APICS CSCP Online Practice Questions and Exam Preparation

APICS CSCP Online Questions & Answers

• Question 571:

  Which of the following types of information would be an appropriate basis for a qualitative forecast?

  A. Leading indicators
  B. Market research data
  C. Order history
  D. Shipment history
  B. Market research data

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  Explanation

  Qualitative forecasting techniques are often used when there is little to no historical data available, or when the situation involves a lot of uncertainty or rapid change. These methods rely on expert judgment, intuition, and qualitative data.

  Here's why market research data is appropriate for qualitative forecasting:

  Expert Insights: Market research provides insights from industry experts, customer feedback, and market trends, which can be critical in understanding future demand. Consumer Behavior: This data helps in predicting how consumer pand

  behaviors might change, which is especially useful for new products or entering new markets.

  Competitive Analysis: Understanding competitor strategies and market conditions helps in making informed forecasts.

  Qualitative Nature: Unlike order history or shipment history, which are quantitative, market research data involves qualitative analysis of market conditions and customer needs. Therefore, market research data is a suitable basis for qualitative

  forecasting as it offers comprehensive insights into market dynamics and future trends.

  Armstrong, J. S. (2001). Principles of Forecasting: A Handbook for Researchers and Practitioners. Springer.

  Malhotra, N. K. (2010). Marketing Research: An Applied Orientation. Pearson.

• Question 572:

  A key concept of lean methodology is to replace forecast driven demand with:

  A. enterprise resource planning (ERP).
  B. distribution requirements planning (DRP).
  C. daily lot sizing of supplier orders.
  D. pull signals from customers.
  D. pull signals from customers.

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  Explanation

• Question 573:

  A company develops annual forecasts for key products and enters into annual contracts with key suppliers based on the forecasts. Which of the following benefits would the company most likely receive from this approach?

  A. Shorter delivery lead times
  B. Lower prices
  C. Improved service
  D. Higher-quality products
  B. Lower prices

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  Explanation

  Entering into annual contracts with key suppliers based on forecasts typically allows a company to negotiate better pricing due to the guaranteed volume over a set period. Suppliers are more likely to offer discounts and favorable terms when they have a predictable and steady demand. This approach can also lead to cost savings from bulk purchasing and long-term relationships, contributing to lower procurement costs. While shorter delivery lead times, improved service, and higher-quality products are potential benefits, the most direct and likely benefit from this approach is lower prices.

  Monczka, R. M., Handfield, R. B., Giunipero, L. C., and Patterson, J. L. (2020). Purchasing and Supply Chain Management. Cengage Learning. Burt,

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

• Question 574:

  What is the cash-to-cash cycle time for a company with the following data?

  Days payable 30.97 Days inventory 17.11 Days receivable 3.33

  A. -10.53 days
  B. 17.19 days
  C. 44.75 days
  D. 51.41 days
  C. 44.75 days

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  Explanation

• Question 575:

  To progress to an advanced synchronized collaborative relationship supply chain partners should:

  A. rely on two-way information flow between partners and coordinated planning processes
  B. rely on each other's capabilities and commit long-term to the relationship
  C. share information about commitments, forecasts inventory, purchase orders and delivery status
  D. develop and share critical business process information jointly
  C. share information about commitments, forecasts inventory, purchase orders and delivery status

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  Explanation

• Question 576:

  Which of the following manufacturing strategies would run the greatest risk of increasing obsolete inventory costs?

  A. Make-to-stock
  B. Assemble-to-order
  C. Make-to-order
  D. Engineer-to-order
  A. Make-to-stock

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  Explanation

  Make-to-stock (MTS) is a manufacturing strategy where products are produced based on anticipated customer demand and then held in inventory until sold. The primary risk associated with MTS is the possibility of overestimating demand,

  which can lead to excess inventory. If the forecasted demand does not materialize, the unsold inventory may become obsolete, leading to increased costs associated with storage, depreciation, and potential disposal. In contrast, the other

  strategies--assemble-to-order (ATO), make-to-order (MTO), and engineer-to-order (ETO)--are more demand-driven, producing goods in response to actual customer orders, thus reducing the risk of holding obsolete inventory.

  Chopra, S., and Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

  Stevenson, W. J. (2021). Operations Management. McGraw-Hill Education.

• Question 577:

  Sell-side e-commerce must include:

  A. automated returns processing.
  B. advance ship notice (ASN).
  C. electronic data interchange (EDI).
  D. automated order entry and tracking.
  D. automated order entry and tracking.

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  Explanation

  Sell-side e-commerce refers to online platforms where businesses sell products directly to consumers. Automated order entry and tracking are essential components of this process as they streamline the purchasing experience, ensuring orders are accurately captured and customers can monitor the status of their purchases. While automated returns processing, advance ship notice (ASN), and electronic data interchange (EDI) are important, they are not as universally mandatory for the basic functionality of sell-side e-commerce as automated order entry and tracking.

  Laudon, K. C., and Traver,

  C.

  G. (2021). E-commerce 2021: Business, Technology, Society. https://www.supplychaindive.com

• Question 578:

  Risk pooling is best applied when there:

  A. is high variability in product demand across locations.
  B. is high variability in product attributes.
  C. are frequent fluctuations in price.
  D. are numerous competitors in the market.
  A. is high variability in product demand across locations.

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  Explanation

• Question 579:

  A new supplier in a different country will offer substantial savings on existing components. Which part of the organization should be consulted to ensure this is a good strategy for the firm?

  A. Logistics
  B. Human resources
  C. Marketing
  D. Information technology
  A. Logistics

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  Explanation

  When considering a new supplier in a different country that offers substantial savings, it is crucial to consult the logistics department. The logistics team will evaluate the feasibility of international transportation, potential delays, customs

  requirements, and overall supply chain reliability. They can assess whether the cost savings are justified when considering the total landed cost, including transportation, tariffs, and potential risks associated with international sourcing.

  Human resources (B) is less relevant in evaluating supplier selection based on cost savings and logistics.

  Marketing (C) would be involved if the decision impacted product offerings or customer perceptions.

  Information technology (D) might be consulted for integration but is not the primary concern for logistics and cost savings evaluation.

  Chopra, S., and Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

  Coyle, J. J., Langley,

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

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

• Question 580:

  Which of the following technologies best enables pulling products through the supply chain?

  A. Automatic identification system (AIS)
  B. Point-of-sale (POS) system
  C. Customer relationship management (CRM)
  D. Supply chain event management (SCEM)
  B. Point-of-sale (POS) system

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  Explanation

  According to the APICS CSCP - Supply Chain Management Certification, a point-of-sale (POS) system is a technology that captures sales data at the time and place of purchase by scanning bar codes or RFID tags on products or using other methods of identification. A POS system can transmit sales data in real time to other systems in the supply chain, such as inventory management, demand planning, replenishment, or distribution. A POS system enables pulling products through the supply chain, as it triggers orders based on actual customer demand rather than forecasts or schedules.