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APICS CSCP : Practice Test
Topic break down
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APICS CSCP : Practice Test
Topic 1, Fundamentals of Supply Chain Management
Question No : 1 - (Topic 1)
A large manufacturer wanting to be more competitive in the global market place decided to
outsource its transportation and return processing to other companies on a contractual
basis. The companies providing the services would be referred to as:
Answer: B
Question No : 2 - (Topic 1)
Which of the following attributes typically makes reverse logistics processes more
complicated than outbound logistics processes?
Answer: B
Question No : 3 - (Topic 1)
Which of the following is the most important result when a company implements customer
relationship management?
Answer: B
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APICS CSCP : Practice Test
Question No : 4 - (Topic 1)
Answer: C
Question No : 5 - (Topic 1)
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 which of the following strategies?
Answer: C
Question No : 6 - (Topic 1)
The focus of collaborative supply chain management differs from a transactional approach
by its emphasis on the:
Answer: C
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APICS CSCP : Practice Test
Question No : 7 - (Topic 1)
Which of the following actions typically would be considered part of a reverse logistics
strategy?
Answer: A
Question No : 8 - (Topic 1)
Which of the following practices has improved management of the customer pipeline?
A. Reverse auctions
B. Sales force automation
C. Finite capacity planning
D. Point-of-purchase metrics
Answer: B
Question No : 9 - (Topic 1)
Which of the following marketing strategies emphasizes offering services at a lower price
than rival services with comparable features?
A. Cost leadership
B. Service differentiation
C. Customer focus
D. Market responsiveness
Answer: A
Question No : 10 - (Topic 1)
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The most likely benefit of implementing a collaborative transportation management system
is:
Answer: D
Question No : 11 - (Topic 1)
A company plans to maximize profitability by charging more for its products at retail
locations than on its website. Which of the following segmentation strategies would best
support this plan?
A. Group
B. Channel
C. Regional
D. Location
Answer: B
Question No : 12 - (Topic 1)
Risk pooling enables a lower total inventory level without affecting service levels based on
which of the following assumptions?
Answer: B
Question No : 13 - (Topic 1)
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APICS CSCP : Practice Test
Which of the following benefits of supplier relationship management typically results from
collaboration with a few critical suppliers?
Answer: C
Question No : 14 - (Topic 1)
A firm has identified groups of customers based on specific characteristics the customers
desire from products and services the firm can provide. Characteristics include lead times,
pricing tiers, and service levels. The firm is engaged in which of the following activities?
A. Customer differentiation
B. Order winner segregation
C. Market segmentation
D. Channel definition
Answer: C
Question No : 15 - (Topic 1)
Which of the following indicators is most appropriate to use as a measure of supply chain
utilization?
Answer: B
Question No : 16 - (Topic 1)
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APICS CSCP : Practice Test
The primary objective of supply chain management is:
Answer: C
Question No : 17 - (Topic 1)
Answer: B
Question No : 18 - (Topic 1)
Reverse supply chain activity typically peaks nearest the beginning of which of the
following stages of the product life cycle?
A. Introduction
B. Growth
C. Maturity
D. Decline
Answer: D
Question No : 19 - (Topic 1)
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A. Adjusting capacity to support expected demand
B. Engaging in activities associated with customer relationship management
C. Creating higher customer demand by improving performance in areas such as lead time
and service levels
D. Understanding events and managing activities that could influence future demand
Answer: D
Question No : 20 - (Topic 1)
Answer: A
Question No : 21 - (Topic 1)
Which of the following actions typically would be the first step in implementing the
philosophy of customer relationship management?
Answer: A
Question No : 22 - (Topic 1)
Which of the following results can be expected from sharing a common understanding of
demand and consumption patterns among supply chain participants?
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APICS CSCP : Practice Test
A. Improved transparency of collaboration relationships
B. Increased performance in balanced scorecard
C. Reduced inventory levels for key items
D. Better synchronization of planning and operations
Answer: D
Question No : 23 - (Topic 1)
Answer: C
Question No : 24 - (Topic 1)
A manufacturer of plastic components that are sold either directly or through distributors
wants to identify the requirements of the end customers for each market segment. Which of
the following approaches would be most appropriate?
Answer: C
Question No : 25 - (Topic 1)
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APICS CSCP : Practice Test
B. minimize the number of returned items by involving product design and demand
forecasting.
C. reduce the cost of returned items by refusing to accept items that should not be
returned.
