Download APIC CSCP Module 1 Exam 2024: Multiple Choice Questions and Answers and more Exams Supply Management in PDF only on Docsity!
APIC CSCP MODULE 1
EXAM 2024 WITH 100% CORRECT ANSWERS
"You are working in an organization that is in the second developmental stage of organizational design.
What should you be prepared to do? - Correct Answer Communicate upward or laterally in functional
teams." "An organization that networks its enterprise resources planning (ERP) systems across corporate
boundaries might do which of the following to reduce the bullwhip effect? - Correct Answer Send
point-of-sale data directly to suppliers." What would be the best tool to use to balance a set of complex priorities for a supply chain that includes
cost minimization, resilience, and time to market? - Correct Answer Operations research"
"A design engineer is creating a product that conforms to customer needs according to market research. Which of the following is the most important secondary design element that the engineer should
include in the design? - Correct Answer It can be sold for a positive return."
"Which of the following best describes profit margin? - Correct Answer Difference between sales and
cost of goods sold"
"A SWOT analysis is: - Correct Answer a tool used to analyze an organization's current state and
opportunities." "Maria sells her paintings in the street market on weekends. What is Tier 2 suppliers in this supply chain
model? - Correct Answer Paint wholesaler"
"If the overall economy of a country is in a trough but economic leading indicators show a healthy increase in demand for the next quarter, which would be a good strategic choice for a risk-seeking
organization to make? - Correct Answer Hire high-quality new employees at reasonable salaries."
"Direct materials plus direct labor plus manufacturing overhead equals: - Correct Answer the cost of
goods sold."
"What is prompting many countries to adopt the International Financial Reporting Standards (IFRS)? -
Correct Answer Growth in international shareholders and trade"
"If you are working in a firm that is in Stage 1 of supply chain management evolution, you should be
prepared for: - Correct Answer overly optimistic forecasting."
"Although it depends upon the type of industry, in most cases supply chain costs can total what
percentage of a company's revenues? - Correct Answer 50%"
"Should the supply chain manager of a channel master monitor the communications process between it
and its strategic trading partners? - Correct Answer Yes. It is important that communications stay
complete, accurate, and respectful."
"Which is a best practice for a person fulfilling a project manager role? - Correct Answer Project
managers admit to mistakes and see them as learning opportunities." "According to macroeconomic theory, as aggregate prices decrease, what happens to the real gross
domestic product (GDP), and why? - Correct Answer Real GDP increases, because there is more real
wealth." "A supply chain that produces and sells bar soap using traditional forecasting at each stage has been
experiencing the bullwhip effect. Which of the following has the strongest influence on this effect? -
Correct Answer Safety stock"
"What are the three essential elements of a performance measurement system? - Correct Answer A
criterion, a standard, and a measure" "According to Michael Porter, in his influential work on business strategy Competitive Advantage, what else needs to be integrated into a business plan if it already specifies customer service, sales channels, a
value system, and an asset footprint? - Correct Answer Whether to use make-to-stock or some other
operating model" "In a low-price supermarket chain, the stores, the distribution centers, the third-party logistics provider, and the manufacturers work together to replace what is sold in the stores within less than 24 hours.
What type of supply chain structure does that illustrate? - Correct Answer Reactive efficient"
"What are the attributes of basic customer service? - Correct Answer Availability, operational
performance, and customer satisfaction" "After performing an extensive customer survey, what else does an organization need to do to discover
whether there are any customer requirements being missed in the market? - Correct Answer Scan
what the competitors are offering."
