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According to the CTSC exam content manual1, transform and return costs are two of the five cost categories in the SCOR model. Transform costs are the costs associated with converting raw materials into finished products, such as labor, materials, energy, depreciation, etc. Return costs are the costs associated with handling and disposing of defective or excess products, such as transportation, inspection, rework, recycling, etc. Transform costs are often captured in the cost of goods sold (COGS), which is the direct cost of producing the goods sold by a company. Return costs are often captured in claims, which are the expenses incurred by a company when customers return defective or unsatisfactory products.

Supply chain

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Total cost to serve is a supply chain metric that measures the total end-to-end supply chain cost of fulfilling an order for a specific customer or segment1.It includes all the costs incurred from sourcing, manufacturing, warehousing, transportation, and delivery of the product or service2.Total cost to serve helps to identify the profitability and value of different customers or segments, and to optimize the supply chain processes and resources accordingly3.

1:Top Supply Chain Metrics & KPIs Benchmarking | Gartner2:Top 25 Supply Chain Metrics & KPIs For Your Dashboards - datapine3:A Comprehensive Guide to Supply Chain Metrics & KPIs

Kanban

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According to the CTSC Exam Content Manual, Kanban is an operational framework that references a pull system that includes visual cards to represent a work item. Kanban cards are used to signal the demand and supply of work, and to limit the work in progress. Kanban cards are typically displayed on a Kanban board, which shows the stages of the workflow and the status of each work item. Kanban is a method to optimize the flow of value and improve efficiency and agility in a process.

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voice of the customer (VOC) is the process of gathering and implementing information about your customers’ expectations, needs and hopes2.Businesses use VOC programs to efficiently collect detailed market research about their customers and to improve their products or services based on the customer feedback2. This is an example of the successful use of VOC, as the company distributed surveys to understand what customers wanted, added online status information capability to their website to meet the customer demand, and sent a customer satisfaction survey to measure the impact of the improvement. This addition helped increase their customer base and repeat business, which shows the value of listening to the voice of the customer.

1:Voice of the Customer: Definition, Benefits and How-To Guide | Indeed.com2:What is the Voice of the Customer (VoC)? - Qualtrics

According to the ASCM CTSC Exam Content Manual, one of the first steps in developing a transformational supply chain strategy is to “determine the current and future needs and expectations of the customers, and align the supply chain strategy with the business strategy and customer value proposition” (p. 16). This helps to ensure that the supply chain transformation is customer-centric and focused on delivering value to the end users. The other options are also important, but they should be done after the initial determination of the customers’ needs.

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, external benchmarking against similar supply chains is recommended in the development of a balanced scorecard because it helps the company to understand how it is strategically aligning its supply chain performance and how its performance compares to thebest-in-class or industry standards1.External benchmarking can also help the company to identify the gaps and opportunities for improvement in its supply chain processes, practices, and capabilities1.A balanced scorecard is a performance measurement tool that assesses an organization and its supply chain from four different perspectives: customer, internal process, learning and growth, and financial1.By using external benchmarking, the company can set realistic and relevant targets and goals for each perspective, and monitor and evaluate its progress and performance1.

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According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, one of the most important steps that leadership can take in developing talent for a digital supply chain transformation process is to invest in building data-centric supply chain communities with relevant skills1.Data-centric supply chain communities are groups of people who share a common interest and passion for using data and analytics to improve supply chain performance1.They can foster a culture of learning, innovation, and collaboration among supply chain professionals, and help them acquire and apply the necessary digital skills, such as data science, data engineering, data visualization, and data storytelling1.By investing in building data-centric supply chain communities, leadership can create a talent pipeline for the digital supply chain transformation, and empower the employees to leverage data and technology to achieve the strategic objectives1.

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Porter’s Five Forces is a model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry’s weaknesses and strengths1.The five forces are: competition in the industry, potential of new entrants, power of suppliers, power of customers, and threat of substitute products1. The company has used this tool to assess the attractiveness and profitability of the airline industry by evaluating the intensity of each force.

