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Quiz Session - Attempts With Random Questions

APICS CSCP Exam Questions

Page 5 of 50

81.

In Customer Relationship Management, what describes VOC best?

  • In-depth process of capturing a customer's expectations, preferences, and aversions

  • Voice recognition process to identify customers calling the service department

  • Validation of compliance

  • Variation of customer

Correct answer: In-depth process of capturing a customer's expectations, preferences, and aversions

In-depth process of capturing a customer's expectations, preferences, and aversions describes VOC (voice of the customer) the best. VOC is a market research technique that produces a detailed set of customer wants and needs. VOC studies typically consist of both qualitative and quantitative research steps. They are generally conducted at the start of any new product, process, or service design initiative in order to better understand the customer's expectations, preferences, and aversions.

The other choices are incorrect because VOC is not a voice recognition process, a validation of compliance, or a variation of customer.

82.

Establishing a long-term, proactive, global, holistic, and collaborative relationship with a supplier to acquire materials and services is an example of what? 

  • Strategic sourcing

  • Single-source supplier

  • Diversification strategy

  • Supplier quality assurance

Correct answer: Strategic sourcing

Strategic sourcing involves cultivating collaborative relationships as opposed to transactional sourcing, which is purely focused on prices and other requirements. 

Single-source supplier is when customers decide to purchase materials from one supplier even though other supplier options exist. 

A diversification strategy is expanding the scope of products to reduce risk in case there is a downturn of one product in the market. 

Supplier quality assurance means reviewing products and services, so they meet the customers' needs, such as putting into place quality management processes. 

83.

The perspectives that are measured on a balanced scorecard include all except which of the following?

  • Employee

  • Business process

  • Innovation and learning

  • Customer

Correct answer: Employee

The balanced scorecard does not include an employee perspective.

The balanced scorecard contains four perspectives, which include the business process perspective, the innovation and learning perspective, the customer perspective, and the financial perspective.

The APICS Dictionary, 15th 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.”

84.

Forecasting is not an exact science; however, forecasting must still be used for strategic planning. How is forecast error calculated?

  • Difference between actual demand and forecasted demand

  • Difference between ordered products and delivered products

  • The average forecasted demand over the previous three months

  • The average forecasted demand over the previous ten orders

Correct answer: Difference between actual demand and forecasted demand

Forecast error is the difference between the actual demand and the forecasted demand. Forecast error can be represented as a percentage or as an absolute value.

Forecast error = Actual demand (A) - Forecast demand (F)

85.

Company IJKL produces high-end furniture. It markets its product on the web and starts building the furniture when an order is placed. It has clarified the specifications with the customer. 

How would you describe the system IJKL is using?

  • This is a pull system

  • This is a push system

  • This is an Internet system

  • This is a bullwhip system

Correct answer: This is a pull system

This supply chain is demand driven and produces only when there is an actual order, which represents a pull system. The APICS Dictionary, 16th Edition, defines a pull system as follows:

  1. "In production, the production of items only as demanded, for use or to replace those taken for use.
  2. In material control, the withdrawal of inventory as demanded by the using operations. Material is not issued until a signal comes from the user.
  3. In distribution, a system for replenishing field warehouse inventories where replenishment decisions are made at the field warehouse itself, not at the central warehouse or plant."

A push system means that a supply chain is pushing the product to meet forecasted demands. An Internet system runs applications through the use of a web browser. A bullwhip effect, not system, is when production planning problems occur due to safety stocks being included in supplier forecasts.

86.

Carter measures the dimension of 500 bolts and records the data so that he can identify any unnatural distributions. Which basic tool of quality is Carter most likely using?

  • Histogram

  • Control chart

  • Pareto chart

  • Cause-and-effect diagram

Correct answer: Histogram

A histogram is the basic tool of quality that Carter is using. A histogram is a bar chart that presents measurement data for a process, such as dimensions or weight. There are seven basic tools of quality, which are process mapping, control chart analysis, Pareto chart, cause-and-effect diagram, histogram, check sheet, and scatter chart.

A control chart is defined by the APICS Dictionary, 15th Edition, as “a graphic comparison of process performance data with predetermined computed control limits.” A Pareto chart is an evaluation that reflects the regularity of items/causes in a data set and is based on Pareto’s law, which is “a concept … that states that a small percentage of a group accounts for the largest fraction of the impact, value, and so on” (APICS Dictionary, 15th Edition). A cause-and-effect diagram is a diagram used to organize a process’s or a problem’s causes and subcauses for investigation.

87.

In the stable time series data, the forecast for any period equals the previous period's actual value. Which forecasting model is the most cost-effective for stable time series data?

