APICS CSCP Online Practice Questions and Exam Preparation

APICS CSCP Online Questions & Answers

• Question 521:

  Which of the following costing approaches directly reflects logistics performance?

  A. Activity-based
  B. Total landed
  C. Standard
  D. Weighted average
  A. Activity-based

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  Explanation

  Activity-based costing (ABC) is a method that assigns costs to products and services based on the resources they consume. Here's why ABC directly reflects logistics performance:

  Cost Allocation: ABC assigns costs to specific logistics activities (e.g., warehousing, transportation, order processing) rather than spreading costs evenly across all products. Performance Measurement: By linking costs to specific activities,

  ABC provides insights into the efficiency and performance of each logistics function. Cost Drivers: Identifying cost drivers helps in understanding the factors that influence logistics costs, enabling better decision-making and process

  improvements.

  Detailed Analysis: ABC allows for a more granular analysis of logistics costs, highlighting areas where performance can be improved to reduce costs.

  Cooper, R., and Kaplan, R. S. (1991). The Design of Cost Management Systems.

  Prentice Hall.

  Drury,

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

• Question 522:

  The total cost of ownership (TCO) measurement includes:

  A. accounts payable.
  B. tangible and intangible costs.
  C. return on investment (ROI).
  D. net present value (NPV)
  B. tangible and intangible costs.

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  Explanation

• Question 523:

  Which of the following factors should be considered during the implementation phase of continuous improvement?

  A. Learning curve
  B. Root cause analysis
  C. Maintenance
  D. Bottlenecks
  A. Learning curve

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  Explanation

• Question 524:

  Which of the following processes would a company use to evaluate the risk profile for end- of-life planning for a product family?

  A. Distribution requirements planning
  B. Sales and operations planning
  C. Rough-cut capacity planning
  D. Production activity control
  B. Sales and operations planning

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  Explanation

  Sales and operations planning (SandOP) is a process used to align supply and demand by integrating financial and operational planning. For end-of-life planning of a product family, SandOP is crucial as it helps evaluate the risk profile by considering factors like declining demand, inventory levels, and production capacity. SandOP facilitates collaboration across various departments to ensure a smooth phase-out, minimizing excess inventory and mitigating risks associated with discontinuing products. "Sales and Operations Planning: The How-To Handbook" by Thomas

  F. Wallace and Robert A. Stahl "Sales and Operations Planning: Beyond the Basics" by J. Barry Miskell

• Question 525:

  A primary objective of a lean enterprise is to:

  A. analyze and focus the value stream along all functions to maximize value for the ultimate customer.
  B. employ people who have enhanced abilities to learn and adapt to the corporate culture.
  C. continuously improve processes and procedures to maintain a level production schedule.
  D. create value for its suppliers by incorporating lean manufacturing principles into a supplier certification process.
  A. analyze and focus the value stream along all functions to maximize value for the ultimate customer.

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  Explanation

  The primary objective of a lean enterprise is to analyze and focus on the value stream across all functions to maximize value for the ultimate customer. This involves identifying and eliminating waste (non-value-added activities) in processes

  to streamline operations and enhance efficiency. The focus is on creating value from the customer's perspective, ensuring that every step in the process contributes to this goal. Continuous improvement (Kaizen), employee development, and

  supplier collaboration are also essential elements of lean, but the overarching objective is maximizing customer value through value stream optimization.

  Womack, J. P., and Jones,

  D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation.

  Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. McGraw-Hill.

• Question 526:

  A company has applied lean thinking and tools to its internal operations over the last several years. The company is now concerned about its ability to recover from a supply disruption. Which of the following actions would be most appropriate for the company to take to increase its resiliency?

  A. Arrange for multiple sources for key components.
  B. Maintain 1 week's supply f safety stock for key components.
  C. Required the suppliers of key components to maintain safely stock
  D. Add capacity to enable quick recovery from a disruption
  A. Arrange for multiple sources for key components.

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  Explanation

  To increase resiliency and recover from supply disruptions, arranging for multiple sources for key components is the most appropriate action. Having multiple suppliers reduces dependency on a single source, thereby mitigating the risk of supply chain interruptions due to issues such as natural disasters, political instability, or other unforeseen events affecting one supplier. Maintaining safety stock (B) and requiring suppliers to maintain safety stock (C) provide short-term buffers but do not address long-term resilience. Adding capacity (D) can help in recovery but is often more costly and complex than diversifying the supplier base.

