CSCP practice questions 11–20

1. Question 11 · 505 in bank

   Supply chains delivering products or services are most able to respond quickly to changing market requirements when:

   • Aproducts have been standardized.
   • Bproducts have a modular design.
   • Cproduction processes have been standardized.
   • Dproduction processes have been simplified.

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   Answer: B

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2. Question 12 · 505 in bank

   Risk pooling enables a lower total inventory level without affecting service levels based on which of the following assumptions?

   • AInventory turnover ratio can be reduced.
   • BAggregate demand is more accurate than disaggregate demand.
   • CThe planning time fence can be adjusted as needed.
   • DThe supplier shares some risk for holding inventory.

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   Answer: B

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3. Question 13 · 505 in bank

   After identifying the potential causes for delays in communicating demand information up the supply chain, the trading partners should take which of the following actions?

   • AImplement a higher-speed data communications network.
   • BChange procedures so data is communicated more frequently.
   • CIdentify the root causes for the delays.
   • DMap and analyze the value stream.

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   Answer: C

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4. Question 14 · 505 in bank

   Which of the following situations is an example of postponement?

   • AShipments are broken down into small groups for reshipment.
   • BShipments are consolidated immediately for reshipment.
   • CProduction begins after a customer order is received.
   • DPartially assembled goods are assembled at a later stage.

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   Answer: D

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5. Question 15 · 505 in bank

   Which of the following situations is an example of inventory being held as a way to balance supply and demand?

   • AA manufacturer holds inventory of key components to maintain a level production schedule.
   • BA manufacturer of seasonal products builds finished-goods inventory before the peak selling period.
   • CA distributor maintains safety stock of slow-moving items at a central distribution center.
   • DA retailer stocks a variety of sizes and colors of a fast-selling item to avoid losing sales.

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   Answer: A

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6. Question 16 · 505 in bank

   A company's annual cost of goods sold is $350 million, and inventory carrying cost is 18%. The company averages four inventory turns. The cost savings resulting from increasing inventory turns from four to six would be:

   • A$29,000,000.
   • B$15,750,000.
   • C$10,500,000.
   • D$ 5,250,000.

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   Answer: D

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7. Question 17 · 505 in bank

   Using an independent service provider for logistics would be most appropriate in which of the following situations?

   • AA shoe company that wants to penetrate a foreign market
   • BA business that owns plants and warehouses globally
   • CA financial services company that wants to expand its services
   • DA cable television company that wants to add services

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   Answer: A

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8. Question 18 · 505 in bank

   The most likely benefit of implementing a collaborative transportation management system (TMS) is:

   • Alower distribution center (DC) operating costs.
   • Bfewer transportation planners.
   • Cless variability in picking and packing time.
   • Dless variability in transportation costs.

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   Answer: D

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9. Question 19 · 505 in bank

   Which of the following attributes typically makes reverse logistics processes more complicated than outbound logistics processes?

   • ALead times for shipments are more variable.
   • BIndividual packages and cartons are less uniform.
   • CThere are more regulations mandated by local governments.
   • DThere is more competition for scarce transportation lanes.

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   Answer: B

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10. Question 20 · 505 in bank

    A firm has identified groups of customers based on specific characteristics the customers desire from products and services the firm can provide. Characteristics include lead times, pricing tiers, and service levels. The firm is engaged in which of the following activities?

    • ACustomer differentiation
    • BOrder winner segregation
    • CMarket segmentation
    • DChannel definition

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    Answer: C

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CSCP practice, question 11. 505 questions available.