CSCP Learning System

Final Exam
1. A sealant and adhesive manufacturer for the automotive industry charges its customers for materials
as they are applied to the vehicles at the customers plants. Working with dozens of raw material and
part suppliers, they maintain the application equipment on each customers factory floor and ensure
that quality product is on site before it is needed. Which of the following software and change
initiatives would be the best choice for this manufacturer?
a. Both CRM and SRM
b. CRM
c. SRM
d. Neither CRM nor SRM
2. Which of the following goals is the focus of the SCOR process model?
a. Process improvement
b. Realistic schedules
c. Customer satisfaction
d. Management of returns
3. Which of the following is least likely to be a priority for a person who is a lifetime customer with a
retail sporting goods chain?
a. Convenience
b. Price
c. Stability
d. Quality
4. A supply chain partner has mandated that the supplier provide enterprisewide visibility to the
suppliers inventory, including work-in-process (WIP) and available-to-promise (ATP) for a
particular product family, but the company cannot afford to replace their multiple databases in the
near term. Which of the following will allow the company to provide a single source of data to their
partners without the migration or replacement costs of consolidating their multiple systems?
a. Data mining
b. Data warehouse
c. Object-oriented database
d. Network database

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5. Which of the following actions is the most effective way to counteract shortage gaming and its
contribution to the bullwhip effect?
a. Ration supplies in equal parts to all customers.
b. Promise customers a no-questions-asked policy on returns of unsold inventory.
c. Do a more effective job of preventing information leaks that tip suppliers off to the upcoming
shortage.
d. Apportion supplies to customers based on their past orders rather than their current orders.
6. A business makes a series of graphs and charts to get their extended supply chain partners on board
with their collaborative inventory reduction initiative. They also share the results of their detailed
month-long pilot in which their new software balanced conflicting interests and lowered their
inventory levels safely. Which of the following identifies each model this firm is using?
a. Conceptual models and mathematical models
b. Mathematical models and simulation models
c. Conceptual models and simulation models
d. Both are types of simulation models.
7. Supply chain management would cross the threshold between Stage 3 (integrated enterprise) and
Stage 4 (extended enterprise) evolution when the nucleus firm takes which of the following steps?
a. Establishing a recycling program
b. Setting up a supplier-producer design-process team
c. Automating warehouse management
d. Establishing JIT (Just-in-Time) production
8. A manager is determining the ROI for a software implementation. Total tangible benefits are estimated at
$300,000, but intangible benefits have resulted in two estimates. One estimate forecasts a reduction in the
workforce for total intangible benefits of $200,000. The other estimate instead forecasts a redeployment
of the workforce for total intangible benefits of $100,000. Costs are estimated to be $350,000. Which of
the following shows the ROI for this project as would best be reported to management?
a. 14%
b. 43%
c. 70%
d. 88%
9. Which of the following strategic decisions is tightly connected with product, especially in a
differentiated marketplace such as sales of a newly patented product or in tailoring the product to
different market segments?
a. Promotion
b. Price
c. Product and service agreement (PSA)
d. Placement

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10. In a supply chain that produces office furniture, one supplier makes components including slides for
file drawers (two sets per drawer); another fabricates drawers; and a manufacturer assembles desks
and file cabinets that use the drawers (one drawer per desk, one or two per file cabinet). The most
accurate forecast in this chain would focus on which of the following?
a. All slide assemblies
b. All drawers
c. All file cabinets or all desks
d. All desks and file cabinets assembled with the drawers
11. What stage of supply chain development would a firm that could support unattended trading and
online RFQs over the Internet be at?
a. Functional focus
b. Internal integration
c. External integration
d. Cross-enterprise collaboration and optimization
12. Which of the following supply chain actions is most likely to reduce the bullwhip effect?
a. Increasing safety stock supplies in the wholesale echelon
b. Adding a midseason promotion in the retail echelon
c. Instituting independent forecasts by each partner
d. Moving the push-pull boundary further from the end user customer
13. Which of the following is true of configuration versus customization of a new ERP system
implementation, assuming that the company found a product that fit 80 percent of their strategic goals?
a. Configuration should be applied to all of the software; customization should be applied only to
the 20 percent that falls outside the strategic fit.
b. Customization should be applied to all of the software; configuration should be applied only to
the 20 percent that falls outside the strategic fit.
c. Customization and configuration should be applied only to the 20 percent that falls outside the
strategic fit.
d. Customization and configuration can and should be applied to 100 percent of the software to
make it fit all strategic goals.
14. Which of the following is a valid criticism of using the Delphi method (a panel of experts) to forecast
demand?
a. Final reports include too much irrelevant information.
b. The setup reinforces the tendency of expert panelists to resist changing their views for fear of
appearing wrong in front of their peers.
c. The method is prone to groupthink, which leads to emotionally charged, unrealistic forecasts.
d. The expert panel members are unlikely to uncover the unconventional or novel possibilities that
outside observers might detect.