"If each step of a supply chain adds value, what else can the customer expect to see aside from utility? -
Correct Answer Attractiveness, price, and availability"
"The four stages of supply chain management evolution occur in which of the following? - Correct
Answer Vertically integrated supply chains
Lateral or horizontal supply chains Combination supply chains like keiretsu"
"A vertically integrated enterprise can grow by doing which of the following? - Correct Answer
Merging with or acquiring other companies"
"Many Japanese companies build keiretsu to: - Correct Answer form cooperative relationships, usually
through ownership of stock in member companies." "When Henry Ford organized Ford Motor Company to include raw materials extraction and dealerships
as well as his assembly lines, he created which of the following? - Correct Answer Vertical supply
chain"
"In which directions do the four basic flows within a supply chain move? - Correct Answer Physical
materials and services flow downstream, cash and the reverse supply chain flow upstream, and information flows in both directions." "A company can demonstrate cross-functional integration of planning and capacity for operations. It appoints a leader with experience in external integration, who starts by aggregating purchasing to find volume discounts. This organization is currently trying to grow out of which of the following stages of
supply network technology optimization? - Correct Answer Stage 2, semifunctional enterprise"
"Which of the following is a benefit of lateral supply chains? - Correct Answer Improved business focus
and expertise" "A company benchmarks its competitor as having unattended internet trading and capable-to-promise
(CTP). What stage of supply chain development has this competitor reached? - Correct Answer
Extended enterprise" "A company has reached Stage 4 of supply chain development, extended enterprise, by engaging in extended supply chain global e-business. Which of the following is likely true of this company from this
point forward compared to where they were a few years ago? - Correct Answer Increased outbound
transportation costs"
"In organizations in Stage 4 of supply chain evolution, a supply chain function would likely: - Correct
Answer provide real-time tracking of customer shipments.
work on synchronized enterprise resources planning (ERP) systems with supply chain partners. build a direct link between the manufacturer and a component supplier or retailer and a supplier of finished goods."
"The integrated enterprise stage of supply chain evolution is significantly different from the prior stage
in that: - Correct Answer its business processes are facilitated by organization-wide technology."
"A coal mine ships coal to a generating plant that supplies power to a manufacturer that produces a machine that is shipped to a distributor that sells mining equipment to the same mine that began the
process. This is an example of a: - Correct Answer supply chain that doubles back on itself."
"In which stage of organizational design development might an organization start having at least one business process that requires collaboration from another corporation even if this is just for one product
line or component? - Correct Answer Fourth: extended enterprise"
"Which of the following are benefits of a vertical supply chain? - Correct Answer Complete control and
visibility of operations" "Which of the following statements is true about changing market conditions such as those in the
fashion industry? - Correct Answer Some companies manage this by starting their seasonal product
design process early." "A manufacturer, a distributor, a wholesaler, and a retailer all agree to base their orders on actual consumer orders instead of performing detailed forecasts based on each party's Tier 1 customers' actual
orders. Which of the following will result, and what are the likely risks of this method? - Correct
Answer The push/pull line moves back to the manufacturer but at the risk of greater overtime or rush
orders." "Which of the product categories designated by Marshall L. Fisher would be the most likely classification
for a custom product that has a six-month lead time? - Correct Answer Make-to-order functional
product" "Which of the following is a supply chain strategy based on the business strategy of product
differentiation? - Correct Answer Keeping minimal inventory of the base model and expanding
inventory of options"
"Target costing is: - Correct Answer designing a product to meet a specific cost objective."
"What is the most important thing for an organization to establish before it attempts to break into a market with many competitors or when the market conditions are considered challenging due to the
economy? - Correct Answer Clear competitive advantage"
"When inventory moves from being backordered to being in excess, it may be due to: - Correct Answer
a change in demand downstream in the supply chain."
"When considering options for developing or buying enterprise resources planning (ERP) software, a
firm should be most concerned to select software that provides which of the following benefits? -
Correct Answer Alignment between the firm's strategy and operations"
"Understanding process interdependencies and responsibility for each substep and identifying
bottlenecks will provide which supply chain ability? - Correct Answer Ability to streamline operations"
"A company is effective if it: - Correct Answer focuses on and meets its customers' needs and wants
while still meeting its cost objectives." "If a major consumer electronics company wants to optimize its knowledge of its marketplace, it should
do which of the following? - Correct Answer Share distribution point information with its partners."
"Supply chain management works to reduce: - Correct Answer demand and supply variability."
"Which is an example of a service supply chain making investments now to satisfy the demands of its
manufacturing customers for environmentally sustainable options? - Correct Answer Electric utility
adding wind turbines"
"Which of the following does not describe product design for maximum supply chain flexibility? -
Correct Answer Create many product variations."
"How can a company best introduce a brand-new product type that has no sales history and ensure its
availability? - Correct Answer It can send product directly from production to central distribution
centers that ship only per actual customer orders." "Fatima Alano is the new CEO of a company, and she's known for the sustainability initiatives she
spearheaded at her last company. Which of the following would she be most likely to focus on first? -
Correct Answer Triple bottom line"
"If a company looks internally to determine how a supply chain process can be done less expensively
and in less time and use fewer resources, it is: - Correct Answer efficient"
"Supply chain efficiency can be risky if a firm: - Correct Answer has eliminated stock buffers and relies
on Just-in-Time (JIT) delivery."
