APICS CSCP Study Guides 2021

NEW QUESTION 1
A firm expands distribution of its products into additional countries. Some customers initiate order batching, which could lead to which of the following outcomes?

• A. Bullwhip effect
• B. Price fluctuations
• C. Rationing
• D. Better forecasting

Answer: A

NEW QUESTION 2
A distribution requirements planning system is implemented primarily to monitor or manage:

• A. supplier capacity.
• B. customer demand.
• C. inventory replenishment.
• D. demand variation.

Answer: C

NEW QUESTION 3
The primary benefit a company is likely to achieve when setting time fences is:

• A. reducing lead time.
• B. providing a steady schedule for suppliers.
• C. interpreting forecast properly.
• D. maintaining a stable flow.

Answer: D

NEW QUESTION 4
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: C

NEW QUESTION 5
Use of a centralized distribution center rather than a decentralized distribution network typically results in which of the following consequences?

• A. Distribution system overhead is higher.
• B. Customer delivery time is shorter.
• C. Total transportation costs are lower.
• D. Safety stock levels are lower.

Answer: D

NEW QUESTION 6
Standardization of supply chain processes is most likely to facilitate achievement of which of the following activities?

• A. Reducing the total cost of ownership
• B. Tracking the effects of improvement initiatives
• C. Creating project consensus
• D. Understanding of operational metrics

Answer: B

NEW QUESTION 7
Which of the following actions is most likely to improve the cash-to-cash cycle time?

• A. Find suppliers with lower total cost of ownership (TCO)
• B. Implement vendor-managed inventory (VMI) with key suppliers
• C. Implement vendor-managed inventory (VMI) with key customers
• D. Establish targeted promotions for the most profitable market segments

Answer: B

NEW QUESTION 8
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: A

NEW QUESTION 9
A company that produces standardized products and sells them through retailers via a responsive transportation system has decided to expand its sales with an online store for customized products. Which of the following distribution strategies would be the most appropriate for the business-strategy change?

• A. Local distribution centers serving retailers and online sales
• B. Centralized cross-docking facilities serving retailers and online sales
• 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: C

NEW QUESTION 10
Which of the following constraints is most important to consider when adapting a vertical integration strategy?

• A. Location of suppliers
• B. Location of customers
• C. Capital requirements
• D. Size of existing manufacturing plant

Answer: C

NEW QUESTION 11
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: A

NEW QUESTION 12
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: D

NEW QUESTION 13
Which of the following procurement strategies is most appropriate for a high-risk, high- value item?

• A. Procuring in bulk to take advantage of volume pricing
• B. Using an electronic trading platform to source items securely
• C. Entering into vendor managed inventory (VMI) agreement
• D. Creating a close collaborative relationship with the supplier

Answer: D

NEW QUESTION 14
A manufacturer of consumer goods has purchased one of its distributors. The distributor's inventory system is archaic and will not integrate into the manufacturer's enterprise resources planning (ERP) system. Which of the following approaches is the most appropriate long-term solution for the manufacturer?

• A. Buy a complete ERP system that includes seamlessly integrated distribution.
• B. Buy a warehouse management system that integrates into the ERP system.
• C. Run the existing warehouse inventory system and update the ERP system manually.
• D. Hire a software contractor to write an interface with batch update to the ERP system.

Answer: B

NEW QUESTION 15
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: C

NEW QUESTION 16
Which of the following situations is a consequence of global operations?

• A. Decreased logistic cost
• B. Increased logistic complexity
• C. Reduced product variety
• D. Longer lead times

Answer: B