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Quiz Session - Attempts With Random Questions

APICS CSCP Exam Questions

Page 8 of 50

141.

New middleware is process oriented as opposed to data oriented. What is the advantage of process-oriented middleware?

  • It focuses on shared processes

  • Implementation is labor intensive

  • IT personnel must install the middleware

  • Integration is local

Correct answer: It focuses on shared processes

The advantage of process oriented middleware is that it focuses on shared processes and allows multiple systems to communicate over a shared communication method. This allows for system-wide efficient updates. Compare this to data-oriented middleware, which requires a field-by-field data map process. Data-oriented middleware is slow, inefficient, and costly.

The other options are not characteristics of process-oriented middleware.

142.

Capacity requirements planning is a short-range capacity planning technique used to check for which of the following?

  • Practicability of the material requirements plan

  • Practicability of the aggregate production plan

  • Practicability of the distribution requirements plan

  • Practicability of the master production schedule

Correct answer: Practicability of the material requirements plan

Capacity requirements planning is a short-range capacity planning technique used to check for practicability of the material requirements plan.

Resource requirements planning is a long-range capacity planning module used to check for practicability of the aggregate production plan. The practicability of the distribution requirements plan is not a function of capacity planning. A rough-cut capacity plan is a medium-range capacity plan used to check for practicability of the master production schedule.

143.

Several supply chain risks exist. The threat of a third party stealing proprietary software is an example of what kind of loss? 

  • Loss of an intangible asset

  • Loss of tangible asset

  • Loss of goods

  • Loss of revenue

Correct answer: Loss of an intangible asset

Intangible assets include Intellectual Property (IP) such as patents and copyrights, a company's reputation, brand recognition, and goodwill. 

Tangible assets include buildings, land, inventory, and equipment. 

Loss of goods is the loss of products or materials that can occur due to theft, damage, fire, or vandalism. 

Loss of revenue is simply the loss of income for the business that may be a result of many different factors impacting sales. 

144.

Inventory that is not used in the manufacturing process, such as bins, gloves, sandpaper, etc. are examples of what?

  • Maintenance, repair, and operating (MRO) supplies

  • Pipeline inventory

  • Components

  • Raw materials

Correct answer: Maintenance, repair, and operating (MRO) supplies

Maintenance, Repair, and Operating (MRO) supplies are inventory not used in the manufacturing process that are considered indirect materials because they cannot be traced back to a specific finished product and get expensed immediately upon receipt. Examples include work gloves, lubricants, sandpaper, and plastic wrap. 

Pipeline inventory, or in-transit inventory, is the amount of inventory being transported from a supplier to a customer stocking location.

Components are purchased or manufactured assemblies as well as spare parts and semi-finished units and assemblies directly used in the manufacturing transformation process. 

Raw materials are items directly used in the manufacturing transformation process, such as steel, chemical, flour, etc. 

145.

Regarding the strategic importance of materials, materials can be categorized into four basic categories. Which category of materials is said to have low strategic importance but high supply chain difficulty?

  • Bottleneck materials

  • Commodity materials

  • Direct/core competency materials

  • Leverageable materials

Correct answer: Bottleneck materials

Bottleneck materials are said to have low strategic importance but high supply chain difficulty. When it comes to bottleneck materials, suppliers have strong bargaining power because efforts must be made to ensure these items are fulfilled.

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. Leverageable materials are said to have high strategic importance and low supply chain difficulty.

146.

Regarding material requirements planning (MRP), the bills of material tell you which of the following?

  • What parts are needed to produce the product and what quantities of parts are needed

  • What should be produced, how many need to be produced, and when they need to be produced by

  • What is on hand, what is on order, what is the lead time, and if safety stock is needed

  • What should be ordered, what orders need to be expedited, and what orders need to be canceled

Correct answer: What parts are needed to produce the product and what quantities of parts are needed

The bills of material tell you what parts are needed to produce the product and what quantities of parts are needed.

The planned production/purchase orders tell you what should be ordered, what orders need to be expedited, and what orders need to be canceled. The inventory status tells you what is on hand, what is on order, what is the lead time, and if safety stock is needed. The master production schedule tells you what should be produced, how many need to be produced, and when they need to be produced by.

147.

A purchase order is sent to a machine shop that does not hold any finished goods. Once the purchase order is received, the work order is processed and the manufacturing process begins. The purchase order acts as a(n): 

  • demand pull

  • demand push

  • receipt of goods

  • authority to invoice

Correct answer: demand pull

A demand pull is a request from a downstream location to start a process. A pull system relies on demand pulls to initiate processes, rather than build to forecast.

