APICS Certified Supply Chain Professional Practice Tests and PDFs

Collaborative supply chain management focuses on the integration and coordination of the supply chain entities to enhance overall performance. Unlike a transactional approach, which primarily emphasizes the exchange of goods or services, a collaborative approach emphasizes the flow of demand information and cash up the chain. This means that information about customer demand and financial transactions move upstream, enabling all parties in the supply chain to better plan and execute their operations in alignment with actual market demand, leading to improved efficiency and responsiveness. Reference: Lambert, D. M. (2008). Supply Chain Management: Processes, Partnerships, Performance. Supply Chain Management Institute. Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., & Zacharia, Z. G. (2001). Defining supply chain management. Journal of Business logistics, 22(2), 1-25.

The primary objective of supply chain management is to take a systems approach. This involves viewing the supply chain as a whole, rather than as a collection of separate entities. By taking a systems approach, supply chain management aims to integrate and coordinate the activities of suppliers, manufacturers, and distributors to optimize overall performance and achieve efficiencies across the entire supply chain. This holistic perspective ensures that decisions made in one part of the supply chain consider the impacts on other parts, leading to improved customer satisfaction, reduced costs, and better use of resources. Reference: Christopher, M. (2016). Logistics & Supply Chain Management. Pearson UK. Stadtler, H., & Kilger, C. (Eds.). (2008). Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case Studies. Springer Science & Business Media.

The flow of demand information in a supply chain starts with the customer, who initiates demand for products or services. This demand information then moves upstream to the manufacturer, who needs to know the customer demand to plan production and control inventory. From the manufacturer, the demand information continues upstream to the supplier, who provides the raw materials or components needed for manufacturing. Therefore, the complete flow of demand information is accurately described as moving from the customer to the supplier. Reference: 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.

The Supply-Chain Operations Reference-model (SCOR) is a process reference model that provides a comprehensive framework for evaluating and improving supply chain performance. It includes best practices for various supply chain processes such as plan, source, make, deliver, return, and enable. In this context, the production and engineering departments using SCOR best practices to design a new "make" process flow is a correct application of the model. The "make" process in SCOR focuses on production activities, and leveraging SCOR's best practices helps in designing efficient and effective production processes. Reference: Supply Chain Council. (2012). Supply Chain Operations Reference Model (SCOR) Version 11.0. Supply Chain Council, Inc. Bolstorff, P., & Rosenbaum, R. (2007). Supply Chain Excellence: A Handbook for Dramatic Improvement Using the SCOR Model. AMACOM.

In a supply chain network, the levels can be categorized into various stages, from raw material suppliers to end customers. The "most upstream external activity" refers to the earliest stage in the supply chain that is external to the organization. Here’s a breakdown of the options: Supplier to contractor: This represents the activity between the supplier (who provides raw materials) and a contractor (who might process these materials). This is the most upstream activity as it deals with the initial stages of acquiring raw materials. Manufacturing to supplier: This would imply the flow from manufacturing (internal) back to the supplier, which doesn't fit the context of upstream activity. Customer to distribution: This is a downstream activity, focusing on moving products closer to the end customer. Customer to contractor: This is also downstream and focuses on the interaction after the product is finished. Thus, "Supplier to contractor" is the most upstream external activity, dealing with raw material acquisition and initial processing stages. Reference: Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Mentzer, J. T. (2001). Supply Chain Management.