"What is the most important factor in choosing suppliers for multiple supply chains? - Correct Answer
It varies based on the product line needs."
"How should organizations balance sustainability customer requirements against product cost? -
Correct Answer Limit sustainability costs to allow still meeting a price customers will pay."
"A value stream map is usually used in conjunction with which of the following improvement methods? -
Correct Answer Lean"
"In response to increasing consumer economic and environmental concerns, auto industries have developed new products such as hybrids and electric-powered vehicles. This is an example of which of
the Vs of supply chain management? - Correct Answer Variety"
"What are the proactive benefits of risk planning for an organization? - Correct Answer Employees and
supply chain partners are prepared. There is increased flexibility in the supply chain. Risk is shared among supply chain partners." "Reducing the time in which inventory is not moving by using Just-in-Time (JIT) delivery and lean
manufacturing is an example of an effort aimed at: - Correct Answer increasing velocity."
"What is a good way to brand the supply chain management function within an organization's overall
revenue model? - Correct Answer As a value-added service"
"Other than competitive priorities, what does the organizational strategy feed to the supply chain
strategy to ensure alignment? - Correct Answer Future direction, such as new products"
"Which of the following is not a benefit of effective supply chain management? - Correct Answer
Reduced government regulations"
"Which of the following illustrates an emphasis on the affordability aspect of customer value? - Correct
Answer Luxury boat priced lower than other luxury boats of similar size and features"
"The supply chain manager has recently been told that he must increase the supply chain value to the
external stakeholders. Which stakeholders should he focus on, and what should be done? - Correct
Answer Shareholders; increase dividend income."
"The purpose of supply chains is to be globally competitive. What are the basic elements in a supply
chain that can impact its ability to respond competitively to changes in the global marketplace? -
Correct Answer Collaboration, time, distance"
"A nucleus firm in the banking industry uses independent brokers to market new stock issues and has been successful in this channel. After investing some profits in the firm itself, they choose to reward their stockholders by distributing all remaining profits in a special dividend, even though independent brokers are prohibited from owning these shares. Which of the following has this firm forgotten to
account for in its creation of financial value? - Correct Answer Gains must be fairly distributed among
stakeholders."
"According to the law of demand, what is likely to happen if the price of a good or service increases? -
Correct Answer Consumption of substitute goods may increase."
"Which tool or technique formally connects the strategies and overall objectives of a business to goals
and measurements that go beyond just financial metrics? - Correct Answer Balanced scorecard"
"Microeconomics focuses on the decisions that businesses and people make: - Correct Answer in
terms of resource allocation and the prices of products and services." "When conducting network modeling and operations research, what is an important input because it can show where demand for particular products is the strongest and thus may influence where to put
assembly facilities? - Correct Answer Market plan"
"An organization's marketing department conducts market research by studying the size, location, nature, and characteristics of markets along with sales (or consumption) data. What else does it need to
do? - Correct Answer Study market share and do consumer research."
"According to John Maynard Keynes, which is a primary cause of recessions from a macroeconomic
perspective? - Correct Answer Trend to forego capital investments and instead save cash"
"A plant has $1 in variable costs per unit produced, and units sell for $2 each. The plant has firm orders for 1,000,000 units and has $600,000 in overhead for the period. The gross profit margin for these units is thus $0.40 per unit. A special order request comes in and there is available capacity, but the price would be $1.50 per unit for 200,000 units. What would a marginal analysis suggest the organization do?
- Correct Answer Accept the offer and increase gross profits by $100,000." "Which project management Process Group is used to collect data, and which is used to interpret data? - Correct Answer Modular design"
"Which of the following is not a goal of design for manufacture and assembly (DFMA)? - Correct
Answer Designing components with very tight tolerances"
"Which of the following design strategies offers streamlined production and lower purchasing costs with
a possible tradeoff against reduced design flexibility and lower quality? - Correct Answer Component
commonality"
"What quality attribute of communications relates most to the need for efficiency? - Correct Answer
Quantity of data provided"
"What was Gap Inc. able to achieve with its supply chain strategy for its stores? - Correct Answer
Lower-scale economies for purchasing and production"
"The authors of a Harvard Business Review article think that an intense focus on glocalization will soon be coming to an end. Supporters of this perspective believe that multinational corporations (MNCs)
should instead be focusing their efforts on: - Correct Answer reverse innovation."