D. reclaim substantial value from returned items by recycling.
Answer: C
Question No : 26 - (Topic 1)
Keeping all other factors equal, a company typically will try to maintain higher service levels
for products with:
A. wider variety.
B. shorter lead time.
C. higher profit margins.
D. lower sales volumes.
Answer: C
Question No : 27 - (Topic 1)
Answer: A
Question No : 28 - (Topic 1)
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:
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APICS CSCP : Practice Test
A. forward supply chain.
B. marketing process.
C. manufacturing process.
D. sales and operations planning process.
Answer: A
Question No : 29 - (Topic 1)
A firm wants to lose customers that don't value the unique products and services the firm
offers and to attract and retain customers that want what the firm offers. Engaging in this
activity should allow the firm to:
Answer: A
Question No : 30 - (Topic 1)
Which of the following levels in a supply chain network represents the most upstream
external activity?
A. Supplier to contractor
B. Manufacturing to supplier
C. Customer to distribution
D. Customer to contractor
Answer: A
Question No : 31 - (Topic 1)
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APICS CSCP : Practice Test
A. Reducing the size of the sales force by automating activities
B. Gaining a better understanding of customer requirements
C. Implementing automated inter-organizational processes
D. Focusing sales efforts on the most profitable customers
Answer: B
Question No : 32 - (Topic 1)
Answer: A
Question No : 33 - (Topic 1)
A manufacturer uses standard costing, and a potential supplier uses activity-based costing.
This difference most likely will have implications for which of the following types of future
decisions?
A. Price concessions
B. Make-or-buy
C. Distribution warehouse locations
D. Freight terms
Answer: B
Question No : 34 - (Topic 1)
A. Modular logistics
B. Reverse logistics
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APICS CSCP : Practice Test
C. Mixed model
D. Lateral
Answer: B
Question No : 35 - (Topic 1)
A firm supplies products and services to a wide variety of industries with varying
requirements for responsiveness and reliability. Many customers across these industries
are not satisfied with the firms ability to meet the lead time and on time delivery
requirements. Which of the following tools is most appropriate for the firm to use to improve
customer service?
Answer: B
Question No : 36 - (Topic 1)
Answer: C
Question No : 37 - (Topic 1)
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APICS CSCP : Practice Test
C. develop better written procedures.
D. reduce product costs.
Answer: A
Question No : 38 - (Topic 1)
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:
Answer: B
Question No : 39 - (Topic 1)
Answer: C
Question No : 40 - (Topic 1)
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?
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APICS CSCP : Practice Test
D. Map and analyze the value stream.
Answer: C
Question No : 41 - (Topic 1)
Answer: D
Question No : 42 - (Topic 1)
The primary reason for a firm to pursue strategic supply chain activities is to:
Answer: A
Question No : 43 - (Topic 1)
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:
A. $29,000,000.
B. $15,750,000.
C. $10,500,000.
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APICS CSCP : Practice Test
D. $ 5,250,000.
Answer: D
Question No : 44 - (Topic 1)
A. Build-to-order scheduling
B. Push-pull replenishment
C. Collaborative planning, forecasting, and replenishment
D. Vendor-managed inventory
Answer: C
Question No : 45 - (Topic 1)
A company has been delivering a global product that no longer appears profitable. Senior
managements best response is to:
Answer: A
Question No : 46 - (Topic 1)
Answer: D
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APICS CSCP : Practice Test
Question No : 47 - (Topic 1)
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?
A. Customer segmentation
B. Customer-facing ordering systems
C. Customer relationship management (CRM)
D. Supply Chain Operations Reference (SCOR)
Answer: A
Question No : 48 - (Topic 1)
Answer: B
Question No : 49 - (Topic 1)
Which of the following corporate strategies is most consistent with a flexible supply chain
strategy?
Answer: B
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APICS CSCP : Practice Test
Question No : 50 - (Topic 1)
The factors to consider in the make-or-buy decision include costs, proprietary knowledge,
and:
A. design history.
B. available capacity.
C. inventory balance.
D. warehouse location.
Answer: B
Question No : 51 - (Topic 1)
Supply chains delivering products or services are most able to respond quickly to changing
market requirements when:
Answer: B
Question No : 52 - (Topic 1)
Which of the following factors typically is the most significant impediment to implementing
collaborative commerce?
