Apics Exam Questions
Question Number: 1 BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts
The basic elements of the supply chain include:
A) supply, manufacture, distribution.
B) design, manufacture, inventory.
C) engineer, design, manufacture.
D) supply, engineer, manufacture.
The correct answer is: A
Even though different companies produce different products, the basic elements are the same: supply, manufacture, and distribution.
(Arnold, Introduction to Materials Management, Chapter 1).
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Question Number: 2
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts
In order to maximize profit, a company must have all of the following objectives except:
A) Best customer service
B) Most accurate production forecast
C) Lowest inventory investment
D) Lowest distribution cost
The correct answer is: B
A company, to maximize profits, must have the lowest production cost, best customer service, lowest inventory investment, and lowest distribution costs. While an accurate production forecast will contribute to low production costs, it will not guarantee the Lowest production costs.
(Arnold, Introduction to Materials Management, Chapter 1).
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Question Number: 3
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts
The inventory turns ratio measures:
A) the amount of inventory needed to support sales growth.
B) obsolete inventory as a percent of sales.
C) how effectively inventory is being used.
D) the amount of space needed to store inventory.
The correct answer is: C
The inventory turns ratio measures how effectively inventories are being used. It is calculated by dividing annual cost of goods sold by average inventory in dollars.
(Arnold, Introduction to Materials Management, Chapter 1).
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Question Number: 4
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts
Process specifications can be best defined as a document which:
A) shows how the product will appear.
B) shows the steps needed to
The basic elements of the supply chain include:
A) supply, manufacture, distribution.
B) design, manufacture, inventory.
C) engineer, design, manufacture.
D) supply, engineer, manufacture.
The correct answer is: A
Even though different companies produce different products, the basic elements are the same: supply, manufacture, and distribution.
(Arnold, Introduction to Materials Management, Chapter 1).
[pic]
Question Number: 2
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts
In order to maximize profit, a company must have all of the following objectives except:
A) Best customer service
B) Most accurate production forecast
C) Lowest inventory investment
D) Lowest distribution cost
The correct answer is: B
A company, to maximize profits, must have the lowest production cost, best customer service, lowest inventory investment, and lowest distribution costs. While an accurate production forecast will contribute to low production costs, it will not guarantee the Lowest production costs.
(Arnold, Introduction to Materials Management, Chapter 1).
[pic]
Question Number: 3
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts
The inventory turns ratio measures:
A) the amount of inventory needed to support sales growth.
B) obsolete inventory as a percent of sales.
C) how effectively inventory is being used.
D) the amount of space needed to store inventory.
The correct answer is: C
The inventory turns ratio measures how effectively inventories are being used. It is calculated by dividing annual cost of goods sold by average inventory in dollars.
(Arnold, Introduction to Materials Management, Chapter 1).
[pic]
Question Number: 4
BASICS OF SUPPLY CHAIN MGMT (BSCM) :Businesswide Concepts
Process specifications can be best defined as a document which:
A) shows how the product will appear.
B) shows the steps needed to