EXAM CONTENT

MANUAL
VERSION 4.0
 APICS CSCP
Exam Content Manual
Version 4.0
Visit apics.org/ecmerrata for APICS CSCP Exam Content Manual errata.

The references in this manual have been selected solely on the basis of their educational value to
the APICS CSCP certification program and on the content of the material. APICS does not endorse
any services or other materials that may be offered or recommended by the authors or publishers of
books and publications listed in this manual.

2016 APICS

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No portion of this document may be reproduced under any circumstances. CSCP is a registered
trademark of APICS.

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Table of Contents
Letter to Candidates ................................................................................................................ 1
Introduction .............................................................................................................................. 2
About the APICS CSCP Examination ....................................................................................... 2
Question Format ............................................................................................................................... 2
Taking the Test .................................................................................................................................. 3
Interpreting Test Scores ................................................................................................................... 3
Studying for the APICS CSCP Exam......................................................................................... 3
APICS CSCP References ................................................................................................................... 4
Terminology ....................................................................................................................................... 4
Additional Resources for APICS CSCP Candidates ................................................................ 4
APICS CSCP Learning System .......................................................................................................... 4
APICS CSCP Instructor-Led Review Courses ................................................................................... 5
APICS Educational Programs............................................................................................................ 5
APICS Certified in Production and Inventory Management (CPIM) Basics of Supply Chain
Management (BSCM) Review Course and Examination ................................................................. 5
APICS CSCP Certification Maintenance: Continuing Professional Development................. 5
The Importance of Certification Maintenance ................................................................................ 5
APICS Code of Ethics ............................................................................................................... 6
APICS Certified Supply Chain Professional (CSCP) ................................................................ 7
Scope of the Subject Matter............................................................................................................. 7
APICS CSCP Content ........................................................................................................................ 8
Content Outline ................................................................................................................................. 8
Key Terminology .............................................................................................................................. 14
Supplemental Glossary .................................................................................................................. 16
Bibliography ..................................................................................................................................... 20
Sample Questions .................................................................................................................. 21
Answers to Sample Questions .............................................................................................. 23

CSCP Exam Content Manual i

 This APICS CSCP Exam Content Manual
Letter to Candidates provides you with an overview of the program,
an outline of its body of knowledge, key
Dear Candidate:
terminology, and references. The outline is
divided into three diagnostic areas, and the
On behalf of APICS and the members of the
relative emphasis of each of the areas is
Certified Supply Chain Professional (CSCP)
indicated by a percentage figure. A sample of
Subcommittee, I want to thank you for your
ten questions is also provided which
interest in the APICS CSCP program. APICS is
demonstrate the type of questions you will
the global leader and premier source of the
encounter on the exam. The APICS CSCP Exam
body of knowledge in operations management,
Content Manual should not be the only
including production, inventory, supply chain,
reference you use to prepare for the CSCP
purchasing, and logistics. Since 1957,
exam; however, it should be the first.
individuals and companies have relied on
APICS for its superior training, internationally
We wish you success in your pursuit of the
recognized certifications, comprehensive
CSCP designation.
resources, and worldwide network of
accomplished industry professionals.

The APICS CSCP program is primarily intended

for professionals in supply chain management
Ann K. Gatewood, CFPIM, CIRM, CSCP
and is designed to test the candidates
CSCP Subcommittee Chair
knowledge of and ability to apply the supply
chain management body of knowledge to
streamline operations. It is the most widely
recognized educational program for operations
and supply chain management professionals
around the globe. Since its launch in 2006,
more than 16,000 professionals in 79
countries have earned the CSCP designation.
By earning the APICS CSCP credential,
candidates have demonstrated their mastery
of supply chain management best practices
and have distinguished themselves as an
industry expert with specialized, high-level
knowledge and skills.

The APICS CSCP program will help you advance

your career while giving you validated
foundational knowledge to assist in improving
your companys competitive position and
profitability. The program takes a broad view of
the field, extending beyond internal operations
to encompass all the steps throughout the
supply chainfrom the supplier, to the
company, to the end consumer and the reverse
flow of products and materials for the purpose
of managing returns, refurbishing, or recycling.
The program provides you with the knowledge
to effectively manage the integration of these
activities to maximize a companys value chain.

