APICS APICS Certifications CSCP Questions & Answers

• Question 21:

  A retailer that operates a three-level distribution network is considering eliminating one level in the network and shipping directly from the regional warehouses to the retail outlets. Which of the following outcomes is most likely to result?

  A. Total transportation costs will decrease.

  B. Retail outlet order frequency will decrease.

  C. Deliveries to the retail outlets will decrease in number.

  D. Risk pooling benefits will decrease.

  Correct Answer: D

• Question 22:

  When a company operates in a vendor-managed inventory (VMI) environment, the cash-to-cash cycle time for the buying firm begins when it: A. receives a fulfillment order.

  B. places a replenishment order.

  C. processes payment for a replenishment order.

  D. begins a production order.

  Correct Answer: B

  In a vendor-managed inventory (VMI) environment, the cash-to-cash cycle time for the buying firm begins when it places a replenishment order. This is because the vendor is responsible for managing the inventory levels of the buyer, and the buyer only pays for the inventory when it is shipped from the vendor.

• Question 23:

  Supplier quality and delivery performance are critical inputs to which of the following initiatives?

  A. Developing a sourcing strategy

  B. Implementing reverse logistics

  C. Opening a new retail store

  D. Implementing total quality management (TQM)

  Correct Answer: A

  A sourcing strategy is a plan created by a company to identify, evaluate, and engage suppliers for acquiring goods and services. It involves determining which suppliers can provide the best quality products or services and the most reliable and efficient delivery.

• Question 24:

  Which of the following items typically is substituted for inventory to improve supply chain performance?

  A. Cash

  B. People

  C. Information

  D. Customer service

  Correct Answer: C

• Question 25:

  When a company's supplier relations, logistics, and information systems support customer satisfaction, the most likely result will be an increase in:

  A. product reliability.

  B. market share.

  C. profitability.

  D. information integration.

  Correct Answer: C

• Question 26:

  A master production schedule serves a company best by functioning as a:

  A. dispatch list.

  B. demand planning tool.

  C. priority planning tool.

  D. supplier scheduling system.

  Correct Answer: C

• Question 27:

  A method of inventory pooling in the distribution process is:

  A. storing inventory in multiple locations.

  B. adding levels and locations to the distribution network.

  C. rebalancing inventory among supply chain entities.

  D. increasing safety stock levels.

  Correct Answer: C

• Question 28:

  The first step in developing a product differentiation strategy is to:

  A. study customer needs.

  B. define customer segments.

  C. determine design modifications.

  D. establish competitive priorities.

  Correct Answer: A

• Question 29:

  One reason for including risk management as a strategic part of supply chain management is that:

  A. the occurrence of unanticipated risks essentially can be eliminated.

  B. not all members of the supply chain respond to the same types of risks.

  C. substantial financial penalties can be assessed if legal requirements are not met.

  D. it helps to reduce the occurrence and consequences of unplanned negative events.

  Correct Answer: D

• Question 30:

  Using which of the following elements, in addition to purchase price, describes the use of the total cost of ownership (TCO) model to make procurement decisions?

  A. Life cycle costs

  B. Transportation costs

  C. Quantity discounts

  D. Economic order quantity (EOQ)

  Correct Answer: A