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15. When creating an intra-enterprise strategy to evolve to the higher stages of supply chain development,
after management decides to permit exchange of pertinent information and sets the goals for the
desired end state of the supply chain, which of the following is the next step?
a. Design in change management and training with stringent timetables.
b. Create a conceptual model that will explain the process and its elements.
c. Create cross-functional and cross-business teams.
d. Create a culture shift in individual employee skill sets to encourage the change.
16. The naive method of demand forecasting takes its name from which of the following characteristics?
a. It is based on the views of outsiders to the market in question.
b. It rules out the effects of all forms of demand fluctuation (random, cyclical, trends, etc.).
c. It is based on intuition, not data.
d. It inevitably underperforms more sophisticated demand techniques.
17. Warehouse management systems (WMS) selection should primarily hinge on which of the following?
a. Directed picking, replenishment, and put-away
b. Demand patterns and optimal balance between stockout costs and inventory holding costs
c. Optimal inventory level, automated replenishment, and continuous cycle counting
d. Interleaving, cross-docking, and demand patterns
18. Which of the following statements identifies a strength of moving average demand forecasting?
a. It reduces the complexity of calculating averages over multiple periods.
b. It is especially sensitive to cyclical change.
c. It corrects for random short-term fluctuations in demand.
d. It corrects for seasonal trends.
19. Which of the following indicates the primary functions of supply chain event management (SCEM)
software?
a. Allows nucleus firm to control collaboration with its supply chain partners in a centralized fashion
b. Combines multiple application workflows for better planned or unplanned event control and
visibility
c. System analysts provide reports on customer demand to marketing/sales more quickly after
receiving exception reports from planned events.
d. Control over planned and unplanned events to allow management to devote more time to shipping
and receiving
20. If a firm has 20 days of payables outstanding, 24 inventory days of supply, and 56 days of sales
outstanding, what is its cash-to-cash cycle time?
a. 100 days
b. 80 days
c. 60 days
d. 52 days
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21. Which of the following is an example of segmentation by customer value?

a. Providing visible discounts on shipping to profitable valued customers after uncovering that the
group prefers rapid shipping
b. Investing in after-sale support because a segments value profile indicates that post-purchase
experience is important to the segment
c. An airline offering customers bonus miles in their frequent flier programs for purchasing tickets
over a less costly channel such as the Internet
d. A value proposition such as the sensory experience of seeing and touching products in a retail shop
22. Which of the following is a feature of supply chain planning (SCP) rather than of advanced planning
and scheduling (APS)?
a. Detailed system optimization once strategic priorities have been set
b. Simulates the effect of various management priorities
c. Addresses granular constraints at the plant level across multiple plants
d. Synchronizes capacity with workload
Refer to the following table of forecast and demand history to answer questions 23 and 24.
Actual
Demand

Forecast

Deviation

January

13

February

15

March

14

April

10

14

-4

May

12

13

-1

June

14

11

+3

July

14

M.A.D. (Apr June) = ?

