APICS CSCP Exam - Topic 5 Question 105 Discussion

Actual exam question for APICS's CSCP exam

Question #: 105
Topic #: 5

The practice of purchasing items in large quantities and requesting that shipments be delivered directly to customers is referred to as:

Adrop shipping.

Bcross-docking.

Cbreaking bulk.

Dfreight equalization.

Show Suggested Answer

Suggested Answer: D

Outsourcing innovative components can lead to several risks, but the primary risk is the loss of competitive knowledge:

Intellectual Property: When innovative components are outsourced, there is a risk that critical intellectual property and proprietary knowledge will be transferred to or accessed by suppliers.

Competitive Advantage: These components often embody the firm's core competencies and technological advantages. Losing control over these can diminish the company's competitive edge.

Dependency on Suppliers: Relying on external suppliers for innovative parts can reduce the firm's ability to rapidly adapt and innovate, leading to decreased flexibility and potential delays in response to market changes.

While decreased flexibility and higher carrying costs are concerns, they are secondary to the risk of losing competitive knowledge.

Pisano, Gary P., and Willy C. Shih. 'Restoring American Competitiveness.' Harvard Business Review.

Quinn, James Brian. 'Strategic Outsourcing: Leveraging Knowledge Capabilities.' Sloan Management Review.

by Jonelle at Jan 12, 2025, 03:22 AM

Limited Time Offer

25%

Off

Get Premium CSCP Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Ressie

5 months ago

Really? I always thought freight equalization was the answer.

upvoted 0 times

...

Mariann

5 months ago

Totally agree, drop shipping is the way to go!

upvoted 0 times

...

Bobbye

6 months ago

Breaking bulk sounds familiar, but not sure.

upvoted 0 times

...

Catarina

6 months ago

I thought it was cross-docking?

upvoted 0 times

...

Jules

6 months ago

It's definitely drop shipping!

upvoted 0 times

...

Lorean

6 months ago

Freight equalization? I don't recall that term being used in this context. I’m leaning towards drop shipping, though.

upvoted 0 times

...

Herminia

7 months ago

I feel like breaking bulk is related to this concept, but it doesn't quite match the description.

upvoted 0 times

...

Stefania

7 months ago

I remember practicing a question similar to this, and I think cross-docking was mentioned. But that doesn't seem to fit here.

upvoted 0 times

...

Helene

7 months ago

I think the answer might be drop shipping, but I'm not completely sure. It sounds familiar from our last class.

upvoted 0 times

...

Janessa

7 months ago

This is a tricky one, but I think the key is understanding the difference between these logistics terms. Drop shipping seems to be the best fit based on the description, but I'll double-check my notes just to be sure.

upvoted 0 times

...

Lyla

7 months ago

I'm a little confused by the options. I know drop shipping is a thing, but I'm not sure how it's different from the other choices like cross-docking or freight equalization. I'll have to make an educated guess on this one.

upvoted 0 times

...

Wayne

7 months ago

Okay, I remember learning about drop shipping in class. That's when the supplier ships directly to the customer instead of going through the retailer's warehouse. I'm confident that's the right answer here.

upvoted 0 times

...

Reuben

7 months ago

Hmm, I'm not totally sure about this one. Drop shipping, cross-docking, and breaking bulk all sound like they could be right. I'll have to think it through carefully.

upvoted 0 times

...

Delfina

7 months ago

This one seems pretty straightforward. I'm going to go with drop shipping since that's the practice of purchasing in bulk and having items shipped directly to customers.

upvoted 0 times

...

Justine

1 year ago

Whoever wrote this question must have been having a bad day. It's like they're trying to trick us or something!

upvoted 0 times

Donte

11 months ago

Yeah, I agree. It's definitely drop shipping.

upvoted 0 times

...

King

11 months ago

I think it's A) drop shipping too.

upvoted 0 times

...

Arlette

1 year ago

A) drop shipping.

upvoted 0 times

...

Brunilda

1 year ago

D) freight equalization? Really? That sounds like something completely different. I'm stumped on this one.

upvoted 0 times

Remona

11 months ago

A) drop shipping is a common method used by online retailers to fulfill orders without holding inventory.

upvoted 0 times

...

Gladys

11 months ago

C) breaking bulk involves dividing large quantities of goods into smaller units for distribution.

upvoted 0 times

...

Rosalind

11 months ago

B) cross-docking is when products are unloaded from one truck and loaded onto another for delivery.

upvoted 0 times

...

Therese

11 months ago

A) drop shipping is the correct term for this practice.

upvoted 0 times

...

Leah

11 months ago

C) breaking bulk.

upvoted 0 times

...

Ma

11 months ago

B) cross-docking.

upvoted 0 times

...

Marshall

1 year ago

A) drop shipping.

upvoted 0 times

...

Gertude

1 year ago

This question is tricky, but I'm going to go with A) drop shipping. It just makes the most sense to me.

upvoted 0 times

...

Bong

1 year ago

I'm not sure about this one. I'm going to guess C) breaking bulk, but I'm not totally confident.

upvoted 0 times

...

Alpha

1 year ago

I think the correct answer is B) cross-docking. It sounds like the most logical way to deliver items directly to customers.

upvoted 0 times

Mila

12 months ago

Actually, the correct answer is A) drop shipping. It involves shipping items directly from the manufacturer to the customer without going through a retailer.

upvoted 0 times

...