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Quiz Session - Attempts With Random Questions

APICS CSCP Exam Questions

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1.

Which is an agreement with a supplier for one year that sets pricing, sets terms on a continuous supply of material, and lays out other future requirements?

  • Annualized contract

  • Fixed-price-incentive-fee contract

  • Firm fixed price contract

  • Service level agreement (SLA)

Correct answer: Annualized contract

Annualized contracts set terms for a period of one year. An example of an annualized contract is a company buying containerized coffee beans sets and agreeing with their supplier that they will sell up to 50 containers at a fixed rate effective for one year. 

Fixed-price-incentive-fee contracts are fixed-price contracts that pay the seller a specified amount. Service Level Agreements (SLAs) document performance expectations between customers and suppliers on an ongoing basis. 

2.

Which is the practice of using the four Ps (product, pricing, placement, and promotion) and other market variables to influence the demand?

  • Demand shaping

  • Four P execution

  • Marketing

  • Demand planning

Correct answer: Demand shaping

Demand shaping uses the four Ps (4 Ps) to influence and better match demand against supply. Demand planning is used to develop business, family, and product forecasts. Marketing is a business activity designed to communicate information regarding a company's products and services to potential or existing customers.

3.

In risk response planning, what is malfunction recovery?

  • The execution of a plan to correct a disrupted process 

  • Taking actions to stop a potential error before it happens 

  • The process of shifting risk to another party

  • Understanding and taking efforts to reduce a risk potential 

Correct answer: The execution of a plan to correct a disrupted process 

Malfunction recovery is the execution of a plan to correct a disrupted process.  

Taking actions to stop a potential error before it happens would be a preventative action. The process of shifting risk to another party is called risk transference. Understanding and taking efforts to reduce risk potential is called risk mitigation.

4.

 A company producing electronic calculators focuses on eliminating raw materials and components that can be hazardous to the environment. What is this an example of?

  • Environmentally sensitive engineering

  • Total waste management (TWM)

  • Green procurement

  • Design for logistics

Correct answer: Environmentally sensitive engineering

Environmentally sensitive engineering is designed with consideration of how a product or its packaging will ultimately be disposed of. 

Total Waste Management (TWM) is finding solutions to waste issues but also focusing on financial elements and the business case. Green procurement is supplier selection criteria based on environmental standards or the practice of prequalifying suppliers based on specifications related to their environmental practices. Design for logistics considers aspects of a product's movement and storage. 

5.

During the COVID-19 pandemic, there was a spike in customer demand for toilet paper. In response, retail stores hurried to increase stock of toilet paper, distributors increased orders, and manufacturers increased output. This caused the excess to build up when demand was tempered. What is this an example of?

  • The bullwhip effect

  • Supply chain risk

  • Supply chain resilience

  • Demand planning

Correct answer: The bullwhip effect

The bullwhip effect can cause inventory to quickly move from being backordered to being excessive. 

Supply chain risk is the variety of possible events and their outcomes that could impact the flow of goods, resulting in quantitative or qualitative loss for the supply chain. Supply chain resilience is the ability of a supply chain to anticipate, to create plans to avoid or mitigate, and/or to recover from disruptions to supply chain functionality. Demand planning is the combination of statistical forecasting and judgment to construct demand estimates for products and services. 

6.

The internet structure used for business-to-business (B2B) commerce and business-to-consumer (B2C) sales contains a series of layers. One of the layers is the application layer. Which of the following can be found in the internet structure’s application layer?

  • Web shopping carts and billing

  • Security systems such as firewalls

  • Intermediaries such as brokers and service providers

  • All buying and selling activities

Correct answer: Web shopping carts and billing

Web shopping carts and billing can be found in the internet structure’s application layer. The application layer includes “all web-specific applications and tools for creating interactive websites.”

The foundation layer contains security systems such as firewalls. The aggregation layer contains intermediaries such as brokers and service providers. The business layer contains all buying and selling activities.

7.

There are four levels of CRM integration. Which level is categorized by multiple, unlinked processes where data is not shared efficiently?

  • Disconnected technology

  • Interfacing technology

  • Internally integrated technology

  • Multi-enterprise technology

Correct answer: Disconnected technology

There are four levels of CRM integration. "Disconnected Technology" is categorized by multiple processes that are not linked. Data is not shared across the processes and results in misalignment of objectives and no clear processes. "Interfacing technology" does have multiple systems that can communicate, but not totally integrated, and does attempt to align planning processes across all supply chain partners. "Internally Integrated Technology" is identified by one system which is integrated across various functional areas within an organization. The same information is shared across departments. "Multi-Enterprise Technology" is where there is one system that is shared across multiple organizations to capture all data and processes. All partners have visibility of the processes and business activities of the other partners.  

