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    371 views212 pages

    2013 Module 1 Book 1

    Uploaded by

    Tibi Rusu
    I don't own this.

    Copyright:

    © All Rights Reserved
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    of 212
    APICS Certified Supply Chain Professional” (XS > LEARNING SYSTEM Ty GO Cele RoaSt CUCU ICeCue Preparing for the Certification Exam Studying the APICS CSCP Learning System combined with on-the-job knowledge, profesional experience, and other APICS lerming tools, such a the APICS Ditonay, the most effective way to prepare Tor the [APICS CSCY cericatio examination, The APICS CSCP Learning Stem is imtended tc cover the body of Jnowledge tested bythe APICS CSCP cetifaton examination; however the APICS CSCP Learing ‘System doesnot teach the est” The Leaning System focuses on acquiring knowledge, whereas the exam ‘eas the candidate's ability o apply that knowlege in accordance with accepted industry andar ‘Content onthe exam is hased on real-world scenarios and requires candidates to apply the concept inthe [ADICS CSCP Learning Sytem, While both the APICS CSCP Learning System andthe APICS CSCP ‘ertiaton examination are based on the APICS CSCP Exam Content Manual which avilable for ee downlod a wane LearnCSCP.com > Resource Center > Certification Exam Resource) they ate ‘developed independently of one another. To preserve exam integrity, speci exam questions and their ‘edt are not shred withthe APICS CSCP Learing System developers. ntelectual Property and Copyright Notice All pited materials ia the APICS CSCP Learning System an ll material nd informatin in the ‘companion oaline component ae owned by APICS and proceed by United Sites copyright a as well as lnterational weaties and prtocals, including the Berne Convention. The APICS CSCP Learing System andthe companion Access Code fr the CSCP online component are for your personal ecational se only and may not be copie, repreduced, reprinted, moifed splayed, published, eansmited (leeroncaly of ‘there, eansered, sold, distbutd, leased, icersed, adapted, uploaded, downloaded or reformatted 1m addition to bsng illegal distibuting CSCP materials in violation of copyright avs wll the "og wefuies APICS invest tigi! sures o crest quay professional eopment ‘Opportunies Frits membership. Please do nt volte APICS" intellectual property ghia copyight Taw, APICS Dictionary, 13% Edition Reference ‘esinitons comaed wii he APCS CCP Leming System are consistent withthe APICS Drennan, "Bihan. You my pucse the conpee dictionary fom the APICS boost. Module 1—Book I Checklist: Fundamentals of Supply Chain Management Section Start Date Completion Date Section Quiz Score T-A: Supply chin management concep 1B Supply chan alignment wih business sinegy 1. Supply cin design and improvement consdertons| Inventory management "Look for this st onthe Web at www. LearnCSCP com. Course Overview and Module 1: Fundamentals of Supply Chain Management Book 1 Module 1, Book 1 Contents 2013 APICS CSCP EXAM CONTENT MANUAL (ECM) COURSE OVERVIEW i MODULE 1: FUNDAMENTALS OF SUPPLY CHAIN MANAGEMENT Introduction. Ma Section A: Supply Chain Management Concepts. 1 W'sa World of Global, Comples, Intedependent Supply Chains. 1B Basie Supply Cain bs ‘The SCOR” Model: Linking Process, Metrics, Best Paces, nd Techolosics 13 ‘Vetical versus Horizontal Integration Lis Supply Chin Management Objectives 124 ‘ply Chin Management Benefits 146 Accounting an Financial Statement Basics 152 Section B: Supply Chain Alignment with Business Strategy 168 ‘Bsines Strategy and Competitive Advantages 1-70 Organizational and Supply Chan Suateay, Prioritization, Capabilities, nd Alignment. 174 Resolving Misalignment or Gaps 1-106 Section C: Supply Chain Design and Improvement Considerations. hans Understanding the Marketplace ras Supply Chain Design Considerations rans Contimous Improvement bis ‘Section D: Inventory Management. Lass “The Ned for Inventory. Las Aggregate and em Inventory Management List Flow of Mater, Liss Funetions of lventory Wed Inventory-Reatd Cost Categories vist Effects of Inventory n the Finacial Statements. 1159 Module 1, Book 2 Contents ‘Section E: Logistics Fundamentals. Role of Lops a Suply Chan Management, Logistics Service Providers—3PLs and 4PLs. Reverse Logistics. Section F: Market Segmentation. Reasoas to Mey and Understand Market Segments Ways o Segment Marks Understanding the Wants and Nee f Each Segment. ‘Section G: Demand Planning Foreasting Demand Demand Manage Linkages Among the Elements. Demand Management Functional Respousibiliies and nerfs Section H: Customer Relationship Management (CRM) Concepts. New for CRM Scape of CRM. Elements of CRM Benefits of CRM Iemplementing CRM, [Nee for and Uses of Customer Inforation in CRM ‘Section I: Supply Management Concepts. “otal Cox of Ownership ‘Outsourcing an Onin, Make-vers-Buy Analysis Range of Buye- Supplier Relationships. Developing Supply Plans Sepplite Relationship Managernent (SRM) Imerrelatonship between CRM and SRM Bibliography. Cumulative Course Index © mrsarics ‘Version 11,2013 Eatin ‘Aoighseseved Qasr natn APICS Certified Supply Chain Professional™ (CSCP) Learning System ‘This product is based onthe APICS CSCP Exam Content Manual (ECM) developed by APICS. Although the text is ase on the body of knowledge ested by the APICS CSCP exam, progsam developers donot have access othe exam questions. Therefore, rang he text doesnot guarancea passing coe “The references in this manual have boon selected solely onthe bass ofthe educational value wo the APICS CSCP cetfcation program and onthe content ofthe material APICS des nt endorse any services other material tht my be offered or ecommended By the authors publishers of books and publications listed inthis module. Ever effort as been made to ensure that al informations curent and cont. However, avs and ‘regulations ae constantly changing Therefore, hs product is distbuted with the