APICS CSCP Practice Test - Questions Answers, Page 10

Context: The manufacturer offers a trade-in allowance, reconditions the returned machine, and sells it for profit, highlighting a focus on sustainable practices.Options Breakdown:A . Environmentally sensitive engineering: While this relates to designing products with the environment in mind, it is not as broad as sustainability.B . Gray box design: This involves collaborative design processes and is not directly relevant.C . Green manufacturing: Focuses on environmentally friendly production processes but does not encompass the entire trade-in and resale program.D . Sustainability in operations: This broader concept includes environmentally friendly practices, economic viability, and social responsibility, fitting the described program.Answer: Justification: The program exemplifies sustainability in operations by encouraging recycling and reuse of machines, reducing waste, and generating profit through reconditioning.Sustainability and green operations literatureCase studies on sustainable manufacturing practices

The social dimension of sustainability focuses on aspects that impact people and society. When developing and implementing policies, addressing conflicts of interest is directly related to the social dimension. This includes ensuring fair labor practices, promoting ethical behavior, and maintaining transparency and integrity in decision-making processes. Conflicts of interest can undermine trust and fairness in the workplace, affecting employee morale, community relations, and overall social responsibility.

Accounting practices primarily relate to the economic dimension of sustainability.

Biodiversity protection is part of the environmental dimension.

Waste reduction also falls under the environmental dimension.

Therefore, conflicts of interest align with the social dimension by fostering an ethical and fair working environment.

Elkington, J. (1997). 'Cannibals with Forks: The Triple Bottom Line of 21st Century Business.'

United Nations Global Compact. (2021). 'The Ten Principles of the UN Global Compact.'

The Ten Principles of the UN Global Compact cover areas related to human rights, labor, environment, and anti-corruption. Principle 6 specifically states the elimination of discrimination in respect of employment and occupation, which includes ensuring fair wages. However, paying different wages in different parts of the world for a given job classification can be acceptable if it reflects local living standards and economic conditions, ensuring fair compensation in each context.

Preventing a group of employees from forming a collective bargaining (union) group violates Principle 3, which supports the right to collective bargaining.

Requiring an individual to pay a fee for consideration in hiring or promotion decisions breaches principles related to non-discrimination and fair labor practices.

Withholding certain employment opportunities from specific groups of people directly violates Principles 1 and 6, which promote human rights and anti-discrimination.

United Nations Global Compact. (2021). 'The Ten Principles of the UN Global Compact.'

International Labour Organization (ILO). (2021). 'Global Wage Report 2020-21.'

Complying with the United Nations (UN) Global Compact practices can enhance a company's competitive advantage by improving its reputation, attracting socially conscious consumers, and fostering loyalty among stakeholders. This compliance demonstrates a commitment to sustainable and ethical practices, which can differentiate a business in the marketplace.

Gaining access to proven management tools is not the primary reason for compliance, though it can be a secondary benefit.

Reducing the threat of organized labor is not aligned with the principles of the UN Global Compact, which support fair labor practices.

Reducing the cost of operating in multiple countries is not a typical reason for compliance; in fact, adhering to these principles might sometimes increase costs in the short term but provide long-term benefits.

United Nations Global Compact. (2021). 'The Ten Principles of the UN Global Compact.'

Porter, M. E., & Kramer, M. R. (2006). 'Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility.' Harvard Business Review.

A company would consider moving a portion of its manufacturing to a second location to minimize the impact of natural disasters. This strategy, known as geographical diversification, helps ensure continuity of operations by spreading risk across different locations. If one site is affected by a natural disaster, the other location can continue to operate, thus minimizing downtime and ensuring a steady supply to customers.

Improving competitive advantage through cost control is more associated with outsourcing or offshoring to lower-cost regions.

Avoiding manufacturing downtime due to material shortages typically involves supply chain optimization rather than relocating manufacturing.

Maximizing security for customer shipments pertains to logistics and transportation security measures, not manufacturing location.

Chopra, S., & Meindl, P. (2016). 'Supply Chain Management: Strategy, Planning, and Operation.'

Sheffi, Y. (2005). 'The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage.'

Managing global risks requires strategies that allow a supply chain to adapt quickly to unexpected changes or disruptions. Flexibility in the supply chain can help manage global risks by enabling companies to adjust their operations in response to unforeseen events, such as natural disasters, geopolitical tensions, or changes in market demand. This might involve diversifying suppliers, utilizing multiple transportation modes, or adopting flexible manufacturing systems.

Direct shipment refers to sending products directly from supplier to customer, which might not address broader global risks.

Cross-docking is a logistics practice that involves unloading goods from inbound transport and loading them directly onto outbound transport, without warehousing. It optimizes efficiency but does not inherently manage global risks.

Mass customization is a production strategy that combines elements of mass production and customization but does not directly address global risk management.

Chopra, S., & Meindl, P. (2016). 'Supply Chain Management: Strategy, Planning, and Operation.'

Sheffi, Y. (2005). 'The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage.'

When a company plans to purchase a critical component with tight tolerance requirements, the first step to meet customer requirements should be to certify the supplier. Supplier certification ensures that the supplier has the capability to consistently produce components that meet the required specifications. This involves assessing the supplier's quality management systems, production processes, and adherence to standards.

Implementing statistical process control for the component is important but typically comes after supplier certification.

Bringing manufacturing of the critical component in-house is a significant strategic decision and not necessarily the first step.

Developing an alternate source of supply is a risk mitigation strategy but does not directly address meeting tight tolerance requirements initially.

Juran, J. M., & Godfrey, A. B. (1999). 'Juran's Quality Handbook.'

Burt, D. N., Petcavage, S., & Pinkerton, R. L. (2010). 'Supply Management.'

When supply continuity is threatened due to heavy dependence on international suppliers, the most appropriate action is to conduct a risk assessment. This involves systematically identifying potential risks, evaluating their impact, and developing strategies to mitigate them. The risk assessment provides a comprehensive understanding of vulnerabilities and helps in making informed decisions on sourcing strategies, inventory management, and logistics.

Sourcing from domestic suppliers may reduce some risks but might not be feasible or cost-effective without a thorough assessment.

Carrying additional safety stock is a mitigation strategy but does not address the root cause of supply risk.

Spreading logistics across multiple carriers can help manage transportation risks but does not cover the broader supply chain risks.

Christopher, M. (2011). 'Logistics & Supply Chain Management.'

Waters, D. (2011). 'Supply Chain Risk Management: Vulnerability and Resilience in Logistics.'

Managing supply chain risks includes developing alternatives to key suppliers. This ensures that if one supplier faces disruption, there are other options available to maintain the supply chain continuity. Diversifying the supplier base reduces dependency on a single source and enhances resilience.

Setting aside funds for disruption-recovery efforts is a financial strategy, not a supply chain management activity.

Charging each supply chain partner a portion of risk cost may not be feasible or effective in managing risks.

Creating extra inventory to cover disruptions is a common strategy but it is not a proactive risk management activity like developing alternative suppliers.

Chopra, S., & Sodhi, M. S. (2004). 'Managing Risk to Avoid Supply-Chain Breakdown.' Harvard Business Review.

Tang, C. S. (2006). 'Perspectives in Supply Chain Risk Management.'

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