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Quiz Session - Attempts With Random Questions

APICS CSCP Exam Questions

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21.

What is meant by the term "Total Cost to Serve?" 

  • It is the direct and indirect costs that are all taken into account and identifies all costs in a supply chain 

  • It is the number of times that cycles meet the planned completion time

  • It is the capability to meet unplanned requests from customers

  • It is how well a company manages its resources like working capital and how effectively assets are being used

Correct answer: It is the direct and indirect costs that are all taken into account and identifies all costs in a supply chain 

Total cost to serve is the direct and indirect costs that are all taken into account and identifies all costs in a supply chain associated with sourcing, landing, producing, managing, and delivering all orders and any returns. 

Delivery consistency measures the number of times that cycles meet the planned completion time. Flexibility is a customer-focused metric that measures the capability to meet unplanned requests from customers. Supply chain asset management looks at how well a company manages its resources like working capital and how effectively assets are being used. 

22.

What is an example of a company using a risk rating? 

  •  A company surveys its suppliers and asks questions to show how effectively risks are identified and managed within the supply chain

  • A company reviews information on customers to make sure it is complete and meaningful

  • A company determines the likelihood of a tropical hurricane impacting delivery operations as 21% this year

  • A company interviews people who are closest to data collection points

Correct answer: A company surveys its suppliers and asks questions to show how effectively risks are identified and managed within the supply chain

Companies use a supplier, customer, or product risk rating survey to determine how effectively risks are identified and managed within the supply chain. They begin the survey by interviewing participants or by performing a self-assessment to determine potential risks. 

Reviewing data to see if it is complete and meaningful is an example of data integrity. 

Determining the likelihood of an event occurring is an example of probability. 

Interviewing people closest to data collection points is an example of risk data gathering. 

23.

What is the cycle time if wooden tables are assembled at a rate of 40 per hour? 

  • 90 seconds

  • 90 minutes

  • 20 seconds

  • 40 per hour

Correct answer: 90 seconds

Cycle time takes time divided by actual production. In this case, there are 3,600 seconds in an hour, divided by 40 to give you 90 seconds. You could also do 60 minutes, divided by 40 for 1.5 minutes.

24.

What is the time frame required to determine when an initial investment breaks even? 

  • Discounted payback period

  • Return on investment (ROI)

  • Return on assets (ROA)

  • Cost of goods sold (COGS)

Correct answer: Discounted payback period

Used in accounting, the discounted payback period determines how long it will take to recoup an initial investment or break event.

Return On Investment (ROI) is a relative measure of financial performance that provides a means for comparing various investments by calculating the profits returned during a specified time period. 

Return On Assets (ROA) is a profitability ratio that indicates a company's efficiency in using resources (assets) to generate income during a financial year.

Cost Of Goods Sold (COGS) is an accounting method for determining the amount of direct materials, direct labor, and allocated overhead associated with products sold during a given period of time. 

25.

A company's production responds only as items are demanded for use or to replace items taken for use. This is an example of what system?

  • Pull system

  • Push system

  • Six Sigma

  • Kaizen

Correct answer: Pull system

In terms of production, a pull system is when items are produced only when demanded. The activity doesn't initiate until a demand pull request is received from a downstream operation or customer. 

A push system is the opposite, where production is planned and on a given schedule. Six Sigma is a methodology focused on reducing defects. Kaizen is simply the Japanese term for continuous improvement. 

26.

The scope of customer relationship management (CRM) includes:

  • Sales operations, analysis, customer information dissemination

  • Purchase planning, spend management, sourcing

  • Sales and operations planning, transportation planning, warehouse management

  • Material requirements planning, distribution requirements planning, sales and operations planning

Correct answer: Sales operations, analysis, customer information dissemination

The scope of CRM supports activities to optimize the customer experience and provide a single point of customer view to everyone in the organization. The core scope categories of CRM are sales operations, analysis, customer information dissemination, relationship building and collaboration.

27.

After much research, Melissa's organization has only found one supplier who manufactures the unit it needs to produce its product; therefore, her organization will only purchase from this supplier. 

This is an example of which of the following?

  • Sole sourcing

  • Single sourcing

  • Solitary sourcing

  • Individual sourcing

Correct answer: Sole sourcing

Sole sourcing is the act of only using one supplier to purchase items because they are the only supplier of the items needed.

Single sourcing is the act of only using one supplier to purchase items, even though multiple suppliers supply the same items. Solitary and individual sourcing are incorrect because they are not terms used in supply chain management.

28.

