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Quiz Session - Attempts With Random Questions

APICS CSCP Exam Questions

Page 7 of 50

121.

Regarding supply chain design, leverageable materials are said to have which of the following attributes?

  • High strategic importance and low supply chain difficulty

  • Low strategic importance and low supply chain difficulty

  • Low strategic importance and high supply chain difficulty

  • High strategic importance and high supply chain difficulty

Correct answer: High strategic importance and low supply chain difficulty

Leverageable materials are said to have high strategic importance and low supply chain difficulty. Leverageable materials have multiple suppliers who compete for business.

Commodity materials are said to have low strategic importance and low supply chain difficulty. Direct/core competency materials are said to have high strategic importance and high supply chain difficulty. Bottleneck materials are said to have low strategic importance but high supply chain difficulty.

122.

Which of the below is an example of process risk?

  • Disruption of IT infrastructure 

  • Explosion at a raw material provider's factory

  • An oil spill

  • Economic slowdown

Correct answer: Disruption of IT infrastructure

The four types of risk under Supply Chain Risk Management (SCRM) include supply, demand, process, and environmental. Disruption to IT infrastructure would be an example of a failure in business processes. 

Explosion at a supplier's factory is an example of impact on supply.

Slowdown of the economy will impact demand.

An oil spill is an environmental risk. 

123.

Which of the following is an example of a vertically integrated supply chain?

  • Controlling the raw material source, transport, refining, and assembly of final goods

  • Outsourcing assembly to an outside party

  • Using comparative advantage and buying raw materials from overseas suppliers

  • Integrating all raw material sources but outsourcing transportation and machining

Correct answer: Controlling the raw material source, transport, refining, and assembly of final goods

The two types of supply chain integration include horizontal and vertical integration. Vertical supply chain integration means control of all aspects upstream and downstream in the supply chain.

124.

Which is a quantity of inventory that exceeds forecast or gross requirements and is used to protect against demand and lead time variability? 

  • Safety stock

  • Cycle inventory

  • Load

  • Shrinkage

Correct answer: Safety stock

Safety stock is also referred to as a buffer. Safety stock is usually planned to be in inventory to prevent against fluctuations in demand or supply, such as a random spike in sales from an ad promoted by a social media influencer. 

Cycle inventory, or cycle stock, depletes gradually as customer orders are received and is replenished cyclically when supplier orders are received. Load does not refer to inventory but to the amount of planned work at a work center. Shrinkage, or inventory shrinkage, is a reduction of actual quantities of items in stock, in process, or in transit—often from theft, deterioration, etc. 

125.

Which type of product design always has the customer in mind, and focuses on cost, aesthetics, performance and anything else a customer may want?

  • Design for quality

  • Design for supply chain

  • Design for the environment

  • Design for sales

Correct answer: Design for quality

Design for quality creates new products with the customer in mind, focusing on any attributes the customer may want in the design.

126.

A company clearly declares they are willing to accept risks of delayed transport in sourcing from specific developing countries that experience disruptions in logistics infrastructure. This is an example of which of the following? 

  • Risk tolerance

  • Risk mitigation

  • Risk avoidance

  • Risk acceptance

Correct answer: Risk tolerance

Risk tolerance is the readiness to accept a threat or potential negative outcome to achieve its objectives. In this example, the company is willing to accept disruptions in the delivery of goods. 

Risk mitigation is reducing exposure to risk in terms of either its likelihood or its impact. Risk avoidance means changing a plan to completely eliminate a risk or to protect objects from its impact. Risk acceptance is a decision to take no action to deal with a risk or an inability to format a plan to deal with the risk. 

127.

External stakeholders in a business’s supply chain include customers, investors/lenders, governments, and which of the following?

  • Communities and trading partners

  • Communities only

  • Trading partners only

  • Employees only

Correct answer: Communities and trading partners

Communities/environment and companies in the supply chain (trading partners) are all supply chain stakeholders.

128.

