CTSC Practice Test Questions

150 Questions


Which supply chain model can handle high demand during peak season and quickly adjust to a lean period with low demand?


A. Custom-configured chain


B. Agile chain


C. Efficient chain


D. Flexible chain





B.
  Agile chain

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.

Aside from investments in appropriate digital technologies, which of the following other
factors can be considered most critical to high performance of digital supply chains?


A. Number of unique website visitors and conversion rate


B. Employee talent development and organizational alignment


C. Sell-through rate and inventory turnover ratio


D. Supplier scorecards and business reviews





B.
  Employee talent development and organizational alignment

Explanation: According to the CTSC Exam Content Manual1, one of the key enablers of digital supply chain transformation is “people and culture”. This includes developing the skills and capabilities of the workforce, aligning the organizational structure and culture with the transformation vision and goals, and fostering a collaborative and innovative environment. Therefore, employee talent development and organizational alignment are critical factors for high performance of digital supply chains, aside from investments in appropriate digital technologies. Option A, C and D are examples of metrics that can be used to measure digital supply chain performance, but they are not factors that enable or enhance it.

A company is developing a supply chain strategy that is more focused on creating value. Based on this approach, which of the following steps is the most important for this company to take?


A. Assess suppliers' capabilities.


B. Analyze the inbound flow to the company's facility.


C. Design internal operations to meet customers' requirements.


D. Study and benchmark the company's operations.





C.
  Design internal operations to meet customers' requirements.

A firm creating a digital supply chain transformation team wants to ensure the data feeds to be used are of high quality and free of errors. Which key role within the transformation team should be responsible for the quality and accuracy of the data feeds?


A. Data engineer


B. Data steward


C. Data modeler


D. Data scientist





B.
  Data steward

Explanation: According to the ASCM CTSC Exam Content Manual, a data steward is a key role within a digital supply chain transformation team that is responsible for the quality and accuracy of the data feeds.A data steward is defined as "an oversight or data governance role within an organization, and is responsible for ensuring the quality and fitness for purpose of the organization’s data assets, including the metadata for those data assets"1.A data steward may share some responsibilities with a data custodian, such as the awareness, accessibility, release, appropriate use, security and management of data1. A data steward would also participate in the development and implementation of data assets.A data steward may seek to improve the quality and fitness for purpose of other data assets their organization depends upon but is not responsible for1.Data stewards have a specialist role that utilizes an organization’s data governance processes, policies, guidelines and responsibilities for administering an organizations’ entire data in compliance with policy and/or regulatory obligations1.The overall objective of a data steward is the data quality of the data assets, datasets, data records and data elements1.This includes documenting metainformation for the data, such as definitions, related rules/governance, physical manifestation, and related data models (most of these properties being specific to an attribute/concept relationship), identifying owners/custodian’s various responsibilities, relations insight [definition needed] pertaining to attribute quality, aiding with project requirement data facilitation and documentation of capture rules1.Data stewards begin the stewarding process with the identification of the data assets and elements which they will steward, with the ultimate result being standards, controls and data entry1.The steward works closely with business glossary standards analysts (for standards), with data architect / modelers (for standards), with DQ analysts (for controls) and with operations team members (good-quality data going in per business rules) while entering data1.Data stewardship roles are common when organizations attempt to exchange data precisely and consistently between computer systems and to reuse data-related resources1. Master data management often [quantify] makes references to the need for data stewardship for its implementation to succeed.Data stewardship must have precise purpose, fit for purpose or fitness1.

Which of the following items helps to align the assumptions and expectations of executive sponsors, stakeholders, and supply chain transformation team members?


A. Project configuration document


B. Project charter


C. Work breakdown structure


D. Scope statement





B.
  Project charter

Explanation: According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, a project charter is a document that helps to align the assumptions and expectations of executive sponsors, stakeholders, and supply chain transformation team members1.It provides a clear and concise description of the project’s scope, objectives, benefits, risks, deliverables, roles and responsibilities, and authority of the project manager1.It also serves as a formal authorization for the project and a communication tool for the project team and other stakeholders1.

Which of the following approaches is best for an organization focused on developing a supply chain leadership mindset?


A. Pursue supply chain growth in lockstep with business growth.


B. Focus on resource optimization.


C. Emphasize the need to maximize profits.


D. Encourage cross-team collaboration.





D.
  Encourage cross-team collaboration.

Explanation: Ac-cording to the CTSC Exam Content Manual, developing a supply chain leadership mindset involves creating a culture of innovation, learning, and collaboration across the organization. A supply chain leader should encourage cross-team collaboration to leverage the diverse skills, perspectives, and experiences of different stakeholders, and to foster trust, communication, and alignment of goals and objectives. Cross-team collaboration can help the organization to identify and solve problems, generate and implement new ideas, and improve performance and customer satisfaction.

