Module 1

Question 1
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 2
Which of the following is a key supply chain process?
A. forecast
B. source
C. benchmark
D. analyze
Question 3
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 4
Which of the following is not an entity of a supply chain?
A. producer

B. supplier
C. customer
D. manager
Question 5
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 6
Suppliers provide all of the following to a supply chain, EXCEPT:
A. materials
B. energy
C. services
D. demand
Question 7
All of the following describe a supply chain flow, EXCEPT:
A. the flow of physical materials and services from supplier to other entities
B. the flow of cash upstream to raw material suppliers
C. the flow of information within a supply chain
D. the flow of employees from one department to another
Question 8
Reverse supply chain is employed for the following reasons, EXCEPT:

A. repairs
B. disposal
C. recycling
D. quality control
Question 9
Tier 2 suppliers:
A. provide materials or services to suppliers of the producer
B. provide lower quality raw materials
C. serve only as a back-up to Tier 1 suppliers
D. supply raw materials to the secondary products of a company
Question 10
Which of the following best describes the term lateral supply chain?
A. processes are no longer performed internally and become dependent on outsourced
collaborations
B. the supply chain grows incrementally
C. a supply chain that is applicable in various industries
D. a supply chain that holds significant centralized control of processes

Module 2
Question 1
What condition describes the magnification of demand fluctuations up the supply chain?
A. bullwhip effect
B. demand variability
C. exponential smoothing
D. square root rule

Question 2
Each of the terms below are sources of demand variability, EXCEPT:
A. competition
B. seasonality
C. life cycle trends
D. manufacturing delays
Question 3
What is one cause of the bullwhip effect?
A. lead times
B. seasonality
C. weather
D. quality control
Question 4
Each of the following is an approach to avoiding multiple forecasts, EXCEPT:
A. information sharing
B. system integration
C. vendor-managed inventory (VMI)
D. transactional processing
Question 5
What is one way to reduce the contribution of lead time to the bullwhip effect?
A. reducing order batch size
B. time management
C. prioritization

D. cost reduction
Question 6
Which of the following is true about forecasting?
A. It should be done once a year
B. It should be conducted by the supply chain leadership
C. It is more accurate for groups than for individual items
D. It is better to under-forecast rather than over-forecast
Question 7
Independent demand is best defined by:
A. demand for the finished product
B. demand forecast of an unbiased third party provider
C. demand that is based on actual orders
D. demand for manufacturing raw materials
Question 8
When do corporations employ qualitative forecasting?
A. When products are low value
B. When products are at the end of life stage
C. For new product introductions
D. When reliable historical sales data is available
Question 9
Intrinsic forecasting focuses on:
A. data about demand for the product itself
B. variables that affect the demand of the product

C. leveraging the collective experience possessed by employees

D. the inherent value of the product to the customer
Question 10
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

Module 3
Question 1
Customer relationship management (CRM) is best described as:
A. a focus on managing long term supplier relationships
B. a marketing philosophy based on putting the customer first
C. managing customers to promote your products
D. transactional guidelines when dealing with customers
Question 2
One general goal of supplier relationship management (SRM) is:
A. ensure mutual profitability while meeting customer needs
B. manage supplier costs
C. build relationships with as many suppliers as possible
D. improve negotiation process
Question 3
What impact has the focus on CRM and SRM had on business mindset?

A. lower costs
B. greater integration
C. shorter cycle times
D. focus on bottom-line results
Question 4
What is a key reason for the move to greater integration with suppliers?
A. consolidation of the industry
B. technology transfer
C. improved relationships
D. reduce complexity
Question 5
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 6
Independent organizations that cooperate based on mutual values and act as a single entity is
called a:
A. lateral organization
B. integrated supply chain
C. lean supply chain
D. virtual organization
Question 7

What role has technology played in CRM?

A. It has made it easier for business to gather information on customer buying habits
B. It has spawned new software companies
C. It has changed the roles of participants
D. It has reduced the complexity of the supply chain
Question 8
Technology has played all of the following roles in SRM, EXCEPT:
A. Systems can show current status of operations
B. Suppliers can communicate with customers in real time
C. Transactional processes can be automated
D. Security enhancements now effectively segregate enterprise business processes
Question 9
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 10
A firm that has a customer first marketing philosophy practices:
A. CRM
B. TPM
C. SRM
D. CTM

Module 4
Question 1
Which one is NOT among the three largest companies presently providing ERP software:
A. SAP
B. Oracle
C. Microsoft
D. Sybase
Question 2
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 3
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 4
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 5
A successful deployment of a fully integrated ERP system is a characteristic of a:
A. Stage 1, functional focused supply chain
B. Stage 2, internally integrated supply chain
C. Stage 3, externally integrated supply chain
D. Stage 4, cross-enterprise collaboration and optimized supply chain
Question 6
What provides the foundation for a supply chain to move to Stage 3 and ultimately Stage 4 of
supply chain development?
A. MPS
B. ERP
C. DRP
D. MRP
Question 7
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 8

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 9
What percentage of your required functionality should you expect in an industry leading ERP
system off-the-shelf product:
A. 50%
B. 70%
C. 80%
D. 90%
Question 10
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

Answers to 40 CSCP Questions

Module 1
1. D
2. B

3. A
4. D
5. A
6. D
7. D
8. D
9. A
10. A

Module 2
1. A
2. D
3. A
4. B
5. A
6. C
7. A
8. C
9. A
10. A

Module 3
1. B
2. A
3. B

4. A
5. D
6. D
7. A
8. D
9. B
10. A

Module 4
1. D
2. D
3. C
4. B
5. B
6. B
7. D
8. C
9. C
10. B