Real World Supply Chain - 2013 CSCP Review (Volume 2)

From the team at VOLUME 2
REAL WORLD
SUPPLY CHAIN
CSCP
R E V I E W
Prepare for the CSCP exam and learn

supply chain while youre at it.
Over 550 Practice Questions
Instructor Support
Organized by Modules
Answer Key Provided
Updated for 2013

CSCP Review
Volume 2
Copyright 2013 Real World Supply Chain LLC. All Rights Reserved.
WWW.REALWORLDSUPPLYCHAIN.COM
Table of Contents
Module 1: Fundamentals of Supply Chain Management 4
Module 2: Supply Chain Strategy, Design and Compliance 57
Module 3: Implementation and Operations 139
Answers 160
Copyright 2013 Real World Supply Chain LLC 1

About Real World Supply Chain
Were supply chain practitioners just like you. Over the years, weve heard lots
of people newer to the field complain about not finding practical supply chain
training. The available programs and materials tend to either be too theoretical
or too basic.
This gave us the motivation to use the Internet to share concrete,

straightforward, and down-to-earth supply chain insights that people could
actually use.
As a team, weve managed supply chains representing revenues close to $20

billion. We bring approximately 17 years of combined supply chain
experience. We hold several masters degrees.
But most important, we like to share and learn. So we invite you to please
come visit us at http://realworldsupplychain.com or send us an email at
team@realworldsupplychain.com.
We look forward to meeting you.

Stuff We Have to Discuss
Please bear with us as we take care of some admin stuff. You probably
already understand these, but we put together this page just to make sure.
The Partners of Real World Supply Chain LLC are not affiliated in any way with
its past or present employers. It is also not affiliated with any industry
association.
Exam questions provided here were independently developed by our

team. They are not actual test questions. While it was our supreme goal to
develop questions that represent the actual exam, there is no way a third party
can do that perfectly.
Each persons experience, dedication and motivation will be different. So, as

you can assume, we cannot guarantee any specific results even if you
practice with the questions in this book. The purchaser or reader of this
book assumes responsibility for use of the content. Thank you for
understanding.
We worked very hard to ensure that this report is free of errors. But were
a small team. So some details can and do get missed. We do not assume
any responsibility for errors, omissions and varied individual
interpretations of the content. Though if you do spot an error, wed
appreciate it if you could let us know so we can make the required
corrections.
Heres the great part. We are committed to helping you grow and succeed. And
we dont say those words lightly. Wed love to hear about your own challenges.
If the book alone doesnt do the trick, then maybe a
collaborative approach will. Well certainly try our best.
Please contact us for anything.

Module 1: Fundamentals of Supply Chain

Management
Section A: Supply Chain Management Concepts
Question 1
A common process reference model used in supply chain management is:
A. the SCOR model
B. the conceptual model
C. the operating plan
D. the linear optimization model
Question 2
A functional focused firm is likely to have:
A. an ERP implementation
B. CRM & SRM
C. siloed departments and legacy systems with minimal integration
D. CPFR
Question 3
A patent protected product with a predictable demand and in the mature
phase of its product life-cycle would utilize which of the following supply
chain strategies?
A. stable
B. reactive
C. proactive
D. efficient reactive

Question 4
A strong nucleus firm that is able to leverage its position in the market place
with its suppliers to demand cost reductions is most likely utilizing which of
the following supply chain strategies?
A. low cost
B. best cost
C. targeted cost
D. broad differentiation
Question 5
A Supply Chain professional is best described by:
A. being a specialist in traditional functions
B. being able to see the supply chain as one continuous entity made of
linked processes
C. being able to see the weak links in the supply chain
D. being able to communicate well with all the elements of the supply
chain
Question 6
According to APICS, a global network used to delivery products and
services from raw materials to end customers through an engineered flow of
information, physical distribution, and cash is:
A. a value chain
B. a supply chain
C. the SCOR model
D. a consortium
Question 7
All of the following are basic components of a supply chain EXCEPT:
A. suppliers
B. manufacturers
C. customers
D. governments

Question 8
All of the following are benefits of lateral integration EXCEPT:
A. perfect synchronization of the activities of the chain
B. information can be shared simultaneously
C. independent elements develop more expertise than in-house
elements
D. achieve economies of scale
Question 9
All of the following are drivers of change in today's supply chains EXCEPT:
A. terrorism
B. technology
C. complexity reduction
D. global trade
Question 10
All of the following are key components of the definition of supply chain
management, EXCEPT:
A. monitoring of supply chain activities with the objective of creating net
value
B. synchronizing of supply and demand
C. building a competitive infrastructure
D. selecting suppliers
Question 11
All of the following are part of the basic supply chain model EXCEPT:
A. distributor
B. producer
C. customer
D. supplier

Question 12
All of the following are trends that increase the need for supply chain
integration EXCEPT:
A. longer product life cycles
B. global expansion
C. increased project complexity and scope
D. greater market volatility
Question 13
All of the following are types of product or service differentiation EXCEPT:
A. quality
B. diversity
C. customer features
D. mass marketing
Question 14
All of the following have brought supply chain management to the forefront of
business focus EXCEPT:
A. rapid rate of change in web-based IT technologies
B. longer product life cycles
C. globalization
D. financial pressures
Question 15
An arm's length relationship is best for:
A. value added partners
B. proprietary information
C. single sourced partnerships
D. commodity suppliers

Question 16
As companies continue to face pressures on margins, organizations are
looking for supply chain efficiencies in all of the following areas EXCEPT:
A. inventory optimization
B. payment terms with suppliers
C. reductions of manufacturing lead-times
D. extensions on customer payment terms
Question 17
Customer value creation is determined by improving all of the following
EXCEPT:
A. quality
B. reliability
C. availability
D. affordability
Question 18
During Stage 2 of supply chain management evolution, the nucleus firm
undertakes all of the following specific initiatives EXCEPT:
A. integrate training techniques of different departments
B. develop reliable research techniques
C. find ways to reduce levels of inventory
D. reduce transportation costs
Question 19
Given the trend towards globalization and outsourcing, effective supply
chain management requires:
A. higher levels of communication
B. more efficient delivery routes
C. better tracking technologies
D. more formal coordination and collaboration

Question 20
High-end jewelry is most likely marketing using which of the following
techniques?
A. mass marketing
B. niche marketing
C. telemarketing
D. internet marketing
Question 21
In a typical supply chain, raw materials are transformed into products at
which node of the supply chain?
A. suppliers
B. manufacturers
C. distributors
D. customers
Question 22
In the SCOR model, the DELIVER process involves all of the following
EXCEPT:
A. warehouse management
B. customer invoicing
C. selecting carriers
D. releasing product
Question 23
In the SCOR model, the PLAN process involves all of the following
EXCEPT:
A. management of the transportation activities
B. balance resources
C. management of supply chain performance
D. align supply chain unit plan with the financial plan

Question 24
In the SCOR model, the SOURCE process involves all of the following
EXCEPT:
A. schedule deliveries
B. schedule production activities
C. assess supplier performance
D. maintain data
Question 25
Lateral integration involves which of the following?
A. decreasing departments to consolidate the work
B. arranging for suppliers and customers to have stakes in one another
C. maintaining control of activities
D. outsourcing various activities
Question 26
Niche products for niche customer segments is best supply using which of the
following supply chain strategies?
A. focused differentiation
B. best cost
C. focused low cost
D. broad differentiation
Question 27
Reverse supply chain is employed for the following reasons, EXCEPT:
A. repairs
B. disposal
C. recycling
D. quality control

Question 28
Stage 1 technical communications are MOST likely to be:
A. collaboration focused
B. functional focused
C. role-based
D. cross-enterprise
Question 29
Studies currently estimate that supply chain costs often are approximately
what percentage of top line revenues?
A. 0.5
B. 0.1
C. 0.9
D. 0.05
Question 30
Supply chain management aims to create value for all of the following
EXCEPT:
A. customers of the firm
B. suppliers of the firm
C. employees of the firm
D. industry organizations
Question 31
Supply chain management should aim to:
A. lower cost of logistics
B. reduce cost without reducing customer service
C. increase the chain revenue
D. remove defects and unnecessary motion

Question 32
Supply chain visibility systems reduce customer service costs by:
A. reducing stock outs
B. reducing customer phone calls
C. increasing inventory
D. optimizing transportation
Question 33
Supply chains create value by:
A. increasing profitability and return to shareholders
B. providing multiple variants of products for customers
C. making transaction processing more efficient
D. developing more accurate forecasts
Question 34
Supply chains should be configured to:
A. customers needs as well as trading partners capacities
B. suppliers capacity as well as retailers reach
C. manufacturers schedule as well as customers need
D. retailers network as well as suppliers capacity
Question 35
The customers that supply chain professions normally refer to are:
A. the retailers because they control product sales
B. the large, national accounts because they account for the majority of
revenues
C. the end users because they are ultimate consumers of the product
D. subject matter experts because their opinion is most relevant to our
product

Question 36
The first step in Stage 4 supply chain management evolution is:
A. develop a fully integrated end to end supply chain
B. collaboration on planning and design between supplier and producer
C. extending one business process beyond the boundary of the
individual
D. the development of more efficient replenishment policies
Question 37
The largest benefit of increased information sharing across the enterprise
is:
A. cost reduction
B. better bottom line results
C. demand enhancement
D. agility improvement
Question 38
The most accurate way to differentiate vertical from horizontal chain
management is:
A. vertical chain management dictates all the activities in a supply
chain
B. vertical chain management brings the supply chain inside one
organization
C. vertical chain management aims to garner the expertise in elements
that have been judged to be least effective
D. vertical chain management aims to outsource those elements not
directly involved in the chain
Question 39
The reverse flow of products in a supply chain is necessary for:
A. obsolete products
B. products returned for repairs
C. rejected products
D. unclaimed products

Question 40
The stages of supply chain management evolution are based on:
A. the need for clear internal goals
B. the introduction of new advances
C. the reproduction of advances made over the past few decades
D. the need to increase efficiency
Question 41
The supply chains contribution to society can include all of the following
EXCEPT:
A. job creation
B. positive environmental impact
C. increased barriers to entry
D. increased access to products and / or services
Question 42
Tier 2 suppliers are:
A. service suppliers that cater both to tier 1 and customers alike
B. materials suppliers that cater both to tier 1 and customers alike
C. materials and / or service suppliers that cater to tier 1 suppliers
D. materials and / or service suppliers that handle less important
products that the customer may need
Question 43
Trust and communication between internal departments increases as a firm
moves to:
A. an internally integrated firm
B. an externally integrated firm
C. a functionally focused firm
D. a cross-enterprise collaboration firm

Question 44
Vertical supply chain management refers to:
A. bringing the supply chain inside one organization
B. lining up the entities one of top of the other for analysis
C. strategically outsourcing parts of the supply chain
D. forming a virtual supply chain
Question 45
What is one attribute that supply chain management professionals must
possess?
A. a big picture view of the supply chain in order to see all processes
as linked
B. expertise in all aspects of operations management
C. financial management skills
D. ability to adjust to the various goals of each entity the supply chain
Question 46
What two processes do Tier 2 customers perform in the SCOR model?
A. deliver and return
B. source and deliver
C. source and return
D. plan and source
Question 47
When differentiating supply chain and value chain which statement is most
accurate?
A. The value chain and supply chain have no relation to each other and
are mutually exclusive.
B. The supply chain is but one part of the value chain.
C. The term value chain is used when the supply chain handles
expensive items.
D. The value chain is a supply chain that increase a products value.

Question 48
Which of the following best defines the term "supply chain"?
A. a global network used to deliver products and services from raw
materials to end customers through an engineered flow of
information, physical distribution, and cash
B. a set of linked processes that take place in the extraction of
materials for transformation into products for distribution to
customers
C. the process of ensuring raw materials are available for production
D. a collaboration of various companies outside of the manufacturing
corporation
Question 49
Which of the following describes the typical flow of cash in a supply chain?
A. customer to producer to supplier
B. producer to customer to supplier
C. supplier to producer to customer
D. customer to supplier to producer
Question 50
Which of the following flows both upstream and downstream across all
nodes of the supply chain?
A. information
B. cash
C. physical materials and services
D. complaints
Question 51
Which of the following flows from upstream in the supply chain starting at
raw material suppliers to customers located downstream in the supply
chain?
A. physical materials and services
B. information
C. returns
D. cash

Question 52
Which of the following is not addressed by the SCOR model?
A. availability
B. reliability
C. synergy
D. quality
Question 53
Which of the following is not an example of a supplier?
A. utility providers for electricity and water
B. office supplies manufacturer
C. accounting firms
D. distributors
Question 54
Which of the following is not part of the Three Vs of supply chain
management?
A. viability
B. velocity
C. visibility
D. variability
Question 55
Which of the following is the LEAST significant challenge in managing
today's global supply chains?
A. data availability
B. global competition
C. shorter product life cycles
D. increase product variety

Section B: Supply Chain Alignment with Business Strategy
Question 1
A limited number of suppliers necessitates which of the following?
A. a strategic alliance to corner the market
B. a strategic alliance to insure that competitors are limited in acquiring
the product
C. a strategic alliance to guarantee the continued availability of the
product
D. a strategic alliance to protect any trademarks
Question 2
A residential appliance manufacturer teaming up with a professional
kitchen equipment manufacturer is a good example of:
A. strategic growth
B. increased market access
C. operations strengthening
D. adding value to products
Question 3
A significant change in business direction may lead to:
A. a complete recasting of the supply chain
B. a partial recasting of the supply chain
C. an increase in efficiency of the supply chain
D. an increase in flexibility of the supply chain
Question 4
All of the following are areas of strategic planning focus EXCEPT:
A. organizational design
B. processes
C. metrics
D. inventory

Question 5
All of the following are barriers to collaboration EXCEPT:
A. misalignment of incentives
B. technology
C. end-to-end view of the supply chain
D. equitable distribution of gains and challenges
Question 6
All of the following are forms of participant resistance to implementing
CRM and SRM EXCEPT:
A. customer resistance
B. distributor resistance
C. universal resistance
D. supplier resistance
Question 7
All of the following are steps to creating integrated supply chain networks,
EXCEPT:
A. adopt the right attitudes
B. adhere to collaborative principles
C. ask the right questions
D. hire consultant with expertise in building collaborative partnerships
Question 8
All of the following are typical requirements when implementing CRM and
SRM EXCEPT:
A. new job definitions
B. new organization structure
C. new corporate vision
D. new technology platform

