2: SUPPLY CHAIN REFERENCE MODEL

Question 1

Agility

Answer 1

In the context of APICS, agility refers to the ability of a supply chain to adapt and respond quickly to changes in customer demand, market conditions, and other external factors. Agile supply chains are characterized by flexibility, speed, and a focus on customer service.

Question 2

Assemble-to-order (ATO)

Answer 2

Assemble-to-order is a production strategy in which products are assembled only after a customer order is received. This approach allows for greater customization and flexibility in the production process, but may also result in longer lead times and higher inventory costs.

Question 3

Asset management

Answer 3

Asset management in the context of APICS refers to the management and optimization of physical assets such as equipment, tools, and facilities in order to improve efficiency, productivity, and profitability.

Question 4

Benchmarking

Answer 4

Benchmarking in the context of APICS refers to the process of comparing an organization’s performance against that of other organizations in order to identify areas for improvement. This can include comparing performance metrics such as inventory turnover, lead times, and on-time delivery.

Question 5

Central warehouse

Answer 5

A central warehouse in the context of APICS refers to a warehouse that serves as the main distribution center for a company, from which products and materials are distributed to other warehouses, retail locations, or directly to customers.

Question 6

Configure-to-order (CTO)

Answer 6

Configure-to-order is a production strategy in which products are configured to meet specific customer requirements after the order is received. This approach allows for greater customization and flexibility, but may also result in longer lead times and higher inventory costs.

Question 7

Customer

Answer 7

In the context of APICS, a customer refers to an individual or organization that purchases products or services from a company.

Question 8

Customer order cycle time

Answer 8

Customer order cycle time in the context of APICS refers to the time elapsed from the receipt of a customer order to the delivery of the final product. It includes lead time, production time, and delivery time.

Question 9

Customer service ratio

Answer 9

A customer service ratio is a metric used to measure the level of customer service provided by a company. It is calculated as the percentage of orders filled on time, divided by the total number of orders received.

Question 10

Deliver

Answer 10

In the context of APICS, deliver refers to the process of providing a product or service to a customer.

Question 11

Distributor warehouse

Answer 11

A distributor warehouse in the context of APICS refers to a warehouse that serves as a distribution center for a company’s products or services, but may also provide additional services such as assembly or packaging.

Question 12

Enable

Answer 12

In the context of APICS, enable refers to the process of providing the necessary resources and support to allow a company or supply chain to function effectively.

Question 13

Engineer-to-order (ETO)

Answer 13

Engineer-to-order is a production strategy in which products are designed and engineered to meet specific customer requirements after the order is received. This approach allows for greater customization and flexibility, but may also result in longer lead times and higher inventory costs.

Question 14

Fill rate

Answer 14

Fill rate is a measure of a company’s ability to meet customer demand for its products. It is typically expressed as a percentage, and is calculated by dividing the number of units of a product that are successfully delivered to customers by the total number of units that were ordered. A high fill rate indicates that a company is able to meet customer demand for its products and is considered an indicator of good inventory management. In the context of the APICS Certified Supply Chain Professional (CSCP) exam, fill rate is an important concept in the area of inventory management and logistics.

Question 15

Final assembly schedule (FAS)

Answer 15

The final assembly schedule (FAS) in the context of APICS refers to the schedule of when final assembly of products will take place, taking into account the availability of components and materials, production capacity, and customer demand.

Question 16

Finish-to-order (FTO)

Answer 16

Finish-to-order is a production strategy in which products are finished or customized to meet specific customer requirements after the order is received. This approach allows for greater customization and flexibility, but may also result in longer lead times and higher inventory costs.

Question 17

Intermittent

Answer 17

In the context of APICS, intermittent refers to a production process or system that operates in an unpredictable or irregular manner, with varying levels of demand or production.

Question 18

Key performance indicators (KPls)

Answer 18

In the context of APICS, key performance indicators (KPIs) are measurable values that are used to evaluate the performance of a supply chain or organization. These can include metrics such as inventory turnover, fill rate, lead time, and customer satisfaction.

Question 19

Level of service

Answer 19

In the context of APICS, level of service refers to the level of responsiveness and customer service provided by a supply chain or organization. It can be measured by metrics such as fill rate, lead time, and customer satisfaction.

Question 20

Make

Answer 20

In the context of APICS, make refers to the process of producing a product or service, including the sourcing of raw materials, manufacturing, assembly, and packaging.

Question 21

Make-to-order (MTO)

Answer 21

Make-to-order is a production strategy in which products are manufactured only after a customer order is received. This approach allows for greater customization and flexibility in the production process, but may also result in longer lead times and higher inventory costs.

