APICS Certified

Supply Chain Professional

[CSCP]
Exam
Content
Manual
2013
Stock# 09031-2013
 APICS CSCP
Exam Content Manual
This manual is in effect from
January 1, 2013, through December 2013.

Visit apics.org/ECMerrata for APICS CSCP Exam Content Manual errata.

The references in this manual have been selected solely on the basis of their educational value to the APICS
CSCP certification program and on the content of the material. APICS does not endorse any services or other
materials that may be offered or recommended by the authors or publishers of books and publications listed in
this manual.

2013 APICS The Association for Operations Management

8430 West Bryn Mawr Avenue, Suite 1000

Chicago, IL 60631-3439 USA
Phone: 1-800-444-2742 or +1-773-867-1777
Fax: +1-773-639-3000

No portion of this document may be reproduced under any circumstances. CSCP is a registered trademark of
APICS.

Stock #09031-2013
Table of Contents
Letter to Candidates ....................................................................................................................................................... 1

Introduction ..................................................................................................................................................................... 2

About the APICS CSCP Examination............................................................................................................................. 2

Question Format ............................................................................................................................................... 2

Taking the Test .................................................................................................................................................. 3

Interpreting Test Scores .................................................................................................................................... 3

Studying for the APICS CSCP Exam.... 3

APICS CSCP References. 3

Terminology.... 4

Additional Resources for APICS CSCP Candidates.... 4

APICS CSCP Learning System.......................................................................................................................... 4

APICS CSCP Instructor-Led Review Courses................................................................................................... 4

APICS Educational Programs............................................................................................................................ 4

APICS Certified in Production and Inventory Management (CPIM) Basics of Supply Chain Management

(BSCM) Review Course and Examination............................................................................................ 5

APICS CSCP Certification Maintenance: Continuing Professional Development ......................................................... 5

The Importance of Certification Maintenance.................................................................................................... 5

APICS Code of Ethics .................................................................................................................................................... 5

APICS Certified Supply Chain Professional (CSCP)...................................................................................................... 6

Scope of the Subject Matter .............................................................................................................................. 6

APICS CSCP Content ....................................................................................................................................... 6

Content Outline ................................................................................................................................................. 7

Key Terminology .............................................................................................................................................. 12

Supplemental Glossary .................................................................................................................................... 14

Bibliography ..................................................................................................................................................... 15

Sample Questions......................................................................................................................................................... 17

Answers to Sample Questions....................................................................................................................................... 19

CSCP Exam Content Manual i

 Implementation and Operations
Letter to Candidates This section covers managing and balancing supply and
demand through measuring, analyzing, and improving
Dear Candidate: supply chain processes.

On behalf of all the members of APICS The Association
for Operations Management and the Certified Supply
Chain Professional (CSCP) Subcommittee, I want to
thank you for your interest in the APICS CSCP program.
APICS is the global leader and premier source of the
body of knowledge in operations management, including
production, inventory, supply chain, purchasing, and
logistics. Since 1957, individuals and companies have
relied on APICS for its superior training, internationally
recognized certifications, comprehensive resources, and
worldwide network of accomplished industry
professionals.
This APICS CSCP Exam Content Manual is intended to
provide you with an overview of the program, an outline
of its body of knowledge, key terminology, and
references. The outline is divided into three diagnostic
areas, and the relative emphasis of each of the areas is
indicated by a percentage figure. A sample of 10
illustrative questions is also provided. The APICS CSCP
Exam Content Manual should not be the only reference
you use to prepare for the CSCP exam; however, it
should be the first. We wish you success in your pursuit
of the CSCP designation.

The APICS CSCP program is primarily intended for

professionals in supply chain management and is
designed to test the candidates knowledge of and ability
Roly White, CFPIM, CIRM, CSCP
to apply the supply chain management body of
CSCP Subcommittee Chair
knowledge. By earning the APICS CSCP designation,
candidates have demonstrated their understanding of
supply chain management best practices.

The APICS CSCP program will help you advance your

career while giving you validated foundational
knowledge to assist in improving your company's
competitive position and profitability. The program takes
a broad view of the field, extending beyond internal
operations to encompass all the steps throughout the
supply chainfrom the supplier, through the company,
to the end consumer and the reverse flow of products
and materials for the purpose of managing returns,
refurbishing, or recycling. The program provides you with
the knowledge to effectively manage the integration of
these activities to maximize a company's value chain.

The subject matter is organized into three content areas.

Fundamentals of Supply Chain Management

This section provides the foundation for the exam by
addressing the concepts and strategies used for
effective supply chain management. It includes an
overview of supply chain management, managing the
supply chain, and improving the supply chain.

Strategy, Design, and Compliance

This section addresses considerations in the design of a
supply chain, the processes that support the
organizations strategy, improvement of the sustainability
of the organization and its trading partners, and
compliance with applicable regulations and voluntary
standards.

