APICS Certified Supply Chain Professional Exam Questions

The practice of supply chain members acting in close collaboration while retaining independent ownership is known as virtual integration. This term was introduced by Michael Dell in the 1990s to describe processes resulting from combining traditional supply chain vertical integration with the characteristics of the virtual organization1. Virtual integration allows supply chain partners to share information, coordinate activities, and leverage each other's capabilities, without having to merge or acquire each other. This can lead to improved efficiency, responsiveness, and innovation in the supply chain23. Vertical integration, on the other hand, is a business strategy where the business itself controls the supply chain and multiple stages of its production process, thus eliminating or reducing third-party vendor dependencies4. Forward integration and horizontal integration are types of vertical integration, where the business expands its control over the downstream or the same level of the supply chain, respectively4.

Causal forecasting is a method used to predict future events by examining the cause-and-effect relationships among variables. It goes beyond simple trend analysis and considers various factors that could influence the forecasted quantity.

Regression analysis is a statistical process for estimating the relationships among variables. In the context of causal forecasting, regression is used to identify and measure the impact of one or more independent variables on a dependent variable. This technique is particularly useful when you want to forecast a variable based on the relationship it has with other variables.

For example, a company might use regression analysis to forecast sales based on advertising spend, assuming that there is a causal relationship between advertising and sales. The regression model would allow the company to quantify the expected increase in sales for each unit of increased advertising spend.

Reference: The information provided here is based on the general principles of causal forecasting and regression analysis, which are well-established in the field of supply management and statistics

The practice of supply chain members acting in close collaboration while retaining independent ownership is known as virtual integration. This term was introduced by Michael Dell in the 1990s to describe processes resulting from combining traditional supply chain vertical integration with the characteristics of the virtual organization1. Virtual integration allows supply chain partners to share information, coordinate activities, and leverage each other's capabilities, without having to merge or acquire each other. This can lead to improved efficiency, responsiveness, and innovation in the supply chain23. Vertical integration, on the other hand, is a business strategy where the business itself controls the supply chain and multiple stages of its production process, thus eliminating or reducing third-party vendor dependencies4. Forward integration and horizontal integration are types of vertical integration, where the business expands its control over the downstream or the same level of the supply chain, respectively4.

Causal forecasting is a method used to predict future events by examining the cause-and-effect relationships among variables. It goes beyond simple trend analysis and considers various factors that could influence the forecasted quantity.

Regression analysis is a statistical process for estimating the relationships among variables. In the context of causal forecasting, regression is used to identify and measure the impact of one or more independent variables on a dependent variable. This technique is particularly useful when you want to forecast a variable based on the relationship it has with other variables.

For example, a company might use regression analysis to forecast sales based on advertising spend, assuming that there is a causal relationship between advertising and sales. The regression model would allow the company to quantify the expected increase in sales for each unit of increased advertising spend.

Reference: The information provided here is based on the general principles of causal forecasting and regression analysis, which are well-established in the field of supply management and statistics

According to the APICS CSCP - Supply Chain Management Certification, an internet-based trading exchange is a type of e-sourcing platform that connects buyers and sellers of goods and services online, allowing them to conduct transactions, compare prices, and access market information. Sourcing via an internet-based trading exchange would be most appropriate for inexpensive material for which there are several substitutes, as this type of material has low strategic importance and high supply availability, and can benefit from the lower transaction costs, increased competition, and reduced lead times offered by the online platform.