APICS APICS Certifications CSCP Questions & Answers

• Question 261:

  A company introduced a product that sold at 500% of forecast, forcing the company to allocate available product. Which risk classification best describes this event?

  A. Availability

  B. Process

  C. Demand

  D. Financial

  Correct Answer: C

• Question 262:

  Early supplier involvement (ESI) in product design and development is most likely to result in:

  A. design suggestions and reduced cycle time.

  B. distribution strategy suggestions and reduced lead times.

  C. distribution strategy suggestions and product price suggestions.

  D. product price suggestions and design suggestions.

  Correct Answer: A

• Question 263:

  A group of trading partners manufactures and distributes products. An increase in which of the following factors is most likely to result in an increase in the retailer's supply variability?

  A. Product simplification

  B. Retailer replenishment order quantities

  C. Manufacturer's defect rate

  D. Distributor replenishment frequency

  Correct Answer: B

• Question 264:

  The benefits of supplier relationship management (SRM) can be attributed to:

  A. higher levels of automated transactional processing for lower cost and fewer errors.

  B. improvement of the interactions and business processes between buyers and suppliers.

  C. identification of key suppliers for greater attention from supply chain managers.

  D. observation of the supply base to ensure that suppliers are providing high levels of service.

  Correct Answer: B

  improvement of the interactions and business processes between buyers and suppliers. Supplier relationship management (SRM) focuses on building strong relationships with suppliers, which can lead to better communication, collaboration, and overall process efficiency. By improving interactions and streamlining business processes, companies can reduce costs, enhance innovation, minimize risks, and ensure a more reliable and responsive supply chain. While the other options may be indirect benefits or components of SRM, the primary benefit can be attributed to the improvement of interactions and business processes between buyers and suppliers.

• Question 265:

  Which of the following actions hedges against commodity price fluctuations in a supply chain?

  A. Purchase always from the lowest bidder.

  B. Increase safety stock levels.

  C. Establish an online auction site.

  D. Purchase future options.

  Correct Answer: D

• Question 266:

  Which of the following risks is most likely to occur when implementing a global sourcing strategy?

  A. Internal operating costs will increase due to the additional time to process purchase orders across time zones and cultural barriers.

  B. Achieving economies of scale will be difficult if global shipments are not consolidated at shipping origin.

  C. Inventory carrying costs will increase along with freight costs due to increasing delivery transit times.

  D. Customers could purchase their products and materials elsewhere due to the fact that core operations were outsourced abroad.

  Correct Answer: C

• Question 267:

  Forecasting methods can be grouped into which of the following categories?

  A. Seasonal, trend, and promotional events

  B. Moving average, exponential smoothing, and Holt-Winters

  C. Qualitative, extrinsic, and intrinsic

  D. Annual, monthly, and dally requirements

  Correct Answer: C

• Question 268:

  Which of the following tactics effectively reduces the bullwhip effect?

  A. Reducing lead times among trading partners

  B. Buying large quantities for a substantial discount

  C. Increasing safety stock levels

  D. Increasing the level of advertising

  Correct Answer: A

  Reducing lead times among trading partners is the most effective tactic for reducing the bullwhip effect.

• Question 269:

  A firm has a multilevel distribution network with a central distribution center (DC) and several regional distribution centers. It would be most appropriate to store products with which of the following combinations of cost and demand characteristics only in the central distribution center?

  A. Inexpensive with sporadic customer demand

  B. Inexpensive with seasonal customer demand

  C. Moderate cost with high customer demand

  D. Expensive with sporadic customer demand

  Correct Answer: D

• Question 270:

  Which of the following statements about the International Organization for Standardization (ISO) is true?

  A. ISO 9000 series deals with guidelines and procedures for managing a firm's environmental impact.

  B. ISO 9000 and 14000 series are broad standards that are industry-specific and legally binding.

  C. Most major countries today have accepted the ISO standards because of cost saving guidance.

  D. ISO 9000 or 14000 certification indicates a company conforms to the standard.

  Correct Answer: D