APICS Updated CSCP Exam Questions and Answers by amora

According to the APICS Supply Chain Operations Reference Model SCOR1, an automated guided vehicle system (AGVS) is a type of rider less material handling system that can be characterized by movement along the floor using optical, magnetic, or wireless control. AGVSs are used to transport materials within a facility or between facilities without human intervention.

The in-stock rate is a key performance indicator used to measure the effectiveness of a vendor-managed inventory (VMI) program. Here’s a detailed explanation:

• In-Stock Rate Definition: The in-stock rate is the percentage of time that a product is available in inventory and ready for sale or use. It indicates the ability of the inventory management system to meet customer demand without stockouts.
• Importance in VMI:
• Effectiveness Measurement:
• Performance Tracking:

References

• Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies.
• Stevenson, W. J. (2018). Operations Management.

When a company relocates production to a lower-wage country, fluctuations in currency exchange rates can significantly impact profitability without affecting the product's landed costs. Exchange rate volatility can lead to unexpected increases in costs when converting foreign earnings back to the home currency or when paying for imported materials and services in a foreign currency. This can erode the cost advantages gained from lower wages. In contrast, changes in labor costs, commodity prices, and product quality typically affect the direct costs and product landed costs.

References:

• Christopher, M. (2016). Logistics & Supply Chain Management. Pearson.
• Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

Strategic purchases are best suited for single sourcing with a preferred supplier to reduce supply chain risk. These purchases are critical to a company's operations and often involve complex and high-value items. By single sourcing with a preferred supplier, a company can establish a strong, collaborative relationship, ensuring quality, reliability, and continuity of supply, while also potentially benefiting from supplier innovation and cost efficiencies.

• Routine (B) purchases are low value and low risk, often sourced from multiple suppliers.
• Bottleneck (C) items have a high supply risk but are not necessarily strategic; they might require multiple sources or contingency planning.
• Leverage (D) items have significant purchasing power and are typically sourced from multiple suppliers to optimize costs.

References

• Kraljic, P. (1983). Purchasing must become supply management. Harvard Business Review.
• Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management. Cengage Learning.