Certified Supply Chain Professional CSCP Updated Questions

test2023-01-07T03:11:48+00:00

The Certified Supply Chain Professional (CSCP) exam is a comprehensive assessment of supply chain management knowledge and skills. To prepare for the exam, it is recommended that you first review the exam content outline, which outlines the topics covered on the exam. You can find the exam content outline on the APICS website.

Once you have reviewed the exam content outline, you can begin studying for the exam using a variety of resources, such as textbooks, online courses, and practice exams. It is also helpful to have practical experience in supply chain management, as the CSCP exam tests your ability to apply concepts to real-world situations.

Here are some specific tips for preparing for the CSCP exam:

Enroll in a review course or study group: APICS offers CSCP review courses and study groups to help you prepare for the exam. These resources provide structured study materials and guidance from experienced instructors.
Use practice exams: Practice exams can help you get a sense of what to expect on the actual exam and identify any areas where you need additional study.
Review the exam content outline: Make sure you are familiar with all of the topics covered on the exam, and spend extra time studying areas where you are weaker.
Use multiple study resources: Don’t rely on just one resource to prepare for the exam. Use a combination of textbooks, online courses, and practice exams to get a well-rounded understanding of the material.
Get practical experience: The CSCP exam tests your ability to apply supply chain management concepts to real-world situations. Make sure you have some practical experience in supply chain management to help you better understand the material.

I hope these tips are helpful! Best of luck with your studies.

Page 1 of 13

1. A role-based entry into a company’s system that aggregates all required sources of information into a single environment is known as:

a portal.

a hub.

a local area network (LAN).

an extranet.

2. Which of the following levels in a supply chain network represents the most upstream external activity?

Supplier to contractor

Manufacturing to supplier

Customer to distribution

Customer to contractor

3. Which of the following variables is the most appropriate customer-facing goal used to determine the target inventory level?

Inventory turns

Level of service

Total delivery cost

Delivery lead time

4. Which of the following advantages of radio frequency identification (RFID) is the main benefit for material handling?

Improved speed and flexibility

Long distance readability

Ability to withstand harsh environments

Detection of multiple tags

5. Implementing a balanced scorecard for a supply chain typically would include which of the following actions?

Responding to resistance

Calculating partner performance

Communicating the strategic purpose to partner organizations

Aligning partner performance based on channel-master requirements

6. The most important challenge to consider when sourcing globally is:

the identification of sources capable of producing the materials.

the availability of low-cost labor and energy.

complying with specific import/export issues.

balancing the difference between piece price and total cost.

7. After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?

Implement a higher-speed data communications network.

Change procedures so data is communicated more frequently.

Identify the root causes for the delays.

Map and analyze the value stream.

8. What is the primary role of marketing in supporting supply chain management?

Selecting favored supplier partners

Developing efficient customer channels

Focusing on short-term forecasting accuracy

Working with research and development on slow-moving products

9. Which of the following measures best describes fill rate?

Ratio of available inventory to cost of goods sold (COGS)

Ratio of cost of goods sold to available inventory

Percentage of demand satisfied by available inventory

Percentage of closed orders to total orders

10. Shortly after implementation of a supplier quality management program, the customer's and supplier's measurements of an attribute differ.

The most appropriate course of action is to:

use the customer's data for the attribute.

stop measuring performance for the attribute.

redefine performance criteria.

investigate data collection methods.

Page 2 of 13

11. Which of the following characteristics typically is required for a collaborative strategic relationship?

High levels of trust

History of successful collaboration

Awareness of cultural differences

Formal contracts defining the relationship

12. In distribution requirements planning (DRP), projected on-hand inventory is equal to the prior week's on-hand inventory minus the current week's gross requirements plus:

planned production.

planned orders.

safety stock.

scheduled receipts.

13. What are the steps in the supplier relationship process?

Measure, fulfill, document, model

Source, document, manage

Measure, procure, fulfill, model

Source, procure, fulfill, manage

14. Which of the following statements defines the function of the bill of lading (B/L)?

A document that itemizes freight charges and receipt of freight services

A legally binding contract between the shipper and the buyer

A document that replaces the terms of agreement on the purchase order so that the driver can take possession of the freight

A legally binding document providing the driver and the carrier all the details needed to process the freight shipment

15. A group of trading partners that produce and distributes supplies to commercial and industrial customers has decided to pursue competitive advantage by being responsive to customers’ needs.