CSCP Exam Content Manual 1

Introduction
This exam content manual provides guidance
for individuals preparing for the certification
examination. The objective of this manual is to
outline the APICS CSCP tested body of
knowledge.
The main section of this manual begins with a
statement about the scope of the subject
matter, followed by a descriptive outline of the
content. Key terminology and a bibliography of
references are provided. The section
concludes with sample questions similar to
those that appear on the examination, the
correct answers for the sample questions, and
brief explanations of why they are correct.
The recommended procedure for mastering
the subject matter is to:
review the content outline, which
defines the scope of the material
study each topic, using the suggested
references.
At the end of each major section is a list of the
references that apply to the topics in that
section. The first number indicates the
sequence number for the reference in the
bibliography section, and the numbers in
parentheses indicate the chapters within that
reference.
Candidates should understand the definitions
of key terminology and the application of the
outlined tools and techniques.
Sufficient references are given that provide
different approaches to the material covered
in each diagnostic area and different styles of
presenting the information. Reading
periodicals, such as APICS magazine and the
APICS Supply Chain Management Now
e-newsletter, will help you keep up-to-date
about changes in the industry.
2 APICS
About the APICS CSCP
Examination
The APICS CSCP exam consists of 150
multiple-choice questions of which 20 are pre-
test questions that do not contribute to the
total score, but are necessary for research
purposes. Candidates should answer all exam
questions. There is a 3 -hour time limit for
the exam.
For more information about testing and
registration policies and procedures, call
APICS Customer Service at 1-800-444-2742
(United States and Canada) or
+1-773-867-1777.
Students who successfully complete the CSCP
examination may be eligible to receive up to
three semester hours of either undergraduate
or graduate college credit recommendations
from the New York State Regents Research
Fund, National College Credit
Recommendation Service, based on an
academic evaluation of student learning
outcomes. Detailed information about the
outcomes and credit recommendations is
available at nationalccrs.org. Transcripts are
available through APICS.
Question Format
All of the questions on the CSCP examination
are intended to test one's understanding of
the CSCP body of knowledge. In addition, it is
helpful to understand the various formats of
questions on the examination. The following
three examples illustrate the types of multiple
choice questions found on the examination:
For Example 1, choose the response that best
completes the statement.
Example 1: The 80-20 rule is an
application of:
A. statistical process control
B. defect measurement
C. root cause analysis
D. Pareto analysis
(The correct answer is D.)
For Example 2, choose the response that best
answers the question.
Example 2: Which of the following is used
as a key performance indicator (KPI) to
measure variability of demand through the
supply chain?
A. bullwhip effect
B. fill rate
C. inventory turns
D. internal failure
(The correct answer is A.)
For Example 3, evaluate the statements and
provide the most appropriate response. The
answer is not one persons opinion; it is the
accepted choice according to the APICS body
of knowledge.
Example 3: The most significant
advantage of strategic sourcing is:
A. finding suppliers who can provide
materials at lowest cost.
B. using technology to select low-cost,
high-quality sources of materials.
C. developing long-term supplier
relationships.
D. having a process for recurring
transactions with single suppliers.
(The correct answer is C.)
Taking the Test
The test is designed to evaluate a candidates
knowledge of the subject matter. Therefore,
the key to success is a thorough
understanding of the subject matter. All
questions are based on the current CSCP body
of knowledge as defined in the exam content
manual.
When you start your exam, read the directions
carefully. Be sure you understand the
directions before you begin to answer any
questions.
Read each question carefully and thoroughly.
If a question includes stimulus material such
as a table, graph, or situation, be sure to study
it before you answer the question. Avoid
assuming information not given, as well as
assuming you know what is being asked
without reading the question completely, or
second guessing the question. Every effort
has been made to avoid misleading wording
and to provide sufficient information for each
question.
Choose the best answer from the choices
given. Care has been taken to avoid
misleading choices. Do not look for hidden
tricks or exceptions to the norm. For each
question, one and only one of the four choices
represents the correct answer.
Once you begin the test, approach the
questions in order, but do not waste time on
those that are unfamiliar or seem difficult to
you. Go on to the other questions and return
to the difficult ones later if you have time. If
you have some knowledge about a particular
question, you may be able to eliminate one or
more choices as incorrect. Your score on the
test will be based on the number of questions
you answer correctly, with no penalty for
incorrect answers; therefore, it is to your
advantage to guess rather than not answer a
question. Avoid changing an answer unless
you are absolutely certain you marked the
wrong answer.
Interpreting Test Scores
Scoring is based on your correct responses.
There is no penalty for incorrect answers. The
omission of an answer will be counted the
same as an incorrect answer.
The APICS CSCP scaled score range is 200
350. The minimum passing score is 300.
You will receive your final exam score along
with diagnostic information on your
performance.
Studying for the APICS CSCP
Exam
APICS offers a number of resources to help
individuals prepare for the APICS CSCP
examination.
CSCP Exam Content Manual 3
APICS CSCP References
Bibliography. The APICS CSCP Examination
Subcommittee has identified a number of
references for the APICS CSCP examination.
These are listed in the Bibliography section of
this manual. All the references contain
excellent material that will assist in test
preparation. For additional information on
the APICS CSCP references, visit the APICS
website at apics.org/cscp, or call APICS
Customer Service at 1-800-444-2742 (United
States and Canada) or +1-773-867-1777.
A candidate may discover that the material
covered in the chapters of one reference
duplicates material covered in another
reference. Both sources are included as
references to allow candidates some
discretion in selecting test preparation
materials that they find accessible and
understandable.
In deciding if a single reference is sufficient,
candidates should assess their own level of
knowledge against both the descriptive
examination specifications and the detailed
topic list contained in the content outline. If
there are any areas of weakness, the
candidate should consult another reference
as part of the test preparation process.
Content outline. The content outline provided
in this document should be considered a
primary resource for exam preparation. It
provides an overview of the major topics
included in the exam, as well as a list of the
concepts that are relevant to that topic.
APICS Dictionary. The APICS Dictionary, 14th
edition, is an essential reference to the exam
content manual and exams. Within the
profession, terminology varies among
industries, companies, and the academic
community. The examination uses standard
terminology as defined in the APICS Dictionary
and the Supplemental Glossary section in this
manual. Recognizing the terms and
understanding their definitions are essential.
4 APICS
Terminology
In studying for the APICS CSCP certification
exam, candidates may discover multiple terms
used to denote the same technique. An
example of this is lateral integration versus
horizontal integration. APICS has attempted to
provide consistency with preferred
