Question 1

The purpose of a supply chain metrics dashboard is to:

Accepted Answer

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Question 2

The most effective means to measure customer loyalty would use which of the following approaches?

Accepted Answer

Analyzing customer repurchase patterns is a direct indicator of customer loyalty, as it reflects the customer's decision to continue buying from the same company.

Question 3

A company plans to implement a new software application for inventory optimization. Which of the following actions will most likely reduce the implementation time?

Accepted Answer

Hosting the new software on secure cloud servers can reduce implementation time as it eliminates the need for purchasing infrastructure and hardware, and the software can be accessed from anywhere. Additionally, the software provider is responsible for maintaining and upgrading the infrastructure, which reduces the burden on the company.

Question 4

Which of the following four perspectives are used in the balanced scorecard?

Accepted Answer

The four perspectives used in the balanced scorecard are customer, operations (internal process), financial, and workforce learning and growth. Choice C includes all four of these perspectives. Choice A includes workforce learning and growth but not operations. Choice B includes operations but does not include workforce learning and growth. Choice D includes marketing but not operations or workforce learning and growth.

Question 5

A clothing company focuses its attention on high-fashion products and rapid product development. Which of the following types of value is the company trying to create?

Accepted Answer

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Question 6

Which of the following forecasting techniques is most appropriate when data is scarce?

Accepted Answer

The Delphi method is most appropriate when data is scarce as it relies on expert opinions and does not require a large amount of historical data. The method involves collecting information and opinions from a group of experts and using their insights to forecast future trends. The other methods listed require more data and statistical analysis to be effective.

Question 7

A company is transitioning its fulfillment strategy from direct consumer shipment to shipping through an intermediary. Which of the following impacts can be expected?

Accepted Answer

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Question 8

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?

Accepted Answer

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Question 9

Which of the following statements best characterizes the use of the Supply Chain Operations Reference (SCOR) model?

Accepted Answer

The Supply Chain Operations Reference (SCOR) model is used to describe and improve any supply chain, not just for distribution planning or reverse logistics. It is a framework that helps organizations understand and optimize all aspects of their supply chain, from sourcing materials to delivering finished products to customers. While it may be used in conjunction with ISO 9000 standards, it is not a requirement for them.

Question 10

A benefit of using radio frequency identification (RFID) instead of bar coding would be:

Accepted Answer

RFID technology allows for the simultaneous reading of multiple tags, unlike barcodes which require line-of-sight and can only be scanned one at a time.

Question 11

The six sigma approach to quality focuses on increasing customer satisfaction by:

Accepted Answer

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Question 12

One of the drawbacks to using ISO 26000 is that it:

Accepted Answer

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Question 13

A manufacturer of innovative products needs to focus on which of the following factors?

Accepted Answer

A manufacturer of innovative products needs to focus on time-to-market, as being the first to market with a new product can give the company a competitive advantage. Cost per unit, component inventory levels, and equipment utilization are important factors for all manufacturers, but they may not be the top priority for a company focused on innovation.

Question 14

Interpersonal communication skills and negotiation with suppliers is important because it:

Accepted Answer

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Question 15

Which of the following characteristics are reflective of a resilient supply chain?

Accepted Answer

A resilient supply chain is proactive in anticipating events, such as natural disasters, supplier bankruptcies, or trade conflicts, and is able to quickly recover from any disruptions caused by these events. This requires a focus on risk management, contingency planning, and agility in response to unexpected situations. Reactivity is not enough, as it can result in delayed responses and longer recovery times. Speed is also critical because disruptions can have cascading effects that increase costs, delay deliveries, and erode customer confidence. Therefore, a resilient supply chain must be both proactive and fast in its recovery efforts to maintain continuity and avoid major disruptions to its operations.

Question 16

Which of the following characteristics typically is required for a collaborative strategic relationship?

Accepted Answer

High levels of trust are typically required for a collaborative strategic relationship because it allows for open communication, shared decision-making, and a willingness to take risks together.

Question 17

Risk management assessment tools are common techniques used in which certification program?

Accepted Answer

Risk management assessment tools are commonly used in ISO 31000 certification program, which provides guidelines and principles for risk management. ISO 14000 focuses on environmental management, ISO 26000 focuses on social responsibility, and ISO 9000 focuses on quality management.

Question 18

Which of the following metrics compares the cost of goods sold (COGS) for a period to the average inventory cost for a period?

Accepted Answer

Inventory turnover ratio measures the number of times a company sells and replaces its inventory over a period. It compares the cost of goods sold (COGS) for a period to the average inventory cost for a period. This ratio indicates how quickly a company is turning over its inventory in order to generate sales. Therefore, the correct answer is B. Total cost per unit is not relevant in this context. Actual versus budget cost and carrying costs are different metrics that measure cost management and inventory management, respectively.

Question 19

In order to achieve economies of scale, a manufacturer is interested in producing large quantities. Which of the following functions of inventory will assist the manufacturer in achieving this goal?

Accepted Answer

Balancing supply and demand allows manufacturers to produce in large quantities and store excess inventory, thus achieving economies of scale by reducing per-unit costs.

Question 20

Unresolved conflicts from the sales and operations planning (S&OP) process will result in which of the following outcomes?

Accepted Answer

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Exam 3: APICS Certified Supply Chain Professional