APICS

CSCP
APICS Certified Supply Chain Professional
QUESTION & ANSWERS

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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

Correct Answer: C

QUESTION 2

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.

Correct Answer: C

QUESTION 3

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

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D. Decline

Correct Answer: D

QUESTION 4

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 managemnte.
C. collaboration.
D. outsourcing.

Correct Answer: C

QUESTION 5

Which of the following costing approaches directly reflects logistics performance?

A. Activity-based
B. Total landed
C. Standard
D. Weighted average

Correct Answer: D

QUESTION 6

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

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Correct Answer: B

QUESTION 7

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.

Correct Answer: B

QUESTION 8

The diagram below shows the process of manufacturing of item D and the capacity of each operation.
Each operation requires one unit from the previous step.

Which of the following is the total production throughput?

A. 25 units/hr.
B. 27 units/hr.
C. 65 units/hr.
D. 84 units/hr.

Correct Answer: B

QUESTION 9

The primary reason to establish a customer-dedicated warehouse is to:

A. integrate and consolidate an assortment of inventory.

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B. position inventory to improve response time.
C. balance inventory with consumption.
D. equalize inbound and outbound logistics costs.

Correct Answer: B

QUESTION 10

Which of the following goals is most likely to be achieved through the implementation of an enterprise
resource planning (ERP) system?
A. Collect information of future sales forecasts
B. Provide visibility of supply chain data
C. Determine most efficient way to produce and assemble products
D. Execute collaborative planning, forecasting, and replenishment (CPFR)

Correct Answer: C

QUESTION 11

A railway company investing in a signaling system to help identify and restore service quickly is an
example of:
A. risk resilience
B. risk tolerance
C. risk appetite
D. risk mitigation

Correct Answer: D

QUESTION 12

A company is considering changing its manufacturing strategy from engineer-to-order (ETO) to make-
to-order (MTh). Which of the following risks should the company be careful to consider?
A. Decreasing manufacturing efficiency
B. Increasing work in process (WIP) inventory
C. Increasing raw material costs
D. Decreasing customer satisfaction

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Correct Answer: B

QUESTION 13

A master scheduler receives a new order with a due date inside the demand time fence (DTF). The
best response is to:
A. accept the order and schedule
B. reject the order and inform sales
C. identify the impact on current orders and escalate
D. accept the order but change the due date

Correct Answer: C

QUESTION 14

A company wants to reduce lead time while minimizing inventory costs. Which of the following
approaches is most appropriate to implement?
A. Make-to-stock
B. Lean
C. Kaizen blitz
D. Six sigma

Correct Answer: B

QUESTION 15

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.

Correct Answer: A

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QUESTION 16

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

Correct Answer: D

Explanation/Reference:

Reference:
https://www.google.com/url?sa=t&rct=j&a=&esrc=s&source=web&cd=&cad=rja&uact=El&ved=2ah
UKEwi
9013X1P7xAhW9EluAKHYMkCBOOFjAAegQ1BxAD&url=https://www.researchgate.net/profile/Mohame
d Mourad Lafifi/nost% 2FWhere can I find SCOR metrics any level to use in a supply chain
evaluation/attachment/5i9lad2c760009000110200e/AS:949469470666249@1603302572650/downloa
d/Supply-Chain+Benchmarking+with+SCOR.pdf&usg=A0vVaw33LXa2CKgYsaM6Hie7pR1P

QUESTION 17

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

Correct Answer: A

QUESTION 18

What is the primary benefit of using a central storage warehouse for all components rather than using
point-of-use storage?
A. Reduced need for bar codes and radio frequency identification technology
B. Reduced material handling costs
C. Ease of control and count accuracy
D. Ease of control and count accuracy
E. Maintain a cleaner shop floor

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Correct Answer: C

QUESTION 19

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

Correct Answer: A

QUESTION 20

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

Correct Answer: D

QUESTION 21

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

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Correct Answer: D

QUESTION 22

Which of the following actions typically is most important when building a collaborative supply chain?
A. Investing sufficient capital
B. Building mutual trust
C. Integrating information systems
D. Developing a common culture

Correct Answer: B

QUESTION 23

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.

Correct Answer: D

QUESTION 24

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

Correct Answer: A

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QUESTION 25

Successful implementation of a new supply chain process first requires:

A. manipulation of data
B. a substantial investment in information technology
C. a well-defined production planning process
D. open communication with stakeholders

Correct Answer: C

Explanation/Reference:

Reference: httos://www.onerational-excellence-consuitinq.com/onex-articles/how-to-develon-a-sunnly-
chain-strategv

QUESTION 26

A company currently produces a major component and is considering purchasing the component from
a foreign supplier. Assuming they were to purchase from the foreign supplier, which of the following
would most likely impact the domestic manufacturing operations?
A. Direct cost of the component
B. Supplier lead time fluctuations
C. Accuracy of supplier forecasting
D. Transportation cost from the supplier

Correct Answer: B

QUESTION 27

Which of the following situations typically requires extended storage?

A. Products with low demand
B. Product consolidation
C. Modular products
D. Seasonal products

Correct Answer: A

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QUESTION 28

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.

Correct Answer: D

QUESTION 29

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.

Correct Answer: D

QUESTION 30

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.

Correct Answer: A

QUESTION 31

Overall supply chain risk may be increased by implementing which of the following strategies?
A. Single sourcing a product that makes the highest annual profit
B. Outsourcing products that are not well suited to a company's operations

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C. Identifying multiple sources for a product with the potential for supply chain disruption
D. Internally manufacturing products with high levels of technical intellectual property

Correct Answer: C

Explanation/Reference:

Reference: httos://global.hitachi-solutions.com/blog/sunly-chain-risk-management

QUESTION 32

Which of the following metrics is typically the most appropriate measure of product and service
quality?
A. Internal inspection
B. Product performance
C. Customer perception
D. Warranty claims

Correct Answer: D

Explanation/Reference:

Reference: http://www.apics.org/docs/default-source/scc-non-research/ccor-metrics-framework.pdf

QUESTION 33

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.

Correct Answer: C

QUESTION 34

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.

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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.

Correct Answer: A

Explanation/Reference:

Reference: httos:Mimm.org/wo-content/unloads/2019/12/Logistics-and-Warehousing-Management.ndf
(115, 116)

QUESTION 35

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.

Correct Answer: B

QUESTION 36

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

Correct Answer: A

QUESTION 37

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:

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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.

Correct Answer: D

QUESTION 38

A firm produces goods that are subject to frequent customer design changes. The products are sold to
a few distributors who sell to a large number of retailers. In this situation, which of the following
represents the best approach for which the firm should produce those goods?
A. Using a push strategy to replenish the distributors
B. Using a pull strategy based on retailer sales
C. Using a push strategy based on retailer sales
D. Using a pull strategy to replenish the distributors

Correct Answer: C

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