terminology. However, synonyms are often
used by authors in the various references
used to compile the body of knowledge.
Candidates are encouraged to be familiar with
all terms and concepts listed within the
outline and key terminology section, using the
APICS Dictionary as the primary guide for
definitions. The Supplemental Glossary,
included in this manual, provides needed
additional information identified by the exam
committee.
Additional Resources for
APICS CSCP Candidates
In addition to the cited references, it may be
helpful for you to pursue chapter-sponsored
courses, college courses, APICS workshops,
self-study courses, or courses offered by the
APICS network of authorized education
providers (AEPs) as a means of learning the
body of knowledge tested in the certification
program. A wide variety of courses and
materials is available. As with any investment,
you should research various courses before
choosing one.
APICS CSCP Learning System
The APICS CSCP Learning System is a
comprehensive professional development and
certification preparation program. This self-
directed program combines print material and
online interactive tools. This system is also
offered in instructor-led formats.
The APICS CSCP Learning System does not
teach the test and in many areas reviews
concepts but does not teach concepts. The
APICS CSCP Learning System provides a
thorough review of the subject matter, but it
should not be used without the most current
APICS CSCP Exam Content Manual as a
means to direct the candidates study. There
will likely be some content in the APICS CSCP
Learning System not covered by the exam;
conversely, there will likely be some content in
the exam not covered by the learning system.
Thus, it is essential for candidates to use the
current exam content manual in their studies.
APICS CSCP Instructor-Led Review
Courses
The instructor-led format combines the APICS
CSCP Learning System print and online
components with the leadership of a qualified
instructor; peer collaboration; company
networking; and a structured, set schedule to
keep participants on track. Learn more about
APICS recognized instructors at
apics.org/recognizedinstructors or find local
APICS partners that provide APICS CSCP
courses at apics.org/finder. For courses in
North America, visit the Partner and Event
Finder on the APICS website at
apics.org/finder or call APICS Customer
Service at 1-800-444-2742 (United States
and Canada) or +1-773-867-1777 to obtain
contact information for your local chapter. For
courses outside North America, visit
apics.org/international to locate the nearest
partner.
APICS Educational Programs
In addition to the annual APICS International
Conference & Expo, APICS offers a variety of
educational programs. For a list of APICS
learning opportunities and information on
course availability, call APICS Customer
Service at 1-800-444-2742 (United States
and Canada) or +1-773-867-1777.
APICS Certified in Production and
Inventory Management (CPIM) Basics
of Supply Chain Management (BSCM)
Review Course and Examination
The APICS CPIM BSCM module introduces
terminology, approaches, and techniques for
managing the internal supply chain in a
manufacturing organization. For that reason,
the references and the review course may be
valuable resources for APICS CSCP candidates
who are not familiar with the production and
inventory management environment.
Additionally, individuals who are not
experienced with certification examinations
using the multiple-choice format of items
typically find it beneficial to take the BSCM
examination.
For a complete list of APICS resources, visit
the APICS website at apics.org or call APICS
Customer Service at 800-444-2742 or +1-
773-867-1777.
APICS CSCP Certification
Maintenance: Continuing
Professional Development
The Importance of Certification
Maintenance
The growing number of individuals choosing to
pursue professional development through the
APICS CSCP program indicates a strong
awareness that continuing education and
skills development are essential to meeting
the information and technological challenges
in todays rapidly evolving workplace and
global marketplace. Professional development
opens doors to individual career opportunities
and organizational success.
Although APICS CSCP recognition and
maintenance are voluntary programs, they
equally demonstrate ones commitment to
achieving the highest level of professional
development and standards of excellence.
The APICS CSCP certification maintenance
program upholds both the objectives of the
APICS CSCP program and the APICS vision to
promote lifelong learning. This flexible
program recognizes that individuals are at
various levels in their careers, come from
many industries, have different educational
needs and career goals, and have varying
access to continuing education. Thus,
requirements for maintaining certification can
be met through multiple sources and a variety
of professional development activities
intended to help prepare for the challenges
ahead and maintain a professional edge by:
CSCP Exam Content Manual 5
 preserving the currency of hard-
earned certification credentials
expanding your knowledge of the
latest industry practices
expanding your knowledge of the
latest industry practices reinforcing
skills
exploring new technology solutions
reinforcing skills
improving job performance
demonstrating commitment to
excellence
increasing competitive advantage
To promote professional growth and lifelong
learning, APICS CSCP designees must
complete the certification maintenance
program every five years. Complete details on
how to maintain your APICS CSCP designation
will be mailed to candidates upon successful
completion of the certification requirements.
For information, visit apics.org/careers-
education-professional-development/
certification/maintenance.
APICS Code of Ethics
When you start an examination, you will be
asked to pledge to abide by the APICS Code of
Ethics. Once certified, you pledge to continue
your education to increase your contribution to
the supply chain management profession.
After achieving the APICS CSCP designation,
you pledge also to share your knowledge with
others by participating in APICS research and
educational activities at local, district,
national, and international levels.
APICS Code of Ethics
Maintain exemplary standards of
professional conduct;
Not misrepresent your qualifications,
experience, or education to APICS or
others you serve in a professional
capacity;
Respect and not violate the United
States Copyright of all APICS
materials, including but not limited to
courseware, magazine articles and
other APICS publications, APICS
6 APICS
conference presentations, and CPIM,
CSCP and SCOR-P examination
resources. In this same spirit, you
must not violate the copyright of other
organizations and individuals in your
professional capacity;
Not engage in or sanction any
exploitation of ones membership,
company, or profession;
Encourage and cooperate in the
interchange of knowledge and
techniques for the mutual benefit of
the profession;
In your professional capacity, respect
the fundamental rights and dignity of
all individuals. You must demonstrate
sensitivity to cultural, individual, and
role differences, including those due
to age, gender, race, ethnicity,
national origin, religion, sexual
orientation, disability, language, and
socio-economic status;
In your professional capacity, not
engage in behavior that is harassing
or demeaning to others based on
factors including, but not limited to,
age, gender, race, ethnicity, national
origin, religion, sexual orientation,
disability, language, or socio-economic
status;
Adhere to this Code of Conduct and its
application to your professional work.
Lack of awareness or
misunderstanding of an ethical
standard is not itself a defense to a
charge of unethical conduct;
Contact the Ethics Committee when
uncertain whether a particular
situation or course of action violates
the Code of Conduct; and
Not to become the subject of public
disrepute, contempt, or scandal that
affects your image or goodwill.
Failure to abide by APICS Code of Ethics policy
may result in sanctions up to and including
decertification.

