CSCP Online Practice Questions and Answers

All of the following describe indirect materials EXCEPT:

A. referred to as MRO

B. part of finished product

C. not part of the manufacturing process

D. essential for the business to operate

What is the primary purpose of a market-responsive supply chain?

A. supply predictable demand efficiently at the lowest possible cost

B. shorten lead times as long as it doesn't increase cost

C. respond quickly to unpredictable demand

D. maintain high average utilization rate

Successful implementation of a new supply chain process first requires:

A. manipulation of data

B. a substantial investment in information technology

C. a well-defined production planning process

D. open communication with stakeholders

Implementing a balanced scorecard for a supply chain typically would include which of the following actions?

A. Responding to resistance

B. Calculating partner performance

C. Communicating the strategic purpose to partner organizations

D. Aligning partner performance based on channel-master requirements

A manufacturing company which produces in anticipation of future orders and sells its products directly to consumers experiences an unexpected large reduction in consumer demand. This is most likely to increase which type of inventory?

A. Work-in-process (WIP) inventory

B. Finished goods inventory

C. Raw material inventory

D. In-transit inventory

A firm is expanding into a new market with import/export tariffs and needs a warehouse to accept, store, and ship its general merchandise product.

What type of public warehouse in the new market would best meet the firm's needs?

A. Bonded

B. Subcontracted

C. Specialty

D. Network aligned

Tangible benefits of investing in information technology (IT) include:

A. reducing transaction costs.

B. improved reliability.

C. amortization of capital investment.

D. easier financial reporting.

In order to be able to fulfill increasing market demand, a company is considering adding warehouses rather than increasing the capacity of existing warehouses. If the warehouses are added, the network costs most likely will:

A. be unchanged.

B. increase.

C. decrease.

D. increase initially and then decrease.

A group of trading partners that uses the triple bottom line (TBL) to measure its performance is focusing on:

A. green reverse logistics.

B. supply chain integration.

C. market share and profitability.

D. sustainable business practices.

Moving from engineer-to-order (ETO) to assembled-to-order (ATO) usually increases which of the following costs per unit?

A. Transportation

B. Inventory

C. Manufacturing

D. Procurement