"A website that can interface with an enterprise resources planning (ERP) system to provide available-
to-promise (ATP) data to end customers is what type of e-commerce? - Correct Answer Sell-side"
"What can help define a project's scope more clearly and thus prevent stakeholders from adding
unapproved work (scope creep)? - Correct Answer Clearly state what will not be done."
"Which of the following could best help promote organizational adoption of new design and
development collaboration efforts? - Correct Answer Create simple graphics that make the goals easy
to understand at a glance." "In an organization that uses cross-functional teams for managing supply from its external resources, the
supply chain manager's role should involve: - Correct Answer educating functional team members on
cultural sensitivities." "The design and implementation of two-way communication between a business and its customers
describes which of the following components of a customer-driven marketing strategy? - Correct
Answer Placement"
"Which of the following is a main reason why portals in web-based warehouse management systems
(WMS) enhance visibility and control? - Correct Answer Users can either push data and inventory to
others or pull inventory and data to themselves."
"What should happen with a project management plan after it is completed and approved? - Correct
Answer Send updates to team members regularly using configuration management."
"A company executive tells an amusing story to the audience that helps make the organization's new
mission and vision memorable. What sort of communication is this? - Correct Answer Formal"
"Which of the following would not generally be considered a sufficient reason to upgrade from an
existing enterprise resources planning (ERP) system to a newer ERP system? - Correct Answer To
minimize metadata"
"All of the following are included in supply chain event management's active visibility except: - Correct
Answer multiple application workflow capability."
"Which of the following parts of a transportation management system (TMS) would a manager use to optimize and select carriers for the movement of a container from a container ship to a railcar and
finally to a truck? - Correct Answer Routing"
"Which project management Process Group is used to collect data, and which is used to interpret data?
- Correct Answer Executing is used to gather data; Monitoring and Controlling is used to interpret data." "What can help define a project's scope more clearly and thus prevent stakeholders from adding
unapproved work (scope creep)? - Correct Answer Clearly state what will not be done."
"Which of the following statements regarding technology audits is true? - Correct Answer Technology
audits are critical for determining the adequacy of financial reporting controls." "In an organization that uses cross-functional teams for managing supply from its external resources, the
supply chain manager's role should involve: - Correct Answer educating functional team members on
cultural sensitivities." "An organization's core competency is in the service component of a product-service package, and customers have praised their ability to quickly resolve problems. If most of these problems are product
quality issues, the best way to improve this supply chain would be to: - Correct Answer replace the
process value supply chain partners who have poor quality." ""A strategic decision, based on competition, perceived value, and brand identity." This describes which
component of a modern marketing strategy? - Correct Answer Price"
"When market research reveals that some customer segments desire certain features but other segments desire different features, an organization's primary criteria for deciding on features to include
are those that: - Correct Answer increase net profit margin."
"Which of the following could help limit the size of product recalls to goods produced just at a specific
factory between specific dates? - Correct Answer Proprietary bar codes"
"Which of the following statements about the elements of a marketing strategy is true? - Correct
Answer The starting point for product design is customer need."
"A razor blade manufacturer installs RFID in their promotional displays so they can monitor when these displays leave the back rooms of retail locations and when they are discarded. This is an example of
marketing control over which of the following? - Correct Answer Placement"
"What is the best definition of the phrase "contact channel strategy"? - Correct Answer Two-way
communication architecture between customers and businesses" "Maintaining a high level of customer care is critical to customer-driven brand image promotion
because: - Correct Answer the internet has given dissatisfied customers the means to make their
dissatisfaction quickly and widely known."