APICS Certified Supply Chain
Professional (CSCP)
CSCP Subcommittee
Ann K. Gatewood, CFPIM, CIRM, CSCP (Chair)
Gatewood Associates, LLC
Nishat Ahmed, CPIM, CIRM, CSCP, CPM,
M.C. Dean, Inc.
Vinod Lall, Ph.D., CSCP
Minnesota State UniversityMoorhead
Robert Pinchot, CPIM, CSCP
DuPont
Eduardo A. Shelley, CFPIM, CIRM, CSCP
Savire Tecnologia y Procesos
Susan A. Vowels, MBA, CSCP
Washington College
Scope of the Subject Matter
Please read the introductory material in this
manual for essential information about the
examination.
APICS CSCP covers concepts, strategies,
processes, tools, and technologies applied to
managing the end-to-end forward and
backward flow of materials, information, and
value in a supply chain.
The subject matter is organized into three
content areas:
Supply Chain Design
This section addresses the concepts and
strategies used for developing a supply chain
strategy that aligns with business goals and
corporate strategy, basic strategy tools, and
techniques for implementation. It includes
designing a supply chain for the flow of
product, information and cash, the use of the
SCOR model, project management, and
information technology.
Supply Chain Planning and Execution
This section addresses the processes required
to supply chain partners, reverse logistics
procure and deliver goods and services,
including the scheduling and logistics of
executing the plan. It includes the
management of demand and supply,
relationship with, and waste management.
Supply Chain Improvement and Best Practices
This section covers managing and balancing
supply and demand through measuring,
analyzing, and improving supply chain
processes. It addresses compliance with
standards and regulations, the importance of
sustainable best practices and social
responsibility, and the assessment and
mitigation of risk within the supply chain.
The successful candidate will be able to
recognize and analyze specific supply chain
situations and opportunities and select the
appropriate approaches, tools, techniques,
and technologies. The candidate will be able
to define the actions necessary to implement
selected solutions. This includes an
understanding of and the ability to manage:
the alignment of supply chain processes
and capabilities with strategic business
goals
organizational roles and infrastructures
in the supply chain
material, information, and financial
flows
intra-and inter-organizational
relationships
the selection and use of technologies
to enable effective processes
management.
In addition, the candidate preparing for the
Certified Supply Chain Professional (CSCP)
certification must have a fundamental
understanding of the following key business
concepts:
Business acumen (qualitative skills,
math, statistics)
Ethical considerations (morals,
character, habits)
Leadership
CSCP Exam Content Manual 7
 APICS CSCP Content
Three content areas have been designed to
organize the APICS CSCP domain. The relative
importance of these topics will vary among
industries, but the figures given below show
the percentage designated for each section on
the exam.
Diagnostic Main topic Percentage
part of exam
I Supply Chain 23%
Design
II Supply Chain 43%
Planning and
Execution
III Supply Chain 34%
Improvement
and Best
Practices
Content Outline
I. Supply Chain Design
Supply chain design is an integral part of
enabling an organization to compete and be
profitable in todays dynamic business
environment. The supply chain strategy should
align with the organizations business strategy
and plan, support the value proposition, and
leverage core capabilities. Designing the
supply chain builds upon the supply chain
strategy through identifying business and
customer requirements, identifying the
desired future state, and then developing an
actionable plan to close the gaps to reach the
desired future supply chain design.
A. Develop the Supply Chain Strategy
The supply chain strategy for companies with
high performing supply chains should closely
align with and enable the overall business
strategy of the company. Achieving
appropriate alignment requires an
understanding of the forms of competitive
advantage being pursued. It also requires an
understanding of the organizational strategy,
8 APICS
priorities and capabilities. Important
processes include:
Aligning with the business strategy
Creating the supply chain strategy
Knowledge and skills in this area include:
1. Inputs to supply chain strategy
a. Business model
1. Business strategy
2. Business plan
3. Value proposition
4. Core capabilities
5. Cost structure
6. Revenue model
b. Competition
c. Market conditions
d. Global perspectives
2. Resolving misalignment or gaps
3. Tools and techniques
a. Macro and micro economic
considerations
b. Analysis of financial statements
c. Strengths, weaknesses,
opportunities and threats (SWOT)
analysis
d. Market research
e. Network modeling and operations
research
f. Balanced score card (BSC)
B. Design the Supply Chain
Supply Chain Design involves making
decisions on how to structure the supply chain
that supports and aligns with the organiza-
tions business strategy. This involves: making
decisions on suppliers; location and capacity
of plant, warehouses and distribution centers;
and, distribution channels to move products to
customers. How information and data are
managed, communicated, and the technology
employed is also planned. Sound project
management and effective communication is
required. Important processes include:
Identifying customer and business
requirements
Identifying future state
 Performing gap analysis between
current and future state
Developing action plan to close gaps
Knowledge and skills in this area include:
1. Supply chain considerations
a. Flow of inventory, funds and
information
b. Network configurations
c. Inventory location and level
d. Product design
e. Supply chain technology
f. SCOR model
g. Fulfillment strategies considering
market requirements
1. Responsiveness
2. Efficiency
h. New product development
/requirement changes
i. Supply chain strategy
j. Supply chain network design
k. Supply chain network optimization
2. Business considerations
a. Financial modeling
b. Market research
c. Product lifecycle stages
d. Reverse supply chain
e. Specialized supply chains (MRO,
humanitarian and disaster relief)
f. Collaboration with supply chain
partners
3. Project management considerations
a. Project initiation
b. Project planning and design
c. Project execution
d. Project monitoring and controlling
e. Project closure
4. Communication considerations
a. Identify purpose of communication
b. Identify target audience(s)
c. Identify communication channel(s)
d. Create message(s)
e. Ensure understanding/gather
feedback
f. Close the loop
5. Information technology considerations
a. Role of technology in supply chain
management
b. Information system architecture
c. Use of information technology in
the supply chain
d. Comprehensive supply chain
management system
e. Need for timely and accurate data
f. Electronic business
considerations
1. Virtual organization
enablement
2. Internet-enabled supply chains
3. E-commerce considerations
4. Business-to-business and
business-to-consumer
6. Key technology applications
a. Enterprise resources planning
(ERP) systems
b. Advanced planning and scheduling
(APS) systems
c. Supply chain event management
(SCEM)
d. Warehouse management systems
(WMS)
e. Transportation management
systems (TMS)
7. Data acquisition and management
a. Data acquisition and
communications tools
b. Interface devices
c. Data communications methods
d. Databases
hierarchical/relational/network
e. Acquisition and use of data
f. Automatic identification
technologies
References: 1; 2 (chapters 11, 12, 13)
3 (chapters 1, 2, 3, 4, 5, 6, 7); 4 (chapters 1,
2, 11, 12, 14, 15, 16); 5 (chapters 1, 2, 3, 4,
10); 6 (chapters 1, 2, 6, 7, 8, 9); 8 (chapters
1, 3, 5, 6, 10, 11, 14, 15); 12
CSCP Exam Content Manual 9
II. Supply Chain Planning and Execution 2. Regulatory requirements
a. Incoterms
Supply Chain Planning is the set of processes b. Customs
related to the estimation of future client 1. Importing considerations
demand and its balance with capacity and 2. Exporting considerations
supply, both from production and from c. Bills of lading
suppliers. This planning can encompass one d. Security regulation considerations
or several trading partners, from the end
consumer to the raw material producer, 3. Trade considerations
including reverse logistics. Supply Chain a. Free trade zones
Execution comprises the processes, such as b. Trading blocs
procurement, manufacturing warehousing and
transportation, required to control and give 4. Demand management
visibility of the goods moving through the a. Components of demand
supply chain. Many of the knowledge and skill management
sets listed in each of the sections apply to 1. Planning demand
both inbound and outbound processes. 2. Communicating demand
3. Influencing demand
A. Procure and Deliver Goods and Services 4. Prioritizing demand
Procurement and delivery of goods and/or
services operationalizes the supply chain b. Demand prioritization
design through the development and 1. Time fences
deployment of coordinated long-term and 2. Allocation of supply
short-term planning for sourcing, acquisition, 3. Measures of customer service
controlling, delivery, invoicing, and payment of levels
goods and/or services. Important processes
include: c. Forecasting demand
Performing sales and operations 1. Principles of demand
planning (S&OP) forecasting
2. Qualitative methods
Developing supply chain personnels
knowledge, skills and abilities 3. Quantitative methods
4. Combination methods
Developing supply chain infrastructure
5. Measures of forecast error
Performing short-term planning and 6. Demand management over
scheduling the products lifecycle
Identifying logistical requirements
Developing logistical capabilities to d. Demand management functional
support delivery of goods and services responsibilities and interfaces
Executing the plans 1. Product development
2. Marketing
Knowledge and skills in this area include: 3. Sales
4. Operations
1. Currency considerations and funds
flow
e. Operations planning and control
a. Impact of currency selection
1. Implementation of sales and
b. Exchange rates effects
operations planning (S&OP)
c. Payment terms
2. Controlling priorities
d. Invoicing considerations
3. Materials and inventory
e. Cash-to-cash cycle time
4. Capacity management