CSCP Exam Content Manual 1


Introduction
This exam content manual provides guidance for
individuals preparing for the certification examination.
The objective of this manual is to outline the APICS
CSCP tested body of knowledge.
The main section of this manual begins with a statement
of the scope of the subject matter, followed by a
descriptive outline of the content. Key terminology and a
bibliography of references are provided. The section
concludes with sample questions similar to those that
appear on the examination, the correct answers for the
sample questions, and brief explanations of why they are
correct.
The recommended procedure for mastering the subject
matter is to
review the content outline, which defines the scope
of the material
study each topic, using the suggested references.
At the end of each major section is a list of the
references that apply to the topics in that section. The
first number indicates the sequence number for the
reference in the Bibliography section, and the numbers
in parentheses indicate the chapter(s) within that
reference.
Candidates should understand the definitions of the key
terms and the application of the outlined tools and
techniques.
Sufficient references are given that provide different
approaches to the material covered in each diagnostic
area and different styles of presenting the information.
Reading industry-related periodicals, such as APICS
magazine and the APICS Operations Management Now
e-newsletter, will help you maintain an awareness of
changes in the state of the art.
About the APICS CSCP
Examination
The APICS CSCP exam consists of 175 multiple choice
questions. There is a four-hour time limit for the exam.
For more information about testing and registration
policies and procedures, call APICS Customer Service
at 1-800-444-2742 (United States and Canada), or +1-
773-867-1777 and order a current APICS CSCP
Certification Bulletin, or visit the APICS website at
apics.org/cscp. Candidates who plan to test in North
2 2012 APICS The Association for Operations Management
America should request stock #09056, and candidates
testing outside North America should request stock
#09057.
Question Format
All of the questions on the CSCP examination are
intended to test one's understanding of the CSCP body
of knowledge. In addition, it is helpful for one to
understand the various formats of questions on the
examination. The following five examples illustrate the
types of multiple choice questions that one may find on
the examination:
For Example 1, choose the response that best
completes the statement.
Example 1: The 80-20 rule is an application of:
(A) statistical process control
(B) defect measurement
(C) root cause analysis
(D) Pareto analysis
(The correct answer is D.)
For Example 2, choose the response that best answers
the question.
Example 2: Which of the following is used as a key
performance indicator (KPI) to measure variability of
demand through the supply chain?
(A) bullwhip effect
(B) fill rate
(C) inventory turns
(D) internal failure
(The correct answer is A.)
For Example 3, choose the one response that does NOT
correctly complete the statement.
Example 3: All of the following are examples of
voice of the customer EXCEPT
(A) collecting point-of-sale (POS) data
(B) customer panel groups
(C) recording customers problems with recent
purchases
(D) surveying customers online
(The correct answer is A.)
For Examples 4 and 5, evaluate the statements and
provide the MOST or LEAST appropriate response.
The answer is not one persons opinion; it is the
accepted choice according to the APICS body of
knowledge.
 Example 4: The MOST significant advantage of
strategic sourcing is:
(A) finding suppliers who can provide materials at
lowest cost
(B) using technology to select low-cost, high-quality
sources of materials
(C) developing long-term supplier relationships
(D) having a process for recurring transactions
with single suppliers
(The correct answer is C.)
Example 5: Which of the following factors has had
the LEAST impact on the growth of customer
relationship management?
(A) increased customer expectations
(B) reduced commodity prices
(C) increased ease in comparison shopping
(D) reduced cost of gaining new customers
(The correct answer is C.)
Taking the Test
The test is designed to evaluate a candidates
knowledge of the subject matter. Therefore, the key to
success is a thorough understanding of the subject
matter. All questions are based on the current CSCP
body of knowledge as defined in the exam content
manual.
When you start your exam, read all the directions
carefully. Be sure you understand the directions before
you begin to answer any questions.
Read each question carefully and thoroughly. If a
question includes stimulus material such as a table,
graph, or situation, be sure to study it before you answer
the question. Take care to avoid assuming information
not given, as well as assuming you know what is being
asked without reading the question completely, or
second guessing the question. Every effort has been
made to avoid misleading wording and to provide
sufficient information for each question.
Choose the best answer from the choices given. Care
has been taken to avoid misleading choices. Do not look
for hidden tricks or exceptions to the norm. For each
question, one and only one of the four choices
represents the correct answer.
Once you begin the test, approach the questions in
order, but do not waste time on those that are unfamiliar
or seem difficult to you. Go on to the other questions and
return to the difficult ones later if you have time. If you
have some knowledge about a particular question, you
may be able to eliminate one or more choices as
incorrect. Your score on the test will be based on the
number of questions you answer correctly, with no
penalty for incorrect answers; therefore, it is to your
advantage to guess rather than not answer a question.
Avoid changing an answer unless you are absolutely
certain that you marked the wrong answer.
Interpreting Test Scores
Scoring is based on your correct responses. There is no
penalty for incorrect answers. The omission of an
answer will be counted the same as an incorrect answer.
The APICS CSCP scaled score range is 200350. The
minimum passing score is 300.
You will receive your final exam score along with
diagnostic information on your performance.
Studying for the APICS
CSCP Exam
APICS offers a number of resources to help individuals
prepare for the APICS CSCP examination.
APICS CSCP References
Bibliography. The APICS CSCP Examination
Subcommittee has identified a number of references for
the APICS CSCP examination. These are listed in the
Bibliography section of this manual. All the references
contain excellent material that will assist in test
preparation. For additional information on the APICS
CSCP references, visit the APICS website at
apics.org/cscp, or call APICS Customer Service at 1-
800-444-2742 (United States and Canada) or +1-773-
867-1777.
A candidate may discover that the material covered in
the chapters of one reference duplicates material
covered in another reference. Both sources are included
as references to allow candidates some discretion in
selecting test preparation materials that they find
accessible and understandable.
In deciding if a single reference is sufficient, candidates
should assess their own level of knowledge against both
the descriptive examination specifications and the
detailed topic list contained in the content outline. If there
are any areas of weakness, the candidate should consult
another reference as part of the test preparation
process.
It is not practical to list all texts that contain excellent
material. The serious student of supply chain
management who wishes to stay current with the state of
the art will take advantage of publications such as those
CSCP Exam Content Manual 3
listed in the comprehensive APICS Educational
Resources Brochure (stock #01041), featuring APICS
