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Related Exams
APICS CTSC Sample Question Answers
Question # 1
Which of the following statements is an example of an external motivator for executing a supply
chain transformation?
A. Employee turnover is expected to increase substantially over the next 3-5 years. B. A national customer wants the company to sell to its international subsidiaries. C. Forecasts show the current market expanding 25% over the next 2-3 years. D. Suppliers will need to decrease their lead times by 50% over 18 months.
Answer: B
Explanation:
An external motivator for executing a supply chain transformation is a factor that originates outside
the organization and influences its decision to change its supply chain strategy, processes, or
capabilities. Examples of external motivators include customer demands, market opportunities,
competitive pressures, regulatory requirements, and environmental concerns1. In this case, the
national customers request to sell to its international subsidiaries is an external motivator because it
comes from a key stakeholder in the supply chain and requires the company to adapt to new
markets, regulations, and logistics.
markets, regulations, and logistics.
Question # 2
A manufacturing company is implementing new technology in all production lines. To accelerate the
change and track the progress, this company should:
A. utilize a push-pull system. B. adopt define-test-deploy. C. create visibility. D. identify current performance drivers.
Answer: C
Explanation:
According to the CTSC Exam Content Manual, one of the ways to accelerate the change and track the
progress of a new technology implementation is to create visibility1. Creating visibility means
sharing the information and data about the change process, such as the objectives, benefits,
milestones, challenges, and results, with the relevant stakeholders, such as the employees,
managers, customers, and suppliers1. Creating visibility can help to increase the awareness,
understanding, and acceptance of the change, as well as to identify and address the issues and risks
that may arise during the change1. Creating visibility can also help to monitor and evaluate the
performance and impact of the new technology, and to provide feedback and recognition to the
change agents and participants1. The other options are not the best ways to accelerate the change
and track the progress of a new technology implementation, as they are more related to other
aspects of the supply chain or the change management. Utilizing a push-pull system is a way to
balance the demand and supply in the supply chain, but it does not directly affect the speed or the
measurement of the change2. Adopting define-test-deploy is a way to implement a new technology
in a phased manner, but it does not necessarily accelerate the change or track the progress, unless it
is combined with other methods, such as agile or lean3. Identifying current performance drivers is a
way to understand the factors that influence the supply chain performance, but it does not help to
implement a new technology, unless it is followed by a gap analysis and a solution design.
Question # 3
Which of the following steps should be completed before determining training needs?
A. Develop action plan. B. Assess performance management. C. Develop training plan. D. Assess key performance indicators (KPIs).
Answer: D
Explanation:
According to the CTSC Exam Content Manual, one of the steps that should be completed before
determining training needs is to assess key performance indicators (KPIs)1. KPIs are the metrics that
measure the performance and progress of the supply chain transformation objectives and
outcomes1. Assessing KPIs can help to identify the gaps and opportunities for improvement in the
supply chain processes, functions, and roles, and to determine the training needs and priorities for
the workforce2. The other options are not the steps that should be completed before determining
training needs, as they are more related to the implementation and evaluation of the training plan.
Developing an action plan is a step that follows the determination of training needs, as it outlines the
specific actions, resources, and timelines for delivering the training3. Developing a training plan is a
step that involves designing the training content, methods, and materials based on the training
needs and objectives. Assessing performance management is a step that involves monitoring and
reviewing the performance of the trainees and the training program, and providing feedback and
recognition.
Question # 4
A service company is experiencing long wait times for customer service. According to the theory ofconstraints (TOC), which of the following steps should the company take to address this issue?
A. Increase the number of staff members available before the bottleneck. B. Implement a more efficient customer service system. C. Identify and address the bottleneck in the customer service process. D. Increase the resources available to the customer service department.