10 APICS
5. Supply management
a. Total cost of ownership
b. Make-versus-buy analysis
c. Range of buyer-supplier
relationships
d. Developing supply plans
e. Supplier relationship management
(SRM)
f. Contracting
g. Expediting
6. Inventory management
a. Inventory planning
1. Locations of inventory
2. Levels of inventory
b. Inventory control
1. Order quantity determinations
2. Ordering systems
3. Safety stock and safety lead
time
4. Organization of storage
locations
5. Methods of tracking inventory
6. Methods for assessing
inventory accuracy
7. Warehouse management
a. Warehousing objectives and
considerations
b. Warehouse capacity forecasting
and planning
c. Manual and automated material
handling processes
d. Tradeoffs between warehousing
and transportation processes
8. Logistics and freight management
a. Flow of goods and information
b. Use of logistics service providers
1. Contract considerations
2. Contract rules
c. Transportation objectives and
considerations
d. Modes of transportation and
considerations for selection
e. Transportation capacity
forecasting and planning
f. Expediting processes
g. Delivery patterns
B. Manage the Relationship with Supply
Chain Partners
Understanding the market and the critical
roles played by both the upstream and
downstream supply chain partners are
important to the success of the Supply Chain.
Tailoring, aligning and managing
the relationships with the supply chain
partners will enhance the performance of the
entire supply chain. Important processes
include:
Managing relationships with
customers
Managing relationships with suppliers
Knowledge and skills in this area include:
1. Segmentation
a. Market
b. Customers and suppliers
c. Other supply chain partners
2. Customer relationship management
(CRM) and supplier relationship
management (SRM)
a. Customer and supplier selection
b. Customer and supplier
relationship types
c. Negotiation
d. Terms and conditions
e. Contracts and enforceability
f. Performance management
g. Technology usage
C. Manage Reverse Logistics including
Return, Recall, and End of Life
Managing reverse logistics and reverse supply
chains involves understanding that product
returns, repair, remanufacturing, end of life,
and related topics are organic elements in the
overall supply chain management execution
process. It is also important to understand
how reverse supply chains allow opportunities
for cost avoidance and revenue generation
while enabling compliance with regulations
regarding waste and hazardous
materials. Important processes include:
CSCP Exam Content Manual 11
 Identifying requirement of reverse
logistics
Designing reverse strategy
Implementing reverse strategy
Reverse supply chains require knowledge and
skills associated with forward supply chains.
Additional knowledge and skills include:
1. Reverse logistics
a. Activities supported
b. Design for reverse logistics
c. Benefits and costs
2. Waste considerations
a. Waste hierarchy
b. Waste exchange
c. Hazardous waste
References: 1; 2 (chapters 3, 4, 7, 8, 9, 10,
11, 14, 15); 4 (chapters 4, 6, 8, 10, 12, 16,
18); 6 (chapters 2, 5, 7); 8 (chapters 4, 8, 9,
10, 12, 13); 12
III. Supply Chain Improvement and
Best Practices
Changing market requirements, new
technologies, geopolitical shifts, weather-
related factors, and changes in availability of
resources require supply chains to be
constantly evolving. Supply chains must be
continually improving by gathering key
performance data, analyzing current
performance, and creating and implementing
improvement plans. The supply chain should
ensure compliance with existing standards,
regulations, and apply sustainable best
practices. Instead of only reacting to risk
events, companies need to model, anticipate,
and prevent risk.
A. Measure, Analyze, and Improve the Supply
Chain
Enhancing the competitiveness of a supply
chain requires an understanding of the
techniques and tools of continuous
improvement and the appropriate application
of each. It also requires an understanding of
how to measure the performance and
capabilities of the supply chain and how the
12 APICS
communication of these findings can
contribute to performance improvement.
Important processes include:
Gathering performance data
Analyzing performance
Improving performance
Knowledge and skills in this area include:
1. Supply chain metrics
a. Customer-focused metrics
b. Financial metrics
c. Operational metrics
2. Sales and operations planning (S&OP)
a. Reviewing performance
b. Evaluating demand levels
c. Evaluating supply capability
d. Reconciling demand, supply, and
financial plans
3. Continuous improvement philosophies
a. Lean
b. Six Sigma
c. Total quality management (TQM)
d. Theory of constraints (TOC)
4. Measuring and communicating
performance
a. Dashboards
b. Scorecards
c. SCOR performance measures
1. Planning demand and supply
2. Sourcing goods and services
3. Producing goods and services
4. Delivering goods and services
5. Planning for and processing
returns
d. Operational measures
e. Financial measures
5. Measuring customer service levels
a. Fill rates
b. Lead time monitoring
c. Order-status reporting
6. Change management
a. Prepare for change
b. Plan for change
c. Execute change
d. Monitor change
B. Comply with Standards, Regulations, and
Sustainable Best Practices
Managing globally dispersed sources of supply
and demand requires an understanding of the
standards and regulations of the jurisdictions
in which goods and funds flow. In addition,
designing and operating a supply chain
requires an understanding of the concepts of
sustainable business practices and how to
adapt and apply them to a specific supply
chain. Important processes include:
Identifying applicable standards,
regulations, sustainable best practices
Performing gap analysis for
compliance
Developing and implementing an
action plan
Knowledge and skills in this area include:
1. International standards and regulatory
compliance
a. Import/export considerations
b. Intellectual property rights
c. Licensing compliance
1. Software
2. Technology
d. Global accounting standards
e. Country specific accounting
regulations
f. Country and local labor laws
g. International labor considerations
2. Corporate social responsibility
considerations
a. Triple bottom line
1. Short and long term economic
performance
2. Environmental performance
3. Social performance
b. United Nations Global Compact
c. Global Reporting Initiative (GRI)
d. The Organization for Economic
Cooperation and Development
(OECD) Guidelines for
multinational enterprises
e. Social Accountability International
SA8000 Guidelines
f. Conflict Minerals
3. Social, environmental, safety, and
quality accreditations and
certifications
a. ISO 14001 - environmental
management systems
b. ISO 26000 - guidance for social
responsibility
c. SA 8000 certification social
accountability
d. ANSI Z.10 occupational safety
and health management systems
e. ISO 9001 certification quality
management systems
C. Manage Risk in the Supply Chain
Risk is inherent in supply chains and
companies may go out of business due to a
major risk event. Instead of only responding
to risk events, companies must be able to
model, anticipate and prevent risk events.
An understanding of the techniques to
identify, mitigate, and manage risks is
important for supply chain management and
overall business success. Important
processes include:
Identifying the risks
Assessing and classifying the risks
Developing risk mitigation and
management plan
Executing risk mitigation plan and
management plan
Knowledge and skills in this area include:
1. Risk identification
a. Recognition and identification of
different forms of risk
b. Risk of loss of tangible and
intangible assets
2. Risk assessment and classification
a. Classification and prioritization
3. Risk response
a. Mitigating and managing supply
chain risks
b. Implementing risk mitigation and
management plan
CSCP Exam Content Manual 13
 4. Security and regulatory concerns
a. Import and export requirements
compliance
b. Benefits and costs of participating
in security partnerships
c. Benefits and costs of meeting
sustainability regulations
d. Product traceability and
configuration management
5. Risk standards
a. ISO 31000 Risk management
principles and guidelines
b. ISO 31010 Risk management
risk assessment techniques
c. ISO Guide 73 Risk management
vocabulary components
References: 1; 2 (chapters 4, 5, 11, 16);
4 (chapters 1, 13, 18); 5 (chapter 11);
7 (chapters 2, 4, 5, 6, 7, 8, 9, 10, 13);
8 (chapters 2, 10) 9; 10; 11; 12
Key Terminology
An understanding of the following list of terms
is recommended. The list is intended to be
thorough but not exhaustive. The candidate is
also expected to be familiar with the
definitions of terms identified in the content
outline. Definitions of these terms can be
found in the APICS Dictionary, 14th edition.
A design for service
active tag
advanced planning and scheduling (APS)
alliance development
anticipation inventories
assemble-to-order
automatic identification and data capture
(AIDC)
automatic identification system (AIS)
available-to-promise (ATP)
B electronic document
balanced scorecard
blanket purchase order
buffer
business intelligence
business-to-business commerce (B2B)
business-to-consumer sales (B2C)
business process management (BPM)
14 APICS
C
capable-to-promise (CTP)
cash-to-cash cycle time
collaborative planning, forecasting, and
replenishment (CPFR)
configuration management system
consortia trade exchanges (CTX)
content management applications
continuous replenishment
cost of goods sold (COGS)
cost of quality
cross-docking
cross-selling
customer relationship management (CRM)
customer service ratio
cycle time
D
database management system (DBMS)
data warehouse
define, measure, analyze, improve, control
(DMAIC) process
demand forecasting
demand management
demand planning
demand pull
demand shaping
design for maintainability
design for manufacturability
design for manufacture and assembly (DFMA)
design for quality
design for remanufacture
design for six sigma
design for the environment (DFE)
design for the supply chain
distribution inventory
distribution requirements planning (DRP)
E
economic value added
electronic commerce (e-commerce)
electronic data interchange (EDI)
electronic product codes (EPCs)
end-of-life management
enterprise resources planning (ERP)
environmentally responsible business
environmentally responsible manufacturing
environmentally sensitive engineering
F market demand
fill rate market research
fourth-party-logistics (4PL) market share
free trade zone (FTZ) master production schedule (MPS)
material requirements planning (MRP)
G mix forecast
Global Reporting Initiative (GRI) modular design strategy
global strategy modular system
glocalization multicountry strategy
multisourcing
H
harmonized system classification codes O
horizontal marketplace obsolescence
ordering cost
I order losers
incoterms order qualifiers
independent demand order winners
information system architecture outsourcing
innovative product
interplant demand P
inventory accuracy Pareto analysis
inventory optimization software partnership
inventory turnover passive tag
inventory valuation pipeline inventory
inventory velocity plan-do-check-action (PDCA)
inventory visibility planning horizon
ISO 14000 Series Standards portal
ISO 26000 private trading exchange (PTX)
ISO 31000 product differentiation
product family
J product life cycle management (PLM)
joint replenishment system project management
joint venture pull system
push system
K
kaizen
Q
kaizen event
quality function deployment (QFD)
kanban
quick response program (QRP)
keiretsu
key performance indicator (KPI)
R
radio frequency identification (RFID)
L
rapid replenishment
landed cost
return on assets (ROA)
legacy systems
return on investment (ROI)
level of service
reverse auction
level strategy
reverse logistics
lifecycle analysis
reverse supply chain
line haul costs
risk pooling
risk register
M
make-to-order
make-to-stock

