APICS CSCP Exam
APICS Certified Supply Chain Professional (Page 18 )

Updated On: 1-Feb-2026

The benefits of supplier relationship management (SRM) can be attributed to:

  1. higher levels of automated transactional processing for lower cost and fewer errors.
  2. improvement of the interactions and business processes between buyers and suppliers.
  3. identification of key suppliers for greater attention from supply chain managers.
  4. observation of the supply base to ensure that suppliers are providing high levels of service.

Answer(s): D



A group of trading partners manufactures and distributes products. An increase in which of the following factors is most likely to result in an increase in the retailer's supply variability?

  1. Product simplification
  2. Retailer replenishment order quantities
  3. Manufacturer's defect rate
  4. Distributor replenishment frequency

Answer(s): B



Early supplier involvement (ESI) in product design and development is most likely to result in:

  1. design suggestions and reduced cycle time.
  2. distribution strategy suggestions and reduced lead times.
  3. distribution strategy suggestions and product price suggestions.
  4. product price suggestions and design suggestions.

Answer(s): A



A company introduced a product that sold at 500% of forecast, forcing the company to allocate available product.
Which risk classification best describes this event?

  1. Availability
  2. Process
  3. Demand
  4. Financial

Answer(s): C



A company produces to stock and sells its products to distributors. The factor that most likely will contribute to the risk of loss in inventory investment is the:

  1. accuracy of demand forecasts.
  2. replenishment lead time.
  3. level of product quality.
  4. variability in supply.

Answer(s): A



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