  • Naive forecasting

  • Reference class forecasting

  • Quantitative forecasting

  • Qualitative forecasting

Correct answer: Naive forecasting

In the naive forecasting approach, there is not scientific calculation or data analysis. The forecast for any period equals the previous period's actual value. It is cost effective and provides a benchmark against which more sophisticated models can be compared.

The other choices are incorrect because reference class forecasting, quantitative forecasting, and qualitative forecasting all require scientific calculation or data analysis, which requires the use of professionals that cost additional money.

88.

Bryan has asked his telephone operators to use hash marks to record every time a phone call is a complaint, a billing question, or a delivery question. Which basic tool of quality is Bryan using?

  • Check sheet

  • Pareto chart

  • Cause-and-effect diagram

  • Histogram

Correct answer: Check sheet

A check sheet is the basic tool of quality that Bryan is using. A check sheet is a tool used to count the frequency of events. There are seven basic tools of quality, which are process mapping, control chart analysis, Pareto chart, cause-and-effect diagram, histogram, check sheet, and scatter chart.

A Pareto chart is an evaluation that reflects the regularity of items/causes in a data set and is based on Pareto’s law, which is “a concept … that states that a small percentage of a group accounts for the largest fraction of the impact, value, and so on” (APICS Dictionary, 15th Edition). A cause-and-effect diagram is a diagram used to organize a process’s or a problem’s causes and subcauses for investigation. A histogram is a bar chart that presents measurement data for a process, such as dimensions or weight.

89.

The Supply Chain Operations Reference Model (SCOR) identifies 6 supply chain processes. Which supply chain process gives guidance on how to best support the other 5 supply chain processes?

  • Enabling

  • Sourcing

  • Delivering

  • Returning

Correct answer: Enabling

Enabling give the guidance on supporting the other processes in the SCOR basic supply chain model.  

Sourcing involves the procurement of goods, delivering includes transportation and distribution, and returning is the process of getting goods from the customer back to the supplier.

90.

Inventory Policies require various inputs that determine the guidelines which companies use to manage all stages of their inventory.  What is not an input used to determine a company's inventory policies?

  • Warehouse safety training

  • Product Variety

  • Carrying costs of inventory

  • Level of customer service 

Correct answer: Warehouse safety training

Replenishment Leadtimes, planning horizon, the amount of variety offered, the purchase and carrying costs of the inventory and what level of customer service a company wants to provide. Warehouse safety training, while important, does not determine inventory policies. 

91.

If a company has any sort of hazardous material on site, whether used in the manufacture of the products, or is produced as a  byproduct of the manufacturing process itself, then companies are required to maintain Safety Data Sheets (SDS). What standard requires the proper maintenance of SDS? 

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

  • The Environmentally responsible business standards

  • Environmentally responsible manufacturing standards

  • Environmentally sensitive engineering standards

Correct answer: The Globally Harmonized System of Classification and Labeling of Chemicals (GHS)

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 sensitive engineering looks at the design of products and reduces chemicals or raw materials that can have an adverse effect on the environment. 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.   

92.

Customer service performance management is assessed in four categories: Response to inquiries, Order processing, Level of service, and Product or service quality. Which category could use the SCOR Level 1 'Perfect Order Fulfillment' metric?

  • Level of service

  • Order processing

  • Response to inquiries

  • Product or service quality

Correct answer: Level of service

Level of service is measured by delivering the right product, the right quantity, the right condition (packaging and documentation), the right place, the right time, the right customer, the right cost.

Response to inquiries should be measured by how efficiently and effectively customer inquiries are being addressed. Order processing should be measured by the customers' perceived efficiency in placing an order and the overall order cycle time. Product or service quality should be measured by cost-of-quality issues. (i.e. returns, defects, warranty issues, customer complaints, etc.).

93.

Which Incoterm applies only to sea and inland waterway transport?

  • CIF

  • FCA

  • EXW

  • DAP

Correct answer: CIF

Cost Insurance Freight (CIF) is a common Incoterm that applies to sea and inland waterway transport. CIF indicates the seller is responsible for the cost, the marine insurance, and the freight charges on an ocean shipment of goods. 

Free Carrier (FCA) applies to any mode of transportation and means that the seller is responsible for all export requirements and loading the goods. 

EX Works (EXW) applies to any mode of transportation and means the seller is only responsible for packaging the goods and leaving them at their facility for pickup by the buyer. 

Delivered At Place (DAP) applies to any mode of transportation and means the seller is responsible for getting the product to the buyer, but they are not responsible for import clearance, duties, or unloading the goods. 

94.

What is the definition of inventory velocity?

  • How often inventory turns over during the year

  • How quickly inventory can go from dock to stock

  • The speed at which inventory gets from the supplier to the consumer

  • A measure of the warehouse operations efficiency

Correct answer: How often inventory turns over during the year

Inventory velocity is a measure of how fast inventory turns during the year. None of the other options are used to determine inventory velocity.

