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Quiz Session - Attempts With Random Questions

APICS CSCP Exam Questions

Page 6 of 50

101.

Which of the following helps detect inflation by taking samples of the actual prices charged for a range of consumer goods?

  • Consumer price index (CPI)

  • Producer price index (PPI)

  • Consumer confidence index (CCI)

  • Gross confidence index (GCI)

Correct answer: Consumer price index (CPI)

The consumer price index (CPI) helps detect inflation by taking samples of the actual prices charged for a range of consumer goods.

The producer price index (PPI) helps indicate producers’ opinions regarding the economy by measuring the prices obtained by domestic producers for goods and services. The consumer confidence index (CCI) uses consumers’ feelings regarding the economy and their likelihood to make purchases based on their feelings about the economy. The gross confidence index (GCI) is incorrect because it is not a metric used to assess the economy.

102.

Which term refers to how fast products, information, or processes move through the supply chain?

  • Velocity

  • Visibility

  • Vitality

  • Variability

Correct answer: Velocity

Velocity is defined by the APICS Dictionary, 15th Edition, as “a term used to indicate the relative speed of all transactions, collectively, within a supply chain community. A maximum velocity is most desirable because it indicates a higher asset turnover for stockholders and faster order-to-delivery response for customers.”

103.

A Kaizen Blitz is a rapid continuous improvement process focusing on a limited area and includes the workers involved with the process(es). What is a key benefit of including workers involved with the process(es)?

  • Increases likelihood of process improvement ownership

  • The workers do not need to be trained on continuous improvement methodologies

  • Reduces the need for management to get involved with continuous improvement initiatives

  • The cost of the projects will be minimized

Correct answer: Increases likelihood of process improvement ownership

Including workers involved with the process(es) being improved should increase the likelihood of process improvement ownership by the workers; this will improve the probability the solutions will be adopted and sustained.

All process improvement team members should be trained on fundamental tools. Continuous improvement should be a culture driven by and including management. While costs might be minimized, low cost should not be an objective. Some projects may result in high-cost solutions, but expenses should be offset by greater benefits.

104.

The marketing mix and the four Ps of marketing are often used as synonyms for each other. Which of the following is not one of the Ps?

  • Production

  • Place

  • Price

  • Promotion

Correct answer: Production

Production is not one of the four Ps of marketing, as the four Ps of marketing are product, place, price, and promotion.

The marketing mix helps define the marketing elements for successfully positioning your market offer. One of the best-known models is the four Ps, which helps define marketing options in terms of product, place, price, and promotion.

105.

An export trading company (ETC) is an export-import intermediary that does which of the following?

  • Identifies importers, oversees export agreements, prepares and presents paperwork, and arranges transportation

  • Completes required documents to assist importers who are importing goods through customs

  • Purchases and resells space on inland carriers

  • Merges small shipments to form full-vehicle shipments

Correct answer: Identifies importers, oversees export agreements, prepares and presents paperwork, and arranges transportation

An export trading company (ETC) is an export-import intermediary that identifies importers, oversees export agreements, prepares and presents paperwork, and arranges transportation.

A customs house broker is an export-import intermediary that completes required documents to assist importers who are importing goods through customs. A consolidator is an export-import intermediary that merges small shipments to form full-vehicle shipments. A non-vessel operating common carrier (NVOCC) is an export-import intermediary that purchases and resells space on inland carriers.

106.

Which design process considers returns for repairs, refurbishment, or component recovery?

  • Design for reverse logistics

  • Design for X

  • Design for logistics

  • Design for environment

Correct answer: Design for reverse logistics

Design For Reverse Logistics (DFRL) considers the return process. Reverse logistics covers the complete supply chain dedicated to the reverse flow of products and materials. 

Design For X (DFX) designs a product to meet a company's strategic design considerations. Design For Logistics (DFL) aims to minimize logistics costs. Design For Environment (DFE) designs products to meet environmental, sustainability, safety, and corporate social responsibility goals.

107.

The four groups of ratios used to determine an organization’s financial health are liquidity ratios, activity ratios, leverage ratios, and profitability ratios. Which of the following best describes leverage ratios?

  • It measures how much debt an organization is using to finance the business

  • It measures how quickly an organization can convert assets into cash

  • It measures how effectively an organization utilizes its assets

  • It measures an organization’s return on investments

Correct answer: It measures how much debt an organization is using to finance the business

Leverage ratios measure how much debt an organization is using to finance the business. An example of a leverage ratio is the current debt to equity [Current debt to equity = Current liabilities/Equity].

