APICS CSCP Free Practice Questions

NEW QUESTION 1
Managing risk should be a strategic part of supply chain management because:

• A. the occurrence of unanticipated risks essentially can be eliminated.
• B. not all members of the supply chain consider and respond to the same types of risks.
• C. substantial financial penalties can be assessed if legal requirements are not met.
• D. it helps to reduce the occurrence and consequences of unplanned negative events.

Answer: D

NEW QUESTION 2
The most appropriate frequency for the sales and operations planning process typically is:

• A. weekly.
• B. monthly.
• C. quarterly.
• D. annually.

Answer: B

NEW QUESTION 3
If a firm has 35 days of accounts payable outstanding and 55 days invested in inventory, and its cash-to-cash cycle time is 90 days, what is the number of days of accounts receivable?

• A. 70
• B. 90
• C. 110
• D. 180

Answer: A

NEW QUESTION 4
A firm may use which of the following technologies to track the flow of inventory across its entire supply chain?

• A. Distribution requirements planning
• B. Radio frequency identification
• C. Transportation management system
• D. Warehouse management system

Answer: B

NEW QUESTION 5
Compared to a global strategy, a multicountry strategy would be characterized by:

• A. strategy coordination across countries.
• B. preferred suppliers located in host countries.
• C. major strategic decisions coordinated centrally.
• D. products adapted to local needs.

Answer: D

NEW QUESTION 6
A company uses multiple ingredients to make a product that is sold in multiple countries. Each country requires country-specific labels. A third-party supplier provides the country- specific labels. The most appropriate push-pull interface is:

• A. raw materials to product.
• B. product to labels.
• C. finished product with labels.
• D. customer to finished product.

Answer: B

NEW QUESTION 7
When designing a supply chain for strategic advantage, a company first should consider:

• A. the impact on customers using Just-in-Time manufacturing.
• B. the financial stability of suppliers.
• C. matching the supply chain to product type.
• D. whether to use custom or standard parts.

Answer: C

NEW QUESTION 8
A main benefit of using customer relationship management (CRM) is:

• A. maximization of on-time delivery.
• B. minimization of product returns.
• C. identification of customers with high lifetime value.
• D. finding new markets for existing products and services.

Answer: C

NEW QUESTION 9
A key assumption of the economic order quantity (EOQ) is that:

• A. future demand cannot be projected.
• B. the rate of demand is continuous and constant.
• C. reorder frequency is fixed.
• D. as the lot size decreases, the setup cost per unit decreases.

Answer: B

NEW QUESTION 10
When evaluating several possible supply chain options, a firm considering the minimal total cost should:

• A. ensure that the inventory levels are as low as possible to minimize holding costs while still providing adequate customer service.
• B. account for the combined costs of holding buffer inventory and incurring inventory shortages.
• C. consider the costs of acquiring, holding, and transporting inventory, and of servicing customers.
• D. place buffer inventory in the lowest cost locations that meet lead time and service level requirements from customers.

Answer: C

NEW QUESTION 11
The social dimension of sustainability typically would be addressed when developing and implementing policies regarding:

• A. accounting practices.
• B. biodiversity protection.
• C. conflicts of interest.
• D. waste reduction.

Answer: C

NEW QUESTION 12
A company produces and distributes a family of soft drinks in a single country. It has developed and will introduce a new family of soft drinks for weight- and health-conscious individuals. There currently are no competitors with nationwide distribution for this category of soft drinks. Which of the following supply chain strategies would be most appropriate for the two product families?

• A. Produce both product families to forecast and push through the distribution system.
• B. Produce both product families only after receipt of a distributor order.
• C. Produce the current product family to forecast and the new product family to order.
• D. Produce the current product family to order and the new product family to forecast.

Answer: C

NEW QUESTION 13
Effective sales and operation planning (S&OP) is most likely to result in which of the following benefits?

• A. Better customer service
• B. Better product quality
• C. Lower product cost
• D. Lower work-in-process (WIP) inventory

Answer: A

NEW QUESTION 14
A company has been delivering a global product that no longer appears profitable. Senior management’s best response is to:

• A. analyze product profitability by market segment.
• B. discontinue the product based on eroding profitability.
• C. provide additional incentives to the sales force.
• D. increase promotional activity across all markets.

Answer: A

NEW QUESTION 15
An advantage of using a third-party logistics service (3PL) is improved:

• A. on-time delivery of shipments due to higher inventory levels.
• B. cost structure due to economies of scale.
• C. access to smaller markets due to localization.
• D. risk visibility due to inventory consolidation.

Answer: B

NEW QUESTION 16
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?

• A. Discuss ways to raise the ratings for the next review period.
• B. Tell the suppliers they are on probation for 3 months.
• C. Immediately cancel outstanding contracts with those suppliers.
• D. Ask the suppliers to explain the poor performance.

Answer: A

NEW QUESTION 17
Which of the following methodologies is most appropriate to use to drive continuous improvement?

• A. Define-measure-analyze-improve-control process
• B. Kanban
• C. Poka-yoke
• D. Pareto analysis

Answer: A

NEW QUESTION 18
The mission of the global reporting initiative (GRI) is to provide a:

• A. comparison of key metrics for companies in the same industries across the globe.
• B. feasible business plan that can be shown to global potential investors.
• C. trusted and credible framework for reports regarding sustainability practices.
• D. transparent collaboration between non-profit organizations and governments.

Answer: C

NEW QUESTION 19
Which of the following processes ensures that functional plans are consistent?

• A. Strategic planning
• B. Sales and operations planning
• C. Project planning
• D. Master scheduling

Answer: B

NEW QUESTION 20
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:

• A. 12 minutes.
• B. 20 minutes.
• C. 22.5 minutes.
• D. 28 minutes.

Answer: B