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APICS Certified Supply Chain Professional Questions 634–638 (page: 43)

Updated On: 1-Feb-2026

Variability in the supply chain can be minimized by:

  1. applying the bullwhip effect.
  2. reducing lead time.
  3. increasing safety stock.
  4. increasing forecast frequency.

Answer(s): B



The ABC classification system answers which two of the following questions?

  1. How much inventory should be ordered at one time, and when will the order be placed?

  2. What is the importance of the inventory item, and how will the inventory items be controlled?
  3. How much inventory should be ordered at one time, and what is the importance of the inventory item?

  4. When will the order be placed, and how will the inventory items be controlled?

Answer(s): C



A retailer that operates a three-level distribution network is considering eliminating one level in the network and shipping directly from the regional warehouses to the retail outlets.
Which of the following outcomes is most likely to result?

  1. Total transportation costs will decrease.
  2. Retail outlet order frequency will decrease.
  3. Deliveries to the retail outlets will decrease in number.
  4. Risk pooling benefits will decrease.

Answer(s): A



When a company operates in a vendor-managed inventory (VMI) environment, the cash-to-cash cycle time for the buying firm begins when it:

  1. receives a fulfillment order.
  2. places a replenishment order.
  3. processes payment for a replenishment order.
  4. begins a production order.

Answer(s): B



Which of the following items typically is substituted for inventory to improve supply chain performance?

  1. Cash
  2. People
  3. Information
  4. Customer service

Answer(s): C



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