APICS CSCP Exam Practice Test Instant Access

Question 1

A company with a fleet of trucks is considering using a third-party logistics (3PL) provider to distribute a new product. Which of the following benefits most likely will result?

AFewer tax implications

BLimited exposure to regulatory violations

CFixed delivery costs

DBetter market accessibility

Answer : D

Using a third-party logistics (3PL) provider can enhance a company's distribution capabilities, providing better market accessibility. 3PL providers often have extensive networks, advanced technology, and expertise in logistics management, allowing companies to reach markets more efficiently and effectively than they could on their own. This is especially beneficial when launching a new product, as it can ensure wider and faster market penetration. Options A, B, and C may provide some benefits, but they are secondary to the strategic advantage of improved market accessibility offered by 3PL providers.

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. (2017). Supply Chain Management: A Logistics Perspective.

https://www.logisticsmgmt.com

Question 2

To handle a dispute over damage to goods shipped between two countries, which international standard should be applied?

AUnited Nations (UN) Global Compact

BIncoterms

CExport Trading Company (ETC) Act

DOmnibus Foreign Trade and Competitiveness Act

Answer : B

To handle disputes over damage to goods shipped between two countries, Incoterms (International Commercial Terms) should be applied:

Standardized Terms: Incoterms provide internationally recognized standard terms that define the responsibilities of buyers and sellers in international transactions.

Risk Management: They clarify at which point the risk and responsibility for the goods transfer from the seller to the buyer, helping to resolve disputes regarding damage during transit.

Legal Clarity: Using Incoterms ensures that both parties have a clear understanding of their obligations, reducing the potential for conflicts.

Global Acceptance: Incoterms are widely used and accepted across different countries and legal systems, making them a reliable reference in international trade disputes.

International Chamber of Commerce (2020). Incoterms 2020: ICC rules for the use of domestic and international trade terms. ICC Publication.

Schmitthoff, C. M., & Goode, R. (2007). Schmitthoff's Export Trade: The Law and Practice of International Trade. Sweet & Maxwell.

Question 3

Which of the following measures would be most appropriate for a supply chain focused on reliability as a competitive priority?

AProduction volume flexibility

BTotal supply chain cost

CSupply chain response time

DOrder fulfillment lead times

Answer : D

For a supply chain focused on reliability as a competitive priority, the most appropriate measure is order fulfillment lead times. This metric directly reflects the ability of the supply chain to reliably meet customer orders within the promised time frame. Key points include:

Reliability Indicator: Order fulfillment lead times indicate the consistency and reliability of the supply chain in delivering products as promised.

Customer Satisfaction: Reliable and predictable lead times are crucial for maintaining high levels of customer satisfaction and trust.

Performance Benchmarking: Measuring and optimizing lead times helps benchmark performance and identify areas for improvement.

Competitive Advantage: Short and consistent lead times can provide a competitive advantage by differentiating the company from competitors who may have longer or more variable lead times.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

Christopher, M. (2016). Logistics & Supply Chain Management. Pearson.

Question 4

Which of the following statements about communications related to change management is most accurate?

ACommunication should flow from key business subject matter experts to upper management.

BThe communication plan for implementing change should place equal emphasis on business objectives and information technology (IT) processes.

CCommunication should flow both directions between all levels within the organization and key messages should be repeated frequently.

DCommunication should flow down from upper management to ensure focus on the business directives.

Answer : C

Question 5

A manufacturer's inventory levels are growing and service levels are dropping. Which of the following supply chain strategies is most appropriate to reduce inventory and improve service?

AIncrease the safety stockon all items.

BReduce the setup time.

COptimize the total cost.

DImplement batch operations.

Answer : B

When a manufacturer faces growing inventory levels and dropping service levels, the primary goal is to optimize the supply chain to be more responsive and efficient. Reducing setup time is a key strategy in this context because:

Setup Time Reduction: By reducing the time required to changeover or setup equipment for different production runs, manufacturers can produce smaller batches more frequently. This leads to:

Lower inventory levels because production is more closely aligned with actual demand.

Improved flexibility and responsiveness to customer orders, which enhances service levels.

Lean Manufacturing Principles: This approach is consistent with lean manufacturing principles, which focus on reducing waste and increasing efficiency. By minimizing setup times, manufacturers can reduce work-in-progress inventory and finished goods inventory.

Enhanced Agility: Reducing setup time makes the manufacturing process more agile, allowing it to quickly adapt to changes in demand and reduce the likelihood of stockouts or overproduction.

Continuous Improvement: This strategy fosters a culture of continuous improvement and can lead to further efficiencies and cost reductions over time.

Increasing safety stock (Option A) might temporarily address service levels but will increase inventory costs. Optimizing the total cost (Option C) is a broad strategy and not specific enough. Implementing batch operations (Option D) might not directly address the issue of service levels and could increase inventory if not carefully managed.

Reference

'Lean Thinking: Banish Waste and Create Wealth in Your Corporation' by James P. Womack and Daniel T. Jones.

'The Lean Six Sigma Pocket Toolbook' by Michael L. George, John Maxey, David Rowlands, and Mark Price.

Question 6

A company has decided to source, manufacture, and distribute its products from its own facilities located throughout the world. This strategy is best described as:

Ahorizontal integration.

Ba universal distribution system.

Cvertical integration.

Dan outsourced supply chain.

Answer : C

Definition: Vertical integration occurs when a company controls multiple stages of its supply chain, from raw materials to the final product distribution.

Horizontal Integration (Option A): This refers to the acquisition of competitors or expansion within the same stage of the supply chain, not across multiple stages.

Universal Distribution System (Option B): This is not a standard term in supply chain management and does not accurately describe the scenario.

Vertical Integration (Option C): The company is sourcing, manufacturing, and distributing products from its own facilities globally, indicating control over multiple stages of the supply chain, characteristic of vertical integration.

Outsourced Supply Chain (Option D): This would imply reliance on external partners for various supply chain functions, which is not the case here. Reference: Supply Chain Management literature, Vertical Integration studies.

Question 7

The most useful inventory costing method which enables purchase price variance analysis is:

Aaverage costing.

Bstandard costing.

Clast in first out (LIFO) costing.

Dfirst in first out (FIFO) costing.

Answer : B

Standard costing involves assigning expected costs to products, including materials, labor, and overhead. This method allows companies to set cost standards and then analyze variances between the actual costs and the standard costs. Purchase price variance analysis specifically examines the differences between the actual price paid for materials and the standard price. This variance analysis is crucial for identifying cost-saving opportunities and managing purchasing performance. Other costing methods like average costing, LIFO, and FIFO do not provide the same level of detail for analyzing purchase price variances. Reference:

Horngren, C. T., Datar, S. M., & Rajan, M. V. (2015). Cost Accounting: A Managerial Emphasis. Pearson.

Blocher, E. J., Stout, D. E., & Cokins, G. (2018). Cost Management: A Strategic Emphasis. McGraw-Hill Education.

APICS Certified Supply Chain Professional CSCP Exam Practice Test