APICS CSCP Exam Dumps

APICS CSCP Sample Question Answers

Question # 1

Which of the following factors is the most important driver of supply chain change? 

Health and safety concerns 
 Competitor actions 
 Government regulations 
Customer perceptions of value

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Question # 2

A company is considering relocating production to a lower-wage country. Volatility in which of the following areas most likely would impact profitability without modifying product landed costs? 

Labor costs 
Currency exchange rates 
Commodity prices
Product quality

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Question # 3

Managing risk should be a strategic part of supply chain management because:

the occurrence of unanticipated risks essentially can be eliminated. 
not all members of the supply chain consider and respond to the same types of risks.
substantial financial penalties can be assessed if legal requirements are not met. 
 it helps to reduce the occurrence and consequences of unplanned negative events. 

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Question # 4

The primary contribution from an enterprise resources planning system in building supply chain capability is:

real-time manufacturing planning
 improved decision making. 
 ease of implementation
timely order tracking

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Question # 5

Which of the following factors is most important to consider when deciding on offshore outsourcing of manufacturing to a supplier?

Size of the supplier organization
Total cost of ownership
Supplier performance history
 Supplier certification 

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Question # 6

Which of the following actions is most appropriate when implementing a strategy to create customer-affordable value?

Use a more rapid transportation mode. 
Increase safety stock.
Extend product warranty
Employ lean principles. 

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Question # 7

Which of the following factors should be considered when establishing an inventory policy? 

Customer demand 
Selling price history 
Historical service levels
 Number of customers

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Question # 8

On-time delivery performance in the supply chain can best be improved by aligning required capacity with what type of capacity? 

Demonstrated 
Rated
Budgeted 
Theoretical 

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Question # 9

Which of the following processes ensures that functional plans are consistent?

Strategic planning
Sales and operations planning
Project planning 
Master scheduling

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Question # 10

When evaluating several possible supply chain options, a firm considering the minimal total cost should: 

 ensure that the inventory levels are as low as possible to minimize holding costs while still providing adequate customer service.
account for the combined costs of holding buffer inventory and incurring inventory shortages
consider the costs of acquiring, holding, and transporting inventory, and of servicing customers. 
place buffer inventory in the lowest cost locations that meet lead time and service level requirements from customers. 

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Question # 11

The benefit most likely to result from a collaborative forecasting process is:

improvement in forecast accuracy.
 improvement in forecast responsiveness. 
reduction of the coefficient of variation.
reduction of forecasting effort. 

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Question # 12

Which of the following tools is most important in developing strategic sourcing?

Price break analysis
Network analysis 
 Blanket purchase order 
 Spend analysis 

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Question # 13

A company discovers that several high-volume customers have very erratic ordering patterns. Which of the following actions is most likely to reduce variability?

Checking the demand status multiple times daily
 Establishing Internet-enabled collaborative relationships 
Implementing electronic data interchange transactions 
Increasing safety-stock levels for items these customers order 

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Question # 14

A distributor has a network consisting of a central distribution center serving five regional distribution centers that ships to multiple retailers. The distributor wants to reduce inventory while maintaining product availability. Which of the following actions is most likely to produce the desired outcome? 

Centralizing inventory for slow-moving items 
Reducing the quoted price for slow-moving item
Implementing cross-docking at the central distribution center
Implementing continuous replenishment at the regional centers

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Question # 15

A company understates current revenue forecasts and delays the delivery of orders to meet the forecast. The most likely result of this practice is that shipments will peak:

at the beginning of reporting periods. 
randomly throughout reporting periods
at both the beginning and end of reporting periods. 
 at the end of reporting periods. 

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Question # 16

Which of the following techniques allows users to automate the notification of appropriate parties when exceptions to specific business rules occur?

Enterprise resources planning
Supply chain event management
Advanced planning and scheduling 
 Automatic identification and data capture 

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Question # 17

Which of the following costs is an example of ordering cost?

Inspection labor
Inspection labor
Cost of capital invested 
Insurance

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Question # 18

A distribution requirements planning system is implemented primarily to monitor or manage: 

supplier capacity. 
customer demand. 
inventory replenishment. 
 demand variation. 

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Question # 19

Which of the following statements indicates an attribute of international commercial terms (Incoterms)? 

They are required contract terms for international trade. 
Each term implies the responsibilities of the buyer and seller. 
Discounts and surcharges are identified by the terms. 
 The terms are reviewed annually by the International Chamber of Commerce

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Question # 20

Which of the following factors are fundamental to transportation performance? 

Full truck loads, maintenance, discounts 
 Quality, Just-in-Time, invoicing 
Contract performance, order tracking, flexibility
Cost, speed, delivery consistency

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Question # 21

Which of the following benefits should a supplier expect to receive by becoming a certified supplier?

