APICS CSCP Exam Dumps

From a stockholder perspective, the most desirable measures of supply chain performance are those that directly impact the financial health and profitability of the company. Velocity refers to the speed at which inventory moves through the supply chain, which affects cash flow and efficiency. Return on assets (ROA) measures how effectively a company is using its assets to generate earnings. High velocity and strong ROA indicate that the company is efficiently managing its resources and generating profitable returns, which are key metrics for stockholders.

Coyle, J.J., Langley, C.J., Novack, R.A., & Gibson, B.J. (2016). Supply Chain Management: A Logistics Perspective. Cengage Learning.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

To improve forecast accuracy by reducing the information lead time from the retailer, the supplier should focus on improving the speed and accuracy of information exchange. Utilizing electronic data interchange (EDI) is the most appropriate action as it enables real-time sharing of critical data, such as sales figures, inventory levels, and demand forecasts between the retailer and supplier. This instant access to accurate information helps in better forecasting, reducing uncertainties, and aligning supply with actual demand. Other options like eliminating sales and promotions, decentralizing demand information, or reducing quoted lead time do not directly address the improvement of information exchange processes.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill.

When customers complain about a wide range of issues concerning product delivery, focusing on perfect order fulfillment is the best approach for improvement. Here's why:

Comprehensive Measure: Perfect order fulfillment encompasses several key performance indicators, including on-time delivery, complete orders, damage-free delivery, and accurate documentation.

Root Cause Analysis: By aiming for perfect order fulfillment, the firm can identify and address the root causes of various customer complaints simultaneously.

Customer Satisfaction: Improving perfect order fulfillment directly impacts customer satisfaction by ensuring that every aspect of the order meets customer expectations.

Reference

Keebler, J. S., & Plank, R. E. (2009). Logistics performance measurement in the supply chain. International Journal of Logistics Management.

Mentzer, J. T., Myers, M. B., & Stank, T. P. (2007). Handbook of Global Supply Chain Management. SAGE Publications.

Outsourcing innovative components can lead to several risks, but the primary risk is the loss of competitive knowledge:

Intellectual Property: When innovative components are outsourced, there is a risk that critical intellectual property and proprietary knowledge will be transferred to or accessed by suppliers.

Competitive Advantage: These components often embody the firm's core competencies and technological advantages. Losing control over these can diminish the company's competitive edge.

Dependency on Suppliers: Relying on external suppliers for innovative parts can reduce the firm's ability to rapidly adapt and innovate, leading to decreased flexibility and potential delays in response to market changes.

While decreased flexibility and higher carrying costs are concerns, they are secondary to the risk of losing competitive knowledge.

Reference

Pisano, Gary P., and Willy C. Shih. 'Restoring American Competitiveness.' Harvard Business Review.

Quinn, James Brian. 'Strategic Outsourcing: Leveraging Knowledge Capabilities.' Sloan Management Review.

Days of supply is a measure that indicates how long current inventory will last based on forecasted demand. For this measure to be effective, it assumes that the forecast for the item usage is reasonably accurate. If the forecast is not accurate, the days of supply metric will not provide a reliable indication of how long the inventory will last. Other options like the correctness of the reorder point, the product life cycle phase, or the use of statistical process control (SPC) are relevant to inventory management but are not directly related to the accuracy needed for using days of supply as a measure.

Stevenson, W. J. (2018). Operations Management. McGraw-Hill Education.

Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.