Free APICS CTSC Practice Exam with Questions & Answers | Set: 2

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.

Supply risk is the risk of not being able to source the required raw materials, components, or services from suppliers to meet customer demand1.It can be caused by various factors, such as supplier failure, quality issues, natural disasters, geopolitical events, or market fluctuations1.Supply risk can affect the cost, quality, and delivery performance of a supply chain1.

1: https://www.ascm.org/ctsc-ecm/

According to the ASCM, the Connected Customer Capability allows companies to augment traditional transactional interactions to achieve effective and integrated customer engagement throughout the customer, product and service life cycles, from acquisition to service1.One of the benefits of this capability is to increase the awareness of the customers about the company’s products, services, and value proposition, as well as to generate more leads and referrals1.Awareness is the first stage of the customer journey, where the customer becomes aware of the company and its offerings, and decides whether to engage with the company or not1.By improving the connected customer capability, a company can use various channels and technologies to reach out to potential customers, provide relevant and personalized information, and create a positive impression that attracts and retains customers1. Therefore, awareness is the most likely outcome of enhancing the connected customer capability.

According to the CTSC exam content manual1, transform and return costs are two of the five cost categories in the SCOR model. Transform costs are the costs associated with converting raw materials into finished products, such as labor, materials, energy, depreciation, etc. Return costs are the costs associated with handling and disposing of defective or excess products, such as transportation, inspection, rework, recycling, etc. Transform costs are often captured in the cost of goods sold (COGS), which is the direct cost of producing the goods sold by a company. Return costs are often captured in claims, which are the expenses incurred by a company when customers return defective or unsatisfactory products.

a digital twin is a virtual representation of a real-world object or system. These virtual models are used to digitally represent performance, identify inefficiencies, and design solutions to improve their physical counterparts. A digital twin is a digital model designed to accurately reflect a physical object. The object being studied—for example, a wind turbine—is outfitted with various sensors related to vital areas of functionality. These sensors produce data about different aspects of the physical object’s performance, such as energy output, temperature, weather conditions and more. This data is then relayed to a processing system and applied to the digital copy. Once informed with such data, the virtual model can be used to run simulations, study performance issues and generate possible improvements, all with the goal of generating valuable insights—which can then be applied back to the original physical object. A digital twin is a digital representation of a real-world entity or system. The implementation of a digital twin is an encapsulated software object or model that mirrors a unique physical object, process, organization, person or other abstraction.

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, the capacity indicator is a KPI that measures the available time against total time minus dwell time1.Dwell time is the time that a process or resource is idle or waiting1.The capacity indicator shows how much of the total time is actually used for productive activities1.A higher capacity indicator means a higher utilization of the process and resources1.

1: https://www.ascm.org/ctsc-ecm/

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.

1: ASCM CTSC Exam Content Manual, page 14.

According to the ASCM CTSC Exam Content Manual, the formula for raw material inventory days of supply is the value of raw materials inventory divided by the “value of transfers divided by 365 days” 1. The value of transfers is the same as the cost of goods sold, which is the total cost of producing and delivering the prod-ucts to the customers 2. Therefore, the formula can be simplified as the value of raw materials divided by the cost of goods sold per day, which is the same as option A. The other options are incorrect because they either use the wrong numerator or denominator, or invert the ratio.

1:12:2