APICS Updated CSCP Exam Questions and Answers by louisa

Shipping full truckload (FTL) quantities rather than less-than-truckload (LTL) quantities typically leads to higher production efficiencies. FTL shipments reduce the complexity and frequency of transportation logistics, allowing for more streamlined and larger production runs. This efficiency reduces the time and resources spent on frequent shipping arrangements and handling multiple smaller loads. Additionally, FTL can lower transportation costs per unit and improve overall operational efficiency.References:

• "Logistics and Transportation: Design and Planning" by Raja G. Kasilingam
• "Transportation: A Global Supply Chain Perspective" by Robert C. Lieb and John J. Coyle

The globalization of a supply chain typically increases uncertainty and production lead time. When a supply chain becomes global, it involves longer distances, multiple transportation modes, and more complex logistics operations, all of which contribute to longer lead times. Additionally, global supply chains face uncertainties such as customs delays, geopolitical issues, variability in supplier performance, and risks of natural disasters, which further exacerbate production lead times.

• Local competition might increase due to globalization, but it is not directly related to the uncertainties in the supply chain.
• Documentation complexity increases with globalization but is a part of the logistical complexities rather than the core uncertainty affecting production lead times.
• Product standardization is not a consequence of increased uncertainty but rather a strategy used to manage complexity.

References:

• Christopher, M. (2011). "Logistics & Supply Chain Management."
• Chopra, S., & Meindl, P. (2016). "Supply Chain Management: Strategy, Planning, and Operation."

Customizing can be an effective warehousing strategy because it allows a company to add value to the product through modification, labeling, and packaging. By customizing products closer to the point of delivery, companies can better meet specific customer requirements, reduce lead times, and improve overall customer satisfaction. This strategy also enables companies to respond quickly to market changes and reduce inventory holding costs.

• Allocating available storage space to optimize handling costs is important but is not the primary reason for customizing.
• Addressing trade-offs between space and material handling needs is part of warehouse management but does not highlight the value-adding aspect of customization.
• Effectively designing its inbound and outbound dock areas improves efficiency but does not directly involve customization.

References:

• Frazelle, E. (2002). "World-Class Warehousing and Material Handling."
• Richards, G. (2017). "Warehouse Management: A Complete Guide to Improving Efficiency and Minimizing Costs in the Modern Warehouse."

When sourcing globally, the most important challenge is balancing the difference between piece price and total cost. The piece price is the direct cost of purchasing the material, while the total cost includes all associated costs such as transportation, tariffs, warehousing, lead times, and risk of supply chain disruptions. Focusing solely on the piece price can lead to underestimating the actual cost implications of global sourcing, thus impacting the overall profitability and efficiency of the supply chain.

• Identification of sources capable of producing the materials is important but not the primary challenge.
• Availability of low-cost labor and energy is a factor but does not address the comprehensive cost considerations.
• Complying with specific import/export issues is a regulatory challenge but is part of the total cost consideration.

References:

• Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). "Purchasing and Supply Chain Management."
• Christopher, M. (2011). "Logistics & Supply Chain Management."