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APICS Certified Supply Chain Professional Questions 644–648 (page: 45)

Updated On: 1-Feb-2026

The first step in developing a product differentiation strategy is to:

  1. study customer needs.
  2. define customer segments.
  3. determine design modifications.
  4. establish competitive priorities.

Answer(s): B



In supply chain management, a virtual organization is characterized primarily by:

  1. use of collaborative process teams from across the supply chain.
  2. use of the internet to exchange data.
  3. maintenance of individual profit centers.
  4. empowered decision making at lower levels in the organization.

Answer(s): D



Using which of the following elements, in addition to purchase price, describes the use of the total cost of ownership (TCO) model to make procurement decisions?

  1. Life cycle costs
  2. Transportation costs
  3. Quantity discounts
  4. Economic order quantity (EOQ)

Answer(s): A



A retailer moving to a demand-driven supply network is most likely to implement point of sale (POS) to achieve:

  1. lower total supply chain costs by leveling the supply plan.
  2. shorter queues when customers pay for purchases.
  3. profit optimization through better promotion timing.
  4. faster response times to actual customer demand.

Answer(s): D



A company returned several shipments of contaminated raw material.
Which risk classification best describes this event?

  1. Supply
  2. Product liability
  3. Business continuity
  4. Environmental

Answer(s): B



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