The most appropriate positioning of safety stock to support this initiative would be at:

a central warehouse for each market segment.

the distribution centers (DCs) closest to the customers.

each node in the distribution channel.

each production facility.

16. Which of the following organizational design choices is an example of vertical integration?

Contracting with a third-party logistics provider

Producing components used internally

Externally staffing a customer service center

Awarding a one-time trade show contract

17. A company that sells direct to industrial and commercial businesses has become successful by being responsive to the needs of its customers. The company currently produces in each country all of the products it sells in that country. Several countries in which the company operates have negotiated an agreement to establish a trading bloc.

Which of the following actions by the company would be most appropriate if the agreement is implemented?

Consolidate production outside the trading bloc to reduce total costs.

Consolidate production within the trading bloc to reduce tariffs paid.

Outsource the production of products with low sales volumes to reallocate capacity.

Reassign products so that each is produced in a single facility within the trading bloc to get economies of scale.

18. Which of the following measures effectively evaluates overall resources in a distribution warehouse?

Throughput

Cube utilization

Filled pallet positions

Labor efficiency

19. Which of the following practices allows each process to operate at maximum efficiency rather than having the speed of the entire process constrained by the slowest operation?

Theory of constrains (TOC)

Supply/demand balancing

Decoupling

Pull production

20. In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing most likely will be:

company policy

viewed as a way to reduce costs

considered necessary

considered risky

Page 3 of 13

21. Managing supply chain risks includes which of the following activities?

Developing alternatives to key suppliers

Setting aside funds for disruption-recovery efforts

Charging each supply chain partner a portion of risk cost

Creating extra inventory to cover disruptions in the supply chain

22. A company has prioritized customers A, B, and C, filling orders in that sequence.

What are the impacts to customer service levels for customers B and C?

100% service levels for B and C

Customer B has higher service level

Customer C has higher service level

Customer B and C have same service level

23. The first information necessary in order to effectively improve product design should come from which of the following supply chain members?

Supplier

Distributor

Manufacturer

Customer

24. Requirements for successful application of a demand-driven supply network include:

demand synchronization between stakeholders.

automatic communications of data from point-of-sale (POS) terminals.

safety stock determined jointly by suppliers and customers.

supply provided by a single source.

25. Bar codes and radio frequency identification systems are key technologies in supply chain systems because they perform which of the following functions?

Tracking truck locations on cross-country deliveries

Facilitating timely and accurate data acquisition

Providing paperless invoicing of goods

Producing schedule broadcasts for suppliers

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

Financial

Learning and growth

Internal business processes

Innovation

27. The process of continuous improvement can be defined best as a continuous effort to:

concurrently improve performance on several measures through incremental improvements.

eliminate root causes of waste through incremental improvements.

eliminate root causes of problems through radical changes.

reduce direct and indirect costs through incremental changes.

28. Which of the following statements regarding intellectual property protection is correct?

There is minimal concern about protecting a firm's intellectual property when sourcing abroad.

The suppliers and countries involved need to have legal constraints in place to protect intellectual property.

Products or components with high intellectual property content should be sourced globally.

The legal systems in most low-cost countries provide adequate trade secret protection.

29. Customer demand is 120 units per week. The company works on a 9-hour shift per day, 5-day per week basis. Each shift has a ½-hour lunch break and two 15-minute coffee breaks. The cycle time is 12 minutes.

To meet demand, production must occur at the rate of one unit every:

12 minutes.

20 minutes.

22.5 minutes.

28 minutes.

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

Make-to-stock

Assemble-to-order

Make-to-order

Engineer-to-order

Page 4 of 13

31. The primary purpose of implementing supplier relationship management (SRM) is to:

minimize legal contracts.

Identity strategic sources of supply.

enable sole or single sourcing.

streamline the procurement process.

32. A manufacturer and the distributors of its products have decided to focus on price and product availability as strategic priorities.

Which of the following values would be the most appropriate measure of customer service?

Manufacturer's volume flexibility

Order-fulfillment lead times

Distributors' order-fill rates

Supply chain inventory days of supply

33. Incorporating supplier input into product and process design helps to:

maintain quality.

stabilize product costs.

reduce time to market.

save costs to the buyer.

