementing a unified cross-functional process C. Implementing bottom-up decision making D. Aligning the forecast to the annual budget Answer(s): B QUESTION: 253 A master production schedule serves a company best by functioning as a: A. dispatch list. B. forecast system buffer. C. priority planning tool. D. supplier scheduling system. Answer(s): C QUESTION: 254 Which of the following processes ensures that functional plans are consistent? A. Strategic planning B. Sales and operations planning C. Project planning D. Master scheduling Answer(s): B QUESTION: 255 https://Xcerts.com 68 CSCP The implementation of major enterprise-wide changes to eliminate or significantly reduce waste is related to which of the following concepts? A. Kaizen B. Kanban C. Six Sigma D. Lean Answer(s): D QUESTION: 256 An advanced planning system differs primarily from enterprise resources planning by: A. optimizing operations scheduling. B. translating plans into action. C. concentrating on production. D. linking to the transportation management system. Answer(s): A QUESTION: 257 A company that is effectively managing its cash will have which of the following conditions? A. Low accounts receivable, low inventory, high accounts payable B. High accounts receivable, low inventory, high accounts payable C. Low accounts receivable, high inventory, low accounts payable D. High accounts receivable, high inventory, low accounts payable Answer(s): A QUESTION: 258 A juice manufacturer wants to determine the time required to convert a dollar spent on materials into a dollar received in sales. Which of the following metrics would be most appropriate to make this determination? A. Activity-based costing B. Inventory carrying cost C. Cash-to-cash cycle time D. Average financial turnover Answer(s): C QUESTION: 259 https://Xcerts.com 69 CSCP Which of the following activities is the most appropriate use of an advanced planning and scheduling system? A. Selecting the target market for a product B. Optimizing transportation routes C. Creating a daily demand forecast D. Identifying constraints within a facility Answer(s): D QUESTION: 260 A company that manufactures complex mechanical assemblies to customer order and ships them directly to the customer is implementing manufacturing cells. The benefit most likely to result from this effort is a reduction in the: A. number of component shortages. B. production planning horizon. C. time to fill customer orders. D. response time to a request for quote. Answer(s): C QUESTION: 261 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? A. Multiple plants in multiple industries B. Multiple plants in the same supply chain C. Multiple supply chains of different products D. Multiple supply chains of the same product Answer(s): B QUESTION: 262 Which of the following outcomes is an expected benefit of effectively implementing supply chain event management software? A. Inventory data are captured in real time. B. Files are transferred from one corporation to another. C. Notifications of variances from plans are triggered. D. Communication protocols between companies are standardized. Answer(s): C https://Xcerts.com 70 CSCP QUESTION: 263 The practice of purchasing items in large quantities and requesting that shipments be delivered directly to customers is referred to as: A. drop shipping. B. cross-docking. C. breaking bulk. D. freight equalization. Answer(s): A QUESTION: 264 Which of the following types of lead times is related most closely to a supplier performance measure? A. Fulfillment B. Replenishment C. Overall D. Process Answer(s): B QUESTION: 265 Which of the following strategies is most appropriate for managing unknown risks in a global supply chain? A. Vertical integration B. Technology integration with suppliers C. Investing in redundancy D. Strengthening supplier relationships Answer(s): C QUESTION: 266 Which of the following performance indicators can be used to measure the effectiveness of a vendor-managed inventory program? A. Number of inventory receipts B. Inventory usage C. Inventory returns D. In-stock rate Answer(s): D https://Xcerts.com 71 CSCP QUESTION: 267 Which of the following statements best identifies the value of using a supplier rating system? A. It provides an objective means for a company to determine outstanding suppliers. B. It allows customers to post chargebacks to suppliers. C. It offers a company an effective way to control suppliers' delivery processes. D. It ensures that all suppliers are using the same quality standards to manufacture products. Answer(s): A QUESTION: 268 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? A. Discuss ways to raise the ratings for the next review period. B. Tell the suppliers they are on probation for 3 months. C. Immediately cancel outstanding contracts with those suppliers. D. Ask the suppliers to explain the poor performance. Answer(s): A QUESTION: 269 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? A. Require the supplier to submit weekly cycle count reports. B. Require the supplier to implement a sales and operations planning process. C. Map the supplier's supply chain to identify risks and opportunities. D. Conduct an ISO 14001 audit of the supplier. Answer(s): C QUESTION: 270 An organization is partnering with a supplier. The most appropriate tool to ensure that the supplier has the necessary capabilities is: A. a supplier-input-process-output-customer diagram. B. supplier certification. C. supplier relationship management. https://Xcerts.com 72 CSCP D. supplier performance evaluation. Answer(s): B QUESTION: 271 A company most likely would implement a supplier certification program to: A. improve the supplier's procurement process. B. abide by ISO standards. C. validate the supplier's compliance with requirements. D. implement point-of-sale (POS) terminals. Answer(s): C QUESTION: 272 Supplier certification procedures verify that a supplier: A. has attained ISO certification. B. implements, documents, and improves procedures to fulfill customer requirements. C. tracks manufacturing processes, bills of material (BOMs) and routings. D. manufactures products to specifications shown on engineering documents and bills of material. Answer(s): B QUESTION: 273 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: A. enterprise resources planning. B. supply chain event management. C. supplier relationship management. D. a transportation management system. Answer(s): B QUESTION: 274 Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange? A. Expensive material that is critical to the finished good B. Exp