APIC CSCP MODULE 1 EXAM 2024 WITH 100% CORRECT ANSWERS

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" "A retailer decides to commission the creation of a line of shoes to sell as an accessory to designer evening gowns. Which of the following would be the most appropriate business strategy? - Correct Answer Collaborative design for a unique look" "Which of the following strategies represents the traditional "over the wall" approach to product design? - Correct Answer Supplier plays no role in design." "Proactively managing risk rather than being reactive provides which of these benefits to the organization? - Correct Answer Competitive advantage" "Which of the following statements about purchased customer data is true? - Correct Answer The data may be more useful for new customer acquisition." "Which two forces have the most significant impact in revolutionizing supply chain management? Increased project complexity and scope Market stabilization Global expansion Use of third-party logistics providers - Correct Answer I and III" "Dropping the price of a popular new technological gadget to match the price of a substitute product just coming out will likely have what effect? - Correct Answer Large increase in demand" "With a laterally integrated supply chain, an organization may: - Correct Answer make gains in scale and scope but lose its ability to see the larger processes." "In a service industry such as an electrical utility supply chain, which of the following is a Tier 1 supplier? - Correct Answer Facility maintenance" "The APICS Dictionary, 15th edition, refers to a supply chain as a "global network." Which of the following correctly indicates what could comprise this network? - Correct Answer Entities and processes (the engineered flow) of any size or configuration" "A company that has multiple disconnected legacy systems notes that a competitor is sharing real-time information and collaboration with first-tier suppliers and customers. The company wants to leap quickly forward to match or surpass the competitor's supply chain functionality. What stage can this firm achieve with a single upgrade project, assuming that they have enough capital to invest in the effort? - Correct Answer Semifunctional enterprise" "What lesson can be learned from studying a humanitarian and disaster relief supply chain? - Correct Answer When social and physical infrastructure breaks down, long-term relationships based on trust become invaluable." "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." "Which of the following is true about the supply chain adding value for customers and stakeholders? - Correct Answer From their perspective, it must increase the product's or service's utility." "Zenon International has an organizational strategy that specifies how it will function in its environment, how it will satisfy customers, how it will grow, how it will compete, and how it will achieve its financial objectives. According to the APICS definition of strategy, what elements are missing? - Correct Answer How it will manage the organization and develop business capabilities" "What does the term "flattening of the globe" refer to? - Correct Answer Shrinking of the world into one global economy" "What is an essential component of an organization's business model? - Correct Answer How it expects to make a profit based on its operations" "Which of the following business strategies is not typically compatible with a low-price strategy? - Correct Answer Niche marketing" "The widest demand variability in the bullwhip effect generally occurs at which of the following nodes? - Correct Answer Supplier" "Which of the following strategies guides the others into alignment? - Correct Answer Business strategy" "Which of the following actions would best aid a supply chain in becoming demand-driven? - Correct Answer eloping agility for more frequent changeovers or staffing or process switching" "In today's world, supply chains can be described as moving toward which characteristics? - Correct Answer Interdependence, collaboration, and playing a strategic role" "When setting supply chain strategy at a firm that isn't the nucleus firm, which of the following is the most important to focus on? - Correct Answer What's good for the final customer" "A sporting goods store sells some items at a low margin and steady demand (such as tennis balls), some items at a high margin and unpredictable demand (such as jogging outfits), and some items only during certain seasons (such as snowboarding equipment). Which of the following would provide the simplest and most effective supply chain solution for this company? - Correct Answer One supply chain for steady low-margin goods, one for unpredictable high-margin goods, and one for seasonal goods" "What is a key thing to understand about an organization's macro environment? - Correct Answer The macro environment cannot be controlled, only understood." "Which of the following describes mass marketing? - Correct Answer Organizations advertise based on the shared values of multiple segments." "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." "Which of the following is true of sustainable supply chain management? - Correct Answer It makes good business sense, because it is viewed favorably by market analysts." "You're the supply chain manager responsible for the overall performance of the chain. Which of the following is the most desirable? - Correct Answer Increased velocity, reduced variability, increased visibility" "Revenues, profit margin, market share, expenses, image, and reputation are values for which stakeholder group? - Correct Answer Firms in the supply chain" "Which supply chain strategy could provide the dual benefits of better sustainability and faster delivery to customers? - Correct Answer Locating final assembly closer to key customers" "Why should positive variances from standards be tracked by an organization? - Correct Answer They could show where someone was taking a dangerous shortcut." "A company wants to improve its customer service. Which of the following should it focus on to achieve that goal? - Correct Answer Availability" "A partnership in a supply chain is a relationship that must be based on: - Correct Answer trust, shared risks, and the rewards of achieving a competitive advantage." "You are the supply chain manager, and, based on recent research, you are anticipating changes in the market. Which of the following would be most important to develop? - Correct Answer Innovation" "Which of the following could be an example of ineffective cost cutting? - Correct Answer