reference materials. To receive the brochure, call APICS
Customer Service at 1-800-444-2742 (United States and
Canada) or +1-773-867-1777, or via Shop APICS at
apics.org/shop.
Content outline. The content outline provided in this
document should be considered a primary resource for
exam preparation. It provides an overview of the major
topics included in the exam, as well as a list of the
concepts that are relevant to that topic.
APICS Dictionary. The APICS Dictionary, 13th edition,
is an essential publication that applies to the exam
content manual and exams. Within the profession,
terminology varies among industries, companies, and
the academic community. The examination uses
standard terminology as defined in the APICS Dictionary
and the Supplemental Glossary section in this manual.
Recognizing the terms and understanding their
definitions are essential.
Terminology
In studying for the APICS CSCP certification exam,
candidates may discover multiple terms used to denote
the same technique. An example of this is lateral
integration versus horizontal integration. APICS has
attempted to provide consistency with preferred
terminology. However, synonyms are often used by
authors in the various references used to compile the
body of knowledge. Candidates are encouraged to be
familiar with all terms and concepts listed within each
outline and key terminology section, using the APICS
Dictionary as the primary guide for definitions. The
Supplemental Glossary, included in this manual,
provides needed additional information identified by the
exam committee.
Additional Resources for APICS
CSCP Candidates
In addition to the cited references, it may be helpful for
you to pursue chapter-sponsored courses, college
courses, APICS workshops, self-study courses, or
courses offered by the APICS network of authorized
education providers (AEPs) as a means of learning the
body of knowledge that is tested in the certification
program. A wide variety of courses and materials is
available. As with any other investment of time and
money, you should research various courses before
investing in one.
4 2012 APICS The Association for Operations Management
APICS CSCP Learning System
The APICS CSCP Learning System is a comprehensive
professional development and certification preparation
program. This self-directed program combines print
material and online interactive tools. This system is also
offered in instructor-led formats.
The APICS CSCP Learning System does not teach the
test and in many areas reviews concepts but does not
teach concepts. The APICS CSCP Learning System
provides a thorough review of the subject matter, but it
should not be used without the most current APICS
CSCP Exam Content Manual as a means to direct the
candidates study. There will likely be some content in
the APICS CSCP Learning System not covered by the
exam; conversely, there will likely be some content in the
exam not covered by the learning system. Thus, the use
of the current exam content manual to assist candidates
with their studies is essential.
APICS CSCP Instructor-Led Review
Courses
The instructor-led format combines the APICS CSCP
Learning System print and online components with the
leadership of a qualified instructor; peer collaboration;
company networking; and a structured, set schedule to
keep participants on track. Learn more about APICS
recognized instructors at apics.org/
recognizedinstructors or find local APICS partners that
provide APICS CSCP courses at apics.org/finder.
For courses in North America, visit the Partner and
Event Finder on the APICS website at apics.org/finder
or call APICS Customer Service at 1-800-444-2742
(United States and Canada) or +1-773-867-1777 to
obtain contact information for your local chapter. For
courses outside North America, visit
apics.org/international to locate the nearest partner.
APICS Educational Programs
APICS offers a variety of educational programs, as well
as the annual APICS International Conference & Expo.
For a list of APICS learning opportunities and
information on course availability, call APICS Customer
Service at 1-800-444-2742 (United States and Canada)
or +1-773-867-1777.
APICS Certified in Production and
Inventory Management (CPIM) Basics
of Supply Chain Management (BSCM)
Review Course and Examination
The APICS CPIM BSCM module introduces terminology,
approaches, and techniques for managing the internal
supply chain in a manufacturing organization. For that
reason, the references and the review course may be
valuable resources for APICS CSCP candidates who are
not familiar with the production and inventory
management environment. Additionally, individuals
inexperienced in taking certification examinations using
the multiple-choice format of items typically find it
beneficial to take the BSCM examination.
For a complete list of APICS resources, visit the APICS
website at apics.org or call APICS Customer Service at
1-800-444-2742 or +1-773-867-1777 and request a
complimentary APICS Educational Resources Brochure
(stock #01041).
APICS CSCP
Certification
Maintenance:
Continuing
Professional
Development
The Importance of Certification
Maintenance
The growing number of individuals choosing to pursue
professional development through the APICS CSCP
program indicates a strong awareness that continuing
education and skills development are essential to
meeting the information and technological challenges in
todays rapidly evolving workplace and global
marketplace. Professional development opens doors to
individual career opportunities and organizational
success.
Although APICS CSCP recognition and maintenance are
voluntary programs, they equally demonstrate ones
commitment to achieving the highest level of
professional development and standards of excellence.
The APICS CSCP certification maintenance program
upholds both the objectives of the APICS CSCP
program and the APICS vision to promote lifelong
learning. This flexible program recognizes that
individuals are at various levels in their careers, come
from many industries, have different educational needs
and career goals, and have varying degrees of access to
continuing education. Thus, requirements for maintaining
certification can be met through multiple sources and a
variety of professional development activities intended to
help prepare for the challenges ahead and maintain a
professional edge by
preserving the currency of hard-earned certification
credentials expanding your knowledge of the latest
industry practices
expanding your knowledge of the latest industry
practices reinforcing skills
exploring new technology solutions
reinforcing skills
improving job performance
demonstrating commitment to excellence
increasing competitive advantage.
To promote professional growth and lifelong learning,
APICS CSCP designees must complete the certification
maintenance program every five years. Complete details
on how to maintain your APICS CSCP designation will
be mailed to candidates upon successful completion of
the certification requirements.
APICS Code of Ethics
When you start an examination, you will be asked to
pledge to abide by the APICS Code of Ethics. Once
certified, you pledge to continue your education to
increase your contribution to the supply chain
management profession. After achieving the APICS
CSCP designation, you pledge also to share your
knowledge with others by participating in APICS
research and educational activities at local, district,
national, and international levels.
The APICS Code of Ethics is as follows:
To maintain and improve sound business practices
and foster high standards of professional conduct.
To hold in professional confidence any information
gained of the business of a fellow members
company and to refrain from using such information
in an unethical manner.
To seek success without taking unfair advantage or
using questionable acts that would compromise
ones self-respect.
To neither engage in nor sanction any exploitation of