According to the ASCM CTSC Exam Content Manual, a supply chain strategy that is more focused on creating value is based on the principle of customer-centricity1.This means that the supply chain strategy should align with the value proposition and expectations of the target customers, and deliver superior value to them in terms of quality, cost, service, and innovation12.Therefore, the most important step for this company to take is to design its internal operations to meet customers’ requirements, such as product specifications, delivery time, customization options, and after-sales support13.This will help the company to differentiate itself from competitors, increase customer satisfaction and loyalty, and enhance its profitability and market share12.

1: ASCM CTSC Exam Content Manual, page 12.2:A new era for procurement: Value creation across the supply chain | McKinsey3:Strategic Value Creation in a Supply Chain - IGI Global

According to the CTSC exam content manual1, implementing electronic data interchange (EDI) can provide benefit in establishing business relationships with suppliers by building trust, which is one of the key elements of supplier relationship management. EDI can help to build trust by enabling faster, more accurate, and more secure data exchange, reducing errors and disputes, improving communication and collaboration, and enhancing customer satisfaction.

According to the theory of constraints (TOC), a service company that is experiencing long wait times for customer service should identify and address the bottleneck in the customer service process1.A bottleneck is the activity or resource that limits the throughput or output of the entire system2.TOC provides a five-step process for improving any system by focusing on the bottleneck3. The steps are:

• Identify the system’s constraint: find the activity or resource that has the least capacity or the longest cycle time in the customer service process.
• Exploit the system’s constraint: make the most of the available capacity or time of the bottleneck, such as reducing idle time, errors, or rework.
• Subordinate everything else to the system’s constraint: align the other activities or resources in the customer service process to the pace and priority of the bottleneck, such as balancing the workload, synchronizing the flow, or eliminating waste.
• Elevate the system’s constraint: increase the capacity or reduce the cycle time of the bottleneck, such as adding more staff, equipment, or technology, or redesigning the process.
• Repeat the process: monitor the performance of the customer service process and identify and address the next constraint.

The other options are not the best steps to address the issue of long wait times for customer service, according to TOC.Increasing the number of staff members available before the bottleneck will not solve the problem, as it will only create more work-in-process inventory and increase the operational expense4.Implementing a more efficient customer service system may or may not help, depending on whether it addresses the root cause of the bottleneck or not5. Increasing the resources available to the customer service department may also be ineffective or inefficient, as it may not target the specific bottleneck or may create excess capacity or waste.

According to the CTSC Exam Content Manual1, corporate strategy is the highest level of strategy in the strategy hierarchy. It involves defining the overall purpose, scope, and direction of the organization, as well as allocating resources and setting performancegoals for the entire organization. Corporate strategy also harmonizes plans to improve competencies of an organization as a whole, such as innovation, sustainability, digital transformation, and social responsibility. Option A, business strategy, is the level of strategy that focuses on how a business unit or division competes in a specific market or industry. Option C, functional area strategy, is the level of strategy that focuses on how a functional department or team supports the business strategy and the corporate strategy. Option D, operating strategy, is the level of strategy that focuses on how the daily operations and processes are executed and optimized.

According to the CTSC Exam Content Manual, a good supply chain strategy should be tailored to the right level of complexity, which means balancing the trade-offs between efficiency and responsiveness, standardization and customization, centralization and decentralization, and integration and differentiation1.A good supply chain strategy should also align with the business strategy, customer expectations, and market conditions1. The other options are not necessarily wrong, but they are not the main criteria for a good supply chain strategy.

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, effective collaborative relationships with supply chain partners are more likely to be forged when a team buys into three areas: accountability, business alignment, and vision statement1.Accountability means that each partner is responsible for delivering on their commitments and adhering to the agreed-upon rules and standards1.Business alignment means that each partner aligns their objectives, strategies, and processes with the overall goals of the supply chain network1.Vision statement means that each partner shares a common vision of the desired future state of the supply chain and how to achieve it1.

