Authentic APICS Certification Exam CSCP Questions Answers

To handle disputes over damage to goods shipped between two countries, Incoterms® (International Commercial Terms) should be applied:

• Standardized Terms: Incoterms® provide internationally recognized standard terms that define the responsibilities of buyers and sellers in international transactions.
• Risk Management: They clarify at which point the risk and responsibility for the goods transfer from the seller to the buyer, helping to resolve disputes regarding damage during transit.
• Legal Clarity: Using Incoterms® ensures that both parties have a clear understanding of their obligations, reducing the potential for conflicts.
• Global Acceptance: Incoterms® are widely used and accepted across different countries and legal systems, making them a reliable reference in international trade disputes.

References:

• International Chamber of Commerce (2020). Incoterms® 2020: ICC rules for the use of domestic and international trade terms. ICC Publication.
• Schmitthoff, C. M., & Goode, R. (2007). Schmitthoff's Export Trade: The Law and Practice of International Trade. Sweet & Maxwell.

When data is scarce, the Delphi method is the most appropriate forecasting technique. This method involves:

• Expert Judgment: Gathering insights and opinions from a panel of experts through multiple rounds of surveys.
• Iterative Process: Experts revise their responses based on feedback until a consensus is reached.
• Scarcity of Data: Ideal for situations where historical data is limited or unavailable, relying instead on expert knowledge and experience.

References:

• "Forecasting: Principles and Practice" by Rob J Hyndman and George Athanasopoulos
• "Business Forecasting" by John E. Hanke and Dean W. Wichern

The most appropriate customer-facing goal to determine the target inventory level is the level of service because:

• Customer Expectations: The level of service directly reflects the ability of the supply chain to meet customer expectations in terms of product availability and delivery reliability.
• Service Level Metrics: Service levels are typically measured by metrics such as fill rate, order accuracy, and on-time delivery. These metrics help determine how well the inventory levels support customer demand without stockouts.
• Balancing Costs and Service: Maintaining an optimal level of service ensures that the company balances inventory costs with the need to meet customer requirements. High service levels often lead to increased customer satisfaction and loyalty.
• Inventory Management: Setting inventory levels based on the desired level of service helps in creating a responsive supply chain that can quickly adapt to changes in demand while minimizing excess inventory.

Inventory turns (Option A) are more focused on internal efficiency rather than customer satisfaction. Total delivery cost (Option C) is a cost-focused metric and may not reflect service adequacy. Delivery lead time (Option D) is important but is one component of service level rather than a comprehensive measure.

References

• "Inventory Management and Production Planning and Scheduling" by Edward A. Silver, David F. Pyke, and Rein Peterson.
• "Supply Chain Management: Strategy, Planning, and Operation" by Sunil Chopra and Peter Meindl.