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Which of the following capabilities is most important for an organization undertaking digital supply chain transformation to reduce its reaction time for responding to changing demand?

  1. Knowledge of artificial intelligence (AI), machine learning, and data analysis
  2. Use of a data-driven collaborative approach for process optimization
  3. Application of predictive analytics to drive decisions
  4. Ability to establish a robust data management structure

Answer(s): B

Explanation:

According to the ASCM CTSC Exam Content Manual, a data-driven collaborative approach is one of the key enablers of digital supply chain transformation. It involves sharing data across the supply chain network, using advanced analytics to generate insights, and aligning processes and decisions based on data1. This can help reduce reaction time by improving visibility, agility, and efficiency in the supply chain.



Which of the following formulas correctly calculates the days of supply for raw materials?

  1. Value of raw materials / (Cost of goods sold / 365)
  2. Cost of goods sold / (Value of raw materials / 365)
  3. Value of raw materials / (Average raw material inventory / 365)
  4. Average raw material inventory / (Value of raw materials / 365)

Answer(s): A

Explanation:

According to the ASCM CTSC Exam Content Manual, the formula for raw material inventory days of supply is the value of raw materials inventory divided by the "value of transfers divided by 365 days"
1. The value of transfers is the same as the cost of goods sold, which is the total cost of producing and delivering the prod-ucts to the customers 2. Therefore, the formula can be simplified as the value of raw materials divided by the cost of goods sold per day, which is the same as option A. The other options are incorrect because they either use the wrong numerator or denominator, or invert the ratio.
1: 1 2: 2



Which of the following options is the proper action to define prerequisites for a supply chain transformation roadmap?

  1. Standardize and harmonize processes across the enterprise.
  2. Perform a detailed review to understand the forecast error.
  3. Use tiered metrics to understand cause and effect.
  4. Create progress visibility to all teams throughout the enterprise.

Answer(s): A

Explanation:

According to the ASCM CTSC Exam Content Manual, one of the prerequisites for a supply chain transformation roadmap is to standardize and harmonize processes across the enterprise1. This can help to eliminate waste, reduce complexity, improve efficiency, and enable scalability of the supply chain opera-tions2. The other options are not prerequisites, but rather outcomes or enablers of a supply chain transformation roadmap.1: ASCM CTSC Exam Content Manual, page 10. 2: 1



A consumer electronics manufacturer has undertaken a transformation of its supply network design. In order to increase customer service, they acquired more dedicated space on a cargo airline to reduce its use of ocean transport. The manufacturer is expecting which metric shifts due to this change?

  1. Expected transportation costs to increase and expedited delivery upgrade costs to decrease
  2. Expected transportation costs to increase and expedited delivery upgrade costs to increase
  3. Expected transportation costs to increase and network path touches to increase
  4. Expected transportation costs to increase and demand volume growth to decrease

Answer(s): A

Explanation:

air transport is generally more expensive than ocean transport, but also faster and more reliable1. Therefore, by acquiring more dedicated space on a cargo airline, the manufacturer can expect its transportation costs to increase, but also reduce its need for expedited delivery upgrades, which are usually costly and inefficient2. The other options are not likely to occur, as air transport does not necessarily increase the network path touches or decrease the demand volume growth.
1: 2 2: 3






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