A work center's demonstrated capacity for the last week was 160 standard hours. Its demonstrated capacity for the last 6 weeks was 140 standard hours. Which of the following numbers would be best to use to determine the appropriate future load for the work center?

140 standard hours, because it is based on a greater number of periods.

160 standard hours, because it reflects what the work center has proven it can do.

160 standard hours, because it reflects what happened most recently.

150 standard hours, because it is the average of the last two periods.

140 standard hours, because it is based on a greater number of periods.

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

Which of the following benefits would a company realize by implementing software-as-a-service (SaaS)?

Low costs to install and upgrade

Software tailored to the needs of the company

Low costs to install and upgrade

Sharing of information among supply chain partners

To handle a dispute over damage to goods shipped between two countries, which international standard should be applied?

United Nations (UN) Global Compact

Export Trading Company (ETC) Act

Omnibus Foreign Trade and Competitiveness Act

Which of the following strategies can be used to help mitigate negative effects of events that rarely occur?

Adaptive supply chain community

The ISO 31000 standard can be best used for which of the following actions?

Seeking generic guidelines on risk management

Comparing risk management practices

Creating industry specific risk management practices

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

Improve service level and reduce inventory cost.

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.

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?

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

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.

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

Identifying non-value-added activities

Analyzing a supplier relationship management (SRM) system

Identifying non-value-added activities

Implementing a quality improvement initiative

A new distribution warehouse is added to an existing supply chain network. Which of the following factors primarily is responsible for the resulting overall reduction of customer delivery lead times?

The average travel time from the distribution warehouse to the customer is reduced.

New material handling equipment improves the speed and efficiency of the pick/pack process.

Increased safety stock levels in the overall network results in fewer stockouts and more on-time deliveries.

The average travel time from the distribution warehouse to the customer is reduced.

The territory for each distribution warehouse shrinks, resulting in fewer inbound transportation carriers.

Which of the following actions by a manufacturer most likely would improve service levels throughout the supply chain?

Reducing profit-margin expectations

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

identify the impact on current orders and escalate.

reject the order and inform sales.

identify the impact on current orders and escalate.

accept the order but change the due date.

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.

In order to decrease shipping costs, a shipper would take which of the following actions?

Increase the weight shipped and consolidate shipments.

Utilize less-than-truckload (LTL) shipments versus truckload (TL).

Use a common carrier rather than a contract carrier.

Decrease the weight shipped and use break-bulk shipments.

Increase the weight shipped and consolidate shipments.

Supplier quality and delivery performance are critical inputs to which of the following initiatives?

Implementing total quality management (TQM)

Which of the following outcomes is most likely to result when lot size increases?

Inventory carrying cost will increase.

Operating expenses will increase.

Organizations can take which of the following actions as an outcome of SWOT analysis?

Take advantage of external positive factors.

Publish their internal positive factors.

Emphasize their internal negative factors.

Take advantage of external positive factors.

Control external negative factors.

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:

a universal distribution system.

Risk pooling is a concept that suggests:

demand variability is reduced if demand is aggregated across locations.

demand variability is increased if demand is disaggregated across locations.

demand variability is reduced if demand is disaggregated across locations.

demand variability is increased if demand is aggregated across locations.

demand variability is reduced if demand is aggregated across locations.

The Global Reporting Initiative (GRI) is intended to:

provide guidance on best practices for preparing a sustainability report.

track the country's general business practices for country-to-country comparisons.

provide guidance on best practices for preparing a sustainability report.

allow for appropriate tariffs and fees for cross-border shipments.

establish the minimum standards that a firm should achieve for best-in-class.

A group of trading partners that uses the triple bottom line (TBL) to measure its performance is focusing on:

sustainable business practices.

market share and profitability.

sustainable business practices.

Which of the following actions most likely will increase market share for products that are critical manufacturing components for customers?

Providing a level of service to increase customer uptime

Reducing prices below those of the competition

Providing a level of service to increase customer uptime

Incorporating the latest technology in the products

Storing a range of the products on customer sites

An organization is redesigning its processes to maximize the use of parallel operations. An expected outcome of this effort typically would include:

reduced requirement for support materials.

In which of the following forms of electronic commerce do suppliers attempt to offer the lowest price to buyers?

Business-to-business commerce (B2B)

Business-to-consumer sales (B2C)

A retailer that operates a three-level distribution network is considering eliminating one level in the network and shipping directly from the regional warehouses to the retail outlets. Which of the following outcomes is most likely to result?

Risk pooling benefits will decrease.

Total transportation costs will decrease.

Retail outlet order frequency will decrease.

Deliveries to the retail outlets will decrease in number.

Risk pooling benefits will decrease.

APICS CSCP Practice Test 11 - Free Online Exam Prep & Questions

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