34. Which of the following tools a appropriate to overall organizational performance?

Supplier scorecard

Benchmarking

Balanced scorecard

Quoted-benefit analysis

35. Which of the following outcomes is a benefit typically expected of customer relationship management (CRM)?

Reducing the size of the sales force by automating activities

Gaining a better understanding of customer requirements

Implementing automated inter-organizational processes

Focusing sales efforts on the most profitable customers

36. Which of the following marketing strategies emphasizes offering services at a lower price than rival services with comparable features?

Cost leadership

Service differentiation

Customer focus

Market responsiveness

37. When of the following outcomes is achieved through the reduction in the number of a firm's supplier?

Supplier operational integration

Supply localization

Volume consolidation

Value management

38. A company most likely would consider moving a portion of its manufacturing to a second location to:

improve competitive advantage through cost control.

avoid manufacturing downtime due to material shortages.

maximize security for customer shipments.

minimize the impact of natural disasters.

39. Which of the following actions would be most appropriate for an enterprise that has successfully integrated internal supply chain management systems and functions?

Focusing on reducing setup times

Implementing a firewall to limit access to supply and demand data

Working with key suppliers to reduce costs and lead times

Working with trading partners to reduce channel redundancies

40. The purpose of Incoterms® is to establish common:

software system terminology between supply chain partners.

contracts for trade within the supply chain.

company communication channels within the supply chain.

quality measures for use in the supply chain.

Page 5 of 13

41. Compared to a blanket purchase order, a supplier alliance agreement is best differentiated by:

efficient material replenishment processes.

clearly identified roles for the buyer and seller.

a shared vision of added value.

a sole-source agreement.

42. A firm supplies a single line of products to consumers using retail stores and on-line sales, distributors, and wholesalers. Currently the firm has common pricing and response times for sales in each sales channel.

Which of the following tools is most appropriate to employ to improve profitability?

Customer segmentation

Customer-facing ordering systems

Customer relationship management (CRM)

Supply Chain Operations Reference (SCOR®)

43. Which of the following actions is most likely to improve the flow of funds between a group of supply chain partners?

Increasing the level of information sharing and collaboration

Negotiating a single set of terms for the trading partners

Increasing a partner’s cash-to-cash cycle time

Selecting a single currency for all group transactions

44. Which of the following consequences are primary objectives in network design?

Improve service level and increase revenue.

Improve service level and reduce inventory cost.

Increase market share and revenue.

Reduce inventory cost and increase market share.

45. When deciding whether to make a component internally or to outsource production, a company must:

evaluate the landed cost of the component.

select the lowest-price source.

outsource only low-value components.

select the source with the shortest lead time.

46. Which of the following objectives is a major principle of theory of constraints (TOC) accounting when applied to a supply chain?

Total inventory reduction

Maximize process utilization

Maximize revenue generation

Product design simplification

47. Products that share characteristics of predictable demand and low profit margin will have competition based on which of the following?

Fastest to market

Lowest landed cost

Product improvements

Supply flexibility

48. In a supply chain network, the distribution center (DC) provides which of the following functions for the factory?

Obsolete inventory location

Substitute producer

Buffer from customer demand

Source of supply

49. A company planning to build collaborative relationships with trading partners should first:

implement technology for information sharing.

document transaction rules and procedures.

organize cross-enterprise teams.

ensure commitment from top management.

50. Increased collaboration and access to channel partner competencies are achieved by sharing:

transportation and incentive plans.

cost sharing and partner agreements

inventory and transactions

data and business intelligence.

Page 6 of 13

51. Which of the following relationship activities is most impacted by a lack of trading partner trust?

Collaboration

Coordination

Cooperation

Communication

52. Which of the following design approaches is best suited for a manufacturer that wants to offer a variety of finished goods?

Specialization

Simplification

Modularization

Simultaneous engineering

53. Kaizen is a process used in supply chain networks primarily to achieve:

long-term stability of suppliers.

radical changes in interorganizational processes.

higher profits for the dominant member.

improved performance.

54. The most likely benefit of implementing a collaborative transportation management system is:

lower distribution center operating costs.

fewer transportation planners.

less variability in picking and packing time.

less variability in transportation costs.

55. A company that produces a set of standard products, which are sold through multiple channels, would segment its sales by:

brand.

product.

customer.

region.