8.

"Theresa's Teacups and Saucers" is growing at a rapid rate with the new global demand for designer tea cups. Sometimes she places too many orders, sometimes she does not order enough, so her supplier has decided to send one of their own employees to Theresa's Teacups and Saucers headquarters to be on site and help provide forecasts and place POs. What is this arrangement called?

  • Supplier colocation

  • Supplier certification

  • Supplier evaluation

  • Performance alert

Correct answer: Supplier colocation

Supplier colocation is when a supplier sends an employee to their customer's site to work on site and place purchase orders and forecasts for the customer. Supplier certification is a process that ensures a particular product or process is manufactured according to a defined requirement. Supplier evaluations measure and rate the performance of a supplier and identify areas of improvement. A performance alert is a way to share supplier performance issues with the supplier to advise about an area of concern.  

9.

An ongoing relationship is a type of supplier relationship that is described by which of the following?

  • Utilizes medium-term contracts and has some interaction with competitors

  • Has an arm’s length proximity and significant interaction with competitors

  • Utilizes a long-term relationship and has limited to no interaction with competitors

  • Has ownership and does not have interaction with competitors

Correct answer: Utilizes medium-term contracts and has some interaction with competitors

An ongoing relationship is a type of supplier relationship that utilizes medium-term contracts and has some interaction with competitors. An ongoing relationship has repeat transactions.

Buy on the market is a type of supplier relationship that has an arm’s length proximity and significant interaction with competitors. A strategic alliance is a type of supplier relationship that utilizes a long-term relationship and has limited to no interaction with competitors. Mergers and acquisitions are types of supplier relationships that have ownership and do not have interaction with competitors.

10.

What is a technique for determining how changing one variable at a time may impact an outcome?

  • Sensitivity analysis

  • Simulation

  • Root cause analysis

  • Monte Carlo simulation

Correct answer: Sensitivity analysis

Sensitivity analysis, also referred to as what ifs, is also used to determine how risk can impact the supply chain. It is used to determine an outcome based on a given set of variable input values. For example, given a projected budget, what would be the effect on net income if variable costs of production increased by 15%? 

Simulation is the technique of using representative or artificial data to reproduce in a model various conditions that are likely to occur in actual performance. This is often used to run tests under different operating policies. 

Root cause analysis is an analytical method to determine the core problem(s) of an organization, process, product, market, and so forth. 

A Monte Carlo simulation uses specialized tools or spreadsheet add-ons to allow developers to enter a wide range for each input value rather than just one value. 

11.

A relationship diagram is a continuous improvement tool used for which of the following?

  • Evaluating the connections between various aspects of a problematic issue

  • Demonstrating the associations between two or more sets of data

  • Identifying actions that should be used to avoid mishaps as progress is made toward the desired result

  • Defining tasks and activities in more specific detail

Correct answer: Evaluating the connections between various aspects of a problematic issue

A relationship diagram is a continuous improvement tool used for evaluating the connections between various aspects of a problematic issue.

A tree diagram is a continuous improvement tool used for defining tasks and activities in more specific detail. A matrix diagram and a matrix data analysis chart are continuous improvement tools used to show relationships between data sets. A process decision program chart is a continuous improvement tool used for identifying actions that should be used to avoid mishaps as progress is made toward the desired result.

12.

Which continuous improvement approach focuses on the reduction of defects in a process until the defects are irrelevant?

  • Six Sigma

  • Lean

  • Total quality management

  • Theory of constraints

Correct answer: Six Sigma

Six Sigma is the continuous improvement approach that focuses on the reduction of defects in a process until the defects are irrelevant.

Lean is the continuous improvement approach that focuses on the reduction of waste and redundancy. Total quality management is the continuous improvement approach that focuses on meeting the expectations of internal and external customers. Theory of constraints is the continuous improvement approach that focuses on improving the slowest element in order to improve the system’s throughput.

13.

In 1961, Shigeo Shingo, a quality consultant for Toyota, developed the poka-yoke concept. Which of the following best describes poka-yoke?