Liquidity ratios measure how quickly an organization can convert assets into cash. Activity ratios measure how effectively an organization utilizes its assets. Profitability ratios measure an organization’s return on investments.

108.

A business offering free shipping and expedited delivery services where the competition does not is potentially an example of what?

  • An order winner

  • An order qualifier

  • Order reliability

  • Logistics resilience

Correct answer: An order winner

An example of this is Amazon Prime's offering, which includes delivery and expedited services being preferred over other options that do not have Amazon Prime.

An order qualifier is the minimum to compete for business. For example, a pizza place must offer online ordering and delivery to qualify to compete for online business.

109.

Which software system has the goal of optimizing plant material requirements, capacity, and resources while balancing them against customer service, resource utilization, and profitability goals?

  • Advanced planning and scheduling (APS)

  • Master production scheduling (MPS)

  • Rough cut capacity planning (RCCP)

  • Material requirements planning (MRP)

Correct answer: Advanced planning and scheduling (APS)

 Advanced Planning and Scheduling (APS) includes any computer program that uses advanced mathematical algorithms or logic to perform optimization or simulation on capacity scheduling, sourcing, capital planning, resource planning, forecasting, demand management, etc. For example, APS may generate multiple scenarios for production options, and then management may select one as the official plan. 

The other options are for scheduling production/supply and not a software system although software applications may support them.

110.

Supplier scorecards are often used to track certain KPIs, such as on-time delivery, product defect, response time, adherence to requirements, lead time, and other areas to determine risk. What type of assessment is a supplier scorecard?

  • Supplier evaluation

  • Supplier certification

  • Performance alert

  • Supplier colocation

Correct answer: Supplier evaluation

Supplier evaluations measure and rate the performance of a supplier and identify areas of improvement. Supplier certification is a process that ensures a particular product or process is manufactured according to a defined requirement. A performance alert is a way to share supplier performance issues with the supplier to advise about an area of concern. 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. 

111.

Each year, Reynolds Manufacturing plant, maker of the finest tinfoil hats in all of Nevada, takes in close to $100K in revenues from their largest customer, the Area 51 Believer's Club.   Recently, the club decided to move their business over to E.T Folio Co. Due to the size of the yearly orders Reynolds has been receiving, they do not have a large customer base and are doing everything to coax the Believer's Club to give them one more shot, otherwise Reynolds may fold. What type of customer is the Area 51 Believer's Club for Reynolds Manufacturing?

  • A win-back customer

  • A loyal customer

  • A vulnerable customer

  • A prospective customer

Correct answer: A win-back customer

A win-back customer is a former customer viewed as a "must have back" customer. Loyal customers are those who are least likely to look at the competition for products or service. A prospective customer is not currently a customer but has the possibility of one day becoming one. A vulnerable customer is a customer who is at risk of purchasing goods or services from a competitor.   

112.

The basic equation used for an income statement is which of the following?

  • Income = Revenues – Expenses

  • Income = Revenues + Expenses

  • Income = Revenues + Gross Profit

  • Income = Revenues – Gross Profit

Correct answer: Income = Revenues – Expenses

The basic equation used for an income statement is Income = Revenues – Expenses. An income statement is defined by the APICS Dictionary, 15th Edition, as “a financial statement showing the net income for a business over a given period of time.”

113.

Sensitivity analysis and simulation are two common tools used to explain how risks impact parts of a supply chain system. Which statement is false regarding the simulation tool?

  • It can only change one variable at a time

  • It can change multiple variables at any given time

  • It is used to examine the behavior of systems utilizing various operating policies

  • It can use artificial data to reproduce various conditions that may occur during actual performance

Correct answer: It can only change one variable at a time

It is false that the simulation tool can only change one variable at a time, as it can change multiple variables at any given time. The sensitivity analysis tool can only change one variable at a time.

It is true that the simulation tool can change multiple variables at any given time, it is used to examine the behavior of systems utilizing various operating policies, and it can use artificial data to reproduce various conditions that may occur during actual performance. Simulation is defined by the APICS Dictionary, 15th Edition, as:

  1. “The technique of using representative or artificial data to reproduce in a model the various conditions that are likely to occur in the actual performance of a system. It is frequently used to test the behavior of a system under different operating policies.
  2. Within MRP II, using the operational data to perform what-if evaluations of alternative plans to answer the question, ‘Can we do it?’ If yes, the simulation can then be run in the financial model to help answer the question, ‘Do we really want to?’”

114.

Identifying risks is an important step in the supply chain process. What is a method that can be used to think through and identify possible risks? 

