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APICS
Exam Questions CSCP
Certified Supply Chain Professional

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NEW QUESTION 1
- (Topic 1)
Continuous improvement is best described as:

A. a never-ending effort to expose and eliminate root causes of problems.

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: A

NEW QUESTION 2
- (Topic 1)
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: C

NEW QUESTION 3
- (Topic 1)
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: D

NEW QUESTION 4
- (Topic 1)
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: B

NEW QUESTION 5
- (Topic 2)
Which of the following strategies would increase overall supply chain risk?

A. Single sourcing a product that makes the highest annual profit

B. Outsourcing a product that is not well suited to your operations
C. Identify multiple sources for a product that has a potential for supply chain disruption
D. Internally manufacturing a product that has a high level of technical intellectual property

Answer: A

NEW QUESTION 6
- (Topic 3)
The most significant reason for altering supply chain management practices in an organization would be a change in its:

A. executive management.
B. corporate strategy.
C. profitability of operations.
D. financial position.

Answer: B

NEW QUESTION 7
- (Topic 3)
Which of the following outcomes is an advantage of automating the request-for-quote process?

A. Reducing cycle time

B. Disposing of excess inventories
C. Centralization of product service content

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D. Enabling contract management

Answer: A

NEW QUESTION 8
- (Topic 3)
Which of the following behaviors is appropriate for a progressive company that is responding to changes in its supply chain?

A. Pursuing cost reduction continuously

B. Developing multiple supply chains for different product lines
C. Ensuring demand before committing to a change in the supply chain
D. Designing products for maximum lifetime

Answer: B

NEW QUESTION 9
- (Topic 3)
Customer demand is 120 units per week. The company works on a 9-hour shift per day, 5- day per week basis. Each shift has a ½-hour lunch break and two
15-minute coffee breaks. The cycle time is 12 minutes. To meet demand, production must occur at the rate of one unit every:

A. 12 minutes.
B. 20 minutes.
C. 22.5 minutes.
D. 28 minutes.

Answer: B

NEW QUESTION 10
- (Topic 3)
Measurement of service to the customer should consider which of the following strategic priorities?

A. Cash flow
B. Responsiveness
C. Order cycle time
D. Forecast accuracy

Answer: B

NEW QUESTION 11
- (Topic 3)
Organizations that change from a traditional purchasing perspective to a supply chain perspective most likely will adopt techniques related to:

A. product pricing.
B. value stream analysis.
C. centralized decision making.
D. sourcing multiple suppliers.

Answer: B

NEW QUESTION 12
- (Topic 3)
A firm has increased finished-goods inventories for several products to compensate for increased variability in demand. The firm analyzed shipment data and
determined that the variability was due to a few customers placing large orders for single shipments to obtain discounts. Which of the following actions is the firm
most likely to take to maintain sales and reduce variability in demand?

A. Reducing discounts for large orders

B. Encouraging high-volume customers to place blanket orders
C. Implementing extrinsic forecasting methods
D. Increasing the level of safety stock on high-volume products

Answer: B

NEW QUESTION 13
- (Topic 3)
A company used Global Reporting Initiative guidelines to complete a self-assessment. Which of the following actions would be the most appropriate next step?

A. Share information with all stakeholders

B. Obtain top management support
C. Identify action items
D. Conduct gap analysis

Answer: D

NEW QUESTION 14
- (Topic 3)

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

A. average costing.
B. standard costing.
C. last in first out (LIFO) costing.
D. first in first out (FIFO) costing.

Answer: B

NEW QUESTION 15
- (Topic 3)
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 16
- (Topic 3)
A company uses cash-to-cash cycle time to assess how long it takes from:

A. receiving inventory from the supplier to paying the invoice from the supplier.
B. receiving inventory from the supplier to invoicing the customer.
C. paying the supplier for inventory received to receiving payment from the customer.
D. invoicing a customer to receiving payment from the customer.

Answer: C

NEW QUESTION 17
- (Topic 3)
Outsourcing is most appropriate when a product is:

A. modular and independent of knowledge and capacity.

B. modular and dependent on knowledge and capacity.
C. integral and independent of knowledge and capacity.
D. integral and dependent on knowledge and capacity.

Answer: A

NEW QUESTION 18
- (Topic 3)
Which two of the following tools should be used with an enterprise resources planning system to build realistic supply chain models and to plan the most profitable
flow of goods across the chain?

A. An advanced planning and scheduling system and simulators

B. An inventory planning and management system and simulators
C. A vendor managed inventory system and customer relationship management
D. Customer activity planning and logistics management

Answer: A

NEW QUESTION 19
- (Topic 3)
Which of the following circumstances best describes a roadblock to implementing customer relationship management and supplier relationship management?

A. Concern about conflicts of interest with partners in the supply chain

B. Lack of defined industry standards
C. Deterioration of customer service levels
D. Increased access to information for supply chain partners

Answer: A

NEW QUESTION 20
- (Topic 3)
The logistics value proposition involves matching:

A. identification of appropriate sourcing partners with service reliability metrics.

B. activity-based costing practices with supply chain financial strategy.
C. cost minimization practices with balanced scoreboard performance.
D. operating competency and commitment with key customer requirements.

Answer: D

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NEW QUESTION 21
......

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