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the perfect order fulfillment is a percentage that measures how many orders meet all the criteria for a perfect order, such as delivery location, product condition, documentation, etc. The formula for calculating the perfect order fulfillment is to multiply the individual performance metrics for each criterion and then multiply by 100. However, the question asks for the formula to calculate the perfect order rate, which is a slightly different metric that measures how many order lines (or items) meet all the criteria for a perfect order. The formula for calculating the perfect order rate is to divide the total number of perfect order lines by the total number of order lines and then multiply by 100.

According to the CTSC Exam Content Manual1, the Measure phase of the Six Sigma DMAIC methodology involves collecting data on current performance and issues. The Measure phase aims to establish a baseline for the process and quantify the gap between the current state and the desired state. The Measure phase also involves validating the measurement system, defining the process metrics, and calculating the process capability and sigma level. Option A, Control, is the phase that involves implementing and sustaining the improvements. Option B, Improve, is the phase that involves identifying and testing the solutions. Option C, Analyze, is the phase that involves analyzing the data and identifying the root causes.

According to the ASCM SCOR Digital Standard, the SCOR model uses the term optimized to indicate the highest level of performance for a given metric. Optimized metrics are those that are prioritized by the organization and have a target performance level that is based on the best-in-class benchmark or the desired competitive advantage. The SCOR model defines six levels of performance for each metric: inferior, poor, nominal, competitive, advantage, and optimized (p.17)1. The other options are not used in the SCOR model to prioritize metrics and estimate target performance level.

According to the CTSC Exam Content Manual, one of the steps in the digital supply chain transformation process is to identify and prioritize the strategic assets of the organization, which are the resources and capabilities that provide a competitive advantage and enable value creation1.One of the strategic assets that leadership should have its team of stakeholders prioritize is the internal and external data sources making up the supply chain, as data is the foundation of digital transformation and the key to unlocking insights, innovation, and efficiency2.Data sources can include operational data, customer data, supplier data, market data, and environmental data, among others2. The other options are not necessarily strategic assets, as they may not provide a distinctive edge or value proposition for the organization.Hardware and machinery, truck fleet and warehouses, and free cash flow are examples of tangible assets that can be easily replicated or substituted by competitors3.

According to the CTSC Ex-am Content Manual1,the Swiss cheese model is one of the accident models that explains how accidents happen in complex systems. The model compares the system to a stack of slices of Swiss cheese, where each slice represents a layer of defense or protection against hazards. The holes in the cheese represent weaknesses or failures in each layer. Normally, the holes do not align and the system is safe. However, when the holes align, a hazard can penetrate through the layers and cause an accident. The model illustrates how multiple factors and conditions can combine to create a pathway for an accident.

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According to the CTSC Learning System, one of the factors that affects the distribution costs is the cost of implementing the new materials flow network, which includes the costs of designing, building, and operating the network of warehouses, distribution centers, and transportation modes1.The cost of implementing the new materials flow network can be significant and should be included in the calculation of the total cost of ownership (TCO) of the distribution system1.The other factors listed in the question are not directly related to the distribution costs, but rather to the inventory costs, which are a separate component of the TCO1.

According to the ASCM CTSC Exam Content Manual, one of the first steps in initiating a digital supply chain transformation is to “identify the business drivers and opportunities for transformation, and prioritize them based on their potential impact and feasibility” (p. 15). This helps the company’s leadership to align the transformation objectives with the strategic goals of the organization, and to allocate resources accordingly. The other activities mentioned in the options are also important, but they should be done after the initial identification and prioritization of the areas of the business that can benefit the most from the transformation.

