Question 1

A firm has discovered a product quality issue. What should be the first step in responding to this issue?

Accepted Answer

A)  Determine the root cause of the quality issue. 
B)  Separate the non-conforming products. 
C)  Trace the location of the faulty product in the supply chain. 
D)  Replace faulty products when they are returned by the end user. 
A)  Determine the root cause of the quality issue. 
B)  Separate the non-conforming products. 
C)  Trace the location of the faulty product in the supply chain. 
D)  Replace faulty products when they are returned by the end user. C

Question 2

Which of the following elements typically is considered to be an output of demand planning?

Accepted Answer

A)  Transportation routes and schedules 
B)  Detailed production schedules 
C)  Product family and item forecasts 
D)  Customer historic tracking report 
A)  Transportation routes and schedules 
B)  Detailed production schedules 
C)  Product family and item forecasts 
D)  Customer historic tracking report C

Question 3

A company that is having difficulties prioritizing resources against a long list of improvement projects should use which of the following processes?

Accepted Answer

A)  Control chart 
B)  Competitive benchmarking 
C)  Pareto analysis 
D)  Six Sigma 
A)  Control chart 
B)  Competitive benchmarking 
C)  Pareto analysis 
D)  Six Sigma C

Question 4

The demand side of a traditional warehouse management system primarily is concerned with:

Accepted Answer

A)  receiving incoming goods. 
B)  assigning storage locations. 
C)  assembling outbound orders. 
D)  forecasting product demand. 
A)  receiving incoming goods. 
B)  assigning storage locations. 
C)  assembling outbound orders. 
D)  forecasting product demand.

Question 5

Direct shipment distribution typically offers which of the following advantages?

Accepted Answer

A)  Risk pooling is facilitated. 
B)  Demand variability is reduced. 
C)  Service levels are increased. 
D)  Lead times are reduced. 
A)  Risk pooling is facilitated. 
B)  Demand variability is reduced. 
C)  Service levels are increased. 
D)  Lead times are reduced.

Question 6

A company is aggressively pursuing improvements in the financial performance of its supply chain. The company should first focus its efforts on which of the following metrics?

Accepted Answer

A)  Process takt time 
B)  Cycle count accuracy 
C)  Number of inventory turns 
D)  Number of first-tier suppliers 
A)  Process takt time 
B)  Cycle count accuracy 
C)  Number of inventory turns 
D)  Number of first-tier suppliers

Question 7

Which of the following factors is most likely to slow the adoption of collaborative planning, forecasting, and replenishment (CPFR)?

Accepted Answer

A)  The reluctance to share detailed information 
B)  The cost of electronic data interchange services 
C)  The risk that changed processes will disrupt operations 
D)  The risk of security breaches 
A)  The reluctance to share detailed information 
B)  The cost of electronic data interchange services 
C)  The risk that changed processes will disrupt operations 
D)  The risk of security breaches

Question 8

Which of the following statements describes a continuous replenishment strategy in a retail environment?

Accepted Answer

A)  Retailers make replenishment decisions. 
B)  Retailers prepare individual orders and share sales data with vendors to improve customer service. 
C)  Vendors use sales data and prepare shipments to maintain the desired level of inventory. 
D)  Vendors take full control of inventory policy. 
A)  Retailers make replenishment decisions. 
B)  Retailers prepare individual orders and share sales data with vendors to improve customer service. 
C)  Vendors use sales data and prepare shipments to maintain the desired level of inventory. 
D)  Vendors take full control of inventory policy.

Question 9

In order to improve the ability of a multiple plant manufacturer to reduce inventory, a warehouse should:

Accepted Answer

A)  train employees in managing inbound and outbound shipments 
B)  implement an automated storage/retrieval system (AS/RS) 
C)  sort and sequence a variety of materials for shipment to the plants 
D)  implement postponement on high volume goods 
A)  train employees in managing inbound and outbound shipments 
B)  implement an automated storage/retrieval system (AS/RS) 
C)  sort and sequence a variety of materials for shipment to the plants 
D)  implement postponement on high volume goods

Question 10

A company manufactures special products for select customers. When demand for these products drops, the manufacturer can switch the production line to a commodity-type product that can be sold on the open market at reduced terms to generate cash. The company is executing a corporate strategy that is based on:

Accepted Answer

A)  customer focus and alignment. 
B)  forecast accuracy. 
C)  multiple downstream channels. 
D)  multiple upstream supply chains. 
A)  customer focus and alignment. 
B)  forecast accuracy. 
C)  multiple downstream channels. 
D)  multiple upstream supply chains.

Question 11

Which of the following metrics would be most appropriate for a group of trading partners that is trying to gain competitive advantage through supply chain reliability?

Accepted Answer

A)  Cash-to-cash cycle time 
B)  Supply chain response time 
C)  Order-fill rate performance 
D)  Value-added productivity per employee 
A)  Cash-to-cash cycle time 
B)  Supply chain response time 
C)  Order-fill rate performance 
D)  Value-added productivity per employee

Question 12

Which of the following metrics compares the cost of goods sold (COGS) for a period to the average inventory cost for a period?

