APICS CSCP Online Practice Questions and Exam Preparation

APICS CSCP Online Questions & Answers

• Question 391:

  Potential customers of a company's new product have tight tolerance requirements. The company plans to purchase a critical component. To meet customer requirements, the company should first:

  A. implement statistical process control for the component.
  B. bring manufacturing of the critical component in-house.
  C. develop an alternate source of supply.
  D. certify the supplier of the component.
  D. certify the supplier of the component.

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  Explanation

  When a company plans to purchase a critical component with tight tolerance requirements, the first step to meet customer requirements should be to certify the supplier. Supplier certification ensures that the supplier has the capability to consistently produce components that meet the required specifications. This involves assessing the supplier's quality management systems, production processes, and adherence to standards. Implementing statistical process control for the component is important but typically comes after supplier certification. Bringing manufacturing of the critical component in-house is a significant strategic decision and not necessarily the first step. Developing an alternate source of supply is a risk mitigation strategy but does not directly address meeting tight tolerance requirements initially.

  Juran, J. M., and Godfrey, A.

  B. (1999). "Juran's Quality Handbook." Burt,

  D. N., Petcavage, S., and Pinkerton, R. L. (2010). "Supply Management."

• Question 392:

  A company has an asset turnover ratio of 1.8, inventory of $3,000, a 20% profit margin, and $5,000 in total assets. What is the total sales volume for the company?

  A. $5,400
  B. $9,000
  C. $15,000
  D. $25,000
  B. $9,000

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  Explanation

  The asset turnover ratio is calculated as:

  Asset Turnover Ratio=Total SalesTotal AssetsAsset Turnover Ratio=Total AssetsTotal Sal es

  Given:

  Asset Turnover Ratio = 1.8

  Total Assets = $5,000

  To find the total sales volume:

  Total Sales=Asset Turnover Ratiootal AssetsTotal Sales=Asset Turnover Ratiootal As sets Total Sales=1.8?,000=9,000Total Sales=1.8?,000=9,000 Thus, the total sales volume for the company is $9,000.

  Brigham, E.F., and Houston, J.F. (2018). Fundamentals of Financial Management.

  Cengage Learning.

  Ross, S.A., Westerfield, R.W., and Jaffe, J. (2013). Corporate Finance. McGraw-Hill Education.

• Question 393:

  The most useful inventory costing method which enables purchase price variance analysis is:

  A. average costing.
  B. standard costing.
  C. last in first out (LIFO) costing.
  D. first in first out (FIFO) costing.
  B. standard costing.

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  Explanation

  Standard costing involves assigning expected costs to products, including materials, labor, and overhead. This method allows companies to set cost standards and then analyze variances between the actual costs and the standard costs.

  Purchase price variance analysis specifically examines the differences between the actual price paid for materials and the standard price. This variance analysis is crucial for identifying cost-saving opportunities and managing purchasing

  performance. Other costing methods like average costing, LIFO, and FIFO do not provide the same level of detail for analyzing purchase price variances.

  Horngren,

  C. T., Datar, S. M., and Rajan, M. V. (2015). Cost Accounting: A Managerial Emphasis. Pearson.

  Blocher,

  E. J., Stout,

  D. E., and Cokins,

  G. (2018). Cost Management: A Strategic Emphasis. McGraw-Hill Education.

• Question 394:

  A company would like to benchmark its inventory levels against other companies. Which of the following metrics is best to use for this purpose?

  A. Fill rate
  B. Days of supply
  C. Net asset turns
  D. Cash-to-cash cycle time
  B. Days of supply

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  Explanation

  Days of supply is a metric that measures how long current inventory levels will last given the average daily usage or sales rate. It provides a standard way to compare inventory levels across companies, industries, or time periods. This metric is useful for benchmarking because it directly relates inventory levels to actual usage rates, making it a more precise measure of inventory efficiency than other metrics like fill rate or net asset turns.

