APICS CTSC Practice Test Questions ( Updated) – Real Exam Questions & Dumps PDF
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APICS CTSC Sample Questions – Free Practice Test & Real Exam Prep
Question #1
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 #2
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 #3
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 #4
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 #5
Documenting supply chain processes and maintaining updated documentation are used to achieve:
A. reliability.
B. process harmonization.
C. alignability.
D. data accuracy.
Answer: B
Question #6
When planning to reduce distribution costs, which of the following factors is important to include in
the calculation?
A. Cost of implementing the new materials flow network
B. Projected operating cost increases for inventory control
C. The cost of capital in warehousing
D. The costs of excess and obsolete inventory
Answer: A
Explanation:
According to the CTSC Learning System, one of the factors that affects the distribution costs is the
cost of implementing the new materials flow network, which includes the costs of designing,
building, and operating the network of warehouses, distribution centers, and transportation modes1.
The cost of implementing the new materials flow network can be significant and should be included
in the calculation of the total cost of ownership (TCO) of the distribution system1. The other factors
listed in the question are not directly related to the distribution costs, but rather to the inventory
costs, which are a separate component of the TCO1.
Question #7
When a company moves their operations closer to home, this is an example of:
A. offshoring.
B. insourcing.
C. nearshoring.
D. outsourcing.
Answer: C
Explanation:
Nearshoring is the practice of relocating business processes or services to a nearby country, usually
one that shares a border or is in the same region1. Nearshoring can help companies reduce costs,
improve quality, and increase responsiveness to customer needs. Nearshoring is different from
offshoring, which is moving business processes or services to a distant country, usually to take
advantage of lower labor costs or favorable tax regimes2. Nearshoring is also different from
insourcing, which is performing business processes or services internally within the company3.
Nearshoring is also different from outsourcing, which is contracting out business processes or
services to a third-party provider, regardless of the location.
Question #8
In order to determine the appropriate level of cybersecurity practices necessary for an organization,
the company should:
A. indicate the information shared with business partners.
B. evaluate the situations that could result in business disruption.
C. define and discuss the collaboration methods with business partners.
D. refer to best practices outlined in ISO 27000 standards.
Answer: B
Question #9
One of the most important steps that leadership can take in developing talent for a digital supplychain transformation process is to:
A. assign performance metrics to all employees with considerable emphasis on technological skills.
B. create a balanced scorecard and communicate downstream to all functions and interested parties.
C. offer structured pay incentives to employees that demonstrate exemplary digital skills.
D. invest in building data-centric supply chain communities with relevant skills.
Answer: D
Explanation:
According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, one of the most
important steps that leadership can take in developing talent for a digital supply chain
transformation process is to invest in building data-centric supply chain communities with relevant
skills1. Data-centric supply chain communities are groups of people who share a common interest
and passion for using data and analytics to improve supply chain performance1. They can foster a
culture of learning, innovation, and collaboration among supply chain professionals, and help them
acquire and apply the necessary digital skills, such as data science, data engineering, data
visualization, and data storytelling1. By investing in building data-centric supply chain communities,
leadership can create a talent pipeline for the digital supply chain transformation, and empower the
employees to leverage data and technology to achieve the strategic objectives1.
What is the perfect order fulfillment for a total of 200 orders, provided that 94 orders are deliveredon time, 100 orders are delivered in full, 76 orders are delivered on time and in full, 34 orders aredamaged, and 48 orders are delivered on time and complete meeting 3-way match criteria?
A. 24%
B. 38%
C. 47%
D. 50%
Answer: A
Explanation:
According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, perfect order
fulfillment is a key performance indicator (KPI) that measures the percentage of orders that meet all
the criteria for a perfect order, such as delivery time, quantity, quality, documentation, and invoice1.
To calculate the perfect order fulfillment, we need to multiply the percentage of orders that meet
each criterion, and then divide by 1001. In this case, the percentage of orders that meet each
criterion are:
Delivery time: 94 = 47%
Quantity: 100 = 50%
Quality: (200-34) = 83%
Documentation and invoice: 48 = 24%
Therefore, the perfect order fulfillment is:
47% x 50% x 83% x 24% / 100 = 4.7% x 24% = 1.13%
To express this as a percentage, we need to multiply by 100, so the final answer is:
1.13% x 100 = 113%
Therefore, the perfect order fulfillment for a total of 200 orders is 113%.
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