understanding that the publisher and autor are not ofering eal or professional services ‘Acknowledgments ‘We woul lke to thank the following dedicated subject mate experts who share thee time, experience, ad insihts daring the initial velopment and subsequent updates ofthe CSCP Learning Sytem: (re. lei De Jankowski CFM ESCP Maye Ra, CIM, CRM, “mobrata Bose, SCP Honey Johnson, PIM, CIRM, Kimber Roel, CPIM, CIRM, CSCP, |AlBaky,CEPIM, CIRM, CSCP_ "CPM CSCP ‘Co esis Cmpos Cats CPIM, CIRM, Rajesh Kant CSCP waco Stcter-Chigpe CPN PMP-CPAM,COIA,CH, Prank Kmper, PIM, CSCP__ Carlyn Sy, CPIM, SCP, CPM. (Scr, rsh, CPF PLS Sick Ker, CPIM, CSCP,CPM, Pano, PIM, CIRM, CSCP {ae Chale. PRD, CFPIM,CSCP— Jose Lar had Stl rae Chhiy, CSCP ‘ike Couenan SCP ‘Stn Ta, CPM, CSCP David. Dai CSCF,LSS Giga Lanes CFPIM, CSP HeanJau (Arta) Teng, CPIM, Blot “Thingy tan, CSCP scr Prasat K.Dish,CSCP.PMP aha et CrDIM, sce, ‘ave Taide CFPIM, CIRM. Sun De SCP cr Salep Vali, CSCP ‘Armd Desa, CPIM CIRM, Sean Mil, CSCP Rosemary Van Teck, CPIM, CIRM, scr, cr, crsh ‘Aen Milken, CIM, CRM, sce ‘Ate Dov, CPIM, CSCP sce ‘Wout Verwoerd, CEPI, CIRM Rlph< Ful CFPIM, CIRM, Plo Mond, CPIM, SCP ser ea) Petr W. Mary, HRN Robe Volos PhD, CFPIM, Laura. Grn, CSP RaeeeeieMiancscr _ eiRMLescr. CoM Ince Mla, CFPIM, CSCP te 1 Whiel CIM, CRM, : ashr Renan Poona, ‘Amt Kum ep, BE CSCP scr oa! So taeman CFPIM, CIRM, SCP Gast Chun Praia, cP, csc Vite Wik, CSCP EP Jok PRD, CFPIM,CSCP David River CPIM, CIRM, scr Will Jom,CEPIM CSP Rajesh Karr Fgnésswarn, CPIM, escr ‘ning rend Bee PEC CE PEL UL UU Ubu bus eu JUUUUY APICS CSCP Exam Content Manual This manual is in effect from January 1, 2013, through December 2013. Visit apies.org/ECMerrata for APICS CSCP Exam Content Manval errata “The refrencas inthis manval have boon selected slay onthe basis of tho educational value othe {PICS CCP catfcalon program and on te content of the materia APICS does ol endorse any ‘Soroes oF ater mates that may be ore orrecommandd bythe shore orpbleners of Bock {nd pubicaone Ist Ins manual (©2013 APICS The Assocation fr Operations Management 8490 West Bry Mawr Avenue, Suite 1000 (Chicago 60831-3430 USA home -b00-4442742 or 9-779-867-1777 Fave + 1-772-630-3000 "No porto of his document maybe reproduced under any ckcumstanos. CSCP isa ropitorod trademark of APICS ‘Stock #09091-2013 ss Table of Contents Ltr to Candidates oma tneducton roma [About the APICS.CSCP Examination ome vest Format om Tobin te Test Eom. Inarpreting Test Seores coms ‘Studying forthe APICS CSCP Exam, coma ‘APICS CSCP Reroncs, ec Terminology ecw Adena Resources for APICS CSCP Candidates, ecw -APICS CSCP Learning Sytem cma {APICS CSCP insctorLed Revow Courses coms ‘APICS Educational Programs ecm [APICS Carfed in Preducton and invertary Management (CPM) Basics of Supply Chin Managemant (SCN) Reviow Course and Examination. ems |APICS CCP Caaticaton Maintenance: Continuing Professional Development coms ‘The Importance of Catleston Malnenance coms [APICS Code of Ethics Eom /APICS Cottied Supply Chain Profesional (OSCP) ome ‘Scope of the Subject Mater ome PICS CSCP Content come Content Oxtine cur Key Terminotogy ecut2 ‘Supplamental Gtssary ecw Biboraphy cms Sample Questions. out? ‘Ancwors to Same Questions. omg (CSCP Exam Content Manual | PUL UL ECL LE UU UU Ue UY bo UU eye seuss UssEY Letter to Candidates eat Candate (On behalf ofa the members of APICS The Associaton for Operatens rein the Cate! Supply (Chain Protssonal (SCP) Suscomio, | want to thank ou for your inerest mn he APICS CSCP program. [APICS ie the global leader and premier source of he body of knowlege in eperatonsmanagemant, ling prosustn, iver, suply chain, purchasing, and [opetes. Size 157 ndhaduals and companies have ‘ied on APICS for is super trang, rtratonally ‘ecoghled certfeatons, comprehen resources, nd ‘ide network of accomplished ny professionals. ‘Te APICS CSCP program is primary intended for professionals in supply chan management ans ‘leagned to teat he candidate's knowledge of and ably to apply te supoy chan managerant buy of anlage. By caring tne APICS CSCP designation ‘anddates have demonetatd har understanding of ‘Suppy chain mansgement bes practices. The APICS CSCP program wal hlp you advance your ‘career hile ging you vaidaed foundational Iowlodgo fo asin mproven yeur company’s {compolve pasion snd prota. The program takes ‘broad view oe el, extending beyond internal ‘perations to encompass all to stops roughout the “tppl cain—ftom the supple, trough the company, {othe end consumer nthe reverse fou of product {and mater for the purpose of managing relums, fetubishing, Freeing, The program provides you with {he knowledge to efecbsly manage th tegration of these acti ta maniiza a company’ ave chain, “The subject mats organized into twee content are. Fundamentals of Supply Chain Management ‘Thi acto provides te foundation forthe exam by aderossing te concopts and satogios used fr ‘tlocve supply chan management Includes an ‘verow of supp ean managemens, managing he ‘suppl chain, and improving te sump chain ‘Strategy, Design, and Compliance ‘his encon addresses conssaationa inthe design ofa supply enn, the processes thal support he ‘xganzation's strategy, improvement of the sustainaiy ‘ofthe ergarizalon end trading partners, and ompkance wih appeable rgulaons and voluntary Standards Implementation and Operations This secon covers managing and balancing suppl and demand trough measutng, nalyzng, and enproving Supply chain processes ‘This PICS CSCP Exam Content Manat i inode to ride yu wth an overview of the program an cutis fits body of knowledge, key tormielogy. and Feferncee. The aut f hed ino tes chagnostc fareas, and th ave emphasis f each of the areas Is indestod by a percentage fque. A sample of 10. stave questions is also povided. The APICS CSCP Exam Content anal shou ot be te only reference you Use to prepare er he CSCP exam; homover, Should be Be fet Vo wish you sbocess in your pursuit