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Quiz Session - Attempts With Random Questions

APICS CSCP Exam Questions

Page 3 of 50

41.

When initiating the use of the balanced scorecard, it is necessary to identify indicators to measure performance for four perspectives. Which of the following is not a balanced scorecard perspective?

  • Quality perspective

  • Financial perspective

  • Customer perspective

  • Business process perspective

Correct answer: Quality perspective

Quality perspective is not a balanced scorecard perspective.

The APICS Dictionary, 16th Edition, defines the balanced scorecard as "a list of financial and operational measurements used to evaluate organizational or supply chain performance. The dimensions of the balanced scorecard might include customer perspective, business process perspective, financial perspective, and innovation and learning perspectives. It formally connects overall objectives, strategies, and measurements. Each dimension has goals and measurements."

Financial perspective shows how the firm looks to shareholders. Customer perspective shows how the customers see the firm. Business process perspective shows how well the operational processes are managed. Innovation and learning perspective shows how the firm learns and grows through improvement and value creation.

42.

Which type of replenishment program is best used at the retail level, where daily sales are captured and automatically sent to suppliers for automatic replenishment without the need for a purchase order?

  • Continuous replenishment

  • Quick response program

  • VMI program

  • Program manager

Correct answer: Continuous replenishment

Continuous replenishment is used at the retail level where daily point of sale data is sent directly to suppliers. This method helps with lower stockouts and processing because no purchase orders are placed. A quick response program is very similar, except a purchase order is required in this program. A VMI program is a vendor managed inventory program where the actual vendor is responsible for keeping inventory levels appropriate at their customers' sites, and a program manager is not a replenishment program. 

43.

GTYH and Sons offers cleaning services to businesses and consumers through the Internet. GTYH designs service packages and manages the service delivery; however, the work is performed by suppliers.

What type of company is GTYH and Sons?

  • Virtual organization

  • Push-type company

  • Outsourced supplier

  • Horizontal-type company

Correct answer: Virtual organization

A virtual organization is a logical extension of outsourcing. With a virtual corporation, the capabilities and systems of the firm are merged with those of the suppliers, resulting in a new type of organization where the boundaries between the suppliers' systems and those of the firm seem to disappear. A virtual organization is dynamic in that the relationships and structures formed change according to fluctuation in the demand.

A push-type company pushes product in order to meet a forecasted demand. An outsourced supplier supplies products or services externally. A horizontal-type company uses very few, if any, middle managers, as its owners and/or upper management handle the company's day-to-day operations.

44.

Which of the following is an example of product differentiation?

  • Making a popular consumer item out of a sustainable material instead of plastic

  • Selling a TV set for $249.99 when the competition is selling it for $300

  • Providing a consumer with multiple color variations of watch bands at a retail store

  • Making sure that inventory items are spread into five different product categories to diversify risk

Correct answer: Making a popular consumer item out of a sustainable material instead of plastic

Product differentiation is a strategy of making a product distinct from the competition on a nonprice basis, such as availability, durability, quality, or reliability.

45.

A company wants to move a load of low-value goods at short notice from a rural inland warehouse, but they are looking for a low-cost option. What would be the best mode of transportation?

  • Truck

  • Water

  • Air

  • Rail

Correct Answer: Truck

A truck would be the best option because trucks require little advance planning for short-notice shipments, and since they are picking up in a rural area, there may not be immediate rail access. Rail is cost-effective but takes more advanced notice and planning and is usually not suitable for short-term notice. 

Since the load is inland, shipping on water would not be the best option, and water shipments also require more time for planning compared to trucking. 

Air is a high-cost mode of transportation and limited geographically to airports. 

46.

Demand will fluctuate depending on seasonality. Which of the following is not an example of seasonality?

  • Demand for fresh foods is steadily increasing from year to year

  • Fur coats sell more in winter

  • Restaurant JJV serves more meals at lunchtime

  • ADD supermarket sales are lower on Mondays

Correct answer: Demand for fresh foods is steadily increasing from year to year

Demand for fresh foods is steadily increasing from year to year is not an example of seasonality. Steady increase in demand from year to year is a trend, not seasonality.

Seasonality is a demand pattern that shows each year's demand fluctuating according to the time of year. This fluctuation may be the result of the weather, holiday seasons, or particular events that take place on a seasonal basis. Seasonality can also occur on a weekly or even daily basis. A restaurant's demand varies with the hour of the day, and supermarket sales vary with the day of the week.

47.

The process of utilizing more than one freight mode with minimal handling is called Intermodal Transportation. What term is used when placing a container on a ship?

  • Fishyback 

  • Birdyback 

  • Piggyback 

  • Doggyback 

Correct answer: Fishyback 

Fishyback is placing a container on a ship.  