A. Technology barriers
B. Security
C. Corporate culture
D. Return on investment (ROI)
Answer: C
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APICS CSCP : Practice Test
Question No : 53 - (Topic 1)
The primary reason for the evolution of the supply chain is:
Answer: D
Question No : 54 - (Topic 1)
A company that produces standardized products and sells them through retailers via a
responsive transportation system has decided to expand its sales with an online store for
customized products. Which of the following distribution strategies would be the most
appropriate for the business-strategy change?
Answer: C
Question No : 55 - (Topic 1)
When designing a supply chain for strategic advantage, a company first should consider:
Answer: C
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APICS CSCP : Practice Test
Question No : 56 - (Topic 1)
Answer: B
Question No : 57 - (Topic 1)
Which of the following phrases most accurately describes the complete flow of demand
information?
Answer: C
Question No : 58 - (Topic 1)
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APICS CSCP : Practice Test
The use of a seasonal index as a forecasting technique measures the ratio of the:
Answer: A
Question No : 59 - (Topic 1)
A media company offers a majority of its movies through a specific distributor. The media
company is beginning to produce content for a new foreign market to which the distributor
has exclusive access. To maximize savings and gain entry to this new market, the media
company should:
Answer: C
Question No : 60 - (Topic 1)
Which of the following situations is an example of inventory being held as a way to balance
supply and demand?
Answer: B
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APICS CSCP : Practice Test
Question No : 61 - (Topic 1)
The probability of customer dissatisfaction is highest when which of the following conditions
exists?
Answer: C
Question No : 62 - (Topic 1)
A manufacturer can simplify the forecasting process by pooling demand forecasts for a
product group and then:
Answer: C
Question No : 63 - (Topic 1)
Answer: A
Question No : 64 - (Topic 1)
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APICS CSCP : Practice Test
Incorporating supplier input into product and process design helps to:
A. maintain quality.
B. stabilize product costs.
C. reduce time to market.
D. save costs to the buyer.
Answer: C
Question No : 65 - (Topic 1)
Answer: B
Question No : 66 - (Topic 1)
A company manufactures special products for select customers. When demand for these
products drops, the manufacturer can switch the production line to a commodity-type
product that can be sold on the open market at reduced terms to generate cash. The
company is executing a corporate strategy that is based on:
Answer: D
Question No : 67 - (Topic 1)
A companys decision to charge different prices for the same service sold in different
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APICS CSCP : Practice Test
market segments is most likely based on which of the following metrics?
Answer: B
Question No : 68 - (Topic 1)
Answer: B
Question No : 69 - (Topic 1)
A. Product design
B. Selecting supporting information systems
C. Identifying labor force requirements
D. Identifying training programs
Answer: B
Question No : 70 - (Topic 1)
Which of the following types of information would be an appropriate basis for a qualitative
forecast?
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APICS CSCP : Practice Test
A. Leading indicators
B. Market research data
C. Order history
D. Shipment history
Answer: B
Question No : 71 - (Topic 1)
Which of the following forecasting methods relies on the opinions of a panel of experts?
A. Delphi technique
B. Survey method
C. Causal method
D. Time series analysis
Answer: A
Question No : 72 - (Topic 1)
The value that logistics provides within the supply chain can best be summarized as:
Answer: A
Question No : 73 - (Topic 1)
Which of the following consequences is a result of shipping directly from the point of
manufacture to the customer rather than through a distribution network?
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APICS CSCP : Practice Test
B. Risk pooling benefits are negated.
C. Distribution overhead is increased.
D. Order-fill rate is decreased.
Answer: B
Question No : 74 - (Topic 1)
Using an independent service provider for logistics would be most appropriate in which of
the following situations?
Answer: A
Question No : 75 - (Topic 1)
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?
A. Inventory levels
B. Contractual obligations
C. Customer profitability
D. Scheduled marketing activities
Answer: D
Question No : 76 - (Topic 1)
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APICS CSCP : Practice Test
D. products adapted to local needs.
Answer: D
Question No : 77 - (Topic 2)
A company's product cannot be sold beyond 12 months from the date of manufacture. The
product contains hazardous material and must be returned to the factory to be neutralized.
This situation is an example of product:
A. reuse.
B. remanufacturing.
C. recovery.
D. refurbishing.
Answer: C
Question No : 78 - (Topic 2)
A company currently produces custom goods for a limited market. To increase market
share, the company will implement a strategy to reduce the number of products it produces
and reduce delivery lead time. The company can increase its chances of achieving the
strategy by:
Answer: C
Question No : 79 - (Topic 2)
The social dimension of sustainability typically would be addressed when developing and
implementing policies regarding:
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APICS CSCP : Practice Test
A. accounting practices.
B. biodiversity protection.
C. conflicts of interest.
D. waste reduction.
Answer: C
Question No : 80 - (Topic 2)
Answer: D
Question No : 81 - (Topic 2)
What is the primary benefit of using modular rather than integral designs?