Question 22

Make-to-stock (MTS)

Answer 22

Make-to-stock is a production strategy in which products are manufactured based on forecasted demand, rather than actual customer orders. This approach typically results in lower lead times and inventory costs, but may also result in higher levels of excess inventory and stockouts.

Question 23

Manufacturing environment

Answer 23

In the context of APICS, manufacturing environment refers to the overall setting and conditions in which manufacturing takes place, including factors such as equipment, facilities, labor, and regulations.

Question 24

Order fill rate

Answer 24

In the context of APICS, order fill rate refers to the percentage of customer orders that are fulfilled on time and in full. It is a key metric in measuring the performance of a supply chain or organization.

Question 25

Order fulfillment cycle time

Answer 25

In the context of APICS, order fulfillment cycle time refers to the total time elapsed from the receipt of a customer order to the delivery of the final product, including lead time, production time, and delivery time.

Question 26

Package-to-order (PTO)

Answer 26

Package-to-order is a production strategy in which products are packaged to meet specific customer requirements after the order is received. This approach allows for greater customization and flexibility, but may also result in longer lead times and higher inventory costs.

Question 27

Perfect order fulfillment

Answer 27

In the context of APICS, perfect order fulfillment refers to the ability of a supply chain or organization to fulfill customer orders on time, in full, and with no errors.

Question 28

Plan

Answer 28

In the context of APICS, plan refers to the process of developing strategies and tactics for managing the supply chain, including forecasting, production planning, inventory management, and logistics.

Question 29

Producer

Answer 29

In the context of APICS, a producer refers to an individual or organization that produces goods or services.

Question 30

Reliability

Answer 30

In the context of APICS, reliability refers to the ability of a supply chain or organization to consistently meet customer demand, deliver products and services on time, and maintain quality standards.

Question 31

Repetitive manufacturing

Answer 31

In the context of APICS, repetitive manufacturing refers to a production process or system in which the same products are produced in large quantities and at regular intervals.

Question 32

Responsiveness

Answer 32

In the context of APICS, responsiveness refers to the ability of a supply chain or organization to quickly adapt to changes in customer demand, market conditions, and other external factors.

Question 33

Retail

Answer 33

In the context of APICS, retail refers to the sale of products or services directly to consumers through retail outlets, such as stores or online platforms.

Question 34

Return

Answer 34

In the context of APICS, return refers to the process of receiving back products or services that have been sold, for reasons such as customer dissatisfaction or product defects.

Question 35

Service provider

Answer 35

In the context of APICS, a service provider refers to an individual or organization that provides a service, such as logistics, transportation, or repair services.

Question 36

Source

Answer 36

In the context of APICS, source refers to the process of obtaining the raw materials, components, or services needed to produce or deliver a product or service.

Question 37

Supplier

Answer 37

In the context of APICS, a supplier refers to an individual or organization that provides goods or services to a company.

Question 38

Supply chain asset management (SCAM)

Answer 38

Supply chain asset management (SCAM) in the context of APICS refers to the management and optimization of physical assets such as equipment, tools, and facilities in order to improve efficiency, productivity, and profitability within a supply chain.

Question 39

Supply chain cost

Answer 39

In the context of APICS, supply chain cost refers to the total cost incurred in managing and operating a supply chain, including costs such as materials, labor, transportation, and inventory.

Question 40

Supply Chain Council (SCC)

Answer 40

The Supply Chain Council (SCC) is a professional organization dedicated to promoting best practices in supply chain management. It offers education, training, certification, and research opportunities for professionals in the field.

Question 41

Supply Chain Operations Reference Model (SCOR)

Answer 41

The Supply Chain Operations Reference Model (SCOR) is a widely used framework for supply chain management, developed by the Supply Chain Council (SCC). It provides a common language and methodology for analyzing and improving supply chain performance.

Question 42

Total cost to serve

Answer 42

In the context of APICS, total cost to serve refers to the total cost incurred in serving a customer, including costs such as materials, labor, transportation, and inventory.

Question 43

Unique device identifier (UDI)

Answer 43

It is a unique identification code that is assigned to a medical device or equipment, it is used to identify and track the device throughout its life cycle, including during production, distribution, use, and disposal. It helps to ensure that the right device is used on the right patient, at the right time, and by the right person. UDI also allows for easier tracking and recall of devices in case of defects or safety concerns. It’s a requirement by FDA to have UDI on certain medical devices.