Accepted Answer

A)  Total cost per unit 
B)  Inventory turnover 
C)  Actual versus budget cost 
D)  Carrying costs 
A)  Total cost per unit 
B)  Inventory turnover 
C)  Actual versus budget cost 
D)  Carrying costs

Question 13

Implementation of a measurement system of perfect orders is most likely to allow a firm to measure:

Accepted Answer

A)  flexibility 
B)  reliability 
C)  consistency 
D)  responsiveness 
A)  flexibility 
B)  reliability 
C)  consistency 
D)  responsiveness

Question 14

An organization that is committed to sustainable business operations typically would focus on:

Accepted Answer

A)  minimizing its impact on the environment 
B)  minimizing the impact on the societies in which it operates 
C)  balancing the political, economic, and social effects of its operations 
D)  balancing the economic, environmental, and social effects of its operations 
A)  minimizing its impact on the environment 
B)  minimizing the impact on the societies in which it operates 
C)  balancing the political, economic, and social effects of its operations 
D)  balancing the economic, environmental, and social effects of its operations

Question 15

One key factor to consider when selecting suppliers for their potential to sustain long-term, mutually profitable relationships is:

Accepted Answer

A)  landed cost. 
B)  quality metrics. 
C)  operational performance. 
D)  financial viability. 
A)  landed cost. 
B)  quality metrics. 
C)  operational performance. 
D)  financial viability.

Question 16

Which of the following actions by trading partners would be most appropriate to protect against variability in supply and demand?

Accepted Answer

A)  Improve product quality. 
B)  Increase inventory levels. 
C)  Increase information sharing. 
D)  Reduce product complexity. 
A)  Improve product quality. 
B)  Increase inventory levels. 
C)  Increase information sharing. 
D)  Reduce product complexity.

Question 17

A company that is effectively managing its cash will have which of the following conditions?

Accepted Answer

A)  Low accounts receivable, low inventory, high accounts payable 
B)  High accounts receivable, low inventory, high accounts payable 
C)  Low accounts receivable, high inventory, low accounts payable 
D)  High accounts receivable, high inventory, low accounts payable 
A)  Low accounts receivable, low inventory, high accounts payable 
B)  High accounts receivable, low inventory, high accounts payable 
C)  Low accounts receivable, high inventory, low accounts payable 
D)  High accounts receivable, high inventory, low accounts payable

Question 18

Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:

Accepted Answer

A)  wider variety. 
B)  shorter lead time. 
C)  higher profit margins. 
D)  lower sales volumes. 
A)  wider variety. 
B)  shorter lead time. 
C)  higher profit margins. 
D)  lower sales volumes.

Question 19

Which of the following strategies is most appropriate for managing unknown risks in a global supply chain?

Accepted Answer

A)  Vertical integration 
B)  Technology integration with suppliers 
C)  Investing in redundancy 
D)  Strengthening supplier relationships 
A)  Vertical integration 
B)  Technology integration with suppliers 
C)  Investing in redundancy 
D)  Strengthening supplier relationships

Question 20

Medium-term demand management projections are used primarily to:

Accepted Answer

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. 
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.

A firm has discovered a product quality issue. What should be the first step in responding to this issue?

Which of the following elements typically is considered to be an output of demand planning?

A company that is having difficulties prioritizing resources against a long list of improvement projects should use which of the following processes?

The demand side of a traditional warehouse management system primarily is concerned with:

Direct shipment distribution typically offers which of the following advantages?

A company is aggressively pursuing improvements in the financial performance of its supply chain. The company should first focus its efforts on which of the following metrics?

Which of the following factors is most likely to slow the adoption of collaborative planning, forecasting, and replenishment (CPFR)?

Which of the following statements describes a continuous replenishment strategy in a retail environment?

In order to improve the ability of a multiple plant manufacturer to reduce inventory, a warehouse should:

Which of the following metrics would be most appropriate for a group of trading partners that is trying to gain competitive advantage through supply chain reliability?

Which of the following metrics compares the cost of goods sold (COGS) for a period to the average inventory cost for a period?

Implementation of a measurement system of perfect orders is most likely to allow a firm to measure:

An organization that is committed to sustainable business operations typically would focus on:

One key factor to consider when selecting suppliers for their potential to sustain long-term, mutually profitable relationships is:

Which of the following actions by trading partners would be most appropriate to protect against variability in supply and demand?

A company that is effectively managing its cash will have which of the following conditions?

Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:

Which of the following strategies is most appropriate for managing unknown risks in a global supply chain?

Medium-term demand management projections are used primarily to:

Certification in Logistics, Transportation and Distribution

CPIM - Basics of Supply Chain Management

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Exam 3: APICS Certified Supply Chain Professional

A firm has discovered a product quality issue. What should be the first step in responding to this issue?

Which of the following elements typically is considered to be an output of demand planning?

A company that is having difficulties prioritizing resources against a long list of improvement projects should use which of the following processes?

The demand side of a traditional warehouse management system primarily is concerned with:

Direct shipment distribution typically offers which of the following advantages?

A company is aggressively pursuing improvements in the financial performance of its supply chain. The company should first focus its efforts on which of the following metrics?

Which of the following factors is most likely to slow the adoption of collaborative planning, forecasting, and replenishment (CPFR)?

Which of the following statements describes a continuous replenishment strategy in a retail environment?

In order to improve the ability of a multiple plant manufacturer to reduce inventory, a warehouse should:

Which of the following metrics would be most appropriate for a group of trading partners that is trying to gain competitive advantage through supply chain reliability?

Which of the following metrics compares the cost of goods sold (COGS) for a period to the average inventory cost for a period?

Implementation of a measurement system of perfect orders is most likely to allow a firm to measure:

An organization that is committed to sustainable business operations typically would focus on:

One key factor to consider when selecting suppliers for their potential to sustain long-term, mutually profitable relationships is:

Which of the following actions by trading partners would be most appropriate to protect against variability in supply and demand?

A company that is effectively managing its cash will have which of the following conditions?

Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:

Which of the following strategies is most appropriate for managing unknown risks in a global supply chain?

Medium-term demand management projections are used primarily to:

Certification in Logistics, Transportation and Distribution

CPIM - Basics of Supply Chain Management

Filters