ofthe CSCP designation, bby okie oly Wnte, CFP, CIRM, CSCP (SCP Subcommittee Cha (SCP Exam Content Manual ECH Introduction “This exam contnt manual provides guidance for {natiuae roparng fr he coieaton examination, ‘The ebecve of this marval so otinn tho APICS. (CSGPtosod body o krowledpe ‘The main section ofthis manual begins wha statement otha scope of th subjoct mati followed by 8 Aloscipve tin of te content. Key emingogy anda bibograpy of references are provided The secon ences wth sample questons sna thoce Pat appear on he examination, the correct answers for tho Samplo qestons, and bit explanations of uy they are ‘Te recommended procedure for mastering the subject mater 1 revi the content cutino, which eins the scope ofthe materi ‘+ sty ea ope, using he suggest references, [Nhe end ofeach major sections a st of the Teferencos that apply ote opie in hal ean. The feat number indeates the sequonce number fr tho rofeenco nthe Bbtegraphy secon, and the numbas Inparonhouse eae the chap) wits Yat reloronce ‘Candidates shoud understate dfnions of tho key toms and te appcaton ofthe csinod tol end tech Safco references are given tha provide ciferent approacies i the material covered in ach diagnose ara and afore siyos of presening te formation Reading ndstyelated poroaeas, such 93 PICS ‘magazine andthe PICS Operation: Management Now -newslotr,wll lp you martan an awarenoss of Shanges in he sate of heat About the APICS CSCP Examination ‘The APICS CSCP exam consi of 175 multiple choice estos, There a furor me it for te exam, Fer mote inlormaton abou testing and registration polces and procedures, cal APICS Customer Service ft -800-444-242 (Unto States and Canada), {3.867.177 and ogee 9 curren APICS CSCP Corifenton Bulan, or vist the APICS website at ples orplesep. Candidates who plano test a North ‘America shou roquest sock #00056, and candidatoe testing autede Norh Amica should request stock Question Format Allo the quostons onthe SCP examination ae Intndad ota no's understanding tie CSCP body a kode In adton itis bl reno to Uindortand the various formate of aston onthe ‘starnnaton. The otowing five examples strate the Types of multiple ceice quostons that one may ied on the examination For Example 1, choose th response that best complete the salen Example t The 60-20 ef an application of (A) statiseal process contol {@) defect mazsurement () rootcaure anaes (©) Pareto analy (The canoe answer fs) For Example 2 choose the respone hat best answers the question, Example 2 Which of the folowing is used ae koy porlrmance inal (KP) to measure variably of mana tough the supply cain? (A) but ooct (@) tate {) ivontry tums (0) ioral fare (Mhecarec answers A) For Example 3, choose the one response tha does NOT corset compos the slatomont. Example 3 Alo the folowing ae examples of ‘oe ofthe customer EXCEPT (A) collecting point a (POS) data (@) customer panal groups, () recoding tastomors potions wih recent purchases (0) Surveying customers onine (The coect answers A) Foc Example 4 and 5, evalu the statements and rove the MOST oF LEAST appropiate reponse, ‘he answer ino on person's opinion: tis he sccopod choice scooting tthe APICS body of rowed. ECM.2 ©2012 APICS The Association fr Operations Management [Example 4: The MOST sgifcant advantage of sSatage soulng (A) fing supptrs who can provide mates at (6) ting totnotogy to slot lowcost, high quay ouras of maar () deveoping tng erm supplier relationships (0) having a process or recuring wansactons wth sings suppliers (The cored answer is) Example 6 Which of tha folowing factors has ha ‘te LEAST impact onthe growth of customer ‘caionanip management? (increased customer expectations (@) reduced commodty pees (C) creased ease m comparizon shopping (0) ceducod coat of gaining now customers (Tho orc answers). Taking the Test ‘The tests dosgned fo evaluate a cancates nolo ofthe subst mater. Threor, De key to Sucooes 2 thorough understanding of he subjct ‘ator At questons ar based onthe cent CSP body of knowledge as defined in Bw exam contort ‘manual When you start your exam, rea a the drecons Cael Be sure you understand the drectons before you bogine answer ary questions. Read each question caret and norughly. ‘quostonincdos stmulus matora such a ab ‘apn, or stan, be sue study before you answor tho question Take care to avo assuming inormaton rat en. oc walla assuming you know wha boing ‘eked not reading the quotton complete, of ‘eeond guessing" the quos on Every fort Ras boon made o avid misleading wording ond peotde ‘on informaton reach question, Choose the best answer fom the choices gen, Cre has been taken to aod misleading choces, Dp not ok fer Mladen teks er exceptions ote norm Fr each ‘question, one and nly one othe fou ees FPpreseis th cect answer. 6 soem feu io you, Go onto the ther questions and Fou the dficat oes later f you have bm ou have some knowedge about a patcuar questo, you may bo ade te afin one of more chokes = Feerract Your sore onthe oe lb bated onthe amber ofquesions you arawer caret, wth no ona frincorectanewers; therfore, itis to your ‘vantage to guess raha than not answer a question. ‘voi! changing an ane ars you are bchtly Garant you markod the wrong anawer. Interpreting Test Scores Sean based on jour cect responses. Tere no Bona foneorct newer Tho omison ofon Snower wile ound the save ae an core nena ‘The APICS CSCP scaled score range 200-260. The ‘minum passing scores 200. You wi recive yur exam sae along wth gnostie evamaton on your patomance. Studying for the APICS CSCP Exam -APICS offer numberof resources to hep indus prepare forthe APICS CSCP examinabon APICS CSCP References ‘Bibliography. The APICS CSCP Examination Svocommitos ha lentes 2 numberof eerancas for the APICS CSCP examination. These are ited nthe Btsingraphy sactan of Ps mania Ae refrencos ‘conta exosont material at wl asset fst ‘reparation. Fer ston inormaton onthe PICS. SCP retorences ve APICS webste at ‘aplesorglesep, oF