Question 9
An area of Strategic Planning is Organizational Design. Which of the
following is associated with the 3rd stage of Organizational Design?
A. Cross functional teams are centrally coordinated.
B. Tactical job related matters are coursed through formal
communication.
C. Cross functional teams are formed.
D. Communication flows horizontally in departmental teams.
Question 10
Channel partners not directly related to the firm's production or customers are
part of what collaboration dimension?
A. vertical
B. horizontal
C. open
D. closed
Question 11
CRM and SRM must be implemented at the:
A. main partners in a supply chain
B. external and internal customer level
C. micro and macro level
D. management level downwards
Question 12
Decisions at the following level typically have the largest impact on the
firm's long term success:
A. supply chain master planning
B. operational planning
C. strategic network design
D. operational execution

Question 13
Each of the following is an example of collaboration between partners in a
supply chain, EXCEPT:
A. vendor-managed inventory (VMI)
B. continuous replenishment (CR)
C. total quality management (TQM)
D. quick response (QR)
Question 14
How many degrees of collaboration are between informal collaboration and
supplier design?
A. 0
B. 3
C. 2
D. 1
Question 15
Implementing CRM and SRM may require all of the following EXCEPT:
A. new business vision and mission statement
B. new business organization
C. new job definitions
D. new definitions for communication and collaboration
Question 16
In a forecast driven enterprise strategy, the initial forecasts are collected
from:
A. suppliers with access to raw material inventories
B. retailers with access to customer demand data
C. manufacturers with access to production schedules
D. retailers with current inventory data

Question 17
In integrating the supply chain, the 4th of the six logical steps is:
A. develop an effective export-import strategy
B. select transportation modes and carriers
C. develop state-of-the-art information systems
D. select warehouse locations
Question 18
Increasing information sharing within supply chain networks benefits their
participants by increasing their ability to efficiently reach common goals
and by:
A. decreasing redundancies
B. resolving possible conflicts of interest
C. decreasing visibility in the chain
D. reducing total costs
Question 19
Of the following, which is not a common response to an anticipated
change in the market?
A. pursue cost efficiencies
B. watching trends in demand at the next step downstream
C. design modular products
D. develop multiple supply chains
Question 20
One characteristic of a customer-focused business is:
A. shares insights about customers within supply chain
B. develops strategies to offer stream of products to customers
C. maintains elaborate and multi-step purchase processes
D. provides stable products that tend to remain unchanged

Question 21
Suppliers and customers are part of what collaboration dimension?
A. horizontal
B. lateral
C. open
D. vertical
Question 22
The definition of supply chain responsiveness is:
A. the speed at which a supply chain changes products to satisfy the
customer
B. the speed at which a supply chain provides products to the
customer
C. the speed at which a supply chain adapts products to the customer
demand
D. the speed at which a supply chain recalls products from the
customer
Question 23
The following are common reasons to change the supply chain strategy
EXCEPT:
A. market dynamics
B. realignment of business direction
C. prediction of market changes
D. change in management
Question 24
The following are major considerations when setting up a demand-driven
supply chain, EXCEPT:
A. real demand data visibility along the chain
B. supply chain partner trust and collaboration
C. responsiveness and ability to effect change
D. input to corporate forecasting exercise

Question 25
The most important aspect of the supply chain strategy should:
A. be forward looking
B. be on the cutting edge of technology
C. focus on customer needs
D. integrate various entities that delivery the sub processes
Question 26
The simplest reason for collaboration over complex items is:
A. the level of security necessary to safeguard the items
B. the level of planning needed to get the item right in the necessary
time frame
C. the number of suppliers supplying the raw materials
D. the number of customers demanding the product at the same time
Question 27
To ensure ongoing effective and efficient collaboration, organizations must
create all of the following EXCEPT:
A. a structure for decision making
B. structured methods for managing information flow
C. common models, techniques and expectations
D. structured cross training sessions for its workers
Question 28
What is a significant risk when employing a demand-driven supply chain?
A. higher stock out rates
B. demands change
C. manufacturing changes the forecast
D. excess inventory

Question 29
What is the main reason for increasing the number of warehouses?
A. reducing sorting time
B. easier administration
C. increase customer service
D. presence in various time zones
Question 30
Which is least important when discussing changing the supply chain
strategy due to market conditions?
A. availability
B. customer service
C. flexibility
D. efficiency
Question 31
Which of the following describes a push supply chain?
A. A supply chain that operates based on end user forecasts
B. A supply chain that manufactures products based on historical
production volume
C. A supply chain wherein availability of raw materials determines
products to push
downstream
D. A supply chain that focuses on pushing cycle time lower
Question 32
Which of the following is key to realizing the full benefits of an integrated
supply chain network?
A. total information sharing
B. common business goals
C. collaborative planning
D. communication

Question 33
Which of the following is not a criteria in determining the level of
collaboration?
A. precision
B. quality
C. cost
D. availability
Question 34
Which of the following is not a typical roadblock to implementing CRM/
SRM?
A. participant resistance
B. technological limitations
C. CRM and SRM cannot coexist
D. supply chain solutions are overly complex
Question 35
Which of the following is part of the 2nd lowest degree of communication
between partners?
A. forecast sharing
B. strategy development
C. design collaboration
D. mergers
Question 36
Which of the following is part of the specific principles organizations in a
supply chain must adhere to in order to achieve a successful collaborative
relationship?
A. focus on the weakest link
B. focus on the most profitable partners
C. focus on the whole chain
D. focus on the individual partners

Question 37
Which of the following statements is most accurate when discussing a
customer focused strategy?
A. The supply chain customer deserves a balance of quality, price and
availability.
B. The supply chain customer deserves the most advanced product.
C. The nucleus company considers whats good for the customer but
not at the expense of the good of the company itself.
D. The whole supply chain balances whats good for the customer with
whats good for the supply chain.
Question 38
Which statement is most true?
A. After developing supply chain strategies the next step is aligning the
strategies with the financial plans.
B. After developing supply chain strategies the next step is setting up
the communication channels.
C. After developing supply chain strategies the next step is developing
the contingency plans.
D. After developing supply chain strategies the next step is defining
measurable objectives.

Section C: Supply Chain Design and Improvement

Considerations
Question 1
A best-in-class benchmark is found:
A. among competitors
B. even in other industries
C. with the industry leader
D. in theory only
Question 2
A way to measure supply chain performance is to assess:
A. the industrys weakest performance
B. a competitors previous performance
C. the industry average performance
D. a competitors future desired performance
Question 3
All of the following perspectives are measured by the Balanced Scorecard
(BSC) EXCEPT:
A. customer perspective
B. business process perspective
C. innovation and learning perspective
D. technology perspective
Question 4
Each of the following is a general approach to benchmarking EXCEPT:
A. competitive benchmarking
B. best-in-class benchmarking
C. process benchmarking
D. financial benchmarking

Question 5
Progressing towards a benchmark necessitates:
A. a direct road map or blueprint to identify the fastest and most
efficient steps
B. a flexible road map or blueprint to identify steps needed, but that
can change when necessary
C. a series of short road maps or blueprint to identify the immediate
steps that can affect the most change
D. a long road map or blueprint that identifies the ultimate goal and the
minor goals along the way
Question 6
TQM defines its goal as a search for perfection that is:
A. never-ending
B. attained when the industry best is surpassed
C. completed when the company becomes the industry benchmark
D. reach when the organization has found and solved all the problems
Question 7
What is one of the most important requirements for a metric to be a KPI?
A. It should be applicable to the processes across the entire supply
chain.
B. It should be written in financial terms.
C. It needs to include inventory levels in the distribution centers.
D. It should only measure performance within the last 12 months.
Question 8
When planning improvement initiatives, one has to:
A. simultaneously improve all the processes in the chain to prevent
weak links
B. select the weakest process to focus attention on then list the next
weakest and so on.
C. select the processes that are central to the supply chain strategy
D. benchmark competitor processes

Question 9
Which is a specific key element of a balanced scorecard?
A. Communicate the strategic purpose of the balanced scorecard to
key partners
B. Develop goals and measures consistent with financial plans
C. Develop goals and measures consistent with the corporate and
supply chain strategies
D. Communicate the strategic purpose of the balanced scorecard with
key
Question 10
Which is not a KPI of product introductions?
A. production schedules
B. lead time
C. warranties
D. returns
Question 11
Why is it not effective to simply improve one process in the supply chain?
A. because the supply chain is a system with a lot of interrelated
processes
B. improving only one processes may lead to deterioration in the others
C. from an organization point of view, you want all employees
developing at the same rate
D. it is difficult to choose what process to address first

Section D: Inventory Management
Question 1
MRO inventory is kept to address:
A. customers returning products with defects
B. production machinery breakdowns
C. orders lost in transit
D. products that need rework
Question 2
Reducing manufacturing cycle time reduces WIP inventory levels and
costs. Cycle time is:
A. the time from when the raw materials arrives until product
components are assembled
B. the time it takes between shifting from downtime to production time
C. the time needed to develop / revise products
D. the entire time it takes to make a product
Question 3
What is the term for inventory that has only been partially converted to
finished goods?
A. raw materials
B. work-in-process
C. on-hold
D. MRO

Question 4
Which is most true about keeping finished goods in inventory?
A. Finished good inventory should be kept in inventory at the minimum
level required to meet customer service targets.
B. Finished good inventory should be kept in warehouses nearest to
the market to minimize the delivery costs.
C. Finished good inventory should be at maximum levels to protect
against stock
D. Finished good inventory should be carefully maintained since any
defects will immediately be noticed but not easily repaired.
Question 5
WIP inventory, finished good inventory, and MRO inventory are types of
inventory along with:
A. supplies inventory
B. capacity inventory
C. raw materials inventory
D. resources inventory
Question 6
Inventory is:
A. an expense
B. a liability
C. a necessary cost of doing business
D. long-term asset
Question 7
Two key components for successful inventory management and inventory
optimization are:
A. supply chain collaboration and standard cost reduction initiatives
B. supply chain collaboration and inventory visibility
C. supply chain information visibility and increased manufacturing lead-
time
D. reduced supply variability and increase forecast error

Question 8
All other things being equal, a decrease in inventory will most likely result
in:
A. an increase in working capital
B. an increase in days sales outstanding
C. reduction in working capital
D. a decrease in accounts payable
Question 9
Defining target inventory levels at all nodes of the supply chain and for all
materials is part of:
A. inventory management
B. inventory policy
C. supply chain design
D. supply chain planning
Question 10
How much safety stock inventory is required within the supply chain if
supply variability is zero and forecast error is zero % at all forecast lags?
A. 2 sigma
B. sigma
C. zero
D. 60 days of supply
Question 11
Reductions in forecast error support:
A. reduced inventory levels
B. increased sales
C. reduced transportation lead times
D. reduced inventory turns

Question 12
Increasing the lead-time on information within the supply has what impact on
total supply chain inventory levels assuming all other factors
unchanged?
A. decreased inventory
B. constant inventory
C. increased inventory
D. no impact
Question 13
Aggregate forecasts tend to be:
A. more accurate than SKU level forecasts
B. less accurate than SKU level forecasts
C. as accurate as SKU level forecasts
D. less valuable than SKU level forecasts
Question 14
Unreleased inventory that is procured from outside suppliers for use as
inputs to manufacturing operations is considered:
A. work-in-process inventory
B. finished goods inventory
C. raw material inventory
D. buffer inventory
Question 15
Material released for sale to final customers is considered:
A. work-in-process inventory
B. safety stock inventory
C. buffer inventory
D. finished good inventory

Question 16
Moving from air transportation to ocean transportation has what impact on
inventory?
A. a decrease in inventory due to lowered transportation expense
B. an increase risk of inventory write-off
C. an inventory increase equal to the difference between air and ocean
transportation lead-time
D. an increase risk of inventory theft
Question 17
Inventory maintained within the supply chain to buffer anticipated supply and
demand variability is considered:
A. buffer inventory
B. work-in-process inventory
C. in-transit inventory
D. safety stock inventory
Question 18
A decoupling inventory strategy to manage a capacity constrained
resource would be
A. maintain lower finished good safety stock levels
B. increase manufacturing lead-times
C. maintain buffer inventory in front of the constrained resource to
reduce the risk of downtime caused by the unavailability of input
materials
D. increase demand variability
Question 19
Product cost plus logistics costs is referred to as:
A. landed cost
B. acquisition cost
C. standard cost
D. procurement cost

Question 20
An increase in the frequency of ordering material tends to result in:
A. reduced ordering cost
B. increased inventory carrying cost
C. increased ordering costs
D. increased risk cost
Question 21
The goal of inventory management should be:
A. increasing customer service levels, increasing inventory turns while
maintaining a flexible supply chain
B. increase customer service levels and decrease inventory turns
C. decrease inventory turns and maintain customer service levels
D. increase inventory value and increase inventory turns
Question 22
Excessive work-in-process inventory levels tend to:
A. lead to poor manufacturing capacity management
B. reduced finished good inventory levels
C. increase inventory write-off exposure associated with unforeseen
quality issues
D. decreased customer service levels
Question 23
A financial reserve is often set up for:
A. inventory produced for downside risk
B. inventory produced for upside risk
C. inventory projected to be sold within the next 3 months
D. inventory projected to be written off due to expiration exposure

Question 24
A company operating at excessive working capital levels may attempt to do
what to increase cash flow or finance operations?
A. increase days of sale outstanding
B. reduce accounts payable
C. reduce inventory
D. increase accounts receivable
Question 25
Customers and suppliers financing your operations occurs when a
company achieves:
A. positive working capital
B. neutral working capital
C. inverse working capital
D. negative working capital

Section E: Logistics Fundamentals
Question 1
A recent trend in 3PL arrangements is:
A. shorter but more flexible contractual relationships
B. integration of storage and tracking
C. cross training of executives to develop better working relationships
D. long-term contractual relationships
Question 2
All of the following are benefits of using third party partners EXCEPT:
A. leverage of current logistics technology
B. increase in business focus
C. scalability
D. control
Question 3
All of the following are true about the term "logistics" EXCEPT:
A. it is part of supply chain management
B. the largest contributor to its cost is transportation
C. it may be defined to include inventory management and forecasting
D. it may be defined to include manufacturing
Question 4
In the reverse logistics hierarchy, the 4th level of the five levels is
A. repair items that have potential
B. reclaim any proprietary technology
C. recover energy during disposal
D. dispose in responsible landfill

Question 5
Substituting information for inventory may utilize postponement centers
which are used to:
A. store WIPS
B. divert wrong orders
C. delay product assembly
D. hold important components
Question 6
The method of reducing stock outs by consolidating stock in centralized
warehouses is:
A. stock merging
B. inventory integration
C. finished goods grouping
D. risk pooling
Question 7
The process supporting the return of material due to returns, repairs and
recycling is called:
A. third-party logistics
B. reverse logistics
C. rapid response
D. cross-docking
Question 8
What is the typical risk of contracting with a fourth-party provider?
A. Loss of direct control over the logistics operations
B. Reduced customer service
C. Reduced capacity
D. Lack of business flexibility

Question 9
Which is a 4PL benefit?
A. A 4PL allows a firm to adapt to different technologies.
B. A 4PL lets the firm hire a contract specialist rather than train or hire
new workers.
C. A 4PL gives a firm the ability to adapt its warehousing, transportation
& packaging needs more rapidly.
D. A 4PL enables faster implementation of new technology.
Question 10
Which is not true about reverse logistics?
A. It will always be handled at a loss.
B. It handles products destined for recycling or disposal.
C. It takes care of items that make the reverse journey from customer
to supplier.
D. Items for reuse can be taken care of by this area of logistics.