Eliminating one or more storage facilities to save warehousing costs without reviewing the impact on transportation costs" "You work in the supply chain as a finance manager, and your supervisor has told you that he wants you to become more familiar with spend management. This means that you will likely be spending more time: - Correct Answer focused on outsourcing processes." "Which of the following are usually components of the market plan? - Correct Answer Pro forma profit and loss (P&L) statement, management controls, and opportunity and issue analysis" "The value of inventory on the balance sheet is most often based on: - Correct Answer standard costs." "What is a drawback to using U.S. GAAP, which is country-specific, as opposed to using the International Financial Reporting Standards? - Correct Answer Organizations may find legal ways to be less transparent." "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" "A company wants to get each member of its extended supply chain to understand the benefits of collaborative lean manufacturing. Which of the following would provide this shared understanding? - Correct Answer Conceptual model" "Which of the following is true of data aggregation? - Correct Answer Data aggregation for customers can be by relatively equal demand, meaning that some zones will be larger than others." "Which of the following internet-enabled business models is most likely to get market investment? - Correct Answer Business models intending to use the internet as one of many sales channels and owning some of their own physical distribution means" "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." "Which of the following correctly indicates a feature of process-oriented middleware? - Correct Answer Does not require new code for each system to be integrated" "Which of the following is a primary goal of companies at higher stages of development regarding the acquisition and use of data? - Correct Answer Getting access to data outside the company" "Which is the most cost-effective example of Monitoring and Controlling in project management? - Correct Answer Performing process audits at the start of Executing" "Which of the following is true of radio frequency identification (RFID) and its associated EPCglobal Network? - Correct Answer Some RFID tags can be rewritten with new information and reused." "A trend in extending the design of products originally made for emerging economies for sales in developed economies is an example of which of the following? - Correct Answer Universality" "In the internet, the client of the client/server model is represented by: - Correct Answer a web browser." "Which of the following components of a customer-driven marketing strategy could be described as a variety of activities designed to position what the business is selling to the right people, at the right time, and in the right manner? - Correct Answer Promotion" "Which of the following is a major goal of service-oriented architecture (SOA)? - Correct Answer To separate applications from data so that applications have universal functionality" "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." "Which of the following cross-enterprise functional teams must be one of the first to be set up and must generate specific results before the other teams can proceed? - Correct Answer Technology team" "A supply chain manager plans to increase the number and geographic locations of warehouses. Which of the following changes would be the most likely overall benefit to the supply chain? - Correct Answer Reduction of delivery time to retail outlets" "A customer relationship management (CRM) program is which of the following? - Correct Answer Cyclical" "The tasks of a cross-organizational team involved in supply chain integration include which of the following? - Correct Answer Creating a plan for combining best practices across the network" "Which is the biggest impediment to reaching Stage 3 of supply chain network technology optimization, the integrated enterprise, for an organization that has held the majority of market share in its industry for many years but has slowly lost ground to high-quality foreign competition? - Correct Answer Company egocentrism" "Which of the following variables differentiates supply chains in terms of efficiency and responsiveness? - Correct Answer Demand uncertainty and volume" "When an enterprise buys new technology, which of the following selection criteria should be primary? - Correct Answer Appropriateness to supply chain strategy" "Which information technology steps can translate a policy for retailer-specific delayed packaging for generic products into a functioning practice? - Correct Answer Information infrastructure design" "In the ideal world of supply chain inventory, which of the following should never be at rest in a warehouse? - Correct Answer Raw materials" "Organizations that have high sales volume and serve markets with more volatile demand and uncertain forecasting tend to focus on what type of manufacturing strategy? - Correct Answer Assemble-to-order" "What are typically the main external ties for a company at Stage 2 of supply chain network technology optimization, the semifunctional enterprise? - Correct Answer Providers of functions that are not core capabilities for the organization" "Organizations that have low sales volume and serve markets with more volatile demand and uncertain forecasting tend to focus on what type of manufacturing strategy? - Correct Answer Make-to-order" "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" "An organization designs product documentation with large pictographs showing how to avoid common user errors that have previously resulted in customers believing that an otherwise good product is defective. This is an example of which of the following? - Correct Answer Design for service" "Which of the following design philosophies is most responsible for furniture that comes in kit form to be assembled by the retail customer at home? - Correct Answer Design for logistics" ""Customer interest is high, and supply must be managed to meet demand and avoid stockouts that could boost growing competition." This sentence best describes what phase of the product life cycle? - Correct Answer Growth" "Which of the following approaches to product design is compatible with the requirement that German brewers use refillable bottles? - Correct Answer Design for reverse logistics" "The sales department's involvement with product management includes which of the following phases of the product's life cycle? - Correct Answer All