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Additional Alternate aid edition Additional aid title sequence number number APICS CSCP Exam Content Manual
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2012 APICS CSCP EXAM CONTENT MANUAL (ECM) Introduction Section A: Supply Chain Management Concepts
It's a World of Global, Complex, Interdependent Supply Chains Basic Supply Chain The SCOR Model: Linking Processes, Metrics, Best Practices, and Technologies Vertical versus Horizontal Integration Supply Chain Management Objectives Supply Chain Management Benefits Accounting and Financial Statement Basics
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1-70 1-74 1-106
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1-115 1-118 1-124
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1-148 1-151 1-153 1-155 1-157 1-159
Page 3 of 17
vi vii 1
2
4 5 6 7 9 9 10 11 12 12 14 16 16 16 17 18 18 19 20
CHAPTER 2
Logistics
The Logistics of Business Is Big and Important The Logistical Value Proposition Service Benefits Cost Minimization Logistics Value Generation The Work of Logistics Order Processing Inventory Transportation Warehousing, Materials Handling, and Packaging Facility Network Design Logistical Operations Inventory Flow Information Flow Logistical Integration Objectives Responsiveness Variance Reduction Inventory Reduction Shipment Consolidation Quality Life Cycle Support Logistical Operating Arrangements Echelon Direct Combined Flexible Structure Supply Chain Synchronization
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22 23 24 25 26 26 26 27 28 29 30 31 31 33 34 34 34 34 35 35 35 36 36 36 37 38 40
Page 4 of 17
41 43 45 46
CHAPTER 3
Customer Accommodation
Customer-Focused Marketing Transactional versus Relationship Marketing Supply Chain Service Outputs Customer Service Availability Operational Performance Service Reliability The Perfect Order Basic Service Platforms Customer Satisfaction Customer Expectations A Model of Customer Satisfaction Increasing Customer Expectations Limitations of Customer Satisfaction Customer Success Achieving Customer Success Value-Added Services Developing Customer Accommodation Strategy Framework for Strategic Choice Customer Relationship Management Summary Challenge Questions
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48 49 50 52 53 54 55 56 57 58 58 59 62 62 63 64 65 66 66 68 68 69
CHAPTER 4
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72 72 73 74 74 75 78 81 81 82 82 86 88 90 90 90 91 91 92 92 92 93 94
CHAPTER 5
Information Technology
Information System Functionality Supply Chain Information System Modules ERP Data Warehouse Enterprise Integration and Administration
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96 98 100 101
Page 5 of 17
Enterprise Operations Enterprise Planning and Monitoring Communication Technology Enterprise Operations Customer Accommodation Logistics Manufacturing Purchasing Inventory Deployment Enterprise Planning and Monitoring Sales and Operations Planning Supply Chain Visibility and Event Management Supply Chain Compliance Communication Technology Bar Code and Scanning Global Data Synchronization Internet Extensible Markup Language Satellite Image Processing Software as a Service Summary Challenge Questions
102 103 103 104 104 106 109 110 110 117 117 118 119 119 120 121 125 127 128 128 129 130 131
CHAPTER 6
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133 133 133 134 134 134 135 135 136 138 138 138 141 141 142 144 147 150 151 152
PART II
CHAPTER 7
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157 158 159 162 162 162 162 163 163 163 163
Page 6 of 17
How Much to Order Managing Uncertainty Demand Uncertainty Performance Cycle Uncertainty Safety Stock with Combined Uncertainty Estimating Fill Rate Dependent Demand Replenishment Inventory Management Policies Inventory Control Reactive Methods Planning Methods Collaborative Inventory Replenishment Inventory Management Practices Product/Market Classification Segment Strategy Definition Policies and Parameters Summary Challenge Questions