ones membership, company, or profession.
To encourage, and cooperate in, the interchange of
knowledge and techniques for the mutual benefit of
the profession.
CSCP Exam Content Manual 5
 To be careful with ones criticisms and liberal with
ones praise; to build and not to destroy.
Whenever a doubt arises as to the right or ethics of
ones position or action, to resolve such doubt
according to generally accepted standards of truth,
fair dealing, and good taste.
To maintain high personal standards of moral
responsibility, character, and business integrity.
To uphold the high ideals of the association as
outlined in the bylaws.
Failure to abide by APICS Code of Ethics policy may
result in sanctions up to and including decertification.
APICS Certified Supply
Chain Professional
(CSCP)
Effective for January 1, 2013December 31, 2013,
exams.
CSCP Subcommittee
Roly White, CFPIM, CIRM, CSCP (Chair)
Nishat Ahmed, CPIM, CIRM, CSCP, C.P.M.
M.C. Dean, Inc.
Joanne Gorski, CFPIM, CSCP
Fox Valley Technical College
Robert Pinchot, CPIM, CSCP
DuPont
Andrea M. Prudhomme, PhD, CPIM, CIRM,
CSCP, The Ohio State University
Eduardo A. Shelley, CFPIM, CIRM, CSCP
Solmex
Scope of the Subject Matter
Please read the introductory material in this manual for
essential information about the examination.
APICS CSCP covers concepts, strategies, processes,
tools, and technologies applied to managing the end-to-
end forward and backward flow of materials, information,
and value in a supply chain.
The subject matter is organized into three content
areas.
Fundamentals of Supply Chain Management
This section provides the foundation for the exam by
addressing the concepts and strategies used for
effective supply chain management. It includes an
overview of supply chain management, managing the
supply chain, and improving the supply chain.
6 2012 APICS The Association for Operations Management
Strategy, Design, and Compliance
This section addresses considerations in the design of a
supply chain, the processes that support the
organizations strategy, improvement of the sustainability
of the organization and its trading partners, and
compliance with applicable regulations and voluntary
standards.
Implementation and Operations
This section covers managing and balancing supply and
demand through measuring, analyzing, and improving
supply chain processes.
The successful candidate will be able to recognize and
analyze specific supply chain situations and
opportunities and select the appropriate approaches,
tools, techniques, and technologies. The candidate will
be able to define the actions necessary to implement
selected solutions. This includes an understanding of,
and ability to, manage
alignment of supply chain processes and capabilities
with strategic business goals
organizational roles and infrastructures in the supply
chain
material, information, and financial flows
intra- and inter-organizational relationships
selection and use of technologies to enable effective
process management. Many of the items on this
exam require the candidate to apply one or more of
the items identified in the outline and key
terminology.
APICS CSCP Content
Three content areas have been designed to organize the
APICS CSCP domain. The relative importance of these
topics will vary among industries, but the figures given
below show the percentage designated for each section
on the exam.
Diagnostic Main Topic Percentage
Part of Exam
I Fundamentals of Supply 33.33%
Chain Management
II Supply Chain Strategy, 33.33%
Design, and Compliance
III Implementation and 33.33%
Operations
Content Outline
I. Fundamentals of Supply Chain Management
This section addresses the fundamental concepts used
for effective supply chain management and will provide
the foundation for the APICS CSCP exam. It includes an
overview of supply chain management concepts and the
need to align resources with the strategy of the
organization. Management and improvement of the
supply chain are then addressed. Exam questions
covering this area will include elements related to the
following:
A. Supply chain management concepts: A thorough
understanding of the roles in a supply chain network
and the flow of value through it is required. A broad
understanding of the supply chain management
processes, objectives, integration, and benefits is
also required. Knowledge in this area encompasses:
1. Basic supply chain
a. Entities
b. Structures
c. Flows
2. Supply chain management processesSCOR
model
a. Planning demand and supply
b. Sourcing goods and services
c. Producing goods and services
d. Delivering goods and services
e. Planning for and processing returns
3. Vertical and horizontal integration
4. Supply chain management objectives
a. Improved customer service
b. Efficient use of system-wide resources
c. Effective use of system-wide resources
d. Leverage of partner strengths
5. Supply chain management benefits
a. Improved market knowledge
b. Increased velocity in the flows of goods and
services, funds, and information
c. Increased visibility of flows
d. Reduced variability of flows
e. Integrated operations
f. Improved management of risk
g. Increased sustainability
B. Supply chain alignment with business strategy: The
supply chain strategy should align with and enable
the business strategy. Achieving appropriate
alignment requires an understanding of the forms of
competitive advantage being pursued. It also
requires an understanding of the organizational
strategy, priorities, capabilities, and the resolution of
misalignments or gaps. Knowledge in this area
encompasses:
1. Competitive advantages
2. Business capabilities and strategy
a. Organizational strategy
b. Prioritization options
c. Organizational capabilities
d. Alignment of capabilities and strategy
3. Resolving misalignment or gaps
4. Collaboration among trading partners
a. Benefits of collaboration
b. Requirements for success
C. Supply chain design and improvement
considerations: The supply chain strategy should be
designed with an understanding of the marketplace.
It also requires an understanding of supply chain
management design and continuous improvement
considerations. Knowledge in this area
encompasses:
1. Understanding the marketplace
2. Supply chain design considerations
a. Network configuration
b. Inventory location and levels
c. Product design
d. Information technology
e. Support systems
3. Continuous improvement
a. Product considerations
b. Process improvement initiatives
c. Managing change
D. Inventory management: Inventories throughout the
supply chain must be planned and controlled for
effective supply chain management. Managing
inventories, in turn, requires an understanding of
the costs of maintaining and not maintaining
inventory. Knowledge in this area encompasses:
1. Need for inventory
2. Aggregate and item inventory management
3. Flow of material
4. Functions of inventory
5. Inventory-related cost categories
6. Effects of inventory on the financial statements
CSCP Exam Content Manual 7
E. Logistics fundamentals: An understanding of the
logistics function is required. Understanding the role
of logistics, types of logistics service providers, and
reverse logistics is required. Knowledge in this area
encompasses:
1. Role of logistics in supply chain management
a. Logistics functions
b. Logistics value proposition
c. Flow of goods and information
d. Push, pull, and push-pull systems
2. Logistic service providers
a. Types of logistics services
b. Advantages of using logistics service
providers
c. Disadvantages of using logistics service
providers
3. Reverse logistics
a. Activities supported
b. Design for reverse logistics
c. Benefits
F. Market segmentation: An understanding of market
segmentation is required. Understanding the
reasons for identifying market segments, ways to
segment markets, and understanding the wants and
needs of each segment is important. Knowledge in
this area encompasses:
1. Reasons to identify and understand market
