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APICS CSCP : Practice Test

Topic break down
Topic
No. of Questions
Topic 1: Fundamentals of Supply Chain 76

Management
Topic 2: Supply Chain Strategy, Design, 73
and Compliance
Topic 3: Implementation and
74
Operations
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Topic 1, Fundamentals of Supply Chain Management
Question No : 1 - (Topic 1)
The factors to consider in the make-or-buy decision include costs, proprietary knowledge,
and:
A. design history.
B. available capacity.
C. inventory balance.
D. warehouse location.
Answer: B
Which of the following is the most important result when a company implements customer
relationship management?
A. Profits are maximized.

B. Retention of key customers is increased.
C. Product options are increased.
D. Transaction costs are decreased.
Answer: B
Which of the following corporate strategies is most consistent with a flexible supply chain
strategy?
A. Being the low-price leader

B. Providing the highest-quality service
C. Providing mature products with stable sales
D. Emphasizing the quality of the product
Answer: B

The process of gathering data about what customers need and ensuring that desired
features are included in the design and initial planning phase of a new product or service is
known as:
A. a quick response program.

B. quality function deployment.
C. total quality management.
D. early supplier involvement.
Answer: B
A firm has identified groups of customers based on specific characteristics the customers
desire from products and services the firm can provide. Characteristics include lead times,
pricing tiers, and service levels. The firm is engaged in which of the following activities?
A. Customer differentiation
B. Order winner segregation
C. Market segmentation
D. Channel definition
Answer: C
Which of the following factors typically is the most significant impediment to implementing
collaborative commerce?
A. Technology barriers
B. Security
C. Corporate culture
D. Return on investment (ROI)
Answer: C

The primary objective of supply chain management is:
A. minimizing transportation costs.

B. reducing inventory levels.
C. taking a systems approach.
D. implementing advanced technologies.
Answer: C
Which of the following consequences is a result of shipping directly from the point of
manufacture to the customer rather than through a distribution network?
A. Delivery lead times are consistent.

B. Risk pooling benefits are negated.
C. Distribution overhead is increased.
D. Order-fill rate is decreased.
Answer: B
The use of a seasonal index as a forecasting technique measures the ratio of the:
A. average seasonal demand to the average demand for all periods.

B. average demand for all periods to the average seasonal demand.
C. average seasonal demand to the standard deviation of the demand for all periods.
D. standard deviation of the seasonal demand to the standard deviation of demand for all
periods.
Answer: A

A main benefit of using customer relationship management (CRM) is:
A. maximization of on-time delivery.

B. minimization of product returns.
C. identification of customers with high lifetime value.
D. finding new markets for existing products and services.
Answer: C
Which of the following practices has improved management of the customer pipeline?
A. Reverse auctions
B. Sales force automation
C. Finite capacity planning
D. Point-of-purchase metrics
Answer: B
The primary reason for a firm to pursue strategic supply chain activities is to:
A. gain competitive advantage.

B. reduce costs.
C. increase productivity.
D. decrease product lead time.
Answer: A
Reverse supply chain activity typically peaks nearest the beginning of which of the
following stages of the product life cycle?
A. Introduction

B. Growth
C. Maturity
D. Decline
Answer: D
Incorporating supplier input into product and process design helps to:
A. maintain quality.
B. stabilize product costs.
C. reduce time to market.
D. save costs to the buyer.
Answer: C
In addition to sales history, current customer orders, and forecasted demand, which of the
following data sources should be used as part of a demand management process?
A. Inventory levels
B. Contractual obligations
C. Customer profitability
D. Scheduled marketing activities
Answer: D
A companys decision to charge different prices for the same service sold in different
market segments is most likely based on which of the following metrics?
A. Internal rate of return (IRR)

B. Lifetime customer value (LCV)
C. Net present value (NPV)

D. Return on investment (ROI)
Answer: B
What is the primary role of marketing in supporting supply chain management?
A. Selecting favored supplier partners

B. Developing efficient customer channels
C. Focusing on short-term forecasting accuracy
D. Working with research and development on slow-moving products
Answer: B
A firm supplies products and services to a wide variety of industries with varying
requirements for responsiveness and reliability. Many customers across these industries
are not satisfied with the firms ability to meet the lead time and on time delivery
requirements. Which of the following tools is most appropriate for the firm to use to improve
customer service?
A. Customer service ratio metrics

B. Market segmentation
C. Customer relationship management (CRM)
D. Supply Chain Operations Reference (SCOR)
Answer: B
A media company offers a majority of its movies through a specific distributor. The media
company is beginning to produce content for a new foreign market to which the distributor
has exclusive access. To maximize savings and gain entry to this new market, the media
company should:

A. create a contract for the new market.
B. enter into a partnership.
C. form a strategic alliance.
D. acquire the distributor.
Answer: C
Maintaining a long-term collaborative relationship with a trading partner requires:
A. formal and informal communication.