Section F: Market Segmentation
Question 1
A source of customer information that provides information on customer
values is:
A. supplier data
B. transaction records
C. distribution points
D. forecast data
Question 2
After an organization has aligned on the mission and goals associated with
creating a customer-focused business, the business should next
compare:
A. the perspective of customers with the greatest lifetime value to that
of customers with low lifetime value
B. the contribution of the few top level customers versus the many low
level customers
C. the expectations of long-term customers and new customers
D. the level of satisfaction among its customer base with that of the
nearest competitor
Question 3
Creating a map for customer segments entails:
A. recognizing businesses have more than one type of customer
B. developing individualized CRM programs
C. ranking customers according to contribution and length of
relationship
D. segmenting the customer base into high value and low value
categories

Question 4
Each of the following are typical customer segments, EXCEPT:
A. segments by customer value
B. segments by income
C. segments by customer needs
D. segments by preferred channel
Question 5
How does contact channel strategy increase profitability?
A. by utilizing the most cost-effective and customer preferred channel
B. by delivering a constant stream of new transactional customers
C. by using only a single channel
D. by leveraging the least complex channel
Question 6
Purchased data as a source for customer information for CRM may be
more useful for:
A. determining market potential
B. getting a broader look at existing customers
C. increasing the information in an organizations customer database
D. acquiring new customers
Question 7
The information source that can best show purchase frequency is:
A. sales representatives
B. transaction records
C. distribution points
D. service representatives

Question 8
The systematic gathering, recording and analyzing of data about problems
relating to the marketing of goods and services is:
A. market assessment
B. market troubleshooting
C. market evaluation
D. market research
Question 9
What is not a specific purpose of market research?
A. setting prices
B. finding market potential
C. analyzing markets
D. refining product design
Question 10
When creating a customer-focused business, after a customer segment
map is created, the company should next:
A. determine how to define customer service
B. develop a CRM program
C. implement CRM programs for the most appropriate customers
D. determine the customers needs
Question 11
Which is most true about total marketing costs?
A. It tends to increase to maintain customer interest.
B. It tends to be level as new and old customers begin to mix.
C. It tend to rise and fall, depending on competitor reactions.
D. It tends to decline after the first in year in a customer relationship.

Question 12
Which of the following is not a business-to-business customers specific
area of expectation from the companies they do business with?
A. potential for long term partnership
B. complementary core competencies
C. continuous improvement
D. knowledge of the customers business requirements
Question 13
Which of the following shows how often things are purchased and how
those purchases are financed?
A. buyer habits
B. product invoices
C. sales receipts
D. transaction records

Section G: Demand Planning
Question 1
A specific drawback to using the moving average algorithm is that it:
A. corrects immediately chance variation, thus not allowing for further
study
B. generally fails to recognize trends
C. requires a large collection of data
D. is of limited use on products that have no seasonal variations
Question 2
A steady movement up or down in recorded data is a:
A. trend
B. development
C. leaning
D. shift
Question 3
All of the following are factors of seasonal demand EXCEPT:
A. hour of day
B. severity of weather
C. product introductions
D. type of holiday
Question 4
All of the following are ways that Marketing contributes to the demand
planning process EXCEPT:
A. market research
B. new product introductions
C. product management
D. financial management

Question 5
An external factor that affects demand is the business cycle. The
business cycle may stimulate or depress demand in:
A. many markets in long term waves
B. the market which the company is focusing on
C. the products that the company is currently producing
D. an immediate way
Question 6
Demand planning needs to take promotions into account because they:
A. affect the budget
B. can cause upward demand fluctuations
C. trigger production schedule changes
D. divert inventory stocks
Question 7
During most product life cycles, peak demand occurs at all of the following
points EXCEPT:
A. after product refinements are made
B. after customers become aware of the product
C. before product launch
D. at the end of product life cycle
Question 8
Forecast error is defined as:
A. the difference between actual demand and the forecast
B. the absolute value of the difference between forecast and demand
C. the error due to choosing the wrong forecasting method
D. the periodic percent error from one period to the next

Question 9
Given multiple years of data, the monthly seasonality index is found by:
A. dividing the average of a particular month by overall monthly
average
B. multiplying the particular months average by an index factor
C. adding 12 monthly averages and dividing by 12
D. dividing the total number of sales in a particular month by total
number of years covered
Question 10
In the pyramid forecasting method, demand is often disaggregated to
individual products based on:
A. inputs of the sales force
B. expected demand of a new product
C. historical demand for a product
D. consensus of the management panel
Question 11
Independent demand is for:
A. multiple components
B. raw materials
C. materials from a single supplier
D. finished products
Question 12
Mean Absolute Deviation for sales and forecasts is calculated by:
A. average errors multiplied by standard deviation
B. standard deviation multiplied by number of periods
C. sum of errors divided by number of errors
D. average of errors divided by number of errors

Question 13
The best reason for the qualitative approach to forecasting is:
A. not all data is 100% accurate
B. forecasting still requires the human touch
C. balance needs to be maintained
D. historical data does not go back far enough
Question 14
The following statement a product that has dependent demand cannot
have independent demand is:
A. false, as products can be both individual products or just
components of bigger products
B. true, as products can only be classified as either components or as
finished
C. false, as products change demand classification in the stages of the
supply chain
D. true, as products maintain classification throughout the supply chain
Question 15
The introduction of a second smoothing constant into the exponential
smoothing equation is called:
A. advanced smoothing
B. seasonal adjustment
C. complex smoothing
D. trend adjustment
Question 16
The quantitative approach to forecasting that focuses upon the demand
related to the product rather than the demand for the product itself is:
A. inherent
B. extrinsic
C. intrinsic
D. nonessential

Question 17
The term "seasonal" as it relates to forecast refers to:
A. any forecasting period
B. one of the four seasons
C. one month
D. one year
Question 18
To be credible, time series forecasts should:
A. include only reliable data sources
B. show at least include 1 type of variability
C. graph as a straight line
D. include an estimate of the degree of potential error
Question 19
When discussing forecasting, seasonality best refers to any changes that are
brought about:
A. by predictable occurrences
B. by temporal phenomenon or by seasons of the year
C. by the cyclical change in product demand
D. by the evolving needs of customers
Question 20
When planning for demand changes due to competition, it is best to have:
A. a large budget
B. flexibility to increase or reduce capacity
C. new product innovations ready for launch
D. a reliable system of getting customer feedback

Question 21
Which of the following is true about nave forecasting?
A. assumes the demand will be consistent from one period to the next
B. makes educational guesses on demand for a new product
C. request input from employees outside of the supply chain
D. it is an error prone forecast

Section H: Customer Relationship Management (CRM)

Concepts
Question 1
A key aspect of sales operations for effective CRM is:
A. capturing and storing relevant customer data
B. a decentralized business data warehouse
C. an end-to-end supply chain planning system
D. a supply chain optimization system
Question 2
A challenge to effective CRM in today's large, global organizations is:
A. too little information
B. too much information
C. long lead-time on information
D. legacy system integration
Question 3
All of the following are true of lifetime customers EXCEPT:
A. marketing costs tend to reduce over time
B. relationship management costs can exceed total marketing costs
C. decreased effort to maintain same level of customer satisfaction
D. increased profitability and growth opportunities
Question 4
All of the following are key processes in effective CRM EXCEPT:
A. measure
B. monitor
C. alliance building
D. report

Section I: Supply Management Concepts
Question 1
A benefit of strategic sourcing is collaboration. This generally means:
A. the company has access to supplier data in real time
B. suppliers will be able to dictate product changes as long as it is
within agreed parameters
C. the company will broker partnerships between rival suppliers to get
the optimal results
D. suppliers can participate in improving the system
Question 2
A partnership type of supplier relationship involves:
A. medium term contracts
B. some interaction with competitors
C. awareness and adaptation to each others cultures
D. extensive communication enforced via contracts
Question 3
A strategy to manage risk when outsourcing is:
A. constant data integration
B. maintaining an acceptable level of redundancy
C. purchasing insurance against errors by 3PLs
D. maintaining primary control of outsourced activities

Question 4
After considering market differential carefully, the company can learn that:
A. there are never good reasons for outsourcing a core competency
B. there are never good reasons to maintain an adequate of poor
competency
C. there are some good reasons to maintain an adequate or poor
competency
D. there is no option but to collaborate with specialized partners to
strengthen weak areas
Question 5
An account manager usually works in which type of supplier relationship?
A. partnerships
B. ongoing relationship
C. buy on the market
D. strategic alliance
Question 6
Each of the following is a benefit derived from strategic sourcing,
EXCEPT:
A. focus on true cost to the customer
B. collaborative
C. increased visibility across the supply chain
D. clear separation of business processes
Question 7
It is essential for management when assessing the current supply chain to
have:
A. a group of strong managers
B. a set of goals to achieve
C. a group from outside of the company to assess objectively
D. a set of meaningful metrics

Question 8
Measuring the success of CRM outsourcing is done by all of the following
EXCEPT:
A. measuring performance expectations at regular intervals so that
changes can be made when needed
B. maintaining ultimate responsibility for CRM to have a close watch
over customers needs and expectations
C. maintaining an exit strategy to reduce operational disruptions that
come with switching
D. maintaining separate relationships among multiple vendors to create
specialized practices
Question 9
One approach to sourcing where organizations buy based on immediate
needs is
A. ongoing relationship
B. strategic sourcing
C. buy on the market
D. strategic alliance
Question 10
Strategic sourcing involves finding and building ongoing relationships with
partners who do all of the following EXCEPT:
A. account for the majority of the organization's purchases
B. provide key materials and services
C. can help the purchaser meeting profitability and customer
satisfaction goals
D. can provide the ultimate lowest cost

Question 11
The merging of cultures is associated with which type of supplier
relationship?
A. collaboration
B. mergers
C. partnership
D. ongoing relationship
Question 12
What is most true? When all the components of a complex electronic
system are made off-shore:
A. knowledge of the systems at the organization is maintained through
supplier communications
B. knowledge of the systems at the organization is no longer
maintained
C. knowledge of the systems at the organization is diluted because of
the transfer of information
D. knowledge of the systems at the organization is enhanced due to
the training done at the supplier
Question 13
What is one significant risk of outsourcing?
A. The firm loses related knowledge and skills related to manufacture
of the product
B. Prices of the material decrease while the shipment is in-transit
C. Suppliers may not deliver on time
D. Materials received are of lower quality

Question 14
Which of the following best describes the term landed costs?
A. all the other expenses that are added to the purchase price of the
material in order to make a fair comparison of prices across various
sources
B. the cost required to ship materials from Asia
C. the fees associated with unloading raw materials at the destination
port
D. the duties paid when importing materials from outside the country

Module 2: Supply Chain Strategy, Design and

Compliance
Section A: Sustainability
Question 1
In order for a company to be sustainability, it must:
A. have an economically viable business model
B. minimize raw material usage
C. minimize energy usage
D. minimize its carbon footprint
Question 2
All of the following are lagging economic indicators EXCEPT:
A. outstanding business loans
B. S&P stock index
C. company profits
D. average duration of unemployment
Question 3
How often does ISO certification need to be renewed?
A. every year
B. every three years
C. every five years
D. every four years

Question 4
Materials considered to present a unreasonable risk to health, safety and
property when transported are considered:
A. cold chain goods
B. dangerous goods
C. in-transit goods
D. unreleased goods
Question 5
The ISO that references social sustainability is:
A. ISO 14000
B. ISO 26000
C. ISO 9000
D. ISO 3000

Section B: Risk Management
Question 1
A specific risk that supply chain strategists assess during risk prevention
is:
A. loss of property
B. loss of communication between supply chain elements
C. loss of a customer
D. loss of a key asset or supplier
Question 2
All of the following are part of supply chain risk management strategies
EXCEPT:
A. redundancy in the supply chain
B. having contingency plans
C. optimizing the supply chain
D. doing research
Question 3
ISO certification must be renewed every:
A. 1 year
B. 3 years
C. 5 years
D. never
Question 4
Managing risk in the supply chain is the responsibility of the:
A. company and its suppliers
B. company and its retailers
C. channel master and individual partners
D. top management of the supply chain elements

Question 5
The fourth key concept in risk prevention strategy is:
A. share risk among stakeholders
B. share risk among key suppliers
C. share risk among supply chain partners
D. share risk among investors
Question 6
The primary benefits of a Customs-Trade Partnership Against Terrorism
(C-TPAT) importer are all of the following EXCEPT:
A. reduced supply chain disruptions risk following a terrorist attack
B. reduced customs fees
C. a more secure supply chain for all stakeholders
D. a reduced number of inspections and shortened border wait times
Question 7
Tracking the performance of a broad portion of the supply chain base is
considered:
A. a risk management technique
B. a necessary certification measurement
C. an effective supplier performance measurement system
D. an integral part of a benchmarking system
Question 8
Which of the following is not a specific tactic to consider when preparing for
disruption?
A. Pay special attention to maintenance of information flows.
B. Develop a sourcing process that takes into account the loss of a key
retailer.
C. Do not rely only on extra stores of inventory.
D. Research best practices in your industry and globally.