segments
2. Ways to segment markets
3. Understanding the wants and needs of each
segment
G. Demand planning: An understanding of demand
forecasting, the components of demand
management, associated linkages, and demand
management functional responsibilities and
interfaces is required. Knowledge in this area
encompasses:
1. Forecasting demand
a. Demand forecasting concepts
b. Qualitative methods
c. Quantitative methods
d. Combination methods
e. Measures of forecast error
2. Components of demand management
a. Planning demand
b. Communicating demand
8 2012 APICS The Association for Operations Management
c. Influencing demand
d. Prioritizing demand
3. Linkages among the components
4. Demand management functional responsibilities and
interfaces
a. Product development
b. Marketing
c. Sales
d. Operations
H. Customer relationship management (CRM)
concepts: Effective customer relationship
management includes an understanding of the CRM
philosophy. It also requires the understanding of the
need, scope, elements, and benefits of CRM.
Knowledge in this area encompasses:
1. Need for CRM
2. Scope of CRM
3. Elements of CRM
4. Benefits of CRM
5. Implementing CRM
6. Need for, and uses of, customer information in
CRM
I. Supply management concepts: Effective
management of all sources of supply requires an
understanding of the components of the total cost of
ownership and the considerations in deciding
whether to source an item internally or externally. It
also requires an understanding of the types of
relationships that can exist between a firm and its
suppliers, the development of supply plans, and
supplier relationship management. Knowledge in
this area encompasses:
1. Total cost of ownership
2. Make versus buy analysis
3. Range of buyer-supplier relationships
4. Developing supply plans
5. Supplier relationship management (SRM)
References: 1; 2 (16); 3 (12, 67, 9); 4 (1, 58); 5 (1,
3, 5, 89, 12), 10
II. Supply Chain Strategy, Design, and
Compliance
This section addresses considerations in the design of a
competitive supply chain, the processes that support the
organizations strategy, improvement of the sustainability
of the organization and its trading partners, and
compliance with applicable regulations. Exam questions
covering this area will include elements related to the
following:
A. Sustainability: Designing and operating a supply
chain requires an understanding of the concepts of
sustainable business practices and how to adapt
and apply them to a specific supply chain.
Knowledge in this area encompasses:
1. Triple bottom line (TBL) considerations related
to conservation and stewardship
a. Economic
o Micro and macro considerations
o Leading and lagging economic
indicators
o Balancing short-term and long-term
performance
b. Environmental
o ISO 14000environmental
management systems
o Governmental regulatory compliance
o Industry-specific guidelines and
standards
o Impact of supply chain decisions
c. Social
o ISO 26000guidance for social
responsibility
o Corporate social responsibility
considerations
2. United Nations Global Compact
3. Global Reporting Initiative (GRI)
B. Risk management: Designing a robust supply chain
requires recognizing the sources and forms of risks,
the magnitude and potential impact of each, and
methods of mitigating each form of risk. Knowledge
in this area encompasses:
1. Identification, mitigation, and response to risk
a. Forms of risk
b. Assessing the risk in a supply chain
c. Mitigating significant risks
d. Responses events
2. Security and regulatory concerns
a. Risk of loss, such as intellectual property or
goods
b. Complying with import and export
requirements, such as prohibited goods,
labeling, and documentation
c. Costs and benefits of participating in
security partnerships
d. Costs and benefits of meeting sustainability
regulations
e. Product traceability
3. ISO 31000risk management principles and
guidelines
C. Globalization: Managing globally dispersed sources
of supply and demand requires an understanding of
the requirements for operating in multiple countries
and for moving goods and funds among countries.
Knowledge in this area encompasses:
1. Effects of globally dispersed supply and demand
a. Export and import participants
b. Currency considerations
c. Harmonized tariff schedule (HTS)
d. Total, or landed, cost of acquisition
2. Free trade zones
a. Definition
b. Benefits
c. Requirements
3. Trading blocs
a. Definition
b. Effects on supply chains within the bloc
c. Effects on supply chains that extend outside
the bloc
4. Operational considerations
a. Exporting issues
b. Importing issues
c. Incoterms
5. Implications of globalization
a. Legal and regulatory considerations
b. Acceptable standards of conduct
c. Glocalization
D. Logistics: An understanding of the total effect that
globalization and supply chain management has on
inbound and outbound logistics is important. An
understanding of trade-offs among warehousing,
transportation, and logistics services decision
making is also required. Knowledge in this area
encompasses:
CSCP Exam Content Manual 9
 1. Transportation
a. Transportation objectives and
considerations
b. Stakeholders in transportation decisions
c. Modes of transportation
d. Considerations in mode selection
2. Warehousing
a. Warehousing objectives and considerations
b. Warehouse capabilities
c. Automated material handling
3. Transportation and warehousing trade-offs
a. Public/private
b. Owning/leasing assets
c. Capacity constraints
E. Managing the supply chain: Managing the supply
chain requires an understanding of the dynamics of
supply and demand and the need to balance
efficiency and responsiveness in the supply chain. It
also requires a set of comprehensive measures that
are agreed upon and used by the organizations in
the supply chain. Knowledge in this area
encompasses:
1. Indicators of supply chain performance
a. Customer-focused metrics
b. Financial metrics
c. Operational metrics
d. Other key performance indicators (KPIs)
2. Responsive versus efficient supply chains
a. Attributes of an efficient supply chain
b. Attributes of a responsive supply chain
c. Supply chain fit with the organizations
market requirements
F. Technology: An understanding of technologies that
enable designing, tracking, operating, and
communicating among trading partners within a
supply chain is necessary. The correct application of
appropriate technology is needed for efficient and
effective supply chain management. Knowledge in
this area encompasses:
1. Role of technology in supply chain management
a. Information system architecture
b. Use of information technology in the supply
chain
c. Comprehensive supply chain management
system
d. Need for timely and accurate data
2. Key application tools
a. Enterprise resources planning (ERP)
systems
10 2012 APICS The Association for Operations Management
b. Advanced planning and scheduling (APS)
systems
c. Supply chain event management (SCEM)
d. Warehouse management systems (WMS)
e. Transportation management systems (TMS)
3. Data acquisition and communications tools
a. Interface devices
b. Data communications methods
c. Databaseshierarchical/relational/network
d. Acquisition and use of data
e. Automatic identification technologies
4. Supply chain design and optimization tools
a. Supply network design
b. Supply network optimization
5. Inter-organization integration tools
a. Information technology in collaborations and
joint processes
b. Standardization
c. Challenges
6. Electronic business
a. Enabling virtual organizations
b. Internet-enabled supply chains
c. E-business considerations
d. Business-to-business (B2B) commerce and
business-to-consumer (B2C) sales
G. Influencing and prioritizing demand: A thorough
understanding of how the members of a supply
chain can influence demand and how they may need
to prioritize demand when necessary is required.
Knowledge in this area encompasses:
1. Designing products and services
a. Standardization
b. Simplification
