APICS CSCP Practice Test - Questions Answers, Page 51

In Distribution Requirements Planning (DRP), the calculation of projected on-hand inventory is a crucial aspect. The formula used for this calculation is:

ProjectedOn-HandInventory=PriorWeek'sOn-HandInventoryCurrentWeek'sGrossRequirements+ScheduledReceiptsProjectedOn-HandInventory=PriorWeek'sOn-HandInventoryCurrentWeek'sGrossRequirements+ScheduledReceipts

Here's the breakdown:

Prior Week's On-Hand Inventory: This is the amount of inventory available at the end of the previous period.

Current Week's Gross Requirements: These are the total demands for the current period, which includes customer orders and forecasted demand.

Scheduled Receipts: These are the quantities of inventory that are expected to be received in the current period from previously placed orders.

Therefore, to maintain an accurate calculation of on-hand inventory, you subtract the current week's gross requirements from the prior week's on-hand inventory and add any scheduled receipts that are expected to arrive.

APICS Dictionary, 16th Edition

'Distribution Requirements Planning: The Gateway to Supply Chain Management' by Donald J. Bowersox, David J. Closs, M. Bixby Cooper

'Manufacturing Planning and Control for Supply Chain Management' by F. Robert Jacobs, William Berry, D. Clay Whybark, Thomas E. Vollmann

Advancing cooperation between customers and suppliers hinges on several critical factors, with mutual trust being the most crucial. Here's why:

Foundation of Relationships: Mutual trust forms the foundation of strong, long-lasting relationships between business partners. Trust reduces the perceived risk of opportunistic behavior and fosters a cooperative environment.

Enhanced Communication: When trust exists, both parties are more likely to share relevant information openly, leading to better decision-making and problem-solving.

Commitment and Collaboration: Trust encourages a higher level of commitment and willingness to work together to overcome challenges and achieve common goals.

Risk Mitigation: Trust mitigates risks associated with dependency and reliance on external partners, as both parties are more likely to act in good faith.

While legal agreements, mutual need, and financial dependency play roles in these relationships, they cannot replace the fundamental importance of mutual trust.

'Supply Chain Management: Strategy, Planning, and Operation' by Sunil Chopra, Peter Meindl

'Purchasing and Supply Chain Management' by Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

'Strategic Supply Management' by Robert J. Trent

Selecting the appropriate mode of transportation in a global supply chain requires understanding the characteristics and limitations of each option:

Rail Transportation Variability: Rail transportation's availability, specifications, and geographic reach can vary significantly by country. Factors influencing this include:

Infrastructure Development: Some countries have well-developed rail networks, while others may lack extensive rail infrastructure.

Technical Specifications: Differences in track gauge, loading standards, and train types can affect compatibility and efficiency.

Geographic Reach: Rail networks may cover large parts of some countries while being limited in others, affecting connectivity and accessibility.

Cost Considerations: While rail can be cost-effective for certain types of cargo and distances, its variability in availability and specifications means that it may not always be the optimal choice.

Comparison to Other Modes:

Air Transportation: Typically used for lightweight, high-value items due to higher costs.

Water Transportation: Ideal for moving heavy items over long distances, offering low costs but slower speeds.

Pipeline: Generally used for specific commodities like oil and gas, with high fixed costs but low variable costs.

'Global Logistics and Supply Chain Management' by John Mangan, Chandra Lalwani, Agustina Samanta

'Logistics & Supply Chain Management' by Martin Christopher

'The Handbook of Logistics and Distribution Management' by Alan Rushton, Phil Croucher, Peter Baker

Increased collaboration and access to channel partner competencies are significantly enhanced through the sharing of data and business intelligence. Here's why:

Improved Decision-Making: Sharing data allows partners to make informed decisions based on accurate, up-to-date information. This leads to better alignment of strategies and operations.

Transparency: Data sharing fosters transparency, which builds trust and facilitates smoother cooperation between partners.

Efficiency and Responsiveness: Access to real-time data and business intelligence helps partners respond more quickly to changes in demand, supply disruptions, and other market dynamics.

Joint Problem Solving: When partners share data, they can collaboratively analyze and address issues, leading to improved performance across the supply chain.

Other factors like transportation and incentive plans, cost sharing, and partner agreements are also important, but they rely on the foundation of shared data and business intelligence to be most effective.

'Supply Chain Management: Strategy, Planning, and Operation' by Sunil Chopra, Peter Meindl

'Collaborative Planning, Forecasting, and Replenishment: How to Create a Supply Chain Advantage' by Dirk Seifert

'Supply Chain Management Best Practices' by David Blanchard

According to the APICS CSCP - Supply Chain Management Certification2, the financial Z-Score is a metric that measures the probability of a company going bankrupt within two years, based on a combination of financial ratios such as liquidity, profitability, leverage, and activity. A higher Z-Score indicates a lower risk of bankruptcy, while a lower Z-Score indicates a higher risk of bankruptcy.

According to the APICS Supply Chain Operations Reference Model SCOR1, an automated guided vehicle system (AGVS) is a type of rider less material handling system that can be characterized by movement along the floor using optical, magnetic, or wireless control. AGVSs are used to transport materials within a facility or between facilities without human intervention.

According to the APICS CSCP - Supply Chain Management Certification, scheduled receipts are replenishment shipments that have been ordered but not yet received by the buyer. Scheduled receipts are used to calculate net requirements and planned orders in a material requirements plan (MRP).