CTSC Exam PDF [2024] Tests Free Updated Today with Correct 153 Questions
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NEW QUESTION # 41
As an organization transforms its processes to be more sustainable, it should evaluate its practices in which three major categories?
- A. Suppliers, Governance, and Environment
- B. Ecological, Ethical, and Economic
- C. Plan, Source, and Fulfill
- D. Technology, Workforce, and Strategy
Answer: B
Explanation:
Explanation
According to the ASCM CTSC Exam Content Manual, ecological, ethical, and economic are the three major categories of practices that an organization should evaluate as it transforms its processes to be more sustainable.These categories are also known as the triple bottom line of sustainability, which measures the social, environmental, and financial impacts of an organization's activities1.Ecological practices refer to the environmental aspects of sustainability, such as reducing greenhouse gas emissions, waste, and resource consumption, and enhancing biodiversity and ecosystem services12.Ethical practices refer to the social aspects of sustainability, such as respecting human rights, labor standards, and diversity, and promoting health, safety, and well-being of employees and communities13.Economic practices refer to the financial aspects of sustainability, such as creating value for stakeholders, ensuring fair and transparent transactions, and investing in innovation and development14.
1: ASCM CTSC Exam Content Manual, page 9.2:Environmental Sustainability: Definition and Importance - Investopedia3:Social Sustainability: Definition, Importance, and Examples - Investopedia4:Economic Sustainability: Definition, Importance, and Examples - Investopedia
NEW QUESTION # 42
ISO 14001 outlines the management system requirements for which of the following areas?
- A. Occupational health and safety
- B. Quality
- C. Social responsibility
- D. Environmental
Answer: D
Explanation:
Explanation
It is part of the ISO 14000 family of standards that are developed by ISO Technical Committee ISO/TC 207 and its various subcommittees, and that cover different aspects of environmental management2.
NEW QUESTION # 43
Which of the following options is an indicator of change management performance?
- A. Awareness
- B. Quality
- C. Revenue
- D. Corporate social responsibility (CSR) score
Answer: A
NEW QUESTION # 44
Where are Transform and Return costs often captured in the supply chain, respectively?
- A. Cost of goods sold (COGS) and claims
- B. Supply chain fixed assets and accounts receivable
- C. Supply chain fixed assets and accounts payable
- D. Cost of goods sold (COGS) and warranty
Answer: A
Explanation:
Explanation
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.
NEW QUESTION # 45
Which of the following roles is generally defined as a sponsor of an improvement effort?
- A. Manager
- B. Steward
- C. Champion
- D. High performer
Answer: C
Explanation:
Explanation
According to the ASCM CTSC Exam Content Manual, a champion is generally defined as a sponsor of an improvement effort.A champion is "a senior leader who provides direction and support for a strategic initiative and ensures alignment with the organization's vision, mission, and goals"1.A champion is also responsible for securing resources, removing barriers, and empowering the improvement team to achieve the desired outcomes1.A champion acts as a role model, a mentor, and a spokesperson for the improvement effort and helps to communicate its value and benefits to the stakeholders1.
1: ASCM CTSC Exam Content Manual, page 9.
NEW QUESTION # 46
When forming teams for a digital supply chain transformation, one of the first steps is to:
- A. make each team cross-functional and ensure members on the teams come from different departments.
- B. gain support from senior and functional leadership to justify the time and resources allocated to the initiatives.
- C. identify the employees involved and their expected level of participation.
- D. assign subject matter experts to teams related to their areas of expertise.
Answer: A
Explanation:
Explanation
According to the ASCM CTSC Exam Content Manual, one of the key steps in forming teams for a digital supply chain transformation is to "create cross-functional teams that include members from different departments and levels of the organization, as well as external partners, to foster collaboration and innovation" (p. 16). This helps to ensure that the teams have diverse perspectives, skills, and knowledge to address the challenges and opportunities of the digital transformation.
NEW QUESTION # 47
The first step in performing a root cause analysis using the SCOR model involves:
- A. establishing process benchmarks.
- B. linking processes to metric hierarchy.
- C. identifying sources of deviation.
- D. decomposing performance attributes.
Answer: B
Explanation:
Explanation
According to the CTSC exam content manual1, the first step in performing a root cause analysis using the SCOR model involves linking processes to metric hierarchy, which means mapping the SCOR processes to the SCOR metrics and identifying the relevant performance attributes and levels. This step helps to establish the scope and boundaries of the analysis and to align the processes with the strategic objectives of the organization.
NEW QUESTION # 48
The primary role of the governance pillar in the Environmental, Social, and Governance (ESG) framework is to ensure that:
- A. the company operates in a socially responsible manner.
- B. the company operates in an environmentally 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.
Answer: C
NEW QUESTION # 49
A comprehensive supply chain transformation action plan is mainly focused on which of the following outcomes?
- A. Traditional metrics around supply chain performance being well developed across the organization
- B. Best practices around Plan, Source, Transform, and Fulfill processes being part of daily business operations
- C. Perfect order targets being met while inventory levels always remain desirable
- D. Supply chain strategy being integrated with the business strategy to achieve top and bottom line improvements
Answer: D
Explanation:
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.