B. interconnected information systems.
C. one partner regularly exercising power.
D. standardized terms of agreement.
Answer: A
Which of the following situations is an example of postponement?
A. Shipments are broken down into small groups for reshipment.

B. Shipments are consolidated immediately for reshipment.
C. Production begins after a customer order is received.
D. Partially assembled goods are assembled at a later stage.
Answer: D
Which of the following marketing strategies emphasizes offering services at a lower price
than rival services with comparable features?
A. Cost leadership
B. Service differentiation
C. Customer focus

D. Market responsiveness
Answer: A
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?
A. Implement a higher-speed data communications network.

B. Change procedures so data is communicated more frequently.
C. Identify the root causes for the delays.
D. Map and analyze the value stream.
Answer: C
When designing a supply chain for strategic advantage, a company first should consider:
A. the impact on customers using Just-in-Time manufacturing.

B. the financial stability of suppliers.
C. matching the supply chain to product type.
D. whether to use custom or standard parts.
Answer: C
A large manufacturer wanting to be more competitive in the global market place decided to
outsource its transportation and return processing to other companies on a contractual
basis. The companies providing the services would be referred to as:
A. fourth party logistics providers.

B. third party logistics providers.
C. retail services providers.
D. distribution services providers.
10

Answer: B
Medium-term demand management projections are used primarily to:
A. complete strategic business planning of facilities.

B. complete forecasts at the item level.
C. aggregate demand for production planning.
D. develop the master production schedule.
Answer: C
A remanufacturer of equipment is most likely to have what type of supply chain?
A. Modular logistics
B. Reverse logistics
C. Mixed model
D. Lateral
Answer: B
The probability of customer dissatisfaction is highest when which of the following conditions
exists?
A. Customer expectations are clearly defined.

B. Supplier execution is too low.
C. There is a gap between expected performance and perceived performance.
D. There is a gap between what was indicated and what was accomplished.
Answer: C
11
A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of
its trucks and now purchases transportation services from fleet operators. This is an
example of which of the following strategies?
A. Selling and leasing back equipment.

B. Renting equipment on consignment.
C. Using a third-party logistics provider.
D. Using an owner-operator fleet.
Answer: C
A firm supplies a single line of products to consumers using retail stores and on-line sales,
distributors, and wholesalers. Currently the firm has common pricing and response times
for sales in each sales channel. Which of the following tools is most appropriate to employ
to improve profitability?
A. Customer segmentation
B. Customer-facing ordering systems
C. Customer relationship management (CRM)
D. Supply Chain Operations Reference (SCOR)
Answer: A
Which of the following levels in a supply chain network represents the most upstream
external activity?
A. Supplier to contractor
B. Manufacturing to supplier
C. Customer to distribution
D. Customer to contractor
12

Answer: A
Which of the following results can be expected from sharing a common understanding of
demand and consumption patterns among supply chain participants?
A. Improved transparency of collaboration relationships

B. Increased performance in balanced scorecard
C. Reduced inventory levels for key items
D. Better synchronization of planning and operations
Answer: D
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:
A. $29,000,000.
B. $15,750,000.
C. $10,500,000.
D. $ 5,250,000.
Answer: D
Demand management involves which of the following undertakings?
A. Adjusting capacity to support expected demand

B. Engaging in activities associated with customer relationship management
C. Creating higher customer demand by improving performance in areas such as lead time
and service levels
D. Understanding events and managing activities that could influence future demand
13

Answer: D
Compared to mass-media marketing, customer relationship management has the
advantage of allowing the organization to:
A. compete for customers based on service.

B. reach a larger number of potential customers.
C. reduce inventory to improve cash flow.
D. focus on attracting new customers.
Answer: A
The question below is based on the following flowchart:
Which of the following phrases most accurately describes the complete flow of demand
information?
A. From supplier to customer

B. From customer to manufacturer
C. From customer to supplier
D. From supplier to manufacturer
14

Answer: C
An advantage of using a third-party logistics service (3PL) is improved:
A. on-time delivery of shipments due to higher inventory levels.

