APICS CSCP Online Practice Questions and Exam Preparation

APICS CSCP Online Questions & Answers

• Question 131:

  Which of the following outcomes is most likely a result of allocating excess capacity to a chain facility?

  A. Lower utilization which leads to higher cost
  B. Higher utilization which leads to higher cost
  C. High utilization which leads to lower cost
  D. Lower utilization which leads to lower cost
  A. Lower utilization which leads to higher cost

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  Explanation

• Question 132:

  Which of the following actions is in accordance with the Ten Principles in the United Nations (UN) Global Compact?

  A. Preventing a group of employees from forming a collective bargaining (union) group
  B. Paying different wages in different parts of the world for a given job classification
  C. Requiring an individual to pay a fee for consideration in hiring or promotion decisions
  D. Withholding certain employment opportunities from specific groups of people
  B. Paying different wages in different parts of the world for a given job classification

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  Explanation

  The Ten Principles of the UN Global Compact cover areas related to human rights, labor, environment, and anti-corruption. Principle 6 specifically states the elimination of discrimination in respect of employment and occupation, which includes ensuring fair wages. However, paying different wages in different parts of the world for a given job classification can be acceptable if it reflects local living standards and economic conditions, ensuring fair compensation in each context. Preventing a group of employees from forming a collective bargaining (union) group violates Principle 3, which supports the right to collective bargaining. Requiring an individual to pay a fee for consideration in hiring or promotion decisions breaches principles related to non-discrimination and fair labor practices. Withholding certain employment opportunities from specific groups of people directly violates Principles 1 and 6, which promote human rights and anti- discrimination.

  United Nations Global Compact. (2021). "The Ten Principles of the UN Global Compact." International Labour Organization (ILO). (2021). "Global Wage Report 2020-21."

• Question 133:

  The primary use of the ISO 14001 standard is to allow firms to:

  A. improve the occupational health and safety of employees within the firm's buildings and factories.
  B. demonstrate compliance to allow for faster and easier movement of goods across country borders.
  C. reduce costs by becoming eligible for tax advantages offered for meeting climate goals.
  D. provide guidance in monitoring the impact of activities throughout the life cycle.
  D. provide guidance in monitoring the impact of activities throughout the life cycle.

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  Explanation

  The primary use of the ISO 14001 standard is to provide guidance in monitoring the environmental impact of a firm's activities, products, and services throughout their life cycle. ISO 14001 is an international standard for environmental management systems (EMS) that helps organizations minimize their environmental footprint, comply with regulations, and improve environmental performance. It focuses on a systematic approach to continuous improvement in environmental management.

  International Organization for Standardization (ISO) documentation on ISO 14001. Environmental Management literature.

• Question 134:

  Which of the following advantages of radio frequency identification (RFID) is the main benefit for material handling?

  A. Improved speed and flexibility
  B. Long distance readability
  C. Ability to withstand harsh environments
  D. Detection of multiple tags
  A. Improved speed and flexibility

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  Explanation

  RFID in Material Handling: Radio Frequency Identification (RFID) uses electromagnetic fields to automatically identify and track tags attached to objects.

  Main Benefits:

  Conclusion: The main benefit of RFID for material handling is the improved speed and flexibility it offers, allowing for efficient and agile operations.

  "RFID in Logistics: A Practical Introduction" by Erick

  C. Jones and Christopher A.

  Chung.

  APICS Dictionary, 16th Edition.

• Question 135:

  When determining lot sizes, consideration should be given to balancing which of the following costs?

  A. Quality costs and product costs
  B. Cost of goods sold (COGS) and indirect labor costs
  C. Unit sales price and unit cost
  D. Ordering costs and carrying costs
  D. Ordering costs and carrying costs

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  Explanation

  When determining lot sizes, it is crucial to balance ordering costs and carrying costs. Ordering costs include expenses related to placing and receiving orders, such as administrative expenses, while carrying costs involve the costs of holding

  inventory, such as storage, insurance, and opportunity costs. The goal is to find an optimal order quantity that minimizes the total cost, which is achieved by balancing these two types of costs. This balance is often calculated using the

  Economic Order Quantity (EOQ) model.

  Chopra, S., and Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

  Silver, E.A., Pyke, D.F., and Peterson, R. (1998). Inventory Management and Production Planning and Scheduling. John Wiley and Sons.