Section C: Globalization
Question 1
A firm that arranges transportation for commercial cargo is called a:
A. freight forwarder
B. broker
C. consolidator
D. export packer
Question 2
A shipping association is:
A. a group of carriers that partner up to have better leverage at various
ports
B. shipping line partners that group together against competition
C. smaller exporters banded together in an effort to qualify for rate
discounts
D. smaller shippers joining to compete with large shippers
Question 3
Consolidators offer a service generally suited for:
A. consolidation of small shipments for presentation to an air carrier
B. combining smaller shipments into larger shipments bound for
international destinations
C. smaller firms needing other partners to take advantage of large
shipment discounts
D. filling containers for intermodal shipment
Question 4
In the US, export documentation is needed for shipments valued at:
A. $1,500
B. $2,000
C. $2,500
D. $3,000

Question 5
NAFTA was formalized in:
A. 1997
B. 1996
C. 1995
D. 1994
Question 6
The clear distinction between EMCs and ETCs is:
A. ETCs deal will foreign transactions
B. EMCs are not necessarily exporters, rather consultants
C. ETCs buy the exporters goods and resell them in a foreign market
D. EMCs will locate importers to buy goods from companies looking to
expand internationally
Question 7
The most common tool in currency hedging is:
A. currency options
B. currency swaps
C. currency futures
D. currency forwards
Question 8
The set of terms used in contracts of carriage is called:
A. Incoterms
B. terms of service
C. master agreement
D. payment terms

Question 9
Which is always true in free trade zones?
A. Retail trade is forbidden.
B. Goods will have an agreed time limit on storage.
C. Reduction of import duties is assured.
D. Potential compliance problems need to be solved before entry.
Question 10
Which of the following is true about bills of lading (B/L)?
A. It is a letter issued by a bank
B. It serves as the carrier's contract
C. It is similar to a certificate of origin
D. It attests that a policy is taken out to cover the cargo

Section D: Logistics
Question 1
A firm that leases a fleet of vehicles to move its own products is called a:
A. private carrier
B. common carrier
C. contract carrier
D. exempt carrier
Question 2
A set of procedures for the efficient operation of a warehouse is called:
A. an automated storage and retrieval system
B. a warehouse management system
C. an automated guided vehicle system
D. a ERP system
Question 3
A type of operation that may be done at a value-added warehouse is:
A. consolidation of parts and total assembly of simple products
B. parts storage to open up space at factories
C. cycle/ physical counts of inventory
D. final assembly of products for mass customization
Question 4
Air transport is especially suited to:
A. cargo requiring significant packaging
B. specialized cargo
C. valuable, fragile and perishable cargoes
D. cargo that needs to be delivered immediately

Question 5
All of the following are crucial to effective consolidation of movement
EXCEPT:
A. expeditious unloading of products
B. accurate tracking of items
C. fast reloading of cargo
D. large fleet of delivery trucks
Question 6
All of the following are major liability concerns for transport EXCEPT:
A. perishability
B. possibility of weather damage
C. value per pound
D. susceptibility to explosion
Question 7
An agreed potential trade-off to reduction in transportation cost is:
A. increase in transit times
B. increase in inventory cost
C. increase in environmental impact
D. infrequent deliveries
Question 8
As the number of warehouses increase, which is most true?
A. Inventory costs may go down because it is shared among the
warehouses.
B. Transportation costs may increase because the distances between
warehouses increases.
C. Generally, cost of lost sales will decline before rising again.
D. Total cost will not always increase.

Question 9
Assortment capability of warehousing benefits customers by:
A. increasing the number of options for customers in terms of product
choices
B. reducing the number of suppliers a customer has to deal with to
acquire related goods
C. eliminating the need to shop around for other product sources
D. providing a wider range of seasonal goods
Question 10
Cross-docking occurs when:
A. products are stored at strategic locations
B. stocks are transferred directly from supplier vehicles to distribution
vehicles
C. warehousing of stocks are shared among supply chain partners
D. multiple products can be stored in one location
Question 11
Each of the following is a form of warehouse ownership, EXCEPT:
A. private warehouses
B. public warehouses
C. contract warehouses
D. interim warehouses
Question 12
Generally, the more strategically a warehouse is placed in relationship to
markets, the:
A. shorter the delivery routes
B. easier it is to maintain an accurate inventory of products
C. less inventory will build up in the system
D. more manpower is needed to handle frequent deliveries

Question 13
In terms of costs, which is true when adding warehouses to the system?
A. inventory costs rise
B. transportation cost rise
C. setup costs decrease
D. costs do not rise
Question 14
Independently owned warehouses for hire are classified as:
A. private warehouses
B. public warehouses
C. contract warehouses
D. service warehouses
Question 15
Logistics reengineering projects can best help increase tax savings by:
A. rerouting delivery through longer but less tax-ridden routes
B. reducing manufacturing costs by choosing suppliers from low-tax
jurisdictions
C. reducing lead times to avoid tax penalties
D. reducing tax liabilities by moving facilities away from high tax
jurisdictions
Question 16
One of the most common modes of transportation is:
A. air
B. water
C. multimodal
D. truck

Question 17
Rail transport has an edge over water transport in carrying very heavy
loads in what area?
A. accessibility to diverse destinations and points of origin
B. ease of loading products unto the mode of transport
C. product security with little chance of theft
D. minimization of damage to product while in transit
Question 18
Shipment of products from multiple sources that are broken down and
assembled into the desired product mix is a process of which warehouse
capability?
A. break bulk
B. consolidation
C. mixing
D. assortment
Question 19
Sorting and consolidation is MOST significant with which picking strategy?
A. basic order picking
B. batch picking
C. zone picking
D. wave picking
Question 20
The area of logistics management dealing with product welfare while not in
transit is:
A. storage
B. cargo care
C. warehousing
D. product storing

Question 21
The birdyback service is best suited for:
A. highly valuable packages that need to be delivered immediately to
the destination
B. small packages that may or may not be perishable
C. cargo that can fit in the cargo hold on a plane
D. commodities that originate or conclude in smaller cities not served
by major airports
Question 22
The combination of different modes of transportation is called:
A. intermodal transport
B. variable transport
C. flexible transport
D. open transport
Question 23
The following are examples of the use of vehicles for temporary storage,
EXCEPT:
A. short-term storage
B. crowded facility
C. changed destination
D. increased security
Question 24
The least used method of transport is:
A. pipeline transport
B. air transport
C. water transport
D. rail transport

Question 25
The main benefit to the postponement capability of warehouses is:
A. training for staff to develop final production skills
B. delivery lead-time to customers can be increased
C. risk pooling can be utilized resulting in more efficient use of
component inventory
D. finished goods can easily be adapted to changing market conditions
Question 26
The Motor-Carrier Act of 1980 changed what aspect of the contract carrier
business?
A. the maximum price that can be charged per contract
B. the routes the carrier must take
C. the number of active contracts allowed at any one time
D. the type of cargo allowed
Question 27
The natural market for truck transport is:
A. high value items that need immediate point-to-point delivery
B. large shipments that have multiple destinations
C. low value shipments that have small risk of theft
D. relatively small shipment of high value items traveling a short
distance
Question 28
The number, placement and efficient operation of a warehouse should be
primarily concerned with:
A. introduction phase of product
B. growth phase of product
C. end phase of product
D. the entire product life cycle

Question 29
The piggyback service is when:
A. a truck travels on a train to cover long stretches of the delivery route
B. a truck trailer or container of cargo is placed on a railroad flatcar
C. smaller cargo is placed in available spaces of bulky cargo going in
the same direction
D. cargo will not be sent direct, rather through a series of different
cheaper routes
Question 30
The primary value water transport provides is:
A. huge loads
B. reliability
C. reduction of road congestion
D. low cost
Question 31
The tactical level of shipment planning involves:
A. distribution center network design
B. evaluation of routes and carriers
C. daily shipment schedule development
D. hourly shipment schedule development
Question 32
The warehouse stockpiling capability is best suited for which type of
product?
A. technological
B. industrial
C. pharmaceutical
D. agricultural

Question 33
To qualify as a private carrier, the firm must:
A. own or lease vehicles for its use, manage their operation and not be
primarily in the transportation business
B. own a fleet of vehicles to transport cargo of another firm exclusively
C. have exclusive access to various types of vehicles that it can use at
its own discretion
D. own all the vehicles it uses to transport its cargo and have the option
to rent out the vehicles when not in use
Question 34
Unmanned machines that move along optical tape or magnetic wire are:
A. automated guided vehicle
B. automatic pallet trucks
C. autonomous retrieval lifter
D. robotic forklifts
Question 35
Water transportation was the only way to conduct trade until the:
A. 17th century
B. 18th century
C. 19th century
D. 20th century
Question 36
What is one type of piggyback service?
A. trailer on flatcar
B. express service
C. custom critical
D. small package service

Question 37
What is the trade-off to the benefit of speed provided by air transport?
A. safety
B. cost
C. pollution
D. noise
Question 38
What will cost more per pound to ship?
A. ping-pong balls
B. gold bars
C. steel
D. oil
Question 39
When considering the volume of the cargo to be shipped, it is best to:
A. avoid large loads to lessen cost
B. minimize mixing loads to avoid confusion later
C. consolidate small loads into larger ones
D. ship more often to eliminate chances of losing large volume of cargo
at one time
Question 40
Which is an example of a land bridge in the context of intermodal
transport?
A. from Norway through Finland by highway, through Russia on rails,
down to China via truck
B. from Mexico through the US via railway up to Canada
C. from the coast of Asia to the US west coast by ocean vessel, from
west to east on rails, the from the Atlantic coast to Europe on
another ship
D. from New Zealand via ship to Australia, onto Singapore via another
ocean vessel

Question 41
Which is not a factor of transportation economics?
A. space availability
B. handling
C. liability concerns
D. density
Question 42
Which is not a straightforward benefit to private warehouses?
A. budget flexibility
B. control
C. market presence
D. no markup
Question 43
Which is not true about pipelines capabilities?
A. cargo damage is nonexistent
B. extreme weather will not affect them C
cargo loss is nonexistent
D. power outages do not affect them
Question 44
Which of the following provides specialized packaging services?
A. Export Packing Companies
B. Expert Packing Companies
C. Specialist Packing Companies
D. Professional Packing Companies

Question 45
Which transportation mode is available for continuous use?
A. truck
B. air
C. pipeline
D. water

Section E: Managing the Supply Chain
Question 1
An essential requirement for successful supply chain management is:
A. goal-driven organizations
B. fast adapting organizations
C. process-oriented organizations
D. lean but efficient organizations
Question 2
Supply Chain Management Cost (SCMC) is defined as:
A. all direct and indirect operational SCOR business process expenses
B. the landed cost of the material plus the manufacturing cost
C. opportunity cost related to not implementing continuous
improvement projects
D. all operating expenses associated with logistics and warehousing
Question 3
Upside supply chain adaptability is the amount of increased production an
organization can achieve and sustain in:
A. 1 year
B. 6 months
C. 1 month
D. 2 weeks
Question 4
All of the following are common customer-focused metrics EXCEPT:
A. stockout frequency
B. inventory turns
C. backorders
D. fill rate

Question 5
Which of the following metric measures product support?
A. perfect order fulfillment
B. fill rate
C. backorder value
D. customer complaints
Question 6
The percentage of orders delivered on time with the appropriate
documentation and with no delivery issues is measured in which of the
following metrics?
A. perfect order fulfillment
B. fill rate
C. line order fulfillment
D. order quantity fulfillment
Question 7
The order fulfillment cycle is:
A. order fulfillment process time plus order fulfillment dwell time
B. order fulfillment process time plus transportation lead-time
C. transportation lead-time plus lead-time on information
D. lead-time on information plus lead-time on planning cycle
Question 8
A supply chain's ability to react to significant decreases in demand without
experiencing excess expenses is called:
A. supply chain adaptability
B. downside supply chain adaptability
C. supply chain reactiveness
D. supply chain agility

Question 9
Direct material plus direct labor plus overhead costs is:
A. supply chain management cost
B. cost of goods sold
C. supply chain planning cost
D. inventory carrying cost
Question 10
All other things being equal, which of the following would positively impact the
cash-to-cash cycle metric:
A. reduced inventory
B. increased accounts receivable
C. increased inventory
D. increased manufacturing lead-time
Question 11
All other things being equal, which of the following would positively impact the
cash-to-cash cycle metric:
A. increased manufacturing lead-time
B. increased inventory
C. increased accounts payable
D. reduced accounts receivable
Question 12
Products with short life cycles and high forecast error are best sourced
with:
A. an efficient supply chain
B. a mature supply chain
C. a responsive supply chain
D. a short supply chain

Section F: Technology
Question 1
A centralized repository of metadata is a:
A. data dictionary
B. database
C. schema
D. data cube
Question 2
A company's IT infrastructure enables supply chain operations by all of the
following EXCEPT:
A. reliably and efficiently sharing actionable data amongst all relevant
supply chain stakeholders
B. reducing the lead-time and cost of information
C. controlling access to sensitive or proprietary information
D. lowering global inventory levels
Question 3
A computer network that spans geographic boarders and often utilizes
leased lines is called a:
A. LAN
B. VPN
C. WAN
D. Wireless LAN
Question 4
A denial of service attack is LEAST likely to impact a:
A. thin client
B. fat client
C. server
D. mainframe

Question 5
A directory or advertising service for web services is:
A. UDDI
B. SOAP
C. WSDL
D. ebXML
Question 6
A flow chart or process map is a:
A. mathematical model
B. simulation model
C. conceptual model
D. decision support system
Question 7
A hosting service that transports secure, structured data between
business partners is
A. VAN
B. EDI
C. EDT
D. LAN
Question 8
A language designed to control the presentation of web pages on mobile
devices is:
A. XML
B. ebXML
C. WML
D. ANSI X12

Question 9
A negative impact to sellers of B2B market places is:
A. shorter product life cycles
B. increased overhead
C. reduced volumes
D. reduced margins
Question 10
A private exchange is be part of which e-business layer?
A. business layer
B. foundation layer
C. application layer
D. aggregation layer
Question 11
A protocol for accessing a web service is:
A. UDDI
B. SOAP
C. WSDL
D. XML
Question 12
A repository of a companys electronic data is a:
A. data mart
B. object-oriented database
C. ERP systems
D. data warehouse

Question 13
A secured connection from an intranet into an unsecured network is a:
A. VPN
B. consumer portal
C business portal
D. EDT
Question 14
A semi passive RFID tag utilizes energy from the interrogators signal for
communications and uses a small power source to:
A. increase life span
B. record environmental information
C. communicate with active RFID tags
D. increase transmission distance
Question 15
A simplified representation of a process or a system that incorporates the
most important variables is:
A. a tool
B. a model
C. a simulation
D. a concept
Question 16
A software system that incorporates procedures for the efficient operation of a
warehouse is:
A. WCS
B. RFID
C. WMS
D. EDI