Answer: C
Explanation:
According to the theory of constraints (TOC), a service company that is experiencing long wait times
for customer service should identify and address the bottleneck in the customer service process1. A
bottleneck is the activity or resource that limits the throughput or output of the entire system2. TOC
provides a five-step process for improving any system by focusing on the bottleneck3. The steps are:
Identify the systems constraint: find the activity or resource that has the least capacity or the longest
cycle time in the customer service process.
Exploit the systems constraint: make the most of the available capacity or time of the bottleneck,
such as reducing idle time, errors, or rework.
Subordinate everything else to the systems constraint: align the other activities or resources in the
customer service process to the pace and priority of the bottleneck, such as balancing the workload,
synchronizing the flow, or eliminating waste.
Elevate the systems constraint: increase the capacity or reduce the cycle time of the bottleneck, such
as adding more staff, equipment, or technology, or redesigning the process.
Repeat the process: monitor the performance of the customer service process and identify and
address the next constraint.
The other options are not the best steps to address the issue of long wait times for customer service,
according to TOC. Increasing the number of staff members available before the bottleneck will not
solve the problem, as it will only create more work-in-process inventory and increase the operational
expense4. Implementing a more efficient customer service system may or may not help, depending
on whether it addresses the root cause of the bottleneck or not5. Increasing the resources available
to the customer service department may also be ineffective or inefficient, as it may not target the
specific bottleneck or may create excess capacity or waste.
Question # 5
Sharing the visibility on change management progress by team can help the enterprise to:
A. measure transformation outcomes in meeting strategy. B. demonstrate the transformation milestones. C. allocate resources to the most in need of support. D. ensure an effective metrics program in practice.
Answer: C
Explanation:
According to the CTSC Exam Content Manual, one of the benefits of sharing the visibility on change
management progress by team is to allocate resources to the most in need of support1. Sharing the
visibility on change management progress by team can help the enterprise to identify the teams that
are lagging behind, facing challenges, or requiring assistance in the transformation process, and
provide them with the necessary resources, guidance, or coaching to overcome the barriers and
achieve the desired outcomes1. The other options are not the main benefits of sharing the visibility
on change management progress by team, as they are more related to other aspects of the
transformation process. Measuring transformation outcomes in meeting strategy is a benefit of
establishing a metrics program that tracks and evaluates the performance and impact of the
transformation initiatives2. Demonstrating the transformation milestones is a benefit of creating a
communication plan that informs and engages the stakeholders and showcases the achievements
and successes of the transformation efforts3. Ensuring an effective metrics program in practice is a
benefit of aligning the metrics with the strategic objectives, collecting and analyzing the relevant
data, and reporting and acting on the results2.
Question # 6
To choose the optimal supply chain organizational structure, management should consider thecompany's business strategy and:
A. complexity. B. processes. C. responsibilities. D. standards.
Answer: A
Explanation:
According to the CTSC Exam Content Manual, one of the factors that management should consider
when choosing the optimal supply chain organizational structure is the complexity of the companys
business strategy1. Complexity refers to the degree of variety, uncertainty, and interdependence in
the companys products, markets, customers, suppliers, and processes1. Complexity affects the
design and coordination of the supply chain, and requires different levels of centralization,
decentralization, integration, and differentiation1. The other options are not the main factors that
management should consider when choosing the optimal supply chain organizational structure, as
they are more related to the implementation and execution of the supply chain, not the design and
alignment. Processes are the activities and tasks that transform inputs into outputs in the supply
chain2. Responsibilities are the roles and duties that are assigned to the supply chain personnel and
functions3. Standards are the rules and guidelines that govern the supply chain performance and
compliance4.
Question # 7
Which of the following areas are most pertinent for leadership to focus on while developing aroadmap for supply chain transformation?