According to the CTSC Exam Content Manual, one of the entry criteria that must be met before initiating a supply chain transformation project is an implementation roadmap1.An implementation roadmap is a document that outlines the scope, objectives, activities, deliverables, milestones, resources, and risks of the transformation project1.An implementation roadmap helps to guide and monitor the execution of the project, as well as to communicate and align the expectations and responsibilities of the stakeholders1. The other options are not entry criteria that must be met before initiating a supply chain transformation project, as they are more related to the outcomes or the actions of the project.Network configuration modifications, information technology (IT) adjustment, and skills and resources changes are examples of the changes that may result from the supply chain transformation project, but they are not prerequisites for starting the project2.

responsive supply-demand matching (RDSM) is the ability to sense demand exceptions, target revenue opportunities and resolve supply challenges through planning of constrained resources and allocation of supply across the network to best meet demand according to the business strategy1.One of the benefits of RDSM is to improve the customer service level by fulfilling the demand on time and in full1.Therefore, one of the supply chain metrics that should be included on the RDSM dashboard is on-time, in-full, which measures the percentage of orders that are delivered to the customers within the agreed time window and with the correct quantity and quality2.

The other options are not suitable for the RDSM dashboard, as they are not directly related to the RDSM objectives or outcomes.Inventory quality ratio is a metric that measures the percentage of inventory that is in good condition and can be sold to the customers3.This metric is more relevant for the inventory optimization phase of the digital transformation, which aims to reduce the inventory costs and risks4.Customer backorder rate is a metric that measures the percentage of orders that are not fulfilled on time due to the lack of inventory5.This metric is more relevant for the demand sensingand shaping phase of the digital transformation, which aims to improve the demand forecasting accuracy and responsiveness6. Sell-through rate is a metric that measures the percentage of inventory that is sold within a given period of time. This metric is more relevant for the omni-channel fulfillment phase of the digital transformation, which aims to optimize the order fulfillment across different channels and locations.

According to the ASCM CTSC Exam Content Manual, one of the key steps in forming teams for a digital supply chain transformation is to “create cross-functional teams that include members from different departments and levels of the organization, as well as external partners, to foster collaboration and innovation” (p. 16). This helps to ensure that the teams have diverse perspectives, skills, and knowledge to address the challenges and opportunities of the digital transformation.

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, the greater value chain is the network of organizations that collaborate to create and deliver value to the end customer1.It includes not only the supply chain, but also other stakeholders such as distributors, retailers, service providers, and even competitors1.To extend the supply chain initiative to the greater value chain, the core team should first define the scope of the greater value chain, which means identifying the key players, processes, and flows that are involved in creating and delivering value1.This will help the core team to understand the current state of the greater value chain, the opportunities and challenges for improvement, and the potential impact of the initiative on the overall value creation1.

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According to the CTSC Exam Content Manual1, Kanban is a lean manufacturing tool that uses visual signals to indicate the need for a component or material in a production process. Kanban is linked to consumer demand, as it triggers the replenishment of inventory only when there is actual consumption. Kanban helps to reduce waste and labor by minimizing overproduction, inventory, and waiting time. Option B, JIT purchasing, is a related concept that involves buying materials or components just before they are needed in the production process, but it does not necessarily use visual signals. Option C, Kaizen, is a lean manufacturing tool that involves continuous improvement of processes and activities, but it is not specific to reducing waste and labor in the manufacturing process. Option D, TOC, is a management philosophy that focuses on identifying and eliminating the constraints or bottlenecks that limit the performance of a system, but it does not use visual signals to indicate the need for a component.