56. Which of the following types of risk typically would be most difficult to plan for and mitigate?

Currency fluctuation

Forecast error

Geopolitical

Supplier performance

57. A company has determined that products sold to a large, strategic customer have unacceptable low variable margins.

Which of the following strategies should the company use to improve profitability of sales to that customer?

End the relationship and seek out a profitable customer to replace it.

Implement a balanced scorecard.

Evaluate the products' value to the customer and adjust prices accordingly.

Move the production of the products to a low labor cost location.

58. When an importer and manufacturer are operating in a free trade zone, payment of a customs duty is triggered when products are:

returned.

assembled.

stored.

distributed.

59. A company has significant cash invested in its finished goods inventories.

What action can this company take to significantly reduce its inventory investment while maintaining its customer service levels?

Begin production after receipt of customer orders

Move the customer decoupling point from finished goods to components

Increase component assembly lead times

Plan key component material with preferred suppliers

60. Which of the following areas of concern is an important strategic inventory management decision?

How much inventory to order for each replenishment cycle

Who is responsible for inventory record accuracy

Where in the supply chain inventory should be kept

When requests for additional inventory should be created for supply chain partners

Page 7 of 13

61. A manufacturer of consumer packaged goods with a single plant and nine regional distribution centers is considering reducing the number of distribution centers in its system.

Reducing the number of distribution centers most likely will reduce fixed warehousing and the cost of:

storing cycle inventory in the distribution centers.

storing finished-goods inventory at the manufacturing plants.

transportation from the distribution centers to the customer.

transportation from the plant to the distribution centers.

62. Which of the following descriptions represents cash-to-cash conversion?

The conversion time from material acquisition to sales revenue

The conversion time from sales order lo receipt of payment

The currency conversion rate when buying and selling goods

The measure of an organization's effective use of inventory

63. A company is formally adhering to the principles of the UN Global Compact. After a review of their supply chain, they have found that a key supplier is in violation of the compact.

The best action for the company to do first is:

do nothing. The company is not responsible for compliance of suppliers.

replace the supplier as soon as possible with a compliant supplier.

notify the supplier of non-compliance.

require the supplier to become compliant.

64. The most effective means to measure customer loyalty would use which of the following approaches?

Determine the ability to satisfy a customer’s delivery date

Conduct customer survey for direct feedback

Analyzing customer repurchase patterns

Monitor rate of call center activity

65. 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?

Arrange for multiple sources for key components.

Maintain 1 week’s supply f safety stock for key components.

Required the suppliers of key components to maintain safely stock

Add capacity to enable quick recovery from a disruption

66. A key assumption of the economic order quantity (EOQ) is that:

future demand cannot be projected.

the rate of demand is continuous and constant.

reorder frequency is fixed.

as the lot size decreases, the setup cost per unit decreases.

67. Which of the following sustainability tools is most appropriate for managing environmental compliance with regulatory requirements?

ISO 14000

Global Reporting Initiative (GRI)

ISO 26000

United Nations Global Compact

68. The United Nations Global Compact uses 10 guiding principles to:

reduce uncertainty for multinational firms regarding legal, import/export, labor, and environmental standards across countries.

set minimum levels of compliance across a broad range of transactional areas for businesses operating in multiple geographic regions.

align the needs of businesses to increase profitability and the needs of individual countries to ensure their specific legal requirements are met.

help ensure that markets, commerce, technology, and finance promote advancement of economies and societies everywhere.

69. Which of the following distribution strategies is characterized by items flowing through a warehouse in an almost continuous manner?

Cross-docking

Direct shipment

Multilevel

One-piece flow

70. The primary business advantage of developing an international supply chain is to:

reduce transportation costs.

decrease inventory costs.

limit the number of component suppliers.

realize economies of scale in production and distribution.

Page 8 of 13

71. Which of the following characteristics are reflective of a resilient supply chain?

Proactive in anticipating events and fast recovery from undesirable events

Reactive in anticipating events and fast recovery from undesirable events

Proactive in anticipating events and slow recovery from undesirable events

Reactive in anticipating events and slow recovery from undesirable events

72. The most cost-effective way to increase the velocity of goods in a supply chain is to:

improve the way the supply chain handles goods that are not in motion.

switch to a faster mode of transportation.

establish warehouses near major retail outlets.

subcontract with multiple third-party logistics (3PL) providers who are located at strategic locations.