Question 17
A subset database that is typically designed to meet a specific user
community's needs versus being designed to optimally store an
organizations data is a:
A. data warehouse
B. object-oriented database
C. relational database
D. data mart
Question 18
A successful WMS implementation combined with the appropriate AIDC and
communication devices should increase productivity by:
A. 10 to 20%
B. 0 to 10%
C. 30 to 40%
D. 20 to 30%
Question 19
A supply chain is considered optimized when:
A. inventory is minimized
B. customer service is maximized
C. cash flow is maximized
D. overall benefits are maximized
Question 20
A supply chain optimization model is MOST likely included in:
A. SCM
B. APS
C. IMS
D. TMS

Question 21
A text file containing comma delimited data is:
A. XML
B. a flat file
C. EDI
D. WML
Question 22
A third party that handles EDI transmissions is:
A. a value-add network
B. an internet service provider
C. a leased line provider
D. private exchange
Question 23
A transactional ERP system is an:
A. exploitative system
B. automation system
C. optimization system
D. exploratory system
Question 24
A virtual company requires all of the following EXCEPT:
A. trust
B. shared competitive vision
C. strategic alliance
D. real-time data

Question 25
Adjusting an ERP system's parameters is:
A. customization
B. implementation
C. configuration
D. roll-out
Question 26
Advanced optimization tools typically provide the most benefit by:
A. managing dedicated capacity
B. performing scenario analysis
C. enabling inventory and labor to be replaced by information
D. providing conceptual models
Question 27
AIDC devices do all of the following EXCEPT:
A. reduce implementation costs
B. reduce errors
C. increase productivity
D. reduce shrinkage
Question 28
All of the following are AIDC devices EXCEPT:
A. bar codes
B. RFID
C. magnetic stripes
D. check by

Question 29
All of the following are benefits of automated data collection EXCEPT:
A. reduced lead-time on information
B. reduced inventory
C increased reliability
D. reduced errors
Question 30
All of the following are benefits of TMS EXCEPT:
A. reduced dwell time
B. reduced idle manufacturing capacity
C. reduced freight costs
D. reduced document errors
Question 31
All of the following are benefits to sellers of B2B market places EXCEPT:
A. increased market access
B. reduced transaction costs
C. volume leveraging
D. increased differentiation
Question 32
All of the following are common characteristics of local area networks
(LAN) EXCEPT:
A. radio waves
B. high data transfer rates
C. small geographic area
D. lack of leased lines

Question 33
All of the following are common reasons for implementing an ERP
upgrade EXCEPT:
A. staying current
B. improved open architecture that eases system integration
C. critical new functionality
D. more user friendly leading to increased acceptance
Question 34
All of the following are considered competitive advantages of ERP
systems EXCEPT:
A. increased, efficient communication of all supply chain stakeholders
B. security
C. reduced lead-time on information
D. automation
Question 35
All of the following are disadvantages of EDI EXCEPT:
A. batch processing
B. custom software
C. difficulty transmitting complex data
D. error handling
Question 36
All of the following are examples of dynamic supply chain data EXCEPT:
A. SKU numbers
B. inventory
C. forecast
D. safety stock levels

Question 37
All of the following are financial benefits of e-business EXCEPT:
A. reduced cash-to-cash cycle
B. reduced transportation costs
C. increased customer lifetime profitability
D. dynamic pricing to balance supply and demand
Question 38
All of the following are included in the EPC code transmitted by an RFID tag
EXCEPT:
A. manufacturer
B. customer
C. SKU
D. serial number
Question 39
All of the following are key characteristics of enterprise resource planning
(ERP) systems EXCEPT:
A. modularized business applications
B. common data source
C. seamless integration enabling the flow of information throughout the
firm
D. normalized application structure
Question 40
All of the following are key to maximizing the ROI of an ERP system
EXCEPT:
A. hiring skilled employees and providing adequate training
B. system monitoring and constraint improvement
C. early global launch
D. business process mapping

Question 41
All of the following are part of the e-business application layer EXCEPT:
A. billing applications
B. search engines
C. shopping carts
D. portals
Question 42
All of the following are parts of the e-business aggregation layer EXCEPT:
A. portals
B. service providers
C. brokers
D. exchanges
Question 43
All of the following are steps associated with data acquisition EXCEPT:
A. defining hardware
B. providing access to data
C. ensuring data accuracy
D. data collection
Question 44
All of the following SCM systems exist at the operation level EXCEPT:
A. IMS
B. WMS
C. DSS
D. LMS

Question 45
An advantage of an active RFID tag is:
A. increased transmission distance
B. reduced cost
C. increased size
D. reduced size
Question 46
An example of an operational execution system is:
A. receiving system
B. network design system
C. inventory planning system
D. customer relationship management system
Question 47
An example of an operational planning IT system is:
A. DSS
B. production scheduling
C. transportation planning system
D. supplier relationship management system
Question 48
An Excel pivot table is MOST applicable for displaying the output of:
A. search results
B. a simulation model
C. an OLAP query
D. an SQL query

Question 49
An inexpensive computer terminal is an example of:
A. a thin client
B. a fat client
C. server
D. mobile device
Question 50
An RFID tag that requires a power source and broadcasts information is:
A. an active tag
B. a semi passive tag
C. a passive tag
D. a semi-active tag
Question 51
An XML document describing a web services and explaining how to
access it is:
A. SOAP
B. ebXML
C. WSDL
D. UDDI
Question 52
Automated event notification based on business rules and triggers is part
of:
A. SCV
B. ERP
C. SCEM
D. VMI

Question 53
B2C is:
A. business-to-consumer e-commerce
B. content management e-commerce
C. buy-side e-commerce
D. business-to-business e-commerce
Question 54
BPM is a key step when implementing:
A. data-oriented middleware
B. process-oriented middleware
C. customized solutions
D. configurable solutions
Question 55
Business portals when initially extended to suppliers are most likely:
A. open
B. read only
C. read/write
D. web-based
Question 56
Business-to-business membership-based exchanges were developed to
mitigate the risk of:
A. credit
B. market changes
C. quality issues
D. unknown suppliers

Question 57
Buying or selling products and services over the internet is:
A. online trading
B. e-commerce
C. web exchange
D. web-based ERP
Question 58
Classical mathematical modeling is being replaced by the following to
solve complex transportation problems:
A. linear programming
B. nonlinear programming
C. artificial intelligence
D. mixed integer programming
Question 59
Compensation is part of which of the following ERP modules:
A. human resources
B. finance
C. assets
D. customer management
Question 60
Core ERP processes typically focus on all of the following areas EXCEPT:
A. finance
B. manufacturing
C. distribution
D. customer relationship management

Question 61
Data aggregation supports the analysis of large volumes of data by:
A. ignoring data outliers
B. limiting the scope of data included
C. grouping information in high level categories
D. reducing variability
Question 62
Data warehouse updates are typically:
A. real-time
B. batch processed
C. weekly
D. nightly
Question 63
Documenting and communicating lessons learned from an IT project is a key
step of
A. post-implementation review
B. post-mortem review
C. knowledge sharing process
D. pilot project
Question 64
Each host in the following architecture can act as both a client and a
server:
A. client / server
B. peer-to-peer
C. mobile
D. hosted

Question 65
EDI stands for:
A. Electronic Data Interface
B. Electronic Data Interaction
C. Electronic Data Intercommunication
D. Electronic Data Interchange
Question 66
Electricity, telephones and the internet are consider what type of
technology?
A. innovative
B. advancing
C. cutting edge
D. disruptive
Question 67
Fast-paced, high volume operations are potential environments for:
A. bar coders
B. manual operations
C. batch data processing
D. RFID
Question 68
Flow process charts was one of the early tools used in what is today
known as:
A. flow charting
B. SCOR
C. operation reengineering
D. business process mapping

Question 69
Forecast error reductions, decreased inventory levels and increased order fill
rates resulting from successful IT projects are considered:
A. intangible benefits
B. KPI benefits
C. tangible benefits
D. metric benefits
Question 70
GRI stands for:
A. Global Reporting Initiative
B. Global Reaction Initiative
C. Global Response Initiative
D. Global Reaching Initiative
Question 71
In a client / server system, the client is typically designed to handle:
A. content sharing
B. low data demand tasks
C. resource sharing
D. peer-to-peer networking
Question 72
In the business-to-business world, which of the following is critical to
understanding and communicating a customers unique requirements?
A. sales representatives
B. efficient communication channels
C. fast feedback gathering system
D. trained customer service representatives

Question 73
Information systems can best help resolve lead time vs. transportation
costs by:
A. better planning of delivery routes to reduce transportation costs
B. better scheduling of production which can lead to goods being
transported as they are manufactured
C. better deployment of transport vehicles to maximize the loading
capacities of each vehicle
D. better anticipation of demand which can lead to better planning
which increases a manufacturers ability to ship full truckloads
Question 74
Interrogators are used to:
A. poll customers
B. automatically read RFID tags
C. boost data transmission signals
D. check warehouse system status
Question 75
IT provides all of the following roles in supply chain management
EXCEPT:
A. storing and analyzing supply chain data
B. enabling strategic, tactical and operational activities
C. product development
D. managing data flow throughout the supply chain
Question 76
Metadata used to automate a web site's presentation is MOST important
for:
A. buy-side e-commerce
B. content management e-commerce
C. sell-side e-commerce
D. B2B e-commerce

Question 77
Most retail stores operate independently from the corporation's ERP
system, but do share:
A. inventory levels
B. labor utilization
C. customer service levels
D. POS data
Question 78
Object-oriented database are MOST likely to be used for:
A. storing pictures and videos
B. enterprise data warehouses
C. ERP systems
D. business intelligence tools
Question 79
Operational information technology tools tend to be separated into the
following levels:
A. planning and execution
B. scheduling and execution
C. design and implementation
D. design and decision
Question 80
Passive or automatic data capture does all of the following EXCEPT:
A. increases capacity utilization
B. increase productivity
C. improve data accuracy
D. reduce information lead-time

Question 81
Product mix is determined by which retail SCM system?
A. merchandise planning
B. location planning
C. SCP
D. assortment planning
Question 82
Reprogramming an ERP system to include functionality specific to your
business is:
A. configuration
B. customization
C. implementation
D. roll-out
Question 83
Risk pooling is a concept included in which of the following systems?
A. IMS
B. WMS
C. TMS
D. EDI
Question 84
Sharing data with external customers and suppliers tends to lead to:
A. increased profits
B. reduced inventory levels
C. optimal network decisions
D. minimal forecast error

Question 85
Software containing services that enable otherwise incompatible
applications to communicate is:
A. middleware
B. ERP
C. web services
D. business portals
Question 86
Sourcing and procurement systems attempt to do all of the following
EXCEPT:
A. leverage purchasing power across the entire supply chain
B. assist managers in differentiating suppliers
C. analyze global taxation
D. segment customers
Question 87
Structured Query Language (SQL) is a:
A. data manipulation language
B. compiled language
C. html language
D. web service language
Question 88
Supply chain event management systems are MOST beneficial for:
A. regional supply chains
B. large, complex supply chains
C. high volume, local supply chains
D. vertically integrated supply chains

Question 89
Supply chain planning systems (SCP) are designed to:
A. optimize supply chain operations
B. assist managers in making better, data driven decisions
C. reduce inventory levels
D. minimize transaction costs
Question 90
Tactical IT tools are LEAST likely to be designed for:
A. demand forecasting
B. supply chain event management
C. advanced planning and optimization
D. shop floor management
Question 91
The business justification for a new supply chain IT project should include ROI
analysis which for an IT project is:
A. benefits divided by costs
B. costs divided by benefits
C. net benefits
D. cash flows divided by costs
Question 92
The computer language commonly associated with relational databases and
designed for data management is:
A. object-oriented
B. structured query language
C. JAVA
D. PERL

Question 93
The database design strategy of grouping data together by common
categories and creating table links is:
A. normalization
B. standardization
C. simplification
D. redundancy
Question 94
The ERP software design shift from proprietary, closed applications to
web-based modules:
A. increased user training requirements
B. increased costs
C. eased system implementation
D. eased system integration with legacy and 3rd party systems
Question 95
The following is utilized to provide a secure extension of private network into
an unsecured network:
A. LAN
B. WAN
C. value-added network
D. VPN
Question 96
The global network of TCP/IP networks is the:
A. WAN
B. intranet
C. internet
D. extranet

Question 97
The importance of a robust business process designed to manage data
changes with an ERP system increases when:
A. global KPI's are implemented to managed the firm
B. centralized management increases
C. data visibility increases
D. complexity and integration increases
Question 98
The key difference between supply chain planning (SCP) and advance
planning and optimization (APO) is:
A. a simulation engine
B. APO systems make decisions
C. SCP systems
D. inventory modeling
Question 99
The least significant benefit of increasing supply chain data visibility is:
A. tracking the physical location of materials and services
B. one version of the supply chain plan
C. active alerts transmitted in real-time to relevant stakeholders
D. reduced forecast error
Question 100
The LEAST significant consideration prior to launching an e-business
initiative is:
A. competitors' capabilities
B. internet reliability
C. economic environment
D. supply chain development state

Question 101
The LEAST significant contributor to supply chain data errors is:
A. data entry
B. data manipulation
C. bar coders
D. legacy system integration
Question 102
The least sophisticated inventory system is a:
A. perpetual inventory system
B. cycle counting inventory system
C. continuous inventory system
D. periodic inventory system
Question 103
The main goal of service-oriented architecture (SOA) is:
A. normalization
B. loose coupling
C. standardization
D. decoupling
Question 104
The MOST common types of data updates to physical data warehouses
are:
A. daily and weekly
B. real-time and nightly
C. manual and automated
D. real-time and batch

Question 105
The MOST significant benefit of data aggregation is:
A. reduced variability
B. increased visibility
C. reduced storage requirements
D. data transmission speed
Question 106
The MOST significant benefit of extending transactional ERP information to
suppliers is:
A. strategic planning
B. task automation
C. enterprise scheduling
D. reduced forecast error
Question 107
The MOST significant characteristic of leadership in determining the value
realized by an ERP system is:
A. competence
B. vision
C. intelligence
D. analytical strength
Question 108
The MOST significant cost associated with RFID is:
A. passive RFID tags
B. employee training
C. infrastructure changes
D. active RFID tags

