APICS CSCP Exam Actual Questions

A company that aims to be environmentally responsible would focus on making its supply chain more efficient to reduce environmental impact.

Resource Efficiency: Increasing process efficiency means using resources more effectively, which reduces waste and energy consumption.

Sustainable Practices: Implementing sustainable practices such as optimizing production processes, reducing emissions, and minimizing waste contributes to environmental responsibility.

Cost Reduction: Efficient processes also lead to cost savings, which can be reinvested in further sustainability initiatives.

Increasing process efficiency aligns with the goal of environmental responsibility by reducing the overall environmental footprint of the supply chain.

Srivastava, Samir K. 'Green supply-chain management: A state-of-the-art literature review.' International Journal of Management Reviews.

Sarkis, Joseph. 'A Strategic Decision Framework for Green Supply Chain Management.' Journal of Cleaner Production.

Purchasing services presents unique challenges compared to purchasing tangible goods. One of the primary difficulties is measuring the quality of services provided. Unlike physical products, services are often intangible and can vary significantly based on the provider's performance, making it challenging to establish objective quality metrics. This subjectivity in service delivery requires robust monitoring and feedback mechanisms to ensure that the services meet the required standards consistently.

Ellram, L. M., Tate, W. L., & Billington, C. (2007). Services supply management: The next frontier for improved organizational performance. California Management Review, 49(4), 44-66.

van der Valk, W., & Rozemeijer, F. (2009). Buying business services: towards a structured service purchasing process. Journal of Services Marketing, 23(1), 3-10.

To find the total cost of supplying the items to the Chicago market from each location, we need to multiply the demand (100,000 items) by the sum of the material and labor cost per item, the shipment cost to market per item, and the import duty per item. The shipment cost to market per item can be obtained by dividing the shipment cost to market per 100 lb. by 100, since each item weighs 1 lb. The raw material shipment from source cost is irrelevant for this question, since it does not affect the total cost to supply the items to the Chicago market. Using this formula, we can calculate the total cost for each location as follows:

Houston: 100,000 x ($7 + $5/100 + $0) = $712,000

Taiwan: 100,000 x ($6 + $6/100 + $2) = $814,000

Chicago: 100,000 x ($10 + $0/100 + $0) = $1,000,000

Seattle: 100,000 x ($12 + $5/100 + $0) = $1,205,000

The location with the lowest total cost is Chicago, with $1,000,000. Therefore, the items should be produced in Chicago to minimize the total cost to supply the items to the Chicago market.

The ultimate goal of a supply contract is to achieve a win-win outcome for both the buyer and the supplier, where they share the risk and increase the profits of their business relationship12. A supply contract can help achieve this goal by establishing clear and fair terms and conditions that align the incentives, expectations, and responsibilities of both parties34. A supply contract can also help foster trust, collaboration, and innovation between the buyer and the supplier, which can enhance their competitive advantage and customer satisfaction .

For a product that requires high quality but is not critical or high-value, the targeted supplier qualification level should be 'Certified.' Certified suppliers have demonstrated their ability to consistently meet quality standards and performance criteria, making them reliable sources for high-quality products. While 'Approved' and 'Preferred' suppliers may meet basic requirements, 'Certified' suppliers have typically undergone more rigorous evaluation processes, ensuring a higher level of quality assurance.

Leenders, M. R., Johnson, P. F., Flynn, A., & Fearon, H. E. (2006). Purchasing and Supply Management. McGraw-Hill.

Trent, R. J. (2005). End-to-End Lean Management: A Guide to Complete Supply Chain Improvement. J. Ross Publishing.