Question 1

Successful implementation of a new supply chain process first requires:

Accepted Answer

A)  manipulation of data 
B)  a substantial investment in information technology 
C)  a well-defined production planning process 
D)  open communication with stakeholders 
A)  manipulation of data 
B)  a substantial investment in information technology 
C)  a well-defined production planning process 
D)  open communication with stakeholders

Question 2

A manufacturer of innovative products needs to focus on which of the following factors?

Accepted Answer

A)  Cost per unit 
B)  Time-to-market 
C)  Component inventory levels 
D)  Equipment utilization 
A)  Cost per unit 
B)  Time-to-market 
C)  Component inventory levels 
D)  Equipment utilization

Question 3

The practice of purchasing items in large quantities and requesting that shipments be delivered directly to customers is referred to as:

Accepted Answer

A)  drop shipping. 
B)  cross-docking. 
C)  breaking bulk. 
D)  freight equalization. 
A)  drop shipping. 
B)  cross-docking. 
C)  breaking bulk. 
D)  freight equalization.

Question 4

Which of the following criteria are important when establishing a warehouse distribution system?

Accepted Answer

A)  Cost of the overall system and service level desired 
B)  Material and handling costs and proximity to customers 
C)  Transportation costs and material handling costs 
D)  Service level desired and local presence 
A)  Cost of the overall system and service level desired 
B)  Material and handling costs and proximity to customers 
C)  Transportation costs and material handling costs 
D)  Service level desired and local presence

Question 5

Which of the following activities is critical to successful synchronization of supply and demand throughout a supply chain?

Accepted Answer

A)  Sharing demand information 
B)  Placing large orders to obtain lower prices 
C)  Reducing the number of deliveries 
D)  Maintaining increased inventories 
A)  Sharing demand information 
B)  Placing large orders to obtain lower prices 
C)  Reducing the number of deliveries 
D)  Maintaining increased inventories

Question 6

Which of the following factors typically is most important to a company that uses the chase production strategy when evaluating potential suppliers for a component?

Accepted Answer

A)  Supplier's agility 
B)  Supplier's certification status 
C)  Quoted delivery time 
D)  Quoted total price 
A)  Supplier's agility 
B)  Supplier's certification status 
C)  Quoted delivery time 
D)  Quoted total price

Question 7

Which of the following characteristics typically is required for a collaborative strategic relationship?

Accepted Answer

A)  High levels of trust 
B)  History of successful collaboration 
C)  Awareness of cultural differences 
D)  Formal contracts defining the relationship 
A)  High levels of trust 
B)  History of successful collaboration 
C)  Awareness of cultural differences 
D)  Formal contracts defining the relationship

Question 8

Using new housing construction data as a predictor of construction equipment sales is an example of what type of forecasting method?

Accepted Answer

A)  Causal 
B)  Time series 
C)  Judgement 
D)  Market survey 
A)  Causal 
B)  Time series 
C)  Judgement 
D)  Market survey

Question 9

Which of the following activities is the most appropriate use of an advanced planning and scheduling system?

Accepted Answer

A)  Selecting the target market for a product 
B)  Optimizing transportation routes 
C)  Creating a daily demand forecast 
D)  Identifying constraints within a facility 
A)  Selecting the target market for a product 
B)  Optimizing transportation routes 
C)  Creating a daily demand forecast 
D)  Identifying constraints within a facility

Question 10

Point-of-sale information fails to measure actual demand most likely because:

Accepted Answer

A)  holidays interrupt typical sales patterns. 
B)  inventory levels are inaccurate. 
C)  there is lag time in the system. 
D)  data about lost sales cannot be captured. 
A)  holidays interrupt typical sales patterns. 
B)  inventory levels are inaccurate. 
C)  there is lag time in the system. 
D)  data about lost sales cannot be captured.

Question 11

Sustainable business practices are those capable of meeting the:

Accepted Answer

A)  environmental protection requirements of today. 
B)  requirements of producing products with minimum resources. 
C)  environmental protection requirements of the future. 
D)  needs of the present while considering the needs of the future. 
A)  environmental protection requirements of today. 
B)  requirements of producing products with minimum resources. 
C)  environmental protection requirements of the future. 
D)  needs of the present while considering the needs of the future.

Question 12

Which of the following actions is most likely to reduce inventory carrying costs?

Accepted Answer

A)  Utilize ABC classification 
B)  Standardize the items in inventory 
C)  Set minimum inventory levels 
D)  Initiate a vendor-managed inventory (VMI) program 
A)  Utilize ABC classification 
B)  Standardize the items in inventory 
C)  Set minimum inventory levels 
D)  Initiate a vendor-managed inventory (VMI) program

Question 13

The United Nations Global Compact uses 10 guiding principles to:

Accepted Answer

A)  reduce uncertainty for multinational firms regarding legal, import/export, labor, and environmental standards across countries. 
B)  set minimum levels of compliance across a broad range of transactional areas for businesses operating in multiple geographic regions. 
C)  align the needs of businesses to increase profitability and the needs of individual countries to ensure their specific legal requirements are met. 
D)  help ensure that markets, commerce, technology, and finance promote advancement of economies and societies everywhere. 
A)  reduce uncertainty for multinational firms regarding legal, import/export, labor, and environmental standards across countries. 
B)  set minimum levels of compliance across a broad range of transactional areas for businesses operating in multiple geographic regions. 
C)  align the needs of businesses to increase profitability and the needs of individual countries to ensure their specific legal requirements are met. 
D)  help ensure that markets, commerce, technology, and finance promote advancement of economies and societies everywhere.

Question 14

Which of the following tools is appropriate to evaluate overall organizational performance?

