Question 1

The best way to manage a business relationship is to measure performance to:

Accepted Answer

A)  cost of ownership metrics. 
B)  quality targets. 
C)  on-time delivery. 
D)  agreed-upon metrics. 
A)  cost of ownership metrics. 
B)  quality targets. 
C)  on-time delivery. 
D)  agreed-upon metrics.

Question 2

A company wants to improve its transportation strategy to focus on its core manufacturing competence and reduce costs. Which of the following options is most likely to enable the company to achieve its objectives?

Accepted Answer

A)  Implement a transportation management system (TMS) 
B)  Transition to leased transportation equipment 
C)  Engage a third-party logistics (3PL) company 
D)  Redesign the distribution network 
A)  Implement a transportation management system (TMS) 
B)  Transition to leased transportation equipment 
C)  Engage a third-party logistics (3PL) company 
D)  Redesign the distribution network

Question 3

Value stream mapping provides the most benefit when:

Accepted Answer

A)  analyzing customer requirements. 
B)  identifying nonvalue-added activities. 
C)  planning kaizen events. 
D)  implementing an information technology strategy. 
A)  analyzing customer requirements. 
B)  identifying nonvalue-added activities. 
C)  planning kaizen events. 
D)  implementing an information technology strategy.

Question 4

The Global Reporting Initiative (GRI) economic scope includes economic performance, market presence and:

Accepted Answer

A)  product labeling practices 
B)  quality practices 
C)  legal practices 
D)  procurement practices 
A)  product labeling practices 
B)  quality practices 
C)  legal practices 
D)  procurement practices

Question 5

A company recently faced an increase in backorders. The company's marketing department recently ran a sales promotion. The purchasing and planning departments were not aware of the promotional activity. Which of the following processes will help to solve this type of problem in the future?

Accepted Answer

A)  Sales and operations planning (S&OP) 
B)  Advanced planning and scheduling (APS) 
C)  Supplier relationship management (SRM) 
D)  Customer relationship management (CRM) 
A)  Sales and operations planning (S&OP) 
B)  Advanced planning and scheduling (APS) 
C)  Supplier relationship management (SRM) 
D)  Customer relationship management (CRM)

Question 6

In a supply chain with the sequence of factory, distributor, wholesaler, retailer, which entity is most likely to experience the greatest variability in demand resulting from the bullwhip effect?

Accepted Answer

A)  Factory 
B)  Distributor 
C)  Wholesaler 
D)  Retailer 
A)  Factory 
B)  Distributor 
C)  Wholesaler 
D)  Retailer

Question 7

Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

Accepted Answer

A)  Production equipment productivity 
B)  Net asset turns 
C)  Value-added productivity per employee 
D)  Upside flexibility 
A)  Production equipment productivity 
B)  Net asset turns 
C)  Value-added productivity per employee 
D)  Upside flexibility

Question 8

A firm has identified groups of customers based on specific characteristics the customers desire from products and services the firm can provide. Characteristics include lead times, pricing tiers, and service levels. The firm is engaged in which of the following activities?

Accepted Answer

A)  Customer differentiation 
B)  Order winner segregation 
C)  Market segmentation 
D)  Channel definition 
A)  Customer differentiation 
B)  Order winner segregation 
C)  Market segmentation 
D)  Channel definition

Question 9

A company has been delivering a global product that no longer appears profitable. Senior management's best response is to:

Accepted Answer

A)  analyze product profitability by market segment. 
B)  discontinue the product based on eroding profitability. 
C)  provide additional incentives to the sales force. 
D)  increase promotional activity across all markets. 
A)  analyze product profitability by market segment. 
B)  discontinue the product based on eroding profitability. 
C)  provide additional incentives to the sales force. 
D)  increase promotional activity across all markets.

Question 10

A firm wants to start doing business with a supplier on another continent. Which of the following methods to minimize financial risk would best protect the supplier and customer?

Accepted Answer

A)  Bank draft 
B)  Letter of credit (L/
C)  
C)  Cash-on-delivery terms 
D)  Currency hedging 
A)  Bank draft 
B)  Letter of credit (L/
C)  
C)  Cash-on-delivery terms 
D)  Currency hedging

Question 11

Which of the following Supply Chain Operations Reference (SCOR) model performance metrics would be most appropriate for an organization with the supply chain capability to align its strategy with changes in the marketplace?

