Free Access APICS.CSCP.v2023-03-13.q160 Practice Test (Page 24)

Question 111

Organizations can take which of the following actions as an outcome of SWOT analysis?

A.Take advantage of external positive factors.

B.Control external negative factors.

C.Publish their internal positive factors.

D.Emphasize their internal negative factors.

Question 112

Which of the following techniques typically is most effective for controlling variability of demand in a supply chain?

A.Centralizing demand information

B.Holding additional stock at the distributor's location

C.Closer monitoring of product promotions at the retailer

D.Holding consignment inventory at a customer's location

Question 113

Which of the following cost elements typically would be included in the cost of carrying inventory?

A.Direct materials

B.Scrap during production

C.Obsolescence

D.Depreciation of product equipment

Question 114

When evaluating several possible supply chain options, a firm considering the minimal total cost should:

A.place buffer inventory in the lowest cost locations that meet lead time and service level requirements from customers.

B.ensure that the inventory levels are as low as possible to minimize holding costs while still providing adequate customer service.

C.account for the combined costs of holding buffer inventory and incurring inventory shortages.

D.consider the costs of acquiring, holding, and transporting inventory and of servicing customers.

Question 115

Which of the following risks does currency fluctuation pose if a company is operating globally?

A.It changes the relative profit expected from the sales.

B.It requires compensation to local governments.

C.It creates a requirement for additional inventory.

D.It impacts supplier performance due to frequent replenishment.

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