164 168 168 172 173 176 178 178 179 181 182 187 188 188 190 190 190 191
CHAPTER 8
Transportation Infrastructure
Transport Functionality, Principles, and Participants Transport Functionality Transport Principles Transport Participants Transportation Regulation Types of Regulation History of Regulation Transportation Structure Rail Truck Water Pipeline Air Modal Classification Infrastructure in Crisis Transportation Service Traditional Carriers Package Service Intermodal Transportation Nonoperating Intermediaries Summary Challenge Questions
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193 193 194 194 196 197 198 203 203 205 206 207 208 208 209 210 210 210 213 216 217 217
CHAPTER 9
Transportation Operations
Transportation Economics and Pricing Economic Drivers Costing Carrier Pricing Strategy Rates and Rating Transport Administration Operational Management Consolidation Negotiation Control Auditing and Claim Administration Logistical Integration Documentation Bill of Lading Freight Bill
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219 219 221 222 223 229 230 232 233 234 235 235 236 236 236
Page 7 of 17
Shipment Manifest Pricing Pricing Fundamentals Pricing Issues Menu Pricing Summary Challenge Questions
CHAPTER 10 Warehousing
Strategic Warehousing Economic Benefits Service Benefits Warehouse Operations Handling Storage Warehouse Ownership Arrangements Private Public Contract Network Deployment Warehouse Decisions Site Selection Design Product-Mix Analysis Expansion Materials Handling Layout Sizing Warehouse Management Systems (WMS) Accuracy and Audits Security Safety and Maintenance Summary Challenge Questions
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247 248 252 253 253 255 257 257 258 258 259 259 259 260 260 261 261 261 263 263 265 265 267 267 268
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269 272 272 273 275 276 276 277 278 280 283 284 285 286
PART III
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Page 8 of 17
Rationale for Low-Cost-Country Sourcing Challenges for Low-Cost-Country Sourcing Guidelines for Sourcing Summary Challenge Questions
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303 304 304 305 305 306 306 307 308 309 309 311 317 319 320 320 321 324 325 326
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327 328 329 334 336 337 339 341 341 342 343 343 344 350 353 355 356 356 358
PART IV
ADMINISTRATION
Development and Management of Internal Logistics Relationships Functional Aggregation A Shift in Emphasis from Function to Process Virtuality and Organization Transparency Leading Organization Change Development and Management of Supply Chain Relationships Risk, Power, and Leadership The Range of Extended Supply Chain Relationships
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360 361 363 367 368 369 370 371
Page 9 of 17
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405 406 409 410 411 412 413 416 417 419 419 421 421 423 424
Page 10 of 17
CHAPTER 2
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27 31 33 33 36 36 39 41 42 45 45 47 48 49 52 52 56 57 58 58 59 59 59 60 60 63
CHAPTER 3
NETWORK PLANNING
CASE: THE Bis CORPORATION 3.1 Introduction 3.2 Network Design 3.2.1 Data Collection 3.2.2 Data Aggregation
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79 81 82 84 84
Page 11 of 17
3.2.3 Transportation Rates 3.2.4 Mileage Estimation 3.2.5 Warehouse Costs 3.2.6 Warehouse Capacities 3.2.7 Potential Warehouse Locations 3.2.8 Service Level Requirements 3.2.9 Future Demand 3.2.10 Model and Data Validation 3.2.11 Solution Techniques 3.2.12 Key Features of a Network Configuration SCP 3.3 Inventory Positioning and Logistics Coordination 3.3. I Strategic Safety Stock CASE: ELECCOMP INC. 3.3.2 Integrating Inventory Positioning and Network Design 3.4 Resource Allocation Summary Discussion Questions CASE: H. C. STARCK, INC.