Question 109
The MOST significant reason for the initial widespread failures of e-
businesses was:
A. immature technology infrastructure
B. poor business plan or strategy
C. economic environment
D. over investment
Question 110
The objective function of an APO system is MOST likely to be defined as:
A. minimize total cost while achieving a defined customer service level
B. maximize revenue
C. maximize inventory
D. minimize transportation cost
Question 111
The output of the IMS is a key input for which of the following execution
systems?
A. WMS
B. TMS
C. VMI
D. EDI
Question 112
The primary goal of business intelligence tools is:
A. improved decision making
B. suggesting answers to difficult business issues
C. supply chain optimization
D. increased data visibility

Question 113
The processes setup to capture and transmit data need to be all of the
following EXCEPT:
A. global
B. cost-effective
C. frequent enough to be useful
D. validated
Question 114
The technology used to store all information typically printed and
physically attached to a product is:
A. bar coding
B. WMS
C. EDI
D. Auto ID
Question 115
The three largest companies providing ERP software are all of the
following EXCEPT:
A. SAP
B. Oracle
C. Microsoft
D. Sybase
Question 116
Transportation management systems do all of the following EXCEPT:
A. optimize shipping routes
B. increase the efficiency of the transportation network
C. direct picking
D. carrier collaboration

Question 117
Virtual supply chains strengthen relationships, improve performance and
increase trust amongst stakeholders by:
A. sharing real-time information
B. maintaining separate objectives
C. separating operations and protecting intellectual property
D. implementing aggressive cost cutting initiatives
Question 118
Warehouse management systems (WMS):
A. calculate optimal safety stock levels
B. optimize the material flow at storage locations
C. optimize the transportation network
D. maximize trucking capacity
Question 119
Web and database access systems are MOST likely to use the following
architecture:
A. client / server architecture
B. object oriented
C. local
D. wireless
Question 120
What information is LEAST likely to be included in strategic IT tools?
A. noncustomer demographics
B. economic trends
C. year end inventory levels
D. technological advancements and anticipated changes

Question 121
What is MOST likely to increase if an off-the-shelf ERP system lacks at
least 80% of your required functionality?
A. training costs
B. consulting costs
C. license costs
D. hardware costs
Question 122
What is the reason that MRP software was one of the first developed for
A. MRP often requires heavy calculation
B. There is a lot of uncertainty in the MRP process
C. MRP is a very complicated concept
D. MRP is the fundamental process that drives other plans
Question 123
What portal type is designed to leverage procurement economies of scale
across industries?
A. horizontal
B. web
C. flat
D. vertical
Question 124
What set of methods would MOST likely be utilized to integrate a legacy
business system with a SAP transactional ERP system?
A. EDI
B. EAI
C. EDT
D. EFT

Question 125
What system is focused on increasing product data visibility?
A. TMS
B. WMS
C. PCDM
D. IMS
Question 126
What type of supply chain IT system MOST likely has the broadest user
base?
A. strategic
B. operational
C. tactical
D. execution
Question 127
When expanding supply chain data visibility, the LEAST important
characteristic of the data is:
A. accuracy
B. timeliness
C. increased visibility
D. comprehensiveness
Question 128
When selecting an ERP system, it is important to ensure the business
model implicit in the system is:
A. based on the industry standard
B. robust
C. aligned with your business model
D. scalable

Question 129
Which level of management typically utilize strategic IT tools:
A. middle
B. executive
C. operational
D. tactical
Question 130
Which of the following contains all product information and is attached to the
side of the product?
A. bar code
B. stock card
C. product description
D. item data
Question 131
Which of the following is LEAST likely to be a goal of an e-business
strategy:
A. collaboration
B. customer integration
C. supplier integration
D. transition to a push model
Question 132
Which of the following is LEAST likely to be considered a tactical IT tool?
A. transportation planning system
B. ERP planning module
C. procurement software
D. customer segmentation software

Question 133
Which of the following is MOST likely to reduce following an e-business
launch:
A. number of customers
B. order size
C. returns
D. supply network complexity
Question 134
Which of the following is the application hosting software responsible for
hardware interfacing and resource management?
A. middleware
B. web service
C. relational database
D. operating system
Question 135
Which of the following is the LEAST significant issue with legacy ERP
systems?
A. inflexibility
B. manual processes
C. functionality gaps
D. user training
Question 136
Which of the following MOST likely increases with an e-business initiative:
A. inventory turns
B. customer service
C. product returns
D. order size

Question 137
Which of the following supply chains is LEAST likely to benefit from RFID?
A. high volume, global supply chain
B. low volume, local supply chain
C. low volume, global supply chain
D. high volume, local supply chain
Question 138
Which of the following, if properly thought-out and included in the overall IT
strategy, has the MOST significant impact of the types of supply chain
planning and execution systems that can be implemented?
A. operating system
B. database structure
C. application suite
D. hardware
Question 139
Which SCM system often includes a portal to online market places?
A. manufacturing
B. sourcing and procurement
C. advance planning and scheduling
D. inventory management

Section G: Influencing and Prioritizing Demand
Question 1
A contact channel strategy needs to be evaluated to ensure:
A. that it is fulfilling the needs of both the customer and the business
B. that it is meeting specific targets of customer satisfaction and
product sales
C. that it is flexible enough to change based on market needs
D. that it is achieving both identified and unidentified goals
Question 2
A product designed with universality strategy may have all of the following
drawbacks EXCEPT:
A. less customer loyalty
B. shorter product life cycle
C. less suited to a market than a specialized product
D. lengthened product life cycle
Question 3
All of the following are varieties of design collaboration EXCEPT:
A. Design for Engineering
B. Design for Manufacture
C. Design for Logistics
D. Design for Environment
Question 4
An agreed benefit of design for reverse logistics / environment is:
A. customer loyalty
B. longer product life cycles
C. lower tax liability
D. higher product demand

Question 5
Completeness of an effective contact channel strategy in CRM refers to:
A. the business offering a product with all the options
B. the customer receiving a product that answers most needs
C. the customer getting accurate and current answers
D. the business presenting the customer with multiple variants
Question 6
Control and consistency is determined by the ability of a contact channel
strategy to:
A. communicate to the customer the corporations values
B. deliver on promises made
C. manage unforeseen events with the same performance
D. provide the same treatment to all customers
Question 7
From the customers point of view, a secure and error free contact channel
strategy will have all of the following characteristics EXCEPT:
A. all electronic transactions are encrypted
B. all orders are accurately taken
C. all products arrive as specified and as requested
D. all channels are accessible
Question 8
Pricing based on competition, perceived value and brand identity is:
A. a sales decision
B. a reactive decision
C. a strategic decision
D. a marketing decision

Question 9
Promotion includes all of the following activities EXCEPT:
A. creation of brand image
B. segmentation of audience
C. market analysis
D. competitor check
Question 10
Speed as a characteristic of an effective contact channel strategy is
measured by:
A. the rate at which a business delivers the product
B. the pace of product innovations
C. the time to respond to customer inquiries
D. the promptness of any reaction to product demands
Question 11
The characteristic of an effective contact channel strategy that means it is
easily contacted by customers is:
A. approachable
B. accessible
C. reachable
D. available
Question 12
The involvement of manufacturing engineers in the design process allows for
the:
A. elimination of unnecessary production steps
B. planning of production schedules
C. amending of unrealistic assumptions
D. creation of products options

Question 13
The planning and design of new products that can use existing parts and can
be easily upgraded in the future is called:
A. component commonality
B. integral design
C. modular design
D. interchangeability design
Question 14
What is one benefit of a design for manufacture (DFM) approach?
A. manufacturing experts can identify unrealistic production
assumptions early in the process
B. the final product is typically more innovative
C. lower production costs are achieved
D. suppliers can submit their quotations early in the process
Question 15
Which is a common tradeoff when using a component commonality
strategy?
A. copying of design becomes easier
B. reduction in quality
C. increase in cost of manufacture of the common part
D. reduction in machine utilization
Question 16
Which of the following statements best describes a contact channel
strategy that is considered flexible?
A. Customers are accommodated despite unreasonable expectations.
B. Customers are assisted despite being deemed low level.
C. Customers can be assured of prompt service even beyond
limitations such as office hours.
D. Customers can reach the business despite any disadvantages or
barriers such as language or technology.

Question 17
Which type of supply chain design is defined by early supplier
involvement?
A. concurrent engineering
B. over-the-wall design
C. design to scale
D. make to order

Question 1
A customer data warehouse (CDW) contains information about:
A. an organization's customers, products and markets
B. various product price points
C. customer account balances
D. competition's promotions and pricing
Question 2
A firm that has a customer first marketing philosophy practices:
A. CRM
B. TPM
C. SRM
D. CTM
Question 3
A specific implication of value-added products for a CRM program is:
A. product design should be innovative or at least par with competition
B. promotion and distribution must be customized
C. marketing of the product will be targeted towards customers with the
biggest potential value
D. sales methods will be measured against competition
Question 4
Account management as a CRM technology tool is tasked to handle all of the
following EXCEPT:
A. customer inquiries
B. problem solving
C. channel partner management
D. help line

Question 5
All of the following are stated filters/factors that influence the shape of a
CRM program EXCEPT:
A. targeted customer needs
B. preferred channels of communication
C. historical contribution of the customers
D. position in the product life cycle
Question 6
CRM activity to win back customers who have discontinued service should be
implemented during which time frame?
A. within the first 7 days
B. within the first 15 days
C. within the first month
D. within the first 45 days
Question 7
CRM stresses that the firm should:
A. achieve mutual profitability
B. integrate customer friendly practices
C. put the customer first
D. retool business processes towards customer satisfaction
Question 8
Customer care activities that are launched during the maturity stage of the
product life cycle should focus on:
A. brand image
B. customer feedback gathering
C. attracting new customers
D. enticing competitor customer switching

Question 9
Each of the following are benefits of implementing a customer data
warehouse (CDW), EXCEPT:
A. strategic marketing
B. channel management
C. one-to-one marketing
D. increased customer base
Question 10
How does CRM benefit the promotion efforts of an organization?
A. customization of the offer is possible
B. multiple offers can be delivered quickly
C. profit is increased
D. promotions are delivered faster
Question 11
In CRM, the service channel technology supports:
A. delivery of products to customers
B. quicker response to customer problems
C. determination of the impact of customer service programs
D. activities that measure effectiveness of promotions
Question 12
On the decline stage of the product life cycle, customer care will now have to
promote:
A. newer products in the pipeline
B. lifetime customer development
C. replacement parts availability
D. brand loyalty to prolong profitability

Question 13
One difference of CRM segmentation versus historical segmentation is:
A. segments are defined based on actual buying behaviors
B. segments are based on preconceptions of certain groups
C. segments based on research on small representative groups
D. segments based on age groups and buying power
Question 14
The Chief Customer Officer of some firms is responsible for:
A. being the voice of customers at the regular CRM development
meeting
B. becoming the initial touch point between the business and
customers
C. identifying key customers and helping them become life long
customers
D. integrating and leveraging customer information across the
organization
Question 15
The focus of CRM during the introduction stage of the product life cycle is
on:
A. the customer feedback program
B. the product distribution program
C. the promotional program
D. the customer awareness program

Question 16
The growth stage of the product life cycle is characterized by rapid
revenue growth. At this time it is best for a CRM focused business to:
A. analyze what the competition has done or will do in reaction to the
success to minimize the risk of future surprises
B. increase distribution of the product to maximize revenue
C. minimize promotional costs and let word-of-mouth take over the role
of promotion
D. commit increased resources to both satisfying the markets needs
and gathering / analyzing data in an ongoing manner
Question 17
The opposite of loyal customers are:
A. prospective customers
B. potential customers
C. win-back customers
D. untapped customers
Question 18
The significant difference between EMA and traditional marketing
campaign processes
A. the use of computers
B. the use of software applications C
the use of the Internet
D. the use of IVR programs
Question 19
To win back a customer, communications have to be made as soon as
possible, ideally:
A. within 1 week
B. within 1 month
C. within 6 months
D. within 12 months

Question 20
What is the first stage in the product life cycle?
A. introduction
B. development
C. maturity
D. growth
Question 21
When developing a CRM strategy for reaching customers via
technological channels, businesses must:
A. first check the exact technological requirements needed
B. carefully test how receptive their own customers are to this contact
point
C. analyze the best technological channel available to them
D. ask their customers to first participate in test runs
Question 22
Which is not a specific loyalty program design consideration?
A. customer behavior
B. customer preference
C. positioning
D. communication
Question 23
Which is not a typical CRM data integration point?
A. online sales
B. call center
C. order provisioning system
D. online forums

Question 24
Which of the following best describes vulnerable customers?
A. customers that are hard to satisfy
B. customers about to stop purchasing
C. customers that have reduced ability to pay
D. customers that are difficult to reach
Question 25
Which of the following is a way CRM technology is used in a typical
organization?
A. distribution resource planning
B. sales and marketing
C. supplier management
D. operations planning
Question 26
Which of the following is true about pricing in a CRM environment?
A. price is another way to differentiate products
B. price and product are essentially disconnected
C. price is base on manufacturing cost plus an acceptable margin
D. price does not have to deliver profit

Section I: Supplier Relationship Management (SRM)
Question 1
A key benefit of an ITX is:
A. reduced supplier risk
B. reduced cost compared to other exchanges
C. increased product differentiation
D. collaboration
Question 2
A proactive reason for SRM is that organizations learn from each other.
This is best described as:
A. building organizational skills
B. strengthening operations
C. increasing organizational expertise
D. developing common training
Question 3
A short term alliance between independent organizations in a potentially
long term relationship is a:
A. virtual organization
B. strategic partnership
C. tactical joint venture
D. deliberate enterprise
Question 4
A successful business alliance that involves an alliance partner that is also a
competitors in a different field requires:
A. multifaceted relationship management
B. closed business systems
C. controlled communication
D. legal agreements

Question 5
All of the following activities are typically part of the full implementation
stage of developing a supplier alliance EXCEPT:
A. supplier identification
B. problem solving meetings
C. alliance pulse checks
D. regular business processes
Question 6
All of the following are core electronic business system functions EXCEPT:
A. procurement history
B. accounting
C. performance measurement
D. product search
Question 7
All of the following SRM functions can be outsourced EXCEPT:
A. customer service accountability
B. sourcing
C. contract deployment
D. compliance management
Question 8
An auction characterized by dynamic pricing based on buyer and seller
offers is a:
A. Dutch auction
B. forward auction
C. reverse auction
D. stock-market style auction