95.

Which of the following is not a purpose of supply chain event management (SCEM)?

  • Generate an automatic message every time any activity is completed

  • Monitor the planned sequence of activities

  • Report any divergence from the plan of activities

  • Generate an automatic alert when an event does not occur

Correct answer: Generate an automatic message every time any activity is completed

Generate an automatic message every time any activity is completed is not a purpose of the supply chain event management (SCEM).

Supply chain event management (SCEM) is the term given to the process of monitoring the planned sequence of activities along a supply chain and the subsequent reporting of any divergence from that plan.

Ideally, SCEM will also enable a proactive and even automatic response to deviations from the plan. Automatic alerts can be established to send a message to the appropriate people each time an expected event does not occur. These alert engines will also monitor the message and escalate it when necessary.

96.

A car part accessories company currently audits inventory once per quarter, but it wants to make a change to keep closer track of inventory levels for its high-value, fast-moving inventory items to identify the root of the counting errors that have led to stockouts. What is the best solution? 

  • Implement cycle counting

  • Use periodic inventory counting

  • Conduct a one-time thorough audit of all inventory across warehouses 

  • Implement just in time (JIT) manufacturing 

Correct answer: Implement cycle counting

Cycle counting is often on a frequent basis, such as daily, and focuses on identifying the reasons for counting errors. 

Periodic counting is when inventory is counted at a recurring interval, such as monthly, quarterly, yearly, etc. Conducting a one-time audit will not solve the ongoing concern. Just In Time (JIT) aims to eliminate all waste and focus on continuous movement but is broader and wouldn't be a more immediate solution for tracking inventory.

97.

Jared's organization states it is an environmentally responsible company. Which of the following options would demonstrate this?

  • The organization transports using rail instead of airlines

  • The organization uses petroleum-based products instead of plant-based products

  • The organization powers its factory by coal instead of solar energy

  • The organization purchases products from distant suppliers instead of local suppliers

Correct answer: The organization transports using rail instead of airlines

If the organization transports using rail instead of airlines, then it is showing that it is an environmentally responsible organization. Transporting via rail uses less fuel than airlines; therefore, this option is environmentally responsible.

The organization uses petroleum-based products instead of plant-based products is incorrect because plant-based products have a smaller environmental impact than petroleum-based products.

The organization powers its factory by coal instead of solar energy is incorrect because factories powered by solar energy have a smaller environmental impact than factories powered by coal.

The organization purchases products from distant suppliers instead of from local suppliers is incorrect because products purchased locally require less fuel than products purchased from distant suppliers.

98.

In a pure pull system, the organization does not hold any inventory and only produces to order. It is very difficult for many companies to adopt it, mainly because of long lead times. This leads them to adopt what system?

  • Hybrid push-pull system

  • Push system

  • Cartesian system

  • Push start system

Correct answer: Hybrid push-pull system

Companies adopt a push-pull hybrid system where the initial stages of the supply chain employ a push system, and the end stages are operated in a pull-based manner. The decoupling point is the push-pull boundary where the real demand penetrates upstream in the supply chain. There needs to be coordination on either side of the boundary point so that there is an adequate buffer inventory to satisfy customer demand.

The other choices are incorrect because companies who cannot institute a pure pull system institute a hybrid push-pull system, not a push system, Cartesian system, or push start system.

99.

Red Laser LLC, a technology company which is trying to develop smart shoes activated by toe prints, is desperate to get their product to market. The manufacturing company who is developing the software which will interface with the shoe is working around the clock to get their module manufactured because Red Laser will pay an additional $2 per unit if they can ship the products four weeks earlier than quoted. What type of agreement is most likely in place for this to happen?

  • An incentive contract

  • A blanket purchase order

  • Annualized contract

  • Service Level Agreement (SLA)

Correct answer: An incentive contract

An incentive contract will discuss all normal aspects of a standard contract, but it has an added section discussing additional rewards for additional services, such as defined defect rate, early completion, market satisfaction, etc. A blanket purchase order is an order with specific quantities and delivery dates spread over time. An annualized contract is a long-term agreement that discusses pricing, quantities, and timing. Service Level Agreements (SLA) document how performance is measured between a supplier and a buyer and what happens when agreed upon metrics or milestones are not met. 

100.

What is the Six Sigma approach in a continuous improvement effort that looks to improve on an existing process?

  • DMAIC

  • NAFTA

  • KORUS

  • CSCP

Correct answer: DMAIC

DMAIC is the Define, Measure, Analyze, Improve and Control process that is a continuous improvement process of Six Sigma that is often used to improve on existing processes or issues.  

NAFTA is the North American Free Trade Agreement, KORUS is the Korean-US Free Trade Agreement, and CSCP is Certified Supply Chain Professional.

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