CSCP Exam Content Manual 15

S Supplemental Glossary
safety lead time The following concepts, not found in the APICS
safety stock Dictionary, 14th edition, will be helpful in
sales and operations planning (S&OP) preparing for the CSCP examination.
seasonality
semipassive tag ANSI Z.10
service industry A voluntary consensus standard on
single-source supplier occupational health and safety management
sole-source supplier systems. It uses recognized management
sourcing system principles in order to be compatible
spend management with quality and environmental management
stockkeeping unit (SKU) system standards such as the ISO 9000 and
strategic alliance ISO 14000 series.
strategic planning
strategic sourcing Business Management Continuity
subcontracting Management System (BCMS)
supplier certification Part of the overall management systems that
supplier relationship management (SRM) establishes, implements, operates, monitors,
supply chain event management (SCEM) reviews, maintains and improves the
supply chain management supply chain risk organizational capability of continuing to
Supply Chain Operations Reference Model deliver products or services at acceptable
(SCOR) predefined levels following a disruptive
supply chain resilience incident. It is based upon identifying potential
supply chain visibility threats to an organization and the impacts to
business operations those threats, if realized,
T
might cause, and which provides a framework
tactical buying
for building organizational resilience with the
tariff
capability of an effective response that
third-party logistics (3PL)
safeguards the interests of its key
time fence
stakeholders, reputation, brand and value-
total cost of ownership (TCO)
creating activities.
trade bloc
trading bloc
Business Rules
transportation management system (TMS)
The rules for an organization that define or
triple bottom line (TBL)
constrain some aspect of business, such as
policies or procedures and are meant to
U
provide guidance.
universality
Conflict Minerals
V
Minerals mined in conditions of armed conflict
value-added
and human rights abuses, and are sold or
value-added network (VAN)
traded by armed groups.
value chain
value stream
Customer Order Cycle Time
value stream mapping
syn: with order fulfillment cycle time.
vendor-managed inventory (VMI)
virtual trading exchange
Days Sales Outstanding
W A measure of the average number of days that
warehouse management system (WMS) a company takes to collect revenue after a
waste sale has been made calculated by the total
web services accounts receivable/average daily sales rate.

