APICS Supply Chain & Strategy 4

Question 1

A company decides to outsource its warehousing operations to a third-party logistics (3PL) provider. The primary strategic rationale is typically to:

Accepted Answer

Focus on core competencies while leveraging the 3PL's expertise and scale

Answer

Outsourcing to 3PLs allows companies to concentrate on their core business while benefiting from the provider's specialized expertise, technology, and economies of scale.

Question 2

Which supply chain strategy uses real-time point-of-sale data to trigger replenishment signals directly from the retailer to the supplier?

Accepted Answer

Continuous Replenishment Program (CRP)

Answer

Continuous Replenishment Programs use real-time POS data to automatically trigger supplier replenishment, keeping shelves stocked with minimal inventory.

Question 3

In supply chain risk management, 'supply chain resilience' is best defined as:

Accepted Answer

The capacity to prepare for, adapt to, withstand, and recover rapidly from disruptions

Answer

Supply chain resilience is the ability to anticipate, prepare for, respond to, and adapt to incremental change and sudden disruptions in order to survive and prosper.

Question 4

The 'cash-to-cash cycle time' metric measures:

Accepted Answer

Time from paying for materials to collecting payment from customers

Answer

Cash-to-cash cycle time measures how long a company's cash is tied up in operations, from paying suppliers to collecting from customers (DIO + DSO - DPO).

Question 5

When a company implements a 'green supply chain' strategy, a primary operational focus is:

Accepted Answer

Minimizing environmental impact across the full supply chain lifecycle

Answer

Green supply chain management integrates environmental thinking into supply chain management, addressing design, sourcing, production, delivery, and end-of-life product management.

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

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

APICS Supply Chain & Strategy 4