Answer: C
Question No : 82 - (Topic 2)
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APICS CSCP : Practice Test
Answer: A
Question No : 83 - (Topic 2)
The most appropriate reason for a business to comply with the United Nations (UN) Global
Compact practices typically would be to:
Answer: A
Question No : 84 - (Topic 2)
A company that sells direct to industrial and commercial businesses has become
successful by being responsive to the needs of its customers. The company currently
produces in each country all of the products it sells in that country. Several countries in
which the company operates have negotiated an agreement to establish a trading bloc.
Which of the following actions by the company would be most appropriate if the agreement
is implemented?
Answer: D
Question No : 85 - (Topic 2)
A. Throughput
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APICS CSCP : Practice Test
B. Cube utilization
C. Filled pallet positions
D. Labor efficiency
Answer: A
Question No : 86 - (Topic 2)
Which of the following actions is most likely to increase total supply chain risk?
Answer: C
Question No : 87 - (Topic 2)
A firm has discovered a product quality issue. What should be the first step in responding
to this issue?
Answer: C
Question No : 88 - (Topic 2)
A. Loyalty
B. Scoring
C. Segmentation
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APICS CSCP : Practice Test
D. Prospecting
Answer: C
Question No : 89 - (Topic 2)
A. Customer acquisition
B. Customer retention
C. Customer dependency
D. Strategic customer care
Answer: B
Question No : 90 - (Topic 2)
A manufacturer offers a trade-in allowance on a new machine when the customer returns
the old machine. The manufacturer reconditions the returned machine locally and then sells
it on the used market for a profit. This program is an example of a focus on:
Answer: D
Question No : 91 - (Topic 2)
A. Globally integrated
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B. Domestic
C. Multinational
D. Virtual
Answer: C
Question No : 92 - (Topic 2)
A company ships from its manufacturing facilities directly to its warehouses. If the number
of warehouses increases, transportation costs between manufacturing facilities and
warehouses most likely will:
A. increase.
B. decrease.
C. not change.
D. become less predictable.
Answer: A
Question No : 93 - (Topic 2)
Which of the following actions is in accordance with the Ten Principles in the United
Nations (UN) Global Compact?
Answer: B
Question No : 94 - (Topic 2)
Which of the following activities typically would be an appropriate application of the ISO
31000 Risk Management Principles and Guidelines?
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APICS CSCP : Practice Test
B. Establishing external risk communications processes
C. Projecting the ability of a facility to recover from an event
D. Preparing for risk management accreditation
Answer: B
Question No : 95 - (Topic 2)
The strategy to implement supplier relationship management has been developed. The
most appropriate next step is to:
Answer: A
Question No : 96 - (Topic 2)
In an advanced planning system, which of the following modules feeds the master planning
module?
A. Purchasing planning
B. Demand planning
C. Distribution planning
D. Fulfillment planning
Answer: B
Question No : 97 - (Topic 2)
A company that has consistently achieved a high level of on-time delivery performance has
decided to reduce its inventory level significantly. Which of the following outcomes is the
most likely effect of that decision on the company's on time delivery performance?
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APICS CSCP : Practice Test
B. It will decline and then stabilize at a lower level.
C. It will improve and then stabilize at a higher level.
D. It will decline until sales erode.
Answer: B
Question No : 98 - (Topic 2)
A corporation must consider which of the following factors when selecting its enterprise
resources planning system?
A. Uniqueness of operations
B. Corporate profitability
C. MRP and MRP II processing
D. Industry benchmarks
Answer: A
Question No : 99 - (Topic 2)
Answer: C
Which of the following actions would be most appropriate for an enterprise that has
successfully integrated internal supply chain management systems and functions?
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APICS CSCP : Practice Test
D. Working with trading partners to reduce channel redundancies
Answer: C
The customer who provides point-of-sale data remains the sole decision-maker regarding
order quantities when what type of inventory strategy is used?
A. Continuous replenishment
B. Advanced continuous replenishment
C. Vendor-managed replenishment
D. Quick response
Answer: D
In the Supply Chain Operations Reference-model (SCOR), the cash-to-cash cycle time
for a manufacturing company is the number of days between which two of the following
situations?