16 APICS
Days of Supply
In addition to the definition in the APICS
Dictionary, the following definition is provided:
as a financial measure it is the value of all
inventory in the supply chain/ the average
daily cost of goods sold rate.
Design for X (DFX)
A design should be manufacturable,
maintainable, cost effective, high quality and
so on. Design for X refers to the use of a
formal methodology to optimize a specific
aspect of a design. For example, the
characteristics that make a design easy to
assemble (Design for Assembly) have been
systematically codified. The design team can
review the design concept in the light of these
rules and methods. DFX or DfX stands for
"design for excellence", "Design for
Excellence", or Design For Excellence".
Downside Supply Chain Adaptability
A discrete measurement of the reduction in
quantities ordered sustainable at 30 days
prior to delivery with no inventory or cost
penalties.
E-Business
Electronic business, or e-business is
conducting business processes on an
electronic network, typically the internet. See:
e-commerce.
Functional Product: Functional products are
mature products that tend to have a low profit
margin and a predictable demand.
Global Trade Management: The management
and optimization of shipments across
international borders including: ensuring
compliance with all international regulations
and documentation, streamlining and
accelerating the movement of goods, while
minimizing the global supply chain costs
within and outside of the organization.
Globally Harmonized System of Classification
and Labeling of Chemicals (GHS)
An International standard, created by the
United Nations Economic Commission for
Europe (UNECE), for classifying chemicals
according to their health, physical and
environmental hazards. GHS is a system that
defines and classifies the hazards of chemical
products, and communicates health and
safety information on labels and material
safety data sheets.
Harmonized Tariff Schedule (HTS)
Each country has its own Harmonized Tariff
Schedule (HTS), the mechanism by which
international tariffs are standardized.
Importers and Exporters must classify all
goods moved across international borders
using the Harmonized System of the country
of import.
International Financial Reporting Standards
(IFRS)
International Financial Reporting Standards
(IFRS) are designed as a common global
language for business affairs so that company
accounts are understandable and comparable
across international boundaries. They are a
consequence of growing international
shareholding and trade and are particularly
important for companies that have dealings in
several countries. They are progressively
replacing the many different national
accounting standards. The rules to be
followed by accountants to maintain books of
accounts which is comparable,
understandable, reliable and relevant as per
the users internal or external.
ISO 73
Provides the definitions of generic terms
related to risk management. It aims to
encourage a mutual and consistent
understanding of, and a coherent approach to,
the description of activities relating to the
management of risk, and the use of uniform
risk management terminology in processes
and frameworks dealing with the management
of risk.
ISO 9001
An international standard that specifies
requirements for a Quality Management
System (QMS) where an organization: a)
Needs to demonstrate its ability to
consistently provide product that meets
CSCP Exam Content Manual 17
customer and applicable statutory and
regulatory requirements and b) Aims to
enhance customer satisfaction through the
effective application of the system, including
processes for continual improvement of the
system and the assurance of conformity to
customer and applicable statutory and
regulatory requirements.
ISO 22301
An international standard that specifies
requirements for setting up and managing an
effective Business Continuity Management
System (BCMS).
ISO 28000
An International Standard that specifies the
requirements for a security management
system, including those aspects critical to
security assurance of the supply chain.
Order Fulfillment Cycle Time
The time required to fulfill an order from the
time the order is placed by the customer to
the time the order is delivered to the
customer's desired location. This metric is
usually reported as an average cycle time of
all orders fulfilled during a time period.
Overall Value at Risk
The sum of the probability of risk events times
the monetary impact of the events which can
impact any core supply chain functions (e.g.
Plan, Source, Make, Deliver and Return) or key
dependencies.
Payment Terms
Conditions surrounding payment for a sale,
providing a time frame in which a customer
can pay without late penalties or additional
fees.
Perfect Order Fulfillment
A measure of an organization's ability to
deliver "perfect" orders to a customer. A
perfect order is an order with no defects in
any aspect including but not limited to the
right quantity of the right product at the right
place at the right time with all required
documentation. Other elements may be
added to the definition of perfect based on
18 APICS
customer requirements. This metric is usually
represented by a percentage and is calculated
by the ratio of perfect orders during a given
time period to the total number of orders
completed during the same time period.
Return on Supply Chain Fixed Assets
The return an organization receives on its
invested capital in supply chain fixed assets.
This includes the fixed assets used to Plan,
Source, Make, Deliver and Return. ([Supply
Chain Revenue] [COGS] [Supply Chain
Management Costs]) / [Supply Chain Fixed
Assets].
Return on Working Capital
A measure of profit on the amount of cash
consumed calculated as After-tax operating
income/net working capital.
Risk Appetite
Amount and type of risk that an organization is
willing to pursue or retain.
Risk Management
The identification, assessment, and
prioritization of risks followed by coordinated
and economical application of resources to
minimize, monitor, and control the probability
and/or impact of unfortunate event or to
maximize the realization of opportunities.
Risk Tolerance
Organization's or stakeholder's readiness to
bear the risk after risk treatment in order to
achieve its objectives
SA8000
A widely recognized international standard for
managing human rights in the workplace. It
provides an auditable framework for assuring
that social accountability is being stewarded
by an organization.
Stakeholder Relationship Management
Addressing and managing the competing
priorities, needs and concerns of internal and
external stakeholders in a proactive and
sustained manner resulting in decreased cost
and enhanced stakeholder acceptance or buy-
in.
Supplier's/Customer's/Products' Risk Rating
The numerical risk rating for supplier,
customer or product. Normalized and used for
comparison purposes.
Supply Chain Continuity
Strategic and tactical capability, pre-approved
by management, of an organization to plan for
and respond to conditions, situations, and
events in order to continue supply chain
operations at an acceptable predefined level.
Supply Chain Cycle Time
The time it would take to fill a customer order
if inventory levels were zero. Sum of the
longest lead times for each stage in the supply
chain.
The Organization for Economic
Co-operation and Development (OECD)
Guidelines for Multinational Enterprises:
A set of recommendations on responsible
business conduct addressed by governments
to Multinational Enterprises (MNEs) operating
in or from adhering countries that encourage
and maximize the positive impact MNEs can
make to sustainable development and
enduring social progress.
Total Cost to Serve
The sum of the supply chain cost to deliver
products and services to customers. Total
Cost to Serve includes the cost to plan the
supply chain, cost to source materials,
products, goods, merchandize and services,
cost to produce, manufacture, remanufacture,
refurbish, repair and maintain goods and
services if applicable, cost to manage orders,
customer inquiries and returns, and cost to
deliver products and services at the agreed
location (point of revenue).
Total Cost to Serve comprises of two types of
cost:
Direct cost. Cost that can be directly
attributed to fulfilling customer orders. For
example the cost of the materials used and/or
delivered, all direct supply chain labor, etc.
Indirect cost. Cost required (or occurring) to
operate the supply chain. For example: Cost to
lease and maintain equipment, inventory
depreciation, damage and returns costs, and
more.
Total Cost to Serve can be measured per
event and at the aggregated supply chain level
(assuming reporting capabilities exist).
Measuring Cost to Serve at transactional level
generally requires activity based costing
capabilities for direct cost and a system to
allocate indirect cost.
Upside Supply Chain Adaptability
A discrete measurement of the quantity of
increased production a supply chain can
achieve and sustain in 30 days-time.
Upside Supply Chain Flexibility
A discrete measurement of the amount of
time it takes a supply chain to respond to an
unplanned 20% increase in demand without
service or cost penalty.
Waste Exchange
1) Arrangement in which companies exchange
their wastes for the benefit of both parties.
2) An exchange service of valuable
information between generators and potential
users of industrial and commercial wastes,
whereby a beneficial use rather than disposal
is the end result. This service identifies both
the producers and potential markets for by-
products, surpluses, unspent materials and
other forms of solid waste that is no longer
needed.
Waste Hierarchy
A tool that ranks waste management options
according to what is most environmentally
sound. It gives top priority to preventing waste
in the first place, and can be applied to
various applications.
CSCP Exam Content Manual 19
Bibliography
All test candidates should familiarize
themselves with the following references for
this examination. The recommended
references pertaining to the diagnostic area
are listed at the end of each section of the
content outline. All of these references are
available from the APICS Bookstore.
1. APICS Dictionary. 14th ed., 2013.
2. Bowersox, Donald J., David J. Closs, M.
Bixby Cooper, and John C. Bowersox.
Supply Chain Logistics Management.
4th ed., McGraw-Hill, 2013.
3. Cohen, Shoshanah and Joseph Roussel.
Strategic Supply Chain Management:
The Five Core Disciplines for Top
Performance. 2nd ed., Mc-Graw-Hill
Education, 2013.
4. Crandall, Richard E., William R. Crandall,
and Charlie C. Chen. Principles of Supply
Chain Management. 2nd ed., CRC Press,
2015.
5. Project Management Institute, Inc. A
Guide to the Project Management Body
of Knowledge, 5th ed., Project
Management Institute, Inc. 2013.
10. United Nations Global Compact
Brochure: Corporate Sustainability in the
World Economy. 2014. UN Global
Compact Office.
http://www.unglobalcompact.org/docs/
news_events/8.1/GC_brochure_FINAL.
pdf
11. UN Global Compact Management Model:
Framework for Implementation. 2010.
Deloitte Touche Tohmatsu. Welcome
message by Georg Kell. Foreword by
John Connolly.
http://www.unglobalcompact.org/docs/
news_events/9.1_news_archives/2010
_06_17/UN_Global_Compact_Manage
ment_Model.pdf
12. Additional reference materials that are
relevant to the CSCP body of knowledge
can be found at apics.org/cscp.
Questions appearing on the exam may
be based on these additional
references.
Internet links cited in the bibliographic
references above can be found in a more
usable format on the APICS website at
apics.org/cscp.

6. Ross, David F. Introduction to Supply

Chain Management Technologies. 2nd
ed., CRC Press, 2011.

7. Schlegel, Gregory L. and Robert J. Trent.

Supply Chain Risk Management: An
Emerging Discipline. CRC Press, 2014.

8. Simchi-Levi,David. Philip Kaminsky, and

Edith Simchi-Levi. Designing &
Managing the Supply Chain. 3rd ed.,
McGraw-Hill, 2008.

9. G4 Sustainability Reporting Guidelines.

Global Reporting Initiative.
https://www.globalreporting.org/resourc
elibrary/GRIG4-Part1-Reporting-
Principles-and-Standard-Disclosures.pdf.

