APICS CSCP Practice Test - Questions Answers, Page 39

A Pareto chart is a tool used to prioritize causes of equipment failures by identifying the most significant factors in a set of data. It is based on the Pareto principle, which states that roughly 80% of the problems are caused by 20% of the causes. By organizing data in descending order of frequency, a Pareto chart helps teams focus on the most critical issues first, thereby facilitating effective problem-solving and resource allocation.

APICS Dictionary, 16th edition.

American Society for Quality (ASQ) resources on Pareto charts.

ANSI Z.10 is a standard for occupational health and safety management systems that is designed to be compatible with other management system standards like ISO 9000 (quality management) and ISO 14000 (environmental management). This compatibility allows organizations to integrate their health and safety management systems with their existing management systems, promoting a holistic approach to organizational management.

ANSI Z10 Occupational Health and Safety Management Systems Standard.

International Organization for Standardization (ISO) documentation.

One primary reason companies often fail to achieve the benefits of reverse logistics is that top managers may not fully understand the costs and benefits associated with returns. This lack of understanding can lead to inadequate investment in necessary infrastructure, processes, and technologies for efficient reverse logistics operations. Additionally, without a clear grasp of the financial impact, managers may not prioritize or effectively manage return processes, resulting in missed opportunities for cost savings and customer satisfaction improvements.

Rogers, D. S., & Tibben-Lembke, R. S. (2001). 'An Overview of Reverse Logistics Practices.'

Supply Chain Management Review articles on reverse logistics.

After documenting the current state of return processes, the next appropriate step is to benchmark against the Supply Chain Operations Reference (SCOR) model. The SCOR model provides a comprehensive framework for evaluating and improving supply chain performance. By benchmarking against SCOR, a company can identify best practices, performance metrics, and improvement opportunities that align with industry standards, thereby facilitating targeted and effective process enhancements.

Supply Chain Council's SCOR Model documentation.

APICS guidelines on benchmarking and process improvement.

Effectively managing cash involves maintaining low accounts receivable, low inventory, and high accounts payable. Low accounts receivable indicates that the company is collecting cash from its customers efficiently. Low inventory means that the company is not tying up too much cash in stock, and high accounts payable suggests that the company is leveraging credit terms with its suppliers, thus preserving its cash reserves for other operational needs.

Financial management textbooks and resources.

Articles on working capital management from financial journals.

Sales Force Automation (SFA) systems are tools designed to automate sales tasks, streamline sales processes, and manage customer interactions effectively. SFA helps in improving the management of the customer pipeline by providing real-time data on customer interactions, sales activities, and forecasting future sales. This allows sales teams to prioritize leads, track progress, and enhance customer relationship management, ultimately leading to better sales performance and customer satisfaction.

APICS Dictionary, 16th edition.

Customer Relationship Management (CRM) literature.

Improving fill rate is an objective related to the internal business processes perspective of a balanced scorecard. The fill rate measures the ability of a business to meet customer demand from available stock without backordering. Enhancing this metric involves optimizing inventory management, order fulfillment processes, and supply chain efficiency, which are all internal business process activities aimed at improving operational performance and customer satisfaction.

Kaplan, R. S., & Norton, D. P. (1996). 'The Balanced Scorecard.'

Supply Chain Management literature on performance metrics.

Carrying costs, also known as holding costs, are the expenses associated with storing inventory. Warehouse rent is a prime example of carrying costs as it is directly related to the cost of housing inventory. Other examples include utilities, insurance, depreciation, and opportunity costs. These costs are incurred as long as the inventory remains unsold, highlighting the importance of efficient inventory management to minimize carrying costs.

APICS Dictionary, 16th edition.

Inventory Management textbooks.

Supply chain disruption avoidance measures are typically based on distinguishing between common and special causes of variation. Common causes of variation are inherent to the process and predictable, while special causes are unexpected and irregular events that can lead to significant disruptions. Understanding and addressing these variations through proper risk management strategies can help in avoiding or mitigating supply chain disruptions.

Deming, W. E. (1986). 'Out of the Crisis.'

Supply Chain Risk Management literature.