"In a customer-driven marketing strategy, which of the following must include getting information about
the product to the consumer and giving the consumer a sense of being listened to? - Correct Answer
Placement" "Which of the following is the primary demand generation task for a surgical device manufacturer
developing a new product to compete against an existing product? - Correct Answer Educating
doctors" "An investment in a warehouse will cost $1 million now and will provide $300,000 per year in increased profits for four years. What might make this investment seem less advantageous to a finance
professional? - Correct Answer Time value of money"
"In the customer-driven business model, strategic pricing: - Correct Answer must be continually
analyzed to ensure that it is attractive to customers but still profitable to the business." "An organization that has a famous brand of cookies is considering approaching a famous ice cream
company to co-produce a cookies and cream flavor. How best should this be positioned? - Correct
Answer The brands add value to each other."
"Creation of brand image is a concern related to: - Correct Answer promotion."
"A business finds that a dissatisfied customer has created a website on which the business and its
products are harshly criticized. This situation most likely represents a failure in: - Correct Answer
customer communication and care." "Which type of supply chain has a short product life cycle, unstable customer demand, and a high
number of forecasting errors? - Correct Answer Responsive"
"Which of the following should be the primary selection criterion when an enterprise buys new
technology? - Correct Answer Appropriateness to supply chain strategy"
"To better respond to unpredicted disruption, supply chains need to build in redundancy. This can be
accomplished by which of the following? - Correct Answer Establishing safety stock
Intentionally setting low capacity utilization rates Using multiple suppliers even when they're more expensive"
"Which of the following is sometimes overlooked when designing a supply chain? - Correct Answer
Reverse supply chain flow" "An organization wanting to create supply chain resilence is make-to-order and lean. How can it follow
these principles while becoming more resilient? - Correct Answer Develop response plans and
methods of detecting red flags that trigger those actions."
"At which of the following stages would a company be if it has multiple uncoordinated improvement efforts, such as inventory reduction, better forecasting techniques, and lower cost procurement,
occurring sequentially instead of in concurrence? - Correct Answer Stage 2: Semifunctional enterprise"
"Which of the following must champion the relationships to be formed across an extended supply
chain? - Correct Answer Nucleus firm"
"What are key qualities to look for in software for organizations wanting to remain at Stage 4 of supply
chain network technology optimization, the extended enterprise? - Correct Answer Adaptability and
scalability" "Which of the following activities should an organization perform for the extended supply chain prior to
integration of external supply chain partner policies, work processes, and tasks and roles? - Correct
Answer Business modeling, such as profit allocations"
"Which of the following is the next step in an intraenterprise strategy development process after the
first step of determining goals and the desired end state of the supply chain? - Correct Answer
Creating cross-functional and cross-business teams to guide the transformation" "Redundancies between members of an extended supply chain could be discovered through which of
the following processes? - Correct Answer Mapping the end-to-end supply chain processes"
"Which of the following are attributes of an efficient supply chain? - Correct Answer A. Infrequent
product introductions C. Stable customer demand"
"An efficiency-focused supply chain strives for which of the following? - Correct Answer Low
forecasting errors, limited product variety, and a long product life cycle" "Complete the following sentence with the best answer.
The network configuration of a supply chain: - Correct Answer should be designed to reflect trading
partners' capacities."
"Which of the following is another name for the "one size fits all" type of design? - Correct Answer
Standardization" "Both supply chain management and design for the environment have which of the following in their
focus? - Correct Answer Both focus on all phases of the product life cycle."
