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APICS Certified Supply Chain Professional Questions 564–572 (page: 57)

Updated On: 1-Feb-2026

The most important reason to capture point-of-sale (POS) information in retail stores for products with a short life cycle is to:

  1. increase visibility within the supply chain.
  2. increase the accuracy of inventory control.
  3. facilitate transshipments between retailers.
  4. enable the use of optimization tools.

Answer(s): B



When developing a supply chain strategy, a manager must choose between efficiency and:

  1. return on investment (ROI).
  2. corporate strategy.
  3. flexibility.
  4. low cost.

Answer(s): A



A manufacturing company which produces in anticipation of future orders and sells its products directly to consumers experiences an unexpected large reduction in consumer demand. This is most likely to increase which type of inventory?

  1. Work-in-process (WIP) inventory
  2. Finished goods inventory
  3. Raw material inventory
  4. In-transit inventory

Answer(s): B



Which of the following techniques typically is most effective for controlling variability of demand in a supply chain?

  1. Holding consignment inventory at a customer's location
  2. Holding additional stock at the distributor
  3. Closer monitoring of product promotions at the retailer
  4. Centralizing demand information

Answer(s): C



A manufacturer offers a trade-in allowance on a new machine when a customer returns an old machine. The manufacturer reconditions the returned machine locally and then sells it on the used market for a profit. This program focuses on:

  1. environmentally sensitive engineering.
  2. design for manufacturing.
  3. green manufacturing.
  4. sustainability in operations.

Answer(s): D



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