B. cost structure due to economies of scale.
C. access to smaller markets due to localization.
D. risk visibility due to inventory consolidation.
Answer: B
A manufacturer uses standard costing, and a potential supplier uses activity-based costing.
This difference most likely will have implications for which of the following types of future
decisions?
A. Price concessions
B. Make-or-buy
C. Distribution warehouse locations
D. Freight terms
Answer: B
Which of the following considerations is an important supply chain design decision?
A. Product design
B. Selecting supporting information systems
C. Identifying labor force requirements
D. Identifying training programs
Answer: B
15

A company considers outsourcing its information technology support to a low-cost region
on another continent. The company currently has no business presence there. Which of the
following actions is most effective in helping to select a service provider?
A. Contacting the country's consulate for leads

B. Contacting the country's local government for recommendations
C. Visiting several potential providers before making a selection
D. Finding a trusted local business agent to help in the search
Answer: D
Compared to a blanket purchase order, a supplier alliance agreement is best differentiated
by:
A. efficient material replenishment processes.

B. clearly identified roles for the buyer and seller.
C. a shared vision of added value.
D. a sole-source agreement.
Answer: C
Using an independent service provider for logistics would be most appropriate in which of
the following situations?
A. A shoe company that wants to penetrate a foreign market

B. A business that owns plants and warehouses globally
C. A financial services company that wants to expand its services
D. A cable television company that wants to add services
Answer: A
16

A company plans to maximize profitability by charging more for its products at retail
locations than on its website. Which of the following segmentation strategies would best
support this plan?
A. Group
B. Channel
C. Regional
D. Location
Answer: B
Which of the following scenarios represents a correct application of the Supply-Chain
Operations Reference-model (SCOR)?
A. Sales and marketing refers to SCOR to improve demand generation.

B. Production and engineering uses SCOR best practices to design a new "make" process
flow.
C. Distribution and logistics selects suppliers from the SCOR reference list.
D. Marketing and development incorporates SCOR Level I metrics for new product design.
Answer: B
A firm wants to lose customers that don't value the unique products and services the firm
offers and to attract and retain customers that want what the firm offers. Engaging in this
activity should allow the firm to:
A. create a more loyal customer base.

B. improve customer satisfaction rates.
C. increase market share.
D. target higher-profit customers.
Answer: A
17

A company has been delivering a global product that no longer appears profitable. Senior
managements best response is to:
A. analyze product profitability by market segment.

B. discontinue the product based on eroding profitability.
C. provide additional incentives to the sales force.
D. increase promotional activity across all markets.
Answer: A
Which of the following actions typically would be the first step in implementing the
philosophy of customer relationship management?
A. Creating a customer-centric organization

B. Developing a map of the customer segments
C. Documenting the objectives for implementation
D. Selecting an information technology solution
Answer: A
Which of the following benefits of supplier relationship management typically results from
collaboration with a few critical suppliers?
A. Automation of supplier sales activities

B. Elimination of formal contracts
C. Reduction in customer and supplier inventories
D. Standardization of communications
Answer: C
Which of the following types of information would be an appropriate basis for a qualitative
18

forecast?
A. Leading indicators
B. Market research data
C. Order history
D. Shipment history
Answer: B
Which of the following indicators is most appropriate to use as a measure of supply chain
utilization?
A. Production equipment productivity

B. Net asset turnover
C. Value-added productivity per employee
D. Upside flexibility
Answer: B
Which of the following attributes typically makes reverse logistics processes more
complicated than outbound logistics processes?
A. Lead times for shipments are more variable.

B. Individual packages and cartons are less uniform.
C. There are more regulations mandated by local governments.
D. There is more competition for scarce transportation lanes.
Answer: B
Continuous improvement is best described as:
19

A. a never-ending effort to expose and eliminate root causes of problems.
B. a never-ending effort by the management team to reduce cycle time.
C. identifying and implementing big-step improvements within a process.
D. a process in which a supplier commits to replenishing inventory based on demand
without receiving replenishment orders.
Answer: A
Which of the following situations is an example of inventory being held as a way to balance
supply and demand?
A. A manufacturer holds inventory of key components to maintain a level production

schedule.
B. A manufacturer of seasonal products builds finished-goods inventory before the peak
selling period.
C. A distributor maintains safety stock of slow-moving items at a central distribution center.
D. A retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.
Answer: B
Which of the following customer relationship management activities most appropriately is
used for revenue generation?
A. Generating customer leads

B. Generating graphic sales models
C. Measuring customer preferences
D. Identifying customer margins
Answer: A
The most likely benefit of implementing a collaborative transportation management system
is:
20

A. lower distribution center operating costs.
B. fewer transportation planners.
C. less variability in picking and packing time.
D. less variability in transportation costs.
Answer: D
The primary reason for the evolution of the supply chain is:
A. fewer rejects due to poor quality.