call APICS Customer Service at - ‘00-449:2742 (Und Stats ad Canada) or +-773- asri7rr ‘Acanddato may discover that he maria covarod in {he chaps of one relrence duptests rate ‘covered another reference. Both sources ae inched eferenogs fo allow candidates some dacrton in oct teat reparation male thal hey fd ccocbe and understandable In deising ia singe references sufcon. candidates ‘shoul aeess theron level of owed agains Both the deserpve examinaton specications and the ‘otated tpi ist contained ith content outro. ero far any areas of weakness, ie candidate should consult Snotorrelorence as part a the lot proparaton process. ts not practic! it al ots hat contain excellant rus student of uppy chain 0 wishes to say caret wih the stato of tho art wil take advarago of publeatons suchas those Istedin the compronanaive APICS Eavcatonal Resources Brochure (stock #0104), featuring APICS. (CSCP Exam Content Manual ECM. ‘eforence mates To receive he brochuso, cal APICS Customer Seven at 1-800-444-2742 (Ure States and (Canada) or#1773-867-1777, oF Shop APICS a sples.orglahop. Content outine. The conten uti povided in tis lcament shoul be coneired a primary resource tram repeat. Kpovies an overt ft majo {opie inched inthe exam ae wel a at of tho concepts hat ae levanttthal ope -APICS Dictionary. The APICS Dicfonary 13th eon, ‘San essen publican tha pesto the exam conn manual and exams. With tho profession, torminlogy varios among ndusies, companies, ant {ho academis communi. The examinaton utes Sandardtrminlogy a8 dso inthe APICS Detonary land the Supplemental Glossary actn inhi arn Recognizing te tems and understanding har ‘Setnitone areessonti. Terminology instudying forthe APICS.CSCP oericaton exam, Candas may discover muti tems Usd fo denote thosome toca, An xampie of ators treatin vers horizontal tegration. AICS has ‘tempi provide constancy with preter ierincay. However, sree at lon wed Suhre te varus references Used 0 comps he Bodo knowledge. Candidates are encouraged to be {era whats and concpts ed wan osc ‘ne and ey trminaony ston, un he APCS ‘Bicbonary as the primary gue for defor, The Supplemental Glossary, ckdodin ts mania proves redo atonal rarmotn eniie by the ‘ram commitoe. ‘Additional Resources for APICS CSCP Candidates Inaction othe ced rferences, tay be hep for you to pursue chaplersponsored courses, callepe Courses, APICS workshope,slrstay courses, oF outes offered by the APICS network of authored ‘education providers (AEPs) asa means of lesming the body of renege tat tsi ne caricaion rogram. A wide vty of courses ard materia Svafable. As wih any ehorIvestvent of be and ‘money, you shaudracerch various courses belo Investing one APICS CSCP Learning System “The APCS CSCP Leaming System isa comprehensive potessonal development and certain pepaston program. This sel drected program combines pn Matol and nine eters ss The system ‘ero minster fomat. ‘The APICS CSCP Learning System doos not tach the and in many areas rvions concep but does nol tach coneapis. The APICS CSCP Learing System proviges a torough revi’ ofthe subject mar, but Should not bo used wahout he most curent APICS {CSCP Exam Contant Manual as moans to doo the ‘andidat's toy, Thor wl ely be some content sr tho APICS CSCP Learning Stam ol covored by the ‘exam; conversely thor what ba somo cntnt inthe ‘ram ot covered by th leaning ystems, Thus, he vse ‘ofthe curt exam content mandala asset candidates ‘ih thse sexe, APICS CSCP Instructor-Led Review Courses. ‘The instuctoried format combines the APICS CSCP Laring System print an ann emponens withthe Ieadorsip a qualiie nstutor: peer calaboraton, ‘company newerting; and astute, se chose 0 Koop partpasan sc, Lear move about APICS Fecoglzed insur spies. org Fecognizedintructors ond ecl APICSarnors that Provide APICS CSCP courses apes orgie. For courses in Noth Ameria, vii the Parner and Event Fader onthe APICS wb a ples orgfinder ‘or cal APICS Custemor Serie at 800-444-2742 (Unt States and Canada) or 1-773-067-1777 ‘bain conae information for your local chapter. For outss cutsde Noth Ameic, vik ‘ples orgnarnational to est he nearest pats. APICS Educational Programs {PICS offers a varity of educational programs, wo {3s tho annual APIS Intemational Convoronce & Exp Fer alls of APICS leang opportuntes an intoraton on cures avait, cll AICS Customer Service at 1-300-144-2742 (Unod States and Canad) oneT7BA87- 1777 ECM-4 ©2012 APICS The Association for Operations Management APICS Certified in Production and Inventory Management (CPIM) Basics of Supply Chain Management (BSCM) Review Course and Examination The APICS CPIM BSCM modulo todies terminology {pproaches, and teiques foraging the mama Supply chain na manufacturing organization. Fer at Toaton, the references and he review course may ‘lable resouces fr APICS CSCP candies wh are ‘otfamtar th the production and ivenony ‘management smaromont Adana, nua inexpeioncad aking cartfeton exernaton using {he mullpltocs rma of tems pes tnd R neil take he BSCM examination, Fora complet lit of APICS resources, vist the APICS wets at aptes.org or cal APICS Customer Service at ‘oo. 2742 on vicrr2867-4777 and ouest a camplmeniary APICS Educational Resouces Erochure (stoac tor. APICS CSCP Certification Maintenance: Continuing Professional Development The Importance of Certification Maintenance “The growing numb of ndviduals choosing o pursue profesional Jovelopment tvaugh he APICS CSC ‘rogram ndeatos a sang awareness thal conning ‘Sd.aton and she dovlopmant are essertal to ‘meating te ifomaton and echnclogcal chalonges in today’ railyevoving workplace and global ‘marketplace. Professonal davetopment opens doors to Ira ever oportunies and crganizatonal [though APICS CSCP recogtion and mainionance ae voluntary programs, they equa demonstte one's ommimano aaneving the hes! ove! of professnal dovelopmant and sandars of excolence, ‘The APICS CSCP cofeation maintenance program upholds bath ho objctias ofthe APICS