phases, from conception through withdrawal" "Which of the following is a likely outcome of asking suppliers to participate in an organization's product design effort? - Correct Answer The product quality could be improved without significantly increased costs." "Which of the following is a characteristic of design for remanufacturing? - Correct Answer A. Lower cost to customer B. Lower impact on the environment" "McDonald's, a global fast food chain, offers unique menus in different countries or regions that appeal to the tastes of local communities. This is an example of: - Correct Answer glocalization." "Which of the following describes human-friendly code that allows users without extensive training to perform custom database searches? - Correct Answer Structured query language (SQL)" "A benefit-cost analysis shows that an IT project costs $154,000 in the first year and $20,000 per year for the next three years. The direct cost savings are $40,000 per year for four years, and intangible cost savings are $30,000 per year for four years due to improved customer service and retention. Which of the following is a correct benefit-cost ratio? - Correct Answer 1.31" "Success in e-business is often difficult to achieve because both parties must have access to the same analysis of the same data but cannot get to this level of visibility without: - Correct Answer trust." "Information technology enables supply chain management by: - Correct Answer creating global visibility, so that even companies with no global operations must compete globally." "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)" "Which of the following software systems has the power to tie together supply chain partners? - Correct Answer Enterprise resources planning (ERP)" "A warehouse management system (WMS) should: - Correct Answer coordinate bulk discounts with maximum pallet capacities." "Which of the following is important in the selection of a decision support system (DSS)? - Correct Answer Transportation costs Inventory costs Changes in demand" "Which of the following analytical tools would be able to find hidden patterns in the data that are collected from each of a company's retail locations? - Correct Answer Data mining" "A relational database links tables: - Correct Answer that share a common data element." "Which of the following forms of interface devices would be best for a firm implementing an internal solution that can be directly extended to integrate external partners who resist standardizing? - Correct Answer Process-oriented middleware" "Which of the following can be used to immediately improve an organization's inventory accuracy even if it doesn't reduce lead times? - Correct Answer Real-time point-of-sale data updates in the enterprise resources planning (ERP) system" "Which of the following situations is the most critical to address in a transportation management system because it could result in workers and managers ceasing to trust in the integrity of the system? - Correct Answer Ten percent of shipped items have missing cube or weight data." "Which of the following is true of service-oriented architecture (SOA)? - Correct Answer Messages must be descriptive rather than prescriptive." "Which of the following is the primary limiter on the spread of radio frequency identification (RFID)? - Correct Answer Relatively high RFID tag prices" "Which of the following is true of radio frequency identification (RFID)? - Correct Answer Passive RFID tags do not contain their own power source." "You work in the information technology group supporting the supply chain. Which of the following would be one of your primary concerns regarding supply chain design while in that role? - Correct Answer Determining which data are not important and thus can be ignored" "Which of the following is true of electronic data interchange (EDI)? - Correct Answer EDI still often needs to be batch-processed." "A business gathers information from its accounts information system to identify those customers who have bought a large volume of items in an innovative product group. This is an example of: - Correct Answer data mining." "Does a standard UPC bar code contain lot and batch information? - Correct Answer No" "Which of the following allows developers to wrap otherwise incompatible electronic messages in a shell for universal message receipt? - Correct Answer Web services" "In an advanced supply chain, which of the following would be the best data for a buyer to send to a sheet metal producer? - Correct Answer Sheets of steel required for metal door construction company for the month" "Which of the following would be the least likely reason to implement radio frequency identification (RFID) at a company? - Correct Answer Increasing internal inventory accuracy in a make-to-order, low stock environment" "Which of the following is true of a manager's transportation execution decision support system (DSS)? - Correct Answer The transportation execution DSS uses simpler models than strategic or tactical DSS systems." "Which of the following is a primary method of ensuring data accuracy? - Correct Answer Automating and transferring real-time data only when feasible" "Which of the following is true of service-oriented architecture (SOA)? - Correct Answer It uses extensible, universally available, descriptive standards." "A ski resort wants to automatically detect when skiers have a lift ticket and when to offer a returning skier a loyalty discount. Which technology would meet these objectives with the least trouble for skiers? - Correct Answer RFID" "All of the following are prerequisites for companies wanting to invest in radio frequency identification (RFID) except: - Correct Answer very high inventory accuracy." "Which of the following forms of interface devices would be best for a small firm that wants to make a connection to a second small firm where both have highly customized software? - Correct Answer Custom linkage" "If supply chain partners agree to make information technology upgrades but a specific vendor cannot be agreed upon, which of the following standards could allow for both diversity and low-cost compatibility? - Correct Answer Web services and service-oriented architecture" "Which of the following is true of bar codes? - Correct Answer Bar codes are often integrated with RFID tags printed as a single label." "A company with multiple versions of the same enterprise resources planning (ERP) system and also a second ERP system due to a merger has experienced data quality and formatting problems, cannot leverage purchasing contracts