KEY TERMS CSCP EXAM QUESTIONS &
ELABORATED COMPLETE SOLUTIONS
ALL PASSED 100%
advanced planning and scheduling (APS)
Techniques that deal with analysis and planning of logistics and manufacturing during short,
intermediate, and long-term time periods.
This] describes any computer program that uses advanced mathematical algorithms or logic to
perform optimization or simulation on finite capacity scheduling, sourcing, capital planning,
resource planning, forecasting, demand management, and others.
These techniques simultaneously consider a range of constraints and business rules to provide
real-time planning and scheduling, decision support, available-to-promise, and capable-to-
promise capabilities.
[This] often generates and evaluates multiple scenarios. Management then selects one scenario
to use as the "official plan."
The five main components of [these] systems are (1) demand planning, (2) production
planning, (3) production scheduling, (4) distribution planning, and (5) transportation planning
alliance development
Strengthening the capabilities of a key supplier.
anticipation inventories
Additional inventory above basic pipeline stock to cover projected trends of increasing sales,
planned sales promotion programs, seasonal fluctuations, plant shutdowns, and vacations.
assemble-to-order
This strategy is useful where a large number of end products (based on the selection of options
and accessories) can be assembled from common components.
automatic identification and data capture (AIDC)
A set of technologies that collect data about objects and then send these data to a computer
without human intervention. Examples include radio frequency wireless devices and terminals,
bar code scanners, and smart cards.
,automatic identification system (AIS)
A system that can use various means, including bar code scanning and radio frequencies, to
sense and load data in a computer.
balanced scorecard
A list of financial and operational measurements used to evaluate organizational or supply chain
performance.
The dimensions of [this] might include customer perspective, business process perspective,
financial perspective, and innovation and learning perspectives. It formally connects overall
objectives, strategies, and measurements. Each dimension has goals and measurements.
business intelligence
Information collected by an organization on customers, competitors, products or services, and
processes.
[It] provides organizational data in such a way that the organizational knowledge filters can
easily associate with this data and turn it into information for the organization. Persons involved
in [these kind of] processes may use application software and other technologies to gather,
store, analyze, and provide access to data, and to present that data in a simple, useful manner.
The software aids in business performance management and aims to help consumers make
better business decisions by offering them accurate, current, and relevant information. Some
businesses use data warehouses because they are a logical collection of information gathered
from various operational databases for the purpose of creating [this].
business process management (BPM)
A business discipline or function that uses business practices, techniques, and methods to
create and improve business processes.
[A] holistic approach to the use of appropriate process-related business disciplines to gain
business performance improvements across the enterprise or supply chain. It promotes
business effectiveness and efficiency while striving for innovation, flexibility, and integration
with technology. Most process improvement disciplines or activities can be considered [this].
collaborative planning, forecasting, and replenishment (CPFR)
1) A collaboration process whereby supply chain trading partners can jointly plan key supply
chain activities from production and delivery of raw materials to production and delivery of final
products to end customers. Collaboration encompasses business planning, sales forecasting,
and all operations required to replenish raw materials and finished goods.
, 2) A process philosophy for facilitating collaborative communications. [It] is considered a
standard, and is endorsed by the Voluntary Interindustry Commerce Standards. Syn:
collaborative planning.
consortia trade exchanges (CTX)
An online marketplace, usually owned by a third party, that allows members to trade with each
other. This site lowers members search costs and enables lower prices for the
buyer.
continuous replenishment
A process by which a supplier is notified daily of actual sales or warehouse shipments and
commits to replenishing these sales (for example, by size or color) without stockouts and
without receiving replenishment orders. The result is a lowering of associated costs and an
improvement in inventory turnover.
Quality Costs
The overall costs associated with prevention activities and the improvement of quality
throughout the firm before, during, and after production of a product. These costs fall into four
recognized categories: internal failure costs, external failure costs, appraisal costs, and
prevention costs. Internal failure costs relate to problems before the product reaches the
customer. These usually include rework, scrap, downgrades, reinspection, retest, and process
losses. External failure costs relate to problems found after the product reaches the customer.
These usually include such costs as warranty and returns. Appraisal costs are associated with
the formal evaluation and audit of quality in the firm. Typical costs include inspection, quality
audits, testing, calibration, and checking time. Prevention costs are those caused by
improvement activities that focus on reducing failure and appraisal costs. Typical costs include
education, quality training, and supplier certification. See: cost of poor quality.
customer relationship management (CRM)
A marketing philosophy based on putting the customer first. Involves the collection and analysis
of information designed for sales and marketing decision support (in contrast to enterprise
resources planning information) to understand and support existing and potential customer
needs. Includes account management, catalog and order entry, payment processing, credits and
adjustments, and other functions. Syn: customer relations management.
define, measure, analyze, improve, control (DMAIC) process
A six sigma improvement process composed of five stages:
(1) Determine the nature of the problem.