  Vollmann, T.E., Berry, W.L., Whybark, D.C., and Jacobs, F.R. (2005). Manufacturing Planning and Control for Supply Chain Management. McGraw-Hill. Chopra, S., and Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

• Question 395:

  A supply chain manager wishes to reduce the time required to execute the order delivery process. Which of the following actions would be an appropriate first step for this initiative?

  A. Assess customer service level
  B. Develop a value stream map of the process
  C. Shorten the demand time fence (DTF)
  D. Increase warehouse personnel
  B. Develop a value stream map of the process

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  Explanation

• Question 396:

  Organizations can take which of the following actions as an outcome of SWOT analysis?

  A. Publish their internal positive factors.
  B. Emphasize their internal negative factors.
  C. Take advantage of external positive factors.
  D. Control external negative factors.
  C. Take advantage of external positive factors.

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  Explanation

  SWOT Analysis: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a strategic planning tool used to identify internal and external factors that can impact an organization. Internal Positive Factors: These are the strengths of the organization (Option A). Publishing them might not necessarily lead to a strategic action. Internal Negative Factors: These are weaknesses (Option B), and emphasizing them is usually an internal effort for improvement rather

  than an actionable outcome.

  External Positive Factors: These are opportunities (Option C). Taking advantage of these involves leveraging external conditions that can benefit the organization, leading to growth and competitive advantage. External Negative Factors:

  These are threats (Option D), and while controlling them is important, taking advantage of opportunities is a proactive strategy that can yield significant benefits. Strategic Management textbooks, SWOT Analysis tools and applications.

• Question 397:

  A company plans to benchmark its shipping reliability compared to other companies in the industry. Which measurement is most appropriate to benchmark in this case?

  A. Perfect order fulfillment
  B. Upside supply chain flexibility
  C. Order fulfillment cycle time
  D. Total inventory days of supply
  C. Order fulfillment cycle time

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  Explanation

• Question 398:

  Improving fill rate is an objective related to which of the following perspectives of a balanced scorecard?

  A. Financial
  B. Learning and growth
  C. Internal business processes
  D. Innovation
  C. Internal business processes

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  Explanation

  Improving fill rate is an objective related to the internal business processes perspective of a balanced scorecard. The fill rate measures the ability of a business to meet customer demand from available stock without backordering. Enhancing this metric involves optimizing inventory management, order fulfillment processes, and supply chain efficiency, which are all internal business process activities aimed at improving operational performance and customer satisfaction.

  Kaplan, R. S., and Norton,

  D. P. (1996). "The Balanced Scorecard." Supply Chain Management literature on performance metrics.

• Question 399:

  A company is introducing a new product that is difficult to produce. The company has created a vendor rating system to grade four potential suppliers on a scale of 1-10, with 10 exhibiting the best performance and 1 exhibiting the poorest performance.

  Which supplier would be the best choice for helping the company produce this part?

  

  A. Supplier A
  B. Supplier B
  C. Supplier C
  D. Supplier D
  D. Supplier D

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  Explanation

• Question 400:

  Which of the following circumstances best describes a roadblock to implementing customer relationship management (CRM)?

  A. Lack of strategic alignment and integration within the organization
  B. Limited defined industry standards
  C. Deterioration of customer service levels
  D. Increased access to information for supply chain partners
  A. Lack of strategic alignment and integration within the organization

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  Explanation

  Implementing Customer Relationship Management (CRM) systems can encounter several challenges, with strategic alignment and integration being the most significant: Strategic Alignment: Without aligning CRM objectives with the overall business strategy, the CRM implementation may not effectively address the company's goals and customer needs. Organizational Integration: CRM systems require seamless integration across various departments (sales, marketing, customer service). A lack of integration can lead to fragmented data, inefficiencies, and poor customer experiences. Cultural Resistance: Employees may resist changes due to a lack of understanding or fear of new technology, further hindering successful CRM implementation. These challenges highlight the necessity of a cohesive approach where strategic goals are clearly defined, and all organizational units are involved in the CRM process. "Challenges in Implementing CRM Systems" - Harvard Business Review "Strategic Alignment in CRM Implementations" - Journal of Business Research