Question 1

When designing a supply chain for strategic advantage, a company first should consider:

Accepted Answer

Matching the supply chain to product type is the best choice because it ensures that the company's supply chain is optimized to meet the unique requirements of the product being produced. For example, a company producing perishable goods will need a supply chain that can quickly and efficiently transport the goods to market, while a company producing custom-made machinery will need a supply chain that can efficiently source and deliver specialized parts. By matching the supply chain to product type, a company can achieve greater efficiency, reduce costs, and gain a strategic advantage.

Question 2

A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:

Accepted Answer

D

Question 3

The primary objective of supply chain management is:

Accepted Answer

The primary objective of supply chain management is taking a systems approach, which means managing the entire chain of activities involved in delivering a product or service to customers. While minimizing transportation costs and reducing inventory levels are important aspects of supply chain management, they are not the primary objective. Implementing advanced technologies can also be a part of supply chain management, but it is not the primary objective.

Question 4

Which of the following considerations is an important supply chain design decision?

Accepted Answer

Selecting supporting information systems is an important supply chain design decision because it enables efficient communication and collaboration within the supply chain network. It also helps in tracking inventory, monitoring production processes, and identifying areas for improvement. Product design, labor force requirements, and training programs are important considerations, but they are not directly related to supply chain design.

Question 5

The primary reason for the evolution of the supply chain is:

Accepted Answer

The answer of The primary reason for the evolution of...

Question 6

The question below is based on the following flowchart:  Which of the following phrases most accurately describes the complete flow of demand information?

Accepted Answer

The flowchart shows that the demand information starts with the customer placing an order, which is then sent to the supplier. The supplier then fulfills the order and sends the completed products back to the customer, completing the flow of demand information from customer to supplier. Therefore, the most accurate description of the complete flow of demand information is from customer to supplier.

Question 7

Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

Accepted Answer

Risk pooling is based on the assumption that aggregate demand is more accurate than disaggregate demand. This means that by pooling demand across multiple locations or products, the overall demand variability is reduced, allowing for a lower total inventory level without affecting service levels. The other options are not directly related to the assumption of risk pooling.

Question 8

A remanufacturer of equipment is most likely to have what type of supply chain?

Accepted Answer

A remanufacturer of equipment deals with reverse logistics as they take used or returned products and refurbish them into new or like-new condition. Hence, the remanufacturer is most likely to have a reverse supply chain.

Question 9

Which of the following attributes typically makes reverse logistics processes more complicated than outbound logistics processes?

Accepted Answer

Reverse logistics involves the return of products or materials that have already been shipped, which may result in packages and cartons being in a less uniform condition. Outbound logistics typically involve shipping new and uniform products.

Question 10

The use of a seasonal index as a forecasting technique measures the ratio of the:

Accepted Answer

Seasonal index measures the ratio of the average demand for a particular season to the average demand for all periods. It helps in forecasting the demand in that particular season based on historical data. Thus, option A - average seasonal demand to the average demand for all periods, is the correct answer.

Question 11

Which of the following types of information would be an appropriate basis for a qualitative forecast?

Accepted Answer

The answer of Which of the following types of information...

Question 12

Which of the following scenarios represents a correct application of the Supply-Chain Operations Reference-model (SCOR)?

Accepted Answer

SCOR is a process reference model that helps to improve supply-chain management practices. It outlines best practices for managing operations, including plan, source, make, deliver, and return. Option B correctly applies the SCOR model by using its best practices to design a new "make" process flow. The other options do not correctly apply the SCOR model: option A refers to improving demand generation, which is not directly related to supply-chain management; option C mentions selecting suppliers from the SCOR reference list, which does not necessarily mean that the suppliers are the best fit for the company; and option D refers to incorporating SCOR Level I metrics for new product design, which may not be applicable without a clear understanding of the company's supply-chain management process.

Question 13

In addition to sales history, current customer orders, and forecasted demand, which of the following data sources should be used as part of a demand management process?

Accepted Answer

The answer of In addition to sales history, current customer...

Question 14

The factors to consider in the make-or-buy decision include costs, proprietary knowledge, and:

Accepted Answer

Available capacity is a key factor to consider in the make-or-buy decision. It is important to assess whether the company has the capacity to manufacture the product or provide the service in-house, or if it would be more cost-effective to outsource it to another company that has the capacity. Costs and proprietary knowledge are also important factors, but available capacity should not be overlooked. Design history, inventory balance, and warehouse location are not as critical when it comes to the make-or-buy decision.

Question 15

The focus of collaborative supply chain management differs from a transactional approach by its emphasis on the:

Accepted Answer

Collaborative supply chain management emphasizes the flow of demand information and cash up the chain in order to improve communication and coordination among partners in the supply chain. This approach also emphasizes collaboration and mutual benefits instead of a purely transactional relationship.

Question 16

Compared to a global strategy, a multicountry strategy would be characterized by:

Accepted Answer

A multicountry strategy involves adapting products to local needs, whereas a global strategy involves standardized products. Therefore, the best choice is D. Choices A, B, and C do not differentiate between global and multicountry strategies.

Question 17

After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?

Accepted Answer

Identifying the root causes for the delays will help the trading partners to understand the underlying issues that cause delays in communicating demand information up the supply chain. Once the root causes are identified, they can take appropriate measures to address them. Implementing a higher-speed data communications network and changing procedures to communicate data more frequently are tactical measures that may not address the root causes of the problem. Mapping and analyzing the value stream may help to identify areas that require improvement, but it may not necessarily provide insight into the root causes of the communication delays.

Question 18

Which of the following corporate strategies is most consistent with a flexible supply chain strategy?

Accepted Answer

A flexible supply chain strategy aligns with providing the highest-quality service, as it requires adaptability to meet varying customer demands and service levels.

Question 19

Which of the following situations is an example of postponement?

Accepted Answer

Postponement is the process of delaying the final assembly or customization of a product until the customer order is received. In this case, partially assembled goods are assembled at a later stage, which is an example of postponement.

Question 20

The process of gathering data about what customers need and ensuring that desired features are included in the design and initial planning phase of a new product or service is known as:

Accepted Answer

Quality function deployment is a process that involves gathering data about customer needs and wants and using it to guide the design and planning of a new product or service. This ensures that the product or service will meet the needs of customers and be successful in the marketplace. Quick response programs, total quality management, and early supplier involvement are all related to quality management but do not specifically involve gathering customer data for product or service design.

Exam 3: APICS Certified Supply Chain Professional