Birdyback is placing a container on a plane. Placing a container on a railcar/train is called a piggyback, and doggyback is not a term used for Intermodal designation.

48.

Huazha Technologies uses an iron-based phosphate pretreatment during the coating process for its manufacture of stainless steel parts for its semiconductor customers. Iron-based phosphate pretreatments have an adverse affect on the environment, so Huazha is informing its customers that it will be changing this process to include a Zirconium-based pretreatment due to its more environmentally friendly properties. What is Huazha Technologies practicing?

  • Environmentally sensitive engineering

  • The Globally Harmonized System of Classification and Labeling of Chemicals (GHS)

  • Environmentally responsible manufacturing

  • Environmentally responsible business

Correct answer: Environmentally sensitive engineering

Environmentally sensitive engineering looks at the design of products and reduces chemicals or raw materials that can have an adverse effect on the environment. The Globally Harmonized System of Classification and labeling of Chemicals (GHS) is an international standard that describes how to label and store hazardous chemicals, and how to classify them as health, physical, or environmental hazards. An environmentally responsible business looks at and attempts to reduce its impact on the environment through various sustainability programs. Environmentally responsible manufacturing looks at the current processes in its supply chain, including operations and procurement, and focuses on changing specific aspects, such as using alternative materials.   

49.

An increase in inventory does which of the following to an organization’s cash flow?

  • Cash is reduced

  • Cash is increased

  • Cash is provided

  • Cash remains neutral

Correct answer: Cash is reduced

An increase in inventory reduces an organization’s cash flow.

Cash flow is defined by the APICS Dictionary, 15th Edition, as “the net flow of dollars into or out of the proposed project [organization]. [It is] the algebraic sum, in any time period, of all cash receipts, expenses, and investments.” Other factors that reduce cash include an increase in accounts receivable and an increase in business investments.

Cash is increased when there is an increase in accounts payable. Cash is provided when there is an increase in new debt or equity. Cash remains neutral when depreciation is deducted.

50.

Guidance for setting up a security management system is a topic of which International Organization for Standardization (ISO) standard?

  • ISO 28000

  • ISO 26000

  • ISO 14000

  • ISO 9000

Correct answer: ISO 28000

ISO 28000 provides guidance for setting up a security management system. ISO 28000 is defined by the APICS Dictionary, 15th Edition, as “an International Standard that specifies the requirements for a security management system, including those aspects critical to security assurance of the supply chain.”

ISO 26000 provides guidance for social responsibility. ISO 14000 provides guidance for environmental management standards. ISO 9000 provides guidance for organizational quality standards.

51.

Some countries, especially in the Middle East, require that all import documentation to be in the local language of that country. What must foreign suppliers provide in order for an importer to make a customs entry in a country that requires this type of documentation?

  • A consular invoice

  • A letter of credit

  • A multi-country strategy

  • An Incoterm

Correct answer: A consular invoice

A consular invoice is a commercial invoice issued in the receiving country's language. A letter of credit is a bank guarantee that payment on an invoice will be made when certain milestones are met. Incoterms indicate which party is responsible for transportation and risk of loss during the movement of goods from the supplier to the buyer. A multicountry strategy is when a company makes minor changes to its products to make them attractive and usable to the local markets.  

52.

A virtual organization employs electronic means to transact business, as opposed to a traditional brick-and-mortar business that relies on face-to-face transactions. Which of the following is most important to a virtual organization for efficiency?

  • Real-time order information

  • High-speed Internet

  • Push-type system

  • Vertical-type enterprise

Correct answer: Real-time order information

To be successful, a virtual organization needs real-time order information transmitted automatically to the goods supplier. The supplier will then waste no time in shipping the item to the consumer. A virtual organization is defined by the APICS Dictionary, 16th Edition, as "short-term alliances between independent organizations in a potentially long-term relationship to design, produce, and distribute a product. Organizations cooperate based on mutual values and act as a single entity to third parties." 

A high-speed Internet connection is useful for a virtual organization to have, but it can still operate without it. Push-type systems and vertical-type enterprises are also not required for a successful virtual organization.

53.

Collaboration with supply chain partners is difficult. Which of the following factors influences the success of such collaboration the most?

  • Real time exchange of information

  • Confidentiality agreements signed by both parties

  • One company must be the prime contractor

  • Both companies must use the same ERP system

Correct answer: Real time exchange of information

It is imperative that trading partners are able to exchange key data and that this exchange takes place in real time. Since collaboration is based on building trust between partners, the partners must share information, and the faster the flow of information, the more efficient and the more agile the partnership becomes.

Both companies must use the same ERP system is incorrect because data does not need to be stored in the same ERP system. Confidentiality agreements signed by both parties is incorrect because even though confidentiality agreements are signed, there is still a level of risk when the parties do not communicate efficiently.