ELABORATED COMPLETE SOLUTIONS
ALL PASSED 100%
advanced planning and scheduling (APS)
Techniques that deal with analysis and planning of logistics and manufacturing during short,
intermediate, and long-term time periods.
This] describes any computer program that uses advanced mathematical algorithms or logic to
perform optimization or simulation on finite capacity scheduling, sourcing, capital planning,
resource planning, forecasting, demand management, and others.
These techniques simultaneously consider a range of constraints and business rules to provide
real-time planning and scheduling, decision support, available-to-promise, and capable-to-
promise capabilities.
[This] often generates and evaluates multiple scenarios. Management then selects one scenario
to use as the "official plan."
The five main components of [these] systems are (1) demand planning, (2) production
planning, (3) production scheduling, (4) distribution planning, and (5) transportation planning
alliance development
Strengthening the capabilities of a key supplier.
anticipation inventories
Additional inventory above basic pipeline stock to cover projected trends of increasing sales,
planned sales promotion programs, seasonal fluctuations, plant shutdowns, and vacations.
assemble-to-order
This strategy is useful where a large number of end products (based on the selection of options
and accessories) can be assembled from common components.
automatic identification and data capture (AIDC)
A set of technologies that collect data about objects and then send these data to a computer
without human intervention. Examples include radio frequency wireless devices and terminals,
bar code scanners, and smart cards.
,automatic identification system (AIS)
A system that can use various means, including bar code scanning and radio frequencies, to
sense and load data in a computer.
balanced scorecard
A list of financial and operational measurements used to evaluate organizational or supply chain
performance.
The dimensions of [this] might include customer perspective, business process perspective,
financial perspective, and innovation and learning perspectives. It formally connects overall
objectives, strategies, and measurements. Each dimension has goals and measurements.
business intelligence
Information collected by an organization on customers, competitors, products or services, and
processes.
[It] provides organizational data in such a way that the organizational knowledge filters can
easily associate with this data and turn it into information for the organization. Persons involved
in [these kind of] processes may use application software and other technologies to gather,
store, analyze, and provide access to data, and to present that data in a simple, useful manner.
The software aids in business performance management and aims to help consumers make
better business decisions by offering them accurate, current, and relevant information. Some
businesses use data warehouses because they are a logical collection of information gathered
from various operational databases for the purpose of creating [this].
business process management (BPM)
A business discipline or function that uses business practices, techniques, and methods to
create and improve business processes.
[A] holistic approach to the use of appropriate process-related business disciplines to gain
business performance improvements across the enterprise or supply chain. It promotes
business effectiveness and efficiency while striving for innovation, flexibility, and integration
with technology. Most process improvement disciplines or activities can be considered [this].
collaborative planning, forecasting, and replenishment (CPFR)
1) A collaboration process whereby supply chain trading partners can jointly plan key supply
chain activities from production and delivery of raw materials to production and delivery of final
products to end customers. Collaboration encompasses business planning, sales forecasting,
and all operations required to replenish raw materials and finished goods.
, 2) A process philosophy for facilitating collaborative communications. [It] is considered a
standard, and is endorsed by the Voluntary Interindustry Commerce Standards. Syn:
collaborative planning.
consortia trade exchanges (CTX)
An online marketplace, usually owned by a third party, that allows members to trade with each
other. This site lowers members search costs and enables lower prices for the
buyer.
continuous replenishment
A process by which a supplier is notified daily of actual sales or warehouse shipments and
commits to replenishing these sales (for example, by size or color) without stockouts and
without receiving replenishment orders. The result is a lowering of associated costs and an
improvement in inventory turnover.
Quality Costs
The overall costs associated with prevention activities and the improvement of quality
throughout the firm before, during, and after production of a product. These costs fall into four
recognized categories: internal failure costs, external failure costs, appraisal costs, and
prevention costs. Internal failure costs relate to problems before the product reaches the
customer. These usually include rework, scrap, downgrades, reinspection, retest, and process
losses. External failure costs relate to problems found after the product reaches the customer.
These usually include such costs as warranty and returns. Appraisal costs are associated with
the formal evaluation and audit of quality in the firm. Typical costs include inspection, quality
audits, testing, calibration, and checking time. Prevention costs are those caused by
improvement activities that focus on reducing failure and appraisal costs. Typical costs include
education, quality training, and supplier certification. See: cost of poor quality.
customer relationship management (CRM)
A marketing philosophy based on putting the customer first. Involves the collection and analysis
of information designed for sales and marketing decision support (in contrast to enterprise
resources planning information) to understand and support existing and potential customer
needs. Includes account management, catalog and order entry, payment processing, credits and
adjustments, and other functions. Syn: customer relations management.
define, measure, analyze, improve, control (DMAIC) process
A six sigma improvement process composed of five stages:
(1) Determine the nature of the problem.