73. CORRECT TEXT

A company has decided to source, manufacture, and distribute its products from its own facilities located throughout the world. This strategy is best described as:

horizontal integration.

a universal distribution system.

vertical integration.

an outsourced supply chain.

74. Which of the following forecasting methods relies on the opinions of a panel of experts?

Delphi technique

Survey method

Causal method

Time series analysis

75. Which of the following activities typically would be an appropriate application of the ISO 31000 Risk Management Principles and Guidelines?

Calculating a risk index for each facility

Establishing external risk communications processes

Projecting the ability of a facility to recover from an event

Preparing for risk management accreditation

76. The customer who provides point-of-sale data remains the sole decision-maker regarding order quantities when what type of inventory strategy is used?

Continuous replenishment

Advanced continuous replenishment

Vendor-managed replenishment

Quick response

77. Benchmarking a firm's performance against industry competitors is most valuable because it can reveal:

a competitor's manufacturing processes.

a firm's leadership ranking relative to industry peers.

which processes require improvement.

that no further improvement is possible.

78. A manufacturer has direct relationships with its tier 1 suppliers.

Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?

Provides smaller lot sizes

Provides components with short lead times

Provides Just in Time deliveries

Provides information about impending shifts in the economy

79. The primary use of the ISO 14001 standard is to allow firms to:

improve the occupational health and safety of employees within the firm's buildings and factories.

demonstrate compliance to allow for faster and easier movement of goods across country borders.

reduce costs by becoming eligible for tax advantages offered for meeting climate goals.

provide guidance in monitoring the impact of activities throughout the life cycle.

80. Effective data acquisition for supply chain management requires:

establishment of market standards for forecasting accuracy.

establishment of a six-segment matrix classifying function and innovation.

identification of products that have market predictability.

identification of the proper supply chain profile for the product type.

Page 9 of 13

81. Supply chains delivering products or services are most able to respond quickly to changing market requirements when:

products have been standardized.

products have a modular design.

production processes have been standardized.

production processes have been simplified.

82. The process of gathering data about what customers need and ensuring that desired features are included in the design and initial planning phase of a new product or service is known as:

a quick response program.

quality function deployment.

total quality management.

early supplier involvement.

83. A company that sells 60 units of product in a given year and has an average quantity on hand of 10 units. There are 360 selling days and 261 production days in the year.

The company has on hand how many days of product inventory?

0.16

0.23

84. When determining lot sizes, consideration should be given to balancing which of the following costs?

Quality costs and product costs

Cost of goods sold (COGS) and indirect labor costs

Unit sales price and unit cost

Ordering costs and carrying costs

85. The purpose of a supply chain metrics dashboard is to:

monitor sales performance against plan

measure demand management performance

provide data on personnel performance

monitor supply network performance

86. In an advanced planning and scheduling (APS) system, which of the following processes feeds the master schedule?

Purchasing planning

Demand planning

Distribution planning

Fulfillment planning

87. Which of the following objectives is the primary driver in the design and implementation of lean process management?

Reducing the level of inventory

Decreasing the cash-to-cash cycle

Integrating processes between departments

Satisfying customer requirements

88. When evaluating several possible supply chain options, a firm considering the minimal total cost should:

ensure that the inventory levels are as low as possible to minimize holding costs while still providing adequate customer service.

account for the combined costs of holding buffer inventory and incurring inventory shortages.

consider the costs of acquiring, holding, and transporting inventory and of servicing customers.

place buffer inventory in the lowest cost locations that meet lead time and service level requirements from customers.

89. A company that has documented the current state of return processes most appropriately would next:

benchmark against the Supply Chain Operations Reference (SCOR) modal

evaluate whether the enterprise resources planning (ERP) system can handle the new state.

assign a project leader for the change effort

adopt six sigma to ensure defect-free implementation

90. The most appropriate reason for a business to comply with the United Nations (UN) Global Compact practices typically would be to:

enhance the competitive advantage.

gain access to proven management tools.

reduce the threat of organized labor.

reduce the cost of operating in multiple countries.

Page 10 of 13

91. A company plans to implement a new software application for inventory optimization.

Which of the following actions will most likely reduce the implementation time?