effectively, and has no common metrics for management control purposes. Which of the following would be the best solution for this company's problems? - Correct Answer Don't replace any versions or vendors but use internet-based interface devices." "Assuming a set of normal business constraints such as a need to constrain costs and provide a positive return on investments, which data capture policy would best allow an organization to more quickly translate data into increased opportunities for profit? - Correct Answer Incrementally improving data capture rather than pursuing system reengineering" "A company that sells spare parts for cash registers has multiple inventory inaccuracies, multiple names for parts in their systems, and redundant products. Which of the following are the best first steps to help the company improve these issues? - Correct Answer Perform data cleansing and institute role-based access policies, procedures, and software limits for adding, deleting, and modifying information." "Which of the following will filter the output of an analysis into role-specific information so that a decision support system (DSS) can make sense of voluminous data? - Correct Answer Dashboard" "Which of the following is true of ISO standards for the EPC Gen 2 standard for radio frequency identification tags? - Correct Answer ISO 18000-6 covers the Gen 2 standard." "Which of the following types of automated identification and data capture (AIDC) systems could be used to read text on the side of a box as it moves on a conveyor belt? - Correct Answer Vision systems" "Which of the following is true regarding unauthorized persons creating counterfeit EPC Gen 2 RFID tags with a manufacturer's code and product SKUs (stock keeping units)? - Correct Answer Counterfeit tags can be made, but the EPCglobal Network's online registry will identify a mismatch and detect the fraud." "Each company in an extended supply chain has its own decision support system, each run separately using the same data. Often some firms end up with a surplus while others have shortages. Which of the following describes this supply chain's problem? - Correct Answer Suboptimization" "Which of the following characteristics belongs to the e-business supply chain rather than a traditional supply chain? - Correct Answer The same party can be buyer, supplier, rival, and trading partner." "E-business vision and strategy should: - Correct Answer be tightly integrated with and driven by a valid business strategy." "A study indicates that a company's e-business area that needs the most development is portals to provide manual and automated search features by user role as well as broker intermediaries to form a larger community of users. In which of the following layers of e-business are these changes located? - Correct Answer Aggregation" "Which of the following is not true of e-business strategy? - Correct Answer A well-designed e-business strategy should be able to bring a company directly from Stage 2 to Stage 4 of supply chain development." "Which of the following will be most likely to promote success in a company opening an online store in addition to its retail locations? - Correct Answer Advertise that online products can be returned at the stores." "What sort of technology will enable even a smaller firm with great brand equity to become the channel master? - Correct Answer Internet-enabled supply chain with an efficient technology model" "Which of the following creates online catalogs with metadata to automate how content is presented so parties see only items specific to their strategic needs, restrictions, and perspective? - Correct Answer Content management e-commerce" "Collecting information through surveys, games, or prizes is an example of which of the following? - Correct Answer Business-to-consumer (B2C)" "What should a project manager do if a project near completion is indefinitely postponed? - Correct Answer Officially close the project and release the team." "A project manager is working sequentially on the plans for each project management Knowledge Area. What should he do after the scope, time, cost, quality, human resources, and other Knowledge Area plans have each received a once-through? - Correct Answer Complete the schedule and budget to reflect the impact of the later Knowledge Area plans." "When communicating with stakeholders, what can be both an asset and a liability and so needs to be directed toward a predefined purpose before being used? - Correct Answer Abundance of data" "Why is it important to study enterprise environmental factors at the start of a project? - Correct Answer External events may make the project infeasible at this time." "What can get in the way of a message being received or properly understood by the intended recipient? - Correct Answer Filters or noise" "Which part of a sender-receiver communication indicates that a message was received but doesn't necessarily mean that it was understood? - Correct Answer Acknowledge" "A superior assigns you as a project manager. She tells you to staff a team and start planning right away even though the project charter has not yet been signed. What should you do? - Correct Answer State that the charter needs to be signed before you can start." "What is a risk of having too many communication channels open on a project with many stakeholders? - Correct Answer There is a higher risk of missed or erroneous communications." "What can you learn from watching a person's face for nonverbal cues as you are conveying important information? - Correct Answer Does the person understand and agree or disagree?" "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%" "An organization's senior leadership has asked each department head to formally sign off on an official date for several retail store openings. All department heads have signed off, even though some know that everything would need to work perfectly to make that date and that there are some major cultural issues in the way at some locations. What does this organization need to do to get this critical information to decision makers? - Correct Answer Design a way for people to provide anonymous information on strategic gaps." "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." "Dropping the price of a popular new technological gadget to match the price of a substitute product just coming out will likely have what effect? - Correct Answer Large increase in demand" "Which two forces have the most significant impact in revolutionizing supply chain management? I. Increased project complexity and scope II. Market stabilizati