One company must be the prime contractor is incorrect because both companies form the partnership; if there is a selection of a prime contractor, it is done through consensus and is usually only done to satisfy the customers' requirements.

54.

Kaizen is the Japanese term that refers to which of the following?

  • Continuous improvement

  • Leveling

  • Inconsistency

  • Overburdening

Correct answer: Continuous improvement

Kaizen is the Japanese term that refers to continuous improvement. Kaizen is defined by the APICS Dictionary, 15th Edition, as “continuing improvement involving everyone – managers and workers. In manufacturing, kaizen refers to finding and eliminating waste in machinery, labor, or production methods.”

Heijunka is the Japanese term that refers to leveling. Mura is the Japanese term that refers to inconsistency. Muri is the Japanese term for overburdening.

55.

What is a solution to run applications, store information, and communicate with other non-connected computers on the internet? 

  • Software as a service (SaaS)

  • Database management systems (DBMS)

  • A virtual private network (VPN)

  • A local area network (LAN)

Correct answer: Software as a service (SaaS)

Software as a Service (SaaS) is a solution where data and software applications are stored off-site in servers found at third-party locations. Many supply chain management solutions are now provided as SaaS offerings. 

DataBase Management Systems (DBMSs) store and maintain information in a database file. 

A Virtual Private Network (VPN) permits secure data sharing between a company and invited third parties. 

Local Area Network (LAN) computers are connected together from widely dispersed geographic areas. 

56.

WAGY is a large distribution store with outlets all over the country. It uses a logistics practice of unloading materials from an incoming railroad car and loading these materials directly onto outbound trucks.

What is this practice called?

  • Cross-docking

  • Material management

  • Outsourced logistics

  • Directed pick

Correct answer: Cross-docking

Cross-docking is a practice in logistics of unloading materials from an incoming transportation service and loading these materials directly onto outbound trucks, trailers, or rail cars, with little or no storage in between. This may be done to change the type of conveyance, to sort material intended for different destinations, or to combine material from different origins into transport vehicles (or containers) with the same, or similar, destination.

57.

There are three types of service strategies organizations use to remain competitive in the market. If an organization chooses to serve the needs of a specific group instead of the entire market, which strategy is the organization using?

  • Focus advantage strategy

  • Low-cost advantage strategy

  • Differentiation advantage strategy

  • Touch-point strategy

Correct answer: Focus advantage strategy

The focus advantage strategy is used when organizations serve narrow target markets or a niche instead of an entire market. Therefore, if an organization served the needs of a specific group instead of the entire market, it used the focus advantage strategy.

The low-cost advantage strategy is used when organizations make a large capital investment in new technology in order to control and reduce costs, standardize services, and aim their service offerings at cost-conscious customers. The differentiation advantage strategy is used when organizations create a unique service.

Touch-point strategy is not one of the three types of business strategies organizations use to remain competitive in the market.

58.

A ship agent offers which of the following services?

  • They work for the carrier by arranging arrival berthing, loading and unloading, fee payments, and requesting ship clearance

  • Bring exporters and ship operators together and find ships that have space available to meet the exporter's shipping schedule

  • They represent a group of small exporters who join together to qualify for carrier rate discounts

  • They provide specialized packaging services to assist shippers

Correct answer: They work for the carrier by arranging arrival berthing, loading and unloading, fee payments, and requesting ship clearance

Ship agents work for the carrier by arranging arrival berthing, loading and unloading, fee payments, and requesting ship clearance. They are the local experts who make sure, on behalf of the ship owners, that all in-port arrangements are made, including crew transfers and business with port authorities.

Ship brokers are independent third parties that bring exporters and ship operators together and find ships that have space available to meet the exporter's shipping schedule. A shipping association represents a group of small exporters who join together to qualify for carrier rate discounts. Export packaging companies provide specialized packaging services to assist shippers. 

59.

Which design strategy simplifies the processes, products, and parts to increase the efficiency of production flow?

  • Design for manufacturability

  • Design for logistics

  • Design for quality

  • Design for looks

Correct answer: Design for manufacturability

Design for manufacturability simplifies the process, products and parts to increase the efficiency of production flow. Design for logistics looks to decrease logistics costs, design for quality focuses on overall performance and the customer's desired features, and design for looks is not a design strategy.

60.

What is a planning horizon?

  • How far into the future a planning is considered

  • How long it takes for a re-order to get back on the shelf

  • The minimum permissible inventory level

  • When an order for inventory needs to be placed

Correct answer: How far into the future a planning is considered

The planning horizon is how far into the future a plan is considered 

Replenishment lead time is how long it takes for a re-order to get back on an inventory shelf. The minimum permissible inventory is the "min" in a min/max inventory program. The reorder point is the point in time when an order for inventory needs to be placed.

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