Accepted Answer

A)  Supplier scorecard 
B)  Benchmarking 
C)  Balanced scorecard 
D)  Cost-benefit analysis 
A)  Supplier scorecard 
B)  Benchmarking 
C)  Balanced scorecard 
D)  Cost-benefit analysis

Question 15

A company plans to implement a new software application for inventory optimization. Which of the following actions will most likely reduce the implementation time?

Accepted Answer

A)  Purchase the new software and host it on secure cloud servers 
B)  Develop the new software in-house and purchase additional hardware 
C)  Purchase the new software and customize it 
D)  Integrate the new software with supply chain partners 
A)  Purchase the new software and host it on secure cloud servers 
B)  Develop the new software in-house and purchase additional hardware 
C)  Purchase the new software and customize it 
D)  Integrate the new software with supply chain partners

Question 16

Incorporating supplier input into product and process design helps to:

Accepted Answer

A)  maintain quality. 
B)  stabilize product costs. 
C)  reduce time to market. 
D)  save costs to the buyer. 
A)  maintain quality. 
B)  stabilize product costs. 
C)  reduce time to market. 
D)  save costs to the buyer.

Question 17

The primary purpose for establishing trade blocs is to:

Accepted Answer

A)  establish common methodology for transportation of goods 
B)  establish common reporting regulations for trade within the bloc 
C)  organize and establish common currency exchange rates 
D)  remove trade barriers between member countries in the bloc 
A)  establish common methodology for transportation of goods 
B)  establish common reporting regulations for trade within the bloc 
C)  organize and establish common currency exchange rates 
D)  remove trade barriers between member countries in the bloc

Question 18

Which of the following tools is most appropriate for understanding why products fail?

Accepted Answer

A)  Run chart 
B)  Control chart 
C)  Pareto analysis 
D)  Root cause analysis 
A)  Run chart 
B)  Control chart 
C)  Pareto analysis 
D)  Root cause analysis

Question 19

When determining lot sizes, consideration should be given to balancing which of the following costs?

Accepted Answer

A)  Quality costs and product costs 
B)  Cost of goods sold (COGS) and indirect labor costs 
C)  Unit sales price and unit cost 
D)  Ordering costs and carrying costs 
A)  Quality costs and product costs 
B)  Cost of goods sold (COGS) and indirect labor costs 
C)  Unit sales price and unit cost 
D)  Ordering costs and carrying costs

Question 20

Inventory parameters established using analytic inventory techniques typically are based on balancing:

Accepted Answer

A)  supply and dependent demand. 
B)  customer service and inventory costs. 
C)  transportation and warehousing costs. 
D)  inventory levels and decision-making costs. 
A)  supply and dependent demand. 
B)  customer service and inventory costs. 
C)  transportation and warehousing costs. 
D)  inventory levels and decision-making costs.

Successful implementation of a new supply chain process first requires:

A manufacturer of innovative products needs to focus on which of the following factors?

The practice of purchasing items in large quantities and requesting that shipments be delivered directly to customers is referred to as:

Which of the following criteria are important when establishing a warehouse distribution system?

Which of the following activities is critical to successful synchronization of supply and demand throughout a supply chain?

Which of the following factors typically is most important to a company that uses the chase production strategy when evaluating potential suppliers for a component?

Which of the following characteristics typically is required for a collaborative strategic relationship?

Using new housing construction data as a predictor of construction equipment sales is an example of what type of forecasting method?

Which of the following activities is the most appropriate use of an advanced planning and scheduling system?

Point-of-sale information fails to measure actual demand most likely because:

Sustainable business practices are those capable of meeting the:

Which of the following actions is most likely to reduce inventory carrying costs?

The United Nations Global Compact uses 10 guiding principles to:

Which of the following tools is appropriate to evaluate overall organizational performance?

A company plans to implement a new software application for inventory optimization. Which of the following actions will most likely reduce the implementation time?

Incorporating supplier input into product and process design helps to:

The primary purpose for establishing trade blocs is to:

Which of the following tools is most appropriate for understanding why products fail?

When determining lot sizes, consideration should be given to balancing which of the following costs?

Inventory parameters established using analytic inventory techniques typically are based on balancing:

Certification in Logistics, Transportation and Distribution

CPIM - Basics of Supply Chain Management

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Exam 3: APICS Certified Supply Chain Professional

Successful implementation of a new supply chain process first requires:

A manufacturer of innovative products needs to focus on which of the following factors?

The practice of purchasing items in large quantities and requesting that shipments be delivered directly to customers is referred to as:

Which of the following criteria are important when establishing a warehouse distribution system?

Which of the following activities is critical to successful synchronization of supply and demand throughout a supply chain?

Which of the following factors typically is most important to a company that uses the chase production strategy when evaluating potential suppliers for a component?

Which of the following characteristics typically is required for a collaborative strategic relationship?

Using new housing construction data as a predictor of construction equipment sales is an example of what type of forecasting method?

Which of the following activities is the most appropriate use of an advanced planning and scheduling system?

Point-of-sale information fails to measure actual demand most likely because:

Sustainable business practices are those capable of meeting the:

Which of the following actions is most likely to reduce inventory carrying costs?

The United Nations Global Compact uses 10 guiding principles to:

Which of the following tools is appropriate to evaluate overall organizational performance?

A company plans to implement a new software application for inventory optimization. Which of the following actions will most likely reduce the implementation time?

Incorporating supplier input into product and process design helps to:

The primary purpose for establishing trade blocs is to:

Which of the following tools is most appropriate for understanding why products fail?

When determining lot sizes, consideration should be given to balancing which of the following costs?

Inventory parameters established using analytic inventory techniques typically are based on balancing:

Certification in Logistics, Transportation and Distribution

CPIM - Basics of Supply Chain Management

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