Accepted Answer

A)  Perfect order fulfillment 
B)  Order fulfillment cycle time 
C)  Supply chain management cost 
D)  Upside supply chain flexibility 
A)  Perfect order fulfillment 
B)  Order fulfillment cycle time 
C)  Supply chain management cost 
D)  Upside supply chain flexibility

Question 12

In a reverse supply chain, which of the following tools enables forecasting the usability of each part in the returned product?

Accepted Answer

A)  Reverse network design 
B)  Warranty return rate analysis 
C)  A disassembly bill of material (BOM) 
D)  Design for service 
A)  Reverse network design 
B)  Warranty return rate analysis 
C)  A disassembly bill of material (BOM) 
D)  Design for service

Question 13

A company utilizing supplier relationship management (SRM) will be concerned primarily about which of the following factors when selecting a supplier?

Accepted Answer

A)  Lowest cost 
B)  Shortest lead time 
C)  Culture 
D)  Risk aversion 
A)  Lowest cost 
B)  Shortest lead time 
C)  Culture 
D)  Risk aversion

Question 14

Which of the following levels in a supply chain network represents the most upstream external activity?

Accepted Answer

A)  Supplier to contractor 
B)  Manufacturing to supplier 
C)  Customer to distribution 
D)  Customer to contractor 
A)  Supplier to contractor 
B)  Manufacturing to supplier 
C)  Customer to distribution 
D)  Customer to contractor

Question 15

Maintaining a long-term collaborative relationship with a trading partner requires:

Accepted Answer

A)  formal and informal communication. 
B)  interconnected information systems. 
C)  one partner regularly exercising power. 
D)  standardized terms of agreement. 
A)  formal and informal communication. 
B)  interconnected information systems. 
C)  one partner regularly exercising power. 
D)  standardized terms of agreement.

Question 16

The most effective means to measure customer loyalty would use which of the following approaches?

Accepted Answer

A)  Determine the ability to satisfy a customer's delivery date 
B)  Conduct customer survey for direct feedback 
C)  Analyzing customer repurchase patterns 
D)  Monitor rate of call center activity 
A)  Determine the ability to satisfy a customer's delivery date 
B)  Conduct customer survey for direct feedback 
C)  Analyzing customer repurchase patterns 
D)  Monitor rate of call center activity

Question 17

In which of the following forms of electronic commerce do suppliers attempt to offer the lowest price to buyers?

Accepted Answer

A)  Dutch auction 
B)  Reverse auction 
C)  Business-to-business commerce (B2
B)  
D)  Business-to-consumer sales (B2
C)  
A)  Dutch auction 
B)  Reverse auction 
C)  Business-to-business commerce (B2
B)  
D)  Business-to-consumer sales (B2
C)

Question 18

In a service environment, a decrease in demand over the long term will most likely result in:

Accepted Answer

A)  decreased cost of service 
B)  increased cost of service 
C)  decreased cycle time 
D)  increased cycle time 
A)  decreased cost of service 
B)  increased cost of service 
C)  decreased cycle time 
D)  increased cycle time

Question 19

A master production schedule serves a company best by functioning as a:

Accepted Answer

A)  dispatch list. 
B)  forecast system buffer. 
C)  priority planning tool. 
D)  supplier scheduling system. 
A)  dispatch list. 
B)  forecast system buffer. 
C)  priority planning tool. 
D)  supplier scheduling system.

Question 20

A work center's demonstrated capacity for the last week was 160 standard hours. Its demonstrated capacity for the last 6 weeks was 140 standard hours. Which of the following numbers would be best to use to determine the appropriate future load for the work center?

Accepted Answer

A)  160 standard hours, because it reflects what the work center has proven it can do 
B)  160 standard hours, because it reflects what happened most recently 
C)  150 standard hours, because it is the average of the last two periods 
D)  140 standard hours, because it is based on a greater number of periods 
A)  160 standard hours, because it reflects what the work center has proven it can do 
B)  160 standard hours, because it reflects what happened most recently 
C)  150 standard hours, because it is the average of the last two periods 
D)  140 standard hours, because it is based on a greater number of periods

The best way to manage a business relationship is to measure performance to:

A company wants to improve its transportation strategy to focus on its core manufacturing competence and reduce costs. Which of the following options is most likely to enable the company to achieve its objectives?

