Question 1

Which of the following modes of transportation requires the lowest fixed investment?

Accepted Answer

Water transportation typically requires the lowest fixed investment due to the fact that it operates on natural waterways that already exist and do not require significant construction or maintenance. Additionally, water transport vessels can often be repurposed for various types of cargo, making them a more versatile and cost-effective option compared to other modes of transportation.

Question 2

A warehouse supervisor has discovered a shortage of material to fulfill a customer order. If the inventory report shows that there should be enough material to fill the order, what should be done next?

Accepted Answer

The answer of A warehouse supervisor has discovered a shortage...

Question 3

A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of its trucks and now purchases transportation services from fleet operators. This is an example of using which of the following distribution models?

Accepted Answer

This is an example of using a third-party logistics (3PL) provider, as the company has outsourced its transportation services to a fleet operator.

Question 4

Known barriers to implementing an integrated supply chain are:

Accepted Answer

The answer of Known barriers to implementing an integrated supply...

Question 5

A supply chain manager wishes to reduce the time required to execute the order delivery process. Which of the following would be an appropriate first step for this initiative?

Accepted Answer

The answer of A supply chain manager wishes to reduce...

Question 6

Inbound logistics is a supply chain management term used for?

Accepted Answer

The answer of Inbound logistics is a supply chain management...

Question 7

Which of the following arguments are made against traditional accounting methods for logistics expenses to an organization?

Accepted Answer

Traditional accounting methods often aggregate costs in a way that obscures specific logistics costs, making it difficult to identify and manage them effectively.

Question 8

In which of the following forms of electronic commerce do suppliers attempt to offer the lowest price to buyers?

Accepted Answer

The answer of In which of the following forms of...

Question 9

Which of the following actions is most likely to reduce inventory carrying costs?

Accepted Answer

Initiating a vendor-managed inventory (VMI) program shifts the responsibility of maintaining inventory levels to the vendor, reducing the need for the company to hold excess inventory and thus reducing inventory carrying costs. Utilizing ABC classification, standardizing items, and setting minimum inventory levels may help optimize inventory levels, but may not necessarily reduce carrying costs.

Question 10

Producing finished goods in a manufacturing environment has which of the following financial impacts?

Accepted Answer

The answer of Producing finished goods in a manufacturing environment...

Question 11

Implementation of a measurement system of perfect orders is most likely to allow a firm to measure:

Accepted Answer

The answer of Implementation of a measurement system of perfect...

Question 12

An organization that is committed to sustainable business operations typically would focus on:

Accepted Answer

An organization that is committed to sustainable business operations will focus on balancing the economic, environmental, and social effects of its operations. This means not only minimizing its impact on the environment and minimizing the impact on the societies in which it operates, but also ensuring that it is economically sustainable and beneficial to stakeholders. It involves finding a long-term balance that benefits all aspects of the organization's operations.

Question 13

A company is considering changing its manufacturing strategy from engineer-to-order (ETO) to make-to-order (MTO). Which of the following risks should the company be careful to consider?

Accepted Answer

Switching from ETO to MTO may increase work in process (WIP) inventory since production will not start until after the order is received. This can lead to increased costs and inefficiencies in managing inventory. The other options may also be risks, but they are not as closely related to the switch from ETO to MTO.

Question 14

Which of the following strategies would be most appropriate for a company that is facing shorter product life cycles and rapidly changing customer demands?

Accepted Answer

Developing agile operations would be the most appropriate strategy for a company facing shorter product life cycles and rapidly changing customer demands. Agile operations enable a company to quickly and effectively respond to market changes by being flexible and adaptable in its processes and operations. This allows the company to bring new products to market more quickly and efficiently than its competitors. Outsourcing non-value-added functions, implementing strategic sourcing, and eliminating levels in the supply chain may also be beneficial strategies, but they may not directly address the issue of short product life cycles and rapidly changing customer demands in the same way that developing agile operations would.

Question 15

Which of the following actions most accurately describe the enforcement for violations of the Global Reporting Initiative (GRI) sustainable reporting guidelines?

Accepted Answer

The answer of Which of the following actions most accurately...

Question 16

The primary purpose for establishing trade blocs is to:

Accepted Answer

The primary purpose of trade blocs is to remove trade barriers between member countries in order to promote free trade and economic cooperation. This may include eliminating tariffs, quotas, and other barriers to trade. While trade blocs may establish common methodology for transportation of goods and reporting regulations for trade within the bloc, these are secondary goals to the main objective of removing trade barriers. Organizing and establishing common currency exchange rates is not a primary purpose of trade blocs, although some trade blocs may adopt a common currency (such as the Eurozone).

Question 17

One benefit of the project closure phase is the review of:

Accepted Answer

The project closure phase involves reviewing the lessons learned during the project. This allows the project team to identify areas for improvement and incorporate these improvements into future projects. Reviewing KPIs, standards, and previous project files may be part of the closure phase, but the primary focus is on lessons learned.

Question 18

Mass customization results in savings due to economies of scale and which of the following additional benefits?

Accepted Answer

Mass customization allows for differentiation of products to target different markets, which can increase appeal and ultimately lead to higher sales and revenue. While mass customization does result in some economies of scale, choices A, C, and D do not accurately describe additional benefits of mass customization.

Question 19

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

Accepted Answer

Electronics typically have a high value of recoverable materials and parts that can be used for remanufacturing. This is why they are more likely to have a disposition of remanufacturing in their reverse logistics process.

Question 20

Which of the following actions is most likely to lead to successful implementation of sales and operations planning (S&OP)?

Accepted Answer

Executing the process every month ensures regular review and alignment between sales and operations, which is crucial for successful S&OP implementation.

Exam 3: APICS Certified Supply Chain Professional