NEW QUESTION # 50
SCOR metrics for the Sustainability performance attribute are closely aligned with which standards for corporate sustainability reporting?
- A. Global Reporting Initiative (GRI) Standards
- B. Individual Corporate Sustainability Reports
- C. UNESCO 4 Pillars of Sustainability
- D. Corporate Sustainability Reporting Directive (CSRD)
Answer: A
Explanation:
Explanation
According to the CTSC Exam Content Manual1,SCOR metrics for the Sustainability performance attribute are closely aligned with the Global Reporting Initiative (GRI) Standards, which are the most widely used standards for corporate sustainability reporting. The GRI Standards provide a framework and guidance for disclosing information on the economic, environmental, and social impacts of an organization's activities, products, and services. The SCOR metrics for Sustainability include indicators such as greenhouse gas emissions, energy consumption, water consumption, waste generation, and social responsibility.
1: https://www.ascm.org/ctsc-ecm/
NEW QUESTION # 51
In order to build organizational support to extend the supply chain initiative to the greater value chain, the core team should:
- A. gain consensus for a pilot project.
- B. define the scope of the greater value chain.
- C. determine whether other supply chain transformation is needed.
- D. identify value chain improvement roles.
Answer: B
Explanation:
Explanation
According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, the greater value chain is the network of organizations that collaborate to create and deliver value to the end customer1.It includes not only the supply chain, but also other stakeholders such as distributors, retailers, service providers, and even competitors1.To extend the supply chain initiative to the greater value chain, the core team should first define the scope of the greater value chain, which means identifying the key players, processes, and flows that are involved in creating and delivering value1.This will help the core team to understand the current state of the greater value chain, the opportunities and challenges for improvement, and the potential impact of the initiative on the overall value creation1.
1: https://www.ascm.org/ctsc-ecm/
NEW QUESTION # 52
Which of the following collaboration mechanisms involves the establishment of long-term relationships with partners to improve the overall efficiency and effectiveness of the supply chain?
- A. Supplier relationship management (SRM)
- B. Collaborative planning, forecasting, and replenishment (CPFR)
- C. Distribution resource planning (DRP II)
- D. Total quality management (TQM)
Answer: B
Explanation:
Explanation
According to the ASCM CTSC Exam Content Manual, CPFR is a collaboration mechanism that involves the establishment of long-term relationships with partners to improve the overall efficiency and effectiveness of the supply chain.CPFR is defined as "a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand"1.CPFR enables partners to share information, align plans, and synchronize activities across the supply chain, resulting in reduced inventories, improved service levels, and increased sales23.
1: ASCM CTSC Exam Content Manual, page 8.2:Six steps to successful supply chain collaboration | McKinsey3:Supply Chain Collaboration: Meaning, Importance, Features & Impact | GEP Blog
NEW QUESTION # 53
Which of the following metrics is measured as the value created by reducing or eliminating cost increases sought by supplier over and above prevailing baseline cost?
- A. Avoidance cost
- B. Direct material cost
- C. Opportunity cost
- D. Indirect material cost
Answer: A
Explanation:
Explanation
According to the CTSC Exam Content Manual, avoidance cost is one of the metrics used to measure the value created by the procurement function1.Avoidance cost is defined as the value created by reducing or eliminating cost increases sought by suppliers over and above prevailing baseline cost1.Avoidance cost is also known as cost avoidance, which is a proactive measure to prevent unnecessary expenses or losses2.Avoidance cost is different from cost savings, which is the value created by reducing the actual cost paid to suppliers below the prevailing baseline cost1.Cost savings is also known as hard cost savings, which is actualized, quantifiable and verifiable3.
NEW QUESTION # 54
Which of the following tools offers visualization to understand how effective processes are operating within the strategic plan by providing end-to-end supply chain transparency beyond conventional accounting measures?
- A. Balanced scorecard
- B. Supply chain control towers
- C. Benchmarking
- D. Gemba walk
Answer: A
Explanation:
Explanation
a balanced scorecard is a tool that offers visualization to understand how effective processes are operating within the strategic plan by providing end-to-end supply chain transparency beyond conventional accounting measures.A balanced scorecard is defined as "a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals"2.A balanced scorecard typically includes four perspectives: financial, customer, internal process, and learning and growth2.A balanced scorecard helps to translate the organization's vision and strategy into a coherent set of performance measures, and to monitor and manage the supply chain performance across multiple dimensions3.
1:Balanced Scorecard - an overview | ScienceDirect Topics2:Balanced Scorecard Basics - Balanced Scorecard Institute3:Balanced Scorecard for Supply Chain Management | Smartsheet: [Supply Chain Balanced Scorecard
- SlideShare]
NEW QUESTION # 55
A company is experiencing persistently high costs of poor quality in the supply base. What is the best approach to reduce those costs?
- A. Track costs of returns.
- B. Conduct supplier appraisals.
- C. Establish education and quality training.
- D. Inspect all received products.
Answer: C
Explanation:
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.
NEW QUESTION # 56
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