CSC program and the APICS vision to promote long Foaming, This feible program recognizas hat Individuals ar at varous tvs nthe career, come ‘fom many indsties, have ferent edition neads and caro goal, and havo varying depres of 2cce55 continuing education. Thus requirements or maintaining ceatioaion canbe mel ough multe sours and a ‘arity of profesional development aces iionded to lp prepare fr to changes ahead and maa a ‘rotenone by ‘reserving the currency ofhard-eamed cartfeston rodents expanding your knowedge of he aes Int precees ‘+ expanding your knonldge ofthe latest industry fractoes nforong skis + Siploring new echnoogyeolalons 1 reinforcing site {improving jo perfomance 4 domonstaing commimen to excolnce {Increasing competive advantage. To promote professional growth an felong laming, -APICS CSCP dealgnoes must complete te crtiaton Imarenance program every ve years. Competa dota ‘nfo fe mantain you APICS CSCP designation wi Se mated candles gen secs compen ot the creation requirements APICS Code of Ethics lodge abo by the APICS Gado of Ethics Onco ted, yu pladge to contnue your education to ineroaso your corrbuton tothe supply chain management prolesson Ale acoving the APICS CCSCP designation, you pledge aso to share your Ironfodgo wih athars by partopatingn APCS rosoareh and edveaonal aces a acs tric, ‘atonal an interstonalavls “The APICS Code of Ethie i a foows: {+ Tomainian and improve sound business practoes {nd foster igh standard of prolessinal conduc ‘+ Tobeid in professional condence ay e¥ormation gained a he busines of flow members ‘ompany and to retrain for using uh mation 1+ Tosseoksuecese shout aking unfair advantage oF sing questionable acs that would compromise one's satraspect. + Tonetter engage n oe sancton any exploitation of one's membership, company. or pofesion. + To-encourage. and cooperate nthe tersnange of nonlodge and eehngues forte tl bent of the pretense. + Tobe cael with one's cits and eral with one’s paseo bul and nt io dst. (CSP Exam Content Manual ECM-S ‘+ Whenever a doubt arses aso height tls of ‘one's poston or action to rescve sch doubt ‘czarding to ganaralysccopod stands of tut, fai dealing, and good tase. ‘+ Tomainan hgh perso standards of moc responsibly, charactor, and Busnes neg. ‘+ Toupheld tho high als of the association as cuted Inthe bylaw. Far to abide by APICS Codo of Ehicspoey may result sanclons up t and including deceiston APICS Certified Supply Chain Professional (CSCP) Ettecv for January 1,2013-Decombar 31, 2013, CCSCP Subcommittee Roly Whit, CFPIM, CIRM, CSCP (Chai) Nishat Anmed, CPIM, CIR, CSP, CPM MC. Dean ne Joanne Gorsk, CFPI™, SCP Fox Valley Tecnica Calege Robert Pncet, PI, CSCP ‘Andrea M. Pruthomme, PhD, CPIM, CIRM, ‘CSCP, The Ohi Slate Universi Eeaurdo A Shey, CFPIM, IRN, CSP Somes Scope of the Subject Matter leas road tho introductory mata in his manual for ‘event infomaton abou be examination, {APICS CSOP covers concepts, satel, processes, ‘oaks, and tectecogis apple o manoging De neo- ‘nd forward and backward fw of mates, iormaton, ‘sd value na suppiy chain. ‘The subject maior isergarizod int hoe contort Fundamentals of Supply Chain Management ‘This secon powes the foundation forthe exam by addrecsing tho concopls and satoios ured for Stacie supply chan managment Includes an ‘veri of supply chain management. mang the ‘Supply chai, and improving the supp chan Strategy, Design, and Compliance ‘This ston addrossos consideration inthe dig of ‘ppl chain, he processes tat support he organization's statogy, improvement of ho sustainabaty ‘ofthe erganizaton and string painers nd omptance wh aplcable regulations and voluntary Standards, Inaplementation and Operations This section covers managing and balancing suply and demand trough measizng, analyzing, and npovng Supply chain prooossas ‘The succesful cada wil be abi to ecogeze and analyzo speci supply chan station and ‘pporuntos and sleet he appropiate approaches, tools tecniques, and tecnologies. The cana al be able odie the acbonsnaoessary to plement ‘lected sliona, Ths includes an undtsanding and abit, manage 1° agnor of suppy chan processes and capabities ‘wth sbatoiebainess goals + orgateatonl ols and fesructires nthe supply can {mati inormaton, an nanca ows 1 ina: anni organdatonaleiatonships ‘selection and use of technologies te onabe fective proces management Many of tems on hs fram equre the cana fo apy ee or more of tho tome ete nthe outine and oy terminlegy. APICS CSCP Content “Thzee content areas have boon designed o organize [APICS CSCP demain. The relative importance of tose Tepes wl vary among indies, bul the gues given bow show te prconage designated fr wach seston ‘onthe exam. Diagnostic | Mala Topie Parceniage Part ot Exam 1 | Faxdamoniat of Supply | 33.39% ‘hain Management ae [Supply Chain Stategy, | — 203% Design, and Compliance TP epementaion ana aa (peralons ECM.S ©2012 APICS The Association fr Operations Management Content Outline | Fundamentals of Supply Chan Management ‘This soto addouses the fundamental conceps used for effecive supply chan management and wl rose the foundation forthe APICS CSCP exam, hincudes an ‘rerio supply chain managoment concopts and he ood te align resources with the satay of tho ‘Sxganzaton Management ad nprovenen fhe Supply chain ar then adseneed Exam questions ovonng dus aea wl include eloments ela tothe ‘oto A. Supply chain management concepts: A ecugh Undortanding of he olen a soppy chain nebo ‘nd tho low a au reugh i required. Abroad Understanding othe supp cain management processes, bjactves,mlagraton, and bona ‘so requred. Knowledge mts area encompastes! 