Reduction in redundant processes with buyer 
Increase in price of items sold
Increase in access to competitive information
Reduction in number of items utilizing vendor-managed inventory 

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Question # 22

A retailer sets service-level targets intended to maximize total profit. The retailer's service level target should be highest for items with a high profit margin and: 

low variability of demand. 
made to stock.
small replenishment lot size. 
made to order. 

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Question # 23

Which of the following manufacturing strategies typically generates the lowest supply chain inventory?

Make to Stock
Assemble to Order
Make to Order
Engineer to Order

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Question # 24

The theory of constraints (TOC) works best in an environment where the:

product mix for the operation changes daily. 
constraint cannot be easily managed. 
constraint cannot be easily identified.
 constraint persists long enough to be managed effectively. 

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Question # 25

Which of the following activities is an important phase of product life-cycle management?

Developing supplier relationships 
Implementing performance measurements 
Designing supply chain logistics 
Incorporating key design elements 

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Question # 26

Standardization of supply chain processes is most likely to facilitate achievement of which of the following activities?

Reducing the total cost of ownership
Tracking the effects of improvement initiatives 
Creating project consensus 
 Understanding of operational metrics

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Question # 27

Organizations that change from a traditional purchasing perspective to a supply chain perspective most likely will adopt techniques related to: 

product pricing. 
value stream analysis.
centralized decision making.
sourcing multiple suppliers. 

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Question # 28

Which of the following continuous improvement methodologies focuses on reduction of defects by reducing process variation?

Just-in-Time (JIT)
Kaizen 
Six Sigma
Theory of constraints

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Question # 29

Prioritizing customer needs is best accomplished by:

. sharing information with key customers. 
installing a new enterprise resources planning system.
responding to customer requests in the order they are received.
 establishing policies and procedures for honoring customer requests. 

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Question # 30

Which of the following actions by a group of trading partners is most likely to improve the flow of funds among them?

Increasing the level of information sharing and collaboration
. Negotiating a single set of terms for the trading partners
Reducing the time allowed for the timely payment discount
Implementing links among their information systems

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Question # 31

A firm may use which of the following technologies to track the flow of inventory across its entire supply chain?

 Distribution requirements planning
Radio frequency identification 
Transportation management system
Warehouse management system

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Question # 32

Which of the following strategies is most appropriate for managing unknown risks in a global supply chain?

Vertical integration 
Technology integration with suppliers 
Investing in redundancy 
Strengthening supplier relationships 

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Question # 33

A firm has determined its cash-to-cash cycle time to be 60 days. The number of days' payables outstanding is 25, and number of days' sales outstanding is 35. If the firm reduces its inventory by 20%, the new cash-to-cash cycle time, in days, will be approximately:

48
50
60
88

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Question # 34

Which of the following changes often leads to higher levels of inventory?

 Decrease in customer service level
Decrease in vendor lead times 
 Increase in economies of scale 
Increase in warehouse holding costs 

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Question # 35

A company that desires to implement a strategy for inventory management must define which of the following factors?

Reliability and maintainability requirements
Variability in the customer demand
Overall item effectiveness
Inventory carrying costs

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Question # 36

Which of the following conditions is most likely to occur shortly after the introduction of an innovative product family? 

Forecast errors will be low.
Production lead time will increase. 
An inventory buffer will be required.
Demand will be stable. 

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Question # 37

A key assumption of the economic order quantity (EOQ) is that: 

future demand cannot be projected. 
the rate of demand is continuous and constant
reorder frequency is fixed.
as the lot size decreases, the setup cost per unit decreases. 

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Question # 38

Which of the following manufacturing strategies would run the greatest risk of increasing obsolete inventory costs?

 Make-to-stock
Assemble-to-order
Make-to-order
 Engineer-to-order 

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Question # 39

The most appropriate approach to balance supply and demand over the medium term is:

A. Enterprise resource planning (ERP) 
Business planning 
Strategic planning 
Sales and operations planning (S&OP) 

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Question # 40

Supplier certification procedures verify that a supplier:

is ISO certified.
implements, documents, and improves procedures related to customer requirements.
tracks manufacturing processes, including bills of material and routings to support the processes.
manufactures products to the specifications shown on engineering documents and bills of material. 

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Question # 41

Which of the following circumstances best describes a roadblock to implementing customer relationship management and supplier relationship management? 

Concern about conflicts of interest with partners in the supply chain 
 Lack of defined industry standards 
Deterioration of customer service levels 
 Increased access to information for supply chain partners 

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Question # 42

Which of the following supplier performance factors typically is most critical for organizations that outsource production?

Speed
 Reliability 
Flexibility
Malfunction recovery 

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Question # 43

The most appropriate frequency for the sales and operations planning process typically is:

weekly. 
monthly. 
quarterly.
annually

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Question # 44

A company most likely would implement a supplier certification program to:

improve the supplier's procurement process.
abide by ISO standards.
validate the supplier's compliance with requirements.
implement point-of-sale (POS) terminals. 