148.

Governments have forged partnerships and other custom agencies to improve border security and to prevent terrorists from intrusion into supply chains. The Partners in Protection (PIP) is a security partnership formed by which country?

  • Canada

  • European Union

  • China

  • Singapore

Correct answer: Canada

The Partners in Protection (PIP) is a security partnership formed by Canada. 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 Authorized Economic Operator (AEO) program is a security partnership formed by the European Union. The Secure Trade Partnership (STP) is a security partnership formed by Singapore. The AA rating for customs is a security partnership formed by China.

149.

Which of the following is a key process of transportation management systems (TMS)?

  • Planning and decision-making to identify transportation costs and to select the fastest delivery type with the fewest stops.

  • Providing a portal for customers to log in and track shipments.

  • Providing macroeconomic analysis and forecasts specifically for ocean shipping lanes.

  • Controlling the daily movement of inventory within a warehouse.

Correct answer: Planning and decision-making to identify transportation costs and to select the fastest delivery type with the fewest stops.

A transportation management system (TMS) is a logistics platform that uses technology to help businesses plan, execute, and optimize the physical movement of goods, both incoming and outgoing. TPS makes sure the shipment is compliant and proper documentation is available. This kind of system is often part of a larger supply chain management (SCM) system.

The other options apply to other services. For example, warehouse management systems (WMS) are responsible for controlling the daily movement of inventory within a warehouse.

150.

Company Z focuses on meeting demand by managing demand by balancing price, speed, product and attitude and by listening to the voice of the customer. What organizational strategy is Company Z using?

  • Customer-focused strategy 

  • Demand-driven strategy 

  • Product-driven strategy 

  • Forecast-driven strategy 

Correct answer: Customer-focused strategy 

The customer-focused strategy places customers’ needs at the core of the business. They listen to the customers for product design, quantity, cost wishes, and delivery dates. These businesses need to be exceptionally agile and efficient to meet the requirements and survive.

A demand-driven enterprise strategy uses actual customer orders to manage and drive production rather than a forecast. Subassemblies and components are kept on hand until actual customer orders drive the finished product.  

A product-driven enterprise strategy is used by companies that have multiple supply chains for the different product groups, depending on if the products are functional, innovative, or both. 

A forecast-driven strategy uses demand forecast to build and manage finished goods. Inventory is pushed to stocking locations and await final orders before shipping. 

151.

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

  • Leveling

  • Waste

  • Inconsistency

  • Overburdening

Correct answer: Leveling

Heijunka is the Japanese term that refers to leveling. Leveling is defined by the APICS Dictionary, 15th Edition, as “Spreading orders out in time or rescheduling operations so that the amount of work to be done in sequential time periods tends to be distributed evenly and is achievable.”

Muda is the Japanese term that refers to waste. Mura is the Japanese term that refers to inconsistency. Muri is the Japanese term for overburdening.

152.

Margaret is the Forecasting Manager for HPI Solutions Co. She knows that much of the manufacturing has a lead time of four weeks and the raw materials can have up to a 16 week lead time. She also knows that her customers can often change their requested ship dates by up to five weeks, so she has to see her customer's forecast for at least the next 25 weeks in order to properly plan to meet their needs. She has spoken with her team and they all agree that in order to hedge some risk, they need to plan at least 32 weeks out. Which concept is Margaret dealing with? 

  • Time horizon

  • Up-selling

  • Cross-selling

  • Supply chain lead time

Correct answer: Time horizon

A time horizon is how far out into the future a company plans, usually for a forecast or inventory planning levels...a longer time horizon satisfies more customers with increased order fill rate. Cross Selling is offering an item or service that compliments a customer's initial purchase, like selling an oil change and a car wash. Up-selling is when a customer is offered a more expensive product or service than they originally intended on buying, like getting an upgraded version of a car, or the next more expensive model. Supply chain lead time is the time it takes for a customer order to be completed without consideration for existing stock.  

153.

An example of organizing factory audits to determine quality management risks before selecting a supplier to source from is an example of what? 

  • Preventive action

  • Contingent action

  • Corrective action

  • Malfunction recovery

Correct answer: Preventive action

Preventive action is action to block nonconformity issues from reoccurring by taking corrective action when an issue is discovered. Another example is using an automated system to test product quality or measurements on the production line to reduce risks of nonconformity. 

Contingent action can help a company quickly respond or recover from a malfunction problem, such as an unexpected strike. 

Corrective actions are actual activities that take place once nonconformity is discovered. 