  Chopra, S., and Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson. Sheffi, Y. (2005). The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage. MIT Press.

• Question 527:

  Which of the following measures of a supply chain performance is most desirable from a stockholder perspective?

  A. Diversity of sales channels
  B. Lean manufacturing performance
  C. Time to market of new products
  D. Velocity and return on assets (ROA)
  D. Velocity and return on assets (ROA)

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  Explanation

  From a stockholder perspective, the most desirable measures of supply chain performance are those that directly impact the financial health and profitability of the company. Velocity refers to the speed at which inventory moves through the supply chain, which affects cash flow and efficiency. Return on assets (ROA) measures how effectively a company is using its assets to generate earnings. High velocity and strong ROA indicate that the company is efficiently managing its resources and generating profitable returns, which are key metrics for stockholders.

  Coyle, J.J., Langley, C.J., Novack, R.A., and Gibson, B.J. (2016). Supply Chain Management: A Logistics Perspective. Cengage Learning. Chopra, S., and Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

• Question 528:

  Distribution from which of the following types of sites enables goods to enter a country, undergo further modification, and then be exported without paying customs duties?

  A. Public warehouse
  B. Value-added territory
  C. Free trade zone
  D. Customs clearing house
  C. Free trade zone

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  Explanation

  Distribution from a free trade zone (FTZ) enables goods to enter a country, undergo further modification, and then be exported without paying customs duties. FTZs are designated areas where businesses can conduct manufacturing,

  assembly, and other processes on imported goods without being subject to customs duties until the goods leave the zone for domestic consumption. This allows companies to add value to products and re-export them cost-effectively.

  Public warehouse is a facility for storing goods but does not offer customs duty advantages.

  Value-added territory is not a standard term in international trade. Customs clearing house assists with customs paperwork but does not provide duty-free processing.

  U.S. Customs and Border Protection. (2020). "What are the Benefits of a Foreign- Trade Zone?" World Bank. (2011). "Customs Modernization Handbook."

• Question 529:

  Which of the following strategies is used primarily for demand planning?

  A. Build-to-order scheduling
  B. Push-pull replenishment
  C. Collaborative planning, forecasting, and replenishment
  D. Vendor-managed inventory
  C. Collaborative planning, forecasting, and replenishment

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  Explanation

  Collaborative Planning, Forecasting, and Replenishment (CPFR) is a strategy used primarily for demand planning by improving coordination and collaboration between supply chain partners. Here's how it works:

  Collaboration: CPFR involves sharing information and plans between retailers, distributors, and manufacturers to create a unified forecast and replenishment plan. Joint Forecasting: Partners collaboratively develop demand forecasts based

  on shared data, reducing discrepancies and improving accuracy. Replenishment Planning: Using the agreed-upon forecasts, the partners jointly plan inventory replenishment to ensure optimal stock levels and reduce stockouts or excess

  inventory.

  Benefits: CPFR leads to improved demand visibility, better inventory management, and enhanced supply chain efficiency.

  This approach fosters a cooperative relationship among supply chain partners, aligning their efforts towards meeting customer demand more effectively.

  Barratt, M., and Oliveira, A. (2001). "Exploring the Experiences of Collaborative Planning Initiatives." International Journal of Physical Distribution and Logistics Management.

  Seifert,

  D. (2003). Collaborative Planning, Forecasting, and Replenishment: How to Create a Supply Chain Advantage. AMACOM.

• Question 530:

  In order to achieve economies of scale, a manufacturer is interested in producing large quantities. Which of the following functions of inventory will assist the manufacturer in achieving this goal?

  A. Geographical specialization
  B. Decoupling
  C. Balancing supply and demand
  D. Buffering uncertainty
  C. Balancing supply and demand

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  Explanation

  To achieve economies of scale, manufacturers need to produce large quantities efficiently. Inventory functions that balance supply and demand help manage this process by ensuring that production output aligns with market needs. This function allows manufacturers to plan production schedules that maximize capacity utilization while minimizing stockouts and overproduction. Geographical specialization (A) relates to the allocation of production across different locations, decoupling (B) refers to separating production processes to maintain flow, and buffering uncertainty (D) addresses variability in supply and demand, but balancing supply and demand is the key to achieving economies of scale through synchronized production and consumption rates.

  Chopra, S., and Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson. Stevenson, W. J. (2018). Operations Management. McGraw-Hill Education.