Purchase the new software and host it on secure cloud servers

Develop the new software in-house and purchase additional hardware

Purchase the new software and customize it

Integrate the new software with supply chain partners

92. A company recently implemented a new supplier rating system. Data was collected from the enterprise resources planning system about each vendor's rating for cost, quality, and delivery over 12 months. A cutoff point was established for poor performers. The responsible purchasing agent then scheduled meetings with each supplier.

Which of the following actions is most appropriate to take with suppliers whose ratings were below the cutoff point?

Discuss ways to raise the ratings for the next review period.

Tell the suppliers they are on probation for 3 months.

Immediately cancel outstanding contracts with those suppliers.

Ask the suppliers to explain the poor performance.

93. Which of the following activities occurs as part of the sales and operations planning process?

Time fences are matched to master production schedule horizons.

The next quarter's forecasts are presented by sales staff to finance and operations personnel at the final meeting.

Strategic plans are adjusted based on changing operating situations.

Plans are converted to financial projections and capacity requirements.

94. Raw material costs have been rising and much of the inventory has been in-house for several months.

Which of the following inventory accounting methods would maximize reported company assets?

Last in, first out (LIFO)

First in, first out (FIFO)

Activity-based cost

Moving average cost

95. A return material authorization (RMA) policy is used in reverse logistics to:

physically transport returned items by using an efficient transportation mode.

minimize the number of returned items by involving product design and demand forecasting.

reduce the cost of returned items by refusing to accept items that should not be returned.

reclaim substantial value from returned items by recycling.

96. A company considers moving a portion of its production to a distant country to support a major customer.

Which of the following actions is most effective in mitigating the risk of financial loss in the event of a global economic downturn?

Expanding the customer base globally

Reducing the global work force

Reducing prices of all products

Adding features for all products

97. In the Supply Chain Operations Reference-model (SCOR®), the cash-to-cash cycle time for a manufacturing company is the number of days between which two of the following situations?

Paying for raw materials and getting paid for the product

Shipping the product from the warehouse and receiving it at the customer's location

Paying for raw materials and sending an invoice to the customer

Billing the customer and getting paid for the product

98. A supplier has decided to improve its forecast accuracy by reducing the information lead time from the retailer.

Which of the following actions would be most appropriate to achieve the desired result?

Eliminating sales and promotions

Decentralizing demand information

Reducing its quoted lead time

Utilizing electronic data interchange

99. A company faces highly unpredictable demand for an end item.

Which of the following production methods would work best for meeting customer demand within a reasonable lead time?

Engineer-to-order (ETO)

Make-to-order (MTO)

Assemble-to-order (ATO)

Make-to-stock (MTS)

100. Direct shipment distribution typically offers which of the following advantages?

Risk pooling is facilitated.

Demand variability is reduced.

Service levels are increased.

Lead times are reduced.

Page 11 of 13

101. Quality function deployment (QFD) is a methodology designed to ensure that:

quality is maintained at all levels of the organization.

suppliers providing high-quality parts are certified.

defective products do not reach customers.

customer requirements are understood and met.

102. Which of the following options typically is a component of sales force automation during implementation of customer relationship management (CRM)?

Automatic call distribution

Online product configuration

Opportunity management

Response management

103. Which of the following actions is most appropriate to take with a supplier whose ratings are below the agreed-upon performance levels?

Discuss ways to raise the ratings for the next review period.

Inform the supplier that they are on probation for 3 months.

Place outstanding contracts with the supplier on hold.

Modify the supplier performance expectations.

104. A company originally based in Germany sets up companies in India, China, Vietnam, Mexico, and Brazil. It sources most of the raw materials locally and employs the local workforce to manage and produce finished goods. Most of the goods produced are consumed in the same country.

The company can be classified as what type of enterprise?

Globally integrated

Domestic

Multinational

Virtual

105. Customizing can be an effective warehousing strategy because it allows a company to:

allocate available storage space to optimize handling costs.

address trade-offs between space and material handling needs.

effectively design its inbound and outbound dock areas.

add value to the product through modification, labeling, and packaging.

106. Which of the following factors typically is the most significant impediment to implementing collaborative commerce?

Technology barriers

Security

Corporate culture

Return on investment (ROI)

107. Point-of-sale information fails to measure actual demand most likely because:

holidays interrupt typical sales patterns.

inventory levels are inaccurate.

there is lag time in the system.

data about lost sales cannot be captured.

