APICS CSCP APICS Certified Supply Chain Professional Exam Practice Test

Answer : A

Single sourcing a high-profit product increases overall supply chain risk due to several reasons:

Supplier Dependency: Relying on a single supplier for a critical product creates a high dependency, making the supply chain vulnerable to disruptions if that supplier faces issues (e.g., natural disasters, financial instability).

Lack of Alternatives: Without alternative sources, any disruption can lead to significant delays, shortages, and potential loss of revenue.

Negotiation Leverage: Single sourcing can reduce the buyer's negotiation leverage, potentially leading to higher costs or unfavorable terms.

Outsourcing unsuitable products, identifying multiple sources for risk-prone products, and internally manufacturing IP-sensitive products are strategies to mitigate risk, not increase it.

Chopra, Sunil, and Peter Meindl. 'Supply Chain Management: Strategy, Planning, and Operation.' Pearson.

Harland, Christine, Richard Brenchley, and Helen Walker. 'Risk in Supply Networks.' Journal of Purchasing and Supply Management.

Answer : D

Answer : C

Effective collaboration for item replenishment by external suppliers hinges on the synchronization of information between the buyer and supplier. Among the options provided, close communication about component usage (C) is critical as it enables suppliers to accurately understand the buyer's needs in real time, which in turn allows for more precise planning and timely replenishment of items. Accurate long-term forecasts (A) are important, but they do not address the real-time and ongoing updates that close communication provides. Returnable plastic containers (B) and a process for the reverse supply chain (D) are logistical considerations that, while beneficial, do not directly impact the day-to-day collaborative communication necessary for effective replenishment. Thus, close communication ensures that any changes in demand or usage are quickly communicated, reducing the risk of stockouts or overstock situations.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2007). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill.

Answer : C

Qualitative extrinsic data are data that are obtained from external sources and are not based on numerical measurements, but rather on opinions, judgments, or perceptions. Qualitative extrinsic data are used with qualitative forecasting techniques, such as the Delphi method. The Delphi method is a technique that involves a panel of experts who provide their opinions on a topic through a series of questionnaires. The results of each questionnaire are summarized and fed back to the panel, allowing them to revise their opinions based on the feedback. The process is repeated until a consensus is reached or the opinions stabilize . The Delphi method is useful for forecasting long-term trends, new product demand, technological changes, or social and economic issues.

Answer : C

According to the APICS CSCP - Supply Chain Management Certification2, the financial Z-Score is a metric that measures the probability of a company going bankrupt within two years, based on a combination of financial ratios such as liquidity, profitability, leverage, and activity. A higher Z-Score indicates a lower risk of bankruptcy, while a lower Z-Score indicates a higher risk of bankruptcy.

Answer : D

In a market-responsive supply chain, the ability to quickly respond to changing customer demands and market conditions is critical. When choosing a supplier, a company should prioritize not only quality but also the speed at which the supplier can deliver products. Speed is essential for maintaining high levels of customer satisfaction and competitive advantage in fast-moving markets. A supplier with quick turnaround times can help the company reduce lead times, minimize inventory levels, and respond rapidly to market fluctuations, ensuring that the supply chain remains agile and responsive to customer needs.

Fisher, M. L. (1997). 'What is the right supply chain for your product?' Harvard Business Review, 75(2), 105-116.

Christopher, M., & Towill, D. R. (2001). 'An integrated model for the design of agile supply chains.' International Journal of Physical Distribution & Logistics Management, 31(4), 235-246.

Answer : A

When assessing the risk of business disruption due to natural disasters, a firm must evaluate both the probability of each type of disaster occurring and the potential consequences of such disruptions. This approach ensures a comprehensive understanding of the risk landscape and helps prioritize mitigation strategies based on the severity of the impact. The consequences of a disruption can include financial losses, operational downtime, damage to infrastructure, and reputational harm. By assessing the potential consequences, the firm can develop targeted contingency plans, allocate resources effectively, and enhance overall resilience to various types of disasters.

National Institute of Standards and Technology (NIST). (2015). 'Community Resilience Planning Guide for Buildings and Infrastructure Systems.' NIST Special Publication 1190.

FEMA. (2013). 'Threat and Hazard Identification and Risk Assessment Guide.' Comprehensive Preparedness Guide (CPG) 201.