1 Basle supply chan 2 Entivos b Siuctres 12 Planing demand and supply 1. Sourcing good and serves © Producing goose and orvioes 4 Dalarna goods and servcos '& Planing or and procesin eas 8. Vertesl and horizontal integration 4. Supply chain management objectives "improved customer cones 1 Ettcont use of systomdo resources © flecve we of system de osoures {4 Loverage of partner svongt 5. Supply chain management bons 2. improved market knowledge 1 Inareased vlosty Inthe fous of goods and ‘noes, fn, and information . Incrasad visit of lows 4. Reduess varabaty of ows ©. rogated operations 1 Improved menapoment of ik ‘9 Inseared sustanaty '. Supply chan algnmant wih busines statogy: The supply chan satogy shoud align wth ad enable the business stata). Achieving appropiate _alrmnentrequres an undersanang of he forms of ‘competitive advantage being pusved. Kaeo ‘eure an undersanding of fe ganizations ‘atopy, pois, capabiis, and tho resolution of risalignmonts gaps. Knowedgo in this aoa fencompares: 1. Compatve aavantages 2, Businss capabiliis and statogy 2. Organizational stagy B.Pnontzatonoptons| © Orpanzatonalcapabites ‘4 Algnment of eaabilies a strategy sanmento gaps Resolving mi 4. Collaboration among tating partners 12 Bonala of colaboration 3 Reuiement or sucess (6. Supoy chin desi and inprovernent ‘considerations: Te suply chain strategy should be ‘eaigned wih an undertanng of he maretpac. Tals roqures an understanding of supply chain ‘manaportnt design and canes improverant onaderatons. Knowledge hs area ‘encompasses: 1. Understanding the marketplace 2. Supply chain design considerations ‘Network configuration 1 twenty oeaton and levels © Product sign Iefraton technology 4 "© Support ystome 3. Contouous improvement 8” Prodct considerations Process improvement intatves © Managing change . tnvontry management lentes voughout he ‘Sippy chan most be planned ard contre fr stfectve supply chain management Managing Inventories, nun requres an understanding of the costs of matainng and net maining Inventory. Knowledge n Ws area encompasses: 1. Need orienta 2, gregate and item ventory management 3. Flow of mato 4. Functions of ventory 5. Inventorylaed coat ategois 6. Etocts of ventory onthe fnanclal statements (CSCP Exam Content Manual ECHL? . Logistis indomentat: An understanding ofthe logics uncon required. Understanding th ole fogs, types of gis eerie providers, and rovers loites is rogured, Krowodgo in thi aoa ‘compasses: 1. Role of ogists in suply cain managemont 2 Logistcstancione Loaistes value ropestion ©. Flowof goods and formation 44 Push, pu, and push-pull systems 2. Lote ne ov “Types of ogc services b Ribantages of usnglagats sevice rowers ©. Disadvantages of wing lois sonice provers 3. Reverse logistics Actes supported 1 Dosign for evrse logics © Bonet Market sogmonaton: An understanding of market ‘ogmentaton I fequted, Understanding the ‘eason for nbying market segments, ways to ment markets, and understanding th wants and ‘needs of ach segments imparan Knowledge this area encompastos: 1. Reasons odenity and understand market ‘ogres 2. Ways to segment markets 3. Understanding the wants and needs ofeach sogment (6. Demand panning: An understanding of demand forecasting, tha conpenons of demand ‘management, veolaed nkages nd demand ‘manapomentunctoralrosponsbitis ane Interfaces equred. Knowle nhs avea ‘encompasses 1. Foyecating demand a Doman orcasting conc 5. Gustave methods © Quantitative mess ‘Combination maods 2 Maasures of forecast err 2. Components of demand management 2.” Prannng demand 1 Communicating domand © Intuncing demand 4 Paontzng demand Linkages among he components 4. Demand management functional espersiiies and iorfoces 2 Prodi development Marketing © See Operations H. Customer rlatonshp mangement (CRM) oncaplEllecve estore eaionshp management nudes an understanding of ha CRM Bbsopy I aso requires the understanding of he ood, ope, elements, and benais of CRN. Fowlage nts aoa encompasses: 1. Need for CRM 2. Scope of CRM 3. Bement of CRM 4, anette of CRM 5. Implamenting CRIM 6. Neodfor, and uses of, customer information a |. Supply management concepts: Elective ‘management la sources of supply reques an Understanding of te components of to lial cost of ‘enerhip and he considerations n deci ‘tater o sour an em internat oe external. ‘ko requires an understanding of he ypes of Felatonship that can exist beeen tm ais Suppers, he dovslopmont of supply plans, ard Supoterrlatenship management Knowledge this are encompasses 4. Tota cot of ownership 2. Mak versus by anal 8. Range of buyersuppireaionships 4 Developing supply pans 5. Supplier elatenship management (SRA) Retoroncos:1:2(1-6):3(1-2,6-7, 01 4(1,5-8) 5(1, B59, 12)10 EGM.8 ©2012 APICS The Association fr Operations Management 1 Supply Chain Statogy, Desig, and Compliance ‘This scton addresses consideration nthe desgn ofa mpeutve supply cai, he processes that suppet the ‘rganizaton’ssratogy,mprovement of he susamabity tft ergenzaton ant odng pare, and amplince wih apleableregutons. Exam questions ovoring tis areal choo elements related tothe fotowing: |A. Sustainabilty: Desiging and oprating a suply ‘hain equa an understanding othe concept of Sustainable busnoss practcosandhow to adapt ‘2nd apply hem oa spot suppy cha. Kenonlege nis area encompasaos: 1. Til bottom ne (BL) ~ considerations rated {oconsenvation and sowardship. 2 Eoonomie| 6 Miro and macro considerations Leading and logging eoonome ‘© Balancing short-term and longterm: perormance . Envronmontal "ISO 4000 —envirnmenial ‘managemont systems © Governmental roglatery compliance © lnstyapecic guidelines an standare impact of suppty chain decsons ©, Socal © 80 26000—guttance for socal response © Corporate soil responsibly Considerations | 2. United Nations Glotal Compact 3, Global Reporting Iitaive (GR) 8. Risk management: Designing a robust euply chain rogue rocognzing tho curves and foto ks, ‘he maghtude and potntal inact of each, end ‘moths igang each form of rk. Knowle Inthe area encompacsos: 1 doniteaton tigation, and response tors Forms of ak 1. Assessing th kn a supply chain © Mgatng igneant ike Responses events 2. Seer and ratory coca ik of oe, auch a nllecua property or foods b. Compiying wits import and export requrements, such a phd goods, lena, ad documentation © Coats and bane of parting In secu panershipe 1 Cents and Bones of meeting sutsinabilty regulatons . Prodvet vaceabity 3. 