A. Suppliers, inventory, and payment terms B. Customers, warehouses, and carrier relationships C. Customers, talent, and risks D. Technology, data centers, and web portal
Answer: C
Explanation:
According to the CTSC Exam Content Manual, one of the areas that leadership should focus on while
developing a roadmap for supply chain transformation is customers, talent, and risks1. Customers
are the ultimate source of value and demand for the supply chain, and understanding their needs
and expectations is essential for designing a customer-centric supply chain strategy1. Talent is the
human capital that drives the supply chain performance and innovation, and developing the skills
and capabilities of the workforce is critical for enabling a successful supply chain transformation1.
Risks are the potential threats and uncertainties that can disrupt or damage the supply chain, and
identifying, assessing, and mitigating them is vital for ensuring the resilience and sustainability of the
supply chain1. The other options are not the most pertinent areas for leadership to focus on while
developing a roadmap for supply chain transformation, as they are more operational or tactical
aspects of the supply chain, not strategic or transformational. Suppliers, inventory, and payment
terms are examples of the sourcing process elements that affect the cost, quality, and availability of
the supply chain inputs2. Warehouses, carrier relationships, and technology are examples of the
delivery process elements that affect the efficiency, responsiveness, and reliability of the supply
chain outputs2. Data centers and web portal are examples of the information technology
infrastructure that supports the supply chain integration and visibility3.
Question # 8
In the SCOR model, the analysis of indicators of supply chain's performance from level 1 through 3 isreferred to as:
A. metrics attribution. B. metrics decomposition. C. performance cascading. D. performance classification.
Answer: B
Explanation:
According to the CTSC Exam Content Manual, metrics decomposition is the analysis of indicators of
supply chain performance from level 1 through 3 in the SCOR model1. Metrics decomposition helps
to identify the root causes of performance gaps, prioritize improvement opportunities, and align
metrics across different levels and processes1. The SCOR model defines four levels of metrics: level 1
metrics are strategic, cross-functional, and end-to-end; level 2 metrics are tactical and processspecific;
level 3 metrics are operational and sub-process-specific; and level 4 metrics are
transactional and implementation-specific2. Metrics decomposition is different from metrics
attribution, which is the assignment of metrics to the responsible parties or processes1. Metrics
decomposition is also different from performance cascading, which is the translation of strategic
objectives into operational goals and metrics1. Performance classification is not a term used in the
SCOR model.
Question # 9
Which supply chain model can handle high demand during peak season and quickly adjust to a leanperiod with low demand?
A. Custom-configured chain B. Agile chain C. Efficient chain D. Flexible chain
Answer: B
Explanation:
According to the CTSC Exam Content Manual, an agile chain is a supply chain model that can handle
high demand during peak season and quickly adjust to a lean period with low demand1. An agile
chain is characterized by high responsiveness, flexibility, and adaptability to changing customer
needs and market conditions1. An agile chain can also cope with high levels of uncertainty and
variability in demand and supply1. The other options are not the best supply chain model for this
scenario, as they have different characteristics and trade-offs. A custom-configured chain is a supply
chain model that delivers customized products or services to customers through modularization and
postponement strategies1. A custom-configured chain is suitable for high variety and low volume
markets, but it may not be able to handle high demand peaks efficiently2. An efficient chain is a
supply chain model that focuses on minimizing costs and maximizing asset utilization through
economies of scale and scope1. An efficient chain is suitable for low variety and high volume
markets, but it may not be able to adjust quickly to demand fluctuations or customer preferences2. A
flexible chain is a supply chain model that can handle moderate changes in demand and supply by
adjusting production capacity and inventory levels1. A flexible chain is suitable for medium variety
and medium volume markets, but it may not be able to handle extreme demand peaks or lean
periods without compromising service levels or costs2.
Question # 10
A company is experiencing persistently high costs of poor quality in the supply base. What is the best
approach to reduce those costs?
A. Conduct supplier appraisals. B. Track costs of returns. C. Establish education and quality training. D. Inspect all received products.