• Question 136:

  Which of the following documents includes the valuation of goods for assessment of duties?

  A. Insurance certificate
  B. Export declaration
  C. Bill of landing (B/L)
  D. Commercial invoice
  D. Commercial invoice

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  Explanation

  A commercial invoice is a document used in international trade that includes the valuation of goods for the assessment of duties and taxes. It provides detailed information about the goods being shipped, such as the description, quantity, unit price, total value, and terms of sale. Customs authorities use the commercial invoice to determine the applicable duties and taxes for the shipment. It is a critical document for both the exporter and importer in ensuring compliance with trade regulations.

  Murphy, P.R., and Knemeyer, A.M. (2018). Contemporary Logistics. Pearson. Export.gov (2018). Shipping Basics.

• Question 137:

  In an advanced planning system, which of the following modules feeds the master planning module?

  A. Purchasing planning
  B. Demand planning
  C. Distribution planning
  D. Fulfillment planning
  B. Demand planning

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  Explanation

  In an advanced planning system (APS), the demand planning module feeds the master planning module. Demand planning involves forecasting customer demand and creating a demand plan that considers historical data, market trends, and

  other factors. This information is crucial for the master planning module, which uses it to develop production, procurement, and inventory plans to meet the forecasted demand efficiently. Purchasing planning focuses on procurement activities

  and is influenced by the master plan.

  Distribution planning deals with the logistics of distributing products and relies on the master plan.

  Fulfillment planning involves ensuring customer orders are fulfilled, also based on the master plan.

  Stadtler, H., Kilger, C., and Meyr,

  H. (2014). "Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies." Chopra, S., and Meindl, P. (2016). "Supply Chain Management: Strategy, Planning, and

  Operation."

• Question 138:

  Which of the following principles is included in the United Nations (UN) Global Compact?

  A. Trading blocs
  B. Anti-corruption
  C. Risk management
  D. Accounting standards
  B. Anti-corruption

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  Explanation

  The United Nations (UN) Global Compact includes ten principles in the areas of human rights, labor, environment, and anti-corruption. The anti-corruption principle calls for businesses to work against corruption in all its forms, including

  extortion and bribery. This principle is crucial for promoting transparency and ethical business practices globally. Trading blocs (A) are not part of the UN Global Compact principles. Risk management (C) is important but not specifically a

  principle of the UN Global Compact.

  Accounting standards (D) are related to financial reporting but not directly part of the UN Global Compact principles.

  United Nations Global Compact. (n.d.). The Ten Principles of the UN Global Compact. UN Global Compact.

• Question 139:

  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.
  D. Risk pooling benefits will decrease.

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  Explanation

  Three-Level Distribution Network: Involves central warehouses, regional warehouses, and retail outlets.

  Risk Pooling: Aggregating inventory at fewer locations to reduce variability in demand and inventory costs.

  Impact of Eliminating a Level:

  Comparison with Other Outcomes:

  Conclusion: The most likely outcome is a decrease in risk pooling benefits.

  "Designing and Managing the Supply Chain" by David Simchi-Levi, Philip Kaminsky, and Edith Simchi-Levi. APICS Dictionary, 16th Edition.

• Question 140:

  Continuous improvement is best described as:

  A. a never-ending effort to expose and eliminate root causes of problems.
  B. a never-ending effort by the management team to reduce cycle time.
  C. identifying and implementing big-step improvements within a process.
  D. a process in which a supplier commits to replenishing inventory based on demand without receiving replenishment orders.
  A. a never-ending effort to expose and eliminate root causes of problems.

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  Explanation

  Continuous improvement, often referred to as Kaizen, focuses on making small, incremental changes to processes with the goal of improving efficiency and quality.

  Here's a breakdown of why option A is correct:

  Never-ending effort to expose and eliminate root causes of problems: Continuous improvement is an ongoing process that seeks to identify and address the fundamental causes of inefficiencies and issues. Management effort to reduce cycle

  time: While reducing cycle time is a component of continuous improvement, the primary focus is on identifying root causes. Big-step improvements: Continuous improvement typically involves small, incremental changes rather than large,

  radical changes. Supplier replenishment: This describes a vendor-managed inventory system, not the essence of continuous improvement. Thus, the best description of continuous improvement is a never-ending effort to expose and

  eliminate root causes of problems.

  Imai, M. (1986). Kaizen: The Key to Japan's Competitive Success. Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer.