APICS CSCP Online Practice Questions and Exam Preparation

APICS CSCP Online Questions & Answers

• Question 191:

  In the Supply Chain Operations Reference-model (SCOR?, the cash-to-cash cycle time for a manufacturing company is the number of days between which two of the following situations?

  A. Paying for raw materials and getting paid for the product
  B. Shipping the product from the warehouse and receiving it at the customer's location
  C. Paying for raw materials and sending an invoice to the customer
  D. Billing the customer and getting paid for the product
  A. Paying for raw materials and getting paid for the product

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  Explanation

  The cash-to-cash cycle time in the SCOR?model represents the duration it takes for a company to convert its investments in inventory and other resources into cash flows from sales. This metric is crucial for understanding the efficiency of a company's supply chain and working capital management. It is calculated as the number of days between paying for raw materials (cash outflow) and receiving payment for the finished product (cash inflow). This measure includes the time materials spend in production, the duration finished goods remain in inventory, and the time taken for the company to collect payment from customers. SCOR?Model documentation by APICS "Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl

• Question 192:

  One of the drawbacks to using ISO 26000 is that it:

  A. is one of the most expensive ISO standards to implement
  B. incorporates different standards for different countries
  C. only provides guidance and cannot be certified as can other ISO standards
  D. is only recognized by a few countries, due to the strict standards
  C. only provides guidance and cannot be certified as can other ISO standards

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  Explanation

  One of the drawbacks to using ISO 26000 is that it only provides guidance and cannot be certified as can other ISO standards. ISO 26000 offers guidance on social responsibility but is not intended for certification purposes. Guidance

  Standard: ISO 26000 is designed to assist organizations in contributing to sustainable development beyond legal compliance. Non-Certifiable: Unlike ISO standards like ISO 9001 or ISO 14001, ISO 26000 cannot be used for certification,

  limiting its application for companies seeking formal recognition.

  Focus Areas: It covers areas such as organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, and community involvement.

  "ISO 26000: The Business Guide to the New Standard on Social Responsibility" by Lars Moratis and Timo Cochius

  International Organization for Standardization (ISO) Resources

• Question 193:

  Asking customers purchasing snack foods whether they also would like to purchase a beverage is an example of:

  A. cross-selling.
  B. customer service.
  C. product marketing.
  D. upselling.
  A. cross-selling.

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  Explanation

• Question 194:

  A sales and marketing directory who wants to transform a company into a customer-driven organization most likely would consider:

  A. Allowing customers to use their preferred channels to interact will the company.
  B. Implementing an independent system to capture customer data
  C. initiating a social media presence.
  D. focusing product design on manufacturing strengths
  A. Allowing customers to use their preferred channels to interact will the company.

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  Explanation

  Transforming a company into a customer-driven organization involves prioritizing customer pand enhancing their experience. Allowing customers to use their preferred channels to interact with the company ensures that the organization is accessible and responsive to customer needs. This approach increases customer satisfaction and loyalty by making it easier for them to engage with the company on their terms. Implementing an independent system to capture customer data (B), initiating a social media presence (C), and focusing product design on manufacturing strengths (D) are important, but the most direct way to become customer-driven is to facilitate seamless and preferred interactions.

  Kotler, P., and Keller, K. L. (2016). Marketing Management. Pearson. Peppers, D., and Rogers, M. (2016). Managing Customer Experience and Relationships: A Strategic Framework. Wiley.

• Question 195:

  Which of the following supply chain areas utilize order management cost metrics?

  A. Distribution
  B. Inspection
  C. inbound freight
  D. Commodity management
  A. Distribution

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  Explanation

  Order management cost metrics are used to measure the efficiency and effectiveness of order processing and fulfillment activities. These metrics often include costs related to order entry, order processing, order picking, packing, and shipping, and customer delivery. Distribution is a key area in the supply chain where these metrics are crucial, as it involves the actual handling and movement of goods from the manufacturer to the end customer. This includes warehousing, inventory management, transportation, and delivery activities. Tracking these costs helps organizations optimize their distribution processes and reduce operational expenses.APICS Dictionary "Logistics and Supply Chain Management" by Martin Christopher

• Question 196:

  A company has a single manufacturing facility. It distributes the products through retail stores located in various regions. Which of the following distribution strategies will minimize the company's warehousing costs?