Question 9
An auction with multiple buyers and one seller for one item is a:
A. reverse auction
B. Dutch auction
C. forward auction
D. demand management auction
Question 10
An early step in building a success alliance that promotes mutual
profitability is:
A. establishing ground rules
B. appointing a dedicated alliance manager
C. negotiating a win/win deal
D. initiating collaboration
Question 11
An exchange that connects buyers and sellers within an industry is a:
A. horizontal trade exchange
B. hybrid trade exchange
C. independent trade exchange
D. vertical trade exchange
Question 12
Based on the APICS definition of SRM, a firm will implement this
philosophy with:
A. all tier 1 type suppliers
B. a selected group of suppliers
C. all suppliers
D. a few suppliers who are deemed indispensable

Question 13
Commodities are MOST likely to be traded in a:
A. horizontal trade exchange
B. vertical trade exchange
C. private trade exchange
D. hybrid trade exchange
Question 14
Each of the following is an example of a strategic alliance, EXCEPT:
A. supplier-managed inventory
B. distributor integration
C. 3PLs
D. trade organization
Question 15
If a sourcing relationship has the potential to jeopardize attaining business
objectives, it is best for the purchasing company to:
A. find alternative suppliers
B. decrease the dependency on that particular supplier
C. develop a closer relationship with that supplier
D. increase the stock ordered to counteract uncertainty
Question 16
Intense collaboration and trust should be reserved for:
A. all partners in the supply chain
B. only a select few suppliers
C. highest volume partners
D. highest value add partners

Question 17
Private trade exchanges are often created by:
A. a consortium of small, similar businesses
B. market-dominant companies
C. an independent service provider
D. trade organizations
Question 18
SRM allows for increased visibility in the supply chain. This additional
information is least likely used for:
A. contingency planning
B. lessening bullwhip effect
C. negotiating pricing
D. faster response to problems
Question 19
Strategic alliances between organizations can most help improve
operations by:
A. eliminating redundant job positions
B. increasing cross-training of personnel
C. lowering system costs
D. increasing the shared information
Question 20
Strategic growth is available through alliances for:
A. companies looking for new opportunities
B. small companies that are facing closure
C. medium companies facing market stagnation
D. large companies focusing on having the dominant position

Question 21
Technology has played all of the following roles in SRM, EXCEPT:
A. Systems can show current status of operations
B. Suppliers can communicated with customers in real time
C. Transactional processes can be automated
D. Security enhancements now effectively segregate enterprise
business processes
Question 22
The goal of SRM is:
A. the evolution of the entire supply chain
B. achieving more with a fewer number of suppliers
C. to focus less efficient suppliers towards business goals
D. mutual profitability and meeting marketplace needs
Question 23
The least common reason for the need to commitment to change in a
supplier relationship is:
A. shorter product life
B. high cost of inventory
C. large profit margins
D. fast changing environment
Question 24
The role of promoting relationships between partners and building joint
initiatives belongs to the:
A. relationship manager
B. alliance manager
C. partnership manager
D. liaison manager

Question 25
Traditional purchasing focuses on purchase price. Strategic sourcing
focuses on:
A. landed cost
B. purchase price and delivery cost
C. true cost
D. total cost
Question 26
What is the first step in certifying a supplier?
A. select suppliers
B. evaluate alternative suppliers
C. define requirements, process and roles
D. conduct measurements
Question 27
What is the first step to successful alliances?
A. select proper partners
B. establish ground rules
C. align internally
D. appoint a dedicated alliance manager
Question 28
When building successful alliances, after business processes are
established to routinely determine the health and performance of the
alliance, it is important for the alliance to:
A. prepare of change so the alliance can make the necessary
adaptations in the
B. determine additional participants that need to be included in the
alliance
C. plan for changes in the supplier environment
D. prepare for shorter product life cycles

Question 29
When establishing successful supplier relationships, typically it is valuable to
perform what prior to a full implementation?
A. supplier qualification assessment
B. risk assessment
C. alliance pulse check
D. pilot program
Question 30
When selection proper partners, which is not a specific characteristic that
should be evaluated?
A. operating style
B. business practices
C. historical performance
D. corporate culture
Question 31
Which is most true about strategic alliances?
A. Alliances that dominate the marketplace will intensify competition.
B. Company core competencies evolve through alliances.
C. Alliances can decrease economic effect of competition.
D. Companies with certain types of supply situations may be better off
forgoing alliances.
Question 32
Which is not a clear benefit of SRM technologies?
A. reduced number of sub par materials supplied
B. reduced cycle time on sourcing products
C. ease of standardizing purchasing decisions
D. ease of selecting suppliers

Question 33
Which is not a specific source of data for supplier rating systems?
A. conformation rates
B. time line performance
C. amount of conditionally accepted materials
D. number of quality investigations
Question 34
Which is not part of the suite of SRM services?
A. supplier search
B. accounting
C. financing/billing
D. strategic sourcing
Question 35
Which of the following steps in building a successful alliance entails
developing the business processes for how the participants will work
together?
A. establish ground rules
B. encourage collaboration
C. align internally
D. conduct pulse checks
Question 36
Workflow management in the context of internet-enabled SRM toolsets falls
under:
A. SRM processing
B. SRM services
C. SRM technology and external interfaces
D. EBS backbone

Section J: Inventory Planning and Control
Question 1
An inventory item designated as class B will typically make up what
percent of total inventory?
A. 0.2
B. 0.25
C. 0.3
D. 0.35
Question 2
Periodic counting, done typically once a year, is also called:
A. warehouse inventory
B. annual inventory
C. physical counting
D. physical inventory
Question 3
The analysis used to determine the cost optimal quantity to order is called:
A. Lot size
B. Fixed order quantity
C. Economic Order Quantity
D. Minimum order
Question 4
The fixed order quantity strategy is applicable to which situation?
A. large, multiple customer demand
B. the need to fill shipping containers to attain discounts
C. stable, predictable customer demand
D. required levels of stock to avoid penalties

Question 5
The replenishment strategy where a firm allows inventory to drop to a
specified minimum quantity before replenishing is called:
A. production lumping
B. order batching
C. max-min strategy
D. economies of scale advantage
Question 6
Class C inventory items tend to be characterized by:
A. the largest number of items and the lowest aggregated inventory
value
B. the lowest number of items and the lowest aggregate inventory
value
C. the highest aggregate inventory value and the largest number of
items
D. the highest aggregate inventory value and the lowest number of
items
Question 7
Finished good demand from an end customer is considered:
A. dependent demand
B. firm demand
C. fixed orders
D. independent demand
Question 8
The intersection of the inventory carrying cost curve and the order cost
curve is:
A. the minimum order quantity
B. the maximum order quantity
C. the economic order quantity
D. the recommended order quantity

Question 9
All other things being equal, an increase in order frequency
A. increases inventory carrying cost
B. lowers the order cost
C. increases order cost
D. increases total supply chain inventory
Question 10
All other things being equal, lowering the order quantity and increasing the
order frequency:
A. increases inventory carrying cost
B. lowers inventory carrying cost
C. increases total inventory value
D. increases total inventory units
Question 11
All other things being equal, in a Periodic Review System for
replenishment ordering, a decrease in the replenishment lead-time will
result in:
A. increased replenishment quantity
B. increased demand variability
C. reduced replenishment quantity
D. increased supply variability
Question 12
In a Min-Max system for replenishment ordering, if the minimum level is 100
units, the current inventory is 50 units and the maximum level is 500 units,
what is the replenishment order quantity?
A. 650 units
B. 400 units
C. 325 units
D. 450 units

Question 13
Assuming a coverage safety stock strategy is implemented with a target of 75
days and forecast demand of 100 units, 400 units and 30 units over the next
three 30 day periods, what is the target unit inventory level?
A. 515 units
B. 442 units
C. 250 units
D. 625 units
Question 14
If manufacturing success rates decrease yet forecast error and
replenishment lead time remain unchanged,
A. total inventory decreases and customer service levels are
unchanged
B. total inventory increases yet customer service levels increase
C. total inventory increases in order to maintain customer service levels
D. total inventory is unchanged and customer service levels increase
Question 15
As raw materials are converted into intermediates and finished goods
inventory value typically:
A. increases
B. decreases
C. remains unchanged
D. decreases significantly

Module 3: Implementation and Operations
Section A: Supply Chain Dynamics
Question 1
A longer lead time will lead to:
A. a greater magnification of the bullwhip effect
B. a greater chance to complete the order
C. a greater effect on the safety stock
D. a greater possibility of stock outs
Question 2
Avoiding multiple forecasts as a countermeasure to the bullwhip effect is
accomplished by all of the following EXCEPT:
A. supplier data made available to customers
B. demand data made available by retailer
C. electronic data interchange
D. vendor managed inventory
Question 3
Demand forecast error, lead times, order batching and rationing are 4 of 5
known causes of the bullwhip effect. The fifth is:
A. competitor product innovations
B. increased spending of customers
C. price fluctuations and promotions
D. decrease in supplier provisions

Question 4
Each of the terms below is a source of demand variability, EXCEPT:
A. competition
B. seasonality
C. life cycle trends
D. manufacturing delays
Question 5
Short gaming occurs when:
A. manufacturers partially fill orders
B. manufactures fill some orders while delaying others
C. customers decreasing demand of non-rationed products
D. customers inflate orders in anticipation of manufacturer supply
rationing
Question 6
The bullwhip effect travels from:
A. customer to supplier
B. tier 2 customer to producer
C. tier 2 supplier to producer
D. supplier to customer
Question 7
What is one cause of the bullwhip effect?
A. lead times
B. seasonality
C. weather
D. quality control

Question 8
Increasing the distance between suppliers and customers tends to:
A. decreases the bullwhip effect
B. increase the bullwhip effect
C. has no impact on the bullwhip effect
D. reduces in-transit inventory
Question 9
Unforecasted pricing promotions can:
A. reduce demand variability
B. increase supply variability
C. increase the bullwhip effect
D. decrease the bullwhip effect
Question 10
In periods of short supply, it is not uncommon for customers to:
A. constrain orders submitted to the finished good packaging facility
B. artificially increase orders
C. leave orders unchanged
D. submit orders based on historic sales rates
Question 11
In periods of short supply, it is often beneficial to plan replenishments:
A. based on historic demand
B. based on current orders
C. based on elevated orders
D. based on customer demands

Question 12
A process to ensure alignment of demand and supply given existing
financial and supply constraints is:
A. S&OP
B. supply chain planning
C. MPS
D. MRP II

Section B: Managing Supply from Internal Sources
Question 1
A challenge to the supply-demand assemble-to-order strategy is:
A. the need for a reasonably skilled labor force
B. short production lead times
C. static customer tastes
D. suppliers with very specific demands
Question 2
A master production schedule takes a monthly bucketed plan and
determines the weekly production schedule of:
A. product families
B. individual products
C. specialized parts
D. most common parts
Question 3
A slushy zone is marked off by a:
A. demand time fence
B. schedule time fence
C. production time fence
D. planning time fence
Question 4
A tradeoff of a level production strategy is:
A. inventory builds during periods of low demand
B. last minute hiring of temps
C. increased machine downtime
D. high cost of maintaining constant raw materials supply

Question 5
All of the following are inputs needed in MRP EXCEPT:
A. inventory status
B. operation schedule
C. bills of materials
D. planning factors
Question 6
All of the following are sales and marketing related contributors to the
S&OP EXCEPT:
A. sales forecasts
B. sales strategy
C. market analysis
D. life cycle strategy
Question 7
Capacity in supply chain context is all about:
A. what can be manufactured at 100% machine efficiency
B. what can be accomplished by employing all the resources in the
network
C. what can be produced during a given time period
D. what can be planned to be launched given enough resources and
time
Question 8
Components that go into manufacturing finished products follow a delivery
schedule based on:
A. master production schedule
B. distribution resources plan
C. factory operation schedule
D. material requirements planning

Question 9
Counting backwards from a due date accommodating lead time is:
A. compensating
B. offsetting
C. equalizing
D. balancing
Question 10
Efficiency can be calculated by:
A. hours worked / hours downtime
B. actual output / target output * 100
C. standard hours worked / hour worked * 100
D. total hours used for production / total hours used for non production
(maintenance, tool changes, shift changes)
Question 11
In measuring available capacity as output for a given period, the following
inputs are needed, EXCEPT:
A. available time
B. utilization
C. efficiency
D. cycle time
Question 12
MRP II incorporates which specific function not available in previous MRP
programs?
A. financials
B. activities planning
C. inventory
D. order status

Question 13
Nervousness in the supply chain occurs when:
A. there are too much feedback from elements
B. there is apprehension that delivery times will not be met
C. there are frantic adjustments to the MRP
D. there is concern about reception to a NPI
Question 14
Production scheduling and transportation routing occurs at the following
level:
A. operational planning
B. strategic network design
C. supply chain master planning
D. operational execution
Question 15
Rough-cut capacity planning is performed against the:
A. master production plan
B. strategic plan
C. master production schedule
D. demand forecast
Question 16
S&OP is best conducted:
A. once per year
B. once per month
C. once per week
D. daily

Question 17
Tactical information is used to develop demand, production and
distribution plans aimed at:
A. achieving operational objectives
B. achieving execution objectives
C. achieving process improvements
D. achieving strategic objectives
Question 18
The best supply-demand strategy for a product with stable demand is:
A. make-to-order
B. assemble-to-order
C. make-to-stock
D. assemble-to-specification
Question 19
The cost of disrupting the production of another product to fulfill an order is
considered:
A. capable-to-promise
B. available-to-promise
C. opportunity cost
D. profitable-to-promise
Question 20
The general KPI for capacity is:
A. neither too much nor too little
B. correct output delivered on time
C. high machine utilization percentage
D. high overall equipment efficiency

Question 21
The gross requirement in a DRP system is:
A. sales forecast
B. production volume
C. total capacity
D. number of distribution centers
Question 22
The longest-term type of capacity planning is:
A. rough-cut capacity planning
B. resource requirements planning
C. capacity requirements planning
D. production activity control
Question 23
The MOST significant input to the MPS in determining what to make is the:
A. production plan
B. long range forecast
C. rough-cut capacity plan
D. material requirements plan
Question 24
The period of time for which plans are made is called:
A. long-term view
B. forecasting horizon
C. planning horizon
D. lead time