An organization studying its strategic environment for establishing the scope of its supply chain transformation project must first create a:


A. SWOT analysis.


B. business plan.


C. value proposition.


D. business issue repository.





D.
  business issue repository.

Explanation: According to the ASCM CTSC Exam Content Manual, a business issue repository is a tool that helps an organization to study its strategic environment for establishing the scope of its supply chain transformation project.A business issue repository is defined as "a collection of business issues that are identified and prioritized by the organization’s leadership team and other key stakeholders"1.A business issue repository helps to align the supply chain transformation objectives with the organization’s vision, mission, and strategy, and to identify the gaps and opportunities for improvement in the current supply chain performance1.A business issue repository also helps to communicate the rationale and benefits of the transformation to the internal and external stakeholders, and to monitor and measure the progress and outcomes of the transformation1.

Organizational roles and responsibilities should focus on which of the following areas to clarify who is responsible and accountable for each supply chain activity after the transformation initiative is complete?


A. Sales, accounting, and engineering


B. Sales, product management, and product development


C. Product management, product development, and quality


D. Sales, operations, and logistics





D.
  Sales, operations, and logistics

Explanation: According to the ASCM, one of the key steps in supply chain transformation is to define the organizational roles and responsibilities for each supply chain activity, and to ensure that they are aligned with the business strategy and customer expectations1.The ASCM also suggests that the supply chain activities can be grouped into three main categories: sales, operations, and logistics2.These categories reflect the core functions of the supply chain, from planning and executing the demand and supply, to delivering the products and services to the customers2. Therefore, organizational roles and responsibilities should focus on these three areas to clarify who is responsible and accountable for each supply chain activity after the transformation initiative is complete. Some examples of the roles and responsibilities in each area are:
Sales: Responsible for generating and managing the customer demand, forecasting the sales volume, and ensuring customer satisfaction and loyalty.Examples of roles are sales manager, account manager, customer service representative, and demand planner2.
Operations: Responsible for producing and sourcing the products and services, managing the inventory and quality, and optimizing the cost and efficiency.Examples of roles are operations manager, production manager, procurement manager, and quality manager2.
Logistics: Responsible for transporting and distributing the products and services, coordinating with the suppliers and carriers, and ensuring the delivery speed andreliability.Examples of roles are logistics manager, warehouse manager, transportation manager, and distribution manager2.

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.





C.
  Establish education and quality training.

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.

The primary role of the governance pillar in the Environmental, Social, and Governance (ESG) framework is to ensure that:


A. the company operates in an environmentally responsible manner.


B. the company operates in a socially responsible manner.


C. the company is managed in a responsible and ethical manner.


D. the company is managed in an economically responsible and profitable manner.





C.
  the company is managed in a responsible and ethical manner.

In addition to creating an internal and external profile of the organization, which of the following items is needed to define the scope of the supply chain transformation project?


A. Business description


B. Strategic background


C. Value proposition statement


D. SWOT analysis





B.
  Strategic background

Explanation: According to the CTSC exam content manual1, the strategic background is one of the items needed to define the scope of the supply chain transformation project, along with the internal and external profile of the organization. The strategic background includes the vision, mission, values, goals, and objectives of the organization, as well as the drivers and enablers of the transformation.

A comprehensive supply chain transformation action plan is mainly focused on which of the following outcomes?


A. Supply chain strategy being integrated with the business strategy to achieve top and bottom line improvements


B. Traditional metrics around supply chain performance being well developed across the organization


C. Perfect order targets being met while inventory levels always remain desirable


D. Best practices around Plan, Source, Transform, and Fulfill processes being part of daily business operations





A.
  Supply chain strategy being integrated with the business strategy to achieve top and bottom line improvements

Explanation: According to the ASCM, a comprehensive supply chain transformation action plan is a roadmap that guides the organization to align its supply chain strategy with its business strategy, and to achieve higher performance, efficiency, and sustainability in its supply chain operations1.The main outcome of such a plan is to enable the organization to deliver better value to its customers and stakeholders, and to improve its top and bottom line results1. Some of the steps involved in creating a supply chain transformation action plan are:

  • Assessing the current state of the supply chain and identifying the gaps and opportunities for improvement
  • Defining the future state of the supply chain and setting the vision, goals, and objectives
  • Developing the business case for change and securing the buy-in and support from the senior management and cross-functional teams
  • Selecting the best practices, methodologies, and technologies to implement the change and optimize the supply chain processes
  • Executing the change and monitoring the progress and results1
The other options are not the main focus of a comprehensive supply chain transformation action plan, but rather some of the aspects or outcomes of the plan. For example, traditional metrics around supply chain performance are important to measure the current state and the improvement potential, but they may not capture the strategic value and impact of the supply chain transformation2.Perfect order targets and inventory levels are some of the operational goals that the plan may aim to achieve, but they are not the ultimate outcome of the plan3.Best practices around Plan, Source, Transform, and Fulfill processes are some of the tools and methods that the plan may use to optimize the supply chain operations, but they are not the purpose of the plan4. Therefore, the most accurate answer is A.


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