According to the ASCM CTSC Exam Content Manual, a data steward is a key role within a digital supply chain transformation team that is responsible for the quality and accuracy of the data feeds.A data steward is defined as "an oversight or data governance role within an organization, and is responsible for ensuring the quality and fitness for purpose of the organization’s data assets, including the metadata for those data assets"1.A data steward may share some responsibilities with a data custodian, such as the awareness, accessibility, release, appropriate use, security and management of data1. A data steward would also participate in the development and implementation of data assets.A data steward may seek to improve the quality and fitness for purpose of other data assets their organization depends upon but is not responsible for1.Data stewards have a specialist role that utilizes an organization’s data governance processes, policies, guidelines and responsibilities for administering an organizations’ entire data in compliance with policy and/or regulatory obligations1.The overall objective of a data steward is the data quality of the data assets, datasets, data records and data elements1.This includes documenting metainformation for the data, such as definitions, related rules/governance, physical manifestation, and related data models (most of these properties being specific to an attribute/concept relationship), identifying owners/custodian’s various responsibilities, relations insight [definition needed] pertaining to attribute quality, aiding with project requirement data facilitation and documentation of capture rules1.Data stewards begin the stewarding process with the identification of the data assets and elements which they will steward, with the ultimate result being standards, controls and data entry1.The steward works closely with business glossary standards analysts (for standards), with data architect / modelers (for standards), with DQ analysts (for controls) and with operations team members (good-quality data going in per business rules) while entering data1.Data stewardship roles are common when organizations attempt to exchange data precisely and consistently between computer systems and to reuse data-related resources1. Master data management often [quantify] makes references to the need for data stewardship for its implementation to succeed.Data stewardship must have precise purpose, fit for purpose or fitness1.

1:Data steward - Wikipedia

a differentiation strategy is the approach businesses use to attract and keep customers by giving them a unique product or service123.The main goal of this strategy is to attain a competitive advantage by offering something that is different and distinct from the competitors in the same market123.A differentiation strategy can help a company to reduce price competition, increase customer loyalty, and improve profit margins1.Some examples of companies that use a differentiation strategy are Apple, Starbucks, and Tesla23. Therefore, a differentiation strategy would help the company to stand out in the market by offering unique products or services.

According to the ASCM CTSC Exam Content Manual, building resilience is one of the organizational competencies for risk management and disruption response.It is defined as "the ability to recover quickly from difficulties and adapt to changing conditions"1. Building resilience can help a company with a global presence to cope with the uncertainties and complexities of operating in emerging markets, where risks and disruptions may be more frequent and severe.Some of the elements of building resilience include developing a risk-aware culture, implementing agile processes, fostering collaboration and innovation, and enhancing learning and feedback loops23.

1: ASCM CTSC Exam Content Manual, page 7.2:From risk management to strategic resilience | McKinsey3:Risk Management Magazine - Dealing with Disruption

According to the CTSC Enterprise and Supply Chain Management (ESCM) manual, a staple yourself interview is a technique for performing a review of a SCOR level 3 process from beginning to end1.It involves following the process as if you were the product or service being delivered, and asking questions such as: Who is involved in this process? What are they doing? Why are they doing it? How are they doing it? How long does it take? How much does it cost? What are the inputs and outputs of each activity? What are the risks and opportunities for improvement?1This technique helps to identify the gaps, inefficiencies, and best practices in the process, and to generate insights and recommendations for improvement1.

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According to the ASCM CTSC Exam Content Manual, when designing a new demand-driven supply chain, technologies should be evaluated after the supply chain is designed.This is because the supply chain design should be based on the customer needs, the business strategy, and the supply chain capabilities, not on the available technologies1.The technologies should be selected to support and enable the supply chain processes, not to dictate or constrain them1.Evaluating technologies after the supply chain is designed can help to avoid unnecessary costs, complexity, and risks, and to ensure alignment and integration across the supply chain network1.

1: ASCM CTSC Exam Content Manual, page 8.

According to the ASCM CTSC Exam Content Manual, a champion is generally defined as a sponsor of an improvement effort.A champion is "a senior leader who provides direction and support for a strategic initiative and ensures alignment with the organization’s vision, mission, and goals"1.A champion is also responsible for securing resources, removing barriers, and empowering the improvement team to achieve the desired outcomes1.A champion acts as a role model, a mentor, and a spokesperson for the improvement effort and helps to communicate its value and benefits to the stakeholders1.