Steve works for ABC Inc, and they are going through an ERP upgrade. Steve is responsible for fixing and deleting all the inaccurate, incomplete, corrupt and duplicate data from the old system into the new system. What process is Steve performing on the data?

  • Data cleansing

  • Data aggregation

  • Data mining

  • Data normalization

Correct answer: Data cleansing

Data cleansing makes sure all current data is accurate, complete and unique and gets rid of corrupted or incomplete data. Data aggregation looks at raw data and interprets it in meaningful ways. Data mining extracts useful information based on a certain set of criteria. Data normalization standardizes the data format to the same structure and logic, especially important when pulling data from various sources.  

129.

A vehicle returns empty after making a delivery. This is an example of what?

  • Deadheading

  • Backhauling

  • Shipment reconciliation

  • Dwell time

Correct answer: Deadheading

Deadheading is when a vehicle returns empty after making a delivery.

Backhauling is when a vehicle obtains a load for the return trip after making a delivery. 

Shipment reconciliation validates that a shipped carton quantity matches the delivered carton quantity. 

Dwell time refers to the time a vehicle remains idle while waiting to pick up or deliver a shipment. 

130.

A make-to-order business model using the pull-type supply chain is when a company starts manufacturing after receiving the order from the customer. Which of the following is the opposite business model that uses the push-type supply chain?

  • Make-to-stock

  • Build-to-order

  • Assemble-to-order

  • Design-to-production

Correct answer: Make-to-stock

The opposite business model to make-to-order is to manufacture products for stock, or make-to-stock, which is a push-type production. In a make-to-stock company, the emphasis is on having the right components and subassemblies in inventory to be able to make the final product to customer specification. In the make-to-stock model, products are typically finished before receipt of a customer order, and customer orders are usually filled from existing stock, and production orders are used to fill stock. 

In contrast to make-to-stock, the APICS Dictionary, 16th Edition defines the make-to-order approach as "a production environment where a good or service can be made after receipt of a customer's order" and it defines the make-to-stock approach as "a production environment where products can be and usually are finished before receipt of a customer order."

131.

Which fabrication strategy is a hybrid between make-to-stock and make-to-order and allows for customization?

  • Assemble-to-order

  • Design-to-stock

  • Build-to-order

  • Build-to-stock

Correct answer: Assemble-to-order

The assemble-to-order (ATO) strategy is a hybrid between a make-to-stock strategy, where products are fully produced in advance, and the make-to-order strategy, where products are manufactured once the order has been received. The ATO strategy attempts to combine the benefits of both strategies: getting products into customers' hands quickly while allowing for the product to be customizable.

132.

ABC Inc. has put out a transportation bid to move 100 units of inflatable office furniture for an office party. The supplier is in New York and the party is in Los Angeles in three days. The requirements for the transporter are that the load must arrive on time, or the transportation is free. Speedy Delivery sees and accepts the bid, knowing they can make it. What type of risk response is Speedy Delivery taking?

  • Risk acceptance

  • Risk transference

  • Risk avoidance

  • Risk mitigation

Correct answer: Risk acceptance

Risk acceptance occurs when a company weighs the risk associated with an action, and decides to proceed with an action. Risk transference occurs when a company moves its risk off to another party, making them responsible for accepting any consequences that may occur. Risk avoidance occurs when a company does not want to accept any risk if something does not go their way. Often this means not entering into an agreement or accepting a PO. Risk mitigation occurs when a company understands and accepts the risks, but takes additional actions to further reduce this risk.

133.

A company is reviewing its freight invoices and sees a charge for demurrage. What is this fee?

  • An extra charge for holding a freight car or truck beyond the specified time allowed in the contract

  • A tax levied on the value of imported goods

  • Pickup fee

  • Delivery handling fee

Correct answer: An extra charge for holding a freight car or truck beyond the specified time allowed in the contract

Demurrage is a penalty fee when a freight car, truck, or container is held for too long, often charged by shipping port terminal authority, such as sea port terminals or rail yard terminals. It is charged based on days surpassing "free days" allowed to store at a terminal. 

