APICS CSCP Practice Test - Questions Answers, Page 32

When considering a new supplier in a different country that offers substantial savings, it is crucial to consult the logistics department. The logistics team will evaluate the feasibility of international transportation, potential delays, customs requirements, and overall supply chain reliability. They can assess whether the cost savings are justified when considering the total landed cost, including transportation, tariffs, and potential risks associated with international sourcing.

Human resources (B) is less relevant in evaluating supplier selection based on cost savings and logistics.

Marketing (C) would be involved if the decision impacted product offerings or customer perceptions.

Information technology (D) might be consulted for integration but is not the primary concern for logistics and cost savings evaluation.

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

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. (2016). Supply Chain Management: A Logistics Perspective. Cengage Learning.

Flexibility in supply chain risk management involves the capacity to respond promptly and effectively to disruptions or changes in the supply chain while maintaining customer service levels. This includes being able to switch suppliers, adjust production schedules, and manage inventory dynamically to meet customer demands despite unforeseen events.

Adjusting capacities in a manufacturing environment (A) is a part of flexibility but not as comprehensive as the ability to maintain service levels.

Producing high volume SKUs in multiple locations (C) and producing complex configurations of a product within the standard lead time (D) are aspects of flexibility but do not capture the broader definition related to risk management and customer service.

Tang, C. S. (2006). Robust strategies for mitigating supply chain disruptions. International Journal of Logistics Research and Applications.

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

The United Nations (UN) Global Compact includes ten principles in the areas of human rights, labor, environment, and anti-corruption. The anti-corruption principle calls for businesses to work against corruption in all its forms, including extortion and bribery. This principle is crucial for promoting transparency and ethical business practices globally.

Trading blocs (A) are not part of the UN Global Compact principles.

Risk management (C) is important but not specifically a principle of the UN Global Compact.

Accounting standards (D) are related to financial reporting but not directly part of the UN Global Compact principles.

United Nations Global Compact. (n.d.). The Ten Principles of the UN Global Compact. UN Global Compact.

Geopolitical risks are among the most difficult to plan for and mitigate due to their complex and unpredictable nature. These risks can include political instability, regulatory changes, trade restrictions, and conflicts. Such events can have widespread and significant impacts on global supply chains, often with little warning and limited ability to influence or control.

Currency fluctuation (A) can be managed with financial instruments like hedging.

Forecast error (B) can be mitigated with better data and analytics.

Supplier performance (D) can be managed through supplier development and contracts.

Christopher, M., & Peck, H. (2004). Building the Resilient Supply Chain. International Journal of Logistics Management.

Manuj, I., & Mentzer, J. T. (2008). Global Supply Chain Risk Management. Journal of Business Logistics.

Due diligence for conflict- or high-risk materials must include a system of controls and transparency that ensures traceability of materials through the supply chain. This involves having detailed records and tracking mechanisms from the source to the final product, ensuring that all stakeholders are aware of the origin and movement of these materials. Such transparency helps companies to avoid using materials sourced from conflict zones and ensures compliance with legal and ethical standards.

Tracking the country of origin (A) when materials leave the country is important but does not encompass the full traceability through the supply chain.

Certification by companies selling directly to consumers (C) about tier one suppliers is narrower in scope and does not address full supply chain transparency.

Providing documentation of the source materials upon import (D) is part of due diligence but not as comprehensive as maintaining a transparent system throughout the supply chain.

OECD (2016). OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

International Organization for Standardization (ISO) (2017). ISO 20400: Sustainable Procurement - Guidance.

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The Delphi forecasting method is a structured communication technique that relies on a panel of experts. It compensates for individual biases by using multiple rounds of questioning and feedback. Experts provide forecasts anonymously, and after each round, a facilitator provides a summary of the forecasts along with the reasons given for their judgments. This process is repeated until a consensus is reached, minimizing the influence of individual biases and leading to more reliable results.

Statistical formulas (A) are not the basis of the Delphi method, which relies on expert judgment rather than purely statistical analysis.

Assigning more weight to key customers' demand (C) is not a feature of the Delphi method.

Reducing dominance by a few individuals (D) is correct but is a part of compensating for biases, not the primary advantage.

Rowe, G., & Wright, G. (1999). The Delphi Technique as a Forecasting Tool: Issues and Analysis. International Journal of Forecasting.

Linstone, H. A., & Turoff, M. (1975). The Delphi Method: Techniques and Applications.

In an industry where the product is a standardized commodity, the most effective competitive strategy is often low-cost leadership. Standardized commodities are typically undifferentiated products, so the key competitive advantage comes from being able to produce and sell at the lowest cost. This strategy focuses on achieving cost efficiencies, economies of scale, and rigorous cost control to offer the lowest price in the market, attracting price-sensitive customers.

Best-cost provider (B) combines low cost with differentiation, which is less relevant for standardized commodities.

Broad differentiation (C) and focused differentiation (D) are strategies that rely on distinguishing the product from competitors, which is challenging with standardized commodities.

Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.

Grant, R. M. (2016). Contemporary Strategy Analysis. Wiley.

In an integrated logistics strategy, the objective is to achieve the lowest total cost rather than focusing on individual cost components like transportation or warehousing costs separately. This holistic approach considers all elements of the logistics process, including transportation, warehousing, inventory management, and order processing, and seeks to optimize the entire system for efficiency and cost-effectiveness. By doing so, the strategy ensures that costs are minimized across the entire supply chain, rather than in isolated parts, leading to overall cost savings and improved service levels.

Lowest transportation cost (A) might lead to suboptimal decisions in other areas, such as warehousing or inventory management.

Optimal warehouse location (C) is an important factor but only one part of the overall cost structure.

Improved 3PL collaboration (D) is beneficial but not the central focus of minimizing total cost.

Bowersox, D. J., Closs, D. J., & Cooper, M. B. (2012). Supply Chain Logistics Management. McGraw-Hill.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2007). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill.

Establishing a warehouse distribution system involves several critical criteria to ensure efficiency and effectiveness. These include:

Transportation Costs: This is crucial as it impacts the overall cost of goods delivered to customers. Efficient transportation strategies can significantly reduce costs and improve delivery times.

Material Handling Costs: These are costs