A stock-market-style auction is used to help establish the price of a good or service on the open market. A stock-market-style auction is best described by which of the following options?

  • It has multiple buyers and sellers and is based on buy and sell offers for commodities

  • It has suppliers who try to underbid their competitors, and only the buyer knows the identities of the suppliers

  • It has one seller and multiple buyers for multiples of the same item in which the price starts out high and then lowered as the auction progresses

  • It has buyers and sellers who must be indifferent to one another because the sellers are liquidating excess supply

Correct answer: It has multiple buyers and sellers and is based on buy and sell offers for commodities

A stock-market-style auction has multiple buyers and sellers and is based on buy and sell offers for commodities.

A reverse auction has suppliers who try to underbid their competitors, and only the buyer knows the identities of the suppliers. A Dutch auction has one seller and multiple buyers for multiples of the same item in which the price starts out high and then is lowered as the auction progresses. A demand management auction has buyers and sellers who must be indifferent to one another because the sellers are liquidating excess supply.

29.

How does a supplier relationship management (SRM) strategy support a company's strategic, operational, and financial goals?

  • Assisting the ordering of products and services, the interaction between suppliers and customers, and improving communications

  • Providing an overview of import duties and related regulations across different countries

  • Collection of customer information and marketing support

  • Support with transportation arrangements from suppliers, including ocean, rail, air, and trucking

Correct answer: Assisting the ordering of products and services, the interaction between suppliers and customers, and improving communications

Supplier Relationship Management (SRM) is a comprehensive approach to managing an enterprise's interactions with organizations that supply goods and services. 

Global trade management systems are tools that help with international shipments, including understanding duties and regulations. 

Customer Relationship Management (CRM) provides help with customer information and marketing.

Transportation Management Systems (TMS) support the arrangement of transport of goods. 

30.

Which of the following is true of organizations that use software as a service (SaaS)?

  • They rent the software

  • They purchase the software

  • They download the software

  • They own a license to use the software

Correct answer: They rent the software

In a SaaS environment, software is leased vs. purchased. Payments are for subscription vs. licenses.

SaaS is defined by the APICS Dictionary, 15th Edition, as “computer services…provided by a third party that keeps all of the software and hardware in its place of business and the company using the services accesses them via the internet.” The user advantages of SaaS include lower initial costs, immediate use, automatic upgrades, smaller storage requirements, and fewer personnel.

SaaS does not have licenses, it is not purchased, nor is it downloaded.

31.

Multiple trading partners utilize information integration and collaboration with which business-to-business (B2B) marketplace ownership model?

  • Virtual trading exchange

  • Independent public trade exchange

  • Private trade exchange

  • Consortia trade exchange

Correct answer: Virtual trading exchange

Virtual trading exchange is the B2B marketplace ownership model where multiple trading partners utilize information integration and collaboration. Virtual trading exchange is defined by the APICS Dictionary, 15th Edition, as “an online trading exchange that enables both information integration and collaboration between multiple trading partners.”

Independent public trade exchanges are public sites that focus on indirect materials and commodity purchases to allow buyers and sellers in the same market to meet and find the best deals. 

Private trade exchange is defined by the APICS Dictionary, 15th Edition, as “trade exchange[s] hosted by a single company to facilitate collaborative e-commerce with its trading partners.”

Consortia trade exchange is defined by the APICS Dictionary, 15th Edition, as “an online marketplace, usually owned by a third party, that allows members to trade with each other.”

32.

Inventory management models are often classified as dependent demand models and independent demand models. Which of the following is not an example of a dependent demand?

  • Replacement seals

  • Gaskets

  • Headlights

  • Batteries

Correct answer: Replacement seals

Replacement seals are not a dependent demand; they are an independent demand. Independent demand is the demand for an end product or service parts used to repair the end product.

Gaskets, headlights, and batteries are all dependent demand products. Dependent demand is the demand for the parts needed to build the final product.

33.

Supply chain perfect order fulfillment performance is a performance measurement used in supply chain management. Which of the following best describes supply chain perfect order fulfillment performance?

  • The average percentage of orders that arrive on time, complete, and undamaged

  • The average number of days between paying for raw material and getting paid for the product

  • The average time needed for supply chain members to provide an increase in production

  • The average percentage of orders that are filled prior to the requested delivery date

Correct answer: The average percentage of orders that arrive on time, complete, and undamaged

Supply chain perfect order fulfillment performance is the average percentage of orders that arrive on time, complete, and undamaged.

