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APICS Certified Supply Chain Professional Questions 619–627 (page: 68)

Updated On: 1-Feb-2026

Which of the following product design strategies is most likely to result in reduced costs due to greater economies of scale?

  1. Modularization
  2. Simplification
  3. Specialization
  4. Standardization

Answer(s): D



Which of the following actions is key to improving forecast accuracy?

  1. Using a tracking signal
  2. Reducing cumulative product lead time
  3. Changing from a time series forecasting method to a causal forecasting method
  4. Changing from forecasting at the product family level to the stock keeping unit (SKU) level

Answer(s): C



The ultimate goal of a supply contract is to achieve which of the following outcomes?

  1. Minimize the risk of stockouts for the buyer.
  2. Reduce the risk of excess inventory for the supplier.
  3. Share risk and increase profits for both entities.
  4. Decrease quality issues and product returns.

Answer(s): C



The make-or-buy decision typically would include considerations about:

  1. feasibility of vendor-managed inventory (VMI).
  2. legal consequences of consignment.
  3. total ownership costs.
  4. cross-docking capabilities at supplier sites.

Answer(s): C



Companies with manufacturing facilities in one country are more cost-competitive in exporting goods to world markets when:

  1. the local currency is strong.
  2. the local currency is weak.
  3. the local currency is stable.
  4. the local currency is pegged to the target market.

Answer(s): D



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