Free Certified in Transformation for Supply Chain Exam CTSC Exam Practice Test

What is an acceptable quality level (AQL) in the context of sampling inspection?

• The average quality level of a satisfactory process
• The minimum allowable number of defects in a sample
• The minimum acceptable level of product quality
• The limit of defective units acceptable in a continuing series of lots

A smartwatch seller wants to determine how many units of a new model release are required to be held as finished goods and how many units should be held as work-in-process (WIP) stockleading to the new model launch date. Which of the following analyses will allow the manufacturer to calculate the required stock levels to avoid backlogs, inventory losses, and other issues?

• Descriptive analysis
• Prescriptive analysis
• Scenario-based analysis
• Predictive analysis

Which of the following formulas correctly calculates the days of supply for raw materials?Value of raw materials / (Cost of goods sold / 365)Cost of goods sold / (Value of raw materials / 365)Value of raw materials / (Average raw material inventory / 365)Average raw material inventory / (Value of raw materials / 365)

• The other options are incorrect because they either use the wrong numerator or denominator, or invert the ratio.
• 1: 1 2: 2

After setting improvement priorities on the basis of strategic objectives, what is the next step when approaching supply chain transformation challenges?

• Develop the project portfolio.
• Select relevant key performance indicators (KPIs) to track ongoing performance.
• Design the transformation road map.
• Implement the solutions and manage the changes.

Which of the following formulas is utilized to calculate perfect order fulfillment?

• Total perfect orders / Total number of orders
• Total perfect orders / Total number of order lines
• Total perfect order lines / Total number of orders
• Total perfect order lines / Total number of order lines

Best-in-class companies consistently and significantly do better than their competitors because they:

• remove industry bias and generate graphical and analytical summaries.
• utilize benchmark supply chain metrics to gauge performance.
• use more cutting edge technology compared to their peers.
• streamline supply chain practices for delivering products and services.

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?

• Assess suppliers' capabilities.
• Analyze the inbound flow to the company's facility.
• Design internal operations to meet customers' requirements.
• Study and benchmark the company's operations.

When designing a new demand-driven supply chain, at what point should available technologies be evaluated?

• Technologies should be selected first, and then the supply chain should be designed around the technologies.
• Technology selection and supply chain design should occur over the same time period.
• Technologies should be evaluated after the supply chain is designed.
• Technology selection is not part of the new demand-driven supply chain process.

A widget manufacturing company wants to embark on a digital supply chain transformation journey. Which of the following activities should the company's leadership focus on in the beginning?

• Identifying areas of the business that can benefit the most from this in order to prioritize resources
• Incorporating this initiative in the budgeting process and asking the procurement team to research potential vendors in this space
• Providing a clear roadmap to the business and establishing conditions for greater process integration and cross-functional collaboration
• Hiring digital consultants and subject matter experts that can effectively advise the company at all stages in this journey

Which of the following drawbacks would result for an organization if it were to select transformation projects for implementation purely based on stand-alone benefits?

• Inaccuracies in measuring and analyzing targeted improvements
• Inefficiencies resulting from a lack of holistic visibility
• Inability to get quick buy-in from top management
• Compromising one of the competing priorities of cost and working capital