Supply chain cash-to-cash cycle time is the average number of days between paying for raw material and getting paid for the product. Supply chain production flexibility is the average time needed for supply chain members to provide an increase in production. Supply chain delivery performance is the average percentage of orders that are filled prior to the requested delivery date.

34.

A demand-driven material requirements planning system is an inventory ordering system that does which of the following?

  • Creates inventory buffers for key items with longer lead times by reviewing customer order wait times on a daily basis

  • Orders inventory based on fixed intervals (i.e., daily, weekly, monthly, or quarterly)

  • Orders inventory once the inventory has fallen below the lowest permissible amount

  • Orders inventory if it is believed that the inventory level will fall below the lowest permissible amount during the order horizon

Correct answer: Creates inventory buffers for key items with longer lead times by reviewing customer order wait times on a daily basis

A demand-driven material requirements planning system is an inventory ordering system that creates inventory buffers for key items with longer lead times by reviewing customer order wait times on a daily basis.

A periodic review system is an inventory ordering system that orders inventory based on fixed intervals (i.e., daily, weekly, monthly, or quarterly). A min-max system is an inventory ordering system that orders inventory once the inventory has fallen below the lowest permissible amount. A time-phased order point system is an inventory ordering system that orders inventory if it is believed that the inventory level will fall below the lowest permissible amount during the order horizon.

35.

The success of extended enterprise supply chains is attributed largely to modern technology. Technology does all of the following for a supply chain except:

  • Improve an employee's social skills

  • Speed the flow of information 

  • Lowers transaction costs 

  • Permits improved communication 

Correct answer: Improve an employee's social skills 

Technology cannot improve an employee's social social skills.

Technology does many things for a supply chain including lowering costs, promoting improved communications, speeding the flow of information, promote collaboration, allows better supplier-customer relationships to be built, and many other valuable aspects.

36.

Doors-R-Us has designed a new door handle called "The Fist Bump." It functions by fist bumping the latch mechanism which opens the door. The first lot produced had a design flaw where the mold of the fist bump latch had some abrasions, so users were hurting their knuckles when opening the door.  The design team decided to add rubber padding on the face of the fist bump, which eliminated sore knuckles. What type of action was taken by Doors-R-Us?

  • Corrective action

  • Simulation

  • Contingent action

  • Preventative action

Correct answer: Corrective action

Corrective actions are steps taken in order to eliminate a problem once it has been discovered. A simulation is used to look at different outcomes when changing different conditions and how those affect results. A preventative action occurs when an issue or potential error is discovered and addressed before it can cause a larger problem. A contingent action is a backup plan on how to recover from some specific event.    

37.

When monitoring customer satisfaction, what does a satisfied customer usually lead to?

  • Lifetime customers 

  • Recommendations for other products 

  • Customers going to sample other product offerings in the marketplace 

  • Customers giving bad reviews of the company

Correct answer: Lifetime customers 

When monitoring customer satisfaction, a satisfied customer usually leads to a lifetime customer. Customer satisfaction is a key performance indicator within the supply chain in a competitive marketplace.

If a customer is satisfied, they are not likely to want to change the product, nor will they go try other product offerings, and they will certainly not give bad reviews.

38.

Demand management is the process of overseeing which of the following?

  • Demand planning

  • Purchase orders

  • Forecasting

  • Raw materials supply

Correct answer: Demand planning

Demand management is the process of overseeing demand planning, which controls customer orders and assigns order priority.

39.

Guidance for environmental management standards is a topic of which International Organization for Standardization (ISO) standard?

  • ISO 14000

  • ISO 26000

  • ISO 28000

  • ISO 31000

Correct answer: ISO 14000

ISO 14000 provides guidance for environmental management standards. ISO 14000 is defined by the APICS Dictionary, 15th Edition, as “a series of generic environmental management standards developed by the International Organization for Standardization, which provide structure and systems for managing environmental compliance with legislative and regulatory requirements and affect every aspect of a company’s environmental operations.”

ISO 26000 provides guidance for social responsibility. ISO 28000 provides guidance for setting up a security management system. ISO 31000 provides guidance for managing risk in any endeavor.

40.

A simple supply chain is made up of a supplier, a producer, and a customer. These three supply chain entities are then connected together by four basic flows, which include all except which of the following?

  • Workforce operations flow

  • Primary flow of cash

  • Primary product flow

  • Reverse flow of products returned

Correct answer: Workforce operations flow

Workforce operations flow is not one of the four basic flows that connect a simple supply chain made up of a supplier, a producer, and a customer.

The four basic flows that connect a simple supply chain are flow of information, primary product flow, primary flow of cash, and reverse flow of products returned.

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