c. Customization
d. Sustainability considerations
e. Design and development collaboration
2. Marketing
a. Market research
b. Demand generation
c. Influencing demand
3. Selling
4. Matching customer orders to supply
a. Need for matching
b. Approaches to matching
H. Customer relationship management (CRM):
Effective customer relationship management
includes understanding the underlying concepts;
enabling technologies; and requirements for
improved demand management, customer service,
and alignment of customer-facing processes and
resources. Knowledge in this area encompasses:
1. Developing and implementing CRM as a
strategy
a. Components of CRM strategy
b. Aligning CRM strategy and product or
service life cycle
c. Creating a CRM strategy
d. Developing CRM strategy for various types
and segments of customers
2. Using technology to implement CRM
a. Benefits of using a customer data
warehouse
b. Sales force automation
c. Keys to successful CRM implementation
3. Measuring customer service
a. Response to inquiries
b. Order processing
c. Level of service
d. Product or service quality
e. Customer satisfaction
4. Challenges in implementing CRM
I. Supplier relationship management (SRM):
Successful implementation of supplier relationship
management requires an understanding of the
underlying concepts, the enabling technologies, and
the requirements for improved management of
sources of supply. Knowledge in this area
encompasses:
1. Supplier selection
a. Corporate social responsibility (CSR)
b. Negotiations
c. Internet-enabled sourcing
d. Contract performance
e. Alignment with supply chain needs
2. Developing and implementing SRM strategies
a. Steps in implementing SRM
b. Managing risk
3. Creating alliances with suppliers
a. Characteristics of a successful relationship
b. Commitment required for a successful
alliance
c. Steps in creating and maintaining an
alliance
4. Using technology to implement SRM
a. Components of a SRM system
b. Portals and trading exchanges
c. Processes enabled by SRM
d. Effects of SRM on the firm and its suppliers
5. Measuring SRM
6. Challenges in implementing SRM
J. Inventory planning and control: Inventories
throughout the supply chain must be planned,
located, and controlled for effective supply chain
management. Managing inventories in turn requires
an understanding of the total costs of maintaining
and not maintaining inventory and the techniques for
planning and controlling inventory. Knowledge in this
area encompasses:
1. Inventory planning
a. Locations of inventory
b. Levels of inventory
2. Inventory control
a. Determining order quantities
b. Ordering systems
c. Safety stock and safety lead time
d. Organization of storage locations
e. Methods of tracking inventory
f. Methods for assessing inventory accuracy
References: 1; 2 (7-10, 16) ; 3 (1, 35, 811, 1213, 17);
4 (19); 5 (212, 1415); 6; 8; 9; 10
III. Implementation and Operations
This section addresses managing and balancing supply
and demand by measuring, analyzing, and improving
supply chain processes. Exam questions will include
elements related to the following:
A. Supply chain dynamics: Managing supply chains
requires an understanding of the dynamics of supply
and demand and the need to balance efficiency and
responsiveness in the supply chain. It also requires
a set of measures that are agreed upon and used by
the organizations in the supply chain. Knowledge in
this area encompasses:
1. Sources of variability in demand
2. Sources of variability in supply
3. Synchronizing supply and demand
4. Metrics
CSCP Exam Content Manual 11
B. Managing supply from internal sources: Managing
supply from internal sources requires an
understanding of the operations planning and control
processes. Knowledge in this area encompasses:
1. Operations planning and control
a. Implementation of sales and operations
planning (S&OP)
b. Controlling priorities
c. Materials and inventory
d. Capacity management
2. Communicating requirements and priorities
3. Measuring performance
a. Operational measures
b. Financial measures
C. Managing supply from external sources: Managing
supply from external sources requires an
understanding of the basic purchasing processes,
selecting suppliers, and evaluating suppliers.
Knowledge in this area encompasses:
1. Communicating requirements and priorities
2. Supplier performance management
a. Ethical and legal considerations
b. Negotiations
c. Contract issues
d. Internet-enabled sourcing
e. Scorecards and performance metrics
3. Supplier certification
a. Customer and supplier benefits
b. Third-party certification
c. Supplier certification process
D. Implementation of demand plans: Requires an
understanding of the methods for prioritizing and
fulfilling demand. Knowledge in this area
encompasses:
1. Demand prioritization
a. Time fences
b. Allocation of supply
c. Measures of customer service levels
o Fill rates
o Lead-time monitoring
o Order status reporting
2. Capturing and communicating point-of-sale data
a. Capturing data at point-of-sale
b. Sharing demand data among trading
partners
12 2012 APICS The Association for Operations Management
E. Continuous Improvement: Enhancing the
competitiveness of a supply chain requires an
understanding of the techniques and tools of
continuous improvement and the appropriate
application of each. Knowledge in this area
encompasses:
1. Continuous improvement philosophies
a. Lean
b. Six sigma
c. Theory of constraints (TOC)
d. Total quality management (TQM)
2. Continuous improvement tools
a. Basic seven tools of quality (B7)
b. Seven new tools (N7)
3. Sustainability tools
a, Life cycle assessment
b. ISO 14001
c. Global Reporting Initiative (GRI)
d. Sustainability scorecards
References: 1; 2 (11-16); 3 (911, 1415);
5 (2, 4, 7, 12); 7; 8, 9, 10
Key Terminology
An understanding of the following list of terms is
recommended. The list is intended to be thorough but
not exhaustive. The candidate is also expected to be
familiar with the definitions of terms identified in the
content outline. Definitions of these terms can be found
in the APICS Dictionary.
A
active tag
advanced planning and scheduling (APS)
agent
alliance development
anticipation inventories
assemble-to-order
automatic identification and data capture (AIDC)
available-to-promise (ATP)
B
balanced scorecard
blanket purchase order
buffer
business intelligence
business-to-business commerce (B2B)
business-to-consumer sales (B2C)
C
capable-to-promise (CTP)
cash-to-cash cycle time
collaborative planning, forecasting, and
replenishment (CPFR)
 consortia trade exchanges (CTX) inventory optimization software
content management applications inventory valuation
continuous replenishment inventory velocity
cost of quality inventory visibility
cross-docking ISO 14000environmental management systems
cross-selling ISO 26000guidance for social responsibility
customer relationship management (CRM) ISO 31000risk management principles and
customer service ratio guidelines
cycle time J
joint replenishment system
D joint venture
database management system (DBMS)
data cleansing K
data dictionary kaizen
data normalization kaizen event
data warehouse kanban
define, measure, analyze, improve, control keiretsu
(DMAIC) process key performance indicator (KPI)
demand forecasting
demand management L
demand planning landed cost
demand pull legacy systems
design for the supply chain level of service
distribution inventory level strategy
distribution requirements planning (DRP) life cycle analysis
line haul costs
E
electronic commerce (e-commerce) M
electronic data interchange (EDI) make-to-order
electronic document make-to-stock
electronic product codes (EPCs) market demand
end-of-life management market research
enterprise resources planning (ERP) market share
extensible markup language (XML) master production schedule (MPS)
extranet middleware
mix forecast
F modular design strategy
feedback modular system
file transfer protocol (FTP) multicountry strategy
fill rate multisourcing