B. increased on-time delivery.
C. increased cost savings.
D. increased communication.
Answer: D
The focus of collaborative supply chain management differs from a transactional approach
by its emphasis on the:
A. transportation of goods to the next link in the chain.

B. flow of product information up to the next level of the chain.
C. flow of demand information and cash up the chain.
D. flow of supply into an organization.
Answer: C
Which of the following organizational design choices is an example of vertical integration?
A. Contracting with a third-party logistics provider

B. Producing components used internally
C. Externally staffing a customer service center
21

D. Awarding a one-time trade show contract
Answer: B
A manufacturer of plastic components that are sold either directly or through distributors
wants to identify the requirements of the end customers for each market segment. Which of
the following approaches would be most appropriate?
A. Analyzing the buying history for each of the market segments

B. Asking the manufacturer's direct customers
C. Conducting a market research project
D. Sending samples of potential future products to the final customers
Answer: C
Which of the following scenarios represents a correct application of the Supply-Chain
Operations Reference-model (SCOR)?
A. Sales and marketing refers to SCOR to improve demand generation.

B. Production and engineering uses SCOR best practices to design a new "make" process
flow.
C. Distribution and logistics selects suppliers from the SCOR reference list.
D. Marketing and development incorporates SCOR Level I metrics for new product design.
Answer: B
Keeping all other factors equal, a company typically will try to maintain higher service levels
for products with:
A. wider variety.
B. shorter lead time.
22

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Looking for Real Exam Questions for IT Certification Exams!

For pricing and placing order, please visit http://certificationking.com/order.html

APICS CSCP : Practice Test

Topic 1: Fundamentals of Supply Chain 76

APICS CSCP : Practice Test

A. Profits are maximized.

A. Being the low-price leader

APICS CSCP : Practice Test

A. a quick response program.

APICS CSCP : Practice Test

A. minimizing transportation costs.

A. Delivery lead times are consistent.

A. average seasonal demand to the average demand for all periods.

APICS CSCP : Practice Test

A. maximization of on-time delivery.

A. gain competitive advantage.

APICS CSCP : Practice Test

A. Internal rate of return (IRR)

APICS CSCP : Practice Test

A. Selecting favored supplier partners

A. Customer service ratio metrics

APICS CSCP : Practice Test

A. formal and informal communication.

A. Shipments are broken down into small groups for reshipment.

APICS CSCP : Practice Test

A. Implement a higher-speed data communications network.

A. the impact on customers using Just-in-Time manufacturing.

A. fourth party logistics providers.

APICS CSCP : Practice Test

A. complete strategic business planning of facilities.

A. Customer expectations are clearly defined.

APICS CSCP : Practice Test

A. Selling and leasing back equipment.

APICS CSCP : Practice Test

A. Improved transparency of collaboration relationships

A. Adjusting capacity to support expected demand

APICS CSCP : Practice Test

A. compete for customers based on service.

A. From supplier to customer

APICS CSCP : Practice Test

A. on-time delivery of shipments due to higher inventory levels.

APICS CSCP : Practice Test

A. Contacting the country's consulate for leads

A. efficient material replenishment processes.

A. A shoe company that wants to penetrate a foreign market

APICS CSCP : Practice Test

A. Sales and marketing refers to SCOR to improve demand generation.

A. create a more loyal customer base.

APICS CSCP : Practice Test

A. analyze product profitability by market segment.

A. Creating a customer-centric organization

A. Automation of supplier sales activities

APICS CSCP : Practice Test

A. Production equipment productivity

A. Lead times for shipments are more variable.

APICS CSCP : Practice Test

A. A manufacturer holds inventory of key components to maintain a level production

A. Generating customer leads

APICS CSCP : Practice Test

A. fewer rejects due to poor quality.

A. transportation of goods to the next link in the chain.

A. Contracting with a third-party logistics provider

APICS CSCP : Practice Test