APICS CSCP Online Practice Questions and Exam Preparation

APICS CSCP Online Questions & Answers

• Question 561:

  Which of the following tools would help a team of operators to prioritize causes of equipment failures?

  A. Brainsforming
  B. Control chart
  C. Pareto chart
  D. Process flowchart
  C. Pareto chart

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  Explanation

  A Pareto chart is a tool used to prioritize causes of equipment failures by identifying the most significant factors in a set of data. It is based on the Pareto principle, which states that roughly 80% of the problems are caused by 20% of the

  causes. By organizing data in descending order of frequency, a Pareto chart helps teams focus on the most critical issues first, thereby facilitating effective problem-solving and resource allocation.

  APICS Dictionary, 16th edition.

  American Society for Quality (ASQ) resources on Pareto charts.

• Question 562:

  A company that manufactures complex mechanical assemblies to customer order and ships them directly to the customer is implementing manufacturing cells. The benefit most likely to result from this effort is a reduction in the:

  A. number of component shortages.
  B. production planning horizon.
  C. time to fill customer orders.
  D. response time to a request for quote.
  C. time to fill customer orders.

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  Explanation

  Implementing manufacturing cells in a company that manufactures complex mechanical assemblies to customer order is likely to result in several operational efficiencies, the most significant being the reduction in the time to fill customer orders. This happens through: Reduction in Lead Times: Manufacturing cells organize workstations and equipment based on the sequence of operations required for production, minimizing movement and handling time. Improved Workflow: By grouping machines and processes, the workflow becomes more streamlined, reducing delays between steps in the production process. Enhanced Flexibility: Manufacturing cells can quickly adapt to changes in production requirements, improving responsiveness to customer orders. Decreased Work in Progress: With more efficient production flows, there is less work-in-progress (WIP), which translates to faster completion and shipment of finished products.

  "Lean Thinking: Banish Waste and Create Wealth in Your Corporation" by James P. Womack and Daniel T. Jones "The Cellular Manufacturing Advantage" by John Black

• Question 563:

  Sourcing via an internet-based trading exchange would be most appropriate for which of the following types of raw materials?

  A. Expensive material that is critical to the finished product
  B. Inexpensive material for which there are several substitutes
  C. Expensive material for which there are many sources
  D. Inexpensive material that is critical to the finished product
  B. Inexpensive material for which there are several substitutes

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  Explanation

  According to the APICS CSCP - Supply Chain Management Certification, an internet-based trading exchange is a type of e-sourcing platform that connects buyers and sellers of goods and services online, allowing them to conduct transactions, compare prices, and access market information. Sourcing via an internet-based trading exchange would be most appropriate for inexpensive material for which there are several substitutes, as this type of material has low strategic importance and high supply availability, and can benefit from the lower transaction costs, increased competition, and reduced lead times offered by the online platform.

• Question 564:

  Which of the following product records is internationally recognized for providing detailed categorization and descriptions?

  A. Stock keeping unit (SKU)
  B. Electronic product code (EPC)
  C. Harmonized system classification code
  D. Universal product code (UPC)
  C. Harmonized system classification code

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  Explanation

  The Harmonized System (HS) classification code is an internationally recognized system for classifying goods. It provides detailed categorization and descriptions of products, which is essential for international trade, customs procedures, and regulatory compliance. The HS code ensures that products are uniformly classified across different countries, facilitating smooth trade operations, accurate tariff applications, and consistent data reporting.

  "Harmonized Commodity Description and Coding System" by the World Customs Organization (WCO) APICS Dictionary, 16th Edition

• Question 565:

  A company manufactures special products for select customers. When demand for these products drops, the manufacturer can switch the production line to a commodity-type product that can be sold on the open market at reduced terms to generate cash. The company is executing a corporate strategy that is based on:

  A. customer focus and alignment.
  B. forecast accuracy.
  C. multiple downstream channels.
  D. multiple upstream supply chains.
  C. multiple downstream channels.

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  Explanation

  The company's strategy of switching production lines based on demand indicates a flexible approach to market conditions. Here's the explanation:

  Special Products for Select Customers: Initially, the company focuses on manufacturing niche products for specific customers, indicating a customer- focused approach. Switching to Commodity Products: When demand drops, the company

  shifts to producing commodity products that can be sold on the open market. This ensures continuous production and cash flow.

  Multiple Downstream Channels:

  Strategic Flexibility: This strategy leverages multiple downstream channels to optimize resource utilization, manage risks, and ensure financial stability.

  Porter, M.

  E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors.

  Hill, T. (2000). Manufacturing Strategy: Text and Cases. Palgrave Macmillan.

• Question 566:

  A master scheduler receives a new order with a due date inside the demand time fence (DTF). The best response is to:

  A. accept the order and schedule.
  B. reject the order and inform sales.
  C. identify the impact on current orders and escalate.
  D. accept the order but change the due date.
  C. identify the impact on current orders and escalate.

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  Explanation

  Demand Time Fence (DTF): This is a period within which no changes are typically made to the master schedule because it could disrupt production. New Order within DTF: Receiving a new order within this time frame poses a risk to the

  existing schedule.

  Impact Assessment: The best practice is to assess how the new order will affect current orders and operations.

  Escalation: If the impact is significant, it should be escalated to higher management for a decision. Simply accepting or rejecting the order (Options A and B) without analysis could lead to service issues or missed opportunities. Adjusting Due

  Dates: Accepting the order but changing the due date (Option D) may not meet customer needs and might not always be feasible.

  Master Scheduling and Planning, Demand Management guidelines.

• Question 567:

  A company continues to experience delayed and interrupted shipments from all suppliers as they do not have the necessary capability. Which supply chain risk mitigation actions can most directly address this issue?

  A. Introduce multiple sourcing,
  B. Hire a third-party logistics (3PL) provider
  C. Increase on-site inventory.
  D. Increase business insurance
  A. Introduce multiple sourcing,

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  Explanation

• Question 568:

  Bullwhip effect is mainly caused by which of the following factors?

  A. Forecast accuracy and information sharing
  B. Strategic partnership and price fluctuation
  C. E-business and information sharing
  D. Forecast accuracy and price fluctuation
  C. E-business and information sharing

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  Explanation

• Question 569:

  A company making highly customized products is planning to standardize certain aspects of the product in order to improve the forecast accuracy and meet customer demand.

  Which of the following strategies can the company utilize?

  A. Postpone the manufacturing until sufficient orders arrive
  B. Restructure the product into modular assemblies
  C. Synchronize the product demand with manufacturing
  D. Outsource the product to lower cost suppliers
  B. Restructure the product into modular assemblies

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  Explanation

• Question 570:

  Implementation of supply chain applications based on which of the following technologies is most likely to have the lowest fixed costs?

  A. Best of breed packages
  B. One integrated package
  C. Service-oriented architecture
  D. Software-as-a-service
  D. Software-as-a-service

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  Explanation

  Implementation of supply chain applications based on Software-as-a-Service (SaaS) is most likely to have the lowest fixed costs because:

  No Infrastructure Investment: SaaS eliminates the need for significant upfront investment in hardware and infrastructure.

  Subscription Model: SaaS is typically offered on a subscription basis, spreading costs over time rather than requiring a large initial capital expenditure. Scalability: SaaS solutions can be easily scaled up or down based on demand, providing

  flexibility and cost efficiency.

  Maintenance and Updates: The service provider manages maintenance and updates, reducing the need for internal IT resources and associated costs. In contrast, best of breed packages (A), one integrated package (B), and service-oriented

  architecture (C) often require more substantial initial investments in technology and infrastructure.

  "Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl.

  APICS Dictionary, 16th edition.