APIC CSCP Module 1 Exam Questions With Verified Answers

APIC CSCP Module 1 Exam Questions With Verified Answers 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? - answerOperations 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? - answerIt can be sold for a positive return. Maria sells her paintings in the street market on weekends. What is Tier 2 suppliers in this supply chain model? - answerPaint 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? - answerHire high-quality new employees at reasonable salaries. Direct materials plus direct labor plus manufacturing overhead equals: - answerthe cost of goods sold. Why should positive variances from standards be tracked by an organization? - answerThey could show where someone was taking a dangerous shortcut. What is prompting many countries to adopt the International Financial Reporting Standards (IFRS)? - answerGrowth 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: - answeroverly 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? - answer50% According to macroeconomic theory, as aggregate prices decrease, what happens to the real gross domestic product (GDP), and why? - answerReal 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? - answerSafety stock What are the three essential elements of a performance measurement system? - answerA criterion, a standard, and a measure A firm's highest stage of production is manufacturing resource planning (MRP II), it uses informal demand planning with disconnected spreadsheets for the supply chain, and it has online catalogs on the internet. What stage of supply chain development has the firm reached? - answerSemifunctional enterprise 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? - answerWhether 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? - answerReactive efficient What are the attributes of basic customer service? - answerAvailability, operational performance, and customer satisfaction What is the business strategy of an organization that develops a deep understanding of customer needs and then provides fewer options to select from than the competition? - answerCustomer experience differentiation 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? - answerScan 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? - answerAttractiveness, price, and availability Proactively managing risk rather than being reactive provides which of these benefits to the organization? - answerCompetitive advantage 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? - answerDesign a way for people to provide anonymous information on strategic gaps. Which of the following statements about purchased customer data is true? - answerThe 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 - answerI 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? - answerLarge increase in demand With a laterally integrated supply chain, an organization may: - answermake 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? - answerFacility 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? - answerEntities 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? - answerSemifunctional enterprise What lesson can be learned from studying a humanitarian and disaster relief supply chain? - answerWhen 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? - answerVertically 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? - answerMerging with or acquiring other companies Many Japanese companies build keiretsu to: - answerform 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? - answerVertical supply chain