APICS CTSC Exam Practice Test Instant Access

Question 1

When planning to reduce distribution costs, which of the following factors is important to include in the calculation?

ACost of implementing the new materials flow network

BProjected operating cost increases for inventory control

CThe cost of capital in warehousing

DThe costs of excess and obsolete inventory

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.

Question 2

Which stage of the supply chain five-stage maturity model corresponds to having practices and processes better defined, some integration across supply chain functions, and limited integration with

other functions and with supply chain partners?

AStage 1

BStage 2

CStage 3

DStage 5

Answer : C

Question 3

A widget manufacturing company wants to embark on a digital supply chain transformation journey. Which of the following activities should the company's leadership focus on in the beginning?

AIdentifying areas of the business that can benefit the most from this in order to prioritize resources

BIncorporating this initiative in the budgeting process and asking the procurement team to research potential vendors in this space

CProviding a clear roadmap to the business and establishing conditions for greater process integration and cross-functional collaboration

DHiring digital consultants and subject matter experts that can effectively advise the company at all stages in this journey

Answer : A

According to the ASCM CTSC Exam Content Manual, one of the first steps in initiating a digital supply chain transformation is to ''identify the business drivers and opportunities for transformation, and prioritize them based on their potential impact and feasibility'' (p. 15). This helps the company's leadership to align the transformation objectives with the strategic goals of the organization, and to allocate resources accordingly. The other activities mentioned in the options are also important, but they should be done after the initial identification and prioritization of the areas of the business that can benefit the most from the transformation.

Question 4

When developing risk plans for supply chain segments, which of the following product categories should have the most complete and thorough risk mitigation plans?

AImportant products that require ocean transport for delivery

BImportant products that must be kept cold

CImportant products where there is a single available supplier

DImportant products that are government regulated

Answer : C

According to the ASCM CTSC Exam Content Manual, one of the factors that influences the risk exposure of a supply chain segment is the availability of alternative sources of supply (p. 20). If there is only one available supplier for an important product, the supply chain segment is more vulnerable to disruptions and uncertainties, such as supplier failure, quality issues, price fluctuations, or geopolitical events. Therefore, this product category should have the most complete and thorough risk mitigation plans, which may include strategies such as developing backup suppliers, increasing inventory buffers, diversifying sourcing locations, or implementing contractual agreements.

Question 5

A company realizes its delivery cycle time is longer than its competitors'. What capability does this company need to improve?

AEnterprise business plan reconciliation

BConfiguration management

COptimal path selection

DFrictionless ordering

Answer : C

Question 6

A comprehensive supply chain transformation action plan is mainly focused on which of the following outcomes?

ASupply chain strategy being integrated with the business strategy to achieve top and bottom line improvements

BTraditional metrics around supply chain performance being well developed across the organization

CPerfect order targets being met while inventory levels always remain desirable

DBest practices around Plan, Source, Transform, and Fulfill processes being part of daily business operations

Answer : A

According to the ASCM, a comprehensive supply chain transformation action plan is a roadmap that guides the organization to align its supply chain strategy with its business strategy, and to achieve higher performance, efficiency, and sustainability in its supply chain operations1. The main outcome of such a plan is to enable the organization to deliver better value to its customers and stakeholders, and to improve its top and bottom line results1. Some of the steps involved in creating a supply chain transformation action plan are:

Assessing the current state of the supply chain and identifying the gaps and opportunities for improvement

Defining the future state of the supply chain and setting the vision, goals, and objectives

Developing the business case for change and securing the buy-in and support from the senior management and cross-functional teams

Selecting the best practices, methodologies, and technologies to implement the change and optimize the supply chain processes

Executing the change and monitoring the progress and results1

The other options are not the main focus of a comprehensive supply chain transformation action plan, but rather some of the aspects or outcomes of the plan. For example, traditional metrics around supply chain performance are important to measure the current state and the improvement potential, but they may not capture the strategic value and impact of the supply chain transformation2. Perfect order targets and inventory levels are some of the operational goals that the plan may aim to achieve, but they are not the ultimate outcome of the plan3. Best practices around Plan, Source, Transform, and Fulfill processes are some of the tools and methods that the plan may use to optimize the supply chain operations, but they are not the purpose of the plan4. Therefore, the most accurate answer is A.

Question 7

A company receives customer complaints that their inquiries are being forwarded multiple times to different departments, but customers still could not reach the right department for resolution. What

is the most appropriate activity to identify the gap?

AConduct benchmarking.

BSelect different metrics.

CEstablish a collaborative model.

DPerform RACI analysis.

Answer : D

According to the ASCM, a RACI analysis is a tool that clarifies the roles and responsibilities of different stakeholders in a business process or activity1. RACI is an acronym for Responsible, Accountable, Consulted, and Informed, which are the four types of participation that a stakeholder can have in a task2. A RACI analysis can help identify the gaps and overlaps in the assignment of tasks, and ensure that everyone knows what they are expected to do and who they need to communicate with1. In the case of the company that receives customer complaints, a RACI analysis can help them understand why their inquiries are being forwarded multiple times to different departments, and who is the right person or department to resolve them. A RACI analysis can also help them improve their customer service process and avoid confusion and frustration among customers and employees1. Therefore, performing a RACI analysis is the most appropriate activity to identify the gap.

APICS CTSC Certified in Transformation for Supply Chain Exam Practice Test