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APICS CSCP Exam Practice Questions (P. 2)

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Question #11
Which of the following considerations is an important supply chain design decision?
  1. A
    Product design
  2. B
    Selecting supporting information systems
  3. C
    Identifying labor force requirements
  4. D
    Identifying training programs

Correct Answer:
B

Question #12
When designing a supply chain for strategic advantage, a company first should consider:
  1. A
    the impact on customers using Just-in-Time manufacturing.
  2. B
    the financial stability of suppliers.
  3. C
    matching the supply chain to product type.
  4. D
    whether to use custom or standard parts.

Correct Answer:
C

Question #13
Supply chains delivering products or services are most able to respond quickly to changing market requirements when:
  1. A
    products have been standardized.
  2. B
    products have a modular design.
  3. C
    production processes have been standardized.
  4. D
    production processes have been simplified.

Correct Answer:
B

Question #14
Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?
  1. A
    Inventory turnover ratio can be reduced.
  2. B
    Aggregate demand is more accurate than disaggregate demand.
  3. C
    The planning time fence can be adjusted as needed.
  4. D
    The supplier shares some risk for holding inventory.

Correct Answer:
B

Question #15
The purpose of continuous improvement in the supply chain is to:
  1. A
    eliminate the root causes of problems.
  2. B
    improve interorganizational communication.
  3. C
    develop better written procedures.
  4. D
    reduce product costs.

Correct Answer:
A

Question #16
After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?
  1. A
    Implement a higher-speed data communications network.
  2. B
    Change procedures so data is communicated more frequently.
  3. C
    Identify the root causes for the delays.
  4. D
    Map and analyze the value stream.

Correct Answer:
C

Question #17
Which of the following situations is an example of postponement?
  1. A
    Shipments are broken down into small groups for reshipment.
  2. B
    Shipments are consolidated immediately for reshipment.
  3. C
    Production begins after a customer order is received.
  4. D
    Partially assembled goods are assembled at a later stage.

Correct Answer:
D

Question #18
Which of the following situations is an example of inventory being held as a way to balance supply and demand?
  1. A
    A manufacturer holds inventory of key components to maintain a level production schedule.
  2. B
    A manufacturer of seasonal products builds finished-goods inventory before the peak selling period.
  3. C
    A distributor maintains safety stock of slow-moving items at a central distribution center.
  4. D
    A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.

Correct Answer:
B

Question #19
A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:
  1. A
    $29,000,000.
  2. B
    $15,750,000.
  3. C
    $10,500,000.
  4. D
    $ 5,250,000.

Correct Answer:
D

Question #20
Continuous improvement is best described as:
  1. A
    a never-ending effort to expose and eliminate root causes of problems.
  2. B
    a never-ending effort by the management team to reduce cycle time.
  3. C
    identifying and implementing big-step improvements within a process.
  4. D
    a process in which a supplier commits to replenishing inventory based on demand without receiving replenishment orders.

Correct Answer:
A

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