  A. Utilizing third-party logistics (3PL) providers
  B. Pooling inventory in regional warehouses shipping to multiple retail
  C. Shipping directly from the manufacturing facility to retail locations
  D. Cross-docking at regional warehouses shipping to multiple retail stores
  C. Shipping directly from the manufacturing facility to retail locations

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  Explanation

  Shipping directly from the manufacturing facility to retail locations is known as direct shipping or direct-to-store delivery. This strategy minimizes warehousing costs by eliminating the need for intermediate storage facilities. By shipping products directly to retail locations, the company reduces the handling and storage costs associated with warehousing. While utilizing 3PL providers, pooling inventory, and cross-docking can also be effective, they involve additional

  warehousing and handling steps, which can increase overall costs.

  Simchi-Levi, D., Kaminsky, P., and Simchi-Levi,

  E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. https://www.logisticsmgmt.com

• Question 197:

  Customer demand is 120 units per week. The company works on a 9-hour shift per day, 5- day per week basis. Each shift has a ?hour lunch break and two 15-minute coffee breaks. The cycle time is 12 minutes. To meet demand, production must occur at the rate of one unit every:

  A. 12 minutes.
  B. 20 minutes.
  C. 22.5 minutes.
  D. 28 minutes.
  B. 20 minutes.

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  Explanation

  To determine the required production rate, we first need to calculate the total available production time per week and then divide it by the weekly demand. Calculate the total available production time per day:

  Calculate the total available production time per week:

  Calculate the required cycle time to meet demand:

  Thus, to meet the customer demand, production must occur at the rate of one unit every 20 minutes.

  Stevenson, W. J. (2021). Operations Management. McGraw-Hill Education. Heizer, J., Render, B., and Munson,

  C. (2020). Operations Management:

  Sustainability and Supply Chain Management. Pearson.

• Question 198:

  Interpersonal communication skills and negotiation with suppliers is important because it:

  A. enables the buying organization to partner with suppliers
  B. drives higher price breaks and lot size discounts
  C. allows the most competitive suppliers to remain viable
  D. is essential to achieve cost-cutting targets
  A. enables the buying organization to partner with suppliers

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  Explanation

  Interpersonal communication skills and negotiation with suppliers are critical for establishing strong partnerships. Effective communication fosters mutual understanding and trust, which are the foundations of long-term relationships. These skills allow the buying organization to align with suppliers on goals, expectations, and performance standards. Negotiation helps in creating agreements that are beneficial to both parties, ensuring that suppliers are motivated to maintain quality and reliability. While driving price breaks and discounts (B), keeping competitive suppliers viable (C), and achieving cost- cutting targets (D) are important, the primary advantage lies in forming strategic partnerships that lead to a more resilient and collaborative supply chain.

  Monczka, R. M., Handfield, R. B., Giunipero, L. C., and Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning. Burt,

  D. N., Petcavage, S. D., and Pinkerton, R. L. (2010). Supply Management. McGraw-Hill/Irwin.

• Question 199:

  Which of the following forecasting methods can overcome some of the major limitations of the survey method by adopting anonymity, controlled feedback, and statistical responses?

  A. Delphi
  B. Collaborative forecasting
  C. Exponential smoothing
  D. Regression
  A. Delphi

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  Explanation

• Question 200:

  In the analysis of costs, fixed costs are those that are:

  A. independent of the volume of output.
  B. dependent on the utilization of the asset.
  C. inversely proportionate to the volume of output.
  D. constant through the useful life of the asset.
  A. independent of the volume of output.

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  Explanation

  Fixed costs are those expenses that remain constant regardless of the volume of output produced. These costs do not fluctuate with changes in production levels, making them independent of output volume. Examples of fixed costs include rent, salaries, and insurance. They are incurred even when production levels are zero. Fixed costs are not dependent on asset utilization, inversely proportionate to output, or constant through the useful life of the asset but are instead constant in relation to production volume.

  Horngren,

  C. T., Datar, S. M., and Rajan, M. V. (2014). Cost Accounting: A Managerial Emphasis. Pearson. Drury,

  C. (2013). Management and Cost Accounting. Cengage Learning.