APICS cpim-bsp practice test

Which of the following terms represents a complete supply chain dedicated to the flow of products
and materials for the purpose of returns, repair, remanufacture, or recycling?

• A. Responsible landfill
• B. Remanufacturing resource planning
• C. Reverse logistics
• D. Global distribution

Which of the following processes is concerned with the change of ownership of goods and services?

• A. Distribution channel
• B. Supply chain
• C. Transaction channel
• D. Value chain

Which of the following processes is concerned with the transfer or delivery of goods or services?

• A. Distribution channel
• B. Supply chain
• C. Transaction channel
• D. Value chain

Which of the following actions is an example of a company expanding its customer service offering?

• A. Adding a distribution center
• B. Increasing work-in-process (WIP) inventory
• C. Implementing statistical process control (SPC)
• D. Decreasing manufacturing lot sizes

Which of the following activities positions goods or services closer to the customer?

• A. Distribution
• B. Manufacturing
• C. Materials handling
• D. Transportation

To provide the required level of customer service, to minimize the costs of transportation and
handling, and to interact with a factory to minimize scheduling problems are all objectives of:

• A. enterprise resources planning.
• B. distribution inventory management.
• C. sales and operations planning.
• D. customer relations management.

Typically the highest cost for warehousing is the cost related to:

• A. space.
• B. labor.
• C. equipment for materials handling.
• D. the information system.

Which of the following typically would be the most economical mode of transportation for crude oil
to an oil refinery?

• A. Water
• B. Pipeline
• C. Truck
• D. Rail

Which of the following factors would reduce inventory carrying costs?

• A. Ordering less inventory
• B. Higher costs of working capital
• C. Reducing ordering costs
• D. Reducing transportation costs

Consignment stock is typically owned by:

• A. a supplier until consumed.
• B. the company who will consume the stock.
• C. a joint trust set up for this purpose.
• D. the carrier who transports the stock.

Which of the following differences must be taken into consideration when dealing with a global
distribution system?

• A. Culture
• B. Cost
• C. Carriers
• D. Computer systems

Companies typically make final purchasing decisions based on which of the following supplier
characteristics?

• A. Reverse logistics
• B. Personal relationships
• C. Delivery reliability
• D. Market share

The final purchasing steps in order completion are:

• A. receipt of goods and approval of invoice.
• B. selecting suppliers and receipt of goods.
• C. requesting quotations and approval of invoice.
• D. selecting suppliers, follow-up, and delivery.

An appropriate reason to carry safety stock is to protect against:

• A. demand fluctuations before the order point is reached.
• B. demand fluctuations after the order point is reached.
• C. price fluctuations before the order point is reached.
• D. price fluctuations after the order point is reached.

Increasing sales through the Internet will result in an increased demand for reverse:

• A. auctions.
• B. engineering.
• C. flow scheduling.
• D. logistics.