APICS CSCP Online Practice Questions and Exam Preparation

APICS CSCP Online Questions & Answers

• Question 341:

  A firm has determined its cash-to-cash cycle time to be 60 days. The number of days' payables outstanding is 25, and number of days' sales outstanding is 35. If the firm reduces its inventory by 20%, the new cash-to-cash cycle time, in days, will be approximately:

  A. 48.
  B. 50.
  C. 60.
  D. 88.
  B. 50.

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  Explanation

  The cash-to-cash cycle time is calculated as the sum of days' sales outstanding (DSO), days' inventory outstanding (DIO), and minus days' payables outstanding (DPO). Given:

  Cash-to-cash cycle time = 60 days

  DSO = 35 days

  DPO = 25 days

  First, determine the DIO: =60+2535=50 daysDIO=60+2535=50 days If inventory is reduced by 20%, the new DIO is: =50?10.20)=40 daysDIOnew =50?10.20)=40 days Now, calculate the new cash-to-cash cycle time: New cash-to-cash cycle

  time=+New cash- to-cash cycle time=DSO+DIOnewDPO New cash-to- cash cycle time=35+4025=50 daysNew cash-to-cash cycle time=35+4025=50 days Therefore, the new cash-to-cash cycle time will be approximately 50 days. Coyle, J.

  J., Langley,

  C. J., Novack, R. A., and Gibson,

  B. (2016). Supply Chain Management: A Logistics Perspective. Cengage Learning. Jacobs,

  F. R., and Chase, R.

  B. (2020). Operations and Supply Chain Management.

  McGraw-Hill Education.

• Question 342:

  The diagram below shows the process of manufacturing of item D and the capacity of each operation. Each operation requires one unit from the previous step.

  

  Which of the following is the total production throughput?

  A. 25 units/hr.
  B. 27 units/hr.
  C. 65 units/hr.
  D. 84 units/hr.
  A. 25 units/hr.

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  Explanation

  To determine the total production throughput, identify the bottleneck operation, which is the operation with the lowest capacity:

  Operation A: 32 units/hr

  Operation B: 25 units/hr

  Operation C: 40 units/hr

  Operation D: 27 units/hr

  Operation B has the lowest capacity at 25 units/hr, making it the bottleneck. The total production throughput is limited by this bottleneck operation, which is 25 units/hr.

  Goldratt,

  E. M., and Cox, J. (1984). The Goal: A Process of Ongoing Improvement.

  North River Press.

  Hopp, W. J., and Spearman, M. L. (2011). Factory Physics. Waveland Press.

• Question 343:

  A company is determining where it should manufacture a product weighing 1 lb. for the Chicago market with a demand of 100,000 items per year. Costs for each of four possible locations are summarized in the table below. If the company wants to minimize the total cost to supply the items to the Chicago market, where should the items be produced?

  

  A. Houston
  B. Taiwan
  C. Chicago
  D. Seattle
  C. Chicago

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  Explanation

  To find the total cost of supplying the items to the Chicago market from each location, we need to multiply the demand (100,000 items) by the sum of the material and labor cost per item, the shipment cost to market per item, and the import duty per item. The shipment cost to market per item can be obtained by dividing the shipment cost to market per 100 lb. by 100, since each item weighs 1 lb. The raw material shipment from source cost is irrelevant for this question, since it does not affect the total cost to supply the items to the Chicago market. Using this formula, we can calculate the total cost for each location as follows: Houston: 100,000 x ($7 + $5/100 + $0) = $712,000 Taiwan: 100,000 x ($6 + $6/100 + $2) = $814,000 Chicago: 100,000 x ($10 + $0/100 + $0) = $1,000,000 Seattle: 100,000 x ($12 + $5/100 + $0) = $1,205,000 The location with the lowest total cost is Chicago, with $1,000,000. Therefore, the items should be produced in Chicago to minimize the total cost to supply the items to the Chicago market.

• Question 344:

  Which of the following processes is included in reverse logistics?

  A. Designing a new product out of recycled material
  B. Restoring a worn-out product to like-new condition
  C. Reducing the amount of packaging material in a product
  D. Compensating a more durable packaging design for multiple transports
  B. Restoring a worn-out product to like-new condition

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  Explanation

  According to the APICS CSCP - Supply Chain Management Certification, reverse logistics is the process of planning, implementing, and controlling the efficient and effective flow of products, materials, information, and money from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal. Restoring a worn-out product to like-new condition is an example of reverse logistics, as it involves returning a used product from the customer to the supplier or manufacturer for repair, refurbishment, remanufacturing, or recycling.

• Question 345:

  A company is aggressively pursuing improvements in the financial performance of its supply chain. The company should first focus its efforts on which of the following metrics?

  A. Process takt time
  B. Cycle count accuracy
  C. Number of inventory turns
  D. Number of first-tier suppliers
  C. Number of inventory turns

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  Explanation

  The number of inventory turns is a key metric that measures how often a company's inventory is sold and replaced over a period. It is a critical indicator of inventory management efficiency and directly impacts financial performance by influencing cash flow, carrying costs, and storage needs. By focusing on improving inventory turns, a company can reduce excess inventory, lower carrying costs, and free up capital for other uses. This can lead to improved profitability and better financial performance across the supply chain.

