Question 1

Which of the following statements about warehouse layout and storage is correct?

Accepted Answer

A typical warehouse is engaged in a combination of short-term and extended storage alternatives. While product weight is a factor in warehouse layout, it is not the only factor. Products with low volume may not necessarily be placed at the lower level in storage racks since other factors such as accessibility and demand may also play a role. Warehouses that utilize fixed location storage may not necessarily minimize space requirements since it may result in unused space and inefficient use of available assets.

Question 2

A primary objective of a lean enterprise is to:

Accepted Answer

The primary objective of a lean enterprise is to analyze and focus the value stream along all functions to maximize value for the ultimate customer. This involves identifying and eliminating any waste or inefficiencies in the production process, while also increasing quality and reducing costs. By optimizing the value stream, a lean enterprise can better serve the needs of its customers and remain competitive in the marketplace. While continuous improvement and supplier certification are important aspects of a lean enterprise, they are secondary to the goal of maximizing value for the customer.

Question 3

Which of the following measures best describes fill rate?

Accepted Answer

Fill rate is a measure of how effectively a company is able to meet customer demand with its available inventory. Therefore, the best measure would be the percentage of demand satisfied by available inventory (choice C). Option A and B are related to inventory turnover and not specifically related to fill rate. Option D is related to order processing and not fill rate.

Question 4

Which of the following indicators is most appropriate to use as a measure of supply chain utilization?

Accepted Answer

Net asset turns, also known as inventory turns, is a financial ratio that measures how efficiently a company is using its assets to generate revenue. In the context of supply chain management, it reflects how often the inventory is sold and replenished in a given period. A high net asset turns value indicates that the supply chain is being utilized effectively, whereas a low value indicates inefficiencies. Therefore, it is the most appropriate indicator among the given options to measure supply chain utilization.

Question 5

Enterprise resources planning (ERP) is defined as a:

Accepted Answer

ERP is a framework that helps businesses organize, define, and standardize processes to gain a competitive advantage. It involves integrating all aspects of a business, including sales, finance, operations, and supply chain management, into a single system to improve efficiency and effectiveness. The other options describe specific functions within a business but do not fully capture the scope of ERP.

Question 6

A main benefit of using customer relationship management (CRM) is:

Accepted Answer

The main benefit of using customer relationship management (CRM) is identification of customers with high lifetime value, which means identifying customers who are likely to make repeat purchases and generate more revenue for the company in the long run. While on-time delivery and minimizing product returns are important aspects of customer satisfaction, they are not the main benefits of using CRM. Finding new markets for existing products and services is a marketing strategy that is not necessarily related to CRM.

Question 7

Companies are more likely to consider the consequences of their product design decisions when they view the reverse supply chain as an extension of the:

Accepted Answer

Viewing the reverse supply chain as an extension of the forward supply chain can help companies understand the full lifecycle of their products, including their end-of-life stages. This can lead to a greater consideration of environmental and social impacts, as well as potential opportunities for product recovery and reuse. Considering the reverse supply chain as an extension of the marketing or sales and operations planning process may not necessarily lead to the same level of consideration for these factors. The manufacturing process may have some overlap with the reverse supply chain, but it may not capture the full scope of product impacts and opportunities.

Question 8

The primary reason for a firm to pursue strategic supply chain activities is to:

Accepted Answer

Pursuing strategic supply chain activities can help a firm differentiate itself from competitors and gain a competitive advantage in the market. While reducing costs, increasing productivity, and decreasing product lead time are all potential benefits of strategic supply chain activities, the ultimate goal should be to create a unique position in the market that is difficult for competitors to replicate.

Question 9

Replacing a raw material in a manufacturing process with an alternate material that reduces emissions is an example of using:

Accepted Answer

The answer of Replacing a raw material in a manufacturing...

Question 10

One key factor to consider when selecting suppliers for their potential to sustain long-term, mutually profitable relationships is:

Accepted Answer

The answer of One key factor to consider when selecting...

Question 11

A company has been delivering a global product that no longer appears profitable. Senior management's best response is to:

Accepted Answer

By analyzing product profitability by market segment, senior management can identify which regions or segments are still profitable and can make decisions on how to allocate resources accordingly. Simply discontinuing the product or providing additional incentives to the sales force may not solve the underlying profitability issue. Increasing promotional activity across all markets may also not be effective if the issue lies with the product itself.

Question 12

Which of the following actions by a group of trading partners is most likely to quickly improve their economic performance?

Accepted Answer

The answer of Which of the following actions by a...

Question 13

Cost reduction, improvement of company focus, and freeing assets from noncore activities are among the results achieved through effective implementation of:

Accepted Answer

The answer of Cost reduction, improvement of company focus, and...

Question 14

Keeping all other factors equal, a company typically will try to maintain higher service levels for products with:

Accepted Answer

Products with higher profit margins are more valuable to the company and warrant higher service levels as a means of maintaining and increasing profitability.

Question 15

A company has significant cash invested in its finished goods inventories. What action can this company take to significantly reduce its inventory investment while maintaining its customer service levels?

Accepted Answer

The answer of A company has significant cash invested in...

Question 16

Which of the following methods is used to minimize the bullwhip effect?

Accepted Answer

Demand-driven material requirements planning (D,D,M,R,P,) is a relatively new type of ordering system that can be used for dependent and independent demand items at any point in the supply chain. D,D,M,R,P, strategically positions inventory to achieve all the benefits of modern supply chain management (reduce inventory, lead times to the customer, and the bullwhip effect and increase customer service and asset usage efficiency) without needing to rely on safety stocks of finished goods or a pure make-to-order environment. Instead, D,D,M,R,P, determines how to shrink total lead times by creating buffer inventories of key components that have longer lead times than other components making up a finished good.

Question 17

A firm supplies a single line of products to consumers using retail stores and on-line sales, distributors, and wholesalers.  Currently the firm has common pricing and response times for sales in each sales channel.  Which of the following tools is most appropriate to employ to improve profitability?

Accepted Answer

Customer segmentation would help the firm identify different groups of customers based on their buying behavior and preferences, allowing the firm to tailor their pricing and response times to each group's unique characteristics. This can help improve profitability by focusing efforts on the most profitable customer segments and adjusting pricing strategies to capture more value. Customer-facing ordering systems, CRM, and SCOR® are also useful tools, but may not be as effective in addressing the specific issue of improving profitability in this scenario.

Question 18

When determining lot sizes, consideration should be given to balancing which of the following costs?

Accepted Answer

The answer of When determining lot sizes, consideration should be...

Question 19

Which of the following documents includes the valuation of goods for assessment of duties?

Accepted Answer

The commercial invoice includes the valuation of goods for assessment of duties.

Question 20

A company distributes products through a multitiered distribution network. Recently there has been high demand variability for a mature product that had experienced stable demand for several years. The most appropriate way to address the variability of demand is to:

Accepted Answer

The answer of A company distributes products through a multitiered...

Exam 3: APICS Certified Supply Chain Professional