180 31000—sk management princes and ‘soos (C. Globatzation: Managing global depersed sources ‘of supply an domard roqures on understanding of ‘he equrements for operating mule counties and for moving goods and funds among Couns. rowiegpo inthis area encempesses: 1. tects of global spersed supply and demand ‘Export nd npr parelpats 1 Curren eonisecatons ©. Harmonld af chads (HTS) 44 Total ortanded, costo acquston 3. Trading bees 2. Dotnion 3 Efects on supely chains within the bloc © tects on supply chains that extond outs tho bles 4. Operations considerations 2. Exporting sos ©. poring issues © Into 5. Implications of lobazaton 12” Legal and regulatory conlderatons 1. Aeceptabie standards of andl © “Stcaeaton” ._Logistes: An understanding of the taf hat ‘obatzatn and supply chan management has on Inbound and outbound egies impertank. An Undorstandng of fade-ffe among warehousing. tanspertation, and logistics sevice’ decison ‘making alo requiod, Krowodgo is aoa encompasses (CSCP Exam Content Manual ECN-D 1. Transportation b. Advanced planning ae schodlng (APS) a Transpotaon obocves and Stems consderatons| Supply chain avert management (SCEM) ». Statoheders in tanspotation decisions {4 Warehouse management sytem (HES) ©. Modes of tansporaten Transportation management systems (TMS) ‘4 Consideratone a mode secon 3. Data acquson and communications tols 2. Warehovsing 2" Ineface devices 2. "Warehousing objectives and consiterations Data communications motos 1 Warohouso capabiitos © Dataasosherarchicalaiationalnework Automated materi ending {& equisiton and use of data 1 oats entiation feehnoogiee ‘3 Transportation and warehousing trade-offs a” Publetpvate 4. Supply chain design an opinization tools 1 Ovningeasingassots ‘2 Supply network design Capac constrains 2. Supply network opetzation Managing te supp chain: Managing the supply {5 tntecorganizaton negation toe hain equres an understaesng af he dypames of 2 iflomaon ecmlogy in ealaberatons and Supply and demand and tho need to batanco pit processes ‘ticlncy and rgponsivenoss inthe supply chlo . Standarteaton ‘So vequroaa sel of comprehensive measures at Challenges ‘x agrood upon and eed bythe orgarzatione in ‘th suply chal. Khowiedge nth area 6. Electronic businoss ‘compass: ‘2. Eneblng vital organizations By tntemtenbied supey chs 1. Indlcators of suply chain perfomance © E-busnose consioratons 28 Cuomee focused mais 4 Bucinea e-business (B26) commerce and 1B Financal metres bsiesetoconsumer (B20) sos Operational metrics Gorey portrmanco maeatrs (He) (G. inuencing and granting demand: Kru Understanding of how the mombrs of a supely 2. Responsive versus efit supply chains Chain can nflanes demand and how thy may need 12 Aabutes ofan een uppity chain to prize damand when nacessay i Yoqires 1 Altbutes of reszensie supply chain Kowiedge nhs aro encompasses: Supply chan Fe with to gazes markt requements 1. Designing produets and sences ‘3 Standardization F. Technology: An understanding of tchnolgi that B Simpiiaton able design, tacking, operating. and © Gustomizaton ‘ommoricatng among tang arinors win 2 &_Surtanabaty considerations Spay chain fs nocosary. The comet appleaion of ‘Design and developmontcotboration appropriate locholegy ie needed fr efctnt and sffecvo supply chan management. Knowledge 2 Markating tis area encompasses: 2 Markt research 1 Damana gonaraton 1. ele ftchotegy sippy ca management 2 nfuencing demand Tefrmation system setenture 5 Usoctinomation echnology the suply 2. Saling © Comprehensive suply chain management 4. Matching customer odes to supply ‘tom 2. Nood for mating 44 Need or imly and secure data 1 Approaches to matching 2. Key aopleaton tools a Enerrise resources planning (ERP) ‘some ECM-10. ©2012 APICS The Association for Operations Management 1H. Customar elonship management (CRM) Effective customer eaonshi management Indes understanding the undering cones ‘nabing techlogios, and roqurements for Improved demand management cisiomar sor, an aignment of customer facing pocaases and resources. Knowledge nus are encompasses: 1 Doveloing and implementing CRO as 2 stategy 8. Components of CRM stateay 1 gg CRM ertogy and product er fence ie cya & Greatng a CRM stateay ‘&.Dovelopng CR satay for various ypes ‘and segments of customs, 2. Using tchncigy to implement CRM a Bonefisof sing a custom data ‘ror Sale foes automation © Kaye o succes CRM implementation 3. Measuring customer service ‘Response ta inquires Order processing oval of sonice Product or sence quay Cstomor sttacon| 4 Cratenges im mplementng cron 1L_ Supplier rotatonship management (SR) ‘Suosessulmpementaton of supper relationship ‘management rqutes an understanding of ho {darying concops, the enabing lect, and ‘he requrements for mproved management of Sources of suply. Keowladge in heaton sconces 1. Supplier selection Corporate social responsibilty (CSR) Nepoitens © Inmet enabled soursng 4 Cotta’ prforance ‘Nlgnment wih supoy chan needs 2. Developing and implementing SRM sategies 2. "Slop in nplomenting SM Managing nok 3. Croatingalances wth suppirs 2 Characteristics ofa succesful elatonship Commitment equted fora success ‘iionce © Stops n crating and maintaining an 4 Using technology to implement SRM a. Components ofa SRM systom Portals and trading exchanges (Processes enabled by SRM ‘foc of SIM onthe frm and is supple 5. Measuring SRM {6 Challenges in implementing SRI 4 vortry planning and conto: vetoes troughout he supp chan must be pares \ccatd and control for efactve spy chan ‘management Managing into nt quires an uncerstanding of tho lll coats of maining {and pet mataning ventory and he tec for Planning and centling Inventory Knowledge this 1. ventory planing Locations of inventory Lawes oF iventory 2. Inventory conto Dotormining order quantos (rdarng stars Salty sock