CSCP practice questions 311–320

1. Question 311 · 505 in bank

   Which of the following situations is an example of cross-selling?

   • AA computer application inducing buyers to purchase more expensive components
   • BA credit card company offering current customers an account with insurance against fraud
   • CAn online bookseller showing customers a list of books bought by customers with similar purchasing histories
   • DCall center operators promoting a slightly more expensive service program

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   Answer: C

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2. Question 312 · 505 in bank

   Which of the following conditions is most likely to be a consequence of running lean production?

   • AIncreased risk from a disruption
   • BIncreased demand fluctuations
   • CDecreased capacity utilization
   • DDecreased supply chain efficiency

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   Answer: A

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3. Question 313 · 505 in bank

   A manufacturer is in the process of segmenting customer markets for its products. What is the most appropriate customer factor to use in identifying the segments?

   • AProfit margin from purchases
   • BDistance from the nearest plant
   • CCustomer brand image
   • DCost of goods sold (COGS)

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   Answer: A

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4. Question 314 · 505 in bank

   To reduce costs and increase control of its primary raw material, a manufacturer of corrugated and cardboard materials and cartons purchases a paper mill. This is an example of:

   • Avertical integration in the supply chain.
   • Bhorizontal integration in the supply chain.
   • Csupplier relationship management (SRM).
   • Dexpansion in the scale of operations.

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   Answer: D

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5. Question 315 · 505 in bank

   Which of the following statements about the International Organization for Standardization (ISO) is true?

   • AISO 9000 series deals with guidelines and procedures for managing a firm's environmental impact.
   • BISO 9000 and 14000 series are broad standards that are industry-specific and legally binding.
   • CMost major countries today have accepted the ISO standards because of cost saving guidance.
   • DISO 9000 or 14000 certification indicates a company conforms to the standard.

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   Answer: D

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6. Question 316 · 505 in bank

   Forecasting methods can be grouped into which of the following categories?

   • ASeasonal, trend, and promotional events
   • BMoving average, exponential smoothing, and Holt-Winters
   • CQualitative, extrinsic, and intrinsic
   • DAnnual, monthly, and dally requirements

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   Answer: C

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7. Question 317 · 505 in bank

   Which of the following tactics effectively reduces the bullwhip effect?

   • AReducing lead times among trading partners
   • BBuying large quantities for a substantial discount
   • CIncreasing safety stock levels
   • DIncreasing the level of advertising

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   Answer: A

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8. Question 318 · 505 in bank

   Which of the following risks is most likely to occur when implementing a global sourcing strategy?

   • AInternal operating costs will increase due to the additional time to process purchase orders across time zones and cultural barriers.
   • BAchieving economies of scale will be difficult if global shipments are not consolidated at shipping origin.
   • CInventory carrying costs will increase along with freight costs due to increasing delivery transit times.
   • DCustomers could purchase their products and materials elsewhere due to the fact that core operations were outsourced abroad.

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   Answer: C

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9. Question 319 · 505 in bank

   Which of the following actions hedges against commodity price fluctuations in a supply chain?

   • APurchase always from the lowest bidder.
   • BIncrease safety stock levels.
   • CEstablish an online auction site.
   • DPurchase future options.

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   Answer: D

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10. Question 320 · 505 in bank

    The benefits of supplier relationship management (SRM) can be attributed to:

    • Ahigher levels of automated transactional processing for lower cost and fewer errors.
    • Bimprovement of the interactions and business processes between buyers and suppliers.
    • Cidentification of key suppliers for greater attention from supply chain managers.
    • Dobservation of the supply base to ensure that suppliers are providing high levels of service.

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    Answer: B

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CSCP practice, question 311. 505 questions available.