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?

Target them for greater attention.

Reduce the cost of serving them.

Target them for higher margin services.

Target them for greater attention.

Charge them for administrative services used.

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

Supply chain inventory days of supply

What are the steps in the supplier relationship process?

Source, procure, fulfill, manage

Measure, fulfill, document, model

Measure, procure, fulfill, model

Source, procure, fulfill, manage

The strategy to implement supplier relationship management has been developed. The most appropriate next step is to:

develop criteria for prospective partners.

develop policies for alliances.

conduct a pilot implementation.

Allowing for organizational restructuring is an example of which of the following steps in creating successful strategic alliances among suppliers?

Managing multifaceted relationships

A company that has consistently achieved a high level of on-time delivery performance has decided to reduce its inventory level significantly. Which of the following outcomes is the most likely effect of that decision on the company's on time delivery performance?

It will decline and then stabilize at a lower level.

It will improve and then stabilize at a higher level.

It will decline until sales erode.

What is the primary benefit of using a central storage warehouse for all components rather than using point-of-use storage?

Ease of control and count accuracy

Reduced need for bar codes and radio frequency identification technology

Reduced material handling costs

Ease of control and count accuracy

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

Advanced continuous replenishment

Which of the following statements about the use of bar code labels for product identification in the supply chain is true?

They facilitate the capture of information about the location of items.

They have been replaced by radio frequency identification tags.

They can be read by devices 1 to 3 meters from the item.

They facilitate the capture of information about the location of items.

Each of the trading partners must apply a unique label.

Inventory parameters established using analytic inventory techniques typically are based on balancing:

customer service and inventory costs.

transportation and warehousing costs.

inventory levels and decision-making costs.

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

trusted and credible framework for reports regarding sustainability practices.

comparison of key metrics for companies in the same industries across the globe.

feasible business plan that can be shown to global potential investors.

trusted and credible framework for reports regarding sustainability practices.

transparent collaboration between non-profit organizations and governments.

An effective procurement strategy for commodity products should focus on:

driving down cost and reducing risk.

spreading purchases equally across suppliers.

selecting primary and alternate sources.

selecting suppliers with value-added products.

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?

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

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.

The transportation manager at a consumer goods manufacturer has decided to begin shipping full truckload rather than less-than-truckload quantities. Which of the following outcomes is likely following implementation of this decision?

Production efficiencies at the manufacturer will increase.

Inventory levels at the manufacturer will decrease.

Lead times as seen by the customer will increase.

Production efficiencies at the manufacturer will increase.

Transportation costs as seen by the customer will increase.

Which of the following processes would a company use to evaluate the risk profile for end-of-life planning for a product family?

Distribution requirements planning

A business is changing from a business to business model to a business to consumer model. Which of the following statements about this supply chain change is true?

Number of customer orders will increase.

Returns from customers will decrease.

Number of supplier orders will increase.

Number of customer orders will increase.

Average supplier order size will increase.

Which of the following actions is most likely to increase total supply chain risk?

Reducing the supplier base for commodity-type components

Standardizing components used in a product family

Expanding operations to multiple locations

Consolidating manufacturing locations

Reducing the supplier base for commodity-type components

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:

notify the supplier of non-compliance.

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.

A company closely monitors supplier performance and notices recent late deliveries from one supplier. The supplier discloses flood damage at the plant. The company quickly shifts sourcing to a new supplier and has minimal loss of sales. Which of the following risk strategies reflects the company's actions?

Achieving low cost through reaction

Creating an adaptive supply chain community

Reducing supply chain vulnerability

Which of the following strategies would increase overall supply chain risk?

Single sourcing a product that makes the highest annual profit

Outsourcing a product that is not well suited to your operations

Identify multiple sources for a product that has a potential for supply chain disruption

Internally manufacturing a product that has a high level of technical intellectual property

Which of the following outcomes occurs when direct shipping is used instead of a distribution network?

Inventory obsolescence is reduced.

Outbound transportation cost is reduced.

Inventory obsolescence is reduced.

Which of the following factors typically is most important in successfully implementing sales and operations planning (S&OP)?

Involvement and accountability at senior management level

Involvement of specialists from all functional groups within an organization

Creation of a dedicated S&OP organizational unit

Involvement and accountability at senior management level

Focus on 3 months to 18 months in the future

A company that sells engineered-to-order products is planning implementation of a supplier relationship management system (SRM) for direct materials. Which of the following factors is most likely to make the implementation difficult?

Complexity of the purchasing process

Cost of the application software upgrades

Management of variable lead times

Resistance of material suppliers

The United Nations Global Compact uses 10 guiding principles to:

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

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.

A company wants to implement a system for managing environmental compliance with legislative and regulatory requirements. Which of the following sustainability tools is most appropriate?

Global Reporting Initiative (GRI)

A firm has discovered a product quality issue. What should be the first step in responding to this issue?

Determine the root cause of the quality issue.

Separate the non-conforming products.

Trace the location of the faulty product in the supply chain.

Replace faulty products when they are returned by the end user.

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

Establishing external risk communications processes

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

Which of the following distribution approaches for a low-volume, high-variety product line typically will result in the highest level of customer service and the lowest total distribution costs?

Shipment from a central distribution warehouse

Direct shipment from plant to customers

Shipment from a central distribution warehouse

Shipment through a multi-echelon distribution network

Outsourcing the distribution function

A manufacturer is the leader of a group of trading partners that are collaborating to improve customer service levels and profitability. Which of the following methodologies would be most appropriate for synchronizing supply and demand across the supply chain?

Distribution requirements planning

Supply Chain Operations Reference-model

Variability in product design can best be reduced by:

initiating 100% product inspection.

outsourcing the design process.

broadening design specifications.

APICS CSCP Practice Test 4 - Free Online Exam Prep & Questions

Question 1 / 40

What is the primary benefit of using modular rather than integral designs?

Lower cost of manufacturing

Increased product performance

Greater responsiveness in marketing and production

Reduced complexity of bills of material

Comment (0)

APICS CSCP Practice Test 4

Question

APICS CSCP Practice Tests

Practice Tests