23. In the table shown, what is the mean absolute deviation (MAD) for the months April, May, and June?
a. 2/3
b. +2/3
c. +2
d. +8/3
24. Using the three-month moving average method shown in the table, determine which of the following
is the forecast for July.
a. 12
b. 12.67
c. 13.33
d. 14

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25. A firm implementing the SCOR model to assess its supply chains delivery reliability would use
which of the following key performance indicators?
a. Order fulfillment cycle time
b. Flexibility
c. Adaptability
d. Perfect order fulfillment
26. Which of the following CRM software components automates procedures for passing documents,
information, and tasks among users and provides one-stop problem resolution by getting these data to
all customer service points at the right time?
a. Workforce automation
b. Enterprise marketing automation (EMA)
c. Sales force automation (SFA)
d. Web-enhanced customer care
27. Which of the following allows Web services to transmit data in a decentralized, distributed manner by
creating a universal wrapper for the data?
a. Collaboration protocol profile (CPP)
b. Simple object access protocol (SOAP) message
c. Universal description, discovery, and integration (UDDI) registry
d. Web services description language (WSDL)
28. Supply chain partner firms that belong to C-TPAT are subject to which of the following sanctions if
they fail to follow its anti-terror guidelines?
a. Civil penalties
b. Revocation of corporate charter
c. Suspension
d. Criminal penalties
29. A basic type of collaboration in which a retailer provides its supplier with accurate sales data but still
submits orders independently is called which of the following?
a. Vendor-managed inventory
b. Kanban
c. Continuous replenishment
d. Quick response
30. Which of the following is an example of applied strategic sourcing as opposed to traditional sourcing?
a. Reducing categories of temporary help positions to remove redundancies
b. Focus on specific transactions to make each purchase rapid
c. Automation that finds the lowest available purchase price online
d. Requiring that suppliers carry high inventory levels to reduce own inventory levels

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31. Through focus group research, a company determines that customer complaints (or defects in six-sigma
terms) arise from four different sources: failure of the product to perform as advertised; difficulty
following setup instructions; dissatisfaction with the warranty terms; frequency of repairs. The minimum
criterion of success for a six-sigma initiative with regard to this product would be which of the following?
a. No more than 3.4 instances of dissatisfaction per 250,000 customers
b. No more than 3.4 returned products per 250,000 sales
c. No more than 3.4 defects per 250,000 products sold (on average)
d. No more than 3.4 defects per 1,000,000 products sold
32. A Japanese circuit board manufacturer ships hundreds of containers of circuit boards to multiple
countries, each containing multiple pallets destined for a different business in the area. The boxes on any
one pallet are for a single recipient only. Because each container has items for more than one company,
the manufacturer wants pallets to have a medium read range so they can verify which companies are
receiving what pallets without having to open the container once it has been sealed. They need to read
the container codes from long ranges, and cost is a secondary consideration. The box tags must be
inexpensive. Which of the following would be the best solution for this manufacturer?
a. Active tags on containers and passive tags on pallets and boxes
b. Passive tags on containers, semipassive tags on pallets, and active tags on boxes
c. Semipassive tags on containers, pallets, and boxes
d. Active tags on containers, semipassive tags on pallets, and passive tags on boxes
33. Which of the following best represents the concept of design for logistics?
a. Pallets made of reusable materials
b. Containers designed with sloping sides so that one nests inside another
c. A car that uses fuel-efficient hybrid gasoline/battery drive train
d. Factory-assembled lawn tractors
34. Which of the following approaches to supply chain partner alliance relationships will be the most costeffective in the long term?
a. Maximum effort and commitment on existing alliances and secondary stress on potential alliances
b. Equal and moderate commitment toward all existing and potential alliances
c. Arms length effort and commitment toward all existing and potential alliances
d. Maximum effort and commitment toward potential alliances and secondary stress on existing alliances
35. A firm is having trouble with the vast amounts of data generated by their RFID systems, and their
ERP systems are having trouble making use of the data. Which of the following would resolve their
issues without itself becoming a bottleneck?
a. Upgrading tags to include a buffer between the tag and the interrogator
b. Upgrading tags to the EPC Gen 2 UHF with faster read/write rates
c. EPC middleware on a central server
d. EPC middleware after data capture but before EPC Information Services

