APICS APICS Certifications CSCP Questions & Answers

• Question 11:

  The make-or-buy decision typically would include considerations about:

  A. feasibility of vendor-managed inventory (VMI).

  B. legal consequences of consignment.

  C. total ownership costs.

  D. cross-docking capabilities at supplier sites.

  Correct Answer: C

  Total ownership costs go beyond the initial purchase price and include factors like production costs, storage costs, transportation costs, maintenance costs, and any other costs incurred throughout the life cycle of the product or component.

• Question 12:

  The ultimate goal of a supply contract is to achieve which of the following outcomes?

  A. Minimize the risk of stockouts for the buyer.

  B. Reduce the risk of excess inventory for the supplier.

  C. Share risk and increase profits for both entities.

  D. Decrease quality issues and product returns.

  Correct Answer: C

• Question 13:

  A purchase order becomes a contract when the:

  A. proposal is submitted by the supplier.

  B. purchase order is sent to the supplier.

  C. purchase order is accepted by the supplier.

  D. goods are received.

  Correct Answer: C

• Question 14:

  Which of the following set of services is typically handled by fourth-party logistics (4PL) providers?

  A. Warehousing and transportation

  B. Customer service and forecasting

  C. Information technology (IT) management

  D. Supply chain network design

  Correct Answer: D

  Fourth-party logistics (4PL) providers typically handle services such as supply chain network design.

• Question 15:

  When a company is evaluating the performance of its order fulfillment process, which of the following outcomes should be the primary consideration?

  A. An increase in gross profit margin

  B. An increase in shipping efficiency

  C. Meeting customer needs

  D. Exceeding industry benchmarks

  Correct Answer: C

  When evaluating the performance of an order fulfillment process, the primary consideration should be meeting customer needs.

• Question 16:

  Which of the following approaches to supply chain risk management is most appropriate when designing the structure of a supply chain network?

  A. Creating an adaptive community of business partners in the supply chain

  B. Developing the ability to quickly respond to disruptions in the supply chain

  C. Incorporating redundancy in the supply chain

  D. Planning for excess capacity in the supply chain

  Correct Answer: C

  Incorporating redundancy into the supply chain involves having multiple suppliers, production facilities, and distribution channels in place. This redundancy can help to mitigate the impact of disruptions by providing alternative sources of supply or routes to market.

• Question 17:

  An effective supplier relationship management (SRM) program selects a supplier based on the supplier's:

  A. status as a Tier 1 or Tier 2 supplier.

  B. interdependence with the company.

  C. ability to bring in additional suppliers.

  D. level of influence over the performance of the supply chain.

  Correct Answer: D

  An effective supplier relationship management (SRM) program selects a supplier based on the supplier's level of influence over the performance of the supply chain.

• Question 18:

  Variability in the supply chain can be minimized by:

  A. applying the bullwhip effect.

  B. reducing lead time.

  C. increasing safety stock.

  D. increasing forecast frequency.

  Correct Answer: B

• Question 19:

  Which of the following approaches to quality includes defining defects through determination of customer expectations?

  A. Acceptable quality level (AQL)

  B. Six sigma

  C. Design for quality

  D. Total quality management (TQM)

  Correct Answer: D

  Total quality management (TQM) is a comprehensive approach to quality management that emphasizes customer satisfaction. One of the key principles of TQM is that defects should be defined based on customer expectations.

• Question 20:

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

  A. How much inventory should be ordered at one time, and when will the order be placed?

  B. What is the importance of the inventory item, and how will the inventory items be controlled?

  C. How much inventory should be ordered at one time, and what is the importance of the inventory item?

  D. When will the order be placed, and how will the inventory items be controlled?

  Correct Answer: B