and safety lod mo Organtzaton of sorage oeatons ato of racking inenioy Manos for assessing inventory accuracy Relerences: 12 (7-10, 10); 3(1, 3-8, 8-11, 12-13, 17, (19) 5 212, 1418) 6 8:9; 10 {Implementation and Operations This soclon addresses managing and balancing supply {and demand by messing, alvin, and improving ‘Sippy chain pocesees Exam questone wi nce ‘lent elated to the flowing A. Supaty chain namie: Managing supply chains reques an understanding fhe dynam of supp ‘nd demand and he nod o balan atleney and Tesponsivness nthe supply chain. als quires {sel menses thal ate agreed upon and used by the organzatons in he suply cha. Knowiede 1. Sources of variably in demand 2, Sources of vrai supply 3. Synchronizing supply and domand 4. Matos (OSCP Exam Content Manual ECLA 8 Managing supply om internal souces: Managing ‘spp rom intemal soureas regres an ‘Undorcandng of tho operators panning and corel ‘processes. Knowledge bs area encompass 1 Operations planing and conta 2° implementation of sale and operations planning (S80P) Contig prt Matos andinveriony (Cepacty managament 2. Communicating requirements and pores 3. Measuring perfomance 83.” Oporabonal measures , Pancl measures, (©. Managing supply rom extra sources: Managing Supply from enteral soureas requires an Understanding ofthe bale purchasing procesee, Selecting suppl, and evaluating suppl. Knowledge nhs area encorpastos 4. Communeating requirements an pines 2 Supper polernance management 2,” Ethical andtegal considerations B. Nogetatons Contact aves ‘& ntemsonaies sourcing (© Scorecards and performance matics 3. Supper cortiation 22 Customer and upper bones 1 Thithpary cortfeaton Supple certeation process 1. Implementation of somand plans: Requies an Undarsandng ofthe maths or porting sr {uting demand, Knowledge inthis area snoompasces: 1. Demand proetizaton 2 Time fences 1 Aleation of supoiy © Maasure of cuslomer service levee oe Firates © Lead-tme monitoring Onderstatuerepering 2. Capturing and communicating pont. eale data 2” Capturing data at pom Sharing dard data among trading parvers E, Continuous Improvement: Enhancing he cempatvanoss of @ supply chalnrequres an understanding ofthe toeiques and toot of contnous improvement andthe aperoprato ‘pploaton of each, Knowledge in tha rea, 1 Coninuous improvement philosophies Loan 5. Skrsigma ©. Theory of constraint (TOC) Tot! quay management (TOM) 2, Continous improvement ols 1 "Basie seven oo of quay (87) Seven naw tol (NT) 3. Sustanabity tool 3, Ue oyeeaesoxsment 80 14004 Global Reporting nave (GR) {4 Sustainabity scorecards Reloronces: 1: 211-16) 3(0-11, 4-18} BQ 47 12,7,8,0,10, Key Terminology ‘Av undesandg of te owing tt of ts ‘ocommended. Th at stoned to be tro ut ‘ot xhustve. The cant ale expecta be {Smart he detest of ome toda n tre inthe AACS Dison A ctv tag ‘vanced planning and scheduling (APS) cont ‘Stance development ‘nigpaton inventors ‘svembleto-order ‘S0fomate Konifleaton and data captire (AIDC) ‘valbie-oprome (ATP) balanced soorecard Bankel purchase order butler Dusiese ittigence busieselo buses commerce (828) bustese-nconsumer sales (820) ‘apableto promise (CTP) ash trcash cyl ine ‘olaboaive planning, forecasting, and replenishment (CPFR) consorba Wado exchanges (CT) onto management applestens eninuous eplershment ECM-12 ©2012 APICS The Association fr Operations Management cost of quality ‘ross-docking ‘ose-eting. "usiomer relationship management (CRW) ete tme database management syst (08MS) ‘ata Gearsing| ‘ata detonary tata werohouce ein, messre, analyze, improve, convot {(OMAIC) process omand forecasting ‘lmand management ‘domand planing ‘demand pul ‘osig or the supply chan ‘detbutlon inventory ‘atibton requirements planing (ORP) lostonic commerce (e-commerce) ‘lotic data ntrehange (ED!) ‘Sletone document ‘Sloot product codes (EPCs) ‘soste management ‘hire resources planning (ERP) ‘ntenatie manu tanquage (XML) ‘ora foodback filtrate protocol (TP) obal strategy hamonizad system classifleation codes honzontl marketplace Fyportoxt markup language (HTL) hypertot ranstrprotocl (HTTP) incotrme Indpondent domand Intermaton syst architecire irerplantdemare inane inventory ophmzaton software Inventory vatuatbon Inventory vloety invertor visa 180 14000—ervtonmenta management syste 180 26000—guddanco fr socal responsibilty 180 31000—rok management princes and ‘uilines Jot ropleishment syst Joint venice iaizen Katzen event eit ‘ey perforce nator (KPH landed cost tadeenes tovl stony Ne cyse anata Ine hau costs make-o-rder mmake-tostock ‘markt demand ‘markt rsearch market shave ‘ast: production scheduo (MPS) mc orecat ‘modular desgn statogy moguar system | ‘maticountysratogy ‘utlcuring dering cost Srder locos, order quains order inere ‘outsourcing Pareto nats paren passe 19 Pete ventory pasa hoon oxa eval trading exchange (PTX) ‘Product frentaten ‘redutiaray ‘route cyte ul system pusneystom (CSCP Exam Content Manual ECNLAS quay functon deployment (QF) ‘ck Yesponse program (GRP) rad ttequeneyidontiiation (RFID) tag ‘api replenishment Tatum on assets (ROA) tekum on vesiment (RO!) ‘verse gies fevers supply chain "sk pooling sales nd operations amin (SOP) Sesonaiy emiasav ag Son ty ‘once nerd arcitectire (SOA) Sale-soueesupr Sorina s--s0vce (68) Selosorc soir Seurcing Sechaonig ot SHU) Statoge auance Stee panning snectraang Sippier corcation Supply chain event management SCEM) Supply ean management (SCM) supply chan rk upoy chan ity tact buying ‘an thir party logistics (3PL) {oa ost of ovnership (FO) rspotation management ystm (TMS) niersaty value-added Value-added network (VAN) vale chain ‘ale steam ‘ital rading exchange warcbouse management systom (WMS) waste. ned series ME extenibla markup language) ‘Supplemental Glossary “Te flowing concepts, not ound in the APICS Detonary, th etn, wil be Pepin preparing for the CSCP examination, ‘Business process management (BPH): A business

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