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APICS CSCP Exam
APICS Certified Supply Chain Professional (Page 17 )

Updated On: 1-Feb-2026
Page 17 of 145
PDF with 719 Questions

A firm has a multilevel distribution network with a central distribution center (DC) and several regional distribution centers. It would be most appropriate to store products with which of the following combinations of cost and demand characteristics only in the central distribution center?

  1. Inexpensive with sporadic customer demand
  2. Inexpensive with seasonal customer demand
  3. Moderate cost with high customer demand
  4. Expensive with sporadic customer demand

Answer(s): D



Forecasting methods can be grouped into which of the following categories?

  1. Seasonal, trend, and promotional events
  2. Moving average, exponential smoothing, and Holt-Winters
  3. Qualitative, extrinsic, and intrinsic
  4. Annual, monthly, and dally requirements

Answer(s): C



Which of the following tactics effectively reduces the bullwhip effect?

  1. Reducing lead times among trading partners
  2. Buying large quantities for a substantial discount
  3. Increasing safety stock levels
  4. Increasing the level of advertising

Answer(s): A



Which of the following risks is most likely to occur when implementing a global sourcing strategy?

  1. Internal operating costs will increase due to the additional time to process purchase orders across time zones and cultural barriers.
  2. Achieving economies of scale will be difficult if global shipments are not consolidated at shipping origin.
  3. Inventory carrying costs will increase along with freight costs due to increasing delivery transit times.
  4. Customers could purchase their products and materials elsewhere due to the fact that core operations were outsourced abroad.

Answer(s): B



Which of the following actions hedges against commodity price fluctuations in a supply chain?

  1. Purchase always from the lowest bidder.
  2. Increase safety stock levels.
  3. Establish an online auction site.
  4. Purchase future options.

Answer(s): A



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