A tax levied on the value of imported goods is a duty or tariff. 

The other options are general fees that may be charged for pickup and delivery handling. 

134.

Phillip is brainstorming with his quality improvement team in order to list all the possible reasons as to why the paint is peeling from the tractor hoods. Once Phillip and his team are done, he will investigate the most likely reasons. 

Which basic tool of quality is Phillip and his team using?

  • Cause-and-effect diagram

  • Process mapping

  • Control chart

  • Pareto chart

Correct answer: Cause-and-effect diagram

A cause-and-effect diagram is the basic tool of quality that Phillip and his team are using. A cause-and-effect diagram is a diagram used to organize a process’s or a problem’s causes and subcauses for investigation. 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.

Process mapping is defined by the APICS Dictionary, 15th Edition, as “a diagram of the flow of a production process or service process through the production system.” 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).

135.

Which best describes supplier certification? 

  • Verifying that a supplier operates, maintains, improves, and documents effective procedures that relate to the customer's requirements

  • Providing an award to the supplier with the most improvement in efficiency for the year

  • Conducting pre-shipment inspections of product before it is shipped from the supplier and before final payment is made

  • Using a letter of credit as a way to help ensure payment of goods

Correct answer: Verifying that a supplier operates, maintains, improves, and documents effective procedures that relate to the customer's requirements

Supplier certification is about verifying that customer requirements are met. These requirements from the customer can include cost, quality, delivery, risk management, equipment maintenance, safety, and ISO quality and environmental standards.

Providing rewards like recognition for performance is a form of incentivizing suppliers. Conducting pre-shipment inspections is a way of monitoring quality and inventory counts. Letters of credit are a way of reducing financial risk. 

136.

What does the master production scheduler focus on when a company is in a make-to-stock environment?

  • Finished goods ready for warehousing

  • Actual customer demand

  • Raw material provisioning

  • Finished goods ready for delivery to consumers

Correct answer: Finished goods ready for warehousing

In a make-to-stock environment, the master scheduler aims at precisely defining the required quantity per period for each finished product. The manufacturing department uses this information to produce the goods for warehousing. When a product is sold, it will be shipped from the warehouse, not from the manufacturer.

The other choices are incorrect because a make-to-stock system produces goods for warehousing, not for customer demand, raw material provisioning, or consumer delivery.

137.

Which of the following is an example of continuous replenishment (CR), also known as rapid replenishment?

  • A retail store passes daily POS information to its suppliers, and inventory is sent down the chain without an order being placed.

  • A materials supplier automates their system to review purchase orders and ship them to their customers more effectively.

  • A raw material supplier provides a level of production every month.

  • A supplier maintains mutually agreed-upon inventory levels with the customer.

Correct answer: A retail store passes daily POS information to its suppliers, and inventory is sent down the chain without an order being placed.

Continuous replenishment (CR) moves materials and inventory down the supply chain proactively without responding to a specific order. When a supplier maintains mutually agreed-upon inventory levels with a customer, that is vendor-managed inventory (VMI).

138.

Shipping companies have fixed costs and variable line haul costs. What is an example of variable line haul costs? 

  • Gas, tolls, room and board

  • Warehousing and security

  • Vehicles and insurance

  • Depreciation

Correct answer: Gas, tolls, room and board

Variable line haul costs are labor and operating charges per mile traveled, including costs related to overhead, oil, gas, tolls, and room and board. 

The other options are all related to fixed costs. 

139.

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 plane?

  • Birdyback

  • Piggyback 

  • Fishyback 

  • Doggyback 

Correct answer: Birdyback 

Birdyback is placing a container on a plane.  

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

140.

Which business-to-business (B2B) marketplace ownership model allows its members to openly trade with one another?

  • Consortia trade exchange

  • Independent public trade exchange

  • Private trade exchange

  • Virtual trading exchange

Correct answer: Consortia trade exchange

Consortia trade exchange is the B2B marketplace ownership model that allows its members to openly trade with one another. 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.”

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.”

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.”

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