CSCP Online Practice Questions and Answers

A company originally based in Germany sets up companies in India, China, Vietnam, Mexico, and Brazil. It sources most of the raw materials locally and employs the local workforce to manage and produce finished goods. Most of the goods produced are consumed in the same country. The company can be classified as what type of enterprise?

A. Globally integrated

B. Domestic

C. Multinational

D. Virtual

All of the following are effects of a pull-based supply chain EXCEPT:

A. decreased inventory at retailers

B. larger and more variably sized production batches

C. decreased lead times

D. decreased variability

Which of the following outcomes occurs when direct shipping is used instead of a distribution network?

A. Outbound transportation cost is reduced.

B. Inventory velocity is reduced.

C. Order-fill rates are reduced.

D. Inventory obsolescence is reduced.

A juice manufacturer wants to determine the time required to convert a dollar spent on materials into a dollar received in sales. Which of the following metrics would be most appropriate to make this determination?

A. Activity-based costing

B. Inventory carrying cost

C. Cash-to-cash cycle time

D. Average financial turnover

Mass customization results in savings due to economies of scale and which of the following additional benefits?

A. An opportunity to invest in equipment and training

B. A greater appeal of differentiated products to different markets

C. Facilitation of a pull system

D. Elimination of friction among distributors

A company that sells 60 units of product in a given year and has an average quantity on hand of 10 units. There are 360 selling days and 261 production days in the year. The company has on hand how many days of product inventory?

A. 0.16

B. 0.23

C. 43

D. 60

A company that has selected the hybrid production method has multiple alternatives for the timing of activating and deactivating capacity. The inventory carrying costs and which of the following categories of costs would typically be relevant in the analysis of the alternatives?

A. Strategic sourcing

B. Capital tooling

C. New employee training

D. Fixed plant

A company that is effectively managing its cash will have which of the following conditions?

A. Low accounts receivable, low inventory, high accounts payable

B. High accounts receivable, low inventory, high accounts payable

C. Low accounts receivable, high inventory, low accounts payable

D. High accounts receivable, high inventory, low accounts payable

The primary objective of aggregate planning is to:

A. improve forecast accuracy.

B. reduce cash-to-cash cycle time.

C. develop a service-level target.

D. achieve cyclical employment levels.

Which of the following factors should be considered during the implementation phase of continuous improvement?

A. Learning curve

B. Root cause analysis

C. Maintenance

D. Bottlenecks