APICS CSCP Exam Prep Set Questions and
Answers -Graded A.
If a company reports a problem with its supply chain and pinpoints blame, which of the
following groups,
if blamed, will most likely result in the stock price being most punished by the market? -
Correct answer-Customers
A significant impact on the supply chain can be made by all of the following stake holders
EXCEPT: - Correct answer-consumers
Which of the following relationships has the maximum degree of independence of
ownership
and the minimum degree of integration? - Correct answer-ad hoc trading
Attempts to replace competition between trading partners with cooperation most often
results
in which of the following? - Correct answer-failure
All of the following flow through the reverse supply chain EXCEPT: - Correct answer-
remanufactured goods
What organization developed the Supply-Chain Operations Reference
(SCOR) model? - Correct answer-Supply Chain Council
Who controls the inventory via consignment? - Correct answer-retailers
What is the proper order of activities when managing a supply chain? - Correct answer-
understand, predict, then control
Definition: Variable quantities at fixed intervals - Correct answer-periodic review policy
All of the following are characteristics of functional products EXCEPT: - Correct answer-
end-of-season markdowns
,There has been a systematic effort within many industries to replace inventory with
________________? - Correct answer-information
What policy seems to have the greatest safety stock? - Correct answer-periodic review
policy
What is the general effect on the total time to source of adding tiers to the procurement
side of
the supply chain? - Correct answer-increases
What is missing from the economic order quantity formula? - Correct answer-demand per
period
Information concerning supply is conveyed through all of the following EXCEPT: - Correct
answer-advanced shipping notice
Which production strategy has the push-pull boundary before product design? - Correct
answer-engineer-to-order
Which production strategy has the push-pull boundary between product design and
purchasing
of raw materials? - Correct answer-made-to-order
Which production strategy has the greatest amount of pull associated with it? - Correct
answer-engineer-to-order
All of the following are reasons why inventory is subject to shrinkage EXCEPT: - Correct
answer-rework
Which production strategy relies most heavily on demand forecasts? - Correct answer-
make-to-stock
What action has members of supply chains historically taken to protect themselves
against variability in
supply and demand? - Correct answer-holding inventory
,All of the following are components of ordering cost EXCEPT: - Correct answer-taxes and
insurance
What technology that embeds tags in data to identify each element of the
data and give it meaning? - Correct answer-XML
What action has typically been taken over the last decade or so by members of supply
chains to decrease
variability in supply and demand? - Correct answer-shortening lead times
All of the following are components of holding cost EXCEPT: - Correct answer-clerical
work of receiving orders
What is a recurring theme for well run supply chains? - Correct answer-cross-functional
teams
What initiative has members of supply chains taken recently to decrease variability in
supply and demand? - Correct answer-sharing information
All of the following are components of stockout costs EXCEPT: - Correct answer-backlog
cost
What would the percentage of supply chain expenses need to be in order to achieve a
50% increase in gross
profits? The current percentages are 100% for revenue, 10% for supply chain expense,
80% for other
expenses, and hence, gross profit is 10%. Assume the revenues remain constant and the
other expenses
percentage remains constant at 80%. - Correct answer-5%
What is a pallet called when it contains more than one type of product going to a single
destination? - Correct answer-mixed
Which flow within the supply chain typically motivates the other three? - Correct answer-
cash
, What is the simplest measure? - Correct answer-cost of time
What are the components of fulfillment lead time? - Correct answer-order processing &
assembly and shipping
What is the most systematic approach to allocating indirect costs? - Correct answer-
activity-based costing
What happens to variability when independent processes are combined to form a larger
process? - Correct answer-variability of the total time equals the sum of the variability in all
the component times
In order to be counted "perfect" when calculating the perfect-order measure, in addition to
the
order containing the correct goods, what must also be perfect? - Correct answer-order
must ship complete, arrive on-time, and associated paperwork must be accurate and
complete
What is the impact on customer service level (CSL) of increasing safety stock? - Correct
answer-It increases
What is the impact on annual holding costs of increasing the order quantity? - Correct
answer-It increases
What is the impact on annual holding costs of decreasing the order quantity? - Correct
answer-It decreases
What cycle delivers products to meet customer demand? - Correct answer-fulfillment
What is the inventory needed to support normal operations called? - Correct answer-cycle
stock
What is the unintended effect of customers requiring complete shipments? - Correct
answer-Suppliers have to maintain much higher inventory levels.
What kind of relations do most humans naturally assume that systems are? - Correct
answer-linear
Answers -Graded A.
