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APICS Certified Supply Chain Professional Sample Questions (Q360-Q365):

NEW QUESTION # 360
A company is transitioning its fulfillment strategy from direct consumer shipment to shipping through an intermediary. Which of the following impacts can be expected?

A. Lower transportation costs
B. Lower warehousing costs
C. Higher transportation costs
D. Higher warehousing costs

Answer: A

Explanation:
Transitioning from direct consumer shipment to shipping through an intermediary can lead to changes in both transportation and warehousing costs. The key expected impact is lower transportation costs due to the following reasons:
* Consolidation of Shipments: Shipping through an intermediary allows for the consolidation of multiple small shipments into larger ones, which can reduce per-unit transportation costs.
* Economies of Scale: Intermediaries often have better-negotiated rates with carriers due to higher shipping volumes.
* Optimized Routes: Intermediaries can optimize shipping routes and schedules, further reducing transportation expenses.
:
"Logistics and Supply Chain Management" by Martin Christopher
Council of Supply Chain Management Professionals (CSCMP) resources

NEW QUESTION # 361
When multiple warehouses are combined into one centralized warehouse, the requirement for safety stock is reduced because:

A. the total variability of demand is reduced.
B. safety stock becomes available-to-promise.
C. average cycle stock is reduced.
D. there is less in-transit inventory.

Answer: A

Explanation:
Section: Implementation and Operations

NEW QUESTION # 362
A large wholesaler formerly owned a number of delivery trucks. The wholesaler sold all of its trucks and now purchases transportation services from fleet operators. This is an example of which of the following strategies?

A. Using a third-party logistics provider.
B. Using an owner-operator fleet.
C. Renting equipment on consignment.
D. Selling and leasing back equipment.

Answer: A

Explanation:
* Context: The large wholesaler owned delivery trucks but sold them and now purchases transportation services from fleet operators.
* Options Breakdown:
* A. Selling and leasing back equipment: This would involve selling the trucks and then leasing them back, which is not the case here.
* B. Renting equipment on consignment: Consignment refers to goods being held by one party while owned by another, which does not apply to the trucks being sold outright.
* C. Using a third-party logistics provider: This involves outsourcing logistics functions, such as transportation, to an external company.
* D. Using an owner-operator fleet: This would imply using independent drivers who own their trucks, which is not specifically indicated.
* Correct Answer Justification: The wholesaler is outsourcing its transportation needs to fleet operators, which is the definition of using a third-party logistics provider (3PL).
:
Logistics and Supply Chain Management textbooks
Industry best practices and terminologies for third-party logistics providers (3PLs)

NEW QUESTION # 363
Which two of the following factors are most important when considering whether to partner with a supplier?

A. Concurrent engineering and vendor scheduling
B. Shared visions and trust
C. Just-in-time (JIT) delivery and quality
D. Integration and communication

Answer: D

NEW QUESTION # 364
The primary reason to establish a customer-dedicated warehouse is to:

A. equalize inbound and outbound logistics costs.
B. position inventory to improve response time.
C. balance inventory with consumption.
D. integrate and consolidate an assortment of inventory.

Answer: B

Explanation:
The primary reason to establish a customer-dedicated warehouse is to position inventory to improve response time because:
* Proximity to Customers: A customer-dedicated warehouse is typically located closer to the key customers, reducing the lead time for deliveries and improving the overall response time.
* Enhanced Service Levels: By having inventory strategically positioned near customers, companies can offer higher service levels through quicker order fulfillment and faster delivery times.
* Customization: Such warehouses can be tailored to specific customer needs, holding customized inventory that caters to the unique demands of those customers.
* Competitive Advantage: Faster response times and better service can provide a competitive advantage, leading to increased customer satisfaction and retention.
Integrating and consolidating inventory (Option A), balancing inventory with consumption (Option C), and equalizing logistics costs (Option D) are important but secondary benefits. The primary driver is the improvement in response time to meet customer demands more effectively.
References
* "Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies" by David Simchi-Levi, Philip Kaminsky, and Edith Simchi-Levi.
* "The Warehouse Management Handbook" by James A. Tompkins and Jerry D. Smith.

NEW QUESTION # 365
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