G O
ordering cost
global strategy order losers
order qualifiers
H order winners
harmonized system classification codes outsourcing
horizontal marketplace
hypertext markup language (HTML)
hypertext transfer protocol (HTTP)

I
incoterms
independent demand
information system architecture
interplant demand
intranet

CSCP Exam Content Manual 13

P U
Pareto analysis universality
partnership
passive tag V
pipeline inventory value-added
planning horizon value-added network (VAN)
portal value chain
private trading exchange (PTX) value stream
product differentiation value stream mapping
product family vendor-managed inventory (VMI)
product life cycle virtual trading exchange
pull system
push system W
warehouse management system (WMS)
Q waste
quality function deployment (QFD) web services
quick response program (QRP)
X
R XML (extensible markup language)
radio frequency identification (RFID) tag
rapid replenishment Supplemental Glossary
return on assets (ROA) The following concepts, not found in the APICS
return on investment (ROI) Dictionary, 13th edition, will be helpful in preparing for
reverse auction the CSCP examination.
reverse logistics
reverse supply chain Business process management (BPM): A business
risk pooling discipline or function that uses business practices,
techniques, and methods to create and improve
S business processes. BPM is a holistic approach to the
sales and operations planning (S&OP) use of appropriate process-related business disciplines
seasonality to gain business performance improvements across the
semipassive tag enterprise or supply chain. It promotes business
service industry effectiveness and efficiency while striving for innovation,
service-oriented architecture (SOA) flexibility, and integration with technology. Most process
single-source supplier improvement disciplines or activities can be considered
six sigma as BPM.
software-as-a-service (SaaS)
sole-source supplier Demand shaping: The practice of using the 4 Ps
sourcing (product, pricing, placement, promotion) and other
spend management market variables to influence the demand of a product or
stockkeeping unit (SKU) service so that the demand better matches the available
strategic alliance supply.
strategic planning
strategic sourcing Global Reporting Initiative (GRI): A network-based
subcontracting organization that pioneered the worlds most widely used
supplier certification sustainability reporting framework.
supply chain event management (SCEM)
supply chain management (SCM) Glocalization: A combination of globalization and
supply chain risk localization. When used in a supply chain context,
supply chain visibility glocalization is a form of postponement where a product
or service is developed for distribution globally but is
T modified to meet the needs of a local market. The
tactical buying modifications are made to conform with local laws,
tariff customs, culture, or preferences.
third-party logistics (3PL)
total cost of ownership (TCO)
transportation management system (TMS)

14 2012 APICS The Association for Operations Management

ISO 26000guidance for social responsibility:
ISO 26000 or ISO SR is an international standard
adopted by the International Standards Organization to
assist organizations in contributing to sustainable
development beyond legal compliance through a
common understanding of social responsibility. ISO
26000 is not a management system standard and is not
intended or appropriate for certification purposes or
regulatory or contractual use.
ISO 31000risk management principles and
guidelines: A standard adopted by the International
Standards Organization that outlines principles and a set
of guidelines to manage risk in any endeavor. The
standard outlines guidelines for understanding risk, for
developing a risk management policy, for integrating risk
management into organizational processes (including
accountability and responsibility), and for establishing
internal and external risk communication processes. ISO
31000 is not a management system standard and its not
intended or appropriate for certification purposes or
regulatory or contractual use.
Trade bloc or trading bloc: A trade bloc is an
agreement between countries intended to reduce or
remove barriers to trade within member countries.
Frequently, but not always, those countries are
geographically close. Examples of trade blocs are the
European Economic Community and the North American
Free Trade Agreement (NAFTA).
United Nations Global Compact: A voluntary initiative
whereby companies embrace, support, and enact, within
their sphere of influence, a set of core values in the
areas of human rights, labor standards, the environment,
and anticorruption.
5. Simchi-Levi, David, Philip Kaminsky, and Edith
Simchi-Levi. Designing & Managing the Supply
Chain, 3rd ed., McGraw-Hill Irwin, 2008.
6. United Nations Global Compact: Corporate
Sustainability in the World Economy. 2011.UN
Global Compact Office.
http://www.unglobalcompact.org/docs/news_events/
8.1/GC_brochure_FINAL.pdf
7. UN Global Compact Management Model:
Framework for Implementation. 2010. Deloitte
Touche Tohmatsu. Welcome message by Georg
Kell. Foreword by John Connolly.
http://www.unglobalcompact.org/docs/news_events/
9.1_news_archives/2010_06_17/UN_Global_Compa
ct_Management_Model.pdf
8. The G3.1 Guidelines. Global Reporting.
http://www.globalreporting.org/resourcelibrary/G3.1-
Sustainability-Reporting-Guidelines.pdf
9. GRI Sustainability Report GuidelinesReference
Sheet.
http://www.globalreporting.org/resourcelibrary/G3
.1-Quick-Reference-Sheet.pdf
10. Additional reference materials that are relevant to
the CSCP body of knowledge can be found at
apics.org/cscp. Questions appearing on the exam
may be based on these additional references.
Internet links cited in the bibliographic references above
can be found in a more usable format at the exam
content manual errata page at apics.org/ECMerrata.

Bibliography
All test candidates should familiarize themselves with the
following references for this examination. The
recommended references pertaining to the diagnostic
area are listed at the end of each section of the content
outline. All of these references are available from the
APICS Bookstore.

1. APICS Dictionary, 13th ed., 2011.

2. Bowersox, Donald, David Closs, and M. Bixby
th
Cooper. Supply Chain Logistics Management, 4
ed., McGraw-Hill, 2010.
3. Crandall, Richard, William Crandall, and Charlie
Chen. Principles of Supply Chain Management,
CRC Press, 2010.
4. Ross, David F. Introduction to Supply Chain
Management Technologies, 2nd ed., CRC Press,
2010.

CSCP Exam Content Manual 15

16 2012 APICS The Association for Operations Management
 (C) Sales force automation
Sample Questions (D) Artificial intelligence

The following 10 questions are similar in format and 6. Cash-to-cash cycle time is a measure of how
content to the questions on the CSCP exam. These efficiently a company
questions are intended for practicethat is, to enable
you to become familiar with the way the questions are (A) recovers its investment in plant and equipment.
asked. The degree of success that you have in (B) manages assets to generate cash flow.
answering these questions is not related to your (C) converts inventory into sales.
potential for success on the actual exam and should not (D) collects on sales to customers.
be interpreted as such. Read each question, select an
answer, and check your responses with the explanations 7. Which of the following types of inventory is used to
on pages 19-20. protect against variations in supply and/or demand?

