APICS APICS Certifications CSCP Questions & Answers

• Question 161:

  A new distribution warehouse is added to an existing supply chain network. Which of the following factors primarily is responsible for the resulting overall reduction of customer delivery lead times?

  A. New material handling equipment improves the speed and efficiency of the pick/pack process.

  B. Increased safety stock levels in the overall network results in fewer stockouts and more on-time deliveries.

  C. The average travel time from the distribution warehouse to the customer is reduced.

  D. The territory for each distribution warehouse shrinks, resulting in fewer inbound transportation carriers.

  Correct Answer: C

• Question 162:

  A firm is assessing the risk of business disruption due to several types of natural disasters. When determining the risk of each type of disaster, the firm should consider the probability of each type of disaster and the:

  A. consequences of the disruption.

  B. cost of mitigating the disaster.

  C. firm's capability to mitigate the risk.

  D. forecaster's confidence in the risk probability.

  Correct Answer: A

  probability of a disaster occurring is certainly a factor, the risk assessment is ultimately concerned with the potential impact on the business.

• Question 163:

  Which of the following descriptions represents cash-to-cash conversion?

  A. The conversion time from material acquisition to sales revenue

  B. The conversion time from sales order to receipt of payment

  C. The currency conversion rate when buying and selling goods

  D. The measure of an organization's effective use of inventory

  Correct Answer: B

• Question 164:

  A company desires to use customer relationship management (CRM) to enable supply chain collaboration. Implementation of CRM will enable the organization to most effectively:

  A. sell their products and services to customers by using economic incentives.

  B. provide supply chain visibility to customers and enable them to view the status of orders.

  C. provide means of identifying, capturing, and retaining customers by aligning all resources and capabilities.

  D. enable web-based order entry and electronic data interface.

  Correct Answer: C

• Question 165:

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

  A. Training

  B. Transportation

  C. Warehouse rent

  D. Inspection labor

  Correct Answer: C

• Question 166:

  Improving fill rate is an objective related to which of the following perspectives of a balanced scorecard?

  A. Financial

  B. Learning and growth

  C. Internal business processes

  D. Innovation

  Correct Answer: C

  improving fill rate is primarily related to the internal business processes perspective of the balanced scorecard, as it aims to optimize the efficiency and effectiveness of the fulfillment process within the organization.

• Question 167:

  Which of the following factors is a key motivation for supply chain collaboration?

  A. Technology

  B. Traditional accounting methods

  C. Regular negotiations

  D. A common interest

  Correct Answer: D

• Question 168:

  Inbound logistics is a supply chain management term used for:

  A. receiving, storing, and issuing finished goods to consumers.

  B. activities associated with transforming inputs into final products.

  C. receiving, inventorying, and issuing materials to the production activities.

  D. providing services to customers to maintain the value of the product.

  Correct Answer: C

• Question 169:

  A company planning to build collaborative relationships with trading partners should first:

  A. implement technology for information sharing.

  B. document transaction rules and procedures.

  C. organize cross-enterprise teams.

  D. ensure commitment from top management.

  Correct Answer: D

  Ensuring commitment from top management is the most crucial first step in building collaborative relationships with trading partners.

• Question 170:

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

  A. Reduction in redundant processes with buyer

  B. Increase in price of items sold

  C. Increase in access to competitive information

  D. Reduction in number of items utilizing vendor-managed inventory (VMI)

  Correct Answer: A

  A certified supplier primarily benefits the supplier by reducing redundant processes with the buyer, leading to increased efficiency and improved relationships.