Demand + Forecasting
10-13%of exam
Global Supply Networks
10-13%of exam
Sourcing Products + Services
13-17%of exam
Internal Operations + Inventory
13-19%of exam
MRP + MPSInventoryEOQ + Safety StockABCLean + JIT
Forward + Reverse Logistics
9-13%of exam
Supply Chain Relationships
11-17%of exam
Supply Chain Risk
10-11%of exam
Risk TypesAssessmentMitigationResilienceContinuity
Optimization + Sustainability
8-13%of exam
Quick Facts
- Credential
- CSCP
- Body
- APICS / ASCM
- Questions
- 150 (130 scored)
- Pretest
- 20 unscored
- Time
- 3.5 hours
- Score scale
- 200-350
- Pass
- 300 scaled
- Modules
- 8 modules
- Eligibility
- None required
- Maintenance
- 75 pts / 5 yr
CPFR vs S&OP
CPFR
- Cross-company
- Shared forecast
- Trading partners
S&OP
- Internal process
- Supply demand balance
- Executive level
External vs internal align
Forecasting
- Qualitative
- Judgment, no data
- Time series
- Project past patterns
- Causal
- Driver relationship model
- MAD
- Mean absolute deviation
- MAPE
- Percentage error measure
- Bias
- Consistent over/under error
- Tracking signal
- Cumulative error vs MAD
- Aggregation
- Higher level, less error
Demand + S&OP
- Demand mgmt
- Plan, communicate, influence
- S&OP
- Balance supply demandVolume
- RCCP
- Rough-cut capacity check
- Demand shaping
- Promotions, pricing levers
- Independent demand
- Forecasted finished goods
- Dependent demand
- Derived from BOM
- CPFR
- Joint forecast collaboration
- Bullwhip
- Variability amplifies upstream
SCOR Model
Plan, Source, Make, Deliver, Return
Plan: balanceSource: procureMake: produceDeliver: fulfillReturn: recover
Efficient vs Responsive
Efficient
- Low cost
- Stable demand
- High utilization
Responsive
- Fast, flexible
- Volatile demand
- Buffer capacity
Functional vs innovative
Make vs Buy
- Core competency→Make(Protect IP)
- Idle capacity→Make(Absorb overhead)
- No capability→Buy(Supplier expertise)
- Lower total cost→Buy(Use TCO)
- Demand volatile→Buy(Shift risk)
- Quality critical→Make(Direct control)
Network Design
- SCOR
- Plan source make deliver
- SCOR DR
- Deliver and return added
- Centralized
- Fewer, lower inventory
- Decentralized
- Closer, faster service
- Postponement
- Delay differentiation downstream
- Offshoring
- Move work overseas
- Nearshoring
- Relocate work closer
- Visibility
- See end-to-end status
Kraljic Quadrants
Strategic, Bottleneck, Leverage, Non-critical
Strategic: partnerBottleneck: secureLeverage: bidNon-critical: automate
Sourcing Quadrant Picker
- High risk, high spend→Strategic(Partner closely)
- High risk, low spend→Bottleneck(Secure supply)
- Low risk, high spend→Leverage(Competitive bid)
- Low risk, low spend→Non-critical(Automate, simplify)
- Need price only→RFQ(Spec fixed)
- Need solution→RFP(Approach varies)
Sourcing Strategy
- Kraljic matrix
- Risk vs spend grid
- Strategic item
- High risk, high spend
- Bottleneck item
- High risk, low spend
- Leverage item
- Low risk, high spend
- Non-critical item
- Low risk, low spend
- TCO
- Acquisition plus lifecycle cost
- Single source
- One chosen supplier
- Sole source
- Only supplier exists
Contracts
- Fixed price
- Seller bears risk
- Cost plus
- Buyer bears risk
- T&M
- Time and materials
- RFI
- Gather market information
- RFP
- Solution and approach
- RFQ
- Price for spec
- SLA
- Service level commitment
- Incentive