Malfunction recovery is the process of executing a plan, such as a contingency plan, to resolve a disruption.

154.

ERTY and Sons is an American company and often sells its products to Canadian customers. In order to export the goods, what form must accompany the products when the shipment goes through customs?

  • A commercial invoice

  • A packing slip

  • A failure investigation report

  • A certificate of compliance

Correct answer: A commercial invoice

A commercial invoice is a document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders. Although there is no standard format, the document must include a few specific pieces of information such as the value of the goods. A commercial invoice must also include a signature and a statement certifying that the invoice is true.

The other choices are incorrect because foreign trade requires the use of a commercial invoice, not a packing slip, a failure investigation report, or a certificate of compliance.

155.

Which type of database arranges data using higher-level folders known as parents and subfolders known as children, whereas the children folders can only have one parent?

  • Hierarchical

  • Network

  • Relational

  • Automated

Correct answer: Hierarchical

A hierarchical database arranges data using higher-level folders known as parents, and subfolders known as children, whereas the children folders can only have one parent. The hierarchical database does allow the parent folder to have multiple children, though.

A network database arranges data in any manner that is needed; in so much that children folders can have multiple parents. A relational database arranges data using common attributes. Automated is incorrect because it is not a type of database.

156.

Which inventory cost is the cost incurred when a unit of an item is obtained?

  • Acquisition cost

  • Landed cost

  • Carrying cost

  • Ordering cost

Correct answer: Acquisition cost

Acquisition cost is the inventory cost that is incurred when a unit of an item is obtained. Acquisition cost is defined by the APICS Dictionary, 15th Edition, as “the cost required to obtain one or more units of an item. It is order quantity times unit cost.”

Landed cost is the inventory cost that includes the cost of the product along with the cost of warehousing, transportation, and handling fees. Carrying cost is the inventory cost that is figured as a percentage of the inventory value per unit of time. Ordering cost is the inventory cost that is incurred when placing requisitions.

157.

A CRM system will help companies ultimately land sales if their processes and policies are managed properly.   However, sometimes suppliers have policies that are unattractive to buyers, such as very short payment terms, and actually cause the buyers to turn away from the supplier because of this.   In a CRM system, what is this called?

  • Order losers

  • Order winners

  • Order qualifiers

  • Maintain the order

Correct answer: Order losers

Order losers are company processes or actions that ultimately turn businesses towards competition. Order winners are companies that can manage their processes better than the competition and ultimately land the sale. Order qualifiers are attributes needed to be considered for an order placement, and maintaining the order is not a term in a CRM.

158.

Collaborative planning, forecasting, and replenishment (CPFR®) is a methodology used for the integration of demand management components among supply chain partners. The CPFR® model shows manufacturer, collaboration, and retailers' tasks for each activity. 

Which of the following is not shared in a CPFR integration?

  • Financial profits 

  • POS data

  • Promotion schedules 

  • Inventory levels 

Correct answer: Financial profits 

Financial profits are not shared in CPFR Model.

CPFR® is defined by the APICS Dictionary, 15th Edition, as “a collaboration process whereby supply chain trading partners can jointly plan key supply chain activities from production and delivery of raw materials to production and delivery of final products to end customers. Collaboration encompasses business planning, sales forecasting, and all operations required to replenish raw materials and finished goods.”   

POS data is shared upstream to minimize the bullwhip effect, promotional schedules are shared for adequate capacity and inventory planning, and inventory levels are shared to provide up-to-date information on available to promise.

159.

What step can be taken to recognize the risks which require the greatest financial or resource support? 

  • Risk classification

  • Risk separation

  • Risk drawing

  • Risk manufacturing

Correct answer: Risk classification

Risk classification defines a risk as being internal, external, environmental, technical, or organizational. It also defines the time dimension, which is a specific time horizon such as a day, month, quarter, or year. 

The other options are not terms related to risk management.

160.

The Altman Z-score utilizes weighted ratios to determine an organization’s bankruptcy risk. A red/yellow/green system is used to rate organizations. If an organization is rated green, what does it mean?

  • Organization is fiscally sound

  • Organization is at high risk for bankruptcy

  • Organization has no credit

  • Organization should be closely monitored

Correct answer: Organization is fiscally sound

An organization rated green using the Altman Z-score is fiscally sound. A public Z-score of greater than 3.0 or a private Z-score of greater than 2.6 would be rated green.

An organization rated red using the Altman Z-score is at bankruptcy risk. An organization rated yellow using the Altman Z-score should be closely monitored. "Organization has no credit" is incorrect because it is not a factor of an Altman Z-score.

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