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Question # 45

Which of the following approaches typically would be most effective in increasing inventory velocity in a supply chain?

Using faster modes of transportation
. Using third-party logistics firms
Reducing the inventory idle time
Adding capacity at bottlenecks

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Question # 46

The lowest-cost supply network design requires balancing inventory costs and which of the following types of costs?

Administrative 
Manufacturing
Transportation 
Sales and marketing 

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Question # 47

Effective sales and operations planning (S&OP) can contribute most to which of the following objectives?

Increasing product quality 
Increasing the number of new customers
Reducing unexpected customer requests 
Reducing excess inventory 

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Question # 48

The most common method for coping with demand variability in the manufacture of products with a lengthy cycle time is to have: 

higher raw material inventory. 
higher finished-goods inventory
lower finished-goods inventory.
lower raw material inventory.

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Question # 49

Which of the following elements is critical to successfully using a sales and operations planning process? 

Focusing on performance of the past 12 to 18 months
Implementing a unified cross-functional plan and process 
 Implementing bottom-up decision making 
Aligning the forecast to the annual budget 

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Question # 50

How does a mass customization product design strategy relate to component commonality, modular design, and product universality? 

 Modular design is necessary for mass customization. 
Component commonality does not support mass customization.
Universality is a prerequisite for mass customization strategy. 
Both universality and modular design are required for mass customization. 

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Question # 51

The ABC classification system answers which two of the following inventory-related questions?

How much inventory should be ordered at one time, and when will the order be placed?  
What is the importance of the inventory item, and how will the inventory items be controlled?
How much inventory should be ordered at one time, and what is the importance of the inventory item?
When will the order be placed, and how will the inventory items be controlled?

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Question # 52

What are the three principle categories of forecasting methods?

Seasonal, trend, and promotional events 
Moving average, exponential smoothing, and Holt-Winters 
Qualitative, extrinsic, and intrinsic 
Annual, monthly, and daily requirements 

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Question # 53

A project team has received 30 improvement ideas from subject matter experts in the business. Which of the following continuous improvement tools would be most appropriate to use to sequence implementation timing based on an agreed-upon weighted criteria?

Affinity diagram
Matrix diagram 
Prioritization matrix
Interrelationship digraph

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Question # 54

Companies interested in developing programs to pinpoint customer loyalty rely on customer relationship management tools that produce which of the following outputs?

Transaction management
Forecast, process, and information sharing
 Churn analysis and prediction
Event and service management 

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Question # 55

An organization is partnering with a supplier. The most appropriate tool to ensure that the supplier has the necessary capabilities is:

a supplier-input-process-output-customer diagram. 
supplier certification. 
supplier relationship management. 
supplier performance evaluation. 

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Question # 56

Which of the following methodologies is most appropriate to use to drive continuous improvement?

Define-measure-analyze-improve-control process 
Kanban 
Poka-yoke 
Pareto analysis

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Question # 57

An information technology system that couples enterprise resources planning and an advanced planning system would be most appropriate for which of the following types of business operations?

Multiple plants in multiple industries 
Multiple plants in the same supply chain
Multiple supply chains of different products
 Multiple supply chains of the same product 

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Question # 58

A company has revenues of $100,000, which includes 10% supply chain expense and 80% other expenses. Which of the following actions will result in the largest increase in gross profit?

Increase sales by 25%
. Increase sales by 10% and reduce supply chain expense to 8%
Increase sales by 15% and reduce supply chain expense to 9%. 
 Reduce supply chain expense to 5%. 

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Question # 59

Which two of the following tools should be used with an enterprise resources planning system to build realistic supply chain models and to plan the most profitable flow of goods across the chain? 

An advanced planning and scheduling system and simulators 
An inventory planning and management system and simulators
A vendor managed inventory system and customer relationship management 
 Customer activity planning and logistics management 

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Question # 60

Which of the following activities is forbidden in a foreign trade zone?

Remarking or repackaging imports to avoid fines 
Breaking up large shipments to reduce import duties
Reexporting goods without paying duties 
Conducting retail trade

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Question # 61

A firm has increased finished-goods inventories for several products to compensate for increased variability in demand. The firm analyzed shipment data and determined that the variability was due to a few customers placing large orders for single shipments to obtain discounts. Which of the following actions is the firm most likely to take to maintain sales and reduce variability in demand? 

Reducing discounts for large orders 
Encouraging high-volume customers to place blanket orders 
 Implementing extrinsic forecasting methods 
Increasing the level of safety stock on high-volume products 

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Question # 62

A company used Global Reporting Initiative guidelines to complete a self-assessment. Which of the following actions would be the most appropriate next step?

Share information with all stakeholders 
Obtain top management support 
Identify action items 
Conduct gap analysis 

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Question # 63

Which of the following situations is a consequence of global operations?

Decreased logistic cost 
Increased logistic complexity 
Reduced product variety 
Longer lead times 

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