  • Mistake-proofing

  • Signaling system

  • Tremendous waste

  • Across everywhere

Correct answer: Mistake-proofing

Poka-yoke is a concept that means mistake-proofing or error-proofing. The poka-yoke concept was utilized to implement fail-safe mechanisms that would prevent defects from occurring in the first place, which leads to higher levels of customer service and quality.

Tremendous waste is the meaning of the Japanese word muda. Signaling system is the meaning of the Japanese word kanban. Across everywhere is the meaning of the Japanese word yokoten.

14.

Which is an example of a distribution push system?

  • A company moves its inventory to a central warehouse based on forecasted requirements

  • A company plans and replenishes inventory upon the receipt of customer orders

  • A customer pushing back on retail pricing

  • Using new automated technology to push pallets in warehouses

Correct answer: A company moves its inventory to a central warehouse based on forecasted requirements

In a distribution push system, replenishment of field inventories is centralized. For example, a bicycle company moves its inventory from being spread through multiple centers across the country to a central warehouse where replenishment decision-making is centralized. 

The other options do not describe a push system. 

15.

Global strategy allows organizations to expand their supply base due to international agreements that have relaxed trade barriers and promoted free trade agreements. Which of the following is not an improvement opportunity which global strategy provides?

  • Less need for logistic knowledge

  • Lower cost

  • Improved economies of scale

  • Improved world-wide performance

Correct answer: Less need for logistic knowledge

Global strategy requires additional logistic knowledge as well as the additional skills needed for communication, cultural, and political issues that are not required in domestic sourcing.

Lower cost, improved economies of scale, and improved world-wide performance are potential benefits of a global strategy.

16.

In Carriage and Insurance Paid To (CIP), who bears the responsibility of contracting the carrier for transportation of goods?

  • The seller

  • The buyer

  • The bank

  • The carrier

Correct answer: The seller

Under Cost and Insurance Paid To (CIP), the seller must contract for the carriage of goods without assuming the risk of loss, damage to the goods, or additional costs due to events occurring after shipment. This also applies to Carriage Paid To (CPT), Cost and Freight (CFR), and Cost, Insurance, Freight (CIF).

The other answer options are incorrect, as the seller bears the responsibility.

17.

In identifying and documenting risk, the Delphi method can be used. How does the Delphi method work? 

  • It develops a questionnaire to send to a group requesting feedback until a consensus is reached

  • It pulls from historical industry data and uses AI to calculate the most likely outcome

  • It uses the sales forecast compared to economic trends to determine the impact

  • It involves live in-person meetings with consumers and weighs responses based on the consumers with the most transactions

Correct answer: It develops a questionnaire to send to a group requesting feedback until a consensus is reached

The Delphi method develops a consensus forecast. It starts with a questionnaire being sent to a group requesting projections. The group gives anonymous responses that are aggregated into a group response and then shared within the group. The individuals within the group adjust their projections, and the collection and aggregation process repeats through a number of rounds until a final consensus option can be agreed upon. The final consensus document becomes the forecasted outcome. 

This method can be used for risk outcomes, but it is commonly used to get consensus from sales and marketing groups for sales forecasts. 

The other options are unrelated. 

18.

SA8000 is an international standard for identifying and managing human rights in the workplace. All of the following are principles found on the standard except: 

  • Security risks

  • Child labor

  • Forced labor

  • Freedom of association

Correct answer: Security risks

Security risks is a topic addressed in ISO 2800 Security Management Systems.

All the other options are principles found in the SA8000 Standard.

19.

Corruption and counterfeiting are examples of what type of risk?

  • Malfeasance

  • Hazard

  • Financial

  • Litigation

Correct answer: Malfeasance

Corruption and counterfeiting are examples of malfeasance risks. Malfeasance risks are the risks associated with wrongdoing, such as fraud, bribery, or abduction.

Hazard risks are mainly natural disasters that cause disruption; however, they can also include political turmoil, government appropriations, or similar situations that are not controllable. Financial risks mainly involve an organization’s credit issues or financial solvency. Litigation risks are the risks that involve lawsuits.

20.

Supply-related risks include all except which of the following?

  • Industry regulations

  • Labor disruption

  • Customs/import delays

  • Supplier pricing

Correct answer: Industry regulations

Industry regulations is an example of an environmental-related risk, not a supply-related risk.

Labor disruption, customs/import delays, and supplier pricing are all considered supply-related risks. Other supply-related risks include supplier/subcontractor availability, supplier quality, supplier lead time, and transportation lead time.

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