Answer: C
Explanation:
According to the CTSC Exam Content Manual, one of the ways to reduce the costs of poor quality in
the supply base is to establish education and quality training for the suppliers, as this can help them
improve their quality performance, reduce defects, and prevent problems1. Education and quality
training can also enhance the collaboration and communication between the buyers and the
suppliers, and foster a culture of continuous improvement2. The other options are not the best
approach to reduce the costs of poor quality in the supply base, as they are more reactive than
proactive, and they do not address the root causes of the poor quality. Conducting supplier
appraisals, tracking costs of returns, and inspecting all received products are examples of appraisal
costs, which are part of the costs of poor quality, not the solution3.
Question # 11
As part of the digital supply chain transformation process, leadership should have its team ofstakeholders prioritize which of the following as strategic assets?
A. Hardware and machinery in use across the entire business B. Free cash flow being reported monthly C. Internal and external data sources making up the supply chain D. Truck fleet and warehouses owned by the company
Answer: C
Explanation:
According to the CTSC Exam Content Manual, one of the steps in the digital supply chain
transformation process is to identify and prioritize the strategic assets of the organization, which are
the resources and capabilities that provide a competitive advantage and enable value creation1. One
of the strategic assets that leadership should have its team of stakeholders prioritize is the internal
and external data sources making up the supply chain, as data is the foundation of digital
transformation and the key to unlocking insights, innovation, and efficiency2. Data sources can
include operational data, customer data, supplier data, market data, and environmental data, among
others2. The other options are not necessarily strategic assets, as they may not provide a distinctive
edge or value proposition for the organization. Hardware and machinery, truck fleet and warehouses,
and free cash flow are examples of tangible assets that can be easily replicated or substituted by
competitors3.
Question # 12
Which of the following metrics is measured as the value created by reducing or eliminating costincreases sought by supplier over and above prevailing baseline cost?
A. Opportunity cost B. Direct material cost C. Indirect material cost D. Avoidance cost
Answer: D
Explanation:
According to the CTSC Exam Content Manual, avoidance cost is one of the metrics used to measure
the value created by the procurement function1. Avoidance cost is defined as the value created by
reducing or eliminating cost increases sought by suppliers over and above prevailing baseline cost1.
Avoidance cost is also known as cost avoidance, which is a proactive measure to prevent unnecessary
expenses or losses2. Avoidance cost is different from cost savings, which is the value created by
reducing the actual cost paid to suppliers below the prevailing baseline cost1. Cost savings is also
known as hard cost savings, which is actualized, quantifiable and verifiable3.
Question # 13
A good supply chain strategy should be:
A. tailored to customer experiences. B. managed with long-term capacity decisions. C. tailored to the right level of complexity. D. collaborated between buyers and suppliers.
Answer: C
Explanation:
According to the CTSC Exam Content Manual, a good supply chain strategy should be tailored to the
right level of complexity, which means balancing the trade-offs between efficiency and
responsiveness, standardization and customization, centralization and decentralization, and
integration and differentiation1. A good supply chain strategy should also align with the business
strategy, customer expectations, and market conditions1. The other options are not necessarily
wrong, but they are not the main criteria for a good supply chain strategy.
Question # 14
Which of the following performance measures describes the organization's ability to quickly adapt itsstrategic transformation response to demand and/or supply shocks?
A. The number of full-time employees needed to meet current demand B. The sustained percentage increase in manufacturing and/or service orders C. The number of days needed to meet a 25% unplanned change in demand D. The amount of internal and external capacity needed for current demand throughput
Answer: C
Explanation:
According to the CTSC Exam Content Manual, process harmonization is the degree to which an
organizations processes are standardized and aligned across its business units1. Documenting supply
chain processes and maintaining updated documentation are used to achieve process harmonization,
as they help to ensure consistency, transparency, and compliance of the processes across the
organization2. Documenting supply chain processes also facilitates the identification of best
practices, gaps, and improvement opportunities for the processes2.
Question # 15
Documenting supply chain processes and maintaining updated documentation are used to achieve:
A. reliability. B. process harmonization. C. alignability. D. data accuracy.
