Question 1

A railway company investing in a signaling system to help identify and restore service quickly is an example of:

Accepted Answer

A)  risk resilience 
B)  risk tolerance 
C)  risk appetite 
D)  risk mitigation

Question 2

When an importer and manufacturer are operating in a free trade zone, payment of a customs duty is triggered when products are:

Accepted Answer

A)  returned. 
B)  assembled. 
C)  stored. 
D)  distributed.

Question 3

Reverse supply chain activity typically peaks nearest the beginning of which of the following stages of the product life cycle?

Accepted Answer

A)  Introduction 
B)  Growth 
C)  Maturity 
D)  Decline

Question 4

When choosing a supplier in a market-responsive supply chain, a company most appropriately would make the selection on the basis of quality and:

Accepted Answer

A)  product cost 
B)  product development capabilities 
C)  cost of delivery 
D)  speed

Question 5

The strategy to implement supplier relationship management has been developed. The most appropriate next step is to:

Accepted Answer

A)  develop criteria for prospective partners. 
B)  develop policies for alliances. 
C)  select initial partners. 
D)  conduct a pilot implementation.

Question 6

Which of the following costs are likely to be incurred in reverse logistics?

Accepted Answer

A)  Warranty and ordering 
B)  Warranty and restocking 
C)  Restocking and obsolescence 
D)  Obsolescence and carrying

Question 7

Which of the following components of customer relationship management (CRM) system enables a company to more effectively manage its existing accounts, prospect for new customers, and track the impact of pricing, promotions and forecasts?

Accepted Answer

A)  Market segmentation 
B)  Customer segmentation 
C)  Customer service automation 
D)  Sales force automation

Question 8

Bullwhip effect can be reduced by which of the following combinations of actions?

Accepted Answer

A)  Information sharing, batch ordering, variable pricing 
B)  Shortage gaming, frequent ordering, consistent pricing 
C)  Information sharing, frequent ordering, variable pricing 
D)  Information sharing, frequent ordering, consistent pricing

Question 9

A company's product cannot be sold beyond 12 months from the date of manufacture. The product contains hazardous material and must be returned to the factory to be neutralized. This situation is an example of product:

Accepted Answer

A)  reuse. 
B)  remanufacturing. 
C)  recovery. 
D)  refurbishing.

Question 10

Which of the following industry segment's reverse logistics process is most likely to result in the disposition of remanufacturing?

Accepted Answer

A)  Electronics 
B)  Furniture 
C)  Precious commodities 
D)  Paper products

Question 11

Which of the following factors typically is most important in successfully implementing sales and operations planning (S&OP)?

Accepted Answer

A)  Involvement of specialists from all functional groups within an organization 
B)  Creation of a dedicated S&OP organizational unit 
C)  Involvement and accountability at senior management level 
D)  Focus on 3 months to 18 months in the future

Question 12

A manufacturer has direct relationships with its tier 1 suppliers. Which of the following supplier capabilities is a benefit to the manufacturer establishing a direct relationship with lower-tier suppliers?

Accepted Answer

A)  Provides smaller lot sizes 
B)  Provides components with short lead times 
C)  Provides Just in Time deliveries 
D)  Provides information about impending shifts in the economy

Question 13

Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange?

Accepted Answer

A)  Expensive material that is critical to the finished good 
B)  Expensive material for which there are several substitutes 
C)  Inexpensive material that is critical to the finished good 
D)  Inexpensive material for which there are many sources

Question 14

A company distributes products through a multitiered distribution network. Recently there has been high demand variability for a mature product that had experienced stable demand for several years. The most appropriate way to address the variability of demand is to:

Accepted Answer

A)  extend forecast horizon. 
B)  increase distribution safety stock targets. 
C)  increase manufacturing throughput. 
D)  increase demand visibility with all partners.

Question 15

Shortly after implementation of a supplier quality-management program, the customer's and supplier's measurements of an attribute differ. The most appropriate course of action is to:

Accepted Answer

A)  use the customer's data for the attribute 
B)  stop measuring performance for the attribute 
C)  redefine performance criteria 
D)  investigate data collection methods

Question 16

In addition to sales history, current customer orders, and forecasted demand, which of the following data sources should be used as part of a demand management process?

Accepted Answer

A)  Inventory levels 
B)  Contractual obligations 
C)  Customer profitability 
D)  Scheduled marketing activities

Question 17

A company ships from its manufacturing facilities directly to its warehouses. If the number of warehouses increases, transportation costs between manufacturing facilities and warehouses most likely will:

Accepted Answer

A)  increase. 
B)  decrease. 
C)  not change. 
D)  become less predictable.

Question 18

Which of the following costing approaches directly reflects logistics performance?

Accepted Answer

A)  Activity-based 
B)  Total landed 
C)  Standard 
D)  Weighted average

Question 19

The most likely benefit of implementing a collaborative transportation management system is:

Accepted Answer

A)  lower distribution center operating costs. 
B)  fewer transportation planners. 
C)  less variability in picking and packing time. 
D)  less variability in transportation costs.

Question 20

An effective company strategy results when combining innovative products with:

Accepted Answer

A)  an efficient supply chain. 
B)  a responsive supply chain. 
C)  accurate forecasts. 
D)  high inventory levels.

Exam 3: APICS Certified Supply Chain Professional