If a company reports a problem with its supply chain and pinpoints blame, which of the
following groups,
if blamed, will most likely result in the stock price being most punished by the market? -
Correct answer-Customers
A significant impact on the supply chain can be made by all of the following stake holders
EXCEPT: - Correct answer-consumers
Which of the following relationships has the maximum degree of independence of
ownership
and the minimum degree of integration? - Correct answer-ad hoc trading
Attempts to replace competition between trading partners with cooperation most often
results
in which of the following? - Correct answer-failure
All of the following flow through the reverse supply chain EXCEPT: - Correct answer-
remanufactured goods
What organization developed the Supply-Chain Operations Reference
(SCOR) model? - Correct answer-Supply Chain Council
Who controls the inventory via consignment? - Correct answer-retailers
What is the proper order of activities when managing a supply chain? - Correct answer-
understand, predict, then control
Definition: Variable quantities at fixed intervals - Correct answer-periodic review policy
All of the following are characteristics of functional products EXCEPT: - Correct answer-
end-of-season markdowns
,There has been a systematic effort within many industries to replace inventory with
________________? - Correct answer-information
What policy seems to have the greatest safety stock? - Correct answer-periodic review
policy
What is the general effect on the total time to source of adding tiers to the procurement
side of
the supply chain? - Correct answer-increases
What is missing from the economic order quantity formula? - Correct answer-demand per
period
Information concerning supply is conveyed through all of the following EXCEPT: - Correct
answer-advanced shipping notice
Which production strategy has the push-pull boundary before product design? - Correct
answer-engineer-to-order
Which production strategy has the push-pull boundary between product design and
purchasing
of raw materials? - Correct answer-made-to-order
Which production strategy has the greatest amount of pull associated with it? - Correct
answer-engineer-to-order
All of the following are reasons why inventory is subject to shrinkage EXCEPT: - Correct
answer-rework
Which production strategy relies most heavily on demand forecasts? - Correct answer-
make-to-stock
What action has members of supply chains historically taken to protect themselves
against variability in
supply and demand? - Correct answer-holding inventory
,All of the following are components of ordering cost EXCEPT: - Correct answer-taxes and
insurance
What technology that embeds tags in data to identify each element of the
data and give it meaning? - Correct answer-XML
What action has typically been taken over the last decade or so by members of supply
chains to decrease
variability in supply and demand? - Correct answer-shortening lead times
All of the following are components of holding cost EXCEPT: - Correct answer-clerical
work of receiving orders
What is a recurring theme for well run supply chains? - Correct answer-cross-functional
teams
What initiative has members of supply chains taken recently to decrease variability in
supply and demand? - Correct answer-sharing information
All of the following are components of stockout costs EXCEPT: - Correct answer-backlog
cost
What would the percentage of supply chain expenses need to be in order to achieve a
50% increase in gross
profits? The current percentages are 100% for revenue, 10% for supply chain expense,
80% for other
expenses, and hence, gross profit is 10%. Assume the revenues remain constant and the
other expenses
percentage remains constant at 80%. - Correct answer-5%
What is a pallet called when it contains more than one type of product going to a single
destination? - Correct answer-mixed
Which flow within the supply chain typically motivates the other three? - Correct answer-
cash
, What is the simplest measure? - Correct answer-cost of time
What are the components of fulfillment lead time? - Correct answer-order processing &
assembly and shipping
What is the most systematic approach to allocating indirect costs? - Correct answer-
activity-based costing
What happens to variability when independent processes are combined to form a larger
process? - Correct answer-variability of the total time equals the sum of the variability in all
the component times
In order to be counted "perfect" when calculating the perfect-order measure, in addition to
the
order containing the correct goods, what must also be perfect? - Correct answer-order
must ship complete, arrive on-time, and associated paperwork must be accurate and
complete
What is the impact on customer service level (CSL) of increasing safety stock? - Correct
answer-It increases
What is the impact on annual holding costs of increasing the order quantity? - Correct
answer-It increases
What is the impact on annual holding costs of decreasing the order quantity? - Correct
answer-It decreases
What cycle delivers products to meet customer demand? - Correct answer-fulfillment
What is the inventory needed to support normal operations called? - Correct answer-cycle
stock
What is the unintended effect of customers requiring complete shipments? - Correct
answer-Suppliers have to maintain much higher inventory levels.
What kind of relations do most humans naturally assume that systems are? - Correct
answer-linear
