APICS Certified in Transformation for Supply Chain Exam Practice Test

Answer : A

According to the CTSC Learning System, one of the factors that affects the distribution costs is the cost of implementing the new materials flow network, which includes the costs of designing, building, and operating the network of warehouses, distribution centers, and transportation modes1. The cost of implementing the new materials flow network can be significant and should be included in the calculation of the total cost of ownership (TCO) of the distribution system1. The other factors listed in the question are not directly related to the distribution costs, but rather to the inventory costs, which are a separate component of the TCO1.

Answer : C

Nearshoring is the practice of relocating business processes or services to a nearby country, usually one that shares a border or is in the same region1. Nearshoring can help companies reduce costs, improve quality, and increase responsiveness to customer needs. Nearshoring is different from offshoring, which is moving business processes or services to a distant country, usually to take advantage of lower labor costs or favorable tax regimes2. Nearshoring is also different from insourcing, which is performing business processes or services internally within the company3. Nearshoring is also different from outsourcing, which is contracting out business processes or services to a third-party provider, regardless of the location.

Answer : B

Answer : D

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, a thread diagram is a process view of the geographic map that illustrates the material flow, material strategy, and the planning process relationship1. A thread diagram shows the sequence of activities and decisions that are involved in transforming raw materials into finished products and delivering them to customers1. It also shows the locations of the facilities, the transportation modes, the inventory policies, and the planning horizons1. A thread diagram helps to identify the key drivers and constraints of the supply chain performance, and to evaluate the trade-offs and synergies among different supply chain components1.

1: https://www.ascm.org/ctsc-ecm/

Answer : A

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, one major performance outcome of a digital supply chain transformation is fewer trade-offs between costs and customer satisfaction1. A digital supply chain transformation is the use of digital technology and digital content to improve supply chain performance2. It enables a flexible matrix of supply chain partners, instead of one upstream and one downstream echelon2. It also enhances information sharing, visibility, decision making, and responsiveness2. By leveraging digital capabilities, a supply chain can achieve higher levels of efficiency, agility, and innovation, while meeting or exceeding customer expectations1. This reduces the need to compromise on either costs or customer satisfaction, and creates a competitive advantage for the supply chain1.

1: https://www.ascm.org/ctsc-ecm/ 2: https://www.hclspdev.com/cdn/ascm2023/files/ctsc_slides/ASCM_CTSC_2023_1.pdf

Answer : A

According to the ASCM CTSC Exam Content Manual, one of the first steps in developing a transformational supply chain strategy is to ''determine the current and future needs and expectations of the customers, and align the supply chain strategy with the business strategy and customer value proposition'' (p.16)1. This helps to ensure that the supply chain transformation is customer-centric and focused on delivering value to the end users. The other options are also important, but they should be done after the initial determination of the customers' needs.

Answer : A

According to the ASCM CTSC Exam Content Manual, one of the first steps in developing a transformational supply chain strategy is to ''determine the current and future needs and expectations of the customers, and align the supply chain strategy with the business strategy and customer value proposition'' (p. 16). This helps to ensure that the supply chain transformation is customer-centric and focused on delivering value to the end users. The other options are also important, but they should be done after the initial determination of the customers' needs.