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36. Which of the following have established restrictions on the use of wood pallets because the pallets
may contain insect pests?
a. World Trade Association
b. China and the European Union (EU)
c. C-TPAT
d. Sarbanes-Oxley
37. Which of the following is true of supplier rating systems?
a. Rating criteria and results should be shared with suppliers, but subjective assessments should be
secured internally.
b. Rating criteria should be shared with suppliers, but other communication with suppliers should be
restricted to performance alerts for specific transactions.
c. Rating criteria, results, and subjective assessments from surveys should be shared with suppliers.
d. Rating criteria, results, and subjective assessments are internal-use-only tools that could produce
adverse relationships if released to suppliers.
38. Checking to determine whether or not the network contains sufficient resources to meet output plans
by product family takes place at which of the following planning levels?
a. Business planning
b. Sales and operations planning
c. Master production scheduling
d. Materials resource planning
39. Which of the following describes an e-Business supply chain as opposed to a traditional supply
chain?
a. The channel master becomes the firm closest to the customer such as the retailer for consumer
goods.
b. Many physical assets become barriers to market entry.
c. The fast dominate the slow.
d. The channel master dictates trading terms to partners.
40. Which of the following sequences describes a process consistent with developing a master production
schedule (MPS)?
a. Aggregating component schedules to create end-item schedules
b. Aggregating end-item schedules to create product family schedules
c. Disaggregating end-item schedules to create component schedules
d. Disaggregating product family schedules to create end-item schedules

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41. The leading industry maintenance, repair, and overhaul (MRO) distributor wants an online
exchange/marketplace that will not dilute its market dominance. Which of the following would be the
best choice of marketplace type for this firm?
a. Vertical private trade exchange
b. Horizontal consortium-based trade exchange
c. Horizontal private trade exchange
d. Vertical consortium-based trade exchange
42. If your supplier tells you it has 500 items available-to-promise, 300 items on hand, and 1,000
items scheduled for first-period production, how many orders are already on the suppliers
books?
a. 300
b. 800
c. 1,000
d. 1,800
43. Which of the following starts from the premise that inventory is evil?
a. Six-sigma
b. Just-in-Time (JIT)
c. Push systems
d. Theory of constraints (TOC)
44. Which of the following tasks would be a responsibility of a purchasing agent as opposed to a manager
of purchasing?
a. Serving on cross-functional teams integrating workflows and sharing information
b. Identifying areas to add value to product through managing supplier relationships
c. Analyzing purchasing data to report impact on corporate goals and to identify areas for
improvement
d. Monitoring performance of suppliers for timeliness, completion, and quality of work
45. Adding warehouses to a logistics network will generally result in which of the following beneficial
consequences?
a. Warehousing costs tend to decrease.
b. Inventory costs tend to decrease.
c. Transportation costs tend to decrease.
d. Total costs will go down due to smaller warehouses for the same inventory levels.

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46. Which of the following allows sellers to continue making lower bids (unlike an RFQ) on a transaction
that usually involves high-value, low variability, or easy-to-define goods where the buyer is
indifferent to the seller?
a. Forward auction
b. Reverse auction
c. Dutch auction
d. Demand management auction
47. If you were the operator of a firm that produces goods for export but you were unwilling to deal
directly with importers, you might look for which one of the following independent operators to
purchase your goods for resale in another country?
a. Export trading company
b. Freight forwarder
c. Consolidator
d. Export management company
48. In arguing for the adoption of a total quality improvement approach to supply chain improvement, a
TQM advocate might be expected to make which of the following arguments?
a. TQMs radical approach to change is necessary to transform a complex system like a supply
chain.
b. TQMs focus on leadership from the shop-floor level is appropriate to the typical manufacturingoriented supply chain.
c. TQMs approach of constant change fits well with the dynamic nature of supply chains.
d. Qualitys relentless focus on transformation of product features is consistent with supply chain
managements need to focus on the end customer.
49. A manager wants to reduce transportation costs by shipping to retail locations with full truckloads,
partly by holding items until enough are manufactured. Which of the following are the tradeoffs that
such a policy would create?
a. Lower inventory storage costs for retailers and shorter lead times for the manufacturer
b. Lower inventory storage costs for retailers and longer lead times for the manufacturer
c. Higher inventory storage costs for retailers and longer lead times for the manufacturer
d. Higher inventory storage costs for retailers and shorter lead times for the manufacturer
50. A customs house broker often performs which one of the following functions on behalf of an
importer?
a. Pays the tariff on incoming cargo
b. Designates the contents of incoming cargo with the proper tariff classification
c. Purchases goods in a free trade zone and resells them to the importer
d. Consolidates shipments for return trips from importers docks to the port

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