Value stream mapping provides the most benefit when:

The Global Reporting Initiative (GRI) economic scope includes economic performance, market presence and:

A company recently faced an increase in backorders. The company's marketing department recently ran a sales promotion. The purchasing and planning departments were not aware of the promotional activity. Which of the following processes will help to solve this type of problem in the future?

In a supply chain with the sequence of factory, distributor, wholesaler, retailer, which entity is most likely to experience the greatest variability in demand resulting from the bullwhip effect?

Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

A firm has identified groups of customers based on specific characteristics the customers desire from products and services the firm can provide. Characteristics include lead times, pricing tiers, and service levels. The firm is engaged in which of the following activities?

A company has been delivering a global product that no longer appears profitable. Senior management's best response is to:

A firm wants to start doing business with a supplier on another continent. Which of the following methods to minimize financial risk would best protect the supplier and customer?

Which of the following Supply Chain Operations Reference (SCOR) model performance metrics would be most appropriate for an organization with the supply chain capability to align its strategy with changes in the marketplace?

In a reverse supply chain, which of the following tools enables forecasting the usability of each part in the returned product?

A company utilizing supplier relationship management (SRM) will be concerned primarily about which of the following factors when selecting a supplier?

Which of the following levels in a supply chain network represents the most upstream external activity?

Maintaining a long-term collaborative relationship with a trading partner requires:

The most effective means to measure customer loyalty would use which of the following approaches?

In which of the following forms of electronic commerce do suppliers attempt to offer the lowest price to buyers?

In a service environment, a decrease in demand over the long term will most likely result in:

A master production schedule serves a company best by functioning as a:

A work center's demonstrated capacity for the last week was 160 standard hours. Its demonstrated capacity for the last 6 weeks was 140 standard hours. Which of the following numbers would be best to use to determine the appropriate future load for the work center?

Certification in Logistics, Transportation and Distribution

CPIM - Basics of Supply Chain Management

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Exam 3: APICS Certified Supply Chain Professional

The best way to manage a business relationship is to measure performance to:

A company wants to improve its transportation strategy to focus on its core manufacturing competence and reduce costs. Which of the following options is most likely to enable the company to achieve its objectives?

Value stream mapping provides the most benefit when:

The Global Reporting Initiative (GRI) economic scope includes economic performance, market presence and:

A company recently faced an increase in backorders. The company's marketing department recently ran a sales promotion. The purchasing and planning departments were not aware of the promotional activity. Which of the following processes will help to solve this type of problem in the future?

In a supply chain with the sequence of factory, distributor, wholesaler, retailer, which entity is most likely to experience the greatest variability in demand resulting from the bullwhip effect?

Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

A firm has identified groups of customers based on specific characteristics the customers desire from products and services the firm can provide. Characteristics include lead times, pricing tiers, and service levels. The firm is engaged in which of the following activities?

A company has been delivering a global product that no longer appears profitable. Senior management's best response is to:

A firm wants to start doing business with a supplier on another continent. Which of the following methods to minimize financial risk would best protect the supplier and customer?

Which of the following Supply Chain Operations Reference (SCOR) model performance metrics would be most appropriate for an organization with the supply chain capability to align its strategy with changes in the marketplace?

In a reverse supply chain, which of the following tools enables forecasting the usability of each part in the returned product?

A company utilizing supplier relationship management (SRM) will be concerned primarily about which of the following factors when selecting a supplier?

Which of the following levels in a supply chain network represents the most upstream external activity?

Maintaining a long-term collaborative relationship with a trading partner requires:

The most effective means to measure customer loyalty would use which of the following approaches?

In which of the following forms of electronic commerce do suppliers attempt to offer the lowest price to buyers?

In a service environment, a decrease in demand over the long term will most likely result in:

A master production schedule serves a company best by functioning as a:

A work center's demonstrated capacity for the last week was 160 standard hours. Its demonstrated capacity for the last 6 weeks was 140 standard hours. Which of the following numbers would be best to use to determine the appropriate future load for the work center?

Certification in Logistics, Transportation and Distribution

CPIM - Basics of Supply Chain Management

Filters