1. Which of the following is the primary advantage of (A) Cycle stock

using web-based electronic data interchange (EDI) (B) Transportation inventory
for communication of transactions? (C) Safety stock
(D) Anticipation inventory
(A) There is more flexibility in transaction formats.
(B) It lowers the cost per transaction. 8. Which of the following is typically a characteristic of
(C) It eliminates translation of transactions. strategic sourcing?
(D) A larger number of transactions are supported.
(A) It includes automation of contract management
2. Quality remains an elusive concept in most processes.
organizations because (B) It reduces the price of goods and services.
(C) A supplier receives all of the companys orders
(A) it depends on customer perception. for a product or product family.
(B) there are many quality philosophies. (D) The focus of the relationship is on large
(C) it is everyones responsibility. transactions.
(D) quality targets change frequently.
9. Which of the following measures would be most
3. An example of the use of a third-party logistics (3PL) appropriate for trading partners to use to assess the
company would be when a company contracts with delivery performance of the manufacturer of items
another company to built to forecast?

(A) perform its shipping and receiving functions.
(B) produce and deliver a major subassembly.
(C) provide payroll services.
(D) act as a sales agent in another country.
4. Which of the following is an expected benefit of
implementing supply chain event management?
(A) Percentage of items shipped within the final
assembly lead time.
(B) Percentage of orders shipped complete within
24 hours of their receipt.
(C) Number of items shipped within 24 hours of their
receipt.
(D) Revenue from orders shipped in a week.

(A) It will reduce the need for supply chain
performance reporting.
(B) It will improve forecasting accuracy.
(C) It notifies partners when a deviation from plans
occurs.
(D) It reduces the cost of communications between
partners.
10. Which of the following is an expected benefit of
collaborative supply chain management?
(A) Maximizing the performance of the firm
(B) Reducing the number of competitors
(C) Increasing scope of operations
(D) Synchronizing supply and demand

5. Which of the following applications would enable a

company to detect patterns in the preferences of a
customer segment?

(A) Business intelligence

(B) Advanced planning system

CSCP Exam Content Manual 17

18 2012 APICS The Association for Operations Management

Answers to Sample
Questions
Note: References to the content outline appear in
parentheses.
1. B (IIF1) B is the best choice because a web-based
EDI system would eliminate the cost of a private or
value-added network. A is not the best choice
because the EDI transaction formats are
independent of the network used for transmission. C
is not the best choice because the transactions still
must be translated to and from the standardized
format. D is not the best choice because the
standards are independent of the transmission
method used.
2. A (IIIE) A is the best choice because the customers
are the ultimate judges of quality and they may have
differing requirements and priorities. B is not the
best answer because the philosophies have similar
definitions of quality and address how to improve it.
C is not the best choice because the fact that it is
everyones responsibility has nothing to do with the
concept of what is quality. D is not the best choice
because targets should change once they have
been achieved.
3. A (IE2) A is the best choice because a 3PL
company is a company that manages part or all of a
companys product delivery operations and shipping
is part of the product delivery operations. B is not the
best choice because neither producing the
subassembly nor delivering it is part of the
companys product delivery operations. C is not the
best choice because payroll services are not a part
of the companys product delivery operations. D is
not the best choice because selling does not
necessarily include any delivery operations.
4. C (IIF2) C is the best choice because supply chain
event management monitors the supply chain and
notifies designated individuals when specified
events or exceptions occur or when trends are
recognized. A is not the best choice because it
enables performance reporting but does not reduce
the need for it. B is not the best choice because
supply chain event management itself does not
affect any specific application. D is not the best
choice because supply chain event management
does not directly affect the amount or cost of
communications among partners.
5. A (IIH2) A is the best choice because business
intelligence applications collect, organize, and
analyze information. Use of these applications on
customer data would allow the company to detect
patterns in the data. B is not the best choice
because advanced planning systems address
operations rather than customers. C is not the best
choice because sales force automation does not
capture or organize the data required to detect
patterns in customer preferences. D is not the best
choice because artificial intelligence applications are
intended to learn and reason like humans to address
specific problems.
6. B (IA5) B is the best choice because the definition of
cash-to-cash cycle time is that it is an indicator of
how efficiently a company manages assets to
improve cash flow. It is the inventory days +
accounts receivable days accounts payable days.
A is not the best choice because cash-to-cash cycle
time does not consider the investment in plant and
equipment. C is not the best choice because it is
limited to the inventory days component of cash-to-
cash cycle time. D is not the best choice because it
is limited to the accounts receivable component of
cash-to-cash cycle time.
7. C (ID) C is the best choice because safety stock is
maintained to protect against variability in either
supply or demand. A is not the best choice because
cycle stock is related to lot sizing. B is not the best
choice because transportation inventory is inventory
that is in transit between locations. D is not the best
choice because anticipation inventory is inventory
held to cover trends or planned events, such as
promotions or plant shutdown.
8. A (II) A is the best choice because strategic sourcing
focuses on the long-term relationship and, from an
information technology perspective, typically
includes automation of contract management. B is
not the best choice because the focus is on the total
cost of ownership rather than on the quoted price. C
is not the best choice because strategic sourcing
can include contracting with more than one partner
for a part or family of parts to reduce the risk of
disruptions. D is not the best choice because the
focus of the relationship is on a long-term
relationship between the partners rather than on
individual transactions.
CSCP Exam Content Manual 19
9. B (IIIB3) B is the best choice because the items are
being produced to forecast and should be shipped
from stock shortly after receipt of the order. A is not
the best choice because the final assembly lead
time should not be needed before shipment because
the items are produced to forecast. C is not the best
choice because it is a measure of the number of
items shipped and there is no indication of the actual
number of items that were ordered. D is not the best
choice because revenue is a financial measure, but
does not indicate delivery performance.

10. D (IIIA) D is the best choice according to the APICS

Dictionary definition of supply chain management. A
is not the best choice because SCM should improve
the performance of the entire chain, not a single
member of the chain. B is not the best choice though
it may be an outcome of collaborative supply chain
management. C is not the best choice because
there is no direct relationship between collaborative
supply chain management and the scope of
operations for one of the partners.

20 2012 APICS The Association for Operations Management

APICS The Association for Operations Management
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Chicago, IL 60631 USA
1-800-444-2742 or +1-773-867-1777
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