1: ASCM CTSC Exam Content Manual, page 9.

ETO is an operating model that involves designing and producing customized products or services based on the specific requirements of each customer1.ETO is suitable for customized offerings with infrequent demand, as it allows the organization to create unique and differentiated value propositions for each customer, and to avoid holdingexcess inventory of products that may not sell well2.ETO also enables the organization to leverage its engineering and innovation capabilities, and to charge a premium price for its customized solutions3.

The other options are not suitable for customized offerings with infrequent demand, as they involve standardizing some or all of the production process, which reduces the degree of customization and differentiation.MTS is an operating model that involves producing products in advance based on forecasted demand, and then selling them from stock1.MTO is an operating model that involves producing products only after receiving a customer order, but using standardized components and processes1.CTO is an operating model that involves producing products based on a customer order, but using a predefined set of options and configurations1.

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According to the CTSC Exam Content Manual1,SCOR metrics for the Sustainability performance attribute are closely aligned with the Global Reporting Initiative (GRI) Standards, which are the most widely used standards for corporate sustainability reporting. The GRI Standards provide a framework and guidance for disclosing information on the economic, environmental, and social impacts of an organization’s activities, products, and services. The SCOR metrics for Sustainability include indicators such as greenhouse gas emissions, energy consumption, water consumption, waste generation, and social responsibility.

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According to the CTSC exam content manual1, the most important driver to determine a metrics tracking cycle is the change frequency, which is the rate at which the metric value changes over time. The change frequency affects how often the metric should be measured and reported, as well as the level of detail and aggregation required. A metric with a high change frequency should be tracked more frequently and with more granularity than a metric with a low change frequency.

According to the ASCM CTSC Exam Content Manual, the SCOR framework consists of five phases: analyze, configure, optimize, implement, and evaluate.In the analyze phase, the key outputs are an as-is Level 3 process diagram, a scorecard, and competitive requirements1.The as-is Level 3 process diagram shows the current state of the supply chain processes in detail, using the SCOR standard definitions and symbols2.The scorecard measures the performance of the supply chain processes against the SCOR metrics and benchmarks3.The competitive requirements define the target performance levels for the supply chain processes based on the customer and market expectations4.

1: ASCM CTSC Exam Content Manual, page 13.2:SCOR Quick Reference Guide - APICS3:SCOR Digital Standard | ASCM4:Unlock Supply Chain Mgmt: Introducing SCOR Model | IIENSTITU

According to the ASCM, a comprehensive supply chain transformation action plan is a roadmap that guides the organization to align its supply chain strategy with its business strategy, and to achieve higher performance, efficiency, and sustainability in its supply chain operations1.The main outcome of such a plan is to enable the organization to deliver better value to its customers and stakeholders, and to improve its top and bottom line results1. Some of the steps involved in creating a supply chain transformation action plan are:

• Assessing the current state of the supply chain and identifying the gaps and opportunities for improvement
• Defining the future state of the supply chain and setting the vision, goals, and objectives
• Developing the business case for change and securing the buy-in and support from the senior management and cross-functional teams
• Selecting the best practices, methodologies, and technologies to implement the change and optimize the supply chain processes
• Executing the change and monitoring the progress and results1

The other options are not the main focus of a comprehensive supply chain transformation action plan, but rather some of the aspects or outcomes of the plan.For example, traditional metrics around supply chain performance are important to measure the current state and the improvement potential, but they may not capture the strategic value and impact of the supply chain transformation2.Perfect order targets and inventory levels are some of the operational goals that the plan may aim to achieve, but they are not the ultimate outcome of the plan3.Best practices around Plan, Source, Transform, and Fulfill processes are some of the tools and methods that the plan may use to optimize the supply chain operations, but they are not the purpose of the plan4. Therefore, the most accurate answer is A.