APICS Supply Chain & Strategy 2

Question 1

Which supply chain strategy is most appropriate when demand is unpredictable and product variety is high?

Accepted Answer

Agile supply chain

Answer

An agile supply chain is designed to respond quickly to unpredictable demand and high product variety.

Question 2

The 'bullwhip effect' in supply chains refers to:

Accepted Answer

Amplification of demand variability as orders move upstream

Answer

The bullwhip effect describes how small demand fluctuations at the retail level become increasingly amplified as they propagate upstream through the supply chain.

Question 3

A company using a 'postponement' strategy in its supply chain is attempting to:

Accepted Answer

Defer product differentiation until closer to the point of sale

Answer

Postponement delays final product customization or differentiation until demand signals are clearer, reducing the risk of obsolete inventory.

Question 4

Which metric best measures the overall effectiveness of a supply chain in delivering value to customers?

Accepted Answer

Perfect Order Fulfillment rate

Answer

Perfect Order Fulfillment measures the percentage of orders delivered on time, complete, damage-free, and with accurate documentation — a comprehensive customer-centric KPI.

Question 5

In SCOR (Supply Chain Operations Reference) model, the 'Source' process category primarily covers:

Accepted Answer

Procurement of goods and services from suppliers

Answer

The 'Source' process in SCOR encompasses ordering, receiving, and managing supplier relationships for purchased goods and services.

(APICS) American Production and Inventory Control Society Certified Practice Test

(APICS) American Production and Inventory Control Society Certified Practice Test

APICS Supply Chain & Strategy 2