108. A company that is focused on customer relationship management is most likely to take which of the following actions for customers who have been profitable over time?

Reduce the cost of serving them.

Target them for higher margin services.

Target them for greater attention.

Charge them for administrative services used.

109. Activity costing (ABC) is an example of:

Generally accepted accounting principles.

Inventory classification system.

Asset cost estimate technique.

Cost allocation technique.

110. Which of the following techniques typically is most effective for controlling variability of demand in a supply chain?

Holding consignment inventory at a customer's location

Holding additional stock at the distributor’s location

Closer monitoring of product promotions at the retailer

Centralizing demand information

Page 12 of 13

111. Which of the following strategies can be used to help manage global risks?

Direct shipment

Cross-docking

Mass customization

Flexibility

112. Which of the following activities is forbidden in a free trade zone (FTZ)?

Cross-docking goods

Reconfiguring product

Re-exporting goods

Conducting retail trade

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

risk tolerance.

risk exposure.

risk mitigation.

risk resilience.

114. A company that produces standardized products and sells them through retailers via a responsive transportation system has decided to expand its sales with an online store for customized products.

Which of the following distribution strategies would be the most appropriate for the business-strategy change?

Local distribution centers serving retailers and online sales

Centralized cross-docking facilities serving retailers and online sales

A centralized distribution center serving retailers and direct shipment from the factory serving online sales

A centralized distribution center serving retailers with transshipment arrangements serving online sales

115. Which of the following types of competitive strategies most likely will be effective for an industry in which the product is a standardized commodity?

Low-cost leadership

Best-cost provider

Broad differentiation

Focused differentiation

116. A company currently produces a major component and is considering purchasing the component from a foreign supplier.

Assuming they were to purchase from the foreign supplier, which of the following factors would most likely impact the domestic manufacturing operations?

Direct cost of the component

Supplier lead time fluctuations

Accuracy of supplier forecasting

Transportation cost from the supplier

117. The focus of collaborative supply chain management differs from a transactional approach by its emphasis on the:

transportation of goods to the next link in the chain.

flow of product information up to the next level of the chain.

flow of demand information and cash up the chain.

flow of supply into an organization.

118. Which of the following metrics is the most appropriate measure of the availability of products to ship in a make-to-stock environment?

Backlog level

Fill rate

Perfect order percentage

Average customer order lead time

119. A company's competitive advantage is product differentiation. The company has multiple new products with unique features targeted to various customer groups. It plans to sell its products via retail channels and online.

One of the activities the company should focus on first when determining inventory levels for each product is:

identifying and documenting each market segment's need.

planning equivalent inventory levels for each product.

setting price points for each product.

determining inventory levels at retail outlets.

120. An insurance broker is interested in increasing price competition among its carriers.

Which of the following strategies would be an efficient way to enable the price reductions?

Consolidate the market.

Utilize business-to-business (B2B) e-marketplaces.

Automate manual processes.

Establish long-term partnerships.

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

average costing.

standard costing.

last in first out (LIFO) costing.

first in first out (FIFO) costing.

122. A large manufacturer wanting to be more competitive in the global market place decided to outsource its transportation and return processing to other companies on a contractual basis.

The companies providing the services would be referred to as:

fourth party logistics providers.

third party logistics providers.

retail services providers.

distribution services providers.

123. 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?

25 units/hr.

27 units/hr.

65 units/hr.

84 units/hr.

124. Producing finished goods in a manufacturing environment has which of the following financial impacts?

Conversion of assets to overhead costs

Conversion of overhead costs to assets

Conversion of overhead costs to liabilities

Conversion of assets to equity

125. Sustainable business practices are those capable of meeting the:

environmental protection requirements of today.

requirements of producing products with minimum resources.

environmental protection requirements of the future.

needs of the present while considering the needs of the future.

126. In the analysis of costs, fixed costs are those that are:

independent of the volume of output.

dependent on the utilization of the asset.

inversely proportionate to the volume of output.

constant through the useful life of the asset.

127. Which of the following factors is the most important driver of supply chain change?

Health and safety concerns

Competitor actions

Government regulations

Customer perceptions of value

128. Value stream mapping provides the most benefit during which of the following tasks?

Analyzing a supplier relationship management (SRM) system

Identifying non-value-added activities

Planning kaizen events

Implementing a quality improvement initiative