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APICS Certified Supply Chain Professional Questions 708–713 (page: 49)

Updated On: 1-Feb-2026

A company consumes 50 units daily, has a 10-day replenishment lead time, and maintains 10 units in safety stock. The company should order additional units when inventory reaches:

  1. 50 units.
  2. 150 units
  3. 490 units.
  4. 510 units.

Answer(s): D



Which of the following reasons supports dividing component purchases among numerous suppliers instead of utilizing a single supplier for multiple components?

  1. Different suppliers enable averaging overall purchase pricing, allowing for more accurate product costing.
  2. Different suppliers tend to protect any one supplier from access to overall design intellectual property.
  3. Fewer supplier product requirements allow each supplier to focus major efforts on required product quality.
  4. Each supplier will be more responsive as they attempt to be recognized and approved for additional purchasing.

Answer(s): A



An organization wants to ensure that no conflict minerals are purchased, either directly or through a supplier.
Which of the following strategies should be implemented?

  1. Adopt ISO 26000.
  2. Re-engineer the product to substitute other materials.
  3. Establish traceability to the mines or smelters providing the minerals.
  4. Certify all suppliers in ISO 14000 standards.

Answer(s): C



When negotiating with a supplier for strategic components that have high demand variability, which of the following types of contracts would be the best for the buyer to minimize stockouts and unused inventory?

  1. Revenue sharing
  2. Buy-back
  3. Sales rebate
  4. Firm-fixed price

Answer(s): D



Which of the following attributes is directly related to supplier satisfaction?

  1. Demographic of the customer
  2. Fixed lead time
  3. Customer performance and behavior
  4. Size of the sales contract

Answer(s): C



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