20 APICS

Sample Questions
The following ten questions are similar in
format and content to the questions on the
CSCP exam. These questions are intended for
practicethat is, to enable you to become
familiar with the way the questions are asked.
The degree of success you have in answering
these questions is not related to your potential
for success on the actual exam, and should
not be interpreted as such. Read each
question, select an answer, and check your
responses with the explanations on pages
2122.
1. Which of the following is the primary
advantage of using web-based
electronic data interchange (EDI) for
communication of transactions?
(A) There is more flexibility in
transaction formats.
(B) It lowers the cost per transaction.
(C) It eliminates translation of
transactions.
(D) A larger number of transactions are
supported.
2. Quality remains an elusive concept in
most organizations because
(A) it depends on customer perception.
(B) there are many quality philosophies.
(C) it is everyones responsibility.
(D) quality targets change frequently.
3. An example of the use of a third-party
logistics (3PL) company would be when
a company contracts with another
company to
(A) perform its shipping and receiving
functions.
(B) produce and deliver a major
subassembly.
(C) provide payroll services.
(D) act as a sales agent in another
country.
4. Which of the following is an expected
benefit of implementing supply chain
event management?
(A) It will reduce the need for supply
chain performance reporting.
(B) It will improve forecasting accuracy.
(C) It notifies partners when a deviation
from plans occurs.
(D) It reduces the cost of
communications between partners.
5. Which of the following applications
would enable a company to detect
patterns in the preferences of a
customer segment?
(A) Business intelligence
(B) Advanced planning system
(C) Sales force automation
(D) Artificial intelligence
6. Cash-to-cash cycle time is a measure of
how efficiently a company
(A) recovers its investment in plant and
equipment.
(B) manages assets to generate cash
flow.
(C) converts inventory into sales.
(D) collects on sales to customers.
7. Which of the following types of inventory
is used to protect against variations in
supply and/or demand?
(A) Cycle stock
(B) Transportation inventory
(C) Safety stock
(D) Anticipation inventory
8. Which of the following outcomes is
typically a characteristic of strategic
sourcing?
(A) It includes automation of contract
management processes.
(B) It reduces the price of goods and
services.
CSCP Exam Content Manual 21
 (C) A supplier receives all of the
companys orders for a product or
product family.
(D) The focus of the relationship is on
large transactions.

9. Which of the following measures would

be most appropriate for trading partners
to use to assess the delivery
performance of the manufacturer of
items built to forecast?

(A) Percentage of items shipped within

the final assembly lead time.
(B) Percentage of orders shipped
complete within 24 hours of their
receipt.
(C) Number of items shipped within 24
hours of their receipt.
(D) Revenue from orders shipped in a
week.

10. Which of the following benefits is

expected when implementing
collaborative supply chain
management?

(A) Maximizing the performance of the

firm
(B) Reducing the number of competitors
(C) Increasing scope of operations
(D) Synchronizing supply and demand

22 APICS

Answers to Sample Questions
Note: References to the content outline
appear in parentheses.
1. B (IB5) B is the best choice because a
web-based EDI system would eliminate
the cost of a private or value-added
network. A is not the best choice
because the EDI transaction formats are
independent of the network used for
transmission.
C is not the best choice because the
transactions still must be translated to
and from the standardized format. D is
not the best choice because the
standards are independent of the
transmission method used.
2. A (IIIA3) A is the best choice because the
customers are the ultimate judges of
quality and they may have differing
requirements and priorities. B is not the
best answer because the philosophies
have similar definitions of quality and
address how to improve it. C is not the
best choice because the fact that it is
everyones responsibility has nothing to
do with the concept of what is quality. D
is not the best choice because targets
should change once they have been
achieved.
3. A (IIB4) A is the best choice because a
3PL company is a company that
manages part or all of a companys
product delivery operations and shipping
is part of the product delivery
operations. B is not the best choice
because neither producing the
subassembly nor delivering it is part of
the companys product delivery
operations. C is not the best choice
because payroll services are not a part
of the companys product delivery
operations. D is not the best choice
because selling does not necessarily
include any delivery operations.
4. C (IB6) C is the best choice because
supply chain event management
monitors the supply chain and notifies
designated individuals when specified
events or exceptions occur or when
trends are recognized. A is not the best
choice because it enables performance
reporting but does not reduce the need
for it. B is not the best choice because
supply chain event management itself
does not affect any specific application.
D is not the best choice because supply
chain event management does not
directly affect the amount or cost of
communications among partners.
5. A (IIC2) A is the best choice because
business intelligence applications
collect, organize, and analyze
information. Use of these applications
on customer data would allow the
company to detect patterns in the data.
B is not the best choice because
advanced planning systems address
operations rather than customers. C is
not the best choice because sales force
automation does not capture or organize
the data required to detect patterns in
customer preferences. D is not the best
choice because artificial intelligence
applications are intended to learn and
reason like humans to address specific
problems.
6. B (IIA4) B is the best choice because the
definition of cash-to-cash cycle time is
that it is an indicator of how efficiently a
company manages assets to improve
cash flow. It is the inventory days +
accounts receivable days accounts
payable days. A is not the best choice
because cash-to-cash cycle time does
not consider the investment in plant and
equipment. C is not the best choice
because it is limited to the inventory
days component of cash-to-cash cycle
time. D is not the best choice because it
is limited to the accounts receivable
component of cash-to-cash cycle time.
CSCP Exam Content Manual 23
 7. C (IB1) C is the best choice because
safety stock is maintained to protect
against variability in either supply or
demand. A is not the best choice
because cycle stock is related to lot
sizing. B is not the best choice because
transportation inventory is inventory that
is in transit between locations. D is not
the best choice because anticipation
inventory is inventory held to cover
trends or planned events, such as
promotions or plant shutdown.
single member of the chain. B is not the
best choice though it may be an
outcome of collaborative supply chain
management. C is not the best choice
because there is no direct relationship
between collaborative supply chain
management and the scope of
operations for one of the partners.

8. A (IIA7) A is the best choice because

strategic sourcing focuses on the long-
term relationship and, from an
information technology perspective,
typically includes automation of contract
management. B is not the best choice
because the focus is on the total cost of
ownership rather than on the quoted
price. C is not the best choice because
strategic sourcing can include
contracting with more than one partner
for a part or family of parts to reduce the
risk of disruptions. D is not the best
choice because the focus of the
relationship is on a long-term
relationship between the partners rather
than on individual transactions.

9. B (IIIA4) B is the best choice because

the items are being produced to forecast
and should be shipped from stock
shortly after receipt of the order. A is not
the best choice because the final
assembly lead time should not be
needed before shipment because the
items are produced to forecast. C is not
the best choice because it is a measure
of the number of items shipped and
there is no indication of the actual
number of items that were ordered. D is
not the best choice because revenue is
a financial measure, but does not
indicate delivery performance.

10. D (IIC2) D is the best choice according to

the APICS Dictionary definition of supply
chain management. A is not the best
choice because SCM should improve the
performance of the entire chain, not a

24 APICS
apics.org