CHAPTER 4
SUPPLY CONTRACTS
CASE: AMERICAN TOOL WORKS 4.1 Introduction 4.2 Strategic Components 4.2.1 Supply Contracts 4.2.2 Limitations 4.3 Contracts for Make-to-Stock/Make-to-Order Supply Chains 4.4 Contracts with Asymmetric Information 4.5 Contracts for Nonstrategic Components Summary Discussion Questions
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127 128 129 129 134 135 139 140 142 143
CHAPTER 5
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147 158 159 161 163 166 167 169 169 170 171 171 172 172 175 176 176 177
CHAPTER 6
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185 195 195 195 196 197
Page 12 of 17
6.2.4 Identifying the Appropriate Supply Chain Strategy 6.2.5 Implementing a Push-Pull Strategy 6.3 The Impact of Lead Time 6.4 Demand-Driven Strategies 6.5 The Impact of the Internet on Supply Chain Strategies 6.5.1 What Is E-Business? 6.5.2 The Grocery Industry 6.5.3 The Book Industry 6.5.4 The Retail Industry 6.5.5 Impact on Transportation and Fulfillment Summary Discussion Questions CASE: THE GREAT INVENTORY CORRECTION
198 200 202 204 205 206 207 207 208 209 209 210 210
CHAPTER 7
DISTRIBUTION STRATEGIES
CASE: AMAZON.COM'S EUROPEAN DISTRIBUTION STRATEGY 7.1 Introduction 7.2 Direct Shipment Distribution Strategies 7.3 Intermediate Inventory Storage Point Strategies 7.3.1 Traditional Warehousing 7.3.2 Cross-Docking 7.3.3 Inventory Pooling 7.4 Transshipment 7.5 Selecting an Appropriate Strategy Summary Discussion Questions
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215 238 238 239 240 241 242 247 247 248 249
CHAPTER 8
STRATEGIC ALLIANCES
CASE: HOW KIMBERLY-CLARK KEEPS CLIENT COSTCO IN DIAPERS 8.1 Introduction 8.2 A Framework for Strategic Alliances 8.3 Third-Party Logistics 8.3.1 What Is 3PL? 8.3.2 Advantages and Disadvantages of 3PL 8.3.3 3PL Issues and Requirements 8.3.4 3PL Implementation Issues 8.4 Retailer-Supplier Partnerships 8.4.1 Types of RSP 8.4.2 Requirements for RSP 8.4.3 Inventory Ownership in RSP 8.4.4 Issues in RSP Implementation 8.4.5 Steps in RSP Implementation 8.4.6 Advantages and Disadvantages of RSP 8.4.7 Successes and Failures 8.5 Distributor Integration 8.5.1 Types of Distributor Integration 8.5.2 Issues in Distributor Integration Summary Discussion Questions CASE: AUDIO DUPLICATION SERVICES, INC. (ADS) CASE: THE SMITH GROUP CASE: MARUTI UDYOG LIMITED
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251 254 256 257 258 258 260 261 262 262 263 264 265 265 266 267 268 268 269 270 270 271 272 273
CHAPTER 9
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277 291 292 294 296
Page 13 of 17
9.4.1 Supplier Footprint 9.5 E-Procurement Summary Discussion Questions CASE: SOLECTRON: FROM CONTRACT MANUFACTURER TO GLOBAL SUPPLY CHAIN INTEGRATOR
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321 324 325 326 326 327 327 328 330 333 334 335 335 336 337 338 338 338 339 340 340 340 341
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343 351 354 354 355 356 357 361 361 362 363 365 365 366 367 367 367 368 369 369 370 370
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377
Page 14 of 17
12.1 Introduction 12.2 The Dimensions of Customer Value 12.2.1 Conformance to Requirements 12.2.2 Product Selection 12.2.3 Price and Brand 12.2.4 Value-Added Services 12.2.5 Relationships and Experiences 12.2.6 Dimensions and Achieving Excellence 12.3 Customer Value Measures 12.4 Information Technology and Customer Value Summary Discussion Questions
380 382 382 384 387 388 389 391 392 395 397 398
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399 400 401 402 403 405 408 408 410 411 412 413 413 414
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419 421 422 428 432 435 436 439 442 442 445 446 447 448 449
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451 452 453 455 455 455 457 460 460 462
Page 15 of 17
15.4.3 Conclusion 15.5 Radio Frequency Identification (RFID) 15.5.1 Introduction 15.5.2 RFID Applications 15.5.3. RFID and Point-of-Sale Data 15.5.4 Business Benefits 15.5.5 Supply Chain Efficiency Summary Discussion Questions
473
473 479 479 480 481 482 482 483
APPENDIX A
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485 485 486 487 488 488 489 490 492 493 493 493 496 497 498
APPENDIX B
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500 500 501 501 502 503 503 503 504 504 506
APPENDIX C
EXCEL SPREADSHEET
C.1 introduction C.2 The Spreadsheet
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508 508
APPENDIX D
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509 509 510
Page 16 of 17
BOBILOGRAPHY INDEX
511 521
Page 17 of 17