  • Brainstorming

  • Reviewing customer transactions

  • Reviewing sales data

  • Comparing forecasts to actual demand

Correct answer: Brainstorming

A risk-related brainstorming session looks at the supply chain, supply and demand processes, technology, environment, hazards, security, finance, malfeasance, and legal regulatory and litigation risks. Each risk and its attributes are then entered into a risk register for tracking purposes. 

The other options are related to demand and sales, although data can be used to help the brainstorming process. 

115.

The Supply Chain Operations Reference (SCOR) model allows users to integrate the supply chains and measure performance. The SCOR model utilizes six process categories in order to separate supply chain operations, one of which is plan. 

What does the plan process category include?

  • Balancing resources with requirements

  • Scheduling deliveries

  • Managing work-in-process

  • Invoicing customers

Correct answer: Balancing resources with requirements

The plan process category of the SCOR model includes the balancing of resources with requirements. It also includes establishing plans for the supply chain.

Scheduling deliveries is included in the source process category of the SCOR model. Managing work-in-process is included in the make process category of the SCOR model. Invoicing customers is included in the deliver process category of the SCOR model.

116.

At its root, what is the purpose of a CRM?

  • To respond to a customer's wants or needs and differentiate a firm as an order winners vs. an order loser

  • To better manage innovative product design and differentiate a firm as an order winners vs. an order loser

  • To be a central location for all legal agreements 

  • To better manage relationships with suppliers and differentiate a firm as an order winners vs. an order loser

Correct answer: To respond to a customer's wants or needs and differentiate a firm as an order winner vs. an order loser

The APICS Dictionary, 16th Edition defines Customer Relationship Management (CRM) as "A marketing philosophy based on putting the customer first. The collection and analysis of information designed for sales and marketing decision support (software tool) to understand and support existing and potential customer needs."

117.

Governments have forged partnerships and other custom agencies to improve border security and to prevent terrorists from intrusion into supply chains. The Authorized Economic Operator (AEO) program is a security partnership formed by which country?

  • European Union

  • United States

  • Singapore

  • China

Correct answer: European Union

The Authorized Economic Operator (AEO) program is a security partnership formed by the European Union. Forging a security partnership is voluntary when importing; however, if an importer does not forge a partnership, their imports will be subject to additional security measures that cause lengthy delays in the movement of goods.

The Customs-Trade Partnership Against Terrorism (C-TPAT) is a security partnership formed by the United States. The Secure Trade Partnership (STP) is a security partnership formed by Singapore. The AA rating for customs is a security partnership formed by China.

118.

Transportation is an important aspect of the supply chain. What is the difference between a 3PL and a 4PL service provider?

  • A 4PL provider will outsource the logistic functions, and a 3PL will perform them

  • 3PL and 4PL are either transportation or warehousing service providers

  • 4PL providers own the trucks and the warehouse

  • 3PL providers manage the logistics and will outsource the functions

Correct answer: A 4PL provider will outsource the logistic functions, and a 3PL will perform them

3PL is a firm that provides multiple logistics services for use by the customer. Services can include transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding. 4PL is a supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organization with those of complementary service providers to deliver a comprehensive supply chain solution. Commonly outsourced services are warehousing, information technology, transportation, inventory planning, etc.

3PL and 4PL are either transportation or warehousing service providers is incorrect because 4PL is a supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organization.

4PL providers own the trucks and the warehouse is incorrect because this describes a 3PL provider.

3PL providers manage the logistics and will outsource the functions is incorrect because this describes a 4PL provider.

119.

Can a company use both a customer relationship management (CRM) system and a supplier relationship management (SRM) system at the same time?

  • Yes. CRM and SRM systems work together

  • No. A company must use a CRM or SRM and choose which one aligns with their supply chain model

  • Yes, but they need to be part of a broader enterprise resource planning (ERP) system

  • Yes and no. Companies can have both CRM and SRM systems, but only one can be used at a time

Correct answer: Yes. CRM and SRM systems work together

Customer Relationship Management (CRM) and Supplier Relationship Management (SRM) work hand in hand to support supplier and customer functions, as they both focus on developing long-term relationships. 

120.

Communication has different formats that need to be considered for proper delivery and impact. What type of formats must a firm take into consideration when it is determining if it wants to relay a message only to its employees, or to all its stakeholders?

  • An internal or external communication

  • A vertical or horizontal message

  • An official or non-official format

  • A formal or informal communication

Correct answer: An internal or external communication

The difference between an internal or external message will determine if the message is inside an organization or outside to the public. A vertical or horizontal message will indicate if the message is meant to be relayed to all levels within an organization, or only across certain departments. An official  or non-official format determines if the message is on or off the record. A formal or informal communication determines if the message is documented and approved or casual.   

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