APICS APICS Certifications CSCP Questions & Answers

• Question 141:

  Which of the following entities assumes ownership of goods once loaded on an ocean vessel using Incoterms? freight on board (FOB)?

  A. The carrier

  B. The buyer

  C. The seller

  D. The insurer

  Correct Answer: B

  Under FOB (Free On Board), ownership of the goods transfers from the seller to the buyer once the goods are loaded onto the vessel at the port of origin.

• Question 142:

  Which of the following statements is true when selecting the mode of transportation to use in a global supply chain?

  A. The difference in cost of warehousing in different countries makes air transportation viable only for very lightweight items.

  B. When moving heavy items long distances, water transportation offers the lowest cost and highest availability in most countries.

  C. Pipeline usage is limited because of the high variable cost of operation and difficulty moving between pipelines.

  D. The availability, specifications, and geographic reach of rail transportation varies greatly from country to country.

  Correct Answer: D

• Question 143:

  A company has determined that products sold to a large, strategic customer have unacceptable low variable margins. Which of the following strategies should the company use to improve profitability of sales to that customer?

  A. End the relationship and seek out a profitable customer to replace it.

  B. Implement a balanced scorecard.

  C. Evaluate the products' value to the customer and adjust prices accordingly.

  D. Move the production of the products to a low labor cost location.

  Correct Answer: C

• Question 144:

  Organizations can take which of the following actions as an outcome of SWOT analysis?

  A. Publish their internal positive factors.

  B. Emphasize their internal negative factors.

  C. Take advantage of external positive factors.

  D. Control external negative factors.

  Correct Answer: C

• Question 145:

  Returning product containing hazardous material to the factory to be neutralized after its expiration date is an example of product:

  A. reuse.

  B. remanufacturing.

  C. recovery.

  D. refurbishing.

  Correct Answer: C

• Question 146:

  A company's strategic plan includes marketing products in countries that have environmental laws covering complete product life cycles. The most appropriate practice to ensure compliance in these countries is implementation of:

  A. environmentally responsible manufacturing.

  B. environmental scanning.

  C. value stream analysis.

  D. logistics social responsibility.

  Correct Answer: A

• Question 147:

  The primary benefit of an effective sales and operations planning (SandOP) process is that it provides a:

  A. procedure for defining product family priorities.

  B. means to evaluate the feasibility of material requirements planning (MRP).

  C. direct and consistent dialogue between operations and senior management.

  D. statement of production assuming unlimited resources.

  Correct Answer: C

  The primary benefit of an effective sales and operations planning (SandOP) process is that it provides a direct and consistent dialogue between operations and senior management.

• Question 148:

  The primary purpose of implementing supplier relationship management (SRM) is to:

  A. minimize legal contracts.

  B. identify strategic sources of supply.

  C. enable sole or single sourcing.

  D. streamline the procurement process.

  Correct Answer: B

  The primary purpose of implementing supplier relationship management (SRM) is to identify strategic sources of supply that can provide a competitive advantage for the organization.

• Question 149:

  Which of the following elements of total quality management (TQM) results in a lower overall cost of the product?

  A. Aesthetics of the product

  B. Prevention of failures

  C. Speed to deliver

  D. Compliance to regulations

  Correct Answer: B

• Question 150:

  Which of the following risks does currency fluctuation pose if a company is operating globally?

  A. It creates a requirement for additional inventory.

  B. It impacts supplier performance due to frequent replenishment.

  C. It requires compensation to local governments.

  D. It changes the relative profit expected from the sales

  Correct Answer: D