  Coyle, J. J., Langley,

  C. J., Novack, R. A., and Gibson,

  B. (2016). Supply Chain Management: A Logistics Perspective. Cengage Learning. Chopra, S., and Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

• Question 346:

  A shipping company investing to reduce damages due to weather conditions is an example of:

  A. risk tolerance.
  B. risk exposure.
  C. risk mitigation.
  D. risk resilience.
  C. risk mitigation.

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  Explanation

  Investing to reduce damages due to weather conditions is an example of risk mitigation. Risk mitigation involves taking proactive steps to reduce the adverse effects of potential risks. In this case, the shipping company is investing in

  measures such as better packaging, improved weather forecasting systems, or reinforced shipping routes to protect against weather-related damages. These actions help to minimize the impact of weather risks on their operations, ensuring

  more reliable and safe delivery of goods.

  Waters,

  D. (2007). Supply Chain Risk Management: Vulnerability and Resilience in Logistics.

• Question 347:

  Which of the following objectives is a critical measure of distribution logistics operating performance?

  A. Part number rationalization
  B. Transportation cost reduction
  C. Improved carrier selection
  D. Production lead time reduction
  B. Transportation cost reduction

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  Explanation

  A critical measure of distribution logistics operating performance is transportation cost reduction. Transportation cost is the amount of money spent on moving products or materials from one location to another, such as from suppliers to warehouses, or from warehouses to customers1. Transportation cost reduction is the process of minimizing the transportation cost by optimizing the transportation modes, routes, frequencies, and capacities2. Transportation cost reduction can improve the distribution logistics operating performance by increasing the profitability, efficiency, and customer satisfaction of the distribution network34. The other options are not as critical or relevant as the correct answer. Part number rationalization is the process of reducing the number of different parts or components used in a product or a process, by standardizing, consolidating, or eliminating them5. It can improve the distribution logistics operating performance by simplifying the inventory management, reducing the inventory cost, and enhancing the quality and reliability of the product or process. However, it is not a direct measure of distribution logistics operating performance, but rather a design or engineering decision that affects the distribution logistics. Improved carrier selection is the process of choosing the best transportation service provider for a given shipment, based on criteria such as cost, speed, reliability, and availability. It can improve the distribution logistics operating performance by reducing the transportation cost, improving the delivery time, and ensuring the safety and security of the shipment. However, it is not a measure of distribution logistics operating performance, but rather a factor or input that affects the distribution logistics. Production lead time reduction is the process of decreasing the amount of time it takes to produce a product or a service, from the start of the production process to the end of the production process. It can improve the distribution logistics operating performance by reducing the inventory level, increasing the responsiveness to demand changes, and enhancing the customer satisfaction. However, it is not a measure of distribution logistics operating performance, but rather a measure of production or manufacturing operating performance.

• Question 348:

  Before discontinuing a product based on costs, one should primarily consider the effects upon:

  A. research and development (RandD) costs of new products,
  B. overhead absorption rates across product lines,
  C. value stream mapping of complementary products,
  D. the cost of other products in the portfolio.
  D. the cost of other products in the portfolio.

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  Explanation

• Question 349:

  A company plans to implement a new software application for inventory optimization. Which of the following actions will most likely reduce the implementation time?

  A. Purchase the new software and host it on secure cloud servers
  B. Develop the new software in-house and purchase additional hardware
  C. Purchase the new software and customize it
  D. Integrate the new software with supply chain partners
  A. Purchase the new software and host it on secure cloud servers

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  Explanation

  Purchase vs. Develop In-House: Purchasing software rather than developing it in- house saves significant time, as the development process is lengthy and requires extensive testing and debugging. Cloud Hosting Benefits: Hosting on secure

  cloud servers eliminates the need for setting up and configuring hardware infrastructure, which can be time-consuming. Cloud hosting providers often offer robust security, scalability, and maintenance, further reducing implementation time.

  Customization and Integration: Customizing purchased software or integrating it with existing systems (Options C and D) generally increases the complexity and duration of the implementation process. Therefore, simply purchasing and

  hosting the software on the cloud (Option A) is the most time-efficient approach.

  Jacobs,

  F. R., Chase, R. B., and Lummus, R. R. (2014). "Operations and Supply Chain Management." McGraw-Hill Education.

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

  E. (2008). "Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies." McGraw-Hill.

• Question 350:

  In an assemble-to-order manufacturing environment, the master production schedule is typically the schedule of:

  A. resources.
  B. customer orders.
  C. components and subassemblies.
  D. the final assembly.
  C. components and subassemblies.

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  Explanation

  In an assemble-to-order (ATO) manufacturing environment, the master production schedule (MPS) typically focuses on components and subassemblies. Here's the explanation:

  ATO Environment: In an ATO system, products are assembled only after an order is received. The final products are built using standard components and subassemblies that are stocked in advance.

  Master Production Schedule (MPS):

  Efficiency and Responsiveness:

  Process Flow: The MPS will detail the production schedule for components and subassemblies, ensuring that these parts are manufactured and available to meet the assembly requirements dictated by customer orders.

  Vollmann, T. E., Berry, W. L., Whybark,

  D. C., and Jacobs,

  F. R. (2005). Manufacturing Planning and Control Systems for Supply Chain Management. Heizer, J., Render, B., and Munson,

  C. (2017). Operations Management:

  Sustainability and Supply Chain Management.