A. Paying for raw materials and getting paid for the product
B. Shipping the product from the warehouse and receiving it at the customer's location
C. Paying for raw materials and sending an invoice to the customer
D. Billing the customer and getting paid for the product
Answer: A
Distribution from which of the following types of sites enables goods to enter a country,
undergo further modification, and then be exported without paying customs duties?
A. Public warehouse
B. Value-added territory
C. Free trade zone
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D. Customs clearing house
Answer: C
When doing international business, a company's total line-haul costs will vary with the:
A. weight shipped.
B. distance shipped.
C. pallets shipped.
D. volume shipped.
Answer: B
Answer: C
A company closely monitors supplier performance and notices recent late deliveries from
one supplier. The supplier discloses flood damage at the plant. The company quickly shifts
sourcing to a new supplier and has minimal loss of sales. Which of the following risk
strategies reflects the company's actions?
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D. Investing in redundancy
Answer: B
Answer: C
Answer: C
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Answer: A
A company produces and distributes a family of soft drinks in a single country. It has
developed and will introduce a new family of soft drinks for weight- and health-conscious
individuals. There currently are no competitors with nationwide distribution for this category
of soft drinks. Which of the following supply chain strategies would be most appropriate for
the two product families?
A. Produce both product families to forecast and push through the distribution system.
B. Produce both product families only after receipt of a distributor order.
C. Produce the current product family to forecast and the new product family to order.
D. Produce the current product family to order and the new product family to forecast.
Answer: C
A manufacturer of consumer packaged goods with a single plant and nine regional
distribution centers is considering reducing the number of distribution centers in its system.
Reducing the number of distribution centers most likely will reduce fixed warehousing and
the cost of:
Answer: D
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APICS CSCP : Practice Test
B. translating data into universal standards.
C. convincing the information technology department of the value.
D. explaining the reason for change to customers.
Answer: B
A manufacturer and the distributors of its products have decided to focus on price and
product availability as strategic priorities. Which of the following values would be the most
appropriate measure of customer service?
Answer: C
Answer: D
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D. balancing the difference between piece price and total cost.
Answer: D
Answer: B
A. Magnetic stripes
B. Universal product codes
C. Radio frequency devices
D. Local area network
Answer: C
Which of the following processes would a company use to evaluate the risk profile for end-
of-life planning for a product family?
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Answer: B
Bar codes and radio frequency identification systems are key technologies in supply chain
systems because they perform which of the following functions?
Answer: B
Which of the following strategies would increase overall supply chain risk?
Answer: A
Answer: D
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Answer: B
A company is formally adhering to the principles of the UN Global Compact. After a review
of their supply chain, they have found that a key supplier is in violation of the compact. The
best action for the company to do first is:
Answer: C
Which of the following outcomes occurs when direct shipping is used instead of a
distribution network?
Answer: D
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A product design that can be produced to requirements even when conditions in the
production process are unfavorable typically is known as what type of design?
A. Universal
B. Computer-aided
C. Modular
D. Robust
Answer: D
Answer: D
Inventory parameters established using analytic inventory techniques typically are based
on balancing:
Answer: B
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Which of the following ISO standards is used to assist organizations with sustainable
development?
A. ISO 31000
B. ISO 14001
C. ISO 26000
D. ISO 9001
Answer: C
When an importer and manufacturer are operating in a free trade zone, payment of a
customs duty is triggered when products are:
A. returned.
B. assembled.
C. stored.
D. distributed.
Answer: D
Which of the following distribution approaches for a low-volume, high-variety product line
typically will result in the highest level of customer service and the lowest total distribution
costs?
Answer: A
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Potential customers of a company's new product have tight tolerance requirements. The
company plans to purchase a critical component. To meet customer requirements, the
company should first:
Answer: D
A. reduce uncertainty for multinational firms regarding legal, import/export, labor, and
environmental standards across countries.
B. set minimum levels of compliance across a broad range of transactional areas for
businesses operating in multiple geographic regions.
C. align the needs of businesses to increase profitability and the needs of individual
countries to ensure their specific legal requirements are met.
D. help ensure that markets, commerce, technology, and finance promote advancement of
economies and societies everywhere.
Answer: D
Which of the following strategies can be used to help manage global risks?
A. Direct shipment
B. Cross-docking
C. Mass customization
D. Flexibility
Answer: D
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APICS CSCP : Practice Test
Answer: A
Which of the following factors typically is most important in successfully implementing sales
and operations planning (S&OP)?
Answer: C
Answer: D