Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

Production equipment productivity

Value-added productivity per employee

The main benefit of a mass customization product design strategy is to:

sell high quantities of product to specific customer segments.

achieve economies of scale in purchasing components.

offer more product variety while keeping inventories low.

avoid assembly of finished products.

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.

distribution services providers.

Companies are more likely to consider the consequences of their product design decisions when they view the reverse supply chain as an extension of the:

sales and operations planning process.

The primary reason for a firm to pursue strategic supply chain activities is to:

reduce total cost of ownership (TCO).

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-facing ordering systems

Customer relationship management (CRM)

Supply Chain Operations Reference (SCOR)

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

analyze product profitability by market segment.

discontinue the product based on eroding profitability.

provide additional incentives to the sales force.

increase promotional activity across all markets.

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

maximization of on-time delivery.

minimization of product returns.

identification of customers with high lifetime value.

finding new markets for existing products and services.

A manufacturer offers a trade-in allowance on a new machine when the customer returns the old machine. The manufacturer reconditions the returned machine locally and then sells it on the used market for a profit. This program is an example of a focus on:

environmentally sensitive engineering.

Which of the following actions is in accordance with the Ten Principles in the United Nations (UN) Global Compact?

Paying different wages in different parts of the world for a given job classification

Preventing a group of employees from forming a collective bargaining (union) group

Paying different wages in different parts of the world for a given job classification

Requiring an individual to pay a fee for consideration in hiring or promotion decisions

Withholding certain employment opportunities from specific groups of people

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.

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

minimize the impact of natural disasters.

improve competitive advantage through cost control.

avoid manufacturing downtime due to material shortages.

maximize security for customer shipments.

minimize the impact of natural disasters.

Potential customers of a company's new product have tight tolerance requirements. The company plans to purchase a critical component. To meet customer requirements, the company should first:

certify the supplier of the component.

implement statistical process control for the component.

bring manufacturing of the critical component in-house.

develop an alternate source of supply.

certify the supplier of the component.

A company's supply chain depends heavily on sourcing from international suppliers. Conditions increasingly threaten supply continuity. Which of the following actions is most appropriate?

Source from domestic suppliers.

Spread logistics across multiple carriers.

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

The most important challenge to consider when sourcing globally is:

balancing the difference between piece price and total cost.

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.

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

distributed.U S. Customs and Border Protection. (2020). 'What are the Benefits of a Foreign-Trade Zone?' World Bank. (2011). 'Customs Modernization Handbook.'

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

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

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.

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:

transportation from the plant to the distribution centers.

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.

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

which processes require improvement.

a competitor's manufacturing processes.

a firm's leadership ranking relative to industry peers.

which processes require improvement.

that no further improvement is possible.

Distribution from which of the following types of sites enables goods to enter a country, undergo further modification, and then be exported without paying customs duties?

Customs clearing houseU S. Customs and Border Protection. (2020). 'What are the Benefits of a Foreign-Trade Zone?' World Bank. (2011). 'Customs Modernization Handbook.'

An increase in the inventory turnover rate for a supply chain typically would indicate that there has been a reduction in:

the total supply chain inventory.

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

Facilitating timely and accurate data acquisition

Tracking truck locations on cross-country deliveries

Facilitating timely and accurate data acquisition

Providing paperless invoicing of goods

Producing schedule broadcasts for suppliers

When implementing e-commerce in the supply chain, a company's toughest challenge most likely will be:

translating data into universal standards.

getting all vendors to computerize.

translating data into universal standards.

convincing the information technology department of the value.

explaining the reason for change to customers.

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

A company currently produces custom goods for a limited market. To increase market share, the company will implement a strategy to reduce the number of products it produces and reduce delivery lead time. The company can increase its chances of achieving the strategy by:

involving customers in the product design process.

using benchmark data for products in the same product groups.

incorporating results from market surveys.

involving customers in the product design process.

using electronic communications to receive customer complaints.

Component commonality in manufacturing primarily allows a company to:

optimize production runs for the components.

use less-specialized machinery.

decrease single-minute exchange of die processes.

APICS CSCP Practice Test 3 - Free Online Exam Prep & Questions

Question 1 / 40

Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?

Sales and marketing refers to SCOR to improve demand generation.

Production and engineering uses SCOR best practices to design a new 'make' process flow.

Distribution and logistics selects suppliers from the SCOR reference list.

Marketing and development incorporates SCOR Level I metrics for new product design.

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