Question 25
The small bucket or no bucket system is one way to reconcile JIT and
MRP. The second is:
A. stabilized flow
B. Kanban system
C. back flushing process
D. balanced flow
Question 26
Transportation shipment tracking occurs at the following level:
A. strategic network design
B. supply chain master planning
C. operational execution
D. operational planning
Question 27
Utilization is calculated by:
A. hours worked / available hours * 100
B. hours worked - hours downtime
C. hours available / hours worked * 100
D. hours with production - hours without production
Question 28
What is one of the biggest challenges to Sales & Operations Planning
(S&OP)?
A. supply chain partners refuse to collaborate and make decisions
within their own silos
B. sales and marketing plans differ from manufacturing
C. plans are hard to implement without IT support
D. the resulting plans are too complicated to implement

Question 29
What is the key next step after the S&OP?
A. Creation of the distribution plan
B. Creation of the master production schedule
C. Development of the marketing plan
D. Continuous improvement review exercise
Question 30
What is the plan that verifies if production targets are feasible?
A. master production schedule
B. rough-cut capacity planning
C. sales forecast
D. purchasing plan
Question 31
Which is not a contribution made by the sales and marketing side to the
S&OP?
A. time phased forecasts
B. selection of target markets
C. determination of territories
D. inventory levels
Question 32
Which is one of Production Activity Controls main objectives?
A. maximize work in process
B. limit resources waste
C. reduce worker downtime
D. maintain customer service

Question 33
Which of the following provides a complete list of components required for
production of a product?
A. sales forecast
B. S&OP
C. bill of materials
D. MRP
Question 34
Which of the following should resource requirements planning be involved
in:
A. materials
B. output
C. quarterly workforce planning
D. inventory
Question 35
Which serves as a contract between sales and operations?
A. S&OP
B. Production Plan
C. MPS
D. MRP
Question 36
Within a demand time fence, the projected available balance uses:
A. forecasted amount
B. customer orders
C. the lower value between forecast and customer order
D. the higher value between forecast and customer order

Section C: Managing Supply from External Sources
Question 1
Which is not part of an external data network?
A. resellers
B. suppliers
C. external customers
D. channel support partners
Question 2
Sharing of information with key suppliers enables all of the following
EXCEPT:
A. better supply and demand matching
B. increased inventory levels
C. lowered costs
D. improved product availability
Question 3
All of the following are key areas of the balanced scorecard EXCEPT:
A. business process perspective
B. customer perspective
C. financial perspective
D. competitive perspective

Section D: Implementation of Demand Plans
Question 1
A hurdle to the make-to-order supply-demand strategy is the issue of:
A. complex customer orders
B. low product demand
C. high machine utilization time
D. short delivery lead time requirements
Question 2
All of the following tasks are performed by the supplier in a VMI
arrangement EXCEPT:
A. determine how inventory is stored
B. inventory replenishment based on customer demand
C. track and report inventory levels
D. accounts receivable
Question 3
Available-to-Promise provides:
A. support to move from a push strategy to a pull strategy
B. capacity leveling
C. guaranteed delivery dates
D. quantity and delivery dates in response to customer inquires
Question 4
Continuous replenishments goal is:
A. no stock outs
B. a continuous reduction in inventory levels as forecast error reduces
C. to maintain a constant amount of supply being delivered
D. to increase product off-take

Question 5
Inventory on hand plus scheduled receipts less booked orders defines:
A. first period available-to-promise
B. make-to-order
C. fill rate
D. stock out probability
Question 6
Suppliers often use point of sale data from retailers to:
A. schedule production and determine inventory levels
B. develop joint forecasts with the retailer
C. adjust safety stocks
D. determine reorder points
Question 7
The term used to represent the end products uncommitted inventory that is
available to ship to customers is:
A. available-to-distribute
B. available-to-release
C. available-to-promise
D. available-to-order
Question 8
What is the key benefit of an assemble-to-order approach?
A. allows mass customization
B. reduces labor costs
C. reduces stock outs
D. improves product reliability

Question 9
Which is not a measure of VMI success?
A. reduction or elimination of bullwhip effect
B. greater percentage of on time deliveries to the retailer
C. transfer of inventory from supplier to customers
D. reduction of lead times for deliveries

Section E: Continuous Improvement
Question 1
A Pareto diagram can be applied to:
A. any feedback from customers
B. any measurable data
C. any deviation from design
D. any quality problems
Question 2
All of the following are Lean supply chain objectives EXCEPT:
A. develop systems to produce perfect results
B. reduce number of jobs
C. eliminate almost all inventory
D. increase inspections to detect defects earlier
Question 3
An element of six-sigma is process. The goal of this element is:
A. zero errors always
B. low number of errors with consistent performance
C. acceptable number of errors
D. consistent results to prove reliability
Question 4
Continuous process improvement begins all of the following EXCEPT:
A. fixing the budget
B. finding the weakest process
C. developing the training plan
D. implementing corrective actions

Question 5
It is most necessary for those initiating quality improvement:
A. to be able to focus on local activities
B. to be able to communicate with management and workers alike
C. to be able to set immediate, small step goals
D. to be able to see end to end supply chain processes
Question 6
Kaizen is the Japanese term that signifies:
A. continuous improvement
B. high quality
C. reducing risk
D. operational excellence
Question 7
Process mapping helps:
A. an improvement team identify every bottleneck in the process
B. an improvement team identify the areas that need minimal support
C. an improvement team identify every significant aspect of an
inefficient process
D. an improvement team identify the key areas and players who can
contribute the most
Question 8
Six sigma training starts with green belt and ends with master black belt.
How many levels are in between?
A. 2
B. 3
C. 1
D. 0

Question 9
The best definition of continuous improvement is:
A. a continuous effort to improve processes to eliminate waste
B. a continuous improvement process to eliminate problems
C. a never-ending effort to expose and eliminate root causes of
problems
D. a never-ending effort to expose and eliminate root causes of waste
Question 10
The definition of root cause is:
A. the original problem that leads to process inefficiency
B. the original problem that causes the most harm
C. the original problem that leads to an unacceptable rate of defects
D. the original problem that causes other problems
Question 11
The goal of workflow management systems is:
A. to provide a framework for customer focused activities such as
customer service and order management
B. to connect customer information to the specific customer service
point at the right time
C. automation of procedures
D. integration of data from different transaction points to anticipate
customer needs
Question 12
Value stream mapping is:
A. a theoretical method tool
B. a paper and pencil tool
C. a virtual tool
D. an advanced technology tool

Question 13
What defects are measured when identifying the pattern during process
analysis?
A. defect according to the suppliers specs
B. defect according to the quality benchmark
C. defect according to the design plan
D. defects according to the customer
Question 14
What is the 80-20 rule?
A. 80% of problems can be attributed to 20% of possible causes
B. 80% of problems happen at 20% of processes
C. 80% of solutions come at the first 20% of ideas
D. 80% of solutions can be done by 20% of the personnel
Question 15
Which is not a benefit of Just-in-time?
A. inventory reduction
B. multi-skilled labor force
C. manufacturing cycle reduction
D. improved vendor relationships
Question 16
Which of the following is a specific reason for adopting continuous
improvement?
A. SCM relies on flexibility.
B. SCM is goal oriented.
C. SCM is process oriented.
D. SCM depends on adaptability.

Answers
Module 1: Fundamentals of Supply Chain

Management
Section A: Supply Chain Management Concepts

1. A
2. C
3. A
4. A
5. B
6. B
7. D
8. A
9. C
10. D
11. A
12. A 13. D
14. B
15. D
16. D
17. B
18. A
19. D

20. B
21. B
22. D
23. A
24. B
25. D
26. A
27. D
28. B
29. A
30. D
31. B
32. B
33. A
34. A
35. C
36. C
37. D
38. B
39. B
40. C
41. C
42. C
43. A
44. A
45. A

46. C
47. B
48. A
49. A
50. A
51. A
52. D
53. D
54. A
55. A

Section B: Supply Chain Alignment with Business Strategy
1. C
2. B
3. A
4. D
5. D
6. C
7. D
8. D
9. C
10. B
11. C
12. C
13. C
14. D
15. D
16. B
17. B
18. B
19. B
20. A
21. D
22. B
23. D
24. D
25. C

26. B
27. D
28. A
29. C
30. D
31. A
32. C
33. D
34. C
35. C
36. B
37. A
38. D

Section C: Supply Chain Design and Improvement
Considerations
1. B
2. C
3. D
4. D
5. B
6. A
7. A
8. C
9. C
10. A
11. B

Section D: Inventory Management
1. B
2. D
3. B
4. A
5. C
6. C
7. B
8. C
9. B
10. C
11. A
12. C
13. A
14. C
15. D
16. C
17. D
18. C
19. A
20. C
21. A
22. C
23. D
24. C
25. D

Section E: Logistics Fundamentals
1. D
2. D
3. D
4. C
5. C
6. D
7. B
8. A
9. C
10. A

Section F: Market Segmentation
1. C
2. A
3. B
4. B
5. A
6. D
7. B
8. D
9. A
10. C
11. D
12. A
13. D

Section G: Demand Planning
1. B
2. A
3. C
4. D
5. A
6. B
7. D
8. A
9. A
10. C
11. D
12. C
13. B
14. A
15. D
16. B
17. A
18. D
19. B
20. B
21. A

Concepts
1. A
2. B
3. B
4. C

Section I: Supply Management Concepts
1. D
2. C
3. B
4. C
5. B
6. D
7. D
8. D
9. C
10. D
11. A
12. B
13. A
14. A

Module 2: Supply Chain Strategy, Design and
Compliance
Section A: Sustainability
1. A
2. B
3. B
4. B
5. B

Section B: Risk Management
1. D
2. C
3. B
4. C
5. C
6. B
7. C
8. B

Section C: Globalization
1. A
2. C
3. D
4. C
5. D
6. B
7. C
8. A
9. A
10. B

Section D: Logistics
1. A
2. B
3. D
4. C
5. D
6. B
7. B
8. D
9. B
10. B
11. D
12. C
13. A
14. B
15. D
16. D
17. A
18. C
19. D
20. C
21. D
22. A
23. D
24. B
25. C

26. C
27. D
28. D
29. B
30. D
31. B
32. D
33. A
34. A
35. C
36. A
37. B
38. A
39. C
40. C
41. A
42. A
43. D
44. A
45. C

Section E: Managing the Supply Chain
1. C
2. A
3. C
4. B
5. D
6. A
7. A
8. B
9. B
10. A
11. D
12. C

Section F: Technology
1. A
2. D
3. C
4. B
5. A
6. C
7. A
8. C
9. D
10. A
11. B
12. D
13. A
14. D
15. B
16. C
17. D
18. A
19. D
20. B
21. B
22. A
23. A
24. D
25. C

26. C
27. A
28. D
29. B
30. B
31. D
32. A
33. A
34. B
35. D
36. A
37. B
38. B
39. D
40. C
41. D
42. D
43. A
44. C
45. A
46. A
47. B
48. C
49. A
50. A
51. C

52. C
53. A
54. B
55. B
56. D
57. B
58. C
59. A
60. D
61. C
62. B
63. A
64. B
65. D
66. D
67. D
68. D
69. C
70. A
71. B
72. A
73. D
74. B
75. C
76. B
77. D

78. A
79. A
80. A
81. D
82. B
83. A
84. C
85. A
86. D
87. A
88. B
89. B
90. D
91. A
92. B
93. A
94. D
95. D
96. C
97. D
98. B
99. D
100. B
101. C
102. D
103. B

104. D
105. A
106. B
107. B
108. C
109. B
110. A
111. A
112. A
113. A
114. A
115. D
116. C
117. A
118. B
119. A
120. C
121. B
122. A
123. A
124. B
125. C
126. B
127. D
128. C
129. B

130. A
131. D
132. D
133. B
134. D
135. D
136. C
137. B
138. B
139. B

Section G: Influencing and Prioritizing Demand
1. A
2. D
3. A
4. A
5. C
6. A
7. D
8. C
9. D
10. C
11. B
12. C
13. C
14. A
15. B
16. D
17. A

1. A
2. A
3. B
4. C
5. C
6. A
7. C
8. A
9. D
10. A
11. A
12. B
13. A
14. D
15. C
16. D
17. C
18. C
19. A
20. B
21. B
22. B
23. D
24. B
25. B

26. A

Section I: Supplier Relationship Management (SRM)
1. B
2. A
3. A
4. A
5. A
6. D
7. A
8. D
9. C
10. C
11. D
12. B
13. A
14. D
15. C
16. D
17. B
18. C
19. C
20. A
21. D
22. D
23. C
24. B
25. C

26. C
27. C
28. A
29. D
30. C
31. C
32. A
33. D
34. B
35. A
36. C

Section J: Inventory Planning and Control
1. C
2. D
3. C
4. C
5. B
6. A
7. D
8. C
9. C
10. B
11. C
12. D
13. A
14. C
15. A

Module 3: Implementation and Operations
Section A: Supply Chain Dynamics
1. A
2. A
3. C
4. D
5. D
6. A
7. A
8. B
9. C
10. B
11. A
12. A

Section B: Managing Supply from Internal Sources
1. A
2. B
3. D
4. A
5. B
6. D
7. B
8. D
9. B
10. C
11. D
12. A
13. C
14. A
15. C
16. B
17. D
18. C
19. D
20. A
21. A
22. B
23. A
24. C
25. D

26. C
27. A
28. A
29. B
30. B
31. D
32. D
33. C
34. C
35. C
36. B

Section C: Managing Supply from External Sources
1. C
2. B
3. D

Section D: Implementation of Demand Plans
1. D
2. D
3. D
4. B
5. A
6. A
7. C
8. A
9. C

Section E: Continuous Improvement
1. B
2. D
3. B
4. D
5. D
6. A
7. C
8. C
9. C
10. C
11. B
12. B
13. D
14. A
15. B
16. C

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From the team at VOLUME 2

Prepare for the CSCP exam and learn

Over 550 Practice Questions

Answer Key Provided

Updated for 2013

Module 1: Fundamentals of Supply Chain Management 4

Module 2: Supply Chain Strategy, Design and Compliance 57

Module 3: Implementation and Operations 139

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Module 1: Fundamentals of Supply Chain

Section A: Supply Chain Management Concepts

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Section B: Supply Chain Alignment with Business Strategy

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Section C: Supply Chain Design and Improvement

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Section D: Inventory Management

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Section E: Logistics Fundamentals

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Section F: Market Segmentation

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