""Customer care should, at this stage, promote strong brand identity and development of lifetime
customers." This sentence best describes what phase of the product life cycle? - Correct Answer
Decline"
"Which of the following design strategies would most likely be responsible for the fact that only one screwdriver is needed to remove all the screws securing a computer case and to unfasten all
components from the motherboard inside? - Correct Answer Component commonality"
"Which of the following might participate on a team with design engineers in the process known as
concurrent engineering? - Correct Answer Manufacturing engineers
Market researchers Customer representatives"
"In postponement of product design, which is the supply chain strategy being used? - Correct Answer
Push-pull strategy"
"Inventory turnover is a metric for which of the following approaches to product design? - Correct
Answer Design for supply chain"
"A power supply that can be used with different end cables in countries with different electrical
infrastructures is an example of which of the following design strategies? - Correct Answer Modular
design" "An organization using mass customization has had complaints of defective products. The cause is a valve installed backward in final assembly at the distribution centers (DCs). Which of the following
would address the root cause of the problem? - Correct Answer Redesign the product so the valve can
be installed only one way." "If design for the environment results in a higher-cost refrigerator for the manufacturer, which of the
following could help sustain demand for this product? - Correct Answer Design the product to meet
energy efficiency tax rebate requirements." ""A period marked by high costs and low sales." This phrase best describes what phase of the product
life cycle? - Correct Answer Introduction"
"Which of the following statements about product design for service is true? - Correct Answer It may
compete with the design goal of minimizing development costs." "Reducing the number of steps in a service to just those specified by the most recent core customer segment survey and offering a few other steps as options exemplifies which of the following design strategies? Standardization Simplification Customization
Design for service - Correct Answer II and III"
"Which of the following is least likely to produce a positive effect on accountability for managers
involved in a manufacturing software improvement project? - Correct Answer Tying results to the
stock price of the firm"
"A local area network (LAN) exists at which of the following IT infrastructure levels? - Correct Answer
Network level" "Which supply chain participant would be in a position to improve the process value supply chain the
most? - Correct Answer Suppliers"
"Transportation management systems (TMS) include load tendering and delivery scheduling. These functions can automatically schedule shipments with carriers, provided the location has which of the
following? - Correct Answer Configuration for advance shipment notifications (ASNs)"
"Enterprise resources planning (ERP) systems can be considered as all of the following except: - Correct
Answer systems created by custom in-house development on a department-by-department basis."
"Which of the following systems can provide proactive tools such as automatic notification by portable
device when a party needs to act as well as a simple means of reversing prior operations decisions? -
Correct Answer Supply chain event management (SCEM)"
"Which of the following is a problem associated with having multiple versions/vendors of enterprise
resources planning (ERP) systems? - Correct Answer Multiple incompatible sources for the same data"
"Which of the following is true of a warehouse management system (WMS)? - Correct Answer WMS
portals allow data to be pushed to the user, or the user can initiate, or pull, the information transfer." "Older enterprise resources planning (ERP) systems typically can do all of the following without further
upgrades except: - Correct Answer increasing flexibility by allowing changes to their conceptual
models." "Which of the following is an advantage of using enterprise resources planning (ERP) vendor offerings
versus best-of-breed vendor offerings? - Correct Answer Leveraged ownership of enterprise data"
"For transportation management systems (TMS), which of the following would be the best choice to plan for shipment costs, fuel costs, road maps and routes, road conditions, weather conditions, and
carrier availability? - Correct Answer Web-based TMS services"
"Which of the following will add to the cost of a warehouse management system initially but almost
always costs less in the long run due to reduced error rates and more efficient processing? - Correct
Answer Automatic identification technologies and paperless processing"
"Which of the following can happen when you customize an enterprise resources planning (ERP)
system? - Correct Answer May unintentionally alter a different module"
"In a supply chain, distributors can refer customers to other distributors who have needed product on
hand. This best describes a: - Correct Answer distributor integration network."
"Choice of a warehouse management system (WMS) should hinge on which of the following areas? -
Correct Answer Directed picking, replenishment, and put-away"
"Which of the following should be avoided in an enterprise resources planning (ERP) initiative even if the
company has the capital to perform them all? - Correct Answer Customizing the ERP system to match
the company's best practices"
"Which of the following happens most often when an organization uses available-to-promise (ATP)? -
Correct Answer Goods that are still in the process of being assembled could be promised to a
customer."
"What is the most important benefit of supply chain event management (SCEM) software? - Correct
Answer Active visibility providing knowledge of existing problems"
"Which of the following modules of an advanced planning and scheduling (APS) system would allow an
organization to simulate in advance the effect on customer service of closing a plant? - Correct Answer
Requirements optimization"
"All of the following are required elements of a transportation management system except: - Correct
Answer distributed control over the planning of transportation."
"Which of the following should be integrated in a transportation management system (TMS) to increase
cost control, customer service, and automation? - Correct Answer Transportation planning and order
fulfillment" "Which of the following could best relieve some of the pressure from the bottlenecks that exist in
different parts of each of an organization's multiple production facilities? - Correct Answer Advanced
planning and scheduling (APS)"
"Which of the following is typically a function of a warehouse management system (WMS)? - Correct
Answer Creating put-away algorithms"
"Which of the following systems will automatically come up with an alternate plan based on defined
business workflow rules whenever the specific situation triggers alert resolution logic? - Correct
Answer Supply chain event management (SCEM)"
