APICS CSCP Exam Questions Instant Access - No Installation Required

Question 1

The United Nations Global Compact uses 10 guiding principles to:

Areduce uncertainty for multinational firms regarding legal, import/export, labor, and environmental standards across countries.

Bset minimum levels of compliance across a broad range of transactional areas for businesses operating in multiple geographic regions.

Calign the needs of businesses to increase profitability and the needs of individual countries to ensure their specific legal requirements are met.

Dhelp ensure that markets, commerce, technology, and finance promote advancement of economies and societies everywhere.

Answer : D

UN Global Compact Overview: The UN Global Compact is a voluntary initiative based on CEO commitments to implement universal sustainability principles and to take steps to support UN goals.

10 Guiding Principles: These principles cover areas such as human rights, labor, environment, and anti-corruption.

Objective: The primary goal of these principles is to promote responsible business practices and ensure that markets, commerce, technology, and finance can advance in ways that benefit economies and societies globally.

Explanation of Choice:

Option A: Reducing uncertainty for multinational firms is an outcome but not the primary purpose.

Option B: Setting minimum compliance levels is more regulatory and less about voluntary global advancement.

Option C: Aligning business needs with legal requirements is specific and less comprehensive.

Option D: Encompasses the broader goal of promoting global advancement through responsible practices.

United Nations Global Compact. (2020). The Ten Principles of the UN Global Compact. UN Global Compact.

Kell, G. (2005). The Global Compact Selected Experiences and Reflections. Journal of Business Ethics, 59(1-2), 69-79.

Question 2

Which two of the following factors are most important when considering whether to partner with a supplier?

AIntegration and communication

BShared visions and trust

CConcurrent engineering and vendor scheduling

DJust-in-time (JIT) delivery and quality

Answer : B, D

Question 3

A company recently announced a recall of imported lead-tainted toys sold through a network of retailers. The recall is related to which of the following attributes of an agile supply chain?

AVisibility

BVariability

CValue

DVelocity

Answer : A

Question 4

When multiple warehouses are combined into one centralized warehouse, the requirement for safety stock is reduced because:

Athere is less in-transit inventory.

Bthe total variability of demand is reduced.

Caverage cycle stock is reduced.

Dsafety stock becomes available-to-promise.

Answer : B

When multiple warehouses are combined into one centralized warehouse, the requirement for safety stock is reduced because the total variability of demand is reduced. This involves:

Demand Aggregation: Centralizing inventory consolidates demand from multiple locations, which tends to smooth out fluctuations and reduce overall variability.

Economies of Scale: Centralized warehousing benefits from economies of scale, reducing the need for high levels of safety stock to buffer against variability.

Improved Forecasting: With aggregated demand data, forecasting accuracy improves, allowing for more precise inventory management and lower safety stock requirements.

Risk Pooling: Combining inventories from multiple locations spreads the risk of stockouts and overstock across a larger pool, further reducing the need for safety stock.

Reference

'Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies' by David Simchi-Levi, Philip Kaminsky, and Edith Simchi-Levi

APICS, 'Inventory Management and Demand Variability Reduction Strategies'

Question 5

A company is concerned that a component in their product could be harmful if disposed in a landfill. Which of the following disciplines should they utilize?

AMultisourcing

BGlobal strategy

CGlocalization

DReverse logistics

Answer : D

When a company is concerned that a component in their product could be harmful if disposed of in a landfill, they should utilize reverse logistics. Reverse logistics involves the process of planning, implementing, and controlling the efficient flow of products, materials, and information from the point of consumption back to the point of origin for the purpose of recapturing value or proper disposal. This discipline includes recycling, refurbishing, and remanufacturing efforts to mitigate environmental impact and ensure safe disposal of potentially harmful components.

''Reverse Logistics: Quantitative Models for Closed-Loop Supply Chains'' by Rommert Dekker, Moritz Fleischmann, Karl Inderfurth, Luk N. Van Wassenhove

APICS Dictionary, 16th Edition

Question 6

A distributor wants to run a promotion on an item that a manufacturer has just introduced. Which of the following processes would provide the most useful input data for evaluating the impact of promotions?

ADemand planning

BProduction scheduling

CInventory management

DTransportation planning

Answer : A

Impact of Promotions on Demand: Evaluating the impact of promotions requires understanding how promotions influence customer demand. Demand planning involves forecasting and analyzing customer demand patterns.

Relevant Data: Demand planning provides historical sales data, predictive analytics, and customer insights that are critical for assessing the potential uplift in sales due to promotions.

Production, Inventory, and Transportation: While production scheduling, inventory management, and transportation planning are important, they do not directly provide data on customer demand, which is essential for evaluating promotion impacts.

Reference

Chopra, S., & Meindl, P. (2015). 'Supply Chain Management: Strategy, Planning, and Operation.' Pearson.

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

Question 7

Which of the following costing approaches directly reflects logistics performance?

AActivity-based

BTotal landed

CStandard

DWeighted average

Answer : A

Activity-based costing (ABC) is a method that assigns costs to products and services based on the resources they consume. Here's why ABC directly reflects logistics performance:

Cost Allocation: ABC assigns costs to specific logistics activities (e.g., warehousing, transportation, order processing) rather than spreading costs evenly across all products.

Performance Measurement: By linking costs to specific activities, ABC provides insights into the efficiency and performance of each logistics function.

Cost Drivers: Identifying cost drivers helps in understanding the factors that influence logistics costs, enabling better decision-making and process improvements.

Detailed Analysis: ABC allows for a more granular analysis of logistics costs, highlighting areas where performance can be improved to reduce costs.

Cooper, R., & Kaplan, R. S. (1991). The Design of Cost Management Systems. Prentice Hall.

Drury, C. (2013). Management and Cost Accounting. Cengage Learning.

APICS Certified Supply Chain Professional CSCP Exam Questions