- Reward performance targets
8 Lean Wastes
TIM WOODS
TransportInventoryMotionWaitingOverproductionOverprocessingDefectsSkills
Push vs Pull
Push
- Forecast driven
- Build to stock
- MRP plans
Pull
- Demand driven
- Build to order
- Kanban signals
Forecast vs actual demand
Inventory Policy Picker
- Order how much→EOQ(Balance order/hold)
- Order when→ROP(Demand x LT)
- Cover variability→Safety stock(z service level)
- Prioritize control→ABC(Focus A items)
- Continuous tracking→Q system(Fixed quantity)
- Periodic review→P system(Fixed interval)
- Supplier manages→VMI(Share data)
Inventory Formulas
- EOQ
- sqrt(2DS/H)Order qty
- ROP
- Demand x lead time
- Safety stock
- z x sigma x sqrt(LT)
- Inventory turns
- COGS / average inventory
- Days of supply
- Inventory / daily usage
- Cycle stock
- Replenishment lot inventory
- Service level
- Order fill probability
- Carrying cost
- Hold inventory cost
MRP vs DRP
MRP
- Inbound materials
- BOM explosion
- Plant supply
DRP
- Outbound finished
- DC replenishment
- Customer side
Make inputs vs distribute
Inventory Policy
- ABC analysis
- Pareto value classification
- A items
- Top value, tight control
- C items
- Low value, loose control
- Cycle counting
- Continuous accuracy audit
- Q system
- Fixed order quantity
- P system
- Fixed review period
- Min-max
- Reorder to maximum
- VMI
- Supplier manages stock
EOQ vs Safety Stock
EOQ
- How much order
- Order vs hold
- Cycle stock
Safety stock
- Buffer uncertainty
- Service level
- Variability cover
Order size vs buffer
Operations Planning
- MPS
- Master production schedule
- MRP
- Explode BOM to orders
- DRP
- Distribution replenishment plan
- CRP
- Capacity requirements planning
- Lean
- Eliminate waste, flow
- JIT
- Pull, minimal inventory
- Kanban
- Signal to replenish
- Takt time
- Pace to demand
Lead Time vs Cycle Time
Lead time
- Order to receipt
- Includes waiting
- Customer view
Cycle time
- Process duration
- Work only
- Operations view
End-to-end vs process
FOB vs CIF
FOB
- Buyer arranges freight
- Risk at port
- Sea only
CIF
- Seller pays freight
- Seller buys insurance
- Sea only
Who pays and insures
Transport Mode Picker
- Urgent, high value→Air(Fast, costly)
- Bulk, low value→Water(Cheapest)
- Heavy, inland→Rail(Low cost)
- Flexible, last mile→Truck(Door to door)
- Long plus drayage→Intermodal(Cost balance)
- Continuous liquid→Pipeline(Steady flow)
Transport Modes
- Truck (motor)
- Flexible, short haul
- Rail
- Heavy, low cost
- Air
- Fast, high cost
- Water (ocean)
- Slow, lowest cost
- Pipeline
- Liquids, continuous flow
- Intermodal
- Combine two modes
- 3PL
- Outsourced logistics provider
- 4PL
- Manages multiple 3PLs
Warehousing + Reverse
- Cross-dock
- Inbound to outbound directly
- Putaway
- Store received goods
- Slotting
- Optimize pick locations
- Consolidation
- Combine shipments, save freight
- Reverse logistics
- Returns, recall, recycle
- Gatekeeping
- Screen returns at entry
- Disposition
- Repair, resell, scrap
- Closed loop
- Reuse recovered materials
Incoterms 2020
- EXW
- Buyer takes allAny
- FCA
- Seller to carrier
- FOB
- Risk at ship railSea
- CFR
- Seller pays freight
- CIF
- Cost insurance freightSea
- CIP
- Carriage insurance paid
- DAP
- Delivered at place
- DDP
- Seller takes all
CRM vs SRM
CRM
- Customer side
- Demand insight
- Retention focus
SRM
- Supplier side
- Supply assurance
- Performance focus
Downstream vs upstream
Relationship Models
- CRM
- Customer relationship management
- SRM
- Supplier relationship management
- Transactional
- Arm's length, price
- Collaborative
- Shared goals, data
- Strategic alliance
- Deep joint investment
- VMI
- Vendor owns replenishment
- Consignment
- Pay when used
- Segmentation
- Tier by value
Risk Responses
Avoid, Mitigate, Transfer, Accept
Avoid: stopMitigate: reduceTransfer: insureAccept: retain
Risk Management
- Risk identification
- Find potential threats
- Qualitative
- Likelihood impact rating
- Quantitative
- Numeric exposure value
- Avoid
- Eliminate the activity
- Mitigate
- Reduce likelihood impact
- Transfer
- Insurance or contract
- Accept
- Retain known risk
- BCP
- Business continuity plan
Resilience Levers
- Redundancy
- Buffer stock, backup
- Flexibility
- Adapt fast, cheaply
- Dual sourcing
- Two qualified suppliers
- Nearshoring
- Shorten exposure distance
- Visibility
- Detect disruption early
- Postponement
- Delay commitment, hedge
- Risk register
- Track, owner, status
- Recovery time
- RTO restore target
Cash-to-Cash
DIO plus DSO minus DPO
DIO: inventory daysDSO: receivable daysDPO: payable daysLower is better
Sustainability
- Triple bottom line
- People planet profit
- Reverse supply chain
- Recover product value
- Circular economy
- Reuse, eliminate waste
- Carbon footprint
- Emissions measure
- GRI
- Sustainability reporting standard
- ISO 14001
- Environmental management system
- SA8000
- Social accountability standard
- Green sourcing
- Environmentally responsible suppliers
Triple Bottom Line
People, Planet, Profit
People: socialPlanet: environmentalProfit: economic
Technology
- ERP
- Integrated business system
- EDI
- Standard document exchange
- APS
- Advanced planning scheduling
- WMS
- Warehouse management system
- TMS
- Transportation management system
- Blockchain
- Shared immutable ledger
- IoT
- Connected sensor data
- Digital twin
- Virtual chain model
Key Metrics
- Cash-to-cash
- DIO + DSO - DPO
- Perfect order
- On-time, complete, accurate
- Fill rate
- Demand met from stock
- OTIF
- On time in full
- Inventory turns
- Higher means leaner
- Forecast accuracy
- 1 minus error
- SCOR levels
- Reliability cost asset
- DPMO
- Defects per million
Common Traps
Push vs pull
Push uses forecast ≠ Pull uses demand
MRP vs DRP
MRP makes inputs ≠ DRP distributes outputs
EOQ vs safety stock
EOQ sets quantity ≠ Safety stock buffers
Single vs sole source
Single is chosen ≠ Sole is only option
FOB vs CIF
FOB buyer freight ≠ CIF seller insures
CPFR vs S&OP
CPFR is external ≠ S&OP is internal
Lead vs cycle time
Lead includes waiting ≠ Cycle is processing
Efficient vs responsive
Efficient cuts cost ≠ Responsive adds speed
Last Minute
- 1.150 questions, 130 scored, 3.5 hours
- 2.Pass = 300 on 200-350 scale
- 3.Eight modules; no eligibility required
- 4.EOQ = sqrt(2DS/H)
- 5.ROP = demand x leadtime
- 6.Safety stock buffers demand variability
- 7.Push = forecast; Pull = actual demand
- 8.MRP = inbound; DRP = distribution
- 9.FOB = buyer freight; CIF = seller insures
- 10.CPFR = external; S&OP = internal balance
- 11.Cash-to